Fuel Tech, Inc. (NASDAQ: FTEK), a world leader in advanced engineering solutions for the optimization of combustion systems and emissions control in utility and industrial applications, today reported results for the three- and 12-month periods ended December 31, 2011.
Fourth Quarter 2011
Revenues for the fourth quarter totaled $28.0 million, a 12% increase from the comparable prior-year quarter. Net income for the quarter was $1.7 million, or $0.07 per diluted share, compared with net income of $1.0 million, or $0.04 per diluted share, in the same year-ago quarter. Adjusted EBITDA was $4.4 million, up from $3.8 million in the fourth quarter of 2010.
The Air Pollution Control technology segment (APC segment) recorded revenues of $18.0 million, an increase of 37% versus the fourth quarter of 2010. Segment gross margins were 44% in the fourth quarter of 2011 versus the 32% reported in the fourth quarter of 2010, primarily due to a mix of higher margin capital projects.The FUEL CHEM ® technology segment (FUEL CHEM segment) generated revenues of $10.0 million, a decrease of 15% from the comparable 2010 quarter. Current quarter revenues include $9.2 million from coal-fired units, a 16% decrease versus a year ago, and $1.6 million from non-coal-fired units, up 7% from the comparable prior-year quarter, reflecting lower sales to coal-fired units as reduced electrical loads and the low cost of natural gas suppressed the use of coal as a fuel source. Segment gross margins increased from 51% in the fourth quarter of 2010 to 54% in the current quarter due to strong performance at existing legacy accounts. Selling, general and administrative (SG&A) expenses totaled $9.8 million in the current quarter versus $7.6 million in the same year-ago period. In addition to increases in expenses related to sales commissions and employee incentive programs directly attributed to favorable results for the quarter, fees to outside service providers and cost associated with foreign operations increased in the current quarter.