Arq Inc (ARQ) 2024 Q1 法說會逐字稿

Good morning, everyone, and thank you for joining us today for our first quarter 2024 earnings results call. With me on the call today are Robert Rasmus, our Chief Executive Officer and President, as well as Stacia Hansen, our Treasurer and Chief Accounting Officer.

大家早安，感謝您今天參加我們的 2024 年第一季財報電話會議。今天與我一起參加電話會議的有我們的執行長兼總裁羅伯特·拉斯穆斯 (Robert Rasmus) 以及我們的財務主管兼首席會計官斯塔西亞·漢森 (Stacia Hansen)。

This conference call is being webcast live with 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 website, and you can contact our Investor Relations team at investors@arq.com.

本次電話會議正在我們網站的投資者部分進行網路直播，並且還提供了今天簡報的可下載版本。我們的網站上也將提供網路廣播重播，您可以透過 Investors@arq.com 聯絡我們的投資者關係團隊。

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, and 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 great.

讓我提醒您，今天的演示和言論包括《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，涉及可能導致未來實際結果的風險和不確定性，業績和業務前景及機會與這些所明示或暗示的存在重大差異。

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 March 31, 2024 and other filings with the Securities and Exchange Commission.

這些風險和不確定性包括但不限於我們截至 2024 年 3 月 31 日的季度的 10-Q 表格中今天幻燈片演示的幻燈片 2 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。

Except as expressly required by securities law, 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 view the presentation and today's remarks in conjunction with the GAAP references in the financial statements.

除非證券法明確要求，否則本公司不承擔更新這些因素或任何前瞻性聲明以反映未來事件、發展或情況變化或任何其他原因的義務。此外，將簡報和今天的評論與財務報表中的 GAAP 參考資料結合起來尤其重要。

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

有了這個，我想把電話轉給鮑伯。

Thank you, Anthony, and thanks to everyone for joining us this morning. I'm proud to report that for the first quarter of 2024, we maintained the strong momentum which began building in the second half of last year. Our latest quarterly performance reflects continued top line growth and improved margins driven by higher pricing and cost management.

謝謝你，安東尼，也謝謝大家今天早上加入我們。我很自豪地向大家報告，2024 年第一季度，我們維持了去年下半年開始建立的強勁勢頭。我們最新的季度業績反映了在更高的定價和成本管理的推動下，收入持續增長，利潤率提高。

Our performance in the first quarter of 2024 versus 2023 is even more impressive given lower volumes caused by a very mild winter. These efforts resulted in the continued financial improvement to our foundational PAC business and ongoing progress related to our granular activated carbon expansion.

鑑於非常溫和的冬季導致銷量下降，我們 2024 年第一季的業績與 2023 年相比更加令人印象深刻。這些努力使我們的基礎 PAC 業務的財務狀況持續改善，並與我們的顆粒活性碳擴張相關的持續進展。

I am also excited about signing our first granular contract. I will provide more details on this milestone event later in my remarks.

我也很高興簽署我們的第一份細粒度合約。我將在稍後的發言中提供有關這一里程碑事件的更多詳細資訊。

Our first quarter results evidenced the clear momentum and improvements we are delivering across the business. They also demonstrate that these changes are taking root. The best evidence of our business optimization and transformation was our strong gross margin performance, at 37%, our gross margin was more than double the prior year period.

我們第一季的業績證明了我們在整個業務領域所取得的明顯動能和改進。他們還表明這些變化正在紮根。我們業務優化轉型的最佳證明就是強勁的毛利率表現，毛利率達到37%，是去年同期的兩倍多。

We are also proud to have delivered a 4% increase in revenues versus last year, despite lower volumes due to the impact of a very mild winter and lower natural gas prices in our power generation business, while adjusted EBITDA was negative $1.1 million, we reported our third consecutive quarter of year-over-year growth in adjusted EBITDA and a fourth consecutive quarter of double digit year-over-year percentage growth in average selling price.

我們也感到自豪的是，儘管由於氣候溫和的冬季和發電業務天然氣價格較低的影響導致銷量下降，但我們的收入比去年增長了 4%，而調整後的 EBITDA 為負 110 萬美元。調整後EBITDA 連續第三個季度同比增長，平均售價連續第四個季度實現兩位數年增長。

Adjusted EBITDA was impacted by spending $1.6 million in R&D. This represents a $1 million increase over the prior year. The increase in R&D spending was directly related to product qualification testing with lead adopters as part of our ongoing GAC contracting process. While a negative impact for the quarter, it was an investment with tremendous near and long-term benefits.

調整後 EBITDA 受到 160 萬美元研發支出的影響。這比前一年增加了 100 萬美元。研發支出的增加與主要採用者的產品資格測試直接相關，這是我們正在進行的 GAC 合約流程的一部分。雖然對本季產生了負面影響，但這是一項具有巨大近期和長期效益的投資。

It is because of these in-depth technical discussions that we were able to sign our first green contract and are confident in our ability to pre-contract the entire 25 million pounds of granular activated carbon prior to beginning production. As we've outlined previously, the performance of our PAC business is correlated with natural gas prices.

正是由於這些深入的技術討論，我們才能夠簽署第一份綠色合同，並對我們在開始生產之前預先簽訂全部 2500 萬磅顆粒活性炭的能力充滿信心。正如我們之前概述的，我們的 PAC 業務的表現與天然氣價格相關。

This year's milder than normal winter led to lower natural gas pricing as a consequence, demand for electricity generated from coal-fired power. The end market for a majority of our PAC solutions was reduced. The 6% decline in year-over-year volumes was offset by a 16% increase in our ASP versus the prior year.

今年的冬季比平常溫和，導致天然氣價格下降，增加了對燃煤發電的需求。我們大多數 PAC 解決方案的終端市場都減少了。銷量年減 6%，被我們的平均售價較上年增長 16% 所抵銷。

The increase in average selling price, when combined with our manufacturing cost reduction initiatives, resulted in our achieving the previously mentioned 37% gross margin. It's also worth noting that our first quarter performance in a portion of our second quarter are generally seasonally softer quarters for our business.

平均售價的上漲，加上我們降低製造成本的舉措，使我們實現了前面提到的 37% 的毛利率。還值得注意的是，我們第一季的業績和第二季的部分時間對我們的業務來說通常是季節性疲軟的季度。

I am very proud of our team, delivering revenue growth year-on-year while also continuing to fundamentally improve margins and profitability across the business.

我為我們的團隊感到非常自豪，他們實現了同比收入成長，同時繼續從根本上提高整個業務的利潤率和盈利能力。

From an operational perspective, we performed well and I commend the team for their ongoing focus, operational cost management and execution efficiency. As an aside, one [person] example of outstanding execution is the recently completed plant turnaround at our Red River facility.

從營運角度來看，我們表現良好，我讚揚團隊的持續專注、營運成本管理和執行效率。順便說一句，傑出執行力的一個例子是我們紅河工廠最近完成的工廠週轉。

The plant turnaround occurs every two years, this year, we shut down the plant for two weeks to conduct regular plant maintenance and tie in certain systems and components for our GAC expansion. The turnaround was completed safely on time and on budget.

工廠每兩年進行一次檢修，今年，我們將工廠關閉兩週，以進行定期工廠維護，並為我們的 GAC 擴張安裝某些系統和組件。週轉工作按時、按預算安全完成。

Progress is rarely linear and the sustainable improvements we are realizing are clearly evident in all aspects of our business and financial performance.

進展很少是線性的，我們正在實現的可持續改進在我們業務和財務表現的各個方面都顯而易見。

While I do not expect our PAC operations to transform to a high-growth business for us, we have made undeniable progress and are in a fundamentally different position to where we were 12 or even 6 months ago.

雖然我不認為我們的 PAC 業務會轉變為高成長業務，但我們已經取得了不可否認的進步，並且與 12 甚至 6 個月前相比，我們的處境已經發生了根本性的變化。

As a result, I continue to expect that our PAC business will be cash generative for full year 2024 for marketing, a critical achievement to the go-forward strength of our business and generation of shareholder value.

因此，我仍然預計我們的 PAC 業務將在 2024 年全年為行銷產生現金，這對於我們業務的前進實力和股東價值的創造來說是一項關鍵成就。

As I mentioned previously, the combination of a mild winter and low natural gas prices had a negative effect on our power generation volumes. However, low natural gas prices are not the only factor in reduced demand for coal fired electrical power.

正如我之前提到的，溫和的冬季和較低的天然氣價格對我們的發電量產生了負面影響。然而，天然氣價格低廉並不是燃煤電力需求減少的唯一因素。

Alternative energy, such as biogas and biomethane are new and growing power sources. This is actually good for Arq and for GAC demand, we knew about natural gas must be purified before it can enter the grid or pipeline system.

沼氣和生物甲烷等替代能源是新興且不斷成長的能源。這實際上對 Arq 和 GAC 需求有利，我們知道天然氣必須經過淨化才能進入電網或管道系統。

The contaminants removed are primarily but not exclusively sulphur producers must use GAC to remove contaminants. Again, another reason why we are bullish on the demand for our GAC solutions. This provides an excellent lead into an update on our latest GAC expansion progress.

去除的污染物主要但不限於硫磺生產商必須使用GAC去除污染物。這也是我們看好廣汽解決方案需求的另一個原因。這為了解我們最新的 GAC 擴張進展提供了極好的線索。

Construction at our Red River facility is proceeding well, and we remain on schedule for targeted commissioning in the fourth quarter of this year. To facilitate this, I'm delighted to confirm that we are now actively commissioning our carbon facility.

我們的紅河工廠的建設進展順利，我們仍按計劃在今年第四季進行有針對性的調試。為了促進這一點，我很高興地確認我們現在正在積極調試我們的碳設施。

Carbon is where we will produce our purified bitumen as waste feedstock to be used in the production of our unique GAC products at Red River, commissioning is progressing as planned, and we expect to conclude the process in May.

我們將在 Carbon 生產純化瀝青，作為廢物原料，用於在紅河生產我們獨特的 GAC 產品，調試正在按計劃進行，我們預計將於 5 月完成該過程。

Today, we are updating our full year 2024 CapEx forecast to a range of $60 million to $70 million, reflecting an increase of $5 million to $10 million versus our previously communicated guidance range of between $55 million and $60 million.

今天，我們將 2024 年全年資本支出預測更新為 6,000 萬美元至 7,000 萬美元，與先前公佈的 5,500 萬美元至 6,000 萬美元指導範圍相比，增加了 500 萬美元至 1,000 萬美元。

The update is driven by a higher than expected CapEx for our strategic Red River and Phase one expansion, specifically increased steel and concrete cost and requirements versus original estimates.

此次更新是由於我們的策略性紅河和第一期擴建的資本支出高於預期，特別是與最初的估計相比，鋼材和混凝土成本和要求的增加。

Of the $60 million to $70 million in 2024 for CapEx, we expect Red River Phase one CapEx to represent $55 million to $60 million of that amount. Our team is working continuously and intensely to identify cost savings and execute on ways to reduce some of the overall project increase. We are making every effort to ensure that there are no further changes in our spending plan.

在 2024 年 6,000 萬至 7,000 萬美元的資本支出中，我們預期紅河第一期資本支出將佔其中的 5,500 萬至 6,000 萬美元。我們的團隊正在持續、緊張地工作，以確定成本節約並執行減少部分整體專案成長的方法。我們正在盡一切努力確保我們的支出計劃不再發生任何變化。

At this point, it is logical for an investor to ask. CapEx has risen continuously for the last several quarters. What confidence do you have that there won't be further increases? And what contingencies do you now have in place and that eventuality?

此時，投資人提出這樣的問題是合乎邏輯的。過去幾季資本支出持續上升。您有什麼信心不會進一步上漲？您現在有哪些突發事件以及可能發生的情況？

The majority of the previous increases are related to poor services provided by external parties previously contracted to manage and engineer the project that I mentioned on our last earnings call. The latest increase is due to these external parties significantly underestimating certain requirements of the project.

先前的成長大部分與先前簽約管理和設計我在上次財報電話會議上提到的專案的外部各方提供的服務品質不佳有關。最新的成長是由於這些外部各方大大低估了專案的某些要求。

This substantially increase the scale and cost of the amount of steel and concrete needed, based on our previous experiences we have now included a contingency factor into our new guidance range that we hope not to require, but should mean that we finally draw a line under possible further increases.

這大大增加了所需鋼材和混凝土數量的規模和成本，根據我們先前的經驗，我們現在已將意外因素納入我們的新指導範圍，我們希望不需要該因素，但這應該意味著我們最終劃清了界限可能進一步增加。

We intend to fund our CapEx with a mix of cash on hand cash generation, ongoing cost reduction initiatives, potential prepayments on GAC contracts and a planned refinancing and expansion of our existing term loan.

我們打算透過手頭現金產生、持續的成本削減計劃、GAC 合約的潛在預付款以及計劃的再融資和擴大現有定期貸款的組合來為我們的資本支出提供資金。

Most importantly, and this is critical even when accounting for this latest CapEx forecast, we remain extremely confident in this project having a three year or less payback, simply stated this remains a great investment opportunity that will drive attractive returns and fundamentally alter the growth trajectory and long-term prospects for our business.

最重要的是，即使考慮到最新的資本支出預測，這一點也至關重要，我們仍然對該專案的三年或更短投資回報期充滿信心，簡單地說，這仍然是一個巨大的投資機會，將帶來有吸引力的回報並從根本上改變成長軌跡以及我們業務的長期前景。

And we continue to believe that we will not require the sale of any equity to achieve this. Our confidence in reaching these target investment returns are not just hypothetical.

我們仍然相信，我們不需要出售任何股權來實現這一目標。我們對實現這些目標投資回報的信心不僅僅是假設。

Earlier today, we announced a strategic milestone with the signing of our first ever granular activated carbon contract. That contract accounts for approximately 5 million pounds of annual GAC production, or approximately 20% of our targeted initial nameplate capacity to contract prices attractive and represents a multiple of our average PAC pricing.

今天早些時候，我們簽署了第一份顆粒活性碳合同，宣布了一個戰略里程碑。該合約佔 GAC 年產量約 500 萬磅，約占我們目標初始銘牌產能的 20%，合約價格具有吸引力，是我們平均 PAC 定價的數倍。

This is a tremendous achievement and provides third-party validation of our strategy and expanded solutions offering, the signing of our first GAC contract amplifies our confidence in both our broader granular activated carbon strategy and our specific product potential.

這是一項巨大的成就，為我們的策略和擴展的解決方案提供了第三方驗證，我們第一份 GAC 合約的簽署增強了我們對更廣泛的顆粒活性碳策略和特定產品潛力的信心。

The contract also further de-risks the strategic expansion of our Red River plant. We remain in active discussions with additional customers regarding our remaining GAC capacity. Based on those discussions, we are confident in our ability to enter into additional contracts with the facilities full 25 million pound capacity ahead of final commissioning later this year and look forward to providing further updates in the near term.

該合約還進一步降低了我們紅河工廠戰略擴張的風險。我們仍在與其他客戶就 GAC 的剩餘產能進行積極討論。根據這些討論，我們有信心在今年晚些時候最終調試之前與該設施簽訂額外的合同，該設施的總產能為 2500 萬磅，並期待在短期內提供進一步的更新。

Let's now turn to a discussion of exciting and even transformational regulatory news that has been released since we last spoke with you on our fourth quarter earnings call in March, as many of you are likely aware, on April 10, the EPA issued a landmark decision to implement the first ever national legally enforceable drinking water regulations on PFAS or forever chemicals.

現在讓我們來討論一下自我們上次在3 月份的第四季度財報電話會議上與您交談以來發布的令人興奮甚至變革性的監管新聞，正如你們中的許多人可能知道的那樣，4 月10 日，美國環保署(EPA) 發布了一項具有里程碑意義的決定實施首個關於 PFAS 或永久化學品的全國性可法律強制執行的飲用水法規。

The regulation significantly lowers permissible levels of these types of chemicals in the US drinking water by over 90% from prior EPA guidance. These changes marked a pivotal moment in ongoing and increasing efforts to safeguard public health and preserve environmental integrity at our we recognize this is a monumental opportunity.

該法規將美國飲用水中此類化學物質的允許含量比 EPA 先前的指南顯著降低了 90% 以上。這些變化標誌著我們不斷加大努力維護公眾健康和保護環境完整性的關鍵時刻，我們意識到這是一個巨大的機會。

The new standards set by the EPA are expected to drive even stronger near and long-term demand for effective remediation products, particularly granular activated carbon as demand escalates due to the stricter regulations.

EPA 制定的新標準預計將推動對有效修復產品的近期和長期需求，尤其是顆粒活性碳，因為更嚴格的法規導致需求不斷增加。

Arc is strategically well positioned, not just to participate, but to lead the market with an our unique GAC products and innovative solutions.

Arc 在策略上處於有利地位，不僅能夠參與市場，而且能夠憑藉我們獨特的 GAC 產品和創新解決方案引領市場。

We articulated our enthusiasm following the announcement emphasizing that this regulatory shift paves the way for stronger demand for our products and contribute to a cleaner future with materially higher quality water in our communities.

我們在宣布這一消息後表達了我們的熱情，強調這一監管轉變為我們產品的更強勁需求鋪平了道路，並為我們的社區提供更高質量的水，為更清潔的未來做出貢獻。

We estimate that the EPA's new benchmarks will catalyse a three to five times increase in GAC demand over the coming five years. Within the water market alone, we believe the current water sector demand is roughly 170 million pounds.

我們估計，美國環保署的新基準將在未來五年內促進廣汽的需求成長三到五倍。僅在水市場中，我們認為目前水產業的需求約為 1.7 億磅。

At the conservative end of our estimates, this equates to total water sector demand of in excess of 500 million pound of annual demand versus the current 170 million pounds. Clearly, this increase in demand is well in excess of current and anticipated supply is outlined on slide 9 of our latest investor presentation. Historical market data, circa 2021, 2022 estimates, a GAC supply deficit of between approximately 50 million pounds and 115 million pounds between 2025 and 2029.

根據我們保守的估計，這相當於水務部門的年需求總量超過 5 億磅，而目前為 1.7 億磅。顯然，需求的成長遠遠超過了當前和預期的供應量，如我們最新投資者簡報的幻燈片 9 所示。根據 2021 年、2022 年左右的歷史市場數據估計，2025 年至 2029 年間，廣汽集團的供應缺口約為 5,000 萬磅至 1.15 億磅。

Importantly, this data does not factor in the significant increases in demand, driven by the EPA's recently announced regulations. We estimate that normal market growth when combined with municipalities seeking to comply with the new EPA regulations in advance of the 2029 deadline will potentially result in 370 million pounds of excess demand versus current supply.

重要的是，該數據並未考慮美國環保署最近宣布的法規所推動的需求大幅增加。我們估計，正常的市場成長加上市政當局尋求在 2029 年最後期限之前遵守新的 EPA 法規，可能會導致需求相對於當前供應過剩 3.7 億磅。

With this supply and demand backdrop, we believe prices could continue to materially improve versus our business plan estimates and even the pricing reflected in our inaugural supply contract, we believe the regulatory landscape for PFAS continues to dramatically change, not just nationally, but globally.

在這種供需背景下，我們相信，與我們的業務計劃估計相比，價格可能會繼續大幅改善，甚至我們的首份供應合約中反映的定價，我們相信PFAS 的監管環境將繼續發生巨大變化，不僅在全國範圍內，而且在全球範圍內。

The level and intensity of discussions and focus on the topic is palpable, and we're proud to be at the center of this critical global initiative.

討論的水平和強度以及對該主題的關注是顯而易見的，我們很自豪能夠成為這項重要全球倡議的中心。

We anticipate similar regulations to those recently announced by the EPA will be adopted in other markets around the world. This will further expand our addressable market and opportunities for growth. We remain dedicated to our mission of enabling customers to meet these evolving regulations through our innovative technologies.

我們預計全球其他市場將採用與美國環保署最近宣布的類似法規。這將進一步擴大我們的潛在市場和成長機會。我們始終致力於實現我們的使命，透過我們的創新技術使客戶能夠滿足這些不斷變化的法規。

As I noted earlier, the ongoing construction of our new 25 million pounds GAC facility is progressing on schedule for commissioning in the fourth quarter of this year. This expansion will significantly enhance our production capacity and fortify our supply chain, ensuring we meet both current and future demands. While we remain keenly focused on developing Phase one of our strategic growth project at Red River.

正如我之前指出的，我們耗資 2500 萬英鎊的新 GAC 設施的建設工作正在按計劃進行，預計將於今年第四季投入運作。此次擴建將顯著提高我們的生產能力並強化我們的供應鏈，確保我們滿足當前和未來的需求。同時，我們仍然專注於開發紅河戰略成長計畫的第一階段。

We are actively assessing the viability of a second 25 million pounds at Red River This remains in the planning stages, but importantly, we have already secured all necessary permits to quickly execute on a Red River Phase two project.

我們正在積極評估紅河第二個 2500 萬英鎊的可行性，這仍處於規劃階段，但重要的是，我們已經獲得了快速執行紅河二期項目所需的所有必要許可。

We believe the combination of market ready product existing site location and necessary permits in place puts us several years ahead of any potential competition, which will undoubtedly be attracted to the market, should demand and pricing improve as we expect.

我們相信，市場現成的產品現有場地位置和必要的許可相結合，使我們領先於任何潛在的競爭者幾年，如果需求和價格如我們預期的那樣改善，毫無疑問，這些競爭將被市場吸引。

With that, I will hand it over to Stacia to discuss the latest financials in greater detail.

接下來，我將把它交給 Stacia，以更詳細地討論最新的財務狀況。

Thanks, Bob, and thanks, everybody, for joining us today, and we delivered strong financial results during the first quarter with revenue growing 4% year over year, driven largely by enhanced contract terms, including 16% growth in average selling price and positive changes in product mix, partially offset by a 6% decline in volumes.

謝謝鮑勃，也謝謝大家今天加入我們，我們在第一季度取得了強勁的財務業績，收入同比增長4%，這主要是由於合約條款的增強，包括平均售價增長16%，以及積極的業績成長。

Our gross margin in the quarter was approximately 37%, more than double the 17% reported in prior year period. As a result, in the first quarter, we achieved the fourth consecutive quarter of double digit year-over-year percentage growth in ASP and also reduced our net loss over the prior year period.

我們本季的毛利率約為 37%，是去年同期報告的 17% 的兩倍多。因此，第一季度，我們實現了平均售價連續第四個季度實現兩位數同比增長，並減少了去年同期的淨虧損。

Adjusted EBITDA loss improved year over year to $1.1 million compared to an adjusted EBITDA loss of $7.7 million in the prior year period. Net loss was $3.4 million compared to a net loss of $7.5 million in Q1 of 2023.

調整後 EBITDA 虧損年增至 110 萬美元，而上年同期調整後 EBITDA 虧損為 770 萬美元。淨虧損為 340 萬美元，而 2023 年第一季的淨虧損為 750 萬美元。

I would note that these improvements have come in what is a seasonally weak quarter for the company and on the back of what was a very mild winter to achieve these enhancements against a backdrop of lower volumes as a result of contract enhancements we flagged in the second half of 2023 is especially encouraging.

我要指出的是，這些改進是在公司季節性疲軟的季度以及非常溫和的冬季的背景下實現的，而我們在第二季度中標記的合約增強導致銷量較低，因此實現了這些增強功能2023年下半年尤其令人鼓舞。

Again, our average selling price for the quarter improved 16% year over year, we continue to eliminate negative margin contracts as we focus on profitability over volumes and at the end of the first quarter have reduced loss-making contracts to roughly 3% of volumes versus roughly 24% in 2022 and approximately 13% in 2023.

同樣，我們本季度的平均售價同比提高了 16%，我們繼續消除負利潤合同，因為我們專注於盈利能力而不是銷量，並在第一季度末將虧損合同減少到銷量的大約 3% 2022 年約24%，2023 年約13%。

Selling, general and administrative expenses totaled $7.7 million, reflecting a reduction of approximately $3.6 million versus the prior year period, driven by a reduction in payroll and benefit expenses as well as legal and professional fees, offset by a higher for compensation and rent and occupancy expenses.

銷售、一般和管理費用總計 770 萬美元，比去年同期減少約 360 萬美元，這是由於工資和福利費用以及法律和專業費用的減少，但被補償、租金和占用率的增加所抵消花費。

Research and development costs for the first quarter totaled $1.6 million compared to approximately $0.7 million in the prior year period. Year-over-year growth in R&D was primarily driven by conducting product qualification testing in the first quarter of 2024 with potential lead GAC adopters.

第一季的研發成本總計 160 萬美元，而去年同期的研發成本約為 70 萬美元。研發的年成長主要是由 2024 年第一季與潛在的 GAC 潛在採用者進行的產品資格測試所推動的。

Based on today's GAC contract announcement we believe this reflects a very smart use of our capital. Overall, and on an annualized basis, our performance demonstrates our ability to operate our PAC business in a way that contributes positively to our economic position while further enabling us to pursue and execute on high-growth, high-margin opportunities with our expanding GAC business.

根據今天的 GAC 合約公告，我們認為這反映了我們對資本的非常明智的利用。總體而言，按年計算，我們的業績表明我們有能力以一種對我們的經濟地位做出積極貢獻的方式運營PAC 業務，同時進一步使我們能夠透過不斷擴大的GAC 業務來追求和執行高成長、高利潤的機會。

As Bob mentioned, we fully anticipate that our PAC business will be cash generative in 2024. And with that, we'll have a much more secure foundational business on which we can add more rewarding GAC opportunities.

正如 Bob 所提到的，我們完全預期 PAC 業務將在 2024 年產生現金。這樣，我們將擁有更安全的基礎業務，在此基礎上我們可以增加更多有價值的 GAC 機會。

Turning to the balance sheet. We ended the first quarter with cash of $44 million with the change versus last year and quarter, driven by ongoing strategic investments and expansion at Corbin and Red River. As Bob noted earlier, we updated our 2024 CapEx forecast to a range of $60 million to $70 million, of which Red River Phase one is expected to account for $55 million to $60 million.

轉向資產負債表。在 Corbin 和 Red River 持續的策略性投資和擴張的推動下，我們第一季末的現金為 4,400 萬美元，與去年和季度相比有所變化。正如鮑伯先前指出的，我們將 2024 年資本支出預測更新為 6,000 萬至 7,000 萬美元，其中紅河一期預計將佔 5,500 萬至 6,000 萬美元。

To echo Bob's comments, we remain extremely confident in our ability to fund our CapEx needs via our existing cash, cash generation, ongoing cost reduction initiatives, potential prepayments on GAC contracts and perhaps most importantly, our planned refinancing and expansion of our term loan all without the requirement of further equity.

為了呼應鮑勃的評論，我們仍然對透過現有現金、現金產生、持續的成本削減計劃、GAC 合約的潛在預付款以及也許最重要的是我們計劃的再融資和定期貸款擴張來滿足資本支出需求的能力充滿信心。

With regard to this previously discussed refinancing, I am happy to confirm that we have appointed advisors to execute this transaction and our initial conversations with potential lenders support our confidence into entering into a new agreement with enhanced economics within the next few months.

關於先前討論的再融資，我很高興地確認，我們已經任命了顧問來執行這項交易，並且我們與潛在貸方的初步對話支持了我們在未來幾個月內達成一項具有增強經濟效益的新協議的信心。

Further, we expect to gain even greater flexibility with an expansion of the facilities supported by our current low debt position and improved and highly attractive future cash flow profile.

此外，我們預計透過擴大我們目前的低債務狀況和改善且極具吸引力的未來現金流狀況所支持的設施，獲得更大的靈活性。

With that, I will turn things back to Bob.

有了這個，我會把事情轉回給鮑伯。

Thanks, Stacia. The first quarter marked a period of steady progress on all fronts. The sustainable improvements in our financial profile and overall profitability are evident, and I remain confident in our path business being cash flow positive in 2024, driven by our portfolio improvements and our ongoing cost reduction initiatives.

謝謝，斯塔西亞。一季度是各方面穩步推進的時期。我們的財務狀況和整體獲利能力的可持續改善是顯而易見的，在我們的投資組合改進和持續的成本削減舉措的推動下，我仍然對我們的道路業務在 2024 年實現正現金流充滿信心。

Our focus is increasingly shifting towards executing energy GAC expansion at Red River and our ongoing transformation to an environmental technology company. We are extremely proud of our ability to enter into our first GAC contract and look forward to providing further updates on additional contract progress as it occurs.

我們的重點越來越多地轉向在紅河執行能源 GAC 擴張以及我們不斷向環境技術公司轉型。我們對能夠簽訂第一份 GAC 合約感到非常自豪，並期待在其他合約進度時提供進一步的更新。

I'd like to conclude by emphasizing our four key focus areas for the year ahead.

最後，我想強調我們未來一年的四個關鍵重點領域。

First, we remain focused on maximizing the value of our foundational PAC business. We've made incredible progress on this front and have transformed the business to a cash flow contributor.

首先，我們仍然專注於最大化我們基礎 PAC 業務的價值。我們在這方面取得了令人難以置信的進展，並將業務轉變為現金流貢獻者。

As we exit the last of the remaining loss-making contracts, we will focus on entering into additional higher value markets like soil and groundwater remediation and municipal water by enhancing our product mix, we aim to achieve a higher prices and in doing so, further improve the quality and financial contribution of our PAC business.

當我們退出最後一份剩餘的虧損合約時，我們將透過加強我們的產品組合，專注於進入其他更高價值的市場，例如土壤和地下水修復以及市政供水，我們的目標是實現更高的價格，並在此過程中進一步提高我們 PAC 業務的品質和財務貢獻。

Second, we remain focused on winning further GAC customers and contracts. We are very proud of reaching a strategic milestone with our first contract. We look forward to delivering continued execution on this front.

其次，我們仍然專注於贏得更多廣汽客戶和合約。我們對第一份合約達到了戰略里程碑感到非常自豪。我們期待在這方面繼續執行。

The market is strong and getting stronger by the day, and we remain in a prime position to help companies meet the tighter regulatory regime here in the US and globally.

市場強勁且日益強勁，我們仍處於幫助企業滿足美國和全球更嚴格監管制度的首要地位。

Third, we look forward to concluding the commissioning at carbon this quarter by utilizing Arq's technology for recycling bituminous coal waste, we are able to offer customers a highly differentiated solution and a fully vertically integrated supply chain that leads to differentiated cost and environmental advantages versus conventional products and methods.

第三，我們期待在本季完成碳的調試，透過利用Arq 的煙煤廢料回收技術，我們能夠為客戶提供高度差異化的解決方案和完全垂直整合的供應鏈，從而與傳統方式相比具有差異化的成本和環境優勢產品和方法。

And fourth, we remain keenly focused on successfully commissioning our Red River GAC facility later this year. With our first contract in place and numerous active discussions for the remaining capacity, we remain well positioned to complete the transformation of our business to an environmental technology company. As I have said on previous quarterly calls, it is all about execution.

第四，我們仍然熱衷於在今年稍後成功調試我們的紅河 GAC 工廠。隨著我們的第一份合約的到位以及對剩餘產能的多次積極討論，我們仍然處於有利地位，可以完成我們的業務向環境技術公司的轉型。正如我在之前的季度電話會議上所說，一切都與執行有關。

It would be remiss of me to conclude without acknowledging the ongoing hard work of all of our employees who are committed to making are the safest, lowest cost and most profitable company in our industry. Our operational team continues to deliver innovative ways to make our PAC business more profitable while maintaining the rigorous high quality standards that have made us a trusted partner for all our customers.

如果我不承認我們所有致力於打造行業中最安全、成本最低和利潤最高的公司的員工的持續辛勤工作，我就得出這樣的結論是我的失職。我們的營運團隊不斷提供創新方法，使我們的 PAC 業務利潤更高，同時保持嚴格的高品質標準，使我們成為所有客戶值得信賴的合作夥伴。

In closing, I am proud of all that our team has and continues to accomplish, while pleased I am fire far from satisfied. I remain confident that the best remains ahead of us. We look forward to providing you with further updates as we have them with that I will turn the call back to our operator to move us to Q&A.

最後，我為我們團隊已經取得的並將繼續取得的成就感到自豪，同時也很高興我還遠遠不夠滿意。我仍然相信，最好的一切就在我們前面。我們期待為您提供進一步的更新，因為我們已經掌握了這些信息，我會將電話轉回給我們的接線員，讓我們進入問答環節。

Thank you. (Operator Instructions)

謝謝。（操作員說明）

Gerry Sweeney, Roth Capital. Please go ahead.

格里·斯威​​尼，羅斯資本。請繼續。

Good morning, Bob and Stacia. Thanks for taking my call.

早安，鮑伯和斯塔西亞。感謝您接聽我的電話。

Happy to do it, Gerry.

很高興這樣做，格里。

Rather, I wonder obviously you have a contract that you announced, but I wanted to see if you could maybe discuss the market, what's going on out there?

相反，我顯然想知道你已經宣布了一份合同，但我想看看你是否可以討論市場，那裡發生了什麼？

Sales initiatives, obviously key facts regulations coming down the pike. Other people must be seeing this GAC deficit coming. Just curious as to how many people are talking to the funnel and the just maybe even the tone and tenor, people looking for the contracts?

銷售舉措，顯然是關鍵事實法規即將出爐。其他人肯定已經看到了 GAC 赤字的到來。只是好奇有多少人正在與頻道交談，甚至可能是尋找合約的人的語氣和基調？

Sure. As we've spoken in the past that the market for activated carbon in general, not just granular is very opaque. And so one of the things we set out to do early on was we identified over 100 potential lead adopters for our granular products and we and they were across a wide variety of industries.

當然。正如我們過去所說，活性碳市場（不僅僅是顆粒活性碳）總體上非常不透明。因此，我們早期要做的事情之一就是為我們的顆粒產品確定了 100 多個潛在的主要採用者，我們和他們來自各個行業。

And so what we did is we went out and marketed to them, brought up our technical specifications, brought them samples and that's in essence what we did in terms of our increased R&D expense and that helped us form an even better view of market and market demand.

因此，我們所做的就是出去向他們推銷，提出我們的技術規格，為他們帶來樣品，這實質上是我們在增加研發費用方面所做的事情，這幫助我們對市場和市場形成了更好的看法要求。

The market is as we've mentioned before is under supply demand was continuing to grow even before the PFAS regulations were promulgated. I think the best indication of demand is that we were able to contract approximately 20% of our future granular production, six to eight months in advance of beginning that production and that we are in very active and final stages of negotiations on several other contracts. So hopefully that provides the color you were looking for.

正如我們之前提到的，市場供應不足，甚至在 PFAS 法規頒布之前需求就持續成長。我認為需求的最佳指示是，我們能夠在開始生產前六到八個月簽訂約 20% 的未來顆粒生產合同，並且我們正處於就其他幾項合同進行非常積極的最後階段的談判。所以希望這能提供您正在尋找的顏色。

Yeah, and also just speaking of the contract of 5 million pounds reading your press release on that, it sounds as though that's actually with a maybe an environmental service provider, not necessarily a water utility and you discussed looking for different end markets, it's not necessarily selling entirely to the water utilities. I'm assuming I read that correctly on the environmental service provider, is that actually a better pricing opportunity then the water utility side?

是的，而且只是談到 500 萬英鎊的合同，閱讀您的新聞稿，聽起來好像這實際上是與環境服務提供商，不一定是自來水公司，並且您討論過尋找不同的終端市場，這不是必須完全出售給自來水公司。我假設我對環境服務提供者的理解正確，這實際上是比自來水公司更好的定價機會嗎？

So I think that one, we don't comment on the specifics of individual contracts, but you are correct that it is not a municipal water utility. We view municipal water utilities as a stable. Everyone knows that's where the market is and that there's going to be substantially increased needs in terms of demand to meet the upcoming PFAS regulations.

所以我認為，我們不會評論個人合約的具體細節，但你是對的，它不是市政自來水公司。我們將市政自來水公司視為穩定的。每個人都知道這就是市場所在，並且滿足即將出台的 PFAS 法規的需求將會大幅增加。

But there are a wide variety of other users of granular activated carbon at what we consider even higher pricing and higher margin than what the water utility market is going to be.

但顆粒活性碳還有各種其他的用戶，我們認為其定價和利潤甚至比水務市場更高。

I would suspect that environmental side, that is probably front center and people want deal with PFAS, whether it's come in leachate from landfills or industrial sites.

我懷疑環境方面，這可能是最重要的，人們想要處理 PFAS，無論它是來自垃圾掩埋場還是工業場地的滲濾液。

I would imagine that would, as you were saying that probably significantly better pricing opportunities, there is point for water utility market?

我想，正如您所說，可能會有更好的定價機會，水務市場還有意義嗎？

I wouldn't say the water utility market is boring because it's certainly a core component of the both the powdered business and the granular activated carbon business but as you correctly point out, there are a wide variety of uses.

我不會說水務市場很無聊，因為它確實是粉狀活性碳業務和顆粒活性碳業務的核心組成部分，但正如您正確指出的那樣，它有多種用途。

It's not just eliminating PFAS for municipal water treatment facilities. It also relates to groundwater soil contamination, preventing you know, groundwater from that is contaminated trapping those contaminants before they leak out of the soil and into the drinking water or into the creeks and streams and rivers of the various communities.

這不僅僅是消除市政水處理設施中的 PFAS。它也與地下水土壤污染有關，防止您知道，受到污染的地下水在這些污染物從土壤中洩漏到飲用水或各個社區的小溪、溪流和河流之前將其捕獲。

There's also biogas, biomethane wide variety of applications. And again, that's what makes the granular business so attractive. It's been turbocharged by the and will be turbocharged by the EPA PFAS regulations. But that's far from the only component of the increasing demand for granular activated carbon.

還有沼氣、生物甲烷的廣泛應用。這也是為什麼細粒度業務如此有吸引力的原因。它已經過並且將按照 EPA PFAS 法規進行渦輪增壓。但這遠不是顆粒活性碳需求不斷增長的唯一因素。

Got it. And then switching gears to the PAC side, obviously, multiple quarters of price expansion. You even alluded to in your in your remarks that there are a couple of lower price, lower end contracts, total roll-off. Curious as to how much more opportunity on pricing there is for the PAC side?

知道了。然後轉向 PAC 方面，顯然是多個季度的價格擴張。您甚至在演講中提到有一些較低的價格、較低端的合約、全面的延期。好奇 PAC 方面還有多少定價機會？

At some point, the pace of price increases has to abate. You can't maintain double-digit price increases forever. I wish we could, but it's certainly not realistic, but it's really a testament to the quality of our business development team, how they've been able to repackage those former loss-making contracts and get the average selling price increase.

在某些時候，價格上漲的步伐必須放緩。你不可能永遠保持兩位數的價格上漲。我希望我們可以，但這當然不現實，但這確實證明了我們業務開發團隊的質量，以及他們如何能夠重新包裝那些以前虧損的合約並提高平均售價。

But one component of the price increase is not just better relationship management, but it's also penetrating new markets such as there still is a usage per PAC and groundwater remediation soil remediation. And we've been able to tap these attractive new markets which have higher average selling price than the traditional coal-fired power plant scrubbing those emissions.

但價格上漲的一個組成部分不僅是更好的關係管理，而且還滲透到新市場，例如每個 PAC 和地下水修復土壤修復仍然有使用量。我們已經能夠開拓這些有吸引力的新市場，這些市場的平均售價高於消除這些排放的傳統燃煤電廠。

So it's a combination of factors. It's improving the price points on our existing power generation business as well as the expansion into new markets, which carry higher prices.

所以這是多種因素的結合。它提高了我們現有發電業務的價格點，並擴展到價格更高的新市場。

Just curious on the PAC groundwater remediation opportunity. Is that defense-related or is that just other opportunities?

只是對 PAC 地下水修復機會感到好奇。這是與防守有關還是只是其他機會？

Yes, other opportunities, just removing dioxins and furans things like that other than PFAS run the existing groundwater or excuse me in soil.

是的，還有其他機會，只是去除二噁英和呋喃之類的東西，而不是 PFAS 運行現有的地下水或土壤中。

Got it. Thanks. Final question for me. Phase two, obviously, the contract that you just announced certainly validates what's going on with Phase one at Red River, what would be sort of the calculus in terms of when you pull the trigger?

知道了。謝謝。對我來說最後一個問題。顯然，第二階段，你剛剛宣布的合約肯定驗證了紅河第一階段的情況，當你扣動扳機時，會是什麼樣的計算？

I'm assuming when, maybe I should say if you pull the trigger, what would the calculus and sort of gait speed to make that final decision?

我假設什麼時候，也許我應該說，如果你扣動扳機，微積分和步態速度會是多少來做出最終決定？

Yeah, sure it's really a combination of factors. And this is a demand pull business opportunity, it's not something we would do or will not. We're not going to build it and specked. I think we need to be fully contracted or extremely close to selling out all of our existing 25 million pounds of expansion production, we need to have clear line of sight to being able to play contract and or confidence and being able to contract.

是的，這確實是多種因素綜合作用的結果。這是一個需求拉動的商機，這不是我們會做或不會做的事情。我們不會建造它並留下斑點。我認為我們需要完全簽訂合約或非常接近出售現有的所有 2500 萬英鎊的擴建產量，我們需要對能夠履行合約和/或信心以及能夠簽訂合約有清晰的認識。

The second line, we would also need to ensure we have adequate liquidity and capital. We certainly wouldn't want to jeopardize our success in transforming the foundational PAC business and the growth trajectory and the cash flows of the developing granular activated line.

第二條線，我們還需要確保我們有足夠的流動性和資本。我們當然不想危及我們在基礎 PAC 業務轉型方面的成功以及正在開發的細粒度激活產品線的成長軌跡和現金流。

If you think about it, one of my main goals in my roughly nine months at Arq has been to de-risk shareholders' investment while offering really a growth opportunity through the expansion into granular. Hence, our laser focus on recontacting our granular production and transforming the PAC business.

如果你想一想，我在 Arq 大約九個月的主要目標之一就是降低股東投資的風險，同時透過精細化擴張提供真正的成長機會。因此，我們的重點是重新聯繫我們的顆粒生產並轉變 PAC 業務。

What all that translates into is we're not going to go out and do some Daredevil stone to expand. We're going to continue to be prudent in terms of how we allocate capital and we grow the business.

這意味著我們不會出去製作一些夜魔石來擴張。我們將繼續在如何分配資本和發展業務方面保持謹慎。

Understood. I appreciate it, that's it for me. Thank you.

明白了。我很感激，這對我來說就是這樣。謝謝。

Great. Thanks, Gerry.

偉大的。謝謝，格里。

Marc Silverberg, ICR. For additional questions and comments.

馬克·西爾弗伯格，ICR。如有其他問題和意見。

Thank you, Bob. I think we are going to turn to a few questions that we received from investors overnight and earlier this morning and so first and, can you please add a bit more detail on the CapEx change that you disclosed and with the earnings last night and related to that, and what would you say is the risk of a further increase to expected spending for Red River Phase one?

謝謝你，鮑伯。我想我們將討論隔夜和今天早上早些時候從投資者那裡收到的幾個問題，所以首先，您能否補充一下您披露的資本支出變化以及昨晚的收益以及相關的更多細節？認為紅河第一期的預期支出進一步增加的風險是什麼？

I'm sure the CapEx creep is fairly simple. The number of case times and pilings were underestimated by approximately 300%, the additional construction cost plus the increased steel and cement and the added contingency resulted in the new guidance we just gave.

我確信資本支出的成長相當簡單。案例次數和打樁數量被低估了大約 300%，額外的建築成本加上增加的鋼材和水泥以及增加的應急費用導致了我們剛剛給出的新指導。

As it relates to further risk, I'll reiterate what I mentioned in my prepared remarks, our team has been working and continues to work assiduously to identify cost savings and any other ways we can reduce some of the overall project cost and the cost increase.

由於它涉及進一步的風險，我將重申我在準備好的發言中提到的內容，我們的團隊一直在並將繼續努力工作，以確定成本節約以及我們可以減少部分總體項目成本和成本增加的任何其他方法。

And we're also making every effort to ensure that we don't have any additional upward changes in our spending plans. Those factors plus the new and the new contingency that we factored into our guidance range. It should mean that I won't be on this call next quarter announcing another increase in CapEx.

我們也在盡一切努力確保我們的支出計劃不會有任何額外的向上變化。這些因素加上我們納入指導範圍的新的和新的意外事件。這應該意味著我不會在下個季度參加這次電話會議宣布再次增加資本支出。

I have to say I'd just like having to relay this type of information as much as you like hearing it from that being said, this is still an outstanding investment, even with the increased cost we foresee a three year or less payback.

我必須說，我只是想盡可能傳達此類訊息，這仍然是一項出色的投資，即使成本增加，我們預計三年或更短的投資回報。

We have signed our first contract for approximately 20% of our GAC capabilities, six to eight months in advance of initial production.

我們已經在初始生產前六到八個月簽署了第一份合同，涉及 GAC 約 20% 的產能。

We have clear line of sight and visibility to signing additional contracts. So I see things still feel very, very good about this investment.

我們對簽署額外合約擁有清晰的視野和可見性。所以我認為這項投資的感覺仍然非常非常好。

Great. Thanks for that, Bob. Second question we got was related to the refinancing, you indicated that the refinancing process is underway and given the scale of forecasted CapEx for 2024 taking into account cash generation expected in your legacy PAC business, how much debt do you think the balance sheet can handle and what is the maximum that you will be prepared to add in terms of potential capacity?

偉大的。謝謝你，鮑伯。我們收到的第二個問題與再融資有關，您表示再融資流程正在進行中，考慮到2024 年預計資本支出的規模，考慮到您遺留的PAC 業務預計產生的現金，您認為資產負債表可以處理多少債務您準備增加的最大潛在容量是多少？

Based on our current business and factoring in projected future cash flow and the value of our assets because I think we have an under-levered balance sheet and you look at the replacement cost of our plants is well over $500 million.

根據我們目前的業務，並考慮到預計的未來現金流和我們的資產價值，因為我認為我們的資產負債表槓桿不足，而且您會發現我們工廠的重置成本遠遠超過 5 億美元。

What that translates to is we want to take sufficient incremental debt to really ensure the completion of the project on time and to help us maintain and ensure we have adequate overall liquidity, any incremental debt that we take. And we would still have a very low EBITDA debt multiple based on our 2025 EBITDA.

這意味著我們希望承擔足夠的增量債務，以真正確保專案按時完成，並幫助我們維持和確保我們擁有足夠的整體流動性，以及我們承擔的任何增量債務。根據 2025 年 EBITDA 計算，我們的 EBITDA 債務倍數仍然非常低。

Appreciate that, Bob. Another question we received was regarding the GAC contract that was announced yesterday. And I know, Gerry, I've asked questions regarding counterparty there. Is there any additional information you could provide in terms of and the terms on the contract and second and related to that, maybe your confidence in contracting out the remaining capacity for Phase one by the end of the year as you previously target?

很欣賞這一點，鮑伯。我們收到的另一個問題是關於昨天宣布的 GAC 合約。我知道，格里，我已經問過有關那裡的交易對手的問題。您是否可以在合約條款和相關條款方面提供任何其他信息，也許您有信心按照您之前的目標在年底前承包第一階段的剩餘產能？

Sure. As I mentioned, Gerry, we don't and never will comment on the specifics of individual contracts as it relates to pricing. I will say the pricing is attractive and it's a multiple of our average PAC pricing. So that's consistent with our business plan or communications.

當然。正如我所提到的，格里，我們不會也永遠不會評論個人合約的具體細節，因為它與定價有關。我想說這個定價很有吸引力，是我們平均 PAC 定價的數倍。這與我們的商業計劃或溝通是一致的。

And I will say that the pricing on the contract offers excellent value and returns to Arq as well as our customer in terms of tons of confidence based on our current contract negotiations and the fact that we already have a signed contract for 20% of our future granular activated carbon capacity six to eight months in advance.

我想說的是，基於我們目前的合約談判以及我們已經簽署了 20% 未來合約的事實，合約定價為 Arq 和我們的客戶提供了卓越的價值和回報，讓我們充滿信心。至八個月。

I was and I continue to remain very, very confident in our ability the contract, the remaining capacity prior to production.

我過去並且現在仍然對我們履行合約的能力、生產前的剩餘產能非常有信心。

Thanks, Bob. We had one more here that we received overnight regarding volumes. So volumes were down year over year for the first quarter of the year. Can you provide any color on how volumes are perhaps shaping up thus far for the second quarter? Thank you.

謝謝，鮑伯。我們在這裡又收到了一夜之間收到的關於數量的資訊。因此，今年第一季的銷量較去年同期下降。您能否提供有關第二季度迄今為止銷量可能如何變化的任何資訊？謝謝。

Sure. The first quarter was certainly tough from a volume standpoint, but we've seen a nice rebound in April, May were what nine days into it has started out on a nice trajectory as well. And what we're really seeing as it relates to volume is the fruits of our efforts to further diversify our PAC business in markets other than coal-fired power plants.

當然。從銷售的角度來看，第一季確實很艱難，但我們在四月和五月看到了良好的反彈，九天後也開始走上良好的軌跡。我們真正看到的與銷售相關的是我們努力在燃煤電廠以外的市場進一步實現 PAC 業務多元化的成果。

Thank you. We'll now turn back to Bob Rasmus for any additional or closing comments.

謝謝。我們現在將轉向鮑勃·拉斯穆斯（Bob Rasmus）尋求任何補充或結束評論。

Thank you, Jamie. In summary, we're pleased with where we are, but we're certainly not pricing is there's plenty of opportunity ahead for and I look forward to providing further updates on our second quarter call or as events dictate. Thank you for your interest in Arq, and we look forward to speaking again soon.

謝謝你，傑米。總而言之，我們對目前的狀況感到滿意，但我們肯定不會定價，因為前方有很多機會，我期待在第二季度電話會議或事件發生時提供進一步的更新。感謝您對 Arq 的興趣，我們期待很快再次交談。

Thank you. Once again, ladies and gentlemen, that will conclude today's call and thank you for your participation. You may disconnect at this time.

謝謝。女士們、先生們，今天的電話會議到此結束，感謝你們的參與。此時您可以斷開連線。