Northern,WI  11/8/2012  (BasicsMedia)  —  Election Casualties: ADA-ES (NASDAQ:ADES) and James River Coal (NASDAQ:JRCC) traded lower after Republicans lost a chance at the White House…but much of the move lower was due to flagging quarterly results versus a Democratic win.  Yes the sector will viewed as the Election loser and many on Wall Street think Coal stocks were a proxy for higher revenue for a deregulated Coal Industry under Mitt Romney.  Shares were lower for both stocks in post election action.

ADA-ES (NASDAQ:ADES)  —  Reported 3rd Quarter results  yesterday and gross margin was $4.0 million, or 5% of revenues, compared to $7.2 million, or 54% of revenues, for the same period in 2011, due to the impact of RC sales, raw coal purchases and operating costs related to the RC facilities operated by Clean Coal for its own account in the 2012 third quarter. Excluding the impact of RC coal sales, raw coal purchases and operating costs from these RC facilities, gross margin in the third quarter of 2012 was 80%.

Dr. Michael D. Durham, President and CEO of ADA, stated,  “We are slowly making progress with getting our RC facilities up and operating with an eighth RC facility commencing operations in October. At present, ADA’s Clean Coal joint venture has eight RC facilities in full-time operation, treating coal for 15 boilers that average more than 20 million tons of coal per year combined; four of those facilities are leased and generating rental revenues. We expect that Clean Coal will, by the end of the year, have fully monetized an RC facility it is presently operating for its own account. We are very excited about the opportunities at our Emissions Control (EC) business segment, where we recently announced contracts of activated carbon injection (ACI) and dry sorbent injection (DSI) systems valued at up to $15 million. Sales of ACI and DSI products are expected to generate over $300 million in revenues for ADA over the next three years.”

James River Coal (NASDAQ:JRCC) — James River Coal Company (JRCC),  announced that it had net loss of $20.6 million or $0.59 per diluted share for the third quarter of 2012 and net loss of $62.0 million or $1.78 per diluted share for the nine months ended September 30, 2012.  Included in the third quarter results is a gain of $22.2 million from the repurchase of outstanding notes in open market purchases.  The 2012 results are compared to net loss of $3.7 million or $.11 per diluted share for the third quarter of 2011 and net loss of $10.5 million or $0.33 per diluted share for the nine months ended September 30, 2011.

Peter T. Socha, Chairman and Chief Executive Officer commented: “We are very pleased to have the uncertainty of the U.S. presidential election behind us.  We believe that this issue caused a temporary slowdown in economic growth both in the United States and globally.  The slowdown in growth, combined with warm weather last winter, has contributed to an unusually weak market for thermal and metallurgical coal.  Hopefully, this condition will be corrected shortly.

“Despite the soft coal markets, we continue to be pleased with the performance of our mine operations team.  They made a series of adjustments to their operating plans in response to the current markets. In the financial area, we decided to take the opportunity to reduce our debt at very advantageous market prices due to external events.  We believe that we were able to successfully balance our desire for a strong and liquid balance sheet with a window of opportunity that was available to us.”

 

Disclaimer:  We have no position in any stock mentioned here.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.