Tecogen Inc. · AMEX:TGEN
Tecogen — Q1 2018 Earnings Presentation
17 slides from Tecogen's earnings presentation, May 15, 2018
Slide 1: Energy Efficiency Reimagined: 1st Quarter 2018 Earnings Review
Energy Efficiency Reimagined NASDAQ: TGEN 1st Quarter 2018 Earnings Review May 15, 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 First Quarter Review Recent Achievements Market and Regulatory Developments Robert Panora Emissions 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 Adjusted EBITDA* 1Q ‘18 Revenues of $10.2 million Quarterly with T4Q Average (dotted line) - $Thousands Record T4Q revenue of $36.5 million $1,000 $500 Sustained step change to profitability Thousands originally achieved in 3Q’16 Six of the past seven quarters of
Slide 7: 1Q'18 Positive Net Income YoY
1Q’18 Positive Net Income YoY $ in thousands 1Q’18 1Q’17 Comments Chg Revenue Products $ 3,674 $ 2,807 30.9% Chiller sales drive increased product revenue Service 4,719 4,039 16.8% Gaining traction with turnkey installation Energy Production 1,783 0 N/A First Q1 with ADG's energy producing sites Tot
Slide 8: Product and Installation Backlog
Product and Installation Backlog 1Q Historic Backlog Backlog Breakdown by Customer $16,000 $14,000 Health Care $12,000 19% $10,000 Thousands Education Multi-Unit 3% $8,000 Residential 50% $6,000 Industrial & Manufacturing $4,000 11% $2,000 Other $0 13% Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018 Hospita
Slide 9: Emissions Update Topics
Emissions Update Topics Topics of Discussion Fork trucks Automotive Miscellaneous EU Patent Allowance Public Research Application 9
Slide 10: Fork Truck Project Update
Fork Truck Project Update PERC research grant for application of Ultera for propane fork truck retrofits Integrated under counterweight with existing exhaust components Stock Exhaust Modified Exhaust System System Exceptional test results Near Zero NOx levels achievable with simple engine control tu
Slide 11: Fork Truck Test Results
Fork Truck Test Results Recent testing confirmed by Engine retuning shows path to independent third party “Near-Zero” certification Dynamic Test Results (Heavy Lift Tests) 11
Slide 12: Automotive/Miscellaneous
Automotive/Miscellaneous Automotive Ongoing work at research institute on catalyst optimization EU Patent for Ultera Notice of Allowance received from EU patent office Important potential markets for Ultera technology Research grant application completed California state agency Supplement Ultera aut
Slide 13: 1Q'18 Financial Metrics: Revenues, Margins, Growth
1Q ‘18 Financial Metrics: Revenues, Margins, Growth Quarter Ended March 31, YoY % of $ in thousands 2018 2017 Four diverse revenue streams Growth Total Rev Revenue Product sales growth of 31%, lead by Cogeneration $ 1,764 $ 2,297 -23.2% 17.3% Chiller 1,909 511 273.8% 18.8% chiller sales Total Produc
Slide 14: Consistent Financial Progress: Backlog and Adjusted EBITDA
Consistent Financial Progress Weekly Backlog Data: Product and Installation ADJUSTED EBITDA* 1Q ‘18 Compared to 1Q ‘17 $ thousand Services $20,000.0 Q1 2018 Q1 2017 $18,000.0 Non-GAAP financial disclosure Net Income attributable to Tecogen Inc. $ 20,759 $ 44,787 $16,000.0 Interest expense, net 14,08
Slide 15: Consistent Financial Progress: Trailing Quarters
Consistent Financial Progress Trailing 4 Quarters (%) Revenue: Trailing 4 Quarters 50% 18,000 16,000 46% 14,000 $ Thousands $ 12,000 42% 10,000 G&A and Selling Costs as % of Revenue 8,000 38% Gross Margin 6,000 4,000 34% 2,000 - 30% 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 2017 20
Slide 16: 2018 Outlook
2018 Outlook Continue to reinvest cash flow in the core business to drive revenue and gross profit growth Move forward with development of Ultera technology, focusing initially on fork trucks Open to opportunistic acquisitions Take proactive advantage of evolving utility environment Energy Efficienc
Slide 17: 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 John Hatsopoulos 781.622.1120 John.Hatsopoulos@Tecogen.com 17