Arq Reports Third Quarter 2024 Results
Arq (NASDAQ: ARQ) reported strong Q3 2024 results with revenue of $34.8 million, up 17% year-over-year, driven by higher average selling prices and improved product mix. The company achieved a gross margin of 38.6%, an 800 basis point improvement from the prior year. Net income reached $1.6 million, a significant improvement from a $2.2 million loss in Q3 2023. The company raised approximately $27 million in equity during September 2024, bringing total year-to-date equity raised to $42 million. The Red River GAC facility remains on track for first deliveries in Q1 2025, with potential to increase nameplate capacity by 10-20% without additional capital expenditure.
Arq (NASDAQ: ARQ) ha riportato ottimi risultati per il terzo trimestre del 2024, con un fatturato di $34,8 milioni, in aumento del 17% rispetto all'anno precedente, grazie a prezzi medi di vendita più elevati e un miglior mix di prodotti. L'azienda ha raggiunto un margine lordo del 38,6%, con un miglioramento di 800 punti base rispetto all'anno precedente. L'utile netto ha raggiunto $1,6 milioni, un miglioramento significativo rispetto a una perdita di $2,2 milioni nel terzo trimestre del 2023. L'azienda ha raccolto circa $27 milioni in capitale azionario durante settembre 2024, portando il totale del capitale raccolto dall'inizio dell'anno a $42 milioni. L'impianto Red River GAC è in linea con il programma per le prime consegne nel primo trimestre del 2025, con la possibilità di aumentare la capacità nominale del 10-20% senza ulteriori spese in conto capitale.
Arq (NASDAQ: ARQ) reportó resultados sólidos en el tercer trimestre de 2024, con ingresos de $34.8 millones, un aumento del 17% en comparación con el año anterior, impulsado por precios de venta promedio más altos y una mejora en la mezcla de productos. La compañía logró un margen bruto del 38.6%, una mejora de 800 puntos básicos respecto al año anterior. El ingreso neto alcanzó $1.6 millones, una mejora significativa respecto a la pérdida de $2.2 millones en el tercer trimestre de 2023. La empresa recaudó aproximadamente $27 millones en capital durante septiembre de 2024, llevando el total de capital recaudado hasta la fecha a $42 millones. La instalación Red River GAC está programada para las primeras entregas en el primer trimestre de 2025, con potencial para aumentar la capacidad nominal entre un 10-20% sin gastos de capital adicionales.
Arq (NASDAQ: ARQ)는 2024년 3분기 강력한 실적을 발표했습니다. 매출은 $34.8백만으로 전년 대비 17% 증가했으며, 평균 판매 가격 상승과 개선된 제품 믹스에 힘입었습니다. 회사는 총 마진 38.6%을 기록했으며, 이는 전년 대비 800베이시스 포인트 향상된 수치입니다. 순이익은 $1.6백만으로, 2023년 3분기 $2.2백만의 손실에서 큰 개선을 보였습니다. 회사는 2024년 9월에 약 $27백만의 자본을 조달하였고, 연초부터 총 모집한 자본은 $42백만에 이릅니다. Red River GAC 시설은 2025년 1분기에 첫 배송을 예정하고 있으며, 추가 자본 지출 없이도 명목 용량을 10-20% 증가시킬 가능성이 있습니다.
Arq (NASDAQ: ARQ) a annoncé des résultats solides pour le troisième trimestre 2024, avec un chiffre d'affaires de $34,8 millions, en hausse de 17% par rapport à l'année précédente, grâce à des prix moyens de vente plus élevés et un meilleur mélange de produits. L'entreprise a atteint une marge brute de 38,6%, soit une amélioration de 800 points de base par rapport à l'année précédente. Le revenu net s'est élevé à $1,6 millions, une amélioration significative par rapport à une perte de $2,2 millions au troisième trimestre 2023. L'entreprise a levé environ $27 millions en capital en septembre 2024, portant le total des capitaux levés depuis le début de l'année à $42 millions. L'installation Red River GAC est sur la bonne voie pour les premières livraisons au premier trimestre 2025, avec un potentiel d'augmentation de la capacité nominale de 10 à 20% sans dépenses d'investissement supplémentaires.
Arq (NASDAQ: ARQ) hat im dritten Quartal 2024 starke Ergebnisse berichtet, mit einem Umsatz von $34,8 Millionen, was einem Anstieg von 17% im Jahresvergleich entspricht. Dies wurde durch höhere Durchschnittsverkaufspreise und ein verbessertes Produktmix angetrieben. Das Unternehmen erzielte eine Bruttomarge von 38,6%, eine Verbesserung um 800 Basispunkte im Vergleich zum Vorjahr. Der Nettogewinn erreichte $1,6 Millionen, eine signifikante Verbesserung von einem Verlust von $2,2 Millionen im dritten Quartal 2023. Das Unternehmen hat im September 2024 etwa $27 Millionen an Eigenkapital aufgenommen, wodurch das insgesamt bis dato aufgenommene Eigenkapital auf $42 Millionen ansteigt. Die Red River GAC-Anlage liegt im Zeitplan für die ersten Lieferungen im ersten Quartal 2025, mit der Möglichkeit, die Nennkapazität ohne zusätzliche Investitionsausgaben um 10-20% zu erhöhen.
- Revenue increased 17% YoY to $34.8 million
- Gross margin improved by 800 basis points to 38.6%
- Net income of $1.6 million vs prior year loss of $2.2 million
- Adjusted EBITDA increased to $5.1 million from $0.9 million YoY
- Average selling prices up 15% YoY for 6th consecutive quarter
- Successfully raised $27 million in equity funding
- Capital expenditure requirements of $20-25 million remaining for Q4 2024
- Research and development costs increased to $0.8 million from $0.6 million YoY
- Total debt of $20.0 million as of September 30, 2024
Insights
Record PAC revenue and profitability driven by ongoing and sustainable improvements
Strategic GAC project at Red River remains on target for first deliveries in Q1 2025 with modular commissioning already underway; capex, timing and contracting advancing in-line with expectations
Expect to ramp Red River GAC run-rate to 25 million nameplate by end of Q1 2025; identified potential to increase GAC nameplate capacity by 10
GREENWOOD VILLAGE, Colo., Nov. 07, 2024 (GLOBE NEWSWIRE) -- Arq, Inc. (NASDAQ: ARQ) (the "Company" or "Arq"), a producer of activated carbon and other environmentally efficient carbon products for use in purification and sustainable materials, today announced its financial and operating results for the quarter ended September 30, 2024.
Financial Highlights
- Generated revenue of
$34.8 million in Q3 2024, up17% over the prior year period, driven largely by higher ASP, positive changes in product mix - Improved gross margin to
38.6% in Q3 2024, an improvement of approximately 800 basis points vs.30.6% in the prior year period, driven by higher revenue, continued focus on profitability over volume, and ongoing operational cost management - Increased ASP in Q3 2024 by approximately
15% over the prior year period, reflecting the 6th consecutive quarter of double-digit YoY percentage growth in ASP - Reported Net income of
$1.6 million in Q3 2024, reflecting a significant improvement over the prior year period Net loss of$2.2 million - Adjusted EBITDA of
$5.1 million in Q3 2024 vs. Adjusted EBITDA of$0.9 million in the prior year period(1) - Raised approximately
$27 million of net equity proceeds during September 2024 in an oversubscribed confidentially marketed public offering met by strong institutional demand; increased YTD 2024 net equity raised to approximately$42 million - Exited Q3 2024 with cash and restricted cash of
$57.4 million - Capital expenditure forecasts for full year 2024 remain at
$60 -$70 million , with$20 -$25 million remaining to be spent in Q4 2024
(1) Adjusted EBITDA is a non-GAAP financial measure. Please refer to the paragraph titled “Non-GAAP Measures” for the definitions of non-GAAP financial measures and reconciliations to GAAP measures included in this press release.
Recent Business Highlights
- Modular commissioning at Red River facility underway; on target to achieve first deliveries in Q1 2025 following decision to take general contracting activities in house
- Continued strong granular activated carbon (“GAC”) contracting activity, reaching approximately
60% of our 25 million pound per year nameplate capacity - In negotiation for the remaining nameplate capacity at Red River; expect to be fully contracted by the time nameplate run-rate capacity is achieved in Q1 2025
- Identified potential to increase Red River’s 25 million pound per year nameplate capacity by 10
-20% with no anticipated additional capex required; upsized production run-rate expected to be achievable by Q3 2025
“Our third-quarter results show the continued solid progress we are making across our PAC business,” said Bob Rasmus, CEO of Arq. “We posted record PAC revenues and Adjusted EBITDA yet again, surpassing forecasts and reflecting the improved strength and stability of our core operations. This performance was driven by higher average selling prices, lower costs, and increased consumables volumes year on year, which all contributed to strong gross margins and reflect the diligent and successful business improvement initiatives we have been focused on over the past 12 months. While these results and trends are great, we remain focused on further enhancements to our business and results.”
“During the third quarter, we made the strategic decision to raise equity to fund our GAC expansion, rather than take on additional debt. The net result, in addition to greater balance sheet flexibility, was accretive to EPS versus issuing debt. The raise was met with strong investor interest, resulting in an oversubscribed offering. This strengthened our financial position, enabling us to pursue further growth, including a potential second GAC line.”
“2025 is poised to be the most transformational period for Arq yet. Our Red River project is progressing well, with the expansion on budget with most recent guidance, first deliveries on track for Q1 2025, and the pace of contracting in-line with expectations. With modular commissioning underway, we’re already completing critical components of the project, allowing us to manage the process in stages and expect to achieve full run-rate capacity of 25 million pounds by the end of Q1 2025.”
Mr. Rasmus concluded, “Given the efficiency of our build and insights gained during our ongoing construction process, we have identified the potential to increase production levels by 10
Third Quarter 2024 Results
Revenue totaled
Costs of revenue totaled
Gross margin improved to
Selling, general and administrative expenses totaled
Research and development costs totaled
Operating income was
Net income was
Adjusted EBITDA was
See note below regarding the use of the Non-GAAP financial measure Adjusted EBITDA and a reconciliation to the most comparable GAAP financial measure.
Capex and Balance Sheet
Capital expenditures totaled
The Company raised approximately
Cash as of September 30, 2024, including
Total debt, inclusive of financing leases, as of September 30, 2024, totaled
Conference Call and Webcast Information
Arq will host its Q3 2024 earnings conference call on November 7, 2024, at 8:30 a.m. ET. The live webcast can be accessed through the Investor Resources section of Arq’s website at www.arq.com. To participate, interested parties can register at https://www.webcast-eqs.com/arq20241107. Alternatively, participants may join via phone by dialing (800) 715-9871 or (646) 307-1963 and referencing Arq or Conference ID 9011669. An investor presentation will also be available in the Investor Resources section before the call begins.
A replay of the event will be available shortly afterward through the same webcast link. For those who prefer to access the replay via phone, it will be available by dialing (877) 660-6853 or (201) 612-7415 and entering Access ID 13749544. The replay will remain accessible until November 14, 2024.
About Arq
Arq (NASDAQ: ARQ) is a diversified, environmental technology company with products that enable a cleaner and safer planet while actively reducing our environmental impact. As the only vertically integrated producer of activated carbon products in North America, we deliver a reliable domestic supply of innovative, hard-to-source, high-demand products. We apply our extensive expertise to develop groundbreaking solutions to remove harmful chemicals and pollutants from water, land and air. Learn more at: www.arq.com.
Caution on Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a “safe harbor” for such statements in certain circumstances. When used in this press release, the words “can,” “will,” "may," “intends,” “expects,” "continuing," “believes,” similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements. All statements that address activities, events or developments that the Company intends, expects or believes may occur in the future are forward-looking statements. These forward-looking statements include, but are not limited to, statements or expectations regarding: business strategy, our goals for the remainder of fiscal year 2024, expectations about future market size, penetration rates, demand and pricing for our PAC and GAC products and our ability to enter into new markets, the strategic GAC project at our Red River facility, including timing to completion and initial deliveries, contracting progress, expected capital expenditures, expected production capacity, potential future increases in expected production capacity and further facility expansion opportunities including the addition of further production lines, the benefits associated with bringing general contracting functions in-house with respect to our Red River facility, expectations surrounding our ongoing corporate transformation, the estimated costs and timing associated with potential capital improvements at our facilities, financing sources for such projects and potential production outputs thereafter, and expected market supply of GAC products and the cost savings and environmental benefits of our GAC products, and the timing and scope of future regulatory developments and the related impact of such on the demand for our products. These forward-looking statements involve risks and uncertainties. Actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors including, but not limited to, timing and scope of new and pending regulations and any legal challenges to or extensions of compliance dates of them; the U.S. government’s failure to promulgate regulations that benefit our business; changes in laws and regulations, accounting rules, prices, economic conditions and market demand; impact of competition; availability, cost of and demand for alternative energy sources and other technologies; technical, start up and operational difficulties; competition within the industries in which we operate; our inability to commercialize our products on favorable terms; our inability to effectively and efficiently commercialize new products; changes in construction costs or availability of construction materials; our inability to effectively manage construction and startup of the GAC facility at our Red River facility or Corbin facility; our inability to obtain required financing or financing on terms that are favorable to us; our inability to ramp up our operations to effectively address recent and expected growth in our business; loss of key personnel; ongoing effects of inflation and macroeconomic uncertainty, including from the lingering effects of the pandemic and ongoing armed conflicts around the world, and such uncertainty's effect on market demand and input costs; availability of materials and equipment for our business; intellectual property infringement claims from third parties; pending litigation; other factors relating to our business strategy, goals and expectations concerning the Arq Acquisition (including future operations, future performance or results); our ability to maintain relationships with customers, suppliers and others with whom we do business and meet supply requirements, or our results of operations and business generally; risks related to diverting management's attention from our ongoing business operations; costs related to the Arq Acquisition; opportunities for additional sales of our AC products and end-market diversification; our ability to meet customer supply requirements; the rate of coal-fired power generation in the U.S.; the timing and cost of capital expenditures and the resultant impact to our liquidity and cash flows; and the other risk factors described in our filings with the SEC, including our most recent Annual Report on Form 10-K. You are cautioned not to place undue reliance on the forward-looking statements and to consult filings we have made and will make with the SEC for additional discussion concerning risks and uncertainties that may apply to our business and the ownership of our securities. In addition to causing our actual results to differ, the factors listed above may cause our intentions to change from those statements of intention set forth in this press release. Such changes in our intentions may also cause our results to differ. We may change our intentions, at any time and without notice, based upon changes in such factors, our assumptions, or otherwise. The forward-looking statements speak only as to the date of this press release, and we disclaim any duty to update such statements unless required by law.
Source: Arq, Inc.
Investor Contact:
Anthony Nathan, Arq
Marc Silverberg, ICR
investors@arq.com
| Arq, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
| As of | ||||||||
| (in thousands, except share data) | September 30, 2024 | December 31, 2023 | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 48,662 | $ | 45,361 | ||||
| Receivables, net | 16,590 | 16,192 | ||||||
| Inventories, net | 18,487 | 19,693 | ||||||
| Prepaid expenses and other current assets | 3,530 | 5,215 | ||||||
| Total current assets | 87,269 | 86,461 | ||||||
| Restricted cash, long-term | 8,718 | 8,792 | ||||||
| Property, plant and equipment, net of accumulated depreciation of | 139,137 | 94,649 | ||||||
| Other long-term assets, net | 44,841 | 45,600 | ||||||
| Total Assets | $ | 279,965 | $ | 235,502 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 20,191 | $ | 14,603 | ||||
| Current portion of debt obligations | 2,324 | 2,653 | ||||||
| Other current liabilities | 7,671 | 5,792 | ||||||
| Total current liabilities | 30,186 | 23,048 | ||||||
| Long-term debt obligations, net of current portion | 17,634 | 18,274 | ||||||
| Other long-term liabilities | 14,029 | 15,780 | ||||||
| Total Liabilities | 61,849 | 57,102 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock: par value of | — | — | ||||||
| Common stock: par value of | 47 | 38 | ||||||
| Treasury stock, at cost: 4,618,146 and 4,618,146 shares as of September 30, 2024 and December 31, 2023, respectively | (47,692 | ) | (47,692 | ) | ||||
| Additional paid-in capital | 197,988 | 154,511 | ||||||
| Retained earnings | 67,773 | 71,543 | ||||||
| Total Stockholders’ Equity | 218,116 | 178,400 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 279,965 | $ | 235,502 | ||||
| Arq, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| (in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | $ | 34,774 | $ | 29,829 | $ | 81,919 | $ | 71,079 | ||||||||
| Cost of revenue, exclusive of depreciation and amortization | 21,339 | 20,707 | 52,279 | 53,218 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 8,058 | 8,297 | 22,735 | 27,574 | ||||||||||||
| Research and development | 787 | 639 | 3,341 | 2,145 | ||||||||||||
| Depreciation, amortization, depletion and accretion | 2,716 | 2,711 | 6,090 | 7,276 | ||||||||||||
| Gain on sale of assets | (154 | ) | — | (154 | ) | (2,695 | ) | |||||||||
| Total operating expenses | 11,407 | 11,647 | 32,012 | 34,300 | ||||||||||||
| Operating income (loss) | 2,028 | (2,525 | ) | (2,372 | ) | (16,439 | ) | |||||||||
| Other (expense) income: | ||||||||||||||||
| Earnings from equity method investments | 127 | 412 | 127 | 1,512 | ||||||||||||
| Interest expense | (806 | ) | (787 | ) | (2,426 | ) | (2,155 | ) | ||||||||
| Other | 268 | 725 | 931 | 1,510 | ||||||||||||
| Total other (expense) income | (411 | ) | 350 | (1,368 | ) | 867 | ||||||||||
| Income (loss) before income taxes | 1,617 | (2,175 | ) | (3,740 | ) | (15,572 | ) | |||||||||
| Income tax (expense) benefit | — | — | (30 | ) | 33 | |||||||||||
| Net income (loss) | $ | 1,617 | $ | (2,175 | ) | $ | (3,770 | ) | $ | (15,539 | ) | |||||
| Income (loss) per common share: | ||||||||||||||||
| Basic | $ | 0.04 | $ | (0.07 | ) | $ | (0.11 | ) | $ | (0.56 | ) | |||||
| Diluted | $ | 0.04 | $ | (0.07 | ) | $ | (0.11 | ) | $ | (0.56 | ) | |||||
| Weighted-average number of common shares outstanding: | ||||||||||||||||
| Basic | 36,124 | 31,807 | 34,085 | 27,894 | ||||||||||||
| Diluted | 37,442 | 31,807 | 34,085 | 27,894 | ||||||||||||
| Arq, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||||
| Nine Months Ended September 30, | ||||||||
| (in thousands) | 2024 | 2023 | ||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (3,770 | ) | $ | (15,539 | ) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
| Depreciation, amortization, depletion and accretion | 6,090 | 7,276 | ||||||
| Stock-based compensation expense | 2,185 | 1,810 | ||||||
| Operating lease expense | 1,518 | 2,061 | ||||||
| Amortization of debt discount and debt issuance costs | 450 | 395 | ||||||
| Gain on sale of assets | (154 | ) | (2,695 | ) | ||||
| Earnings from equity method investments | (127 | ) | (1,512 | ) | ||||
| Other non-cash items, net | (113 | ) | — | |||||
| Changes in operating assets and liabilities: | ||||||||
| Receivables and related party receivables | (399 | ) | (359 | ) | ||||
| Prepaid expenses and other assets | 1,812 | 3,595 | ||||||
| Inventories, net | 2,486 | (811 | ) | |||||
| Other long-term assets, net | (1,366 | ) | (3,646 | ) | ||||
| Accounts payable and accrued expenses | (2,611 | ) | (12,033 | ) | ||||
| Other current liabilities | 1,467 | 148 | ||||||
| Operating lease liabilities | (1,255 | ) | (140 | ) | ||||
| Other long-term liabilities | (945 | ) | 305 | |||||
| Net cash provided by (used in) operating activities | 5,268 | (21,145 | ) | |||||
| Cash flows from investing activities | ||||||||
| Acquisition of property, plant, equipment, and intangible assets, net | (42,210 | ) | (17,008 | ) | ||||
| Acquisition of mine development costs | (167 | ) | (1,856 | ) | ||||
| Proceeds from sale of property and equipment | 150 | — | ||||||
| Distributions from equity method investees in excess of cumulative earnings | 127 | 1,512 | ||||||
| Cash and restricted cash acquired in business acquisition | — | 2,225 | ||||||
| Payment for disposal of Marshall Mine, LLC | — | (2,177 | ) | |||||
| Net cash used in investing activities | (42,100 | ) | (17,304 | ) | ||||
| Cash flows from financing activities | ||||||||
| Net proceeds from common stock issued in public offering | 26,659 | — | ||||||
| Net proceeds from common stock issued in private placement transactions | 14,951 | 15,220 | ||||||
| Repurchase of common stock to satisfy tax withholdings | (1,109 | ) | (208 | ) | ||||
| Principal payments on finance lease obligations | (838 | ) | (855 | ) | ||||
| Net proceeds from common stock issued to related party | 800 | 1,000 | ||||||
| Principal payments on notes payable | (404 | ) | (341 | ) | ||||
| Net proceeds from CFG Loan, related party, net of discount and issuance costs | — | 8,522 | ||||||
| Net cash provided by financing activities | 40,059 | 23,338 | ||||||
| Increase (decrease) in Cash and Restricted Cash | 3,227 | (15,111 | ) | |||||
| Cash and Restricted Cash, beginning of period | 54,153 | 76,432 | ||||||
| Cash and Restricted Cash, end of period | $ | 57,380 | $ | 61,321 | ||||
| Supplemental disclosure of non-cash investing and financing activities: | ||||||||
| Change in accrued purchases for property and equipment | $ | 8,199 | $ | 255 | ||||
| Purchase of property and equipment through note payable | $ | 258 | $ | — | ||||
| Equity issued as consideration for acquisition of business | $ | — | $ | 31,206 | ||||
| Paid-in-kind dividend on Series A Preferred Stock | $ | — | $ | 157 | ||||
Note on Non-GAAP Financial Measures
To supplement our financial information presented in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP"), we provide certain supplemental financial measures, including EBITDA and Adjusted EBITDA, which are measurements that are not calculated in accordance with U.S. GAAP. EBITDA is defined as earnings before interest, taxes, depreciation and amortization, and Adjusted EBITDA is defined as EBITDA reduced by the non-cash impact of equity earnings from equity method investments and other non-cash gains, increased by cash distributions from equity method investments, other non-cash losses and non-recurring costs and fees. EBITDA and Adjusted EBITDA should be considered in addition to, and not as a substitute for, net income (loss) in accordance with U.S. GAAP as a measure of performance. See below for a reconciliation from net income (loss), the nearest U.S. GAAP financial measure, to EBITDA and Adjusted EBITDA.
We believe that the EBITDA and Adjusted EBITDA measures are less susceptible to variances that affect our operating performance. We include these non-GAAP measures because management uses them in the evaluation of our operating performance, and believe they help to facilitate comparison of operating results between periods. We believe the non-GAAP measures provide useful information to both management and users of the financial statements by excluding certain expenses, gains, and losses which can vary widely across different industries or among companies within the same industry and may not be indicative of core operating results and business outlook.
EBITDA and Adjusted EBITDA:
The following table reconciles net income (loss), our most directly comparable as-reported financial measure calculated in accordance with U.S. GAAP, to EBITDA (loss) and Adjusted EBITDA (loss).
| Arq, Inc. and Subsidiaries Reconciliation of Net Income (Loss) to Adjusted EBITDA (Loss) (Unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income (loss) (1) | $ | 1,617 | $ | (2,175 | ) | $ | (3,770 | ) | $ | (15,539 | ) | |||||
| Depreciation, amortization, depletion and accretion | 2,716 | 2,711 | 6,090 | 7,276 | ||||||||||||
| Amortization of Upfront Customer Consideration | 127 | 127 | 381 | 381 | ||||||||||||
| Interest expense, net | 600 | 224 | 1,638 | 822 | ||||||||||||
| Income tax expense (benefit) | — | — | 30 | (33 | ) | |||||||||||
| EBITDA (loss) | 5,060 | 887 | 4,369 | (7,093 | ) | |||||||||||
| Cash distributions from equity method investees | 127 | 412 | 127 | 1,512 | ||||||||||||
| Equity earnings | (127 | ) | (412 | ) | (127 | ) | (1,512 | ) | ||||||||
| Gain on sale of assets | (154 | ) | — | (154 | ) | (2,695 | ) | |||||||||
| Financing costs | 228 | — | 228 | — | ||||||||||||
| Adjusted EBITDA (loss) | $ | 5,134 | $ | 887 | $ | 4,443 | $ | (9,788 | ) | |||||||
(1) Included in Net loss for the three and nine months ended September 30, 2023 are zero and
FAQ
What was Arq's (ARQ) revenue in Q3 2024?
When will Arq's (ARQ) Red River facility begin deliveries?
What was Arq's (ARQ) net income for Q3 2024?
How much equity did Arq (ARQ) raise in September 2024?
