Research and development (R&D) expenses remained flat at $0.4 million, compared with fourth quarter of 2010, as a continued focus on R&D activities works to provide additional enhancements to the Company’s existing suite of technologies.
Full Year 2011
Revenues for 2011 were a record $93.7 million, up 15% from $81.8 million in 2010. Net income for the year was $6.1 million, or $0.25 per diluted share, up from of $1.8 million, or $0.07 per diluted share, for the prior year. Adjusted EBITDA in 2011 was $15.9 million, an increase of 32% from the $12.1 million recorded in the prior year.
The APC technology segment recorded record revenues of $50.9 million, a 24% increase versus fiscal 2010, as utility and industrial customers continue to make operation improvements and prepare to comply with Federal and State regulations. Segment gross margins increased to 44% versus 34% reported for full year 2010. The increase was primarily due to the mix of higher margin project work.Record annual revenues for the FUEL CHEM segment totaled $42.7 million versus $40.9 million in total 2010 segment revenues. Of the $42.7 million in 2011 segment revenues, $39.3 million was associated with coal-fired units (a 5% increase versus the comparable prior-year period) while revenues from non-coal-fired units declined 1% to $3.4 million. Segment gross margins decreased slightly to 50% for fiscal 2011 from 52% for fiscal 2010 due to the impact of a one-time contingent risk share payment of $2.0 million that was recognized in 2010, but related to a 2009 demonstration. At December 31, 2011, a small contingent payment of $0.4 million exists for carryover to 2012. SG&A expenses totaled $33.4 million versus $30.9 million in the same year-ago period. This increase is partially attributed to commissions and incentive pay related to increases in revenue and profits, fees to outside service providers, and costs associated with growing international operations. Partially offsetting these increases was a decrease of $1.5 million in stock compensation expense. R&D expenses for fiscal 2011 were $1.5 million versus $0.9 million for fiscal 2010 to support continued emphasis on R&D activities to enhance product offerings.