Tecogen Announces First Quarter Earnings

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WALTHAM, Mass., May 7, 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 $6,103,434 for the quarter ended March 31, 2015 compared to $4,215,757 for the same period in 2014, an increase of 45%.  Gross profit increased to $2,224,975 for the quarter ended March 31, 2015 compared to $1,426,226, an increase of 56%.

Major Highlights:

Financial

  • Gross margin in the first quarter 2015 increased by 8.0% to 36.5% compared to 33.8% in 2014.
  • Keeping pace with growing revenues, sales backlog of equipment and installations continues at $10.9 million.
  • Gross profit for the first quarter of 2015 was $2,224,975 compared to $1,426,226, for the same period in 2014.
  • Consolidated net loss for the three months ended March 31, 2015 was $617,464 compared to $1,020,045 for the same period in 2014.
  • Net loss per share was $0.04 and $0.07 for the three months ended March 31, 2015 and 2014, respectively.

Sales & Operations

  • The Company shipped 15 InVerde modules in the quarter, the largest first quarter of the 100kW Cogeneration units since its introduction.
  • Despite the unusual winter weather in our largest market, installation and service revenue in the first quarter 2015 grew by 13% to $2,565,559 compared to 2014.
  • Ultra Emissions programs continued to expand:
    • Previously announced large bio-fuel engine was completed and shipped in the quarter.
    • Standardized production design for standby generator completed.
    • Patent portfolio of emission technology continued to expand with additional US patents allowed and multiple new countries allowed core emissions patent.
  • Ilios orders continue to grow internationally with 2 units in the Caribbean and an additional order in the United Kingdom.
  • Current Ilios orders and backlog for 2015 stands at 14 units, more than double any previous year and are on track to surpass $1.0 million dollars in revenue.

Conference Call Scheduled for Today at 10:30 am ET

Tecogen will host a conference call today to discuss the first quarter results beginning at 10:30 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 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.

CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31, 2015 and December 31, 2014

(unaudited)





March 31,

2015

December 31,

2014

ASSETS


Current assets:


Cash and cash equivalents

$

1,983,983

$

1,186,033

Short-term investments, restricted

586,055

585,702

Accounts receivable, net

5,410,044

4,750,437

Unbilled revenue

850,817

696,912

Inventory, net

3,756,152

4,090,221

Due from related party

272,408

600,251

Deferred financing costs

50,201

50,201

Prepaid and other current assets

402,031

348,868

Total current assets

13,311,691

12,308,625

Property, plant and equipment, net

627,400

658,421

Intangible assets, net

1,035,254

1,011,300

Goodwill

40,870

40,870

Deferred financing costs, net of current portion

36,607

48,990

Other assets

53,325

53,325

TOTAL ASSETS

$

15,105,147

$

14,121,531




LIABILITIES AND STOCKHOLDERS' EQUITY


Current liabilities:


Accounts payable

$

3,097,473

$

2,416,313

Accrued expenses

1,278,327

1,008,153

Deferred revenue

743,472

1,666,576

Total current liabilities

5,119,272

5,091,042

Long-term liabilities:


Deferred revenue, net of current portion

365,133

207,153

Senior convertible promissory note, related party

3,000,000

3,000,000

Total liabilities

8,484,405

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;

16,338,782 and 15,905,881 issued and outstanding at March 31, 2015

and December 31, 2014, respectively

16,339

15,906

Additional paid-in capital

26,536,965

25,088,213

Accumulated deficit

(19,572,488)

(18,955,023)

Total Tecogen Inc. stockholders' equity

6,980,816

6,149,096

Noncontrolling interest

(360,074)

(325,760)

Total stockholders' equity

6,620,742

5,823,336

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

15,105,147

$

14,121,531








The accompanying notes are an integral part of these consolidated financial statements.

 

 

TECOGEN INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the three months ended March 31, 2015 and 2014

(unaudited)



Three months ended March 31,

2015

2014

Revenues


Products

$

3,537,875

$

1,944,776

Services

2,565,559

2,270,981

Total revenues

6,103,434

4,215,757




Cost of sales


Products

2,553,638

1,404,439

Services

1,324,821

1,385,092

Total cost of sales

3,878,459

2,789,531






Gross profit

2,224,975

1,426,226




Operating expenses


General and administrative

2,187,129

1,743,992

Selling

493,674

421,620

Research and development

176,163

308,134

Total operating expenses

2,856,966

2,473,746






Loss from operations

(631,991)

(1,047,520)




Other income (expense)


Interest and other income

9,103

3,085

Interest expense

(30,059)

(34,770)

Total other expense, net

(20,956)

(31,685)

Consolidated net loss

(652,947)

(1,079,205)

Less: Loss attributable to the non-controlling interest

35,483

59,160

Net loss attributable to Tecogen Inc.

$

(617,464)

$

(1,020,045)








Net loss per share - basic and diluted

$

(0.04)

$

(0.07)

Weighted average shares outstanding - basic and diluted

16,224,642

14,796,413






The accompanying notes are an integral part of these consolidated financial statements.

 

 

TECOGEN INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the three months ended March 31, 2015 and 2014

(unaudited)



March 30,

2015

2014

CASH FLOWS FROM OPERATING ACTIVITIES:


Consolidated net loss

$

(652,947)

$

(1,079,205)

Adjustments to reconcile net loss to net cash used in operating activities:


Depreciation and amortization

67,239

72,258

Change in provision for allowance on accounts receivable

—

50,600

Recovery for inventory reserve

(40,000)

—

Stock-based compensation

93,254

32,491

Non-cash interest expense

12,383

13,343

Gain on sale of assets

(5,569)

—

Changes in operating assets and liabilities


(Increase) decrease in:


Short term investments

(353)

(647)

Accounts receivable

(659,607)

(559,604)

Unbilled revenue

(153,905)

(71,710)

Inventory, net

374,069

(129,464)

Due from related party

327,843

(306,305)

Prepaid expenses and other current assets

(53,163)

(135,875)

Other non-current assets

—

32,000

Increase (decrease) in:


Accounts payable

681,160

(474,002)

Accrued expenses

270,174

267,898

Deferred revenue

(765,124)

452,490

Due to related party

—

(119,667)

Interest payable, related party

—

(198,450)

Net cash used in operating activities

(504,546)

(2,153,849)

CASH FLOWS FROM INVESTING ACTIVITIES:


Purchases of property and equipment

(12,935)

(55,964)

Proceeds from sale of assets

5,569

—

Purchases of intangible assets

(47,237)

(36,422)

Purchases of short-term investments, restricted

—

(583,073)

Net cash used in investing activities

(54,603)

(675,459)

CASH FLOWS FROM FINANCING ACTIVITIES:


Proceeds (payments) on demand notes payable and line of credit to related party

—

(2,950,000)

Proceeds from sale of restricted common stock, net

996,874

6,300

Proceeds from the exercise of stock options

360,225

6,000

Net cash provided by (used in) financing activities

1,357,099

(2,937,700)

Net increase (decrease) in cash and cash equivalents

797,950

(5,767,008)

Cash and cash equivalents, beginning of the period

1,186,033

7,713,899

Cash and cash equivalents, end of the period

$

1,983,983

$

1,946,891

Supplemental disclosures of cash flows information:


Cash paid for interest

$

30,059

$

233,220








The accompanying notes are an integral part of these consolidated financial statements.

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/tecogen-announces-first-quarter-earnings-300079519.html

SOURCE Tecogen Inc.

Released May 7, 2015