via NewMediaWire -- Tecogen Inc. (OTCQX:TGEN), a leading
manufacturer of clean energy products, reported revenues of $6.6
million and a net loss of $0.3 million for the quarter ended
September 30, 2022 compared to revenues of $5.0 million, and a
net profit of $1.5 million in 2021. For the nine months ended
September 30, 2022 revenues were $20.5 million and a net loss of
$1.0 million compared to revenues of $17.2 million and net income
of $3.6 million for the same period in 2021. The positive net
income in Q3 2021 and the nine months ended September 30, 2021 was
primarily due to the benefit from the CARES Act payroll support
programs.
Key Takeaways
Net Income and Earnings Per Share
- Net loss in Q3 2022 was $0.3 million compared to net income of
$1.5 million in Q3 2021, a decrease of $1.7 million, primarily due
to forgiveness of the PPP loan and the recognition of Employee
Retention Credit in Q3 2021. EPS was a loss of $0.01/share and net
income of $0.06/share in Q3 2022 and Q3 2021, respectively.
- Net loss in YTD 2022 was $1.0 million compared to net income of
$3.6 million in 2021, a decrease of $4.7 million, primarily due to
the forgiveness of the PPP loan and the recognition of Employee
Retention Credits in 2021. EPS was a net loss of $0.04/share and
net income of $0.14/share in YTD 2022 and YTD 2021,
respectively.
Profit/Loss from Operations
- Loss from operations for the three months ended
September 30, 2022 was $0.2 million compared to a loss of $0.9
million for the same period in 2021, a decrease of $0.7 million.
Increased Products and Services revenue and gross profit
caused the decrease in loss from operations.
- Loss from operations for YTD 2022 was $1.0 million compared to
a loss of $1.4 million for the same period in 2021, a decrease of
$0.4 million. Increased Product revenue and gross profit caused the
decrease in loss from operations.
Revenues
- Revenues for the quarter ended September 30, 2022 were
$6.6 million compared to $5.0 million for the same period in 2021,
a 31.9% increase.
- Product revenue was $3.2 million in Q3 2022 compared to $1.9
million in the same period in 2021, an increase of 71.4%, primarily
due to increased chiller and cogeneration sales into our key market
segments including multi-unit residential.
- Services revenue was $3.1 million in Q3 2022 compared to $2.8
million in the same period in 2021, an increase of 8.8%, primarily
due to increased service contract revenue.
- Energy Production revenue increased 5.5%, to $333 thousand in
Q2 2022 compared to $315 thousand in the same period in 2021.
- Revenues for YTD 2022 were $20.5 million compared to $17.2
million for the same period in 2021, a 18.9% increase.
- Product revenue was $10.2 million YTD 2022 compared to $6.4
million in the same period in 2021, an increase of 57.7%, primarily
due to increased cogeneration and chiller sales into our key market
segments including controlled environment agriculture.
- Services revenue was $9.0 million YTD 2022 compared to $9.4
million in the same period in 2021, a decline of 4.2%, primarily
due to reduced lower margin installation activity. Services
contract revenue increased 4.8% to $9.0 million YTD 2022 compared
to $8.6 million in the same period of 2021.
- Energy Production revenue decreased 5.3%, to $1.27 million in
YTD 2022 compared to $1.34 million in the same period in 2021 due
to site closures.
Gross Profit and Gross Margin
- Gross profit for Q3 2022 was $2.9 million compared to $2.3
million in the third quarter of 2021. Gross margin decreased to
43.7% in the third quarter of 2022 compared to 46.7% for the same
period in 2021 due to higher material costs. Products margin
decreased from 44.6% to 35.3%. Services margin increased from
48.1% to 51.8% and Energy Production margin increased from 45.9% to
49.5% quarter to quarter.
- Gross profit for YTD 2022 was $8.7 million compared to $8.1
million in the same period in 2021. Gross margin decreased to 42.4%
YTD 2022 compared to 47.3% for the same period in 2021 due to
higher material costs. Product margin decreased from 44.1% to
33.7%. Services margin increased from 50.4% to 52.2% and
Energy Production margin increased from 40.5% to 42.7% year over
year.
Operating Expenses
- Operating expenses decreased by 4.4% to $3.1 million for the
third quarter of 2022 compared to $3.3 million in the same period
in 2021 due to lower bad debt expense, partially offset by
increased R&D costs.
- Operating expenses increased by 1.5% to $9.6 million YTD 2022
compared to $9.5 million in the same period in 2021 due to increase
payroll and R&D costs, partially offset by lower bad debt
expense in 2022.
Adjusted EBITDA(1) was negative $72 thousand for
the third quarter of 2022 compared to a negative $197 thousand for
the third quarter of 2021. Adjusted EBITDA(1) was negative $521
thousand YTD 2022 compared to $391 thousand YTD 2021. (Adjusted
EBITDA is defined as net income or loss attributable to Tecogen,
adjusted for interest, income taxes, depreciation and amortization,
stock-based compensation expense, unrealized gain or loss on equity
securities, goodwill impairment charges and other non-cash
non-recurring charges or gains including abandonment of intangible
assets and the extinguishment of debt. See the table following the
Condensed Consolidated Statements of Operations for a
reconciliation from net income (loss) to Adjusted EBITDA, as well
as important disclosures about the company's use of Adjusted
EBITDA).
“I'm encouraged by the year on year revenue
growth. As electricity rates continue to rise, the need for
customers to find alternative ways to reduce energy expenses is
making our products increasingly attractive. The 40% investment tax
credit (a 30% base and 10% bonus for domestic manufacturers) makes
the climate favorable for energy efficient products such as ours.
In particular the availability of the ITC direct pay option for
non-profits makes the value proposition for our cogeneration and
chillers incredibly compelling," commented Benjamin Locke,
Tecogen's Chief Executive Officer.
Conference Call Scheduled for November 10, 2022, at
11:00 am ET
Tecogen will host a conference call on
November 10, 2022 to discuss the third quarter results
beginning at 11:00 am eastern time. To listen to the call
please dial (877) 407-7186 within the U.S. and Canada, or (201)
689-8052 from other international locations. Participants
should ask to be joined to the Tecogen Third Quarter 2022 earnings
call. Please begin dialing 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 earnings conference call will be
webcast live. To view the associated slides, register for and
listen to the webcast, go to
https://ir.tecogen.com/ir-calendar. Following the call, the
recording will be archived for 14 days.
The earnings conference call will be recorded
and available for playback one hour after the end of the
call. To listen to the playback, dial (877) 660-6853
within the U.S. and Canada, or (201) 612-7415 from other
international locations and use Conference Call ID#:
13672659.
About Tecogen
Tecogen Inc. designs, manufactures, sells, installs, and
maintains high efficiency, ultra-clean, cogeneration products
including engine-driven combined heat and power, air conditioning
systems, and high-efficiency chillers and water heaters for
residential, commercial, recreational and industrial use that
provide cost effective, environmentally friendly and reliable
products for energy production that nearly eliminate criteria
pollutants and significantly reduce a customer’s carbon
footprint.
In business for over 35 years, Tecogen has
shipped more than 3,150 units, supported by an established network
of engineering, sales, and service personnel across the United
States. For more information, please visit www.tecogen.com or
contact us for a free Site Assessment.
Tecogen, InVerde e+, Ilios, Tecochill, Tecopower, Tecofrost,
Tecopack, Ultera, and NetZero Greens are registered or pending
trademarks of Tecogen Inc.
Forward Looking Statements
This press release and any 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," "expect," "anticipate,"
"intend," "plan," "estimate," "project," "target,"
"potential," "will," "should," "could," "likely," or "may" and
similar expressions intended to identify forward-looking
statements. These statements are only predictions and involve known
and unknown risks, uncertainties, and other factors that may cause
our actual results to differ materially from those expressed or
implied by such forward-looking statements. Given these
uncertainties, you should not place undue reliance on these
forward-looking statements. Forward-looking statements speak only
as of the date on which they are made, and we undertake no
obligation to update or revise any forward-looking statements.
In addition to those factors described in our
Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and
on our Form 8-K, under “Risk Factors”, among the factors that could
cause actual results to differ materially from past and projected
future results are the following: fluctuations in demand for our
products and services, competing technological developments, issues
relating to research and development, the availability of
incentives, rebates, and tax benefits relating to our products and
services, changes in the regulatory environment relating to our
products and services, integration of acquired business operations,
and the ability to obtain financing on favorable terms to fund
existing operations and anticipated growth.
In addition to GAAP financial measures, this
press release includes certain non-GAAP financial measures,
including adjusted EBITDA which excludes certain expenses as
described in the presentation. We use Adjusted EBITDA as an
internal measure of business operating performance and believe that
the presentation of non-GAAP financial measures provides a
meaningful perspective of the underlying operating performance of
our current business and enables investors to better understand and
evaluate our historical and prospective operating performance by
eliminating items that vary from period to period without
correlation to our core operating performance and highlights trends
in our business that may not otherwise be apparent when relying
solely on GAAP financial measures.
Tecogen Media & Investor Relations Contact
Information:
Benjamin LockeP: 781-466-6402E: Benjamin.Locke@tecogen.com
TECOGEN INC.CONDENSED
CONSOLIDATED BALANCE SHEETS(unaudited)
|
September 30, 2022 |
|
December 31, 2021 |
ASSETS |
|
|
|
Current
assets: |
|
|
|
Cash and cash
equivalents |
$2,880,160 |
|
$3,614,463 |
Accounts
receivable, net |
8,598,302 |
|
8,482,286 |
Employee
retention credit receivable |
713,269 |
|
1,276,021 |
Inventories,
net |
8,712,021 |
|
7,764,989 |
Unbilled
revenue |
1,956,002 |
|
3,258,189 |
Prepaid and
other current assets |
507,996 |
|
578,801 |
Total current
assets |
23,367,750 |
|
24,974,749 |
Long-term
assets: |
|
|
|
Property,
plant and equipment, net |
1,661,694 |
|
1,782,944 |
Right of use
assets |
1,404,034 |
|
1,869,210 |
Intangible
assets, net |
1,047,296 |
|
1,181,023 |
Goodwill |
2,406,156 |
|
2,406,156 |
Other
assets |
184,393 |
|
148,140 |
TOTAL
ASSETS |
$30,071,323 |
|
$32,362,222 |
|
|
|
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable |
$3,325,452 |
|
$3,508,354 |
Accrued
expenses |
2,263,009 |
|
2,343,728 |
Deferred
revenue |
1,282,971 |
|
1,957,752 |
Lease
obligations, current |
676,974 |
|
641,002 |
Unfavorable
contract liability, current |
265,854 |
|
330,032 |
Total current
liabilities |
7,814,260 |
|
8,780,868 |
Long-term
liabilities: |
|
|
|
Deferred
revenue, net of current portion |
395,561 |
|
208,456 |
Lease
obligations, net of current portion |
796,696 |
|
1,315,275 |
Unfavorable
contract liability, net of current portion |
706,667 |
|
929,474 |
Total
liabilities |
9,713,184 |
|
11,234,073 |
|
|
|
|
Stockholders’
equity: |
|
|
|
Tecogen Inc.
shareholders’ equity: |
|
|
|
Common stock,
$0.001 par value; 100,000,000 shares authorized; 24,850,261 issued
and outstanding at September 30, 2022 and December 31, 2021 |
24,850 |
|
24,850 |
Additional
paid-in capital |
57,271,577 |
|
57,016,859 |
Accumulated
deficit |
(36,857,142) |
|
(35,833,621) |
Total Tecogen
Inc. stockholders’ equity |
20,439,285 |
|
21,208,088 |
Non-controlling interest |
(81,146) |
|
(79,939) |
Total
stockholders’ equity |
20,358,139 |
|
21,128,149 |
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY |
$30,071,323 |
|
$32,362,222 |
|
|
|
|
TECOGEN INC. CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited)
|
Three Months Ended |
|
September 30, 2022 |
|
September 30, 2021 |
Revenues |
|
|
|
Products |
$3,206,732 |
|
$1,871,332 |
Services |
3,078,604 |
|
2,829,244 |
Energy production |
332,774 |
|
315,292 |
Total
revenues |
6,618,110 |
|
5,015,868 |
Cost of
sales |
|
|
|
Products |
2,074,243 |
|
1,036,396 |
Services |
1,482,355 |
|
1,467,019 |
Energy production |
168,178 |
|
170,518 |
Total cost of
sales |
3,724,776 |
|
2,673,933 |
Gross
profit |
2,893,334 |
|
2,341,935 |
Operating
expenses |
|
|
|
General and
administrative |
2,343,449 |
|
2,473,190 |
Selling |
567,529 |
|
656,885 |
Research and
Development |
202,138 |
|
122,031 |
Gain on
disposition of assets |
(5,486) |
|
— |
Total
operating expenses |
3,107,630 |
|
3,252,106 |
Loss from
operations |
(214,296) |
|
(910,171) |
Other income
(expense) |
|
|
|
Other income
(expense), net |
(7,140) |
|
(4,798) |
Interest
expense |
(2,280) |
|
(3,855) |
Employee
retention credit |
— |
|
562,253 |
Unrealized
loss on investment securities |
— |
|
(37,497) |
Total other
income (expense), net |
(9,420) |
|
2,401,758 |
Income (loss)
before provision for state income taxes |
(223,716) |
|
1,491,587 |
Provision for
state income taxes |
5,922 |
|
3,000 |
Consolidated
net income (loss) |
(229,638) |
|
1,488,587 |
Income
attributable to the non-controlling interest |
(27,074) |
|
(21,890) |
Net income
(loss) attributable to Tecogen Inc. |
$(256,712) |
|
$1,466,697 |
|
|
|
|
Net income per
share - basic |
$(0.01) |
|
$0.06 |
Net income per
share - diluted |
$(0.01) |
|
$0.06 |
Weighted
average shares outstanding - basic |
24,850,261 |
|
24,850,261 |
Weighted
average shares outstanding - diluted |
24,850,261 |
|
25,154,905 |
|
|
|
|
|
Three Months Ended |
|
September 30, 2022 |
|
September 30, 2021 |
Non-GAAP
financial disclosure (1) |
|
|
|
Net income
(loss) attributable to Tecogen Inc. |
$(256,712) |
|
$1,466,697 |
Interest
expense, net |
2,280 |
|
8,653 |
Income
taxes |
5,922 |
|
3,000 |
Depreciation
& amortization, net |
107,250 |
|
116,166 |
EBITDA |
(141,260) |
|
1,594,516 |
Stock based
compensation |
69,118 |
|
56,889 |
Unrealized
loss on investment securities |
— |
|
37,497 |
Adjusted
EBITDA |
$(72,142) |
|
$(196,753) |
|
|
|
|
TECOGEN INC. CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited)
|
Nine Months Ended |
|
September 30, 2022 |
|
September 30, 2021 |
Revenues |
|
|
|
Products |
$10,156,328 |
|
$6,439,981 |
Services |
9,046,075 |
|
9,438,702 |
Energy production |
1,268,623 |
|
1,339,448 |
Total
revenues |
20,471,026 |
|
17,218,131 |
Cost of
sales |
|
|
|
Products |
6,734,465 |
|
3,601,408 |
Services |
4,322,693 |
|
4,684,008 |
Energy production |
726,297 |
|
796,933 |
Total cost of
sales |
11,783,455 |
|
9,082,349 |
Gross
profit |
8,687,571 |
|
8,135,782 |
Operating
expenses |
|
|
|
General and administrative |
7,642,183 |
|
7,365,495 |
Selling |
1,572,221 |
|
1,747,959 |
Research and development |
537,126 |
|
381,064 |
Gain on disposition of assets |
(41,931) |
|
— |
Gain on termination of unfavorable contract liability |
(71,375) |
|
— |
Total
operating expenses |
9,638,224 |
|
9,494,518 |
Loss from
operations |
(950,653) |
|
(1,358,736) |
Other income
(expense) |
|
|
|
Interest and other income (expense), net |
(22,556) |
|
(7,127) |
Interest expense |
(15,841) |
|
(13,583) |
Gain on extinguishment of debt |
— |
|
3,773,014 |
Employee retention credit |
— |
|
1,276,021 |
Gain on sale of investment securities |
— |
|
6,046 |
Unrealized gain on investment securities |
37,497 |
|
18,749 |
Total other
income (expense), net |
(900) |
|
5,053,120 |
Income (loss)
before provision for state income taxes |
(951,553) |
|
3,694,384 |
Provision for
state income taxes |
16,352 |
|
18,991 |
Consolidated
net income (loss) |
(967,905) |
|
3,675,393 |
Income
attributable to non-controlling interest |
(55,616) |
|
(42,358) |
Net income
(loss) attributable to Tecogen Inc. |
$(1,023,521) |
|
$3,633,035 |
|
|
|
|
Net income
(loss) per share - basic |
$(0.04) |
|
$0.15 |
Net income
(loss) per share - diluted |
$(0.04) |
|
$0.14 |
Weighted
average shares outstanding - basic |
24,850,261 |
|
24,850,261 |
Weighted
average shares outstanding - diluted |
24,850,261 |
|
25,131,165 |
|
|
|
|
|
Nine Months Ended |
|
September 30, 2022 |
|
September 30, 2021 |
Non-GAAP
financial disclosure (1) |
|
|
|
Net income
(loss) attributable to Tecogen Inc. |
$(1,023,521) |
|
$3,633,035 |
Interest
expense, net |
15,841 |
|
20,710 |
Income
taxes |
16,352 |
|
18,991 |
Depreciation
& amortization, net |
324,968 |
|
357,636 |
EBITDA |
(666,360) |
|
4,030,372 |
Gain on
extinguishment of debt |
— |
|
(3,773,014) |
Stock based
compensation |
254,718 |
|
150,655 |
Unrealized
gain on marketable securities |
(37,497) |
|
(18,749) |
Gain on sale
of marketable securities |
— |
|
(6,046) |
Gain on
termination of unfavorable contract liability |
(71,375) |
|
— |
Non-cash
abandonment of intangible assets |
— |
|
7,400 |
Adjusted
EBITDA |
$(520,514) |
|
$390,618 |
|
|
|
|
(1) Non-GAAP Financial
MeasuresIn addition to reporting net income, a U.S.
generally accepted accounting principle (“GAAP”) measure, this news
release contains information about Adjusted EBITDA (net income
(loss) attributable to Tecogen Inc adjusted for interest, income
taxes, depreciation and amortization, stock-based compensation
expense, unrealized gain or loss on investment securities, goodwill
impairment charges and other non-cash non-recurring charges
including abandonment of certain intangible assets and
extinguishment of debt), which is a non-GAAP
measure. The Company believes Adjusted EBITDA allows
investors to view its performance in a manner similar to the
methods used by management and provides additional insight into its
operating results. Adjusted EBITDA is not calculated
through the application of GAAP. Accordingly, it should
not be considered as a substitute for the GAAP measure of net
income and, therefore, should not be used in isolation of, but in
conjunction with, the GAAP measure. The use of any
non-GAAP measure may produce results that vary from the GAAP
measure and may not be comparable to a similarly defined non-GAAP
measure used by other companies.
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(unaudited)
|
Nine Months Ended |
|
September 30, 2022 |
|
September 30, 2021 |
CASH FLOWS
FROM OPERATING ACTIVITIES: |
|
|
|
Consolidated
net income (loss) |
$(967,905) |
|
$3,675,393 |
Adjustments to
reconcile net income (loss) to net cash (used in) provided by
operating activities: |
|
|
|
Depreciation and amortization |
324,968 |
|
357,636 |
Provision for doubtful accounts |
(183,955) |
|
52,000 |
Gain on extinguishment of debt |
— |
|
(3,773,014) |
Employee retention credit |
— |
|
(1,276,021) |
Stock-based compensation |
254,718 |
|
150,655 |
Gain on sale of investment securities |
— |
|
(6,046) |
Unrealized gain on investment securities |
(37,497) |
|
(18,749) |
Gain on disposition of assets |
(41,931) |
|
(9,787) |
Gain on termination of unfavorable contract liability |
(71,375) |
|
— |
Impairment of intangible asset |
— |
|
7,400 |
Changes in
operating assets and liabilities |
|
|
|
(Increase) decrease in: |
|
|
|
Accounts receivable |
67,940 |
|
890,374 |
Employee retention credit receivable |
562,752 |
|
— |
Inventory |
(947,031) |
|
(753,447) |
Prepaid assets and other current assets |
70,806 |
|
24,361 |
Other assets |
466,420 |
|
(387,847) |
Increase (decrease) in: |
|
|
|
Accounts payable |
(182,903) |
|
(636,156) |
Accrued expenses and other current liabilities |
(80,720) |
|
378,970 |
Deferred revenue |
(487,676) |
|
691,867 |
Other liabilities |
(482,608) |
|
379,440 |
Net cash used
in operating activities |
(433,810) |
|
171,996 |
CASH FLOWS
FROM INVESTING ACTIVITIES: |
|
|
|
Purchases of property and equipment |
(286,820) |
|
(84,160) |
Proceeds from disposition of assets |
72,655 |
|
9,787 |
Proceeds from the sale of investment securities |
— |
|
11,637 |
Purchases of intangible assets |
(29,505) |
|
(56,349) |
Distributions to non-controlling interest |
(56,823) |
|
(66,168) |
Net cash used
in investing activities |
(300,493) |
|
(185,253) |
CASH FLOWS
FROM FINANCING ACTIVITIES: |
|
|
|
Proceeds from note payable |
— |
|
1,874,269 |
Net cash
provided by financing activities |
— |
|
1,874,269 |
Change in cash
and cash equivalents |
(734,303) |
|
1,861,012 |
Cash and cash
equivalents, beginning of the period |
3,614,463 |
|
1,490,219 |
Cash and cash
equivalents, end of the period |
$2,880,160 |
|
$3,351,231 |
|
|
|
|
Tecogen (NASDAQ:TGEN)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Tecogen (NASDAQ:TGEN)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024