Fuel Tech, Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing a decline in revenues and profitability compared to the same periods in 2023. For the third quarter of 2024, total revenues were $7.851 million, a decrease of 2% from $7.988 million in Q3 2023. Year-to-date revenues for the nine months ended September 30, 2024, were $19.850 million, down 4% from $20.736 million in the prior year.
The company's performance was impacted by its Air Pollution Control (APC) technology segment, which saw revenues drop to $3.224 million in Q3 2024 from $3.711 million in Q3 2023, marking a 13% decline. Year-to-date revenues for the APC segment also fell to $9.491 million from $10.692 million, an 11% decrease. Conversely, revenues from the FUEL CHEM technology solutions increased to $4.627 million in Q3 2024, up 8% from $4.277 million in Q3 2023, and year-to-date revenues rose to $10.359 million from $10.044 million, a 3% increase.
Fuel Tech reported an operating loss of $(179,000) for Q3 2024, contrasting with an operating income of $133,000 in Q3 2023. For the nine-month period, the operating loss widened to $(2.586 million) from $(1.857 million) in the previous year. Net income for Q3 2024 was $80,000, down from $459,000 in Q3 2023, while the nine-month net loss improved to $(60,000) from $(999,000) in the prior year.
The company’s cash and cash equivalents decreased to $12.274 million as of September 30, 2024, from $17.578 million at the end of 2023. Total current assets also fell to $30.917 million from $38.321 million. However, long-term investments increased significantly to $10.881 million from $3.664 million.
Fuel Tech's selling, general, and administrative (SG&A) expenses rose to $3.225 million in Q3 2024, up from $2.966 million in Q3 2023, reflecting higher employee compensation and benefits costs. SG&A as a percentage of revenue increased to 41% from 37% year-over-year. Research and development expenses remained stable, focusing on new product development, including DGI® Dissolved Gas Infusion Systems.
The company recorded an Employee Retention Credit (ERC) of $1.677 million as other income for the nine months ended September 30, 2024, which contributed to the overall financial performance. Despite the challenges, management believes the current cash position and expected net cash flows from operations are adequate to fund planned operations for the next 12 months.
About FUEL TECH, INC.
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