Fuel Tech Inc (FTEK) Q3 2024 Earnings Call Highlights: Navigating Challenges with Strategic Growth

In This Article:

  • Consolidated Revenue: Decreased slightly to $7.9 million from $8 million in the prior year's third quarter.

  • FUEL CHEM Revenue: Increased to $4.6 million from $4.3 million in the third quarter of 2023.

  • APC Segment Revenue: Declined to $3.2 million from $3.7 million in the prior year's third quarter.

  • Consolidated Gross Margin: 43% of revenues, down from 45% in the prior year's third quarter.

  • APC Segment Gross Margin: Decreased to 35% from 40% in the prior year period.

  • FUEL CHEM Segment Gross Margin: Flat at 49% compared to last year.

  • SG&A Expenses: Increased to $3.2 million from $3 million in the prior year's third quarter.

  • Research and Development Expenses: Decreased by 30% to $361,000 from $513,000 in the prior year's third quarter.

  • Net Income: $80,000 or $0.00 per share, compared to $459,000 or $0.01 per share in the prior year period.

  • Adjusted EBITDA Loss: $35,000 compared to an adjusted EBITDA of $352,000 in the prior year period.

  • Cash and Cash Equivalents: $12.3 million as of September 30, 2024.

  • Short- and Long-term Investments: Totaling $19 million as of September 30, 2024.

  • Working Capital: $25.6 million or $0.83 per share.

  • Stockholders' Equity: $43.9 million or $1.42 per share.

  • Debt: No outstanding debt.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Fuel Tech Inc (NASDAQ:FTEK) returned to profitability in Q3 2024, driven by strong performance in the Chemical Technologies segment.

  • The company announced $2 million in new ATC orders and expects an additional $2 million to $4 million in orders by early 2025.

  • Fuel Tech Inc (NASDAQ:FTEK) ended the quarter with a strong financial position, holding over $31 million in cash, cash equivalents, and investments, with no debt.

  • The FUEL CHEM segment saw an 8% revenue increase year-over-year, with contributions from returning customers and a new coal-fired unit.

  • The Dissolved Gas Infusion (DGI) business initiative is progressing, with a demonstration agreement for an aquaculture application and discussions for further demonstrations in other markets.

Negative Points

  • Revenues in the APC segment declined due to customer-driven delays and timing of new project awards.

  • Consolidated revenues decreased slightly to $7.9 million from $8 million in the previous year's third quarter.

  • Gross margin for the APC segment decreased to 35% from 40% due to changes in product and project mix.

  • SG&A expenses increased to $3.2 million, reflecting higher employee-related expenditures.

  • The company reported an operating loss of $179,000 compared to operating income of $133,000 in the previous year's third quarter.