Ada-es, Inc. has a market cap of $230.2 million; its shares were traded at around $24.41 with and P/S ratio of 4.3.
Highlight of Business Operations:Revenues totaled $52.5 million and $70.7 million for the three and six months ended June 30, 2012 versus $7 million and $15.5 million for the three and six months ended June 30, 2011, respectively, representing an increase of 647% and 357% for the quarter and year to date. The change is due primarily to revenues from operations at the RC facilities we leased to a third party and RC sales from other facilities placed in service in 2011 that were operated by Clean Coal in 2012 prior to being leased or sold to third parties . The change is also due in part to an 80% increase in our EC segment revenues. We expect overall revenues for 2012 to be significantly higher than those reported for 2011.
Revenues in our RC segment totaled $48.4 million and $63.5 million for the three and six months ended June 30, 2012, respectively, compared to $4.7 million and $10.8 million for the three and six months ended June 30, 2011, representing an increase of 918% and 486% for the quarter and year to date. Rental income totaled $10.6 million and $16 million from the leased RC facilities for the three and six months ended June 30, 2012, respectively, compared to $4.7 million and $10.7 million for the same periods in 2011. Sales of RC totaled $37.7 million and $47.5 million for the three and six months ended June 30, 2012 as a result of raw coal purchases and RC sales at the several different RC facilities that Clean Coal operated for its own account during the periods shown. There were no such sales or raw coal purchases for the same periods in 2011.
The amounts reported excludes the work ADA has conducted for Clean Coal, as further described below, which was eliminated in our consolidation. Revenues from the EC segment for the six months ended June 30, 2012 were comprised of sales of ACI and DSI systems and services (62%), consulting and demonstration services (32%) and flue gas chemicals and services (6%) compared to 30%, 53%, and 17%, respectively, for the same period in 2011. For the near term, we expect the consulting services in our EC segment to increase as a percentage of EC revenues as the industry continues to analyze and evaluate the MATS. We expect our EC segment revenues related to ACI and DSI systems to start growing later in 2012 when we expect utilities, cement plants and industrial boilers to start placing orders due to the MATS and other MACT regulations. We expect our gross margin percentage for our EC segment for 2012 will approximate 25%.
As of June 30, 2012, we had contracts in progress for work related to our EC segment totaling approximately $4.5 million, which we expect to recognize in 2012. Our ACI and DSI systems revenues totaled $2.6 million and $4 million for the three and six months ended June 30, 2012, respectively, representing an increase of 463% and 264% compared to the same periods in 2011. In the EC segment, we performed work related to RC facilities provided to Clean Coal valued at $624,000 and $2 million for the three and six months ended June 30, 2012, respectively, compared to $359,000 and $471,000 for the same periods in 2011, which would otherwise be recognized as revenue but was eliminated in the consolidation of Clean Coal.
Cash flow used in operations totaled $13.6 million for the first six months of 2012 compared to cash flow provided by operations of $5.9 million for the same period in 2011. The change in operating cash flow primarily resulted from an increase in accounts receivable of $8 million, an increase in accounts payable of $626,000, a decrease in accrued payroll and related liabilities of $1.1 million, a decrease of $2.9 million in settlement awards and related accrued liabilities and a decrease in deferred revenues and other liabilities of $2.7 million. These changes in our operating assets and liabilities correspond to the nature and timing of our procurement and billing cycle and development activities. In addition, adjustments related to non-cash operating activities included expenses paid with stock and restricted stock of $275,000, depreciation and amortization of $2.2 million, deferred tax expense of $305,000 and non-controlling interest in Clean Coal of $2.7 million which increased our cash flow provided by operations.
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