Slide 1: Second Quarter 2020 Earnings Call
OCTQX: TGEN SECOND QUARTER 2020 Earnings Call August 13, 2020
Slide 2: Participants
Participants Benjamin Locke Chief Executive Officer President & Chief Operating Robert Panora Officer Jack Whiting General Counsel & Secretary 2
Slide 3: Safe Harbor Statement
Safe Harbor Statement This presentation and accompanying documents contain “forward-looking statements” which may describe strategies, goals, outlooks or other non- historical matters, or projected revenues, income, returns or other financial measures, that may include words such as "believe," "expe
Slide 4: Earnings Call Agenda
Earnings Call Agenda Agenda: Tecogen Overview Q2 2020 Results Earnings Takeaways • Product sales increase 37% YoY • Reduced OpEx 9.4% YoY • Cash inflow from operations of $2.7 million vs. cash outflow of $2.1 million YoY • Cash and equivalents balance 6/30/20 of $2.86 million vs. $878 thousand 12/31
Slide 5: Tecogen Overview
Tecogen Overview Clean and Efficient Energy Systems Leader in Distributed Generation Technology • Unmatched efficiency of air-conditioning and cooling systems • Ultera technology ensures emissions compliance in most stringent US districts • Enable black-start and off-grid power generation • Ranked 3
Slide 6: 2nd Quarter 2020 Results
2nd Quarter 2020 Results YoY $ in thousands 2Q'20 2Q'19 % Chg Revenue = $7.44 million Change Revenue Products • Compared to $7.87 million in 2Q’19, 5.5% decrease Service $ 3,343 3,816 $ 2,445 4,844 $ 897 (1,028) • Product revenue up 37% Energy Production 276 578 (302) Total Revenue 7,435 7,867 (432)
Slide 7: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Reconciliation of Q2 2020 and 2019 Net loss to Adjusted EBITDA EBITDA: Earnings Before Interest, Taxes, Depreciation & Amortization EBITDA Non-cash adjustments • Stock based compensation • Unrealized loss on investment securities • Non-cash abandonment of intangible as
Slide 8: 2Q '20 Performance by Segment
2Q ’20 Performance by Segment Product Sales Remain Strong Led by Service Contracts/Parts Energy Production Revenue Cogeneration Expected to Recover Q3 Slowed by COVID Product revenue increased 37% YoY Q2 Revenue ($k) 2020 2019 % YoY % Tot. Rev Cogeneration $ 3,108 $ 1,414 120% 42% • Driven by cogene
Slide 9: 2Q '20 Earnings Takeaways
2Q ‘20 Earnings Takeaways Core Business Segments Performed Well Despite COVID Challenges Sales Backlog Customer Segment • Product sales up YoY, Quarter over Quarter • Service contracts/parts revenue down only 4% despite COVID closures • Installations resuming as COVID restrictions dissipate 14.1% 39
Slide 10: Q&A Company Information
Q&A Company Information Tecogen, Inc 45 First Ave Waltham, MA 02451 www.Tecogen.com Contact information Benjamin Locke, CEO 781.466.6402 Benjamin.Locke@Tecogen.com 10