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HIGHLANDS RANCH, Colo., March 31, 2014 (GLOBE NEWSWIRE) -- Advanced Emissions Solutions, Inc. (Nasdaq:ADES) (the "Company") today announced that it expects to file its Annual Report on Form 10-K for the fiscal year ended December 31, 2013 (the "10-K") in mid-April. Prior to the release of the 10-K, the Company will issue financial results for the fourth quarter and year-ended December 31, 2013, and conduct a conference call. Additional timing and call-in details will be announced prior to filing the 10-K.
The Company is completing extensive reviews of its historical revenue recognition policy for equipment contracts in its Emission Control segment ("EC"), verifying its accounting for interest expense accruals related to taxes on deferred installment gain and certain other accounting transactions, continuing the process of assessing the effectiveness of its internal control over financial reporting, and determining possible effects on results reported in prior periods. This process has required intensive and detailed re-examination of a large number of equipment contracts, transactions and other accounting records, causing the delay in reporting.
The Company now expects its proposed change in revenue recognition methods and other immaterial adjustments will likely result in a reduction of revenues of approximately $12 million in the aggregate for prior reporting periods including the first three quarters of 2013 and an increase in backlog reported as of September 30, 2013 of a similar amount. These adjustments will have no impact on the amount of revenue ultimately recognized over the terms of the EC equipment contracts and pertain
only to the EC segment. The Company now expects the combined possible effects of all adjustments on results reported in prior periods will be less than $4 million, which primarily consists of the margin associated with EC revenue changes and adjustments to interest expense accruals associated with IRS Section 453A interest on installment gains.
Dr. Michael D. Durham, President and CEO of the Company commented, "This process has taken much longer than desired. While frustrating, this effort has not, and will not, impact project execution, our relationships with customers, or our ability to win awards. The outlook for all of our segments is unchanged by these accounting adjustments. With more than $50 million in cash on our balance sheet at year-end, record backlog and positive prospects in our Emissions Control segment, and accelerating progress in our Refined Coal segment, we are excited for 2014 and the future. We will be providing updates regarding timing and any impact of the accounting review and our filings as soon as practical."