Tecogen Inc. · AMEX:TGEN
Tecogen — Q2 2018 Earnings Presentation
17 slides from Tecogen's earnings presentation, Aug 14, 2018
Slide 1: Energy Efficiency Reimagined: 2nd Quarter 2018 Earnings Review
Energy Efficiency Reimagined NASDAQ: TGEN 2nd Quarter 2018 Earnings Review� August 14, 2018
Slide 2: Participants
Participants Benjamin Locke Chief Executive Officer Robert Panora President & Chief Operating 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," "expec
Slide 4: Earnings Call Agenda
Earnings Call Agenda Benjamin Locke Introduction Second Quarter Review Why Tecogen Recent Achievements Robert Panora Technology Update Bonnie Brown Financial Review Benjamin Locke Opportunities and 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 Cleaner! Lower emissions thanks to efficiency and emissions technologyMore reliable! Real time monitoring enables prompt service All of Tecogen’s equipment is powered by internal combustion
Slide 6: Sustained Positive Financial Results
Sustained Positive Financial Results Adjusted EBITDA* T4Q Total (solid line) & Average (dotted line) - $Thousands $2,000,000 2Q ‘18 Revenues of $8.5 million� $1,000,000 Record T4Q revenue of $37.4 million� Revenue growth on T4Q basis year over year of $0 32.8%� -$1,000,000 Record T4Q gross profit of
Slide 7: 2Q'18 Summary of Results
2Q’18 Summary of Results YoY Increase $ in thousands 2Q’18 2Q’17 Comments (Decrease) Revenue Products $ 2,484 $ 3,116 $ (633) -20.3% Service 4,461 3,700 761 20.6% Gaining traction with turnkey installations Energy Production 1,508 774 734 94.8% Full quarter of ADG operations in 2018 Total Revenue 8,
Slide 8: Other Notable Achievements
Other Notable Achievements Products� ▪ Obtained UL 1741SA “smart inverter” certification – required in California� ▪ Upgraded Tecopower CHP system with higher efficiency, lower sound, better economics� ▪ Initiated product development efforts to expand Tecogen gas cooling technology offering� Sales�
Slide 9: Product and Installation Backlog
Product and Installation Backlog 2Q Historic Backlog $16,000,000 Backlog Breakdown by Customer $12,000,000 $8,000,000 $4,000,000 $0 Q2 2014 Q2 2015 Q2 2016 Q2 2017 Q2 2018 Backlog at qtr end Backlog related revenue Quarter-end backlog of $14.2 million on 6/30/18 versus $12.7 million on 6/30/17. Back
Slide 10: Technology Update Topics
Technology Update Topics Topics of Discussion Forklift trucks Automotive Miscellaneous! - Patents! - UL 1741 SA! �10
Slide 11: Forklift Truck Project Update
Forklift Truck Project Update PERC research program successfully completed� Exceptional test results� Near Zero NOx levels achievable with simple engine control tuning (reprogramming)� Review and demo at Tecogen May 23� Manufacturer and PERC� Manufacturer decision to Move Forward� Apply engineering
Slide 12: Miscellaneous Automotive; UL 1741 SA
Miscellaneous Automotive Ongoing work at research institute on catalyst optimization Japan Patent for Ultera granted Patent for Ultera catalyst material granted by USPO Specialized anti-corrosion composite material Successfully used in field trials Critical for many fuels containing sulfur UL 1741 S
Slide 13: 2Q '18 Financial Metrics: Revenues, Margins, Growth
2Q ‘18 Financial Metrics: Revenues, Margins, Growth Quarter Ended June 30, YoY % of Total Four diverse revenue streams providing 11.4% $ in thousands 2018 2017 Growth Rev growth year over year� Revenue Cogeneration $ 1,289 $ 1,838 -29.9% 15.2% Product gross margin grew to 39.9%, Chiller 1,195 1,278
Slide 14: Consistent Financial Progress: Adjusted EBITDA
Consistent Financial Progress Weekly Backlog Data: Product and Installation Services ADJUSTED EBITDA* 2Q ‘18 Compared to 2Q ‘17 $ Millions $ 22.0 Adjusted EBITDA 2Q'18 2Q'17 Non-GAAP financial disclosure $ 16.5 Net loss attributable to Tecogen Inc. $ (754,350) $ (293,540) Interest & other expense, n
Slide 15: Consistent Financial Progress: Revenue Trailing Quarters
Consistent Financial Progress Revenue: Trailing 4 Quarters 18,000,000 13,500,000 9,000,000 4,500,000 00 2014 Q1 2014 Q3 2015 Q1 2015 Q3 2016 Q1 2016 Q3 2017 Q1 2017 Q3 2018 Q1 Product Service Energy Energy production revenue Declining operating costs as a percent acquired in May, 2017 of revenue dem
Slide 16: 2018 Outlook
2018 Outlook Continue highlighting Tecogen as the most cost-effective, economically superior cogeneration technology� Establish Tecogen’s gas engine cooling technology as the best alternative to costly electric cooling technology. � Take proactive advantage of evolving utility environment via “smart
Slide 17: Q&A and 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� John Hatsopoulos� 781.622.1120 John.Hatsopoulos@Tecogen.com �17