WALTHAM, Mass., Nov. 10,
2015 /PRNewswire/ -- Tecogen® Inc. (NASDAQ: TGEN), a
manufacturer and installer of high efficiency, ultra-clean combined
heat and power products including natural gas engine-driven
cogeneration, air conditioning systems, and high-efficiency water
heaters for industrial and commercial use, reported revenues of
$4,676,042 for the quarter ended
September 30, 2015 compared to $4,175,863 for the same period in 2014, an
increase of 12%. Gross profit increased to $1,668,931 for the quarter ended
September 30, 2015 compared to $1,089,471, an increase of 53%.
Speaking about the quarter, co-Chief Executive Officer
Benjamin Locke noted, "Third quarter
is our seasonally weakest quarter historically and this year
followed that same pattern. Despite the challenges we delivered
both year-on-year top line growth and margin improvement to produce
our best third quarter to date, a solid result."
In conjunction with the third quarter earnings numbers released
today the Company is also announcing a re-branding of its
breakthrough emissions control technology. Ultera™, Tecogen's Ultra
Low Emissions Reduction system, has reached a phase of development
that merited its own unique stand-alone brand. The Ultera brand
will better differentiate the Company's valuable intellectual
property as it is commercialized for new market applications,
including automotive engines.
"We expect that over time Ultera will come to stand for the
global preeminent force in emissions control technologies across
categories," said Robert Panora,
Tecogen President, Chief Operating Officer, and one of the
inventors of the patented ultra-clean technology.
Major Highlights:
Financial
- Gross margin in the third quarter 2015 increased to 35.7%
compared to 26.1% in 2014, within prior 35-40% gross margin
guidance range and an over 900 basis point improvement from the
prior year period.
- Keeping pace with growing revenues, sales backlog of equipment
and installations grew to $11
million, in line with the Company's goal of consistently
delivering quarter-end product backlog greater than $10 million.
- Gross profit for the third quarter of 2015 was $1,668,931 compared to $1,089,471, over 50% growth when compared to the
same period in 2014.
- Consolidated net loss, attributable to Tecogen, for the three
months ended September 30, 2015 was
$948,842 compared to $1,447,798 for the same period in 2014; an over
30% improvement in consolidated net loss and the lowest third
quarter loss ever reported.
- Net loss per share was $0.06 and
$0.09 for the three months ended
September 30, 2015 and 2014,
respectively.
Sales & Operations
- Product and total revenue grew to the highest ever reported for
a third quarter period.
- Notable sales during the quarter included 5 InVerde 100kW units
for various New York City
multi-unit residential buildings, reinforcing the strong
suitability of Tecogen's clean, efficient, inverter-based CHP
system for that market.
- Emissions program continues to gain traction with key wins in
Southern California and a new
branding initiative around Ultera.
- Ilios continues pace to profitability.
- Largest installation to date, 7 units, successfully
commissioned in the quarter at landmark Florida laboratory.
- Ilios products continued to gain traction in key territories
with additional shipments to Hawaii and the opening up of the Atlanta market.
- Continued execution on sales strategy with the addition of new
sales representatives in both the Atlanta and Chicago markets.
Conference Call Scheduled for Today at 11:30 am ET
Tecogen will host a conference call today to discuss the
third quarter results beginning at
11:30 am ET. To listen to the
call dial (888) 349-0103 within the U.S., (855) 669-9657 from
Canada, or (412) 902-0129
from other international locations. Participants should ask
to be joined to the Tecogen Inc. call. Please begin dialing
at least 10 minutes before the scheduled starting time. The
earnings press release will be available on the Company website at
www.Tecogen.com in the "News and Events" section under "About
Us." The conference call will be recorded and available for
playback one hour after the end of the call. The earnings
conference call will also be webcast live. To view the associated
slides, register for and listen to the webcast, go to
http://investors.tecogen.com/webcast. Following the call, the
webcast will be archived for 30 days.
About Tecogen
Tecogen manufactures, installs, and maintains high efficiency,
ultra-clean, combined heat and power products including natural gas
engine-driven cogeneration, air conditioning systems, and
high-efficiency water heaters for residential, commercial,
recreational and industrial use. The company is known for cost
efficient, environmentally friendly and reliable products for
energy production that, through patented technology, nearly
eliminate criteria pollutants and significantly reduce a customer's
carbon footprint.
In business for over 20 years, Tecogen has shipped more than
2,300 units, supported by an established network of engineering,
sales, and service personnel across the
United States. For more information, please visit
www.tecogen.com.
FORWARD-LOOKING STATEMENTS This press release
contains forward-looking statements under the Private Securities
Litigation Reform Act of 1995 that involve a number of risks and
uncertainties. Important factors could cause actual results
to differ materially from those indicated by such forward-looking
statements, as disclosed on the Company's website and in Securities
and Exchange Commission filings. The statements in this press
release are made as of the date of this press release, even if
subsequently made available by the Company on its website or
otherwise. The Company does not assume any obligation to
update the forward-looking statements provided to reflect events
that occur or circumstances that exist after the date on which they
were made.
Tecogen Investor Relations & Media Contact Information:
Ariel F. Babcock, CFA
P: (781) 466-6413
E: Ariel.Babcock@tecogen.com
John N. Hatsopoulos
P: 781-622-1120
E: jhatsopoulos@tecogen.com
TECOGEN
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
As of
September 30, 2015 and December 31, 2014
|
(unaudited)
|
|
|
September 30,
2015
|
|
December 31,
2014
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
3,970,011
|
|
|
$
|
1,186,033
|
|
Short-term
investments, restricted
|
294,728
|
|
|
585,702
|
|
Accounts receivable,
net
|
4,331,181
|
|
|
4,750,437
|
|
Unbilled
revenue
|
1,801,055
|
|
|
696,912
|
|
Inventory,
net
|
4,699,913
|
|
|
4,090,221
|
|
Due from related
party
|
949,129
|
|
|
600,251
|
|
Deferred financing
costs
|
50,201
|
|
|
50,201
|
|
Prepaid and other
current assets
|
354,859
|
|
|
348,868
|
|
Total current
assets
|
16,451,077
|
|
|
12,308,625
|
|
Property, plant and
equipment, net
|
565,230
|
|
|
658,421
|
|
Intangible assets,
net
|
1,046,316
|
|
|
1,011,300
|
|
Goodwill
|
40,870
|
|
|
40,870
|
|
Deferred financing
costs, net of current portion
|
11,439
|
|
|
48,990
|
|
Other
assets
|
58,425
|
|
|
53,325
|
|
TOTAL
ASSETS
|
$
|
18,173,357
|
|
|
$
|
14,121,531
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
2,841,858
|
|
|
$
|
2,416,313
|
|
Accrued
expenses
|
1,138,914
|
|
|
1,008,153
|
|
Deferred
revenue
|
556,145
|
|
|
1,666,576
|
|
Total current
liabilities
|
4,536,917
|
|
|
5,091,042
|
|
Long-term
liabilities:
|
|
|
|
Deferred revenue, net
of current portion
|
415,712
|
|
|
207,153
|
|
Senior convertible
promissory note, related party
|
3,000,000
|
|
|
3,000,000
|
|
Total
liabilities
|
7,952,629
|
|
|
8,298,195
|
|
Commitments and
contingencies (Note 5)
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Tecogen Inc.
stockholders' equity:
|
|
|
|
Common stock, $0.001
par value; 100,000,000 shares authorized; 17,588,782 and 15,905,881
issued and outstanding at September 30, 2015 and December 31, 2014,
respectively
|
17,589
|
|
|
15,906
|
|
Additional paid-in
capital
|
31,455,719
|
|
|
25,088,213
|
|
Accumulated
deficit
|
(20,884,168)
|
|
|
(18,955,023)
|
|
Total Tecogen Inc.
stockholders' equity
|
10,589,140
|
|
|
6,149,096
|
|
Noncontrolling
interest
|
(368,412)
|
|
|
(325,760)
|
|
Total stockholders'
equity
|
10,220,728
|
|
|
5,823,336
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
|
18,173,357
|
|
|
$
|
14,121,531
|
|
TECOGEN
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
For the three months
ended September 30, 2015 and 2014
|
(unaudited)
|
|
|
Three months
ended
September 30,
|
|
Nine months ended
September 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues
|
|
|
|
|
|
|
|
Products
|
$
|
1,860,860
|
|
|
$
|
1,094,529
|
|
|
$
|
8,744,306
|
|
|
$
|
5,047,231
|
|
Services
|
2,815,182
|
|
|
3,081,334
|
|
|
8,419,001
|
|
|
7,884,246
|
|
Total
revenues
|
4,676,042
|
|
|
4,175,863
|
|
|
17,163,307
|
|
|
12,931,477
|
|
Cost of
sales
|
|
|
|
|
|
|
|
Products
|
1,262,480
|
|
|
1,052,199
|
|
|
6,040,533
|
|
|
4,043,783
|
|
Services
|
1,744,631
|
|
|
2,034,193
|
|
|
5,087,978
|
|
|
5,023,324
|
|
Total cost of
sales
|
3,007,111
|
|
|
3,086,392
|
|
|
11,128,511
|
|
|
9,067,107
|
|
Gross
profit
|
1,668,931
|
|
|
1,089,471
|
|
|
6,034,796
|
|
|
3,864,370
|
|
Operating
expenses
|
|
|
|
|
|
|
|
General and
administrative
|
1,864,529
|
|
|
1,738,429
|
|
|
5,942,161
|
|
|
5,387,098
|
|
Selling
|
521,924
|
|
|
476,601
|
|
|
1,339,982
|
|
|
1,303,329
|
|
Research and
development
|
206,223
|
|
|
329,524
|
|
|
610,703
|
|
|
889,240
|
|
Total operating
expenses
|
2,592,676
|
|
|
2,544,554
|
|
|
7,892,846
|
|
|
7,579,667
|
|
Loss from
operations
|
(923,745)
|
|
|
(1,455,083)
|
|
|
(1,858,050)
|
|
|
(3,715,297)
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Interest and other
income
|
2,157
|
|
|
17,763
|
|
|
11,945
|
|
|
35,927
|
|
Interest
expense
|
(68,216)
|
|
|
(43,317)
|
|
|
(128,626)
|
|
|
(159,863)
|
|
Total other expense,
net
|
(66,059)
|
|
|
(25,554)
|
|
|
(116,681)
|
|
|
(123,936)
|
|
Consolidated net
loss
|
(989,804)
|
|
|
(1,480,637)
|
|
|
(1,974,731)
|
|
|
(3,839,233)
|
|
Less: (Income) loss
attributable to the noncontrolling interest
|
40,962
|
|
|
32,839
|
|
|
45,587
|
|
|
123,683
|
|
Net loss attributable
to Tecogen Inc.
|
$
|
(948,842)
|
|
|
$
|
(1,447,798)
|
|
|
$
|
(1,929,144)
|
|
|
$
|
(3,715,550)
|
|
Net loss per share -
basic and diluted
|
$
|
(0.06)
|
|
|
$
|
(0.09)
|
|
|
$
|
(0.12)
|
|
|
$
|
(0.25)
|
|
Weighted average
shares outstanding - basic and diluted
|
17,153,999
|
|
|
15,447,726
|
|
|
16,575,879
|
|
|
15,160,041
|
|
TECOGEN
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
For the nine months
ended September 30, 2015 and 2014
|
(unaudited)
|
|
|
September
30,
|
|
2015
|
|
2014
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Consolidated net
loss
|
$
|
(1,974,731)
|
|
|
$
|
(3,839,233)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
205,262
|
|
|
250,655
|
|
Change in provision
for allowance on accounts receivable
|
—
|
|
|
18,000
|
|
Recovery for
inventory reserve
|
(25,000)
|
|
|
—
|
|
Stock-based
compensation
|
90,971
|
|
|
120,972
|
|
Non-cash interest
expense
|
37,550
|
|
|
—
|
|
Gain on sale of
assets
|
(4,631)
|
|
|
—
|
|
Changes in
operating assets and liabilities
|
|
|
|
(Increase) decrease
in:
|
|
|
|
Short term
investments
|
290,974
|
|
|
—
|
|
Accounts
receivable
|
419,256
|
|
|
(796,659)
|
|
Unbilled
revenue
|
(1,104,143)
|
|
|
521,327
|
|
Inventory,
net
|
(584,692)
|
|
|
(1,563,642)
|
|
Due from related
party
|
(348,878)
|
|
|
(125,069)
|
|
Prepaid expenses and
other current assets
|
(5,991)
|
|
|
1,756
|
|
Other non-current
assets
|
(5,100)
|
|
|
19,100
|
|
Increase (decrease)
in:
|
|
|
|
Accounts
payable
|
425,545
|
|
|
747,810
|
|
Accrued
expenses
|
130,761
|
|
|
(149,470)
|
|
Deferred
revenue
|
(901,872)
|
|
|
1,315,434
|
|
Due to related
party
|
—
|
|
|
(119,667)
|
|
Interest payable,
related party
|
—
|
|
|
(198,450)
|
|
Net cash used in
operating activities
|
(3,354,719)
|
|
|
(3,797,136)
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Purchases of property
and equipment
|
(48,827)
|
|
|
(148,833)
|
|
Proceeds from sale of
assets
|
16,874
|
|
|
—
|
|
Disposal of property
and equipment
|
|
|
7,569
|
|
Purchases of
intangible assets
|
(110,502)
|
|
|
(130,905)
|
|
Purchases of
short-term investments, restricted
|
—
|
|
|
(585,038)
|
|
Net cash used in
investing activities
|
(142,455)
|
|
|
(857,207)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Payments for debt
issuance costs
|
—
|
|
|
(9,668)
|
|
Proceeds (payments)
on demand notes payable and line of credit to related
party
|
—
|
|
|
(2,950,000)
|
|
Proceeds from sale of
restricted common stock, net
|
5,920,927
|
|
|
2,340,194
|
|
Proceeds from the
exercise of stock options
|
360,225
|
|
|
6,000
|
|
Net cash provided by
(used in) financing activities
|
6,281,152
|
|
|
(613,474)
|
|
Net increase
(decrease) in cash and cash equivalents
|
2,783,978
|
|
|
(5,267,817)
|
|
Cash and cash
equivalents, beginning of the period
|
1,186,033
|
|
|
7,713,899
|
|
Cash and cash
equivalents, end of the period
|
$
|
3,970,011
|
|
|
$
|
2,446,082
|
|
Supplemental
disclosures of cash flows information:
|
|
|
|
Cash paid for
interest
|
$
|
91,076
|
|
|
$
|
294,219
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/tecogen-announces-record-third-quarter-results--rebranding-of-emissions-technology-300175563.html
SOURCE Tecogen Inc.