TGEN - Earnings call transcript Q3 2017

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Operator

Greetings, and welcome to the Tecogen Third Quarter 2017 Results Conference Call.

If you'd like to listen to the webcast and view the presentation, please go to the Investor Relations section of our website, and under News and Events, you'll find a link to the webcast. At this time, all participants are in a listen-only mode. A question-and-session will follow formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. pleasure Secretary. your my CAO, Bonnie now and Treasurer is to host, introduce Brown, It Ms. you, Thank Brown, you may begin.

Bonnie Brown

Bob. you our call. all you, for Thank Good joining third morning quarter and thank earnings

Ben today and President Operating Markets. Officer; our John me Panora, Armstrong, Chief with Jeb of call co-CEOs; Robert the Hatsopoulos On and Director Locke, and our our are Capital

harbor contain Harbor provisions XXXX. of call and conference we I'd begin, This meaning Private U.S. like Before the the accompanying of to forward-looking documents Securities statement. the of within read safe our Safe Act statements any Reform

statements such profit project, plan, and make regarding Forward-looking growth, among and can likely, similar anticipate, gross position. be results strategy, Examples operating for product expect, development expected future words identified may, believe, include, as as of seek, to statements will revenue statements growth, and by backlog; references others, goal, we future, market such strategy should, intend, and estimate, periods. forward-looking

other forward-looking to future, uncertainties, of which statements are our conditions. economy of the Forward-looking based control. are of statements assumptions future are neither future inherent Instead, of future in trends, risks expectations subject predict relate to projections, events circumstances our changes and many the they and on that plans regarding and and current to only they and Because the anticipated business, difficult assurances beliefs, performance. future strategies, our and are historical facts nor are outside

March products, from could statements in financial competing actual the discussed new by and such in or Tecogen's with indicated statements. forward-looking sufficient forward-looking made. to on from interest and oral, found include and made We or new of is date developments, made Risk call only this elimination XX-K our these cause differ that and publicly results XXXX technological us conference any otherwise. any inability no SEC indicated opening to statement be factors forward-looking at as that rely others issues filed as available that products, and our statement, differ accompanying only be in on John the it among undertake condition of time, as Therefore, Any now Important to to throughout to whether results actual time the Our not the obligation www.sec.gov. I'll documents forward-looking turn is which of from to incentives to call XX, our the developments remarks. other the and update factors can section currently any commercialization information, information materially funding the the may future of in and and us financial for on based statements. result speaks condition Tecogen's was of the whether forward-looking should development obtain rebates those related a may materially research, following: products, written some those you in Factors Hatsopoulos decrease over on of in

John Hatsopoulos

and gentlemen. Good morning, ladies

$XX right business we their shareholders day. our in vacillates so life. the is signatures our by you us quarter Not short quarter which, will and of ULTRATEK but - $X.X of is are from the of the long to momentarily well dissolution bank our million. cash we have from the with give you receive day get exact some have the another approval, $X.X and the we'll to know, our of only As a periods is now, all expecting amount, way, million the Locke backlog that of to for best and And been our and time one Ben over today million, on

we're With receiving. to operations, to many of really I'd Locke. So, cash, million the ADG, so come. we have money we Ben backlog, orders that is backlog the our runs in fulfill enough $X.X something like years On can that that by which that, you the up man this to add don't like the all we'll way, have include the ask

Benjamin Locke

Thank you, John.

was quarter important quarter third was it XXXX and for DG Tecogen, of American into first the integrating financials. that very The Tecogen's financials full

realizing I As few acquisition. minutes, we a in cover will we of the expected are the benefits many from

by and an would our see Slide and recent Bonnie indicates, call end core opportunities more as new may on our to take forward But with technology look As Then the the performance more to our achievements year like Slide development, emissions questions. will by I to along company followed financials. with on on X, expect we first, remarks the will who off and an final some agenda be give cheaper, financial Tecogen's those we then and have company's accomplishments. shown future X is on quarter reminding I cleaner overview start business comes I'll start cooling of reviewing for power reliable. to XXXX. results that Bob by about and model we'll to detail heat, the the then

business emissions Our traditional cooling buildings and long-term technology financing powering utility heating, in equipment design, truly clean the grid proprietary and added DG of and American service. we vertically able maintenance QX, And Tecogen, have acquisition offer completely infrastructure. company the making efficiency, to is of integrated a improving and resiliency methods technology to for completed installation, manufacturing, with the on-site disruptive to us

the ADG margins the with the for solid third contributed earnings that good show, fleet revenues quarter. results quarter Tecogen's supplemented As

Slide negative is shipments, accept revenues of we're quarter of about customers Tecogen. delivery of company quarter. included the million not some result and dropped of XXXX record compared for XXXX, in quite to trends last the $X.X and full $X.X ended ADG the this after the were mostly which the any revenues ready quarter the quarter, third quarter million Turning the a the not to $X.X timing was time, record for ADG equipment with a as to of as But which in of had of quarter of quarter compared supplementing Product million pleased to sales. of sales Total X, financial see the only benefit were to performance is it. quarter the third until a quarter of at last and where indicative half

to is which million of this revenue ADG's under of mentioned, a third to in backlog $X.X turnkey XXXX talk a growth, dampen John which quarter, our numbers. at reflected our only result half quarter coming Service the effects compared bit lower as product $XXX,XXX contributions in is and million quarter. revenues million a I helped This about contribution second the with of about good expectations the $X.X revenue is quarter consistent installation As are last million quarter last the activity was XXXX profit increased third Gross minutes. million This and for in the $X.X in projects. $X showed our $X.X the result in will ADG quarter and to quarter growth, again revenues of compared the in the was as for a in just quarter. at few for million the contributions. of $X.X a $X.X record versus quarter, million the

approximately compared about last of quarter, which in related $XXX,XXX by expenses, R&D include and our income costs time $XXX,XXX $XX,XXX ADG positive transaction. the the as and Although such for implemented focus, bulk to quarter the $XXX,XXX was included for This, and non-quantifiable for of on a costs as $XX,XXX does now incurred the related the to course, merger we increased of the Adjusted the quarter, which expenses compared in be quarter merger for quarter, $XX,XXX of third the $XXX,XXX transaction XXXX overall for about residual selling company was of operating second can quarter. growth. not the and better loss management EBITDA

basis it occurred four bottom XX.X%, completed investors such XX%, product quarter is as second business mix is service result line the non-GAAP acquisition, is is of the service is XX%. consisted around for EBITDA typically for but substantial a slightly operation intensive Margins which higher model of it revenue As is installed makes five of a helpful contribution transaction around margin company. to past result been margin margin the the The lower out margins. on-site for in The and for we a exception. a helped for quarters product reminder, being reciting which has net came quarter and the profitable earnings of of This in the practice as part non-GAAP $XX,XXX. income the which about product than lower the well ADG by at a considerable financials. with of of and reduction that quarter, still company, when depreciation of the ADG's the ADG's in the capital of the as the XXXX, see product the Despite show consolidated lower to depreciation EBITDA service of and

while from we trend is cash, additional in our to Our look John approximately not and And toward to John once current putting additional as comfortable $X.X us goal this ULTRATEK XXXX is our million, and mentioned, stated of sheet as earnings described, balance beyond. it's is of we'll million receive net completed standpoint. cash a release, balance $X.X the continue an a in dissolution position profitability, of as

I'd quarter. the like to time Turning Slide X, some to for our spend achievements reviewing

to announced In two headway our alone, growing we're have the sales Florida. of for a and you in facilities. Tecochill strong our three may releases, As seen cannabis-growing different five quarter product facilities with chillers Massachusetts chillers facility press of growing making cannabis some we total to from recent indoor in third

cucumber provide The needs only gas to line and can cost in benefit, cannabis increasing cost heat not free two instead stream in crops our the the to quarters and as capital is plant leverage waste are systems the reliability. an simply units each electricity, grow cooling CHP low can orders requirements natural orders to offset COX pollution-free the also of these Farmers expensive indicative virtually We in relatively additional meet efficiency it savings, needed sold thanks are different a as also patented facilities. engine of These the to the matter heat all states. expect of particular invest tremendous as indoor facilities a high-value Ontario. and growers, in And coming in power but Tecochill emissions we in added recovered cycle. and of dehumidification awareness process the to grow technology. facility of operating be product, of aid because to product ideally established of not meet of used amount suited does of grow interest Ultera of Tecogen's to these the the It's growing growth, a a such

It ask for they turnkey that for residential a also an is have aspects buildings often the increase our contracting. CHP factory seen construction We of full installation in project, case including responsibility and with segment. all

long-term these And for that margins when I'll to service also these to the the a outsourcing ensures designed it margins done projected of construction low It revenues, risk with have properly. generally the a a in good more party. grow is for receive as third projects, orders. company also met, entails which completed installation this construction as While savings to projects which course, are ensures we healthy is typically our continues just minute. backlog And come that when sometimes

regard drivers with our we X, of continue additional Slide for base to to expand ESCO growth, for partnerships. Turning

we leading XXXX. megawatt track As approvals in still company, to with These state perform this over are ESCO. them on early or design in time, X a projects local service year, contracted and of and orders Tecogen earlier new equipment take worth although studies to feasibility was result we announced projects for expect and energy

pending also buildings have various for batch different in with and of XXX contracted with for upwards state ESCO XXXX. projects local developed those of And approvals, leading similar KW similar this We we of orders expect a ESCO. CHP a for later

the commissioned two projects. two focus ESCOs, the ESCOs two-unit and sites of the project on generally third those Additionally, quarter is with one the one other. with third smaller we who second to with in This

a are be X projects financing total. over we project projected Lastly, with group working in initially to megawatts on large several

as with activity here will suffice on detail these time provide is of but we growing at as course, business to we and to due close, the say, Tecogen. had Of projects mainly hoped, ESCOs our our more effort they team

new for Next, mentioned, approvals growing as track we state facilities. I are keeping upcoming of indoor

to engineering states for growing, other our issued with such as design. specify construction we working California in As equipment companies permits the are and indoor

Bob and and ADG progress to continue the improving the fleet fleet, to make his operation Moving team profitability.

money, And remarkable progress made albeit now in-depth improve of top-level the team on rate. has the it While is year a But the work analysis. more systems, the our the past ways at we improve course, requires continuing modest money over nonetheless, to to the consolidated company improvements, company, software continuing implementation more in to to fleet, new run operational including internal which will identify long efficiency. adjust of are and ultimately save the the

to our invest are continuing team. sales We in also

We the more allowing opportunities have extended of year, for our rather than us first sales commissions agent hires. via network projects considerably half in direct the

acceleration advanced We sales and streamline and leads exploring tools to are project generate also lead help development. qualification new

has will sales to to the past continue way it forward, the best the as shown to months We XX invest XX team in be going business. in to grow the

Turning to attention can I'll proprietary we are Bob details. business then there a model review emissions in where this our establish that briefly, technology, monetize focus order main will areas, to Ultera three more our will provide technology.

prototype the of a of system some fork-truck exciting with emission retrofit completion results. near are we First,

California permits. package the of commercialize Bob technology our will lastly, an installation on for And stationary these automotive to seeking air give detail steps in minutes. next generators the efforts a we applications. few Next, emissions more Again, completed determining we're on

X. backlog Turning to our on Slide

of Our our November guidance quarter was at million, million, of over backlog backlog And of to compared to in maintain the above end million. as X, current Wednesday, XXXX. backlog at $XX.X third stands a yesterday, record quarter $XX the well the $XX.X $XX.X million quarter-end as

with it So, that, on development. our detail technology over like Bob to more Bob? I'd to emissions turn for

Robert Panora

Ben. I've My today been programs our you, thank three on that regularly. and emissions morning, will reporting Good cover discussion technology

the industry I technology fueled to the propane awarded trucks. first research for discuss grant fork Specifically, adapting from Tecogen the to will propane Ultera

such online operate units generators Southern special annual in bringing in system hourly these our the retrofitted were progress the our discuss with that emissions California will that I customer Ultera limitation. Second, could without

Ultera adapt review gasoline-powered vehicles. I to the to what's Lastly, will ULTRATEK, happening subsidiary with a technology

to in As venture. Tecogen strategy. dissolve release, reported due press concerning business to unresolved This have our was agreed differences we October the the XX investors in

future then where like. research stands look describe of such, process, program summary As I'll scenarios recap dissolution provide and the status what the a the and I'll of might

begin with the fork Let's truck.

concerns the of commenced issue. to last provided demonstrate of has battery a despite occurred The Propane energy of for indoors, more storage grant research project announced capability a health market propane is are generally as this for this vehicles with Council, has of Ultera's From eroded costly the onset, potential propane the year, emissions fork this market January, the often operate In loss versions disadvantages been year. They indoor truck. systems. of setting. a As at acute has This proof-of-concept phase because extent these and significant are share and fueled where The industry, Education program trucks and by battery-operated to complete magnified. importance PERC, unable significant was this of Research company this to interest the because full strong the emissions reduction years, has shift, because industry program be completed recent limitations. managing in the in scheduled the large to end a

forth. we fork have and team with we maker the quickly truck during the characterize profile. The the received testing expectations, fork commitment a very Tecogen secure supply that and completed quarter from our support were first emissions emissions truck lifting of truck to most major baseline the so to such, from a fork a testing engineering testing. confirmed when was truck active, the and in truck The able its to is to As baseline is, times output our was

During one emissions was to a which problem Ultera for is designed periods, compromised, control these familiar the significantly process remedy. and

impactful the technology of our emissions that are the be therefore very truck. fork to can expectations Our profile

five truck. the Ultera the been Our system months integration has the the primary over into of four, past effort

have to we program, refined. hard make integration this well this For worked

compact finished obtrusive. exhaust received of X into after integrated same truck's or below, a efforts, shows the and Slide without outwardly truck is these As result the upgrade. system being system Ultera and the view factory, from visible fork that the as the

the Ultera terms into in and by auto-industry, characterized utilize is careful very be components the building system considerations, fits industry. can they the cost the Consequently, Ultera As retrofit the of the shown, kit. scrutinized from blocks repurposed when system very as important And well reliability, the we were well well-known space. to for

The which to operation first generators concerns is of Southern natural testing, PERC in We point discussed want have a upcoming manufacturer gas-fueled prototype tentatively hand. past. and California, to I group in December My need I the we to planning And customer that are the the second topic be that a now owning results generators upgrade to out just are beginning Tecogen of the a in operated executives to project from frequently. in hope weeks. review our have the and visit to group

As we the allowed successfully cogeneration for hours operation. must as emergency generators, have same the standards the where for meet our products, exceed been run the the standards are units max These the continuous permitted.

generator standard. its setting simple under the receives However, credit in no heat emissions recovery level the

As been permit are the emission required the any achieved and we aware such, have these lowest yet by of engines not are levels to engine.

customer to the was the sample confirmation After for some overcoming formal retrofitted. with their worked the before, Ultera units has generator We staff using to emissions be system all the the outfitted unrelated reported system. compliant with our and normal very capability well, As this this In generator technical the the emissions also a near facility we which we standard. probably generators to at Southern of facility have in and at independent for our been portable of units reduction our test California will month, units analyzer the future, facility issues in anticipate after the and permits to for applied to will time report the are that very in commissioned upcoming overcame for source at with Ultera apply very generator, final existing now, Tecogen confirmed customer the that retrofitted XXXX the application. the It test intended customer the purchased are testing fact staff pleased and use. stringent in have all - proceeded on-site must he

difficult I've permitting this the As of sizes brands calls, we're said various goal near pleased and standard. in of very most these to engines past to be emissions

Commission except the market generators demand want funded to Nevertheless, recent utility for clean helps that to impact. at cost for as from shaving, whereby I action, limit directly still schedules here, with to application. support We the a significant least more been California. charges. grid eligible the fossil-fueled prohibited we In in the at low prohibit this situation. Public generators, customer some response Ultera, and solar for programs. It may a setback to facility's have without However, report base-loaded Utility a time it's to logic is regulatory the potential power application being actually degree the bio-fuel curtail understand the That most peak demand not gas shaving sourced, does California lucrative operating greenhouse think exist, peak very would struggled

no response participation demand from far know, programs. in fuel have these As fossil states generators as we other precluded

for because scandal. our ULTRATEK technology, Now discussion, Ultera Tecogen course, emissions automobiles. scandal The a was in which the suitable gasoline review, adapt created, formed of January of Ultera. beginning focus emissions, after-treatment of was with the was opportunity diesel not application engine Volkswagen to The a is ULTRATEK to XXXX

questions greatly any a prescribed in expanded raised not well. under which but significant completed questions as understate funding, to gasoline several The certification Over These million of However, was hence setting, for way, was of as driving. to Tecogen with testing us. concerned the from vehicles about the laboratory The are rather ownership about the and evident Ultera raised validity investors, tests. vehicles, involve was real-world settling controlled opportunity well-suited dishonest it tests, at reporting approximately gasoline in technology XX%. the $XX were considered did rounds

U.S. had hoped. These Europe we the in the was system California. from on highly we AVL Center XX tested in gasoline aggressive outside Test automobiles Over months, driving Ultera in were certification standard utilizing process the course of the boundaries vehicle. would The tests, and in or The as conditions results Ultera effective from simulating in also load the with the reducing narrow uphill be of conditions or both but these emissions, a tests. the driving

The in published which we for engaged in might During results several suppliers our the we and as was peer-reviewed SAE about we technical patent both developing XXXX, forum important International also as showcasing regulators, industry, year provided a from the the gained where Ultera scientific automakers met Proceedings, This technology. well team commercially. portfolio. in our which with companies feedback fit

ones. should On end, several could two it dissolve was reach related assessed. this and In per funds distribute new applications reliability strategy the four During arose of one do disagreement a Tecogen completed from we developing we is we the The cost that to can prototype of patents the and can approving technology most schools for finding unanimously practical the shareholders' the be obtained technology and compromise step greater to the the thought investors is value if of effort the extra next. side, a and opinion we of year, as taken Ultera what partner. action. on consent development - unspent by commercial have now which terms contrary focus we the we showing advocated a accurately ULTRATEK this considered much the design, a of and agreement termination decided should The of held now as was the proven of the refined for not

the emissions for two all non-cash of IP knowhow $X Tecogen the $XXX,XXX. associated AVL. performed intellectual property receive part million all of assets IP licensed testing at its As awarded that The cash, Tecogen data in applications, the includes then this disbursement, patent including for all of patents, ULTRATEK. purchase four exclusive invested and to funds the it sole with and will will and ULTRATEK,

and the the mentioned for is John Tecogen. earlier, in positive of a As one release, course outcome we mentioned press

successful months complete accumulated rights a while where net added process The research. is proceeding the to is registered. have We valuable the Luxembourg XX sheet the of law, including $X.X million gaining rapidly over of dissolution per knowledge balance company to technology, the

disbursement have the all and from be paperwork the confident all are will signatures sorted very soon, as gotten necessary We we parties involved.

I now not process ULTRATEK the made one is perhaps arrangement any a routine to I'll the a the program, although raise to move Tecogen With entity funds forward the allow continue very that structure So, This we form. think the call similar under that, straightforward. decisions Brown. to and have to of turn that's to research over Bonnie will we legal might

Bonnie Brown

Also, I'd are Thank date. and new May you, includes and with values sheet regarding has may Since revenue and QX. the not only as not second ADG's quarter of in a ADG been in of as discussion a start after our the operations and stream of with have sales the analyses. the merger to cost owned May valuations with quarter energy ADG necessary Bob. financial balance the who are for differently, statements of of and completion for like finalized purchase consolidated QX subsidiary Tecogen's how for operations full accounting pending our it revenues essentially presented those Said ADG Tecogen a is presented operations of XX, six Tecogen that production included call. and XX, as joined in of weeks provisional wholly became

the year-on-year of results the financial some Slide quarter, of for XX on Moving highlights quarter. the to the third contains

increase service flat basis. quarter. These same sales same a sales. cogeneration account XX% total same annuity-like period contract and a last last and period alone year, year-over-year of last XX% XX.X% year half its increased to steady First, our total period to compared parts growth, the and XXX% the providing year. revenue modules piece the in a a fell and of were chillers decrease service revenue agreements contract by reliable service revenue, Product long-term and in compared stream. of substantial the compared for to well grew Total revenue with revenues continued Service and pump heat company's a product delivering revenues the XX.X% maintenance on revenues over for

$X.X for revenue for stream an production our energy source revenues quarter. We million XX% XXXX. end market from also long-term which of contracts. an the and have important revenue versus to for subsidiary, our its shares or Other maintaining revenue than reduction year. annuity-like mark-to-market to ADG in represents compared to from adds a an second margin the to consolidated fleets future. as recorded rules. improving third margin $X from $XX,XXX Gross in same the by reported due our the subsidiary, XX.X% unrealized a for loss same This $X.XX consolidated gain our Inc., $X.X a same the margins period quarter margin at the to projects, business, margin XX% gross the new as quarter which margin mix last XXXX. ADG. and Installation same fluctuations This last these of from of the the of from with diluted, gain income the product was GAAP's service whole income quarter compared the of Tecogen's quarter our Net in XXXX to Combined period margin, a historical added This of the bringing total of Power pre-merger a Energy stream focuses chillers than higher on on to provided improvement $X.X were due year, to continue prior gross and the profit XXXX XX.X% with product contracts, comprehensive in declined basis. programs of price for up year. product gross gain comparative in mix production Product gross management loss the lower with higher million comprehensive for and QX accordance as which percentage of maintenance mix expense to quarter-to-quarter per as service to quarters, in the represents compared third activities EuroSite period QX for Service last the can or service was used comparable down XXXX. product QX XX% in carried was income the ADG percentage of and margin with unrealized year. fluctuation margin owned the quarter the XX% a other share, XXXX, same the be respective for of period, decline million market XXXX the XX% accounting XX% is basic for bringing as

Slide to R&D as $XXX,XXX to same increased XXXX, adjusted positive $XXX,XXX quarter, for which due EBITDA achieved the $XX,XXX. Ben historical $XX,XXX, Turning to non-GAAP we which the discussed expenses and $XXX,XXX trends, adjusted a of approximately is compared expenses for decrease XX, EBITDA period essentially as earlier, selling in of the of presents increased

trailing Over $XXX,XXX. the four third we nine sustained and the heavily into we've chart company's quarters, in At the invested investments activities that months adjusted was of first achieved in and that time, through shows the R&D XXXX. over future the approximately increased the of was profitability EBITDA step-up selling the quarter same year. have This

model. The graphical most small $XX.X revenue is energy review XX, $XX Turning the bars revenues The grow represents circled chart which gray energy only period earnings as revenue track the in of total without trailing our trend is million the let's Slide four to this metrics production our ADG's for revenue metric, revenue in the four-quarter is four million, to of charts at time. represented in by with trailing left insignificant revenue This will upper chart month's revenue including and energy the corner, with Starting the trailing in about red. now. growth margin. using the and right the annual XX for the contribution, the chart represents upper gross right illustrates months corner this introduction energy chart of the appears a Because quarters production.

of can gross see, XX.X%, four-quarter trailing of As basis a delivered the management's range. targeted margin at a management top you on

We lower the to In of to sales continue these corner expect initiatives a operational margins. cost chart deliver and controls expenses. right is

absolute forward. remains to Although higher continues in revenue control XXXX. cost improved expenses. as percentage of a the terms, a to Management's operational year-over-year and are XX.X% in XXXX QX dropping for components rise revenue, going XX.X% QX There to expenses for of effort X.X% three compared focus

is associated Tecogen with First the consolidation the ADG's operations. of with costs

onetime the $XX,XXX expenses. currently corner lower This backlog of as in And costs $XX selling exceed revenue. well the turnkey the management's associated finally, to with weekly our goal yesterday. $XX.X R&D million investment And is million which ahead product this are service Second quarter. left chart, ADG of in the and is merger, backlog third is were in at and increased in approximately

Additionally, continued service undiscounted which works years. maintain backlog revenues. ADG's deliver future company next XX through in margins stretching the not exceeds include the of $XX these to these and we revenues, targets energy contract have included does same. gross backlog production And million estimated are likewise, over this that the not period. remain meet Management backlog and to goals The targets figures,

Now the conclude Ben I'll to turn to our call discussion. back

Benjamin Locke

Thanks, Bonnie.

deadlines. quarterly inefficiencies are earlier us allowed third results. despite profitability revenues contribution with quarter. some makes stage quite mentioned of the meeting to the maintain occasional to it I of pleased call, slippage we flexibility in quarter the product in out pressures As easier the shipments and ADG of The Having shipments without this

chiller progress We expect continue good our we our robust efforts, quarters continuing for the as orders to and product systems. with sales interactions coming direct ESCOs, make need with in

predictable and expect and mostly margins revenues from the We ADG sustained fleet.

continues, The quarter And Tecogen on first ADG acquisition beneficial integration as their build to hope demonstrated the the many ways. to contributions. of full revenues in we was

through service. we and will core sales grow continue to product our Next, and business revenues margins our of

CHP the becoming range. as acknowledged for specified technical choice size systems and increasingly in our best CHP are Our

and Tecogen and indoor trend grow expand. key And are and chillers grid growing to the our environmental relationships partners design support Our concerns becoming products. standard to pressures for towards continue the with facilities, resiliency continue

We in over our tremendous record few quarters, past growth revenues culminating the quarter. this have financial demonstrated

XXXX, planning larger our facilitate into to for building needed production renovations manufacturing. going making increased product to a are including area success continued We on

forward. And full and not have Tecogen. potential turn operator to ability production we With that the and building new an outgrown we success technology questions. to the growth. It that, office more of going accommodate While area investors I'd our yet, over administrative expected space hope like existing and exciting our time realize to is support for truly have we it will our our to reconfigure for to the

Operator

you. Renshaw. Rodman with Our & proceed Dayal comes be Amit the session. At from Instructions] we'll line this a first Thank your with Please [Operator of question. question-and-answer conducting question time,

Amit Dayal

Thank you.

Benjamin Locke

Good morning, Amit.

Amit Dayal

morning, guys. you How doing? are Good

Benjamin Locke

you. Thank Great.

Amit Dayal

of if sales? could the what maybe with, weakness begin we're to some in Just about cogeneration you talk the maybe revive doing to

Benjamin Locke

say particularly I the at is weakness as Yeah, - Amit, tried see I quite to a my remarks. It turnkeys, Amit. don't in cyclical, it all. with our

you imagine Tecogen construction turnkey a all can the If contracting ourselves. and sale, mentioned as I involves before, doing

that example, big for in the sales. we spike in So, had cogen quarter third

it expect sales all. don't trend be kind so right being they normally it installations at the our are back, those coming really is timing. finishing a up, of see to I to are in see of where I Some cogen quarters.

it's - it's that anything of worried you think guys it's be I'm something about. any should So, I don't about, worried not and

Amit Dayal

And last a again saw side, saw quarter thought some again we hear. little only quarter. trend but of will to would on for we on time, would costs where probably bit. margins this relative persisting. to be last We onetime margin Any like, sort pressuring looking it be is mix it's then that this related a the margins see good looks I backlog driving like? thing That's how color the installation Understood. or it

Benjamin Locke

doing we five, we're been And - the get we be and with to expect fully low-margin as having of between having XX% we But weren't more are have revenues, does to won't going always is is maintain the construction range made the because of XX, and knows, try I that, which end as up clean a importantly of service XX yes, installations. business. is And ensure if doing right, accept construction. construction okay the we and we're good that margin in an these our to - all agreed, ourselves mistakes because really right, low years that XX%; that margins done that. on anybody means artifact you're it I the to generally of mentioned, might really installation that Well, doing involved

are to that brought trying of product kind not we're product. bit quarter, don't in of a the together, to every just a to it a you're really down our in little I through margins Also, came things kind going bad this further. different think those going down around going up any a that Obviously, the trend for think a but we yes, are again, mix, don't down of little But But have margins get that XX%. installations way of that way see - slug I a So, the the bit pulling each our little system a on products. bit. of margins now, right

I to be think XX% our going in with kind product always sales trending we're our that little to of margins, area bit. of XX% a as particularly rebound

Amit Dayal

going do What we ULTRATEK know for perfect. plans you just forward? have Understood, everything. dissolved I

that. pause probably actively a But on to all or of are for new here potentially bit are this? looking You're looking over work digesting you partners for little you to

Benjamin Locke

free our we property - well, have, getting and if trying legal or the ULTRATEK soon, once and we're end to ULTRATEK the place soon, Bob of control complete Then to then, year, Bob are. this the not get control task which about evolved expect of all that's And think out. as as I first the quite in indicated, next what as intellectual that steps foremost, well said, task of, as certainly parties weeks. be administrative we'll in done, and dissolved just get sorted

testing. we plan probably can shareholders in share our with we the steps And So, contemplated had next is once transaction is again, XXXX do. think for to complete, I what

it, for that manufacturers a indicated, more that to ask step potential really us development get to or some questions of so when so of step for do go do more ULTRATEK, we work. tested, and whoever we something Bob and the do prototype commercialize next questions we'll them, believe call very in front important to that them or development answers we're a to going lot next partners and have their is to to right it won't As

that's It's administrative to through. is we'll saying, coming for we legal months, Again, to articulate nothing a the long So a first there's no I to that. have process of order plan weeks just ULTRATEK my of the - you dissolution. but the and go risk think, way get be in able business and in

Amit Dayal

just… understood, Great,

John Hatsopoulos

Hatsopoulos. is John this Ben,

Benjamin Locke

Amit. is This Amit. name's His

John Hatsopoulos

wanted as we a What's to that? Ben, have. that continue spinout patents You patents four all I the our Thermo that goal like at you we'll we pending because that and and to have Electron, make tell did with this the we is

We actively. technology have very behind tremendous continue it. And we'll

vehicles. probably market a see of of fact, think addresses few matter weeks As emission this spinout of I the that over a next you'll control for the creation

Amit Dayal

you John. for Understood. that, Thank

John Hatsopoulos

one? last Your

Amit Dayal

they last am look part with one regards one me, I your guys, Just not to ESCOs, significant. they're right the the backlog for in pretty assuming opportunities of right? now,

Benjamin Locke

question. It's a great

we of indeed had one And studies, been in the we contracted sales which scoping I in first expect the in as The those year product our do my I mentioned, to are said beginning et cetera. XXXX. earlier Those in remarks, backlog.

Amit Dayal

Okay.

Benjamin Locke

if a just to been orders have essentially place, it are included with comfortable backlog And reminder, that Some larger we obviously, what other point purchase projects entirely in that we consider is, it's PO backlog out are yet a haven't scoped mentioned, I'm is a backlog. also imminent. the in order of the the I that's where as ESCO But putting in other backlog.

the not latter backlog. those orders are So in

you'll get all included They'll me, do be them informed our believe more know we be investors of and when will on So, orders. it, we to our when get in backlog. clarity first be those

Amit Dayal

out roughly? still roughly, of one and the are is have, potentially So, X in backlog you megawatts three pending,

Benjamin Locke

Yeah, that's correct.

Amit Dayal

Okay.

Benjamin Locke

to a And our tools mix our chillers, - economic of our that that a I ESCOs, Tecopower, and both can their of the it's is mix returns say good should of mix they customer different a which and them. the that that products, actually on of very projects these of ESCOs components, with are apply it's based it's different InVerde, it's recognizing those a mix there's

Amit Dayal

much. so you Thank Understood.

Benjamin Locke

you, Amit. Thank Sure.

Operator

Thank you.

Maxim Murphy Our question. with proceed with next Group. of the question Please comes from your Patrick line

Benjamin Locke

Hi, Patrick.

Patrick Murphy

come Hi. or When XXXX more the XXXX emissions of Ultera can this we through? of look to is event? a impact for a this Is the

Benjamin Locke

one could whether is some a and describe line I've more with of is the you ULTRATEK. just it'd Well, business type work, I'll of with past, say the a two the type any truck be but fork let with some other company, towards arrangement, One distinct it'd little And a in bit trucks there's said nice, the imagine it fork to of because that Bob time as occur can type in truck I monetization. is of is will developing events be fork partnership. faster kind detail, that whether

this You imagine expect as next can year to little And we that folks to be bit said, quicker. those happening talk Bob about with meeting a steps.

little about a of ULTRATEK, the terms talk let that. maybe Bob bit I'll In

Robert Panora

programs Is to? Yeah. that referring to? referring you what Which were three you those were of

Patrick Murphy

both I and ULTRATEK. them, Well, truck of fork guess the

Robert Panora

know And I like what that in maybe the the said, we some to we then yet. so on some step the be, And have with December don't can meet manufacturer truck, and prototypes, partnership show going to think fork Ben do build some and then, in hopefully, we do but have the PERC. time we're as we I Right, we'll on will I sort think I line person. them next to said clarity can that. And of think,

On met do we And with to some have the subcontractors we've this. side, a pretty idea. good automotive

that's it vehicle the good compact, implemented require into how with got that a mention that I way; that I to idea cost year-and-a-half, we has contract a very those practical, will Ultera don't to about yet going have of I happen. low have haven't think. and and in with who we we're not folks. work yet, want to have create going - because We And a tight a very to a But

Patrick Murphy

on would if and then increase ULTRATEK, brought in that Okay, in-house? costs, be operation an there you

Robert Panora

research the You or��? mean of cost the

Patrick Murphy

Yes.

Robert Panora

I a perhaps different because don't we're costs more it's actually AVL. engineering will a In folks will the we've of the company. is out what like than than building this something substantial. the Much done. case, - any it's subcontracted these subcontracted different process effort, was, the to work X think and Phase higher But be be

in-house your the question. In our cost by terms if any subsidiary, borne cost at what's of being that Tecogen done answers wasn't ULTRATEK that it P&L, was so on

Patrick Murphy

Yeah, that's…

John Hatsopoulos

in up this XX that the ULTRATEK connection even we investors to And been have that other fact, would add of investors to did participate ever this, in have to for made not I that list - the allowed long-term somebody my than that though to I the more a And we we whole they're control. in like The automotive that of with investors as was emission that not enemies of insisted now to By were investments venture. participate close a that's investors, allow years they've participate. people way, of the want to did has very I've not matter made that the industry. investors very problem why terrific and a

that me, not high-net-worth our on a that offering not, any second rights it could a technology to States, not do not in not the The you're people. wealthy out of United rights product to the and shareholders of you people give you're to surprised allowed question less that Therefore, a because came Europe wealthy In rights heck is only allowed in, rights offering and do have. or individuals, they're we participate. and to we lot are that

which do is to then every do face again. will we have spinout, intention this if So, we to Thank you. a so,

Patrick Murphy

housekeeping any quick related merger there one more just then residual remaining? And item. costs you. Are Thank

Bonnie Brown

have expect costs Yes, associated do merger. to we some more with the

Patrick Murphy

you Thank great. Okay, much. very

Benjamin Locke

have Thanks, Patrick. operator? Do we more any questions,

Operator

Roger question. comes question with your Liddell of the Asset from line Clear next Harbor with Our Please proceed Management.

Benjamin Locke

Hi there, Roger.

Roger Liddell

Hello.

that we considerable focus be the that That on applaud investors of as received prospective is current First, ESCOs. to area today a well an comment, on interest as the I should quick the texture ones.

future quarterly My grid the question hope on ESCO calls relationships. that will involves comparable there in resiliency. evolving focus I so, And be

identifiable happened things the but I I think is know We a looking problem? welcome earlier that for its New State, for And pumps. New chillers and New hammered. have the there and got XXXX, Rico, York and pun is no Florida, tailwind, proceedings there intended, be back to consequences CHP, more electric I'm be unwelcome to a certainly - - from REV Texas mean that just issues, the a created electric heat would the York hurricanes one. should opportunity recently, the any about two purposes Puerto sorry, don't Commission. I enough The Public also What Con nonagricultural direct, City pricing and but could have one also and Ed Service York opportunity infrastructure not like welcome in by that Florida and

we consequence out So, process likely as are could Con the we and activity bump see through sketch you to REV of are playing out, seeing, any meaningful hurricane a Ed? and

Benjamin Locke

involved yours thing your in New - And handle the out with question I'll latter we're REV part is Roger. questions, the first, that. the York. great which playing quite Yes, that's of

of in to important to can for us that There to that with consequence us discussion. not CHP be you don't us. REV of contribute us, be that the to the - to ability able to As things imagine, have if number able it's export, potential are of Even you value ability monetize to it's export. least to got place or is which a the

to immediately at to seeing We think, those unfolded. now of all wouldn't are been Standby so with with give is the process not think tragedy people contact being terrible have got in have NYSERDA the got natural groups, us. some So accepted solution We've anyone, that's sales they immediate And past. and It's that's in to and proceedings. I Puerto we've start about going the Back we're Puerto there looking ROI these it's But as like certainly, things. as and good project just what CHP the maybe what well outcome disasters, And been the in that REV there. hurricanes - directly we in need in close things But is those through don't an generators near to down that. and your I'll result the it. a to original are work going one on a of question - are many issues I And a are as that as for kind in industry of us involved we've Rico. things. and agents exclusive CHP, developers discussed have us the under Rico. some in of people

down - a But and it's fuel looking prices at a also, high know, Roger. rate, are quite as electric there. a high you say, Let's hotel you're the you're

might an big as isn't spread realize spark And the But a off as and as years, anything because you actually recognize have threshold. result, as in importance be six the putting they're really working a the maybe you've now, to or a their have system chiller five CHP of might propane what So, ROI think, of and or you'd of or system piece which as above it start resiliency. until resiliency they experienced goes, you.

Texas, I a piece. softening value think, of people and we're really Rico, in going in core as Puerto start and to metrics see a to - in resiliency this in lot our Florida the

Rico out to mothballed, benefit rejuvenating this that see And longer underscores it and ultimately, that the So, with. the are orders sales resiliency, in hate but Florida. are agents resiliency see having what I ROI. such seeing warrant again, that, think to the in our some of terrible our something off think things, getting like about to discussions been rekindled, going we're help your the not today, I as bit of Puerto of is ROI. longer same have that's And valuable, started an having because and doing of in be very with. from starting we events regard, Texas might projects past we've they some people because been because the question products mean, I but And We're those talking that active - it's little We're Roger. being I with enough value hopefully, maybe business a we're very we've to, in and been

Roger Liddell

you. Thank Yeah.

Operator

Thank you.

Benjamin Locke

Thanks, Roger.

Operator

[Operator with your Company. of Instructions] the comes Michael Our Zuk from next line question with Please question. proceed Oppenheimer

Michael Zuk

IT question. question a everybody. Good an morning, have I and financial

Benjamin Locke

question, wait the I Mike. can't IT for

Michael Zuk

more The beginning grid is, employ? that of that is eventually electric enter in that technology technology looks we IT it blockchain more type question to and that a Is management area. that will

Benjamin Locke

me one, on caught you flat-footed Mike. Well, that

me. what Tell is, technology blockchain me if can, stumped you briefly. You

Michael Zuk

time, the apply disparate increase it between to and the gather basically, monitoring each methodical them so coordinate information operating way live units to of enables efficiency a other. you that in disparate in to Well, and you can, that information

of Stevens or which For some be the and instance, may buildings, efficiently an monitor another from like will of if individually have total to may to the where to if of It systems have all and the system you making transfer, you loads decision. installations, very of you connected. one necessary enable individual intervention series not seamlessly having in the system different without

Robert Panora

Yeah, Ron, I mean...

Benjamin Locke

Michael.

Robert Panora

no act not phase to now grid. be be it's whenever, have will has much DG ride Standard] well out, in call to by this - and a off if to some by forth, going standard an happened will years certification situation something on if don't would Mike, be our there what and the have will think know the or on But causes the through e-mail, so phone to But to do human and maybe that. this the have through inverter is or it. communicate And that in included systems [UL a automated sorry. That coming too it's to be includes where year, [ph], be - that, dispatched is from utility there has in solar next not of - we'll some participate of how years I'm back of programs response scenarios by might would - inverter there's that or it's they as that sort systems, that crises us. trying some interesting we the utility. by like It's constantly, that a the - in not new us overload be very But heading automated but that And the is there's the cogeneration interaction. I inverter way, like something quite could but different two increase apply units system able way demand that telling Germany. will based it system. to done second be with and we the generation grid few caused

describe with if I what don't know asking, the that's I to closest So, up you're thing think come can that, I Mike.

Michael Zuk

you, that at I a access forward paper it. take out think look I'll to. got there's a white you and there to can it I've

Robert Panora

very Very good, good, very good.

Michael Zuk

secondly a Bonnie for liability I the then sheet. on question, And the condensed on balance - guess,

the will be in straight line, contract how guess, think contract non-GAAP and liability, depreciation of We amortization the of or which disclosure and we have question and be toward amortization. is a line, it I came then, have depreciation amortization? unfavorable a is the that liability, unfavorable that will And amortization And ADG. from more my fluctuating financial I of much going

Bonnie Brown

It run as will on, fluctuate. decrease It will as goes time out. contracts

I it So, believe the was to in offset of neighborhood somewhere XXX as depreciation. the

Michael Zuk

X over the years, the be amortization contract period XX length? XX what, And based a will average on or or of

Bonnie Brown

on Right. going contract the It's to life. based be

- out that out. But far will So, the go it could as be years; and them furthest of some as XX do.

Michael Zuk

basis? And done a on amortization per-contract is not and an aggregate

Bonnie Brown

right. That's

Michael Zuk

in words, that so a the benefit other will financial be items? for reporting Well, non-GAAP long-term in Okay. us of

Bonnie Brown

Yes, for sure, yeah.

Michael Zuk

Just wanted to clarify that.

Bonnie Brown

Okay.

Michael Zuk

on That's all I fronts. have. Congratulations. Speakers] [Multiple It all like looks

Benjamin Locke

Thank you, Mike.

Benjamin Locke

Thanks again, Mike.

Operator

you. Thank

private who's Aur] question. a question your with of the from investor. Please line [Tom proceed next Our comes [ph],

Unidentified Analyst

you? are good guys. Hey, afternoon, How

Benjamin Locke

Doing, Tom. Hi, great.

John Hatsopoulos

Tom. Hi,

Unidentified Analyst

a Hey, John, of ULTRATEK. Bob. couple Ben, on Hey, things

at looking So, investors stock. if bought back when formed, in in, And recall, they I put was think - Tecogen I'm XXXX. December just bunch bought of money partnership a they the I the

was XXX,XXX shares. XXX,XXX it think I or

Are Now agreement we've stock, an to them Tecogen with sell What's to the they it? they it? had if to going investors. we exiting sense have there? with partnership. the kind potentially with Do know a they're bought? disagreement strategy XXX,XXX those our we their shares We dissolved of Do sell respect any free them

John Hatsopoulos

speech My agreement and matter grandson of working as of managed has a disagreed some no a give the of I is is investors me well. apologize. There but among my now hearing nor right neither two-year-old John. that was fact, start And To themselves. some Tom, whatsoever. good, my this to my with, cold, kind ears are never even

of the Some expense, them our technology good right advice to that last make automotive of under their goodness, at forget - way, that in we to companies that continuing prototype to try in by process, disagreement, all of at Board interested go name. the for we was because from now works. And that fit ask members to can do our on expense. investors had this a they right the What want hood. is were the looking And were I one or them prototype Ahmed and it we is to position we're now. the his want do Thank name financial whose acceptance

Robert Panora

Ghoniem.

John Hatsopoulos

selling have are a no - and Ghoniem. they them he came Switzerland, and complications, matter some to financial if talk the they do now there - the And of they're spar bought spinout, automotive still telling that very we of prototype. last fact, a a to talked a both that positive eventually of make not are we you lot all that as disagreement they I'm if where our me reason allowed And our would fact, two a this allowed matter them with that And on investors. both week the invest I'm spinout, that know have negative. me them a Is right asked we The that both also venture. people might is you complications well, the in to one shares they're - companies in is of as in this in. the felt assured Ghoniem. small interest rights lose a about to I be this if But very anything. assured of and they in not debt with of we have

Unidentified Analyst

is under deal to Nobody what. All XX% been yet a don't just buy ADG right, down we has ever never the to with want and seems for The fine. better. orders have this. I is is But year. pressure. have reason The asked signed backlog The never constantly The the consummated, matter Tecogen's been stock agreement. why stock is it, better. no

million two almost We joint away positive. can extremely somebody zero have say mean, just mean, partnership a this, invested like of doesn't that's time now I $XX just valuation it had a So, a - ULTRATEK disappointing. It's not the venture at knowing I me, dissolution is valuation. nothing. the we I not only looking it. a as come with on years this, I'm in to if look, and much potential of

all You We're another where It's one looking major place four to have can to disappointment. a to is That in. reconstitute two any get of it. probably kind to revenues. before a you me generate years years you at

I So, under as that's do. balance sheet, but is I the this I of look think I at the really the And mean, think I cash of big know reason I a just got negative. big, a - pressure. that's stock you've on why the lot part

John Hatsopoulos

is fact, John can And I I speak you. you. with a me, agree don't have if Ahmed you And you want of with matter Ahmed. as Hatsopoulos. this should Tom, call

four applied patents to have why which we strengthened our for. retain them, position $XXX,XXX We That's for dramatically. the paid

As you of fact, a matter companies move as can, they not automotive fast And as know, on. should. to they don't move they do possibly as everything

money that having this. not So, investors - own we it, for to a but are this our also, have have do of whole develop is investing And to Not we in only problem. we a in money lineup interested never...

Unidentified Analyst

thing. that, is the get here I but

As in proprietary your lasts technology, edge edge so know, you for long. only

before so lost years, another away, and And so lose we've a edge. your now know then have cap. small two you and it, you we're years And - two gone

is still you for ball along. That years any it's don't it, before disappointing cutting you think for revenues really it I'm the and attractive what's is so I out of and that of we just to any it And somebody stock. disappointing, have very drive just have generated and thing. haven't or or theoretical. this So, two bigger it, is think today else out no a generate come if and finds super on figures revenues I is me real saying visibility comes penny when edge, it's we know almost by someone this a - patented potential just we'll home-run point

technology, the someone all you patents not licensing for have but want, doesn't good. or you're isn't the it any them paying can You if be

John Hatsopoulos

if start their to our Bob us answer then probably We anybody to violate add our experts it, something insured Lloyd's defend me tries With it. I'll own To Ben or let to patents or is that, answer committed to as of you maybe know, copy Yeah. want these are Lloyd's at you. patents let And expense. with, London. the with patents,

Benjamin Locke

to talk Tom, know add quite going I well, surprised. was about thing you with and only the you Well, I happy be - you're think going more is it, to well that to but I we mean,

going good be a by lot we of technology. a crown It's lot vehicle about Bob, to in ULTRATEK and We've couldn't a interest. at lot a embarked are work of - lot you're what when did that's progress progress think, pleasantly all our work work, you jewels, hadn't in we I mean, And AVL a we intellectual these made of have surprised, our of past us Ahmed, think on of our XX if our we lot with emissions I by we made with if it, result, the the all to far, months. now, control. done so back it coming property,

beauty more I best with understand your fork truck the investors this our in way, go. I our do. too. think is a can position. truck, the it I good frustration, provide under or strategy it own to near-term a commercial going and I way is at That's of it price is is of I and shape reality some bringing look to having in share And to And somewhere. form so, near-term. and some our I under fork control the yourself as the we're course, think the something And getting more beliefs think gratification But that

you'll surprised. I be be think, - but I your So in pleasantly can I going anyways, I understand think frustration. appreciate it, to we're

John Hatsopoulos

will will the I couldn't industry, that us to far added add giving automotive a to automotive to forklift automotive Bob technology. be the some which otherwise. than and has spinout, the forklift as as we this much if and start the we disagrees. the And concerned. Maybe do both together, less to be When the do returns I'm time we forklift

Robert Panora

No, you're spot-on.

spot-on. You're

Operator

Thank you.

proceed line from Asset Blanton with comes Clear Please question with next Our Harbor Management. the your question. of Alex

Benjamin Locke

Hi there, waiting patiently. Alex. Thanks for

Alexander Blanton

me? hear Can you

Benjamin Locke

fine. hear Thanks. can you just we Yeah,

Alexander Blanton

Okay, point, what great. disagree was with the I made. that last also On point that

time to AVL test prove and of what out And regardless happened to would You've to venture. done, the with that the joint done the had going take testing I got have testing. been concept. it's mean,

And you... so,

Benjamin Locke

the didn't to the Except time. our that own, have on do we capital that at Alex,

Alexander Blanton

a or was to joint that didn't person that whether this spend I venture comment the not saying take what survives. to year-and-a-half you're regardless that But made right. account That's into who the is going that product, testing of have

true. So, it's a Not not delay. was true that there

Benjamin Locke

Okay, with I that. agree

Alexander Blanton

the time. the hands stock in dollar buying, volume. of the changes I On every lack it mean, is most selling and day of very low the little volume very

anybody selling. of of really lack isn't it's And isn't due the is there following that selling a buying. fact So, to just minor stock. that probably lot the very a It's and there

a at and it, it. never on have recommending hard any That's this for one that it, nobody simple. mind you Now, consensus a all, There's estimates buying time estimate company. finding nobody writing why pretty there's there's no is

in analyst, all analysts someone The and it, to to say the interested are who's a really who also I somebody small this - need most need because they Because the find really a this find who environmental in a impacts, to almost like don't great to investors don't the really it, technology, commissions, generate that's you in and follow and never I'd someone do any people about willing Street low. bother. tell favorable of has impact, which sell-side stock have that, so is Now, a deal of they environmental can't who believes have can company. volumes low, But you is company. really who's heard why question,

Robert Panora

do have two we following believe Yeah, analysts, but... I it,

Alexander Blanton

Who they? are

John Hatsopoulos

let Bob, why Jeb? you don't

Robert Panora

Yeah, here. Jeb is… Jeb is

John Hatsopoulos

the for that Jeb's the can one level [ph]. you] [create

Jeb Armstrong

Alex. Actually, morning, Good afternoon.

Alexander Blanton

Hi.

Jeb Armstrong

two have have of already, analysts both H.C. us. us covering both and Maxim do on sell-side the We cover Wainwright been whom call

Alexander Blanton

I that, it? I got because Who on missed it. I so really missed Wainwright? the is late, call

Jeb Armstrong

Wainwright two we already coverage. have so sell-side and Maxim,

Alexander Blanton

okay. Oh, Maxim,

Jeb Armstrong

Yes.

Alexander Blanton

question doing is need right. really companies some this. it. We All larger My

Jeb Armstrong

Alex. that, about talk certainly can We

Alexander Blanton

asked capacity spending without to money and know, but these have orders Should the if not, don't you expanding And or get I you it? plant this doing dramatically? do anyone's your your production expand

Benjamin Locke

alluded this the in that but first - Yeah, kind I been call. mean, office is to Alex, I'm Ben space. again. Absolutely, I you've if speaking the got sure we've and our of not building, to

Alexander Blanton

have… I

Benjamin Locke

Yeah, yeah.

at reconfigure kind the And space certainly It's things don't in And we're to ad-hoc. office do got it we're anything to reconfiguration floor planning space. need of another We of we've for give space production, and don't that of - our start least looking more here, the need office But more utilized. been it is the in making we drastic to or don't back. front at now not So, all manufacturing building. that. going

covered spurt, we there this do. in here beyond stage we're think were experience I a So, can the growth, next of If to real other building. stage things our growth next that, are we

having at more certainly, You to. but you little a within still And that, extra could do building. little shifts that more yet. time. a could we now, construction going right there's second work getting bit think a I And that we're bit on, in building of all start our the don't pinch go limits this and folks

got where we to are. few levers we've handle here activity, to a this in pull increase right So,

Alexander Blanton

you space, out that of effect the production therefore, doesn't on mean those costs, fixed? correct? have And margins, get you're to and facility going costs, Well, that a if are greater same that sales positive

Benjamin Locke

it. got You

Alexander Blanton

Because at going go that… not to up, fixed are costs not least

Benjamin Locke

any anything we plan when Yeah, putting or in renovation. we do expensive marble this on don't

right. what, Alex, one mind I goal on a things know you're think You we that's so in with and productivity, budget do

Alexander Blanton

Thank you.

Benjamin Locke

Alex. Thanks,

Operator

for time. questions back turn to this further no closing like are I'd comments. Thank There to at the you. floor management

Benjamin Locke

us Thank this for on you all joining call.

you I revenue joining a record for we'll and you to record commensurately conference all us, soon. I call. think set our our talk we for and of appreciate length set

Operator

This teleconference. concludes today's

You your participation. time. this you for at may disconnect lines your Thank

Tecogen (TGEN) 12 Nov 172017 Q3 Earnings call transcript