WALTHAM, Mass., March 28, 2016 /PRNewswire/
-- Tecogen® Inc. (NASDAQ: TGEN, the "Company"), a
manufacturer and installer of high efficiency, ultraclean combined
heat and power products including natural gas engine-driven
cogeneration, cooling systems, and high-efficiency water heaters
for industrial and commercial use, reported revenues of
$21,442,657 for the year ended
December 31, 2015 compared to
$19,342,664 for the same period in
2014, an increase of 11%. Gross profit increased to
$7,633,226 for 2015 compared to
$6,399,064, an increase of 19%.
Speaking about the quarter, co-CEO Benjamin Locke noted, "Although this wasn't our
strongest fourth quarter ever, meaningful progress was made on a
number of key long term growth initiatives, laying the foundation
for future success. The announcement of our emissions joint
venture, the recent gas company selling partnership, building
traction in Ilios water heater sales pipeline, and robust product
backlog set the stage for what we hope will be a successful
2016."
Additionally, the company is pleased to announce the planned
acquisition of the minority interest in heat pump subsidiary Ilios
Dynamics in exchange for Tecogen common stock. Management believes
that sufficient numbers of Ilios shareholders will support the
transaction such that Ilios will become a wholly owned subsidiary
of Tecogen.
Major Highlights:
Financial
- Gross margin in the fourth quarter of 2015 rose to 37.4% from
35.7% in the third quarter of 2015, well above the Company's goal
to deliver greater than 35% quarterly combined gross margin. Full
year 2015 combined gross margin was 35.6% compared to 33.1% in
2014, delivering a 250 basis point year-on-year gross margin
improvement.
- Total product revenue for the full year 2015 grew 16.6% to
$10,055,237 versus just $8,625,034 in 2014. Product revenue growth was
driven by strong sales of cogeneration equipment, posting over 45%
growth in sales in this category over the prior year, more than
offsetting a downturn in chiller and heat pump sales in the period.
This growth in cogeneration sales demonstrates the strong market
traction of our unique InVerde 100 kW CHP unit, similar
strong sales results are expected from the newly launched InVerde
e+.
- In 2015, product gross margin improved by 260 basis points to
29%, a result of ongoing cost saving initiatives and product price
adjustments.
- Total service revenue for the full year 2015 was $11,387,420, 6.2% growth over the $10,717,630 in reported Service related revenues
in 2014.
- In 2015, service gross margin improved by nearly 300 basis
points to 41.4%. The improvement was partially driven by the
increasing percentage of service sites that were Tecogen turnkey
installation projects.
- Sales backlog of equipment and installations was $11.6 million at year end 2015 compared to
$9.9 million at the end of the fourth
quarter of 2014, a 17% increase over prior year end backlog.
Current backlog stands at $12.2
million as of March 21, 2015,
well ahead of the Company's stated goal of backlog above
$10 million.
Sales & Operations
- Gas Company selling partnership formed to bring Ilios water
heaters and Tecochill chillers to commercial and industrial gas
company customers. The exclusive partnership includes a commitment
to joint marketing, dedicated local sales resources from the Gas
Company, qualified lead generation and specific project development
milestones.
- Installation revenues for 2015 increased by 8% to $3,555,239, driven by further traction in turnkey
initiatives.
- Emissions control success continues with highlights including -
- Re-branding of emissions control technology as
Ultera™
- Successful retrofitting of a renewable biogas powered engine at
a waste water treatment plant in Perris,
California with an Ultera ultra-low emissions system.
- Purchase of a retrofit kit by the Gage Canal Company in
Riverside, California for use with
a 15 liter natural gas powered Caterpillar engine at their water
pumping facility.
- Purchase of multiple retrofit kits by a Southern California customer for installation
on natural gas powered standby generators; allowing them to run for
non-emergency purposes. The units were shipped in the fourth
quarter and represent the largest purchase of Ultera retrofit kits
to date.
- Formation of joint venture for the development of Ultera for
gasoline vehicle emissions control.
- Established a sales office in Florida to serve the southeastern United States and the Caribbean, bringing total sales offices to 4
and rounding out coverage of North America.
- Ilios success -
- Delivered revenue and unit sales that were both more than
double any previous year.
- Launch of the new Ilios split air sourced natural gas engine
driven heat pump in February
2015.
- Large Ilios order of 7 water source units to a major biomedical
research laboratory in Florida,
the first large sale of Ilios units into the medical market.
- First sale of Ilios to the hospitality market for installation
in a major 5-star hotel.
- Ilios sales to new markets including the UK, Atlanta, Hawaii, New York
City, and Puerto Rico.
- Addition of new Ilios sales representatives and agents in
multiple territories including Florida, Atlanta and Chicago.
Conference Call Scheduled for Today at 11:00 am ET
Tecogen will host a conference call today to discuss the fourth
quarter and year end results beginning at 11:00 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. We suggest call participants begin
dialing at least 10 minutes before the scheduled starting time.
Please note management will not be conducting a question and answer
session following the presentation of prepared remarks. The
conference call will be recorded and available for playback one
hour after the end of the call.
The earnings press release and supplemental earnings call slides
will be available on the Company website
at www.Tecogen.com in the "Investor Relations" section
under "About Us." The earnings conference call will also be
webcast live. To 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 building'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 Media
& Investor Relations Contact Information:
|
Ariel F. Babcock,
CFA
|
John N.
Hatsopoulos
|
P:
781.466.6413
|
P:
781.622.1120
|
E:
ariel.babcock@tecogen.com
|
E:
john.hatsopoulos@tecogen.com
|
TECOGEN
INC.
|
CONSOLIDATED BALANCE
SHEETS
|
As of
December 31, 2015 and 2014
|
|
|
2015
|
|
2014
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
5,486,526
|
|
|
$
|
1,186,033
|
|
Short-term
investments, restricted
|
294,802
|
|
|
585,702
|
|
Accounts receivable,
net
|
5,286,863
|
|
|
4,750,437
|
|
Unbilled
revenue
|
1,072,391
|
|
|
696,912
|
|
Inventory,
net
|
5,683,043
|
|
|
4,090,221
|
|
Due from related
party
|
1,177,261
|
|
|
600,251
|
|
Deferred financing
costs
|
48,989
|
|
|
50,201
|
|
Prepaid and other
current assets
|
353,105
|
|
|
348,868
|
|
Total current
assets
|
19,402,980
|
|
|
12,308,625
|
|
|
|
|
|
Property, plant and
equipment, net
|
543,754
|
|
|
658,421
|
|
Deferred financing
costs, net of current portion
|
—
|
|
|
48,990
|
|
Intangible assets,
net
|
1,044,611
|
|
|
1,011,300
|
|
Goodwill
|
40,870
|
|
|
40,870
|
|
Other
assets
|
58,425
|
|
|
53,325
|
|
TOTAL
ASSETS
|
$
|
21,090,640
|
|
|
$
|
14,121,531
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
3,311,809
|
|
|
$
|
2,416,313
|
|
Accrued
expenses
|
1,066,860
|
|
|
1,008,153
|
|
Deferred
revenue
|
996,941
|
|
|
1,666,576
|
|
Total current
liabilities
|
5,375,610
|
|
|
5,091,042
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
Deferred revenue, net
of current portion
|
273,162
|
|
|
207,153
|
|
Senior convertible
promissory note, related party
|
3,000,000
|
|
|
3,000,000
|
|
Total
liabilities
|
8,648,772
|
|
|
8,298,195
|
|
|
|
|
|
Commitments and
contingencies (Note 8)
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Tecogen Inc.
stockholders' equity:
|
|
|
|
Common stock, $0.001
par value; 100,000,000 shares authorized; 18,478,990 and 15,905,881
issued and outstanding at December 31, 2015 and 2014,
respectively
|
18,479
|
|
|
15,906
|
|
Additional paid-in
capital
|
34,501,640
|
|
|
25,088,213
|
|
Accumulated
deficit
|
(21,682,437)
|
|
|
(18,955,023)
|
|
Total Tecogen Inc.
stockholders' equity
|
12,837,682
|
|
|
6,149,096
|
|
Noncontrolling
interest
|
(395,814)
|
|
|
(325,760)
|
|
Total stockholders'
equity
|
12,441,868
|
|
|
5,823,336
|
|
|
|
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
|
21,090,640
|
|
|
$
|
14,121,531
|
|
TECOGEN
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
For the Years Ended
December 31, 2015 and 2014
|
|
|
2015
|
|
2014
|
Revenues
|
|
|
|
Products
|
$
|
10,055,237
|
|
|
$
|
8,625,034
|
|
Services
|
11,387,420
|
|
|
10,717,630
|
|
Total
revenues
|
21,442,657
|
|
|
19,342,664
|
|
|
|
|
|
Cost of
sales
|
|
|
|
Products
|
7,137,149
|
|
|
6,347,583
|
|
Services
|
6,672,282
|
|
|
6,596,017
|
|
Total cost of
sales
|
13,809,431
|
|
|
12,943,600
|
|
|
|
|
|
Gross
profit
|
7,633,226
|
|
|
6,399,064
|
|
|
|
|
|
Operating
expenses
|
|
|
|
General and
administrative
|
7,997,512
|
|
|
7,264,630
|
|
Selling
|
1,687,479
|
|
|
1,796,268
|
|
Research and
development
|
591,585
|
|
|
1,041,483
|
|
Total operating
expenses
|
10,276,576
|
|
|
10,102,381
|
|
|
|
|
|
Loss from
operations
|
(2,643,350)
|
|
|
(3,703,317)
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
Interest and other
income
|
14,334
|
|
|
9,710
|
|
Interest
expense
|
(171,944)
|
|
|
(177,345)
|
|
Total other expense,
net
|
(157,610)
|
|
|
(167,635)
|
|
|
|
|
|
Loss before income
taxes
|
(2,800,960)
|
|
|
(3,870,952)
|
|
Consolidated net
loss
|
(2,800,960)
|
|
|
(3,870,952)
|
|
|
|
|
|
Less: Loss
attributable to the noncontrolling interest
|
73,547
|
|
|
125,140
|
|
Net loss attributable
to Tecogen Inc.
|
$
|
(2,727,413)
|
|
|
$
|
(3,745,812)
|
|
|
|
|
|
Net loss per share -
basic and diluted
|
$
|
(0.16)
|
|
|
$
|
(0.24)
|
|
|
|
|
|
Weighted average
shares outstanding - basic and diluted
|
16,860,453
|
|
|
15,607,897
|
|
TECOGEN
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
For the Years Ended
December 31, 2015 and 2014
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
2015
|
|
2014
|
|
|
|
Net loss
|
$
|
(2,800,960)
|
|
|
$
|
(3,870,952)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
271,727
|
|
|
278,865
|
|
Loss (gain) on
disposal of asset
|
(4,631)
|
|
|
1,209
|
|
Provision for losses
on accounts receivable
|
—
|
|
|
53,800
|
|
(Recovery) for
inventory reserve
|
(7,000)
|
|
|
—
|
|
Stock-based
compensation
|
199,500
|
|
|
126,936
|
|
Non-cash interest
expense
|
50,202
|
|
|
50,910
|
|
Changes in
operating assets (increase) decrease in:
|
|
|
|
Short-term
investments, restricted
|
290,900
|
|
|
(1,303)
|
|
Accounts
receivable
|
(536,426)
|
|
|
(1,063,352)
|
|
Inventory
|
(1,585,822)
|
|
|
(746,428)
|
|
Unbilled
revenue
|
(375,479)
|
|
|
(50,514)
|
|
Due from related
party
|
(577,010)
|
|
|
(600,251)
|
|
Prepaid expenses and
other current assets
|
(4,237)
|
|
|
(8,855)
|
|
Other
assets
|
(5,100)
|
|
|
19,100
|
|
Changes in
operating liabilities increase (decrease) in:
|
|
|
|
Accounts
payable
|
895,496
|
|
|
78,267
|
|
Accrued
expenses
|
58,707
|
|
|
(131,401)
|
|
Deferred
revenue
|
(603,626)
|
|
|
1,055,270
|
|
Interest payable,
related party
|
—
|
|
|
(198,450)
|
|
Due to related
party
|
—
|
|
|
(119,667)
|
|
Net cash used in
operating activities
|
(4,733,759)
|
|
|
(5,126,816)
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Purchases of property
and equipment
|
(69,582)
|
|
|
(223,574)
|
|
Disposal of property
and equipment
|
16,874
|
|
|
7,092
|
|
Purchases of
intangible assets
|
(133,032)
|
|
|
(141,959)
|
|
Purchases of
short-term investments
|
—
|
|
|
(584,400)
|
|
Net cash used in
investing activities
|
(185,740)
|
|
|
(942,841)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Payments made on
demand notes payable, related party
|
—
|
|
|
(2,950,000)
|
|
Proceeds from sale of
common stock, net of costs
|
8,859,767
|
|
|
2,340,194
|
|
Proceeds from
exercise of stock options
|
360,225
|
|
|
161,265
|
|
Payments for debt
issuance costs
|
—
|
|
|
(9,668)
|
|
Net cash (used in)
provided by financing activities
|
9,219,992
|
|
|
(458,209)
|
|
Net increase
(decrease) in cash and cash equivalents
|
4,300,493
|
|
|
(6,527,866)
|
|
Cash and cash
equivalents, beginning of the year
|
1,186,033
|
|
|
7,713,899
|
|
Cash and cash
equivalents, end of the year
|
$
|
5,486,526
|
|
|
$
|
1,186,033
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/tecogen-announces-fourth-quarter-and-full-year-2015-financial-results-300241757.html
SOURCE Tecogen Inc.