Tecogen Inc. · AMEX:TGEN
Tecogen — FY2018 Earnings Presentation
19 slides from Tecogen's earnings presentation, Mar 28, 2019
Slide 1: Year End 2018 Earnings Review
Energy Efficiency Reimagined NASDAQ: TGEN Year End 2018 Earnings Review March 28, 2019
Slide 2: Participants
Participants Benjamin Locke Chief Executive Officer President & Chief Operating Robert Panora Officer Bonnie Brown Chief Accounting Officer 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 Benjamin Locke Tecogen Overview 2018 Financial Overview Strategic Update Market Update Bonnie Brown Financial Review Robert Panora Ultera Emissions Update Benjamin Locke 2019 Outlook Q&A 4
Slide 5: Advanced Modular Cogeneration Systems
Advanced Modular Cogeneration Systems Heat, Power, and/or Cooling that is: Cheaper Industry leading efficiency and reduced exposure to expensive electricity Cleaner Proprietary near-zero emissions technology, GHG reductions More reliable Real-time monitoring, blackout protection, and improved grid r
Slide 6: 2018 Financial Results
2018 Financial Results Q4 2018 Q4 2018 revenues of $9.3 million T4Q – Revenue and Gross Profit Adjusted EBITDA*of $502K for 4Q’18 compared to $40 $533K for 4Q’17 $35 $30 Gross margin of 40% compared to 37% in Q4 ‘17 in $ Millions Chiller sales grow 21% year over year $25 11% growth in service contra
Slide 7: 4Q 2018 Adjusted EBITDA of $502K
4Q 2018 Adjusted EBITDA of $502K $ in thousands 4Q’18 4Q’17 YoY Change Comments Revenue Products $ 3,703 $ 4,642 $ (939) Service 3,965 4,118 (153) Energy Production 1,649 1,504 145 Total Revenue 9,316 10,264 (948) -9% Product shift to chiller sales Gross Profit Products $ 1,501 $ 1,891 $ (390) Servi
Slide 8: YE 2018 Adjusted EBITDA of $217K
YE 2018 Adjusted EBITDA of $217K $ in thousands YE 2018 YE 2017 YoY Change Comments Revenue Products $ 12,625 $ 12,991 $ (366) Service 16,859 16,377 482 Energy Production 6,400 3,834 2,566 2018 represents first full year Total Revenue 35,884 33,202 2,682 8% Gross Profit Products $ 4,827 $ 4,979 $ (1
Slide 9: Product and Installation Backlog
Product and Installation Backlog Current Backlog of $ 29.9 million Product backlog: $15.4 mm, Install backlog $14.5 mm 9
Slide 10: Strategic Achievements
Strategic Achievements Adjusted product Established ADG Forklift Emissions mix to emphasize sites as solid program with Financial Stability chiller sales investment assets Cat/Mitsubishi Less competition, Enabled selective Potential for fleet No additional Well defined sale to strengthen forklift co
Slide 11: Market Update
Market Update Indoor Agriculture Growth Opportunity Proven cost/benefit of Tecochill Substantial long term growth as market expands Diverse product portfolio enables range of options CHP, chillers, heat pump allows many options Tecofrost opens many new markets Third party Financing Offers Creative E
Slide 12: Q4 2018 Financial Metrics: Revenues, Margins, Growth
Q4 2018 Financial Metrics: Revenues, Margins, Growth Quarter Ended December 31, YoY % of Total $ in thousands 2018 2017 After the elimination of goodwill impairment of Growth Rev Revenue $4.4 million, maintained profitability for the Cogeneration $ 750 $ 2,209 -66% 8% Chiller 2,952 2,434 21% 32% qua
Slide 13: Year End 2018 Financial Metrics: Revenues, Margins, Growth
Year End 2018 Financial Metrics: Revenues, Margins, Growth Year Ended December 31, YoY 2018 % of $ in thousands 2018 2017 Growth Total Rev Revenue Four diverse revenue streams Cogeneration $ 5,467 $ 8,186 -33% 15% Chiller 7,158 4,806 49% 20% Record-breaking chiller sales Total Product Revenue 12,625
Slide 14: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Adjusted EBITDA positive for the year and 4th quarter Non-GAAP financial disclosure Q4 2018 Q4 2017 Q4 and YE Comparative Net income (loss) to Net Income (loss) attributable to Tecogen Inc. $ (4,371,904) $ 268,981 Interest expense, net 63,716 33,463 Adjusted EBITDA Rec
Slide 15: Emissions Technology Update
Emissions Technology Update Forklift Program – Tecogen/Mitsubishi Caterpillar Forklift of America (MCFA) Received first samples of alternative engine retuning software from MCFA Prototype evaluation completed at Tecogen Tuning shift produced expected result (NOx reduction) “Roadmap” provided to MCFA
Slide 16: Emissions Technology Update (2)
Emissions Technology Update (2) Other Emissions Progress Southern California generator retrofit program All engines permitted, successfully tested for compliance Only natural gas engines permitted to current (2010) regs without operating exemption Ultera Automotive Catalyst Development On road Ulter
Slide 17: 2019 Outlook
2019 Outlook Continued growth in Core business Driven by shift in product sales mix to chillers No chiller competitors, Predictable sales channels Ultera emissions key to certain markets (California) Adapt to changing role of CHP in utility distributed generation market “Smart Inverter” certificatio
Slide 18: Closing Comments
Closing Comments Tecogen Key Value Proposition Remains: TGEN 12 month stock chart • Use plentiful and affordable natural gas efficiently and cleanly to meet energy needs of large facilities • Tecogen cogeneration systems have necessary certifications and functionality to participate in new, revenue
Slide 19: Q&A
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 19