Advanced Emissions Solutions, Inc. - FORM 8-K - EX-99.2 - August 8, 2013

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EX-99.1 - EX-99.1 - Advanced Emissions Solutions, Inc.d580737dex991.htm
8-K - 8-K - Advanced Emissions Solutions, Inc.d580737d8k.htm
2013 Second Quarter Conference Call
August 7,2013
www.advancedemissionssolutions.com
©
2013 Advanced Emissions Solutions, Inc.
Exhibit 99.2

SAFE HARBOR
©
2013
Advanced
Emissions
Solutions,
Inc.
-2-
This presentation includes 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. The
forward-looking statements include statements or expectations regarding future contracts, projects,
demonstrations
and
technologies;
amount
and
timing
of
production
of
RC,
revenues,
earnings,
cash
flows
and
other financial measures; future operations; our ability to capitalize on and expand our business to meet
opportunities in our target markets and profit from our proprietary technologies; scope, timing and impact of
current and anticipated regulations, legislation and IRS guidance; future supply and demand; the ability of our
technologies to assist our customers in complying with government regulations and related matters.  These
statements are based on current expectations, estimates, projections, beliefs and assumptions of our
management. Such statements involve significant 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, changes in laws, regulations and IRS interpretations or guidance, government funding,
accounting
rules,
prices,
economic
conditions
and
market
demand;
timing
of
laws,
regulations
and
any
legal
challenges
to
or
repeal
of
them;
failure
of
the
RC
facilities
to
produce
coal
that
qualifies
for
tax
credits;
termination
of
or
amendments
to
the
contracts
for
RC
facilities;
decreases
in
the
production
of
RC;
failure
to
lease
or
sell
the
remaining
RC
facilities
on
a
timely
basis;
our
inability
to
ramp
up
operations
to
effectively
address expected growth in our target markets; inability to commercialize our technologies on favorable terms;
impact of competition; availability, cost of and demand for alternative tax credit vehicles and other
technologies; technical, start-up and operational difficulties; availability of raw materials and equipment; loss of
key personnel; intellectual property infringement claims from third parties; seasonality and other factors
discussed in greater detail in our filings with the Securities and Exchange Commission (SEC). You are
cautioned not to place undue reliance on such statements and to consult our SEC filings for additional risks
and uncertainties that may apply to our business and the ownership of our securities. Our forward-looking
statements are presented as of the date made, and we disclaim any duty to update such statements unless
required by law to do so. We refer to certain non-GAAP financial measures in this presentation. Reconciliations
of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be
found within this presentation.

©
2013 Advanced Emissions Solutions, Inc.
-3-
D
.
M
ICHAEL
D
URHAM
,
P
RESIDENT AND
CEO
R

EMISSION CONTROL ($ IN MILLIONS)
©
2013 Advanced Emissions Solutions, Inc.
-4-
MATS market developing as expected 
$1-$2B market for consumables to control mercury starting in 2016
ADA is prepared for the equipment market
Supply agreements already in place, engineering capabilities expanded
Ample (and growing) cash balance

FINANCIAL IMPACT OF RC OPERATIONS
©
2013 Advanced Emissions Solutions, Inc.
-5-
Facilities
Status
1Q13A
2Q13A
Annual run rate through 2021
RC Facilities # 1-7
5 facilities leased/sold at 1Q13,                
2 retained by CCS
$10.1
$11.5
$50.0
RC Facility #8
Operated by CCS until late July,
then leased to RC investor
($2.0)
($1.4)
$14.0
RC Facility #9
Leased to RC investor in late July
$0.0
$0.0
$10.0
RC Facility #10
Commenced operations by CCS in 
June, expect to be leased in 2H13
$0.0
($0.3)
$9.0
$8.1
$9.8
$83.0
Note:
ADA owns 42.5% of Clean Coal Solutions
Gross Margin from these  RC facilities

UPDATE ON 28 REFINED COAL FACILITIES
~22MT/yr
~2MT/yr
7 facilities
generating
$75M + in
annual
revenues
Operating
2 facilities
retained
by CCS
CyClean
~15MT/yr
~15MT/yr
~45MT/yr
~45MT/yr
1 facility 
likely to
close in
2014
9 facilities in various
stages of
discussions and
negotiations
~3MT/yr
1 facility
currently
retained (since
early June),
expected to be
leased in 2H13
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2013 Advanced Emissions Solutions, Inc.
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~18MT/yr
~18MT/yr
4 facilities in
negotiations.
Expect one to be
operating in
2H13
~6MT/yr
~6MT/yr
4 facilities in
negotiations
M-45-PC
Not Currently Operating

©
2013 Advanced Emissions Solutions, Inc.
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2013 Q2 R
EVIEW AND
F
INANCIAL
R
ESULTS
MARK
MCK
INNIES
,
SVP
AND
CFO
c

Clean Coal operated 9 facilities in 2Q13, 5 of which were leased
or sold to RC investors
In 2Q13 the four RC facilities operated by Clean Coal incurred operating expenses of $4.4M but generated  $7.7M in tax credits
The operation of these units included $32M in pass-through coal purchases/sales
©
2013 Advanced Emissions Solutions, Inc.
-8-
For the Three Months Ended
March 31,
$(000)
2013
2012
2013
Rental income
11,642
$                  
10,590
$                  
12,213
$                              
Coal sales
31,769
                    
37,739
                    
44,960
                                 
Other income
777
                          
22
                             
950
                                       
Total RC Revenues
44,188
$                  
48,351
$                  
58,123
$                              
Cost of Revenues
36,167
$                  
41,908
$                  
51,469
$                              
Gross Profit
8,021
$                    
6,443
$                    
6,654
$                                 
Gross Profit Margin Percentage
18%
13%
11%
Adjusted Gross Profit*
12,393
$                  
10,927
$                  
13,144
$                              
Adjusted Gross Profit Margin Percentage*
99%
99%
99%
* Adjusted gross profit and adjusted gross profit margin percentage excludes coal sales and raw coal purchases and retained tonnage operating expenses.
See Appendix for explanation of non-GAAP measures.
Operating Statistics (millions)
Tons for leased facilities
2.6
2.6
3.2
Tons retained
1.2
1.2
1.9
Total tons treated
3.8
3.8
5.1
Tax Credits generated by JV
7.7
$                         
7.6
$                         
12.6
$                                   
Tax Credits to ADA (42.5%)
3.3
$                         
3.2
$                         
5.4
$                                     
For the Three Months Ended
June 30,

?
MATS rule finalized in March 2012-
compliance by 2015/2016
?
2Q13 Revenues up 200% year-over-year, driven by MATS demand for ACI and DSI
systems
?
Backlog at 6/30/13 stands at $33.2M
?
Currently working on bids or discussing potential projects for ACI and DSI
systems in excess of $150 million
For the Three Months Ended
March 31,
2013
2012
2013
$(000)
Systems and equipment
9,915
$          
2,745
$       
7,525
$                           
Consulting and development
2,020
            
1,058
         
1,004
                             
Chemicals
79
                   
162
             
240
                                 
Total EC Revenues
$12,014
$3,965
$8,769
Cost of Revenues
9,711
$          
3,087
$       
6,253
$                           
Gross Profit
2,303
$          
878
$          
2,516
$                           
Gross Profit Margin Percentage
19%
22%
29%
EC segment Backlog
33,200
$        
4,500
$       
32,700
$                         
For the Three Months Ended
June 30,
©
2013 Advanced Emissions Solutions, Inc.
-9-

In Phase II of DOE and Industry funded $20.5M 51-month contract to
scale technology to 1MW
Project started in June 2012
Estimated completion of construction in October 2013
Testing in 2014
CO
2
CAPTURE
For the Three Months Ended
March 31,
2013
2012
2013
$(000)
Total CC Revenues
2,728
$       
195
$          
1,422
$                      
Cost of Revenues
2,458
$       
82
$             
1,204
$                      
Gross Profit
270
$          
113
$          
218
$                         
Gross Profit Margin Percentage
10%
58%
15%
Total Backlog
8,500
$       
15,200
$    
11,300
$                   
June 30,
For the Three Months Ended
©
2013 Advanced Emissions Solutions, Inc.
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©
2013 Advanced Emissions Solutions, Inc.
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$(000)
2013
2012
Revenues
$58,930
$52,511
$68,314
*Revenues excluding coal sales
$27,161
$14,772
$23,354
Gross Margin Before Depreciation and Amortization
$10,594
$7,434
$9,388
General and administrative
8,109
4,040
7,313
Research and development
577
618
347
Depreciation and amortization
1,347
1,181
1,422
Operating Income
$561
$1,595
$306
Income from unconsolidated entities
274
132
323
Interest and other income, net
(83)
(389)
(313)
Other expense
(735)
(469)
(673)
Income (Loss) from Continuing Operations Before
Income Taxes and  Non-controlling interests
$17
$869
($357)
Income Tax Benefit (Expense)
-
               
-
               
-
          
Non-controlling interests
(3,195)
         
(2,167)
         
(1,812)
    
Net Income (Loss) Attributable to ADA
(3,178)
$       
(1,298)
$       
(2,169)
$ 
Net Income (Loss) Per Basic Common
Share Attributable to ADA
(0.32)
$         
(0.13)
$         
(0.22)
$    
Weighted Average Basic Common Shares
10,076
         
10,002
         
10,050
   
*See appendix for explanation of non-GAAP measure
2013
June  30,
For the Three Months Ended
For the Three Months Ended
March 31,

$s in Millions
*Included in working capital at 6/30/13 are current liabilities  of  $7.2 million in deposits and $23.4 million in deferred revenue.
Included in working capital at 6/30/12 are current liabilities
of $21.2 million in deposits and $4.5  million in deferred revenue
** Long-term liabilities include $11.2 million and $0.9 million at 6/30/13 and 6/30/12 respectively, related    
to Clean Coal
-12-
©
2013 Advanced Emissions Solutions, Inc.

APPENDIX
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©
2013 Advanced Emissions Solutions, Inc.

ADA-ES, Inc.
100% owned ADES
BCSI, LLC
100% owned ADES
Clean Coal Solutions, LLC 
42.5% owned ADA-ES, Inc.
Operating Companies
©
2013 Advanced Emissions Solutions, Inc.
-14-

-15-
©
2013 Advanced Emissions Solutions, Inc.
For the
For the
For the
Three Months Ended
Three Months Ended
Three Months Ended
$(000)
June 30, 2013
June 30, 2012
March 31, 2013
Coal sales
31,769
$                        
37,739
$                     
44,960
$                          
Cost of coal sales
31,769
$                        
37,739
$                     
44,960
$                          
Operating costs of retained tonnage
4,372
$                          
4,484
$                        
6,490
$                            
Revenues excluding coal sales, adjusted gross profit and adjusted gross profit percentage are non-GAAP financial measures which are
used to provide investors with greater transparency with respect to the effect on revenues, gross margin and gross margin percentage
from Clean Coal’s operation of certain RC facilities for its own account.  Adjusted gross profit and adjusted gross margin percentage
excludes coal sales and raw coal purchases and retained tonnage operating expenses. We believe these non-GAAP financial measures
provide meaningful supplemental information for investors regarding the performance of our business and the effect on revenues,
gross margin and gross margin percentage of the operation of these RC facilities by Clean Coal for its own account.

CONTACTS
Graham Mattison
Vice President, Investor Relations
(646)-319-1417
graham.mattison@adaes.com
Michael D. Durham, Ph.D., MBA
President & CEO
Mark H. McKinnies
SVP & CFO
-16-
©
2013 Advanced Emissions Solutions, Inc.

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