Arq Inc (ARQ) 2023 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by. My name is Brent, and I will be your conference operator today. At this time, I would like to welcome everyone to the Advanced Emissions Solutions' Second Quarter 2023 Earnings Conference Call. (Operator Instructions)

女士們先生們，感謝你們的支持。我叫布倫特，今天我將擔任你們的會議操作員。此時，我謹歡迎大家參加 Advanced Emissions Solutions 2023 年第二季度收益電話會議。 （操作員說明）

It is now my pleasure to turn today's call over to Ryan Coleman, Investor Relations. Please go ahead.

現在我很高興將今天的電話轉給投資者關係部的 Ryan Coleman。請繼續。

Good morning, everyone, and thank you for joining us today for our Second Quarter 2023 Earnings results call. With me on the call today are Bob Rasmus, our new Chief Executive Officer and President; as well as Morgan Fields, our Chief Accounting Officer. This conference call is being webcasted live within the Investors section of our website, and a downloadable version of today's presentation is available there as well. A webcast replay will also be available on our site, and you can contact Alpha IR Group for Investor Relations support at (312) 445-2870.

大家早上好，感謝您今天參加我們的 2023 年第二季度盈利結果電話會議。今天與我一起參加電話會議的是我們的新任首席執行官兼總裁鮑勃·拉斯穆斯 (Bob Rasmus)；以及我們的首席會計官摩根·菲爾茲 (Morgan Fields)。本次電話會議正在我們網站的投資者部分進行網絡直播，並且還提供了今天演示文稿的可下載版本。我們的網站上還將提供網絡廣播重播，您可以致電 (312) 445-2870 聯繫 Alpha IR Group 以獲得投資者關係支持。

Let me remind you that the presentation and remarks made today include forward-looking statements as defined in Section 21E of the Securities Exchange Act. These statements are based on information currently available to us and involve risks and uncertainties that could cause actual future results, performance and business prospects and opportunities to differ materially from those expressed in or implied by these statements.

讓我提醒您，今天的演示和言論包含《證券交易法》第 21E 條中定義的前瞻性陳述。這些陳述基於我們目前掌握的信息，涉及風險和不確定性，可能導致未來實際結果、業績、業務前景和機會與這些陳述中明示或暗示的內容存在重大差異。

These risks and uncertainties include, but are not limited to, those factors identified on Slide 2 of today's slide presentation, in our Form 10-Q for the quarter ended June 30, 2023, and other filings with the Securities and Exchange Commission. Except as expressly required by the securities laws, the company undertakes no obligation to update those factors or any forward-looking statements to reflect future events, developments or changed circumstances or for any other reason. In addition, it is especially important to review the presentation and today's remarks in conjunction with the GAAP references in the financial statements.

這些風險和不確定性包括但不限於今天幻燈片演示的幻燈片 2、截至 2023 年 6 月 30 日的季度的 10-Q 表格以及向美國證券交易委員會提交的其他文件中確定的因素。除非證券法明確要求，否則公司不承擔更新這些因素或任何前瞻性陳述以反映未來事件、發展或變化的情況或出於任何其他原因的義務。此外，結合財務報表中的 GAAP 參考資料來審查演示文稿和今天的評論尤為重要。

With that, I would like to turn the call over to Bob.

有了這個，我想把電話轉給鮑勃。

Thank you, Ryan, and thanks to everyone for joining us this morning. I am happy to be here today on this, my first earnings call with ADES. In addition to discussing the company's second quarter results, I want to introduce myself and provide some color as to why I am so excited to have joined the ADES team. One of the biggest challenges the world faces is the preservation, reuse and recycling of our finite natural resources, such as our clean air, water and soil. The strain that the world's consumption and economic growth places on these resources is only expected to grow.

謝謝你，瑞安，也感謝大家今天早上加入我們。我很高興今天能夠參加 ADES 的第一次財報電話會議。除了討論公司第二季度的業績之外，我還想介紹一下自己，並說明為什麼我對加入 ADES 團隊如此興奮。世界面臨的最大挑戰之一是保護、再利用和回收我們有限的自然資源，例如清潔的空氣、水和土壤。世界消費和經濟增長對這些資源造成的壓力預計只會越來越大。

I believe ADES' potential to combine smart technical know-how with environmentally sustainable practices can help solve some of these big challenges in a unique way to the shared benefit of society and our shareholders. As such, when first approached, I was intrigued by the opportunity, potential and challenge. The combination of Arq and ADES has created the only sustainable and vertically integrated operator in the North American activated carbon market.

我相信 ADES 將智能技術知識與環境可持續實踐相結合的潛力可以幫助以獨特的方式解決其中一些重大挑戰，從而實現社會和股東的共同利益。因此，當我第一次接觸時，我對其中的機會、潛力和挑戰很感興趣。 Arq 和 ADES 的合併創建了北美活性炭市場上唯一可持續的垂直一體化運營商。

When the planned expansions are completed, and I'll add more about that later, ADES will produce a unique and high-value activated carbon product for sale onto a marketplace which is currently undersupplied and still growing. Addressing this opportunity can deliver significant shareholder returns while also providing material environmental benefits.

當計劃的擴建完成後，ADES 將生產一種獨特的高價值活性炭產品，並在目前供應不足但仍在增長的市場上銷售，稍後我將對此進行更多介紹。抓住這一機遇可以為股東帶來可觀的回報，同時還能帶來重大的環境效益。

We have a very talented group of people as well as the infrastructure and facilities to execute our plan in a low-risk manner. These factors, alongside the company, in my mind, being materially misunderstood and undervalued made this an opportunity and challenge too compelling to ignore.

我們擁有一支非常有才華的團隊以及基礎設施和設備來以低風險的方式執行我們的計劃。在我看來，這些因素與公司一起被嚴重誤解和低估，這使得這是一個不容忽視的機遇和挑戰。

So I was delighted to accept the Board's offer to join as CEO with my first day being July 17. I was also equally happy to demonstrate my belief in the potential of what we are building here at ADES by purchasing 950,000 shares of stock and receiving a minimal salary while taking most of my compensation in the form of equity and equity-related items. By doing so, I am very well aligned with our shareholders' interest.

因此，我很高興接受董事會的邀請，擔任首席執行官，我的第一天是 7 月 17 日。我也同樣很高興通過購買 950,000 股股票並獲得最低工資，而我的大部分報酬以股權和股權相關項目的形式。通過這樣做，我與股東的利益非常一致。

I will talk a little bit more about our priorities and plans for 2023 and beyond. But first, I would like to turn the call over to Morgan to review our second quarter results in greater detail. Morgan?

我將更多地談論我們 2023 年及以後的優先事項和計劃。但首先，我想將電話轉給摩根，以更詳細地審查我們第二季度的業績。摩根？

Thank you, Bob. On Slide 4 offers a high-level review of our second quarter. One of our biggest focus areas for this quarter has been the integration of Arq. As of today, we have substantially completed the integration of the Arq team, systems and assets. As mentioned on our last call, we also successfully completed the regular scheduled plant turnaround activity in April without disruption. We are very pleased with the planning and the execution of the plant turnaround.

謝謝你，鮑勃。第 4 張幻燈片對我們第二季度進行了高水平回顧。本季度我們最關注的領域之一是 Arq 的集成。截至今天，我們已經基本完成了Arq團隊、系統和資產的整合。正如我們上次電話會議中提到的，我們還成功完成了 4 月份定期計劃的工廠檢修活動，沒有造成任何干擾。我們對工廠改造的規劃和執行非常滿意。

Our second quarter consumables revenue was $20.4 million compared to $24.7 million in the prior year. That figure was well below our expectations as significantly lower natural gas prices relative to 2022 impacted volumes from our power generation customers. Despite the lower volumes by focusing on new markets, maintaining costs and seeing higher average selling prices, we had a better gross margin on a per pound basis in the second quarter compared to the first quarter.

我們第二季度的消耗品收入為 2040 萬美元，而上年同期為 2470 萬美元。該數字遠低於我們的預期，因為天然氣價格相對 2022 年大幅下降影響了我們發電客戶的銷量。儘管由於專注於新市場、維持成本和平均售價較高而導致產量下降，但與第一季度相比，第二季度每磅的毛利率更高。

Looking out to the second half of the year, the potential for lower natural gas prices could continue to have an adverse impact on demand from our power generation customers and our top line. We will continue to seek to offset this through gradual step-up in our average selling price for our overall portfolio, along with wins in non-power generation markets.

展望今年下半年，天然氣價格下跌的潛力可能繼續對我們的發電客戶的需求和我們的營收產生不利影響。我們將繼續尋求通過逐步提高整體投資組合的平均售價以及在非發電市場取得勝利來抵消這一影響。

Turning to our capital plan and cost update. The capital projects to upgrade the Corbin and Red River plants will facilitate our future ability to produce commercial scale, granular activated carbon products, and leverage our new high-performance vertically integrated bituminous-based feedstock. The capital projects remain on schedule and are progressing as expected.

轉向我們的資本計劃和成本更新。升級科爾賓和紅河工廠的資本項目將提高我們未來生產商業規模顆粒活性炭產品的能力，並利用我們新的高性能垂直整合的瀝青基原料。資本項目仍按計劃進行，並按預期進展。

At Corbin, engineers, contractors and equipment have been selected related to the major components of the capital project and purchasing of long lead time items is underway. At Red River, where we anticipate spending the majority of the planned capital, we have applied for the last permit required to begin construction. The process is moving along as planned.

Corbin 已選定與資本項目主要組成部分相關的工程師、承包商和設備，並且正在進行長交貨期項目的採購。在紅河，我們預計將花費大部分計劃資金，我們已經申請了開始施工所需的最後一份許可證。該過程正在按計劃進行。

We continue to expect to incur between $40 million and $45 million in capital expenditures in 2023, driven by enhanced capabilities to enable future granular activated carbon production, amounts for the completed plant turnaround as well as the completion of other capital projects that we started in 2022. We are also conducting a full review of our capital spending cadence to optimize that spend in the most efficient manner and ensure we hit our project milestones.

我們預計 2023 年的資本支出將在 4000 萬至 4500 萬美元之間，這得益於未來顆粒活性炭生產能力的增強、工廠周轉完成的金額以及我們於 2022 年啟動的其他資本項目的完成我們還對我們的資本支出節奏進行全面審查，以最有效的方式優化支出，並確保我們達到項目里程碑。

We have also begun to take actions to achieve the planned go-forward operating cost structure of the combined company, such as streamlining personnel and systems, optimizing overall operations as well as other items. We will continue to evaluate ways to simplify the overall organization and operations while maintaining the ability to achieve the growth initiatives inherent in our business plan.

我們還開始採取行動來實現合併後公司計劃的未來運營成本結構，例如精簡人員和系統、優化整體運營以及其他項目。我們將繼續評估簡化整體組織和運營的方法，同時保持實現業務計劃中固有的增長計劃的能力。

Slide 5 provides a more detailed look at our second quarter financial results. Second quarter revenue totaled $20.4 million compared to $24.7 million in the second quarter of 2022. First half revenue totaled $41.3 million compared to $51.1 million for the comparable period in the prior year. The revenue declines were the result of lower sales of consumable products due to lower natural gas prices, which negatively impacted the company's power generation customers. This decline was partially offset by higher average selling prices for consumable products. The improved margins are a result of being able to optimize the plant while focusing on reducing operating costs.

幻燈片 5 更詳細地介紹了我們第二季度的財務業績。第二季度收入總計 2040 萬美元，而 2022 年第二季度收入為 2470 萬美元。上半年收入總計 4130 萬美元，去年同期收入為 5110 萬美元。收入下降的原因是天然氣價格下跌導致消耗品銷量下降，這對公司的發電客戶產生了負面影響。這一下降被消費品平均售價的上漲部分抵消。利潤率的提高是由於能夠優化工廠，同時專注於降低運營成本。

Second quarter other operating expenses were $11.2 million compared to $7.6 million for the second quarter of 2022. First half other operating expenses were $22.7 million compared to $15.8 million in the prior year. The increases were mainly the result of higher payroll and benefit expenses as well as higher legal and professional fees associated with the company's strategic review process and closing the acquisition of substantially all of the subsidiaries of Arq.

第二季度其他運營支出為 1120 萬美元，而 2022 年第二季度為 760 萬美元。上半年其他運營支出為 2270 萬美元，而上年同期為 1580 萬美元。增加的主要原因是工資和福利費用增加，以及與公司戰略審查流程和完成對 Arq 幾乎所有子公司的收購相關的法律和專業費用增加。

Operating loss in the quarter was $6.1 million compared to $2.7 million in the prior year. First half operating losses totaled $13.9 million compared to an operating loss of $6.1 million in the prior year. The declines were mainly the result of lower consumables revenue and higher operating expenses.

本季度運營虧損為 610 萬美元，而上年同期為 270 萬美元。上半年運營虧損總計 1,390 萬美元，而去年同期運營虧損為 610 萬美元。下降的主要原因是消耗品收入減少和運營費用增加。

Second quarter interest expense was $0.8 million compared to $0.1 million in the second quarter of 2022. First half interest expense was $1.4 million compared to $0.2 million in the prior year period. The increases were mainly the result of the incremental interest expense on the company's $10 million term loan incurred as part of the acquisition of Arq, and the assumption of the term loan as part of the Arq acquisition.

第二季度利息支出為 80 萬美元，而 2022 年第二季度為 10 萬美元。上半年利息支出為 140 萬美元，而去年同期為 20 萬美元。增加的主要原因是公司在收購 Arq 過程中產生的 1000 萬美元定期貸款增加了利息支出，以及在收購 Arq 過程中假設定期貸款。

We did not recognize any income tax expense or benefit for the second quarter of 2023 or 2022. We recognized a small income tax benefit during the first half of the year versus not recognizing any income tax expense or benefit in the prior year period.

我們沒有確認 2023 年第二季度或 2022 年第二季度的任何所得稅費用或福利。我們在上半年確認了少量所得稅福利，而上一年期間沒有確認任何所得稅費用或福利。

Second quarter net loss was $5.9 million compared to a net loss of $0.3 million in the prior year. First half net loss was $13.4 million compared to a net loss of $3.4 million in the prior year. The declines were the result of lower operating earnings.

第二季度淨虧損為 590 萬美元，而上年同期淨虧損為 30 萬美元。上半年淨虧損為 1,340 萬美元，而去年同期淨虧損為 340 萬美元。下降是營業利潤下降的結果。

Second quarter adjusted EBITDA loss was $3 million compared to adjusted EBITDA of $2.2 million in the prior year. First half adjusted EBITDA loss was $10.7 million compared to adjusted EBITDA of $3.1 million for the comparable period in 2022. The decline in adjusted EBITDA was mainly the result of the larger net loss, which included $4.9 million of transaction and integration costs related to the acquisition.

第二季度調整後 EBITDA 損失為 300 萬美元，而上年調整後 EBITDA 為 220 萬美元。上半年調整後 EBITDA 虧損為 1070 萬美元，而 2022 年同期調整後 EBITDA 為 310 萬美元。調整後 EBITDA 下降主要是由於淨虧損較大，其中包括與收購相關的 490 萬美元交易和整合成本。

Cash balances as of June 30, 2023, including restricted cash, totaled $67.6 million compared to $76.4 million as of December 31, 2022. As a reminder, in April, we received a release of approximately $2.3 million of restricted cash which was previously held in escrow as collateral for the surety bond portfolio related to Marshall Mine.

截至2023 年6 月30 日的現金餘額（包括限制性現金）總計6,760 萬美元，而截至2022 年12 月31 日為7,640 萬美元。提醒一下，4 月份，我們收到了約230 萬美元的限制性現金的釋放，這些現金之前持有於託管作為與馬歇爾礦相關的擔保債券投資組合的抵押品。

Total debt inclusive of financing leases as of June 30, 2023, totaled $21.4 million compared to $4.6 million as of December 31, 2022. The increase was driven by the term loan entered into as part of the acquisition as well as the assumption of the Arq loan acquired. First half capital expenditures totaled $10.4 million compared to $2.9 million in the prior year. The increase was the result of the initial cost of the capital [Brooks] projects as well as the higher spend associated with our periodic plant turnaround, which was completed in the second quarter.

截至2023 年6 月30 日，包括融資租賃在內的債務總額為2140 萬美元，而截至2022 年12 月31 日為460 萬美元。這一增長是由作為收購一部分而簽訂的定期貸款以及Arq 的假設推動的。獲得的貸款。上半年資本支出總額為 1,040 萬美元，而去年同期為 290 萬美元。這一增長是由於[布魯克斯]資本項目的初始成本以及與第二季度完成的定期工廠檢修相關的支出增加所致。

With that, I'll turn the call back to Bob.

這樣，我會將電話轉回給鮑勃。

Thank you, Morgan. I'll close with a brief review of our priorities going forward. As mentioned earlier, the combination of Arq and ADES has transformed both companies. Our goal is to make ADES the safest, lowest cost and most profitable company in the industry. We want to do this while completing the transformation from a lignite powder activated carbon focus to an integrated and diversified feedstock producer of powdered and granular activated carbon products with an emphasis on high-value bituminous granular products.

謝謝你，摩根。最後，我將簡要回顧一下我們未來的優先事項。如前所述，Arq 和 ADES 的結合改變了兩家公司。我們的目標是使 ADES 成為業內最安全、成本最低、利潤最高的公司。我們希望在實現這一目標的同時，完成從專注於褐煤粉末活性炭到粉末和顆粒活性炭產品綜合、多元化原料生產商的轉型，重點是高價值的瀝青顆粒產品。

It is a simple goal, but it's going to require hard work and attention to all details, both big and small. My absolute focus will be on execution, starting with the capital projects to expand our production capabilities at Red River and Corbin, all while running our existing businesses in the most efficient manner. The sophisticated nature of the Red River and Corbin facilities, coupled with the unique patented process for converting coal waste into a unique high-quality bituminous-based feedstock for granular activated carbon provides an incredible runway for growth and a highly attractive opportunity.

這是一個簡單的目標，但需要努力工作並關注所有大大小小的細節。我的絕對重點將放在執行上，從資本項目開始，擴大我們在紅河和科爾賓的生產能力，同時以最有效的方式經營我們現有的業務。紅河和科爾賓設施的先進性，加上將煤炭廢物轉化為獨特的優質瀝青基顆粒活性炭原料的獨特專利工藝，提供了令人難以置信的增長跑道和極具吸引力的機會。

Vital to our success will also be implementing our strategy to commercialize our new granular activated carbon product. Our best-in-class R&D group and our outstanding commercial team have been working hand-in-hand securing lead customers for granular activated carbon and other emerging products. Building this sales channel and getting our products prequalified from a technical standpoint is critical to ensuring we are prepared to immediately begin earning trusted supplier status upon reaching full scale production.

對我們的成功至關重要的還有實施我們的戰略，將我們的新型顆粒活性炭產品商業化。我們一流的研發團隊和傑出的商業團隊一直在攜手合作，爭取顆粒活性炭和其他新興產品的主要客戶。建立這個銷售渠道並從技術角度對我們的產品進行資格預審對於確保我們準備好在實現全面生產後立即開始贏得值得信賴的供應商地位至關重要。

Discussions with customers are encouraging. Customers are excited about both the technical capabilities of ADES' products and as a supply resource. Crucially, these discussions also indicate demand continues to exceed supply. We have a very strong foundation to build upon. There are clearly some things we as a team can do better. Over the next 60-plus days, we'll be conducting a review of all aspects of our business with the goal of optimizing cost and productivity.

與客戶的討論令人鼓舞。客戶對 ADES 產品的技術能力和供應資源感到興奮。至關重要的是，這些討論還表明需求繼續超過供應。我們擁有非常堅實的基礎。顯然，作為一個團隊，我們在一些事情上可以做得更好。在接下來的 60 多天內，我們將對業務的各個方面進行審查，以優化成本和生產力。

As we execute and as appropriate, I will provide clear intended guidance of our milestones while highlighting opportunities as well as risks. As an investor looking from the outside in, you never quite know what the reality of the company will be. But having seen the inner workings of ADES in my first few weeks on the job, I firmly believe that the opportunity is just as compelling as I surmised, if not more so. The company's unique assets and capabilities along with our capital expansion plans, serve as a solid foundation as we take the first steps along this path.

當我們執行時，我將酌情為我們的里程碑提供明確的預期指導，同時強調機遇和風險。作為從外到內觀察的投資者，你永遠不知道公司的現實是什麼。但在我入職的頭幾週內了解了 ADES 的內部運作後，我堅信這個機會與我的猜測一樣引人注目，甚至更加引人注目。公司獨特的資產和能力以及我們的資本擴張計劃為我們在這條道路上邁出第一步奠定了堅實的基礎。

To reiterate, our goal is to be the safest, lowest operating cost, most profitable company in the industry. I am excited to get going with the team, and I look forward to sharing more detailed updates and milestones in the future.

重申一下，我們的目標是成為業內最安全、運營成本最低、盈利能力最強的公司。我很高興能與團隊一起前進，並期待在未來分享更詳細的更新和里程碑。

With that, I will turn the call back over to our moderator to move us to Q&A.

這樣，我會將電話轉回給我們的主持人，讓我們進入問答環節。

(Operator Instructions) Your first question is from the line of Gerry Sweeney with ROTH Capital.

（操作員說明）您的第一個問題來自羅斯資本（ROTH Capital）的格里·斯威​​尼（Gerry Sweeney）。

Bob and Morgan, I'm sorry. Bob, I know you've only been there a couple of weeks, so just a couple of questions. And I understand if you may not be able to answer the (inaudible) depth due to timing. But I'll start with the first one. Obviously, CapEx, transforming Red River, Corbin into facilities that can produce bituminous activated carbon. That's the main goal. Just curious of maybe some key milestones that we, as investors, should keep an eye on to make sure this project stays on track for the next 12, 18, 24 months?

鮑勃和摩根，對不起。鮑勃，我知道你只來了幾週，所以只有幾個問題。我理解如果您由於時間原因可能無法回答（聽不清）深度。但我將從第一個開始。顯然，資本支出將紅河、科爾賓改造為可以生產瀝青活性炭的設施。這是主要目標。只是好奇我們作為投資者應該關註一些關鍵里程碑，以確保該項目在未來 12、18、24 個月內保持正軌？

Sure. There are several key milestones. And one of the things before I tell you what the current milestones are is, as we mentioned in our remarks, we're conducting a thorough review of the process. The whole goal is designed to both -- excuse me, expedite and optimize the time line. How can we pull the time line forward because what we're doing, we have a great product. We have a unique product. We're going to bring the marketplace when we have our expanded capabilities. And it's a market which we have mentioned, which is inherently short in under supplies and growing, and that's before even the [PFAS] regulations are promulgated and come into effect at the end of the year.

當然。有幾個關鍵的里程碑。在我告訴您當前的里程碑是什麼之前，其中一件事是，正如我們在評論中提到的，我們正在對該流程進行徹底的審查。整個目標旨在加快和優化時間線。我們怎樣才能把時間線提前，因為我們正在做的事情是，我們有一個很棒的產品。我們有獨特的產品。當我們的能力得到擴展時，我們將帶來市場。我們已經提到過，這是一個本質上供應不足且不斷增長的市場，而且這甚至是在 [PFAS] 法規於年底頒布並生效之前。

So it's really 2 separate portions and segments of the plant expansion. One is the carbon project. That is less extensive. We basically are in the process of implementing that, and we expect to begin commissioning that during the first quarter of next year 2024.

所以它實際上是工廠擴建的兩個獨立的部分和部分。一是碳項目。那是不太廣泛的。我們基本上正在實施該計劃，預計在明年 2024 年第一季度開始調試。

The most recent milestone as we have mentioned, is as it relates to the Red River, which is far more extensive in terms of what we have to do. We've applied for the final permit that will allow us to begin construction once received. We expect to have that absolutely no later than the end of September, although hopefully, it will be much sooner. At that point, we have all the drawings and engineering. We'll get the final construction bids. And the current time line is to begin the commissioning of that Red River plant in the latter part of the fourth quarter of 2024.

正如我們提到的，最近的里程碑與紅河有關，就我們必須做的事情而言，紅河要廣泛得多。我們已經申請了最終許可證，一旦收到許可證，我們就可以開始施工。我們預計絕對不會晚於 9 月底，但希望會早得多。那時，我們已經擁有了所有的圖紙和工程。我們將得到最終的施工投標。目前的時間表是紅河工廠於 2024 年第四季度末開始調試。

Got it. And then secondarily, obviously, you did touch upon this in -- well, obviously, a key important aspect with customers. And you touched upon it in your remarks. Just curious if you can give us an idea of maybe what that pipeline or potential pipeline customers look like? Are you actually prequalifying today? Or is that in the process? Just want to understand how this is also developing in the background.

知道了。其次，顯然，您確實在與客戶的一個關鍵方面談到了這一點。您在講話中也談到了這一點。只是好奇您能否讓我們了解一下管道或潛在管道客戶是什麼樣子？今天你真的參加資格預審了嗎？或者說正在這個過程中？只是想了解這在後台是如何發展的。

Sure. I'm going to answer both the question you asked in a slightly different question. And so I'll come back to the granular. But in terms of our customers, as we mentioned, clearly, natural gas prices are low, and that's affecting demand for our powdered carbon business as it relates to coal-fired plants. So one of the things we've done is we've been able to increase the average selling price and increase actually the margin, but we're concentrating on new markets there, specifically water and the remediation markets. This is both a short-term and a long-term tactic as it relates to the powdered business.

當然。我將在一個稍微不同的問題中回答您提出的兩個問題。所以我會回到細節上來。但就我們的客戶而言，正如我們所提到的，天然氣價格顯然很低，這影響了我們與燃煤電廠相關的粉狀碳業務的需求。因此，我們所做的一件事是我們能夠提高平均售價並實際提高利潤，但我們專注於那裡的新市場，特別是水和修復市場。這既是一種短期策略，也是一種長期策略，因為它涉及到粉末業務。

As it relates to the granular activated carbon business. As I mentioned in my remarks, our R&D team and our commercial team have been working hand-in-hand with customers to be able to get prequalified from a technical standpoint. We have active programs in place in terms of product development that are -- with our technology team, whereby we've been able to supply quantities of our granular activated carbon to potential customers to their labs for prequalification testing. And right now, the results and the conversations we've been having with our customers have gone very well.

因為它涉及顆粒活性炭業務。正如我在發言中提到的，我們的研發團隊和商業團隊一直在與客戶攜手合作，以便能夠從技術角度獲得資格預審。我們與我們的技術團隊一起在產品開發方面製定了積極的計劃，通過這些計劃，我們能夠向潛在客戶的實驗室提供大量顆粒活性炭，以進行資格預審測試。現在，我們與客戶的結果和對話進展順利。

Got it. Can we circle back just to the powdered activated carbon just transitioning to, I think, you said some of the water markets. Just curious as to maybe how large that -- how much capacity could you sell into the water market as opposed to the powder market on the powder side?

知道了。我們可以回到剛剛過渡到的粉狀活性炭嗎，我想，你說的是一些水市場。只是好奇，可能有多大——與粉末方面的粉末市場相比，你可以向水市場銷售多少容量？

We're always looking to optimize our sales mix. What provides us to both short term in terms of the best margin and long term in terms of viability of the marketplace. And so one of the reasons we want to get into the granular market is that it's growing. As I mentioned, it's undersupplied. We expect it to continue to grow. And we expect both the water and the remediation markets per powder to begin, and not begin, but to continue to grow as well. So in terms of quantifying, it's difficult for me to provide you numbers right now, but it is a market that is important to us to continue to expand our presence.

我們一直在尋求優化我們的銷售組合。是什麼為我們提供了短期的最佳利潤和長期的市場生存能力。因此，我們想要進入顆粒市場的原因之一是它正在增長。正如我所提到的，它的供應不足。我們預計它會繼續增長。我們預計水和粉末修復市場將會開始，而且不會開始，而是會繼續增長。因此，就量化而言，我現在很難向您提供數字，但這是一個對我們繼續擴大業務非常重要的市場。

And it's growing, right? As you said, right?

而且它還在增長，對嗎？正如你所說，對嗎？

Correct.

正確的。

There are no further questions at this time. I will now turn the call back over to the CEO, Bob Rasmus.

目前沒有其他問題。現在我將把電話轉回給首席執行官鮑勃·拉斯穆斯 (Bob Rasmus)。

Thanks, Brent, and thank you to everyone for joining the call this morning. We look forward to updating you next quarter on the exciting and continued transformation of ADES.

謝謝布倫特，也感謝大家今天早上加入電話會議。我們期待在下個季度向您介紹 ADES 令人興奮的持續轉型的最新情況。

Ladies and gentlemen, thank you for participating. This concludes today's conference call. You may now disconnect.

女士們、先生們，感謝您的參與。今天的電話會議到此結束。您現在可以斷開連接。