CORSICANA, TX, Nov. 14, 2022 (GLOBE NEWSWIRE) -- Midwest Energy Emissions Corp. (OTCQB: MEEC) ("ME2C Environmental" or the “Company”), a leading environmental technologies firm, today announced its financial results for the third quarter 2022. Third quarter 2022 revenue of $7.5M increased nearly 50% compared to $5.0M in the third quarter of 2021. This increase in revenues from the prior year period was primarily driven by increased sorbent product sales due to the increased supply demands in the coal-fired market as well as expansion of the Company’s customer base.
Total costs and expenses in the third quarter of 2022 were $6.9M compared to $5.2M in the year-ago quarter. The increase in total costs and expenses from the prior year period is primarily attributable to the increase in cost of sales due primarily to increased sales, offset by a decrease in interest expense.
The Company had net income of $569,000 for Third Quarter 2022, or $0.01 per basic and diluted share, compared to a net loss of $(207,000), or $(0.00) per basic and diluted share, for the prior year period.
Adjusted EBITDA in Third Quarter 2022 was a positive $1.2M compared to a positive $.7M in the third quarter of 2021, an increase of approximately $0.5M.
As of September 30, 2022, the Company had approximately $1.3M of cash on its balance sheet and working capital of $2.2M.
“The repositioning of our debt with our recently announced debt extension agreement that extends the maturity date of our entire unsecured and secured debt obligations for three years is foundational,” commented Richard MacPherson, Chief Executive Officer of ME2C Environmental. “In addition, the opportunity we negotiated to acquire stock from this lender and largest company shareholder at an appropriate time is a testament to collaborative approach taken by our financial partner.”
Continued MacPherson, “Significant continued growth in our supply business quarter over quarter and setting aside the maturity of our debt for the next three years was pivotal to achieving continued strength in our strategic corporate developments and new environmental technologies that are currently underway.
“Our growth in our core business is further reinforced from keen operational management and the effectiveness of our patented environmental technologies. The contract values of our current ‘business on hand’ is approximately $25M of annual recurring base business. We expect to finish this year on target with the projection indicated in early 2022.
“We have been able to fund the legal costs of the currently pending patent infringement lawsuit without outside financial sources to date. We look forward to enhancing the entire enterprise value of the Company to our shareholders should we prove successful in this undertaking.” concluded MacPherson.
Conference Call/Webcast Information
The ME2C management team will host an investor conference call and live webcast on November 14, at 4:30 PM Eastern Time. To participate, please use the following information:
Date: Monday, November 14, 2022
Time: 4:30 PM ET
International Dial-in: 1-416-764-8649
Conference Code: 41283431
Please dial in at least 10 minutes before the start of the call to ensure timely participation.
A playback of the call will be available through Wednesday, December 14, 2022. To listen, call 1-844-512-2921 within the United States or 1-412-317-6671 when calling internationally and enter replay pin number 41283431. The replay can also be viewed through the webinar webcast link above.
About ME2C® Environmental
ME2C Environmental is a leading environmental technologies company developing and delivering patented and proprietary solutions to the global power industry. ME2C’s leading-edge mercury emissions technologies and services have been shown to achieve emissions removal at a significantly lower cost and with less operational impact than currently used methods while maintaining and/or increasing power plant output and preserving the marketability of byproducts for beneficial use. ME2C Environmental is a trade name of Midwest Energy Emissions Corp. For more information, please visit http://www.me2cenvironmental.com/.
Use of Non-GAAP Financial Measures
To provide investors with additional information regarding our financial results, this press release includes references to Adjusted EBITDA, a Non-GAAP financial measure. We view Adjusted EBITDA as an operating performance measure and, as such, we believe that the GAAP financial measure most directly comparable to it is net income (loss). We define Adjusted EBITDA as net income adjusted for interest and financing fees, income taxes, depreciation, amortization, stock-based compensation, and other non-cash income and expenses. We believe that Adjusted EBITDA provides us an important measure of operating performance. Our use of Adjusted EBITDA has limitations as an analytical tool, and this measure should not be considered in isolation or as a substitute for an analysis of our results as reported under GAAP, as the excluded items may have significant effects on our operating results and financial condition. Additionally, our measure of Adjusted EBITDA may differ from other companies’ measure of Adjusted EBITDA. When evaluating our performance, Adjusted EBITDA should be considered with other financial performance measures, including various cash flow metrics, net income, and other GAAP results. In the future, we may disclose different non-GAAP financial measures in order to help our investors and others more meaningfully evaluate and compare our future results of operations to our previously reported results of operations.
Safe Harbor Statement
With the exception of historical information contained in this press release, content herein contains "forward-looking statements" that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995, which may include, without limitation, revenue guidance for 2022 and related projections and statements regarding our ability to meet such projections in the anticipated timeframe, if at all. Forward-looking statements are generally identified by using words such as "anticipate," "believe," "plan," "expect," "intend," "will," and similar expressions, but these words are not the exclusive means of identifying forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Investors are cautioned that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the statements made. Matters that may cause actual results to differ materially from those in the forward-looking statements include, among other factors, the gain or loss of a major customer, change in environmental regulations, disruption in supply of materials, capacity factor fluctuations of power plant operations and power demands, a significant change in general economic conditions in any of the regions where our customer utilities might experience significant changes in electric demand, a significant disruption in the supply of coal to our customer units, the loss of key management personnel, availability of capital and any major litigation regarding ME2C Environmental.
In addition to the foregoing, any statements with respect to revenue guidance, related projections and statements regarding our ability to meet such projections in the anticipated timeframe, represent management’s good faith estimates and expectations. Such guidance is based upon certain assumptions, including, but not limited to, that additional license agreements will be executed, new supply customers will be obtained and that certain current licensees of our patented technologies who are not current supply customers will transition to purchasing products from us in the future. Such assumptions may prove to be incorrect and actual results may differ materially from those anticipated. Consequently, guidance cannot be guaranteed. As such, investors are cautioned not to place undue reliance upon guidance as there can be no assurance that the plans, assumptions or expectations upon which they are placed will occur.
All forward-looking statements speak only as of the date of this release. ME2C Environmental does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release. Further information concerning issues that could materially affect financial performance related to forward-looking statements contained in this release can be found in ME2C Environmental’s periodic filings with the Securities and Exchange Commission.
ME2C Environmental Contact:
Main: 614-505-6115 x-1001
Released November 14, 2022