Tecogen Announces Fourth Quarter and Year End Earnings

WALTHAM, Mass., March 24, 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 $19,342,664 for the year ended December 2014 compared to $15,849,869 for the same period in 2013, an increase of 22%. Gross profit increased to $6,399,064 for 2014 compared to $5,030,128, an increase of 27%.

Major Highlights:

Financial

Tecogen Inc. turned a net profit of $40,000 in the fourth quarter when excluding the $71,000 loss in our subsidiary Ilios.
Gross margin in the fourth quarter of 2014 rose to 40% from 26% in the third quarter of 2014. Gross margin also increased from 33% in the fourth quarter in 2013.
Sales backlog of equipment and installations was $12.2 million as of March 21, 2015, compared to $9.9 million at the end of the fourth quarter of 2014.
Gross profit for the fourth quarter of 2014 was $2,534,694 compared to $2,011,659, for the same period in 2013.
Consolidated net loss for the three months ended December 31, 2014 was $30,263 compared to $110,937 for the same period in 2013.
Net loss per share was $0.00 and $0.01 for the three months ended December 31, 2014 and 2013, respectively.

Sales & Operations

Tecogen shipped 7 chillers in the fourth quarter. Chiller sales for the year increased by 184% to $3,260,000.
Installation revenues for 2014 increased by 35% to $3,280,000.
Sold Ultra emissions retrofit kits for new applications.
- First biofuel application of an emission retrofit kit as a replacement to a decommissioned fuel cell.
- Gage Canal Company, Riverside, California purchased a retrofit to their natural gas water pumping facility.
- Successful demonstration of retrofit to commercial 130kW standby natural gas generator.
Established a sales office in Florida to serve the southeastern United States and the Caribbean.
Large Ilios order of 7 water source units to a biotechnology laboratory in Florida in early 2015.

Conference Call Scheduled for Today at 10:00 am ET
Tecogen will host a conference call today to discuss the fourth quarter and year end results beginning at 10:00 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. 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 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 2,000 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 Contact Information:
David A. Garrison
Tecogen Inc.
P: 781-466-6403
E: david.garrison@tecogen.com

Tecogen Investor Contact Information:
John N. Hatsopoulos
P: 781-622-1120
E: jhatsopoulos@tecogen.com

TECOGEN INC.
CONSOLIDATED BALANCE SHEETS
As of December 31, 2014 and 2013

	2014		2013
ASSETS
Current assets:
Cash and cash equivalents	$	1,186,033	$	7,713,899
Short-term investments, restricted	585,702		—
Accounts receivable, net	4,750,437		3,740,885
Unbilled revenue	696,912		646,398
Inventory, net	4,090,221		3,343,793
Due from related party	600,251		—
Deferred financing costs	50,201		140,433
Prepaid and other current assets	348,868		340,013
Total current assets	12,308,625		15,925,421

Property, plant and equipment, net	658,421		638,026
Deferred financing costs, net of current portion	48,990		—
Intangible assets, net	1,011,300		953,327
Goodwill	40,870		40,870
Other assets	53,325		72,425
TOTAL ASSETS	$	14,121,531	$	17,630,069

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Demand notes payable and line of credit, related party	$	—	$	2,950,000
Senior convertible promissory note, related party	—		3,000,000
Accounts payable	2,416,313		2,338,046
Accrued expenses	1,008,153		1,139,554
Deferred revenue	1,666,576		613,915
Due to related party	—		119,667
Interest payable, related party	—		198,450
Total current liabilities	5,091,042		10,359,632

Long-term liabilities:
Deferred revenue, net of current portion	207,153		204,544
Senior convertible promissory note, related party	3,000,000		—
Total liabilities	8,298,195		10,564,176

Commitments and contingencies (Note 8)	—		—

Stockholders' equity:
Tecogen Inc. stockholders' equity:
Common stock, $0.001 par value; 100,000,000 shares authorized; 15,905,881 and 15,155,200 issued and outstanding at December 31, 2014 and 2013, respectively	15,906		15,155
Additional paid-in capital	25,088,213		22,463,996
Accumulated deficit	(18,955,023)		(15,209,212)
Total Tecogen Inc. stockholders' equity	6,149,096		7,269,939
Noncontrolling interest	(325,760)		(204,046)
Total stockholders' equity	5,823,336		7,065,893

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	14,121,531	$	17,630,069

TECOGEN INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
For The Three Months Ended
(Unaudited)

	December 31, 2014		September 30, 2014		June 30, 2014		March 31, 2014
Revenues
Products	$	3,577,803	$	1,094,529	$	2,007,926	$	1,944,776
Services	2,833,384		3,081,334		2,531,931		2,270,981
Total revenues	6,411,187		4,175,863		4,539,857		4,215,757

Cost of sales
Products	2,303,800		1,052,199		1,587,145		1,404,439
Services	1,572,693		2,034,193		1,604,039		1,385,092
Total cost of sales	3,876,493		3,086,392		3,191,184		2,789,531

Gross profit	2,534,694		1,089,471		1,348,673		1,426,226

Operating expenses
General and administrative	1,840,487		1,751,080		1,929,071		1,743,992
Selling	492,939		476,601		405,108		421,620
Research and development	152,243		329,524		251,582		308,134
Total operating expenses	2,485,669		2,557,205		2,585,761		2,473,746

Loss from operations	49,025		(1,467,734)		(1,237,088)		(1,047,520)

Other income (expense)
Interest and other income	831		17,763		15,079		3,085
Interest expense	(81,576)		(30,666)		(57,382)		(34,770)
Total other expense, net	(80,745)		(12,903)		(42,303)		(31,685)

Loss before income taxes	(31,720)		(1,480,637)		(1,279,391)		(1,079,205)
Consolidated net loss	(31,720)		(1,480,637)		(1,279,391)		(1,079,205)

Less: Loss attributable to the noncontrolling interest	1,457		32,839		31,684		59,160
Net loss attributable to Tecogen Inc.	$	(30,263)	$	(1,447,798)	$	(1,247,707)	$	(1,020,045)

Net loss per share - basic and diluted	$	—	$	(0.09)	$	(0.08)	$	(0.07)

Weighted average shares outstanding - basic and diluted	15,863,915		15,447,726		15,227,079		14,796,413

TECOGEN INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Years Ended December 31, 2014 and 2013

	2014		2013
Revenues
Products	$	8,625,034	$	6,346,050
Services	10,717,630		9,503,819
Total revenues	19,342,664		15,849,869

Cost of sales
Products	6,347,583		4,709,767
Services	6,596,017		6,109,974
Total cost of sales	12,943,600		10,819,741

Gross profit	6,399,064		5,030,128

Operating expenses
General and administrative	7,264,630		5,931,144
Selling	1,796,268		1,423,587
Research and development	1,041,483		1,086,989
Aborted public offering costs	—		258,512
Total operating expenses	10,102,381		8,700,232

Loss from operations	(3,703,317)		(3,670,104)

Other income (expense)
Interest and other income	9,710		3,958
Interest expense	(177,345)		(141,065)
Total other expense, net	(167,635)		(137,107)

Loss before income taxes	(3,870,952)		(3,807,211)
Consolidated net loss	(3,870,952)		(3,807,211)

Less: Loss attributable to the noncontrolling interest	125,140		357,722
Net loss attributable to Tecogen Inc.	$	(3,745,812)	$	(3,449,489)

Net loss per share - basic and diluted	$	(0.24)	$	(0.26)

Weighted average shares outstanding - basic and diluted	15,607,897		13,385,155

TECOGEN INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2014 and 2013

	2014		2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(3,870,952)	$	(3,807,211)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	278,865		256,459
Loss on Disposal of Asset	1,209		—
Provision for losses on accounts receivable	53,800		50,600
Provision (recovery) for inventory reserve	—		(32,000)
Stock-based compensation	126,936		18,367
Non-cash interest expense	50,910		—
Changes in operating assets (increase) decrease in:
Short-term investments, restricted	(1,303)		(202)
Accounts receivable	(1,063,352)		(1,091,242)
Inventory	(746,428)		62,229
Unbilled revenue	(50,514)		(646,398)
Due from related party	(600,251)		55,837
Prepaid expenses and other current assets	(8,855)		62,833
Other assets	19,100		(33,000)
Changes in operating liabilities increase (decrease) in:
Accounts payable	78,267		1,187,036
Accrued expenses	(131,401)		331,632
Deferred revenue	1,055,270		(2,186)
Interest payable, related party	(198,450)		83,560
Due to related party	(119,667)		119,667
Net cash used in operating activities	(5,126,816)		(3,384,019)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(223,574)		(202,700)
Disposal of property and equipment	7,092		—
Purchases of intangible assets	(141,959)		(397,950)
Cash paid for asset acquisition	—		(497,800)
Purchases of short-term investments	(584,400)		—
Maturities of short-term investments	—		182,061
Net cash used in investing activities	(942,841)		(916,389)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments made on demand notes payable, related party	(2,950,000)		(37,500)
Proceeds from issuance of demand notes payable and line of credit, related party	—		1,650,000
Proceeds from sale of common stock, net of costs	2,340,194		5,966,805
Proceeds from exercise of stock options	161,265		3,000
Proceeds from issuance of senior convertible promissory note	—		3,000,000
Payments for debt issuance costs	(9,668)		(140,433)
Purchase of restricted stock	—		(350)
Net cash (used in) provided by financing activities	(458,209)		10,441,522
Net increase (decrease) in cash and cash equivalents	(6,527,866)		6,141,114
Cash and cash equivalents, beginning of the year	7,713,899		1,572,785
Cash and cash equivalents, end of the year	$	1,186,033	$	7,713,899

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/tecogen-announces-fourth-quarter-and-year-end-earnings-300055035.html

SOURCE Tecogen Inc.

Released March 24, 2015

Press Releases

Tecogen Announces Fourth Quarter and Year End Earnings