Tecogen Announces Fourth Quarter and Year End Earnings

News provided by

Tecogen Inc.

Mar 24, 2015, 08:39 ET

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









SOURCE Tecogen Inc.