It must be more than late signing / monetizing new RC systems, or as put in op update "because of the complexities of each RC deal and the number of externalities that are outside our direct control and involvement..."
I was bummed to see the op update led with DSI/ACI business instead of RC business. Are they preping us for a let down? Also, I didn't see mention of a end 12 or end 13 run rate ebida. Why not?
Finally, I am worried about change in risk factor language in the boilerplate re RC business between August and now. Then: "failure of CCS’ leased facilities to continue to produce coal which qualifies for IRS Section 45 tax credits" and now: "interpretations of Section 45 tax credit regulations by the IRS adverse to our RC business." I may be titling at windmills here, but the language now sounds more like the questioning of the very foundation of the RC business.
And where is mention of IRS audits of utes already using or trying to start RC systems? When are they expected to render a ruling? Mgt owes us more clarity.
Hmmm, seems like some fear mongering going on here.
Not sure if anyone notices but AJ Gallagher has a portfolio of RC facilities as large as ADA. Over the last quarter they signed up 2 more plants and indicated a third has been finalized for 4Q as of now. Their investors don't seem to understand the business, either.
Importantly, they are not having the same difficulties as ADA which means that there is not the mentioned fear from potential customers about the IRS, it is just that ADA hasn't done as good of a job as AJG of signing up new customers.