 Cash distributions from Tinuum Group total 15.4 million in the quarterGREENWOOD VILLAGE, Colo., Aug. 10, 2020 GLOBE NEWSWIRE -- Advanced Emissions Solutions, Inc. NASDAQ: ADES the Company or ADES today filed its Quarterly Report on Form 10-Q and reported financial results for the second quarter ended June 30, 2020, including information about its equity investments in Tinuum Group, LLC Tinuum Group and Tinuum Services, LLC Tinuum Services collectively Tinuum, of which ADES owns 42.5 and 50, respectively.Tinuum Refined Coal RC Highlights Tinuum distributions to ADES for the second quarter were 15.4 million compared to 18.6 million in the prior year, a decrease of 17 Royalty earnings from Tinuum Group in the second quarter were 3.3 million compared to 4.2 million in the prior year, a decrease of 21 RC Segment operating income in the second quarter was 10.8 million compared to 24.6 million in the prior year RC Segment Adjusted EBITDA in the second quarter was 18.1 million compared to 22.6 million in the prior year Based on 20 invested RC facilities as of June 30, 2020, expected future net RC cash flows to ADES are projected to be between 100 million and 125 million through year end 2021 During July 2020, Tinuum completed two additional RC transactions, potentially adding 5.0 million - 7.0 million in cash flows to ADES through year end 2021Power Generation and Industrials PGI Highlights Recognized second quarter segment revenue of 7.1 million, compared to 11.0 million in the prior year During the quarter, the Company recorded a pre-tax, non-cash impairment charge of which approximately 23.2 million are related to long-lived assets in the PGI segment Segment operating loss in the second quarter was 25.7 million most significantly due to the impairment charge, compared to an operating loss of 3.9 million in the prior year Segment Adjusted EBITDA loss in the second quarter was 1.0 million, compared to a segment Adjusted EBITDA loss of 3.1 million in the prior yearADES Consolidated Highlights Consolidated revenue was 11.5 million during the second quarter compared to 15.6 million in the prior year During the quarter, the Company recorded a pre-tax, non-cash impairment charge of approximately 26.1 million related to long-lived assets Consolidated net loss was 23.8 million for the second quarter, most significantly driven by the aforementioned impairment charge compared to a net profit of 8.1 million in 2019; pretax loss was 23.7 million in the second quarter compared to a pretax profit of 14.7 million in 2019 Consolidated Adjusted EBITDA was 12.3 million, compared to 15.1 million in the prior year Made quarterly principal payment of 6.0 million on the Companys term loan, and reduced the principal balance to 28.0 million Ended the second quarter 2020 with a cash balance, inclusive of restricted cash, of 21.7 million, an increase of 4.7 million since December 31, 2019Our second quarter results were expectedly challenged by the continued pressure in coal-fired power generation which was intensified by the economic disruption resulting from the ongoing pandemic, which were significant factors in the impairment charge recorded in the second quarter, said Greg Marken, Interim CEO of ADES. We continue to prioritize the health and safety of our work teams, customers and communities. We remain focused on cash conservation, which helped us increase our liquidity position during the quarter.Marken continued, Looking to the back half of 2020, we expect to maintain high renewal rates with our current activated carbon customers and expect improved performance from our PGI segment. We have witnessed improved demand after the end of the second quarter due to a combination of increased power-generation demand, higher natural gas prices and impacts from the economy slowly reopening. Despite challenging market conditions experienced during the last twelve months, we expect to significantly increase and diversify our addressable markets and utilization of our production capabilities as we continue to explore more strategic partnerships and solutions that leverage the low-cost nature of our best-in-class asset. The market is structurally imbalanced and we are seeing signs of consolidation, and we are poised to emerge in a position to strongly compete in the market.Marken concluded, Also, as previously announced, Tinuum Group identified tax-equity investors for two additional Refined Coal transactions during the month of July; one new facility and one sale of 49 of retained interest. The incremental cash flows from these two transactions are not included in our quarter-end forecasted net RC cash flows through the end of 2021, though these facilities are smaller in nature and largely serve to cover existing Tinuum operating costs and offset risk related to coal-fired power generation rather than deliver material increases to expected future net RC cash flows. Nonetheless, these two announcements are important closures to protect our liquidity position.Second Quarter and First Half 2020 ResultsSecond quarter revenues and costs of revenues were 11.5 million and 7.4 million, respectively, compared with 15.6 million and 12.3 million in the second quarter of 2019. First half revenues and costs of revenues were 23.7 million and 18.9 million, respectively, compared with 34.9 million and 26.4 million in the first half of 2019. The decreases in revenues were primarily the result of lower consumables revenue driven by lower volumes that were negatively impacted by low coal-fired power dispatch and overall decreases in power-generation as well as lower royalty income.Second quarter royalty earnings from Tinuum Group were 3.3 million, compared to 4.2 million for the second quarter of 2019. First half royalty earnings from Tinuum Group were 6.4 million, compared to 8.4 million for the first half of 2019. Royalty income is based upon a percentage of the per-ton, pre-tax margin, inclusive of impacts related to depreciation expense and other allocable expenses. The lower royalty earnings in the second quarter and first half were due to increased depreciation and lower rent payments to Tinuum which also impacted the Companys equity earnings. Royalty earnings are expected to be negatively impacted due to these changes in both 2020 and 2021.Second quarter other operating expenses were 35.1 million compared to 7.5 million in the second quarter of 2019. First half other operating expenses were 44.5 million compared to 16.3 million in 2019. The increases were primarily driven by non-cash impairment charges taken on certain plant-and mine-related long-lived assets of 26.1 million, severance charges related to changes in executive leadership positions of 1.4 million and sequestration expenses related to the COVID pandemic of 0.4 million. In assessing impairment, the Company considered factors such as the significant decline in both PGIs trailing twelve months and current and future years forecasted revenues, which is largely due to the significant drop in coal-fired power dispatch that began in 2019 and is anticipated to continue in the near term largely due to the current and forecasted historical low prices of alternative power generation sources such as natural gas.Second quarter earnings from equity method investments were 8.2 million, compared to 20.9 million for the second quarter of 2019. First half earnings from equity method investments were 16.4 million, compared to 42.6 million for the first half of 2019. The decreases in earnings from equity method investments during the second quarter and first half were primarily due to lower earnings from Tinuum Group resulting from higher depreciation on all Tinuum Group RC facilities as a result of a reduction in their estimated useful lives during the third quarter of 2019 and due to Tinuum Group restructuring RC facility leases with its largest customer, which decreased net lease payments and equity earnings beginning in the three months ended September 30, 2019. The declines were also a result of point-in-time revenue recognition of certain RC contracts by Tinuum Group in both the second quarter and first half of 2019.Second quarter interest expense was 1.0 million, compared to 2.0 million in the second quarter of 2019. First half interest expense was 2.2 million compared to 4.1 million in 2019. The decreases in interest expense were driven by a lower principal amount outstanding on the term loan used to fund the Carbon Solutions acquisition.Second quarter income tax expense was 0.1 million, compared to 6.6 million in the second quarter of 2019. First half income tax expense was 0.5 million compared to 8.3 million in 2019.Net loss was 23.8 million for the second quarter compared to net profit of 8.1 million in 2019. First half net loss was 25.7 million compared to first half net income of 22.5 million in 2019. The decreases in net income were driven by the aforementioned impairment charge of 26.1 million as well as lower earnings from equity method investments.Consolidated adjusted EBITDA was 12.3 million for the second quarter compared to 15.1 million in 2019. First half consolidated adjusted EBITDA was 23.1 million compared to 33.1 million in 2019. The decreases in consolidated adjusted EBITDA were driven by lower earnings from equity method investments, partially offset by higher depreciation and amortization expense.Long-Term BorrowingsAs of June 30, 2020, the outstanding principal balance of the senior term loan was 28.0 million. The senior term loan is subject to customary covenants as well as quarterly principal payments of 6.0 million that began on March 1, 2019. 