Advanced Emissions Solutions, Inc. (NASDAQ:ADES) Q3 2022 Earnings Conference Call November 9, 2022 9:00 AM ET

Company Participants

Ryan Coleman - Alpha IR Group

Greg Marken - Chief Executive Officer, President and Treasurer

Morgan Fields - Chief Accounting Officer

Conference Call Participants

Operator

Good morning, ladies and gentlemen. Welcome to the Advanced Emissions Solutions Q3, Earnings Results Call. My name is Digrita, I'll be your moderator for today's call. [Operator Instructions]

I would now like to pass the conference over to your host, Ryan Coleman, with Investor Relations. Ryan, please go ahead.

Ryan Coleman

Thank you, and good morning, everyone. Thank you for joining us today for our third quarter 2022 earnings results call. With me on the call this morning are Greg Marken, Chief Executive Officer, President and Treasurer; as well as Morgan Fields, Chief Accounting Officer.

This call is being webcasted live within 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 the site, and you can contact Alpha IR for Investor Relations support at (312) 445-2870.

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. 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 statements. These risks and uncertainties include, but are not limited to, those factors identified on Slide 2 and 3 of today's slide presentation, in our Form 10-Q for the quarter ended September 30, 2022, and other filings with the Securities and Exchange Commission. Except as expressly required by securities laws, 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 review the presentation and today's remarks in conjunction with the GAAP references in the financial statements.

With that, I'll turn the call over to Greg.

Greg Marken

Thank you, Ryan. And thanks to everyone for joining us this morning. Our third quarter showed another period of solid consumables revenue growth, as macro-economic conditions continue to support demand and revenue improvements from our power generation, industrial and municipal water customers. Consumables revenue for the quarter grew to $28.4 million, compared to $26.7 million in the prior year, a 7% increase. The growth was driven by increased volumes and improved pricing partially offset by product mix. Our consumables gross margin was 24.1% in the quarter, compared to 25.2% in 2021. On a year-to-date basis, total sales volumes are significantly higher than the prior year, along with a much-improved average selling price, which has driven consumables revenue growth of 27% compared to the first nine months of 2021.