Tecogen Inc. · AMEX:TGEN
Tecogen — Q3 2018 Earnings Presentation
15 slides from Tecogen's earnings presentation, Nov 13, 2018
Slide 1: Energy Efficiency Reimagined: 3rd Quarter 2018 Earnings Review
Energy Efficiency Reimagined NASDAQ: TGEN 3rd Quarter 2018 Earnings Review November 13, 2018
Slide 2: Participants
Participants Benjamin Chief Executive Officer Locke Robert President & Chief Operating 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," "expec
Slide 4: Earnings Call Agenda
Earnings Call Agenda Benjamin Locke Introduction Why Tecogen Third Quarter Review 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 technology More reliable Real time monitoring enables prompt service All of Tecogen’s equipment is powered by internal combustion e
Slide 6: Sustained Positive Financial Results
Sustained Positive Financial Results T4Q Adjusted EBITDA 3Q ‘18 Revenues of $7.9 million Quarterly with T4Q Average (green line) - $Thousands T4Q revenue of $37 million $1,000 Revenue growth on T4Q basis year over year of $500 23% T4Q gross profit of $13.7 million $0 Sustained step change to profita
Slide 7: 3Q'18 Summary of Results
3Q’18 Summary of Results YoY Increase $ in thousands 3Q’18 3Q’17 Comments (Decrease) Revenue Products $ 2,765,094 $ 2,425,616 $ 339,478 14.0% Highlighted by chiller sales Service 3,713,770 4,519,467 (805,697) -17.8% Decrease in turnkey installations Energy Production 1,459,820 1,556,115 (96,295) -6.
Slide 8: Other Notable Achievements
Other Notable Achievements Products ▪ Maintaining compliance with UL 1741 SA requirements ▪ Started customer outreach for reintroduction of TecoFrost ammonia based natural gas refrigeration system ▪ Working with manufacturing partner to produce, sell first TecoFrost units in 1H-19 Sales ▪ Additional
Slide 9: Product and Installation Backlog
Product and Installation Backlog Backlog Breakdown by Customer 3Q Historic Backlog $18,000 $16,000 $14,000 Health Care Thousands 19% $12,000 Education $10,000 Multi-Unit 3% Residential $8,000 50% Industrial & $6,000 Manufacturing 11% $4,000 $2,000 Other $0 13% Q3 2014 Q3 2015 Q3 2016 Q3 2017 Q3 2018
Slide 10: Emissions Technology Update
Emissions Technology Update World LPG (Propane) Forum Paper Presented October 2nd in Houston Manufacturing partner named: Mitsubishi Caterpillar Forklift America Inc. (MCFA) Second program phase underway Positive internal review at MCFA MCFA preparing custom engine control software Next steps: Retes
Slide 11: 3Q '18 Financial Metrics: Revenues, Margins, Growth
3Q ‘18 Financial Metrics: Revenues, Margins, Growth Quarter Ended September Four diverse revenue streams providing a mix of YoY % of $ in thousands 2018 2017 transactional and annuity like revenue streams Growth Total Rev Revenue Product revenue grew 14%, with chillers gaining Cogeneration $ 1,664 $
Slide 12: Consistent Financial Progress: Adjusted EBITDA and Backlog
Consistent Financial Progress ADJUSTED EBITDA* 3Q ‘18 Compared to 3Q ‘17 Backlog - Product and Installation Services Adjusted EBITDA 3Q'18 3Q'17 $ Millions $25.0 Non-GAAP financial disclosure $20.0 Net income (loss) attributable to Tecogen Inc. $ (603,037) $ 27,211 Interest expense & other expense,
Slide 13: Consistent Financial Progress: Trailing Quarters
Consistent Financial Progress Trailing 4 Quarters (%) Revenue: Trailing 4 Quarters 50% 20,000 18,000 46% 16,000 Thousands 14,000 42% 12,000 G&A and Selling Costs as % of Revenue 10,000 38% Gross Margin 8,000 6,000 4,000 34% 2,000 - 30% 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 2017
Slide 14: 2018-19 Outlook
2018-19 Outlook Continue highlighting Tecogen systems 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 advantage of additional utility revenue streams via “s
Slide 15: 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 15