Tecogen Inc. · AMEX:TGEN
Tecogen — Q3 2017 Earnings Presentation
16 slides from Tecogen's earnings presentation, Nov 14, 2017
Slide 1: 3Q 2017 Earnings
NASDAQ: TGEN 3Q 2017 Earnings November 9, 2017
Slide 2: Participants
3Q 2017 Earnings Call 2 John Hatsopoulos •Co-Chief Executive Officer, Director Benjamin Locke •Co-Chief Executive Officer Robert Panora • President & Chief Operating Officer Bonnie Brown • Chief Accounting Officer Participants
Slide 3: Forward-looking statements
3Q 2017 Earnings Call 3 This presentation This conference call and any accompanying documents, contain "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words suc
Slide 4: 3Q Agenda
3Q 2017 Earnings Call 4 Speaker Topic(s) John Hatsopoulos Introduction Benjamin Locke Why Tecogen 3rd Quarter Review Recent Achievements Robert Panora Emissions Update Bonnie Brown Financial Review Benjamin Locke Opportunities and Outlook Q&A 3Q Agenda
Slide 5: Why Tecogen?
Heat, Power & Cooling that is Cheaper, Cleaner, & More Reliable Tecogen’s compelling ROI proposition meets the needs of a diverse range of customers. Hospitality Health Care Education Multi-Unit Residential Industrial Municipal Recreation “Unregulated Utility” CHP Modules Electricity & Heat Ilios Wa
Slide 6: 3Q17 Results Summary
REVENUE ▪ Total Revenues: $8.5M in 3Q17 vs. $6.6M in 3Q16 & $7.6M in 2Q17 ▪ Products: $2.4M in 3Q17 vs. $2.9M in 3Q16 & $3.1M in 2Q17 − Cogeneration sales declined after four quarters of robust year-over-year growth ▪ Service: $4.5M in 3Q17 vs. $3.8M in 3Q16 & $3.7M in 1Q17 − Growth primarily due to
Slide 7: Recent Achievements
Performance • Tecochill experiencing increasingly broad market penetration • Growing interest in full turnkey installation • Backlog sustained at near record levels Groundwork for Continued Growth • Expanding base of ESCO partnerships • Tracking state approvals for indoor grow facilities • Continued
Slide 8: Backlog
Installed Base* Backlog $14.5M 3Q17 backlog vs $11.9M 3Q16 backlog $16.8M current Product and Installation Backlog as of November 8, 2017 Backlog growth driven by increasing demand for Chillers, InVerde e+, and Installation Services *Approximate recently installed base by end market as of YE 2016. 3
Slide 9: Emissions Update
3Q 2017 Earnings Call 9 As Delivered by Manufacturer With Ultera installed Tecogen Emissions Programs • PERC research grant for application of Ultera process to propane powered fork trucks – Retrofit complete on donated fork truck • As pictures to the right show, the technology fits well within exis
Slide 10: Emissions Update: Ultera Adaption to Vehicle Emissions
Ultera Adaption to Vehicle Emissions • Dissolution of Ultratek pending – Tecogen to receive $2 million in cash – Transaction to acquire all the IP within Ultratek for $400,000 to follow • Initial conversations with investors in new entity underway • Goal is to have structure in place to begin resear
Slide 11: Financial Metrics
Financial Metrics Revenues, Margins, Growth ▪ Four revenue streams − Product sales − Long-term service contracts provide stable ongoing revenue − Turnkey Installation through Tecogen service operations − Energy production through wholly-owned subsidiary, ADGE, provides additional source of stable on
Slide 12: Sustained Positive Results
3Q 2017 Earnings Call 12 Sustained Positive Results Five Consecutive Quarters of Positive Operational Results ▪ Adjusted EBITDA of $730K over the last four quarters ▪ Sustained step change in profitability that was first achieved in 3Q’16 ▪ Reinvesting profits back into the business − $457K increase
Slide 13: Consistent Financial Progress
$0 $2 $4 $6 $8 $10 $12 $14 $16 $18 20 14 Q 1 20 14 Q 3 20 15 Q 1 20 15 Q 3 20 16 Q 1 20 16 Q 3 20 17 Q 1 20 17 Q 3 Revenues Trailing 4 Quarters - $ Millions Products Services Energy Production (ADGE) 3Q 2017 Earnings Call 13 Consistent Financial Progress 30% 32% 34% 36% 38% 40% 42% 20 14 Q 1 20 14 Q
Slide 14: Opportunities & Outlook
Opportunities & Outlook a growing company in a growing industry •High ROI product •Technological innovation •Relationships with key partners •Increasing environmental and regulatory pressures •Resiliency and Demand Response concerns Sales •Turnkey installation •Long term service agreements •Nationwi
Slide 15: Q & A
NASDAQ: TGEN 3Q 2017 Earnings Call 15 Q & A
Slide 16: Contact Information
Company Information Tecogen Inc. 45 First Avenue Waltham, MA 02451 www.tecogen.com Contact John Hatsopoulos, Co-CEO 781.622.1122 John.Hatsopoulos@tecogen.com Jeb Armstrong, Director of Capital Markets 781.466.6413 Jeb.Armstrong@tecogen.com 3Q 2017 Earnings Call 16 Contact Information