Tecogen Inc. · AMEX:TGEN
Tecogen — FY2017 Earnings Presentation
20 slides from Tecogen's earnings presentation, Mar 21, 2018
Slide 1: Energy Efficiency Reimagined: Year-End 2017 Earnings Review
Energy Efficiency Reimagined NASDAQ: TGEN Year-End 2017 Earnings Review March 21, 2018
Slide 2: Participants
Participants Co-Chief Executive Officer, DirectorJohn Hatsopoulos Co-Chief Executive OfficerBenjamin Locke President & Chief Operating OfficerRobert Panora Chief Accounting OfficerBonnie Brown 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 John Hatsopoulos Introduction Benjamin Locke Why Tecogen Year-End 2017 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: Heat, Power, and/or Cooling that is Advanced
Heat, Power, and/or Cooling that is Advanced Modular Cogeneration Systems 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 Record annual revenue in 2017 of $33.2 million Sustained step change to profitability achieved in 3Q’16 Six consecutive quarters of positive operational results Adjusted EBITDA of $1.1 million for the year, $533K in 4Q’17 Adjusted EBITDA is defined as net income
Slide 7: 4Q'17 and 2017 Results Compared to Prior Year
$ in thousands 4Q’17 4Q’16 YoY Chg 2017 2016 YoY Chg Comments Revenue Products $ 4,642 $ 3,196 45.2% $ 12,991 $ 10,722 21.2% Chiller sales drive record product revenue Service 4,118 3,915 5.2% 16,377 13,768 19.0% Gaining traction with turnkey installation Energy Production 1,504 0 N/A 3,834 0 N/A Se
Slide 8: Recent Achievements
Recent Achievements Over the last 18 months the core company has proven itself to be a viable, profitable, and scalable business 8 Self Sustaining and growing cash flow Backlog at record levels Balance sheet almost entirely debt free Acquisition of American DG Energy Enables company to reinvest in i
Slide 9: Product and Installation Backlog
Product and Installation Backlog Year-end 2017 Backlog by Customer Record quarter-end backlog of $15.7 million on 12/31/17 versus $11.1 million on 12/31/16. Backlog as of 3/20/18 at $17.4 million 9 Multi-Unit Residential 50% Hospitality & Recreation 4% Other 13% Industrial & Manufacturing 11% Educat
Slide 10: Market and Regulatory Developments
Market and Regulatory Developments Market Developments Indoor agriculture important driver of near term growth Exhibiting potential to be a major long term market Cultivating and deepening sales relationships across industry channels ESCOs, building management companies, engineering companies, energ
Slide 11: Emissions Update Topics
Emissions Update Topics 11 Topics of Discussion Fork trucks Automotive Stationary Standby generator program Best Available Control Technology (BACT) in South Coast Air Quality Management District (SCAQMD) Potential new SoCal sale
Slide 12: Emissions Update: Fork Truck Integration
Emissions Update: Fork Truck Integration 12 PERC research grant for application of Ultera to propane fork trucks Integrated under counterweight with existing exhaust components Exceptional test results 99% CO reduction 58% THC reduction 24% NOx reduction Near Zero NOx levels achievable with simple e
Slide 13: Emissions Update: Fork Truck Test Results
Emissions Update: Fork Truck Test Results 13 0 100 200 300 400 500 600 700 800 900 1000 250 300 350 400 450 500 550 600 650 700 750 800 850 900 950 1000 CO [pp m ] Runtime [sec] Pre Ultera System Post Ultera System 400 F (204 C) Ultera Temperature Heavy Lift Test* 0 10 2 3 4 5 6 70 80 90 100 250 300
Slide 14: Emissions Update: Fork Truck Test Results
Emissions Update: Fork Truck Test Results 14 0 200 400 600 800 1000 1200 1400 1600 1800 2000 1100 1160 1220 1280 1340 CO [pp m ] Runtime [sec] CO - Pre Ultera CO - Post Ultera Low NOx Tuning Test (low loading) 0 10 20 30 40 50 60 70 80 90 100 1100 1160 1220 1280 1340 NO x [pp m ] Runtime [sec] NOx -
Slide 15: Ultera Emissions Technology
Ultera Emissions Technology 15 Mobile Emissions Applications Dissolution of ULTRATEK joint venture is complete Tecogen now owns 100% of patents and other intellectual property. Received $1.6 million in cash Tecogen self-funding Phase 1 of three-phase program with a major R&D institution Testing of a
Slide 16: Year-End 2017 Financial Metrics: Revenues, Margins, Growth
Year-End 2017 Financial Metrics: Revenues, Margins, Growth Four diverse revenue streams Record product sales Long term service contracts provide steadily improving cash flow Turnkey installation through Tecogen service operations facilitates both product sales and service revenue Energy production v
Slide 17: Consistent Financial Progress
Consistent Financial Progress *Adjusted EBITDA is defined as net income (loss) attributable to Tecogen Inc, adjusted for interest, depreciation and amortization, stock based compensation expense and merger related expenses. Steady growth in the backlog translates directly to revenue and bottom-line
Slide 18: Consistent Financial Progress
$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 20 14 Q1 20 14 Q2 20 14 Q3 20 14 Q4 20 15 Q1 20 15 Q2 20 15 Q3 20 15 Q4 20 16 Q1 20 16 Q2 20 16 Q3 20 16 Q4 20 17 Q1 20 17 Q2 20 17 Q3 20 17 Q4 Revenues: Trailing 4 Quarters Products Services Energy Production (ADGE) $ thousands
Slide 19: 2018 Outlook
2018 Outlook Continue to reinvest cash flow in the core business to drive revenue and gross profit growth Consider various financing opportunities to accelerate growth Move forward with development of Ultera technology, focusing initially on fork trucks Open to opportunistic acquisitions Take proact
Slide 20: Q&A
Q&A Company Information Tecogen, Inc 45 First Ave Waltham, MA 02451 www.Tecogen.com Contact information John Hatsopoulos, Co-CEO 781.622.1122 John.Hatsopoulos@Tecogen.com Jeb Armstrong, Director of Capital Markets 781.466.6413 Jeb.Armstrong@Tecogen.com 20