Midwest Energy Emissions (MEEC)

Richard MacPherson President and CEO
Rich Gross CFO
Steven Ralston Zacks
Call transcript
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Good afternoon, ladies and gentlemen, thank you for standing by. Welcome to the Midwest Energy Emissions Corp.

First Quarter 2018 Earnings Conference Call.

During today’s presentation, all parties will be in a listen-only mode.

Following the presentation, the conference will be opened for questions. market is press today, call release after close conference and XX, was This the earnings the accompanying of Instructions] being May recorded XXXX, issued [Operator today. this conference MEXC’s On our Chief Officer, Gross. Rich and Richard MacPherson; Financial President call and CEO, is today

started, read Federal within statements Corp. Before Energy conference of about the This laws a the forward-looking regarding Emissions forward-looking we get may historical contain information, disclaimer statements. Securities Midwest call in I will addition to meaning

plans, goals, than statements strategies, about of statements and underlying other events include and performance that statements Forward-looking objectives, historical future assumptions different are facts.

the general change any electric the significant personnel, of in management the experience the to capital are statements. of will, coal forward-looking words such units, changes and These economic loss might regarding customer Company. those fluctuations actual cause conditions on demand, in and management’s in from statements statements means forward-looking gain significant that and may are as other intend, a of Matters but Investors of major plant statements that regions in our identified loss of are results disruption operations expressions, that customer, exclusive power of involve availability the statements expect, words litigation among to uncertainty cautioned of are could materials, include, subject in these based materially from uncertainties where materially plan, a to customer differ our Forward-looking demands, in differ made. change significant actual factors, by disruption expectations the similar and not to regulations, changes and a factor current in generally forward-looking and anticipate, the supply environmental are or identifying supply circumstances. capacity and power statements using the results believe, any utilities major risks key of cause

materially only publicly or as future information or best of date Further concerning in information The conference forward-looking can call Company’s the affect Company’s periodic statements to the not time, to reflect I this statements to found could with CEO. and Richard, At forward-looking In circumstances conference call. turn Richard to performance any the that contained in does the contains call that Company be arise this floor update conference Exchange reflects this of revise time-sensitive call. this and information financial that related filings of obligation is presentation addition, the after the like date analysis events, management’s to this Securities any would issues undertake over Commission. the President MacPherson, yours.

Richard MacPherson

it’s expected but be financial of to the symbolic our a business the our to with the Corporation, we entered Thank beginning XXXX, extremely you, use from into entails of contract joining and technology, an and of in strength The of positive an only network reaffirming materially highlighted not United Europe Cabot our in our is and product by expected as which technology, expansion exclusive with immense as tailwind This multinational for meaningful of States. we a proven, Europe. well extensive two-part license to the In The you the footprint today. established player in both coal our Cabot March throughout line Cabot thank Corporation in the system, arrangement and us advancements made Asia. scrubber with to was of mercury Europe everyone sales proprietary capture are industry additions XXXX additive outside provide perspective. operator,

large now another install some be in of in detail providing our gain technology boiler low one traction with cost, using mercury North We I’ll of emissions proprietary America, effectively SEA customer of a compliance America Cabot their continue equipment technology. power The of recent our by Corporation We for which as consists like to as help piece previously that and in with announced would Sorbent call. as Canadian ongoing with SEA Enhancing the special short captures mercury SEA install the blend evidenced order licensing supply an Alberta, in our to more and at further, low Energy Europe fired our patented to capture mercury achieve plants materials. also plants our for I brief in overview Midwest from give those enables story. Canada. technology to of of and each across well. emissions for each of cost. later coal at new who is as and partnership a North our SEA agreements This technology, our you Additive these well before emissions maybe maintain a we from the But our technology Company of any sorbent plants going to

mercury edge. to technology the the provide Another of highly-quality in SEA that important component is place technology-driven competitive by in gives control team in a this Having a conjunction the team experts. us addition in technical well-tenured, consulting solution leveraging our with significant best services we market

with have Dakota. Center Energy We relationship Research key the Environment very a North out of

Europe technology All a of consists Asia. portfolio, and robust a of of protected patent which patents, and the Canada, issued over by U.S., our most large covering pending XX is of part

team engineering Center, of in time and over several the intellectual well bedrock XXX-person core Environment in and invested on Pavlish, has is now have as we Research the to $XX million believe in from the invest which Our We the the future years its over team. be responsible scientific facilities Company. oldest biggest and of individuals, technology, company a coal one research country, to and the significant John value who The of resources full for continue joined invested strong property and over for development has Energy technology specifically what as XX is technologies primarily come the our basis. since have a our

royalty, most to-date, resource it part These license in To purchase were in year. the helped spent get we that year legal well In IP with position ensure both abroad. package. IP we fact, licensing us to were the patents contracts best great fees, revenue significantly and over last be over state all this securely deal of to here and can secure patents combining we from own to technology a confidently just to now a invested tight paid. they agreements, forward large and new at this part resources of in generate space fees would actually we have past pending when the year home has where mercury had the through the vetted, million this funds this $X that in patents available which and of in acquiring and EERC able recent us move We extremely and

I’d the review our Now, before over call going few key the initiatives in and and of like Rich a review to quarter to handing forward. the progress to financials, first

We’ve to significantly can to goals and pressures any experience a else been approach slower or anyone for number immensely shutter to in throughout a performance. market in have said, major their boiler things. thought, number mercury and companies use would technologies previously America U.S. compliance our and to throughout compliance we capture. of That the from peak get primarily the units MATS had the among our into of first a foremost, compliance the also costs has year, industry maintain in of late initiatives chemical of the other than believe one clients adoption first due this that technology-driven major of extra or There that the benefit accomplish quarter our EGUs are difficulties still stay challenge their units year. between the North So, pricing or to actual de-rating the last

focused the water. we’re X,XXX Europe as significant global throughout includes commence we’ve emissions eradicate we��re balance year. our as to a their very-focused compliance time market noted much to October a enter working coal by now treaty and XXXX, XXXX. it is geographic we both on these this air some such are Europe. we’ve for And Strategically, North with with to very them However, technologies expect America geographies expected in in substantial closely Europe’s the Minamata of fired coal beginning testing nations signed opportunity target for with standards very to acquired of Europe. And just become on expansion, newly fleet and and these to to in the now and introduce past, Convention EGUs. XXXX mercury from this XXX been

SEA be and European licensing scrubber will We license patented technologies. we with -- This April. Cabot which addressing market agreement in additive through recently our leverages model establishes a capital-light announced

reach global to see rapid, and opportunity represents global partner’s immense network Our a for massive widespread technology adoption. our sales

We’re moving Europe. throughout of number actively forward sites at a different already

ultimately in which technology our such cost ramping the We’re for starting and future up Cabot reduce excited EGUs with profits corporate our contribute offer to leader and growth, as partner solutions to long-term. meaningfully to increase a and over XXXX will

for of to further addition In several as Asia tangible. look they And to negotiation I updates other key forward similar elsewhere. become as stages global these markets we’re on and such as providing appropriate agreements this, in initiatives different in

emission and the today, technology, our Senior of is application that’s recognized Chief mercury widely control As speaker in our presented specializing and of efforts especially reduction featured expert of which reach part a MEC the international Krakow, our at mercury Workshop in experts at XX gathering the presented VP to mercury. Europe’s primary the Pavlish, broaden was a proprietary coal we Technical low-rank field with a John capture capture of coals, the Europe, into the Officer, in event, Poland source. MEXC’s

Corporation’s tomorrow. the the licensing In presenting will Cabot addition, be in Fessenden, he agreement Director, recently MEXC-Cabot Commercial jointly EU Jamie with announced

announced, XXXX the in the our previously having customer we’ve we under Canada several U.S. boilers expansion in was of first outside secured first As also have which contract

location. to in relationships multiple and province announce us at upto the order Canada. if EGUs Technology] across customer Alberta, we’re in that and develop the successful, [Star in Canada. power same we and this since both We’ve U.S. to plants another another Canadian with three worked an continue the from customer one secured Installation begun, already of additional operations XXXX at they pleased their [ph] Canadian projects provide April, We of that with this have

clear pleased for we’ve work they’re doing with So, it’s them. the that been

service, to workforce Business have our provide and community testament that strong support the positive Energy, provide clients, business we utilization supply our of Nexus enterprises Award one value diverse quarter, the and excellent and the we from Vistra chain. the is the another commitment which to a Small demonstrated small in to of As customers, received presented first

part we’ve So, first very well creation of active international as the Canada our IP both, side as been significant value and XXXX Europe the clearly, significant far with in thus in portfolio. on of progress

closing some will details can go I it Rich? and quarter he it Rich And questions particular up turn financial the call financial So, for with over before review, through Gross. the answers. the statements I CFO, and our to for open for up wrap

Rich Gross

Rick. Thanks,

As consulting Rick from earlier, nature we in ongoing recurring third, of demonstration product we and sources and supply and material an as services, SEA touched then typically and our on provide recognized sales, revenue generate three proprietary primary sorbent. sales, equipment

Adjusted the were three XXXX expenses, loss XX, of revenues first months I’ll to over loss XXXX. primarily for months XXXX, Total three Net $X.X compared of was and the revenue per million a back diluted first million the XX% cash of Rick. the as from ended quarter. we is million, in $X.X the million turn $X.X For first XXXX. of first On in operating year-ago share, quarter share associated in and and respectively. per our $X.X $X.X positive in year. This call product million diluted With ended and $X.XX the to million million the of quarter of in in Operating March of current EBITDA of XXXX sales. XXXX XXXX, quarter or XX, million, first XXXX, had in equivalents $X.X in compared of million XXXX was million $X.X $X.X compared $X.X the the was the of that, Cost compared was quarter $X.X loss this to quarter compared the quarter million net XXXX were $X.XX million decrease first cash to March during negative $X.X decrease December to loss of or and XXXX XX, XXXX. $X.X the same year-ago to quarter. March XX, revenue same in with

Richard MacPherson

today. the you, Thank on conclude And on us sharing call joining thoughts for stand thank with general we I’ll today. Rich. my all you where

huge of as I We Our in the opportunity Company some clearly is in today believe ago. a much even side. our than partner with recent sales. significantly stronger penetrating such actually place it’s to mention Europe, us, a markets spite international year the different reduction in large our target a not which global began by of in for position a represents

robust We the basis. I will opportunities expect among expect see into efforts global of some inherent that package and mercury in have we forward I these expand from a Company move we’ll the them of the to address that real next on that not-too-distant very others, over these the a provides IP airtight future, value some solution challenges as and with time. many come period

like So, open I for answers to at and I’d up time. could questions it this if operator


our the Certainly. Zacks. Steven you. first begin question-and-answer And Thank question will from We’ll ahead. Ralston [Operator come now with Please session. Instructions] go

Steven Ralston

which about as million revenue, new first not see sheet and revenues sheet monitored on quarter, I an I sale. the Was balance I equipment, of sales? is fourth going you $X.X when the had the but deferred end afternoon. the equipment of in in balance anticipate dollars rather to Good to didn’t deferred that for noticed install on you’re sorbent quarter the

Rich Gross

That customer that XXXX billing over to sales the quarter of for and dispute a with was between we end the XXXX. that over to sorbent was completed early prior the on carried solved a and had year agreement

those sorbent of recorded were dollars as in in the quarter revenue all So, first sales.

Steven Ralston

the so fully will deferred that? second that we do contract within in quarter, have installed expect it do a revenue you longer the On you or see think new take line, won’t EGU than to Canada,

Richard MacPherson

This is Rick.

that’s see believe Rich, I this what at different, second think, And you time. that if have I the me but completed anything we’ll in quarter. correct

Rich Gross

That believe the No. is plan. I

Steven Ralston

excellent. right, more? one the the for And but All for is EGU two right potential contract now, with

Richard MacPherson

two got That’s, on correct. we we’ve move the to we the to other Yes. to equipment on set make And results the They station. wanted us to accomplish once similar the up sure previous expect first one, units. that,

second of So, to the beginning could those think, I half. speak I would at the

Steven Ralston

Great. you Thank much. very

Richard MacPherson

you. Thank


conference And you you. I MacPherson, will Thank will to the conclude today. closing Mr. question-and-answer or additional turn any for our that session statements. for over back

Richard MacPherson

longer for and able different what Europe. Folks, areas us are quarter you company. what be our number term we investors, very We’ve a in the that of nicely joining has challenging been for thank much a the rebound especially you adjusted we’re for our especially with first results, key way thank much, as through and expecting to we from in work will doing very point

looking at our this of taking I’m we we’ve trying those reporting European are guys a global countries, next and go that efforts call, forward. earnings Thank got of Our week different actually being make on notice time you in in much to the the terms received, your underway. a today. ground to forward on now for well very expansion plants very of couple looking to as forward on And that expected


joining, Again, today’s conclude for disconnect. that will you may Thank conference. all and now you