Fuel Tech Inc (NASDAQ:FTEK) posted financial report for the fourth quarter closed December 31, 2017. Consolidated revenues came at $13.4 million in Q4 2017 compared to $9.6 million in Q4 2016, showcasing the timing of project execution following the conversion of previously reported new orders during 1H2017.
Vincent J. Arnone, the CEO, Chairman and President of Fuel Tech, expressed that they returned to operating profitability in the fourth quarter of 2017, their first operating profit since the third quarter of 2014 and posted their second successive quarter of positive Adjusted EBITDA. They even achieved their performance targets for 2H2017 as compared to the initial six months of the year.
For 2H2017, revenues surged 48% in comparison to the previous year primarily showcasing the ongoing conversion of new orders worth $36 million reported during 2017. SG&A dropped 11.7% to $9.8 million, the outcome of their previously reported cost-containment measures that, in total, have eliminated around $19 million of costs for the three-year period closing December 31, 2017. They anticipate to realize the full benefit of the cost decline in 2018.
The CEO of Fuel Tech expressed that they closed the year with capital projects backlog of worth $22.1 compared to backlog of $8 million at the close of December 31, 2016. Their total cash position, including restricted cash, came at $14.4 million at the close of December 31, 2017, registering a jump of $1.8 million as compared to the close of June 30, 2017 while their long-term debt was zero.
Arnone added that they project continuing operational improvement in this year, depending on the success of their cost reduction initiatives, their business development activities, year-end backlog and pipeline. For 2018, they anticipate higher total revenues, driven mainly their Air Pollution Control business. They also anticipate to operate profitably and record positive cash flow due, in large, to their reduced cost structure.