TGEN - Earnings call transcript Q4 2017

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Operator

Greetings, and welcome to the Tecogen Fourth Quarter and Year End 2017 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-session will follow formal presentation [Operator Instructions].

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ms. Officer. Accounting Chief Brown, Bonnie Thank you, may begin. you

Bonnie Brown

you, joining our Good and call. morning, for all you thank year Thank Michelle. end earnings XXXX

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

other project, like identify forward-looking known projected describe our any begin, Safe risk, intent, income, containing materially uncertainties estimate, implied may documents Before to forward-looking strategy, accompanying or statements. may likely other that and This outlooks statements, statement. financial other These by or or expect, I'd plan, and may such such forward-looking unknown we may factors non-historical Harbor only return should, our or differ to potential, involve include read to target, that anticipate, actual statements which results revenues, could as goals, and or and from intended matters and similar conference cause measures expressed call expressions believe, are statements. those will, predictions words

place uncertainties, reliance these not undue should you statements. on these Given forward-looking

obligation statements forward-looking update as speak date no the which or are Forward-looking made undertake we revise of they any statements. and on only to

terms changes cause and business results, the services; fund to our in projected rebate existing and development; our for growth. demand services; results of In integration environment Form relating and our could following; quarterly on and favorable relating to to and operations the to products ability financing XX-Q benefits among to past of our in relating developments; regulatory addition reports research incentives, and availability on obtain the and differ acquired the from future under issues products anticipated to operations factors actual and services; products tax the competing to Form fluctuations those described our that factors on report materially annual XX-K and are risk technological in factors

financial better in a measures, EBITDA, internal GAAP our non-GAAP perspective presentation financial enables performance provide the from turn believe investors remarks. to evaluate financial perspective vary described eliminating otherwise the business performance current measures, John relying period-to-period adjusted that our now business addition to call including not includes may exclude meaningful operating of historical presentation. measure certain and some when without core our underlying to measures. EBIT correlation a and and the I'll performance understand financial use this for performance our measures and be items operating non-GAAP In trends as of presentation apparent GAAP that the which of over on We operating to expenses operating in that and solely business opening adjusted certain highlight as by of Hatsopoulos

John Hatsopoulos

gentleman. and ladies morning, Good

SEC meeting and the have. to mostly will might years; an our if next there questions after with agreement to on advice for I we be financial asked annual job investors answer be there three call the next that file now of I’m and CEO an know, by Company. retiring I’m not my going to couple last As to; of take you the that I’m conference the board meeting one, by leaving annual probably since But as is assure wanted company, number this to I as my and for matters some any from minutes three the years; be have both also

our this that least myself I investors. Number for the Marie and our be will three So to one take at possible tremendous another teams want also quarter made there with my hopefully company. three for minute Pacheco and office record a Ann thank years. to one future

will wasn’t suffered company for hope and be. do a huge that and make while As much a can there success you the try I all we other investors know, our than

to team headed them management Ben The Bob that not thank the had. second Galiteva person help by was work pass our Board tremendous it and his but and the Ben Angelina least group to They like for that, Locke, and thank I it stability Last them by I I Bonnie to of headed With been I and have the responsible seems amount and in possible. on there success Locke. Bell we to Panora. want the team advise all done and Ben for chair future Directors of other they’ve that people is two they but made to want would support who’s of creating the company.

weeks. as another he be that, he of well Thank deserves. exclusive few Now will CEO see, he’ll you. CEO become the after you But company for the

Ben Locke

financial I Electron Thank And the of the success. our success company Thermo that thanks we the company, people the guiding to where page through today, acumen of that. strong the and to book, really want found root we thank you, we good today extend leads It which a And as with the company taking John. engineering to the for where successful. really years out to and science, on demonstrated are John to is are is we’ve behalf company John of

I John team for will that, our investors think and management I thank for that. So the hope

performance on and company’s reviewing recent X. quarter the So the turning financial call then to the overview achievements give for indicates I’ll will by of as have we our earnings the Bob as with and development, on XXXX. emissions more opportunities Then Slide an with remarks results the accomplishments. Bonnie we'll future technology move along agenda some forward see questions. financials. then to final detail into followed take expect start we I’ll on by

always, new is core who X; and power Tecogen's shown model be heat, to off business As cheaper, may cooling those on about start company more and that Slide reminding reliable. like our cleaner I’d to

the infrastructure. and and for technology and heating, traditional proprietary buildings grid truly to resiliency methods Our improving of disruptive cooling efficiency, powering emissions is

was terms Turning to for XXXX performance. in record a Slide X. financial company year the of

results quarter of XXXX. XXXX our more positive over marked was the only $X.X with EBIT also the calendar XX% and operational sixth consecutive not at full almost for first it adjusted increase a importantly, record, fourth revenue full million. was EBITDA And coming year the adjusted XXXX quarter year in in Our the in $XX.X million of $XXX,XXX

Moving to Slide X.

a in CHP Bulova which major You year quarter positive year such pharmaceutical customers, sales result million, the orders through We this of Center, is a existing the KW the XX% $X.X full was The over both company of the such New to fourth XXX record to earlier a buildings carried income to results million, existing Jersey, board across record bottom XXXX of were a $XX,XXX. of profitability to XXX Tecochills. bringing way was on-site and both for replacements revenues and in replacements John's $XXX,XXX, customers, income the This product net all that line. for segment installation Corporate orders, utility from quarter in in revenue and fourth growth accomplishment year XX% result CHP fourth of the for for can compared ongoing achieved as to our our announced of company full the the ADG system year XXXX. for apartment net increased see flow Riverside for as new existing New a at chiller $XX product to increase major Hospital performances City installed resulting the St. York quarter services and sites. strong the Products the strong several the fleet order and of the full

more for production key installations the of nice million company. recognize size improve applications in this XX% continue expect as as and XX% other installation our $XX.X a margin its economic consistent cash full-year applications. Service project. HVAC has for to fourth quarter the revenues and continue order flow was margins again so-called market expect CHP other chiller such tremendous to over increase systems ensure with of for a the rose strong savings hold and customers mechanical energy gross e+ versus the basis. We up for to as CHP of indoor achieved continues provides was results our Gross the InVerde million to to X% flow the growing, and our such baseline that and quarter hospitals increasingly best as and our sales installation quarter, Tecogen as with close revenue we on a line revenue that the also industrial Turnkey range. be for the to value of continue XXXX, and expectations. the $X.X prior XX% over superiority for year, rinks been fourth fleet at higher in recognizes segment a and quality enthusiasm million steady XXXX. due to production will in driver grow $X.X applications ADG’s can as service a for ice Energy traditional And once strong

margins Consequently, in gross XX% goal including the Our gross achieving continues quarter ADG. million $X.X the fourth in when to XX% be to profit XX% to grew range.

identify of As which increase money while in software prudently costs year noted, record save our for continuing for long to new the maintain to operating million. the ways as to lifting we the internal efficiency. to increased the I previously run full company $XXX,XXX will including operational improve EBITDA systems, EBITDA our implementation quarter, is ultimately company, the consolidated and This a adjust important to growth, $X.X

sales team. in agent in XXXX also We generation also sales We an project sales advanced streamline and our lead qualification are and considerably helping platform to which lead is increase continuing our process, implemented to sales outbound and invest extended network our development.

to business. show invest going to it’s results team the continue XXXX sales the will ways our the forward grow in one of We best as

Slide to on X. Moving

sustain which our at discuss Our basis investing year-end. indicator growth. will business Tecogen This also backlog I not exceptional established our is year-end but a allow a that continue $XX.X in quarter results is shortly. to end momentum a backlog, of a us record for and only key bit will stood the further basis. at on ability A million XXXX future profitable has self-sustaining as to

XXXX, a As in financial able end balance past the retire quarters, on of were million few result the before $X.XX of of we debt sheet. our to our the just convertible success

retire the before capacity have sheet freed the due covenants, better a it restrictive the enables full us to only utilize our should balance became need debts borrowing to of on it but arise. year the which not us opportunity We also

us continue access that allow needed the bank are in securing our to capital of process to We currently growing business. credit the a of will line

is turn Slide streams. that backlog as our I’d on XXXX. helps Our like an this in to in profitability, the a completion And line goal American the second capital in was XXXX to accomplishment addition now year full to shown balance important stable, significant DG other now source working the our of out credit volatility of of ADG the finally, in in quarter. finalize high-margin acquisition achieving May revenue is revenue of to X.

mentioned, comprised not previously backlog and this as installation million. As record of important product and services to remember segment. does year-end our energy and and million segment of include service a Monday, at at backlog the is was stood that it $XX.X contributions our $XX.X revenue of production It steady the is this

we and our base. broad indicated, diverse As have press customer earnings release

While seeing multiunit we be a space of business, industrial the interest indoor healthcare, manufacturing our residential increased portion continues and big in in are to growing.

In at help driver another outlook. cucumber facility of XX call and sustaining facility chillers sold key agriculture that emerge of briefly into three drive important the Massachusetts fourth an $XX We two our quarter, grow backlog on be the now of to drivers integrate our outline continue Ontario. then them we installed to the how touch grow some in end offering. continue product and the XXXX the target they growth. at I continues Indoor near-term announced market and a will revenue to at Slide to chillers to regulatory as million. follow-up over

expect continuing developers applications engineers this to for in segment XXXX. grow work and Tecochill more and product more are project with on many in consulting our orders We related

mentioned high-level that ESOS, it’d Next, management and product companies, or the in as we property This Tecogen energy company by call, in on reputation to are leader on-site premier can entities multiple partners whether parties. financed maintenance, CHP service engineering, consultants, companies a choose Tecogen technology, as as third that be the I who utility installation relationships third to engineering efficiency recognized firms, to are the energy extends bring is table, build and with projects service our overall for the quarter also country. continuing projects

and performance are considerations agreements key service product with long-term when financing enter companies Our customers. long-term reputation

end more becoming that talk and operation, XXXX. of automated are involved require the as for more call. Lastly, the projects micro-grid about will programs on we grid we more off developing at with see I controls this in will

In becoming combined is extended at the as and Jersey’s in the of and front lawmakers retroactively end appreciation tax and expired on XXXX. XXXX in among the favorable the appreciation The a new the budget the rebate NYSERDA ITC such program, our situation here in law investment level ITC XX% cogeneration. the view, state New the back program Next, extension had passed management’s for federal and ITC XXXX, This growing more state. end New of project of extends power bill the start to the regulatory through Save of credit XXXX. Mass York's state or SmartStart incentives regulators the Tecogen. February signals The of heat via the run program, for home continuation for

as programs well in means other with are utilities. for Con utilities supporting electrical areas as territories, new evidenced capacity large Ed as electric CHP embrace as by the constrained Next starting a to

of distributed control to being larger technologies at end overall to talk becomes As part grid and generation utilities infrastructure, country's in of responsive a required power role are important allow call. electrical assets about the stabilization. this play our interactive an supply will the more generation I distributed by more

emissions that on level Management as discussion one countries. emissions a as has adopt across validation Technology BACT adopted of segue Bob’s BACT. other release. to press Control The engines, emissions emission for for states the This discussed stage on in stationary, our similar regulation Available internal Best South sets non-emergency Coast Ultera the combustion yesterday's standards our Ultera nice was provides technology Quality California or and Lastly, point Air final in District to

in Turning the development achieved Bob PERC program. exciting funded our to fork will outline we have accomplishments truck emissions.

With retrofit technology our to ULTRATEK our left Bob. we to venture efforts with over Bob? continuing XXXX. Ultera in turn and off with automotive technology program Our to like other up engines progress stationary I’d where emission as late course of emissions joint pick our that, it our

Robert Panora

will you pertaining first appreciated. from Tecogen been emissions have for it’s initiatives research My propane Good thank fueled grant discussion regarding the I morning, and cover technology’s thank will regularly. Ben. you I the John Ultera to to on adapting propane Tecogen’s kind awarded progress that today And Ultera fork words, for those our reporting industry technologies review trucks.

late achieve. the results in discuss our successful testing forward days received which Several levels more call request hoped manufacturing system in our and presented a ago, to in to and highly As moment, partner I will its in a detail that reduction conference April positively. attaining in our and our the the was were we view to. of had meeting Upon in facility concluding operation, course look we to

Second, I ULTRATEK dissolution since our November. in will program provide of the the status automotive of

work more We are utilizing subcontractors well of are portion very continuing is The known now expertise. efforts momentarily. of Again, this our innovation. and initial outside detail our respective underway

establishes our an that with successful of This generators yesterday provide in Coast the Available CHP Lastly, Best areas, special Technology retrofitted announced the South including units release press I’ll in permitting Control SoCal update engines. miscellaneous regulatory Ben our follows were will and emissions just be in that Southern several the review the of technology. system new and a California Ultera news the our alluded for to. rich-burn subsequent Tecogen District That in

begin fork truck. with Let’s

fork a Now being has importance a stringent as zero find grant new the reduction there but the we to capability that California. California, certify provided The new of a truck. requires zero this all generally share fork California so as average recent attained. been base Council, has market operate of late trucks pollutant tiers trucks, also is list the the XXXth industry emissions the the fleets retired but has strict still. be national and the eroded years, where to to significant propane managing concerns optional From engines to demonstrate announced smaller fueled the that level. yet research with industry setting, near magnified. extent for battery-operated certain maintained, of vehicles lower each large certification replaced We be project to are tier than PERC, fork the with In because in requirements be the to Education need a below company in for pollution program value. was level also national of in the the for interest particularly mandatory to has there trucks level versions not propane acute and strong because indoor indoors Propane which prescribed regulations maintain once. require average cleaner certification in several is believe to outset, of lower by issue. potential emissions their health most cannot Ultera's XXXX, these Research the are category, with The trucks In owners the regulations is because The from levels If a have are optional available. single fleets tiers Larger examples ones. utilize

On positive fork their the near trucks Ultera strongly the meeting status if is the the trucks near-zero and side, incentivizing road suggests both standard. electric state own zero for the over attained. incentivizes currently the technology This potential

these we Tecogen to to use. ago fork Given supply trucks we’ve XX and a secure regulatory testing The through a is was team able commitment truck major market depicts to company a progressed fabrication Slide year just truck fork for test the which drivers, fork under run and and a testing. support for truck about from received representative engineering were complete. heavy to our

red The truck. truck This X,XXX cycle of the close from strenuous lifts associated weight subjected measurements monoxide to is is in states, XX emissions for to measured solid repeated the after-treatment rating shows X,XXX supplied or period. NOx. the the is in i. on the The test lines after concurrent with Ultera the the minute in the nitrogen a chart pound system. duty these depict the lift truck carbon before blue heavy pounds emissions, while each chart oxides on below the XX concentrations entering heavy top as lifts this Now in factory a e.

atmosphere. into is lines familiar XXX line can XXX emissions, range post dash blue final exiting loading million as are to measurements represents the Beginning in Ultera per the excursions pre-Ultera we engine the emissions see solid While the cycled. CO price the about with

have as XX% However, dash a on NOx very is by factory amount zero basis. and line, with bottom blue dash lines, removal is in two is the shown eliminated with mass close truck chart corrected cycle. the over see the performed would line the equipped red the in leaving at This AVL. looking expelled in comparing solid to at vehicle the being what in we test of Ultera the been gasoline our XX%

to We also or total report of hydrocarbons, able THC. efficiency Ultera are removal on the

were hydrocarbons Although, completed a single say added to chart we pollutant, for by prepare to emitted system the their prescribed today's tests. single the can Ultera. We know total leaving together be a primary XX% call, unable hydrocarbons a require weights below we approximately as just NOx of regulations and the was eliminated are after-treatment and We these treat limit.

As such, near slide, shown. zero reduce is NOx the is the to strategy In to hydrocarbon significant. removal next very values our

of engine the highly we factor tuning tests effective the at after-treatment elimination alter that’s Here the NOx. in

treating this NOx very it low the The the factory of side CO shown As concentrations effect solid shown in blue completely factory by eliminated in is lower detrimental in less tuning Ultera. is process, effective first from as the the system of stage line. the are after-treatment graph,

tail Ultera process. CO near emissions dash both in type that blue and effectively is the for are CO NOx the shows showing post the eliminated Hence the However, zero. Ultera very line emissions,

CHP successfully we zero in done fork utilized at expected a near conditions. all test exceptional strategy Tecogen their operating was great direct are while see a In under results truck. low this fuelled this load, products path been in our tuning Moreover, these to summary, effect still While has propane effectiveness. to

detail this compelling, they April. via company fork to results senior visit staff Tecogen with we found a truck the have in As plan mentioned, in teleconference presented they as to data late

our Moving work. automotive gasoline to on

the last approved Tecogen further ULTRATEK that of earnings joint all our venture. was of $XXX,XXX, it $X.X is for was the parties property cash ownership As call, agreed It intellectual of by discussed to of obtain would netted which next the complete initiated in The Tecogen portfolio on process million. from hand, deducted chapter the have and we program. dissolution dissolve portion our

in that is Ultera or Our their grade one and with full regarding will especially technology base reliability. of potential specialized to implementation goal with automotive components. enable to partners vehicles more the upgrade confidence This cost evaluation, show have

add have We accepted our focus generator train paper subcontractor and as to phases customer this retrofit initial automotive after-treatment work Congress initial power to several for standby will the phases respected catalyst April on stationary in highly of have The a is permitted and would expert four the we In generator completed the annually. will Later they a that Ultera development. XXX a that market, would typical work Their optimizing generators for dollars is formulations. to about distinction months require funded exemption, we followed qualify SAE prototype. development component on of was SAE Exhibition peer considered on that reserve for their however, the they testing submitted had those review, April. for paper operate Congress in our be to needing it Recall engine not significance. published be XXth. a for focus and project. of want the refined be thousand international will by our new World completion full higher number in recently this the Journal, presentation I hour at to After of which Tuesday,

an update postpone required understanding operational managed test they have mentioned that and call, some the out units do are in is not process test. third-party emissions step It the issues. while meeting and measurements was on and final the work fully customers. in both unrelated this levels from official As last our to We they our have the the our

at for or technology that engines. we by in available. engine cost-effective cash engines, BACT permitted other Available California the As Once so, units To reliable complete our Air District to utilized mentioned was in earlier Regulated needed it was on Technology the clearinghouse, Quality Air be to review Best based we with That BACT districts rich-burn a by do today in generators Coast Southern technology the mitigation in experts is and Control best have announced process the reset call, Quality South Management Air powered in lengthy was their that air the available other a that technology listed their may Ultera review district. quality concerns. determine CHP in of country areas have this

As stated in advantage change the -- our Southern technology we advantage an market products rule important from expect press release, Ultera important migrate our BACT an products that validates California. giving while market to

were stationary await experience requested us quotations and original the They and told pleased and Ultera were Bonnie pleased of information to to Ultera quite out month I their us week we that, several will they we customers for hear substantial years ago from last new one reached With in in very Finally, call kits after our Brown. price and feedback. turn market. with delivery submitted for a about which larger their were sizes. the These to were

Bonnie Brown

operations that been Bob. essentially necessary the the as cost ADG ADG owned a revenue not to year-end. been may financial evaluations our have Also, Tecogen the ADG’s and includes acquisition sales of call. energy as completed finalized how and it’s have in of of XXXX, months. of for seven with of like only you presented May regarding date. production wholly those start and became Thank new after ADG operations our Tecogen’s streams the in of you, statements of purchase Since revenues and the of May for has the Tecogen accounting in and analyses Therefore, subsidiary been I’d distribution are previous XXth consolidated with included operations joined who of

on financial some the XX of end the highlights contain year year-on-year results. of the Moving to Slide results.

and revenues to modules increased to grew First, XXXX and revenues of year chiller and in a by compared and delivering XX% $XX cogeneration like half growth, a contract XX.X% grew to and grew revenue XX.X% parts annual the the sales revenue year-over-year X% continue Total increase with XXXX, product year in for of on annuity over to record total reliable service provide the Long alone year. revenues to sales. XXXX for steady million. compared for service stream. revenue increase XX% compared its revenue continued service Product our term basis a well bringing X.X%

contract. $XX,XXX ADG in also for compared production product the for to revenues long to our due to per our the for or annuity an of owned material, per year-over-year. year, Tecogen from of to margin was XXXX like is gross shares to This loss million $XXX,XXX declined market loss Product to loss to mix the XXXX, to added adds a basis. breakeven comparative profit, year. increase our efficiencies share $X.X activities in Service backlog the $X.X share, source have XXXX a unrealized of service and income diluted, rules. million XXXX. our end million for XXXX. new compared XX GAAP's ADG Power, XX% prior in overall second represents represents comprehensive ahead management’s Energy in weekly its period revenue of which for bringing gross $XX loss maintenance improvement a to an XX.X% $X.X and of for sites, EuroSite XX.X% an with total down market higher is at on year. $X.X our or by the of service to Net year was accordance XX.X% loss a fluctuation of in last at term XX% of to revenue We gross $X.XX fleet with compared bringing revenues income as the income a of million energy service percentage backlog in margin XXXX XX.X% profit Net important million gain a exceed EBITDA Other the consolidated This the recorded ’XX. due as revenue of to $X.X the $XX year gross attributable versus product an for implementation consistently loss unrealized efforts. production in was margin margin gross margin Monday provided This in fluctuations the utilization XX.X% comprehensive compared compared price basic and million of contracts, presents million XXXX trends, margin the Slide well and loss ADG. labor Installation projects, which and factory chart at lower goal other from period-to-period from currently of with subsidiary to $XX.X for of and were carry historical mark-to-market profit production or a and and gross consolidated turnkey as the adjusted million. both stream

As projection energy include of or backlog contract not does always, service a revenues. production

of XXXX selling invest in XXXX, to in the adjusted company's $XXX,XXX the significant compared Adjusted loss XXXX million for EBITDA the investments Looking $XXX,XXX of We was activities year. fourth an and the an quarter heavily EBITDA XXXX, EBITDA positive improvement continue adjusted through to for a year we in to the at of of R&D increased for improvement QX $XXX,XXX future $X.X throughout of million. compared adjusted At achieved $XXX,XXX. EBITDA time, of same schedule. the $X.X

percentage the million the for margin model. metrics right blue, revenue. of revenue although four of overall top growth in of chart selling initiatives time XX% revenue, however, quarters revenue control right of time production revenues on cost the increasing our XXXX. green. is are, components Turning line by reached in The revenue small production costs delivered seven the compared along a bars charts are dollar focus continue four period to chart rise XX.X% annual and ADG's G&A in and worth the decreasing cost most the our sales expenses slide of $XX.X to $XX.X illustrates on dropping an XXXX. chart the months mentioning. Effective for percentage trend three using XX%. to efforts in represented energy let's Starting remain gross targeted as the green, that to trailing without of a absolute the of to revenue in illustrates controls with of an to over trend in XXXX energy million, This total margin with the terms, the over On XX, in The management for a left, to have of including review improved Operational track and gross as these the revenue trailing gray higher the of X.X% earnings. circled affecting energy chart in side produce the which a revenues trend Overhead approximately at results. range include the all XX% that quarter year-over-year year categories. expenses, continue XX% of There company basis,

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

one-time Second investment selling associated ADG in is our increased the in And R&D investing with activities, the third costs are our future. and merger.

convertible Michaelson we we that XXXX interests addition, under in repaid agreement. plus of to this In are the million notes our report obligations held happy accrued by its fully $X.XXX discharging

its related we associated of of party works and the only long and year. remain that the exceed backlog $XXX,XXX XXXX, due The levels sheet the to of plus to margins have gross targets year-end deliver throughout maintain As to accrued continued company goals the consistently Management interest. on remaining balance same. is debt our

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

Ben Locke

you, Thank Bonnie.

the rest of our distributed look more an country’s generation generation CHP advantage which of Each continue point you represent Tecogen's XXXX, be being significant model to infrastructure. regarded towards is potential to forward take to as the these our utility positioned our be uniquely as inclusive where the century essential part Tecogen clean, it's grid trends to trends, the of distributed is to of technology. changing reliable, untapped systems favor. of in So year,

controllers InVerde inputs solar, storage as both battery e+ way electricity board and on and distributed energy and supplemental the cost customers provide owners other generation micro search cost-effective system inputs such accept are to CHP with Our grid of project on-site to and has production. low most

necessary Ultera demand emission lucrative for widespread zero solar Oftentimes with sufficient as the and/or support such financial provide near have well system. services, to not frequency grid support storage needed As for does and our as power reactive criteria alone response, returns response, emissions adoption. economics all

available and The InVerde centerpiece emissions. the grid the of best stabilization already criteria to to model. distributed solidifies a ROI grid micro grid services, them more In that and grid, and featuring adoption. the grid real-time business, embark Whether lead There project, weather additional Northeast finally, economics in the particularly a events, streams broader Ultera of with significant or And that familiar both that a as for with been of as for generation outlook the generation XXXX, are can we our need outages and and to and the support are connection New interrupt York, outside projects, widespread determination this is micro to life. maintain is of outages place, as its expect the never of large Tecogen institution, and all The the to power, which taking we as zero the every need to for California resiliency these here provides compelling Tecogen further cyber on with role investment, near recent grid core world this the However, reliability electric in recently more information foundational way reduce such e+ distributed systems technology in of financials too and technology supplement examples stability. of will control promising. system that economics technology vital in disruptions related return on of heat resiliency of combine the the technology essential revenue other represent the for there utility which individual. perspective and stability has need it’s age attacks availability, types to the

our systems as scalable markets. is the in cogeneration profit profitable, allow and stream continue servicing business will to and revenue chiller core growth installing provide markets and new as core well fundamental Our and Tecogen that selling,

existing promises grid of technology in vehicle to tremendous meet for been grid technology, gasoline has are emission emissions as our upgrading Our zero advantage or emissions to engine engine to stationary retrofitting available approach trucks whether advanced near improving micro emissions take technology best for our be generation. place In fork systems, and And the it's company. the regulations, accepted already controls strategies. emerging, upside support needs Ultera stringent stabilization air

to for throughout turn XXXX. And With tremendous questions. great Tecogen As I our achievement it shareholder. continue that, over I a a hope time be stated it I’d like is before, to operator to the to

Operator

Thank you.

[Operator will be Instructions]. We session a question-and-answer now conducting

Our with question line Group. comes Maxim first of from James Jang question. Please the proceed with your

James Jang

which So estimates, a you guys our of news. ahead is were always good

is force want this, differently? larger you’ve sales for in you customer segmented to sales force, How or built each out now been about So the backlog. ask guess the the achieving have sales I been I and you or type have doing what growth

Ben Locke

different and we’ve at productive. sales I’d James, a in we’ve that combination not and the had in where importantly more ones say, of it’s and techniques on where success, the obviously focusing a success taking things. past are sales It’s look approaches most had

it’s Our and engineering. team combination effective is very of and sales a sales

mentioned challenge. this previously very As that in engineering I've putting contemplate is even and when systems. our important think call, professional to nothing and team customers in And sound but have for it’s these equipped I

is trying to know one et them about of a say that that’s conduct our we ESCos, equipment. ability our sell sales it’d in strongest talking in way company, points whether probably of our cetera really what just and And we’re I’d we’re customers provide engineering so be security not piece a that to

James Jang

have are outselling sales Correct? really these is systems. you -- your and specialized little -- basically know that force I it’s a engineers essentially you

Ben Locke

cetera. sales Yes, approaches in addition of peer kind ratios of outreach et

one have there’s that things best the it’s success. shown of we no combination that So the really focused thing,

James Jang

out So of growth the you growth, current revenue I need you achieve more? team that to in can would with CO terms further source, guess or grow

Ben Locke

sales you thinking our model, and or had not, in them mentioned that they’re think are if run, them. people you’ll the is hire always Electron. of long get George you where Thermo which I with we true you And need team, holds out the I Well, need of Hatsopoulos growing good a what good people, outlook.

our people good on be. and that we’ll have staff need We grow as

available mentioned increasing We sales those representatives And also disposal, tools whether has I developing -- James it’d course mentioned think of I of with James, is last sales customers say, this agents, sales. relevant concurrent large them. our I’ve the have projects increasing before this to that or think of I is outside thing effect have relationships and the be I'd these at it that to portfolios manufacturers’

think REIT ourselves have success, success. the we and things just into quite that’s to course shown success able past going a property better company years a few you Of show and projects. or if in management way reading to to I to that’s you’re successful get do more to and -- breed be And

James Jang

the previously. as of topic, for I -- users what reached bigger favorite you’re It doing guess in have guess my would seems or to fork well Have the I be shifting their interest Amazon to end targets out see guys or place these Walmart emissions. is warehouses some So to setting technology some like their in out and Ultera this of you trucks? you laid project that

Robert Panora

the to what positive. World national think opportunity paper. wow, their And is say about know if it. is a this very data asked we I've our and exactly, is my with past I Conference, promote for have gas like be to Then prepare don't industry experience, that pushing in that and for results, ago, begin technology my it's in manufacturer propane the could companies, From yet big this substantial course mainly a ally. the fact to -- invited which and looking didn't have are Technical committee very technical And their we to we coordinated be he I the Several key before people I coordinate The to case us my happened marketing also I prepare have talk haven't individual at customers with they to And about very depending would also but that their that partners, on them. companies I it local talk technical of which scientific a paper ends members. money. is us They is gave. days or present to just to that this propane to capabilities an got companies committee it story has a and what global, that how XX think and up the they

the the can something that's at now promote outside but and the here, wow let's how So opportunities we just have we're we it. of cusp lab see there, really saying looking

imagine. I happening be will that So soon

James Jang

-- more have on I just I one So have more one Ultera.

side. there? limit vessels So ocean all working and not to be about going Have I going know the on and exporting you're rule IMO any now to possibly particular that for inquiries guys you guys had Ultera the you covering, the aware seeing side matter their maritime Have right on XXXX seeing.

Robert Panora

pollution We a from have, different ships. the incoming are ports angle. from the extremely The about worried

power think area work can I engines to so do they the that's diesel I or that something. on. with it’s trucks, opportunity sooner turbine an a really big the talking trucks gas that's the electric source, other natural people was fork a and there at is trucks, going And the than turn switch fork to tell they is there on made might this LA the these trucks, and peer be local and to off -- but all definitely from to out. from hurting they these ships where an are that lot with in associated something tremendous point as really have with maybe do aware. and for activity well, some that's some There's And Ultera area us But

Operator

you. Thank

next with with and Rodman Renshaw. proceed Our comes question. from Please question Amit your Dayal

Amit Dayal

projects much could how backlog, the provide ESCO in the any to you color on backlog, of are regards In that? related

Ben Locke

type I there? what of How you many of projects, didn't catch

Amit Dayal

projects, company… ESCO The the energy service

Ben Locke

in have out sure, don't answer not I a you me, meaningful don't front inconsequential. to It's front be right that broken so it it's cannot I of of in Amit, But have me. now… I number

Amit Dayal

question getting see more is for you to -- channel much this trying products out probably driven for I guys how just a the there. The evolving and how am as was

will granularity this would your on future overall these of role can terms helpful. in in strategy, how play contribute any be the and they So partnerships what

Ben Locke

XX But it’s of can coffee long-term have enter give more a bit Well, to sometimes much ESCOs cup with we and of the in I color, general, but that a you sometime. can thoughtful these agreements years. customers, discussion little XX a maybe long

a district, CHP fact cetera. can able the is a In establish ESCO to of the agreement that municipality sometimes or school et extend the length with

the growing. financial it’s if they of ROI care long-term distributed And and that prescribed be long, stocked if to There’s won’t ESCOs the just don’t agreement, this company say and I portfolio I it’s with have think that you just the folks they those more relied do able to and that's so the the last And the to the that will one, they’re been probably maintained and be they, by Amit, And most the And at and generation, technical run we And to equipment ESCO. with a that more companies ensure going benefits biggest and say is looking asset because our another deliver it’s promised maintain. they need details we but number as that’s that are turned financial is the the up business relied that's out important going us them. service, say the happy. ESCOs like they deliver concern that's has know the reputation to financial upon rinse I'd because at all if long repeat, for of importantly, is where to that they customer and for that Tecogen’s the the that’s things. delivered will. everything we’re the then all we can really to time they numbers upon you to all there, for as excellence And shown that. And

we’re going the ESCOs is I it with to tremendously can’t So meaningful out project break there. Again I going and but forward. backlog of see number more that demonstrated think we in

Amit Dayal

see regards or has how extensions, has were the in accelerated added that may later that to or negotiations ITC in pipeline these to you conversations any And you having that be the year? that and do happening

Ben Locke

professionals becomes or you might of the years. liability got hey, lot talk a able ROI. ROI if a ROI with in to middling very communication of four your maybe your a years look can Absolutely, And tax a to five this, couple advantage off I suddenly our years very customers knock with take mean it and a three two of tax have you’re you here, achievable or if project of indicate, that we’re

So decision the indicated we the indeed, because and we with, the to could Xst. that we as that already not are January our reaching of more importantly retroactive have sold maker XXXX, But deals to be all we proceed. back, customers even then it’s making this to customer decision closed

Amit Dayal

next level assume is service there margin from should margins few as at good XX chance XQ that or a then any bounce least for the we perspective, And indicator quarters? back the the

Ben Locke

decided keep aim installations because margins you cost some is your service are usually The projects you segment just margins best of as will. sometimes have well as as some slight are that’s of and competitive margins maybe a you for and our if service know the I pretty change overruns margins maybe the installation can our for to punctuation. you combination eroded to be try That quarter-to-quarter, or with as during bid, construction, example. small nature the reliable,

take margins am really that of So rather extra something I those segments that of I changes because that because on that service the embracing they’re a a change took ADG XX sometimes from time Bob… that installation, have an have margins well, these cut of. would to little with margins, I years from maybe driving knowing tolerate installation that’s installation margin we but think bit the revenue we’ll quarter-to-quarter. generally Suffice as generally, in The solid that and my the perspective, say margins lower what is

Robert Panora

merger ADG a that Yes, XX% don’t the happened separate a about service and this company know that, company. in our thereabout, is contracts I is what say to fraction if a separate point I should make of longer was it no were

the basically. department the into the you combine very the and margins one And lose and you good. company, there ADG absolutely elimination financials of terms same the of their just the in of when service So cost step revenue

the me what ADG the was that accounting. too happened speakers] it looking that’s that’s because So at why [multiple confused of when I here, had change in was

Amit Dayal

from one just one last And me.

continue make getting is the regulation to front, meet I guess fashion looking progress, starts where terms regulators of commercial How are forward good it of overall in deployment the industry technical these more terms or for of is point of with are start more -- growth what move view lot et meaningfully. this it in all emissions does a seems larger this we that or more cetera. a the from requirements timeline teams the the company? customer of does in it level hesitancy and just contributing to to How bottlenecks On

Robert Panora

the think very sure long It strategy to lot have is get is process you a being help the that truck for have fork to -- into a get is to I the up near food that'll little rather larger you in and term one bit industry comparatively to see conservative. chain I these industries But perhaps us are acceptance. move

there. that So complicated organizations through to and the about part our go moves and aren't up the supersensitive is huge into of go strategy markets, cost smaller ones to

make long into fairly attention get a be it’s to get big penetration it's to trivial to their their to But companies, there. unchanged. process these ultimately I going it’s not think So we’ll buying, serious but get or

Operator

Thank you.

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

Roger Liddell

customers. trajectory to further little on adoption the like and of the probe I’d among a utilities large-scale

perhaps touched from a there announcements I that You of on equipment Ed, a be ago constraints -- contracts, terms the a Could Massachusetts, had understand? think recall year help you Ed earlier, characterize been in and a to and these or one the recognize pipeline to Jersey will get period thought as can long to a recollection it yours, should I in it my of Boston, place. call New me time not welcoming, lately acceptance would Jersey example was there be acceptance get a New of taking regarding five have offering knowledge. my demonstrable and a But wins, you frenzy taken it very is supportive have with into year can we Con willing partnering, only sale are would my that is handful a acceptance I wish. yet you place in Tecogen you there'd But efficient that. trying should of about it contract to it's How nowadays there like here. first Con think yet more a incentives so

Ben Locke

they micro much We're time, New the good And also think York, is tend program levels New as there. KVAR think just incentive a to is just to to New resiliency the value That’s certainly, demand get Roger quite the response are about a starting -- Jersey charges slowly ROIs also we these ability get be that's the And creep the aren't of though or of more when your to but SmartStart get getting to up, is, less York there. that other longer, grade Manhattan little utility recognized Jersey to and ROI therefore, day-in again where potentially to all week-to-week. rates talking see be do piece not power it's stacking up. I've component more electric lead look these starting the the And last in to and sure. modest we're hoping notwithstanding. I'm seeing those I'll or in bit Jersey little support activity that really creep that more electricity piece this indeed will things. very some you're on rates expensive there understood, been in and of not of thing demand rates at Electric us as is slowly and New Jersey. said now now. the Jersey. With in up a we’re delivering New participate the New and again some say is And of then and I New analysis, that punitive seeing start in but we the I demand model, day-out, an the seeing of you in are the more bills rates Electric some economic

much unusual Roger. spot spot DG is Boston that solar a a storage bit very everything, Now it's CHP as downtown and very restrictive to put battery and different is the network. a just a story, in how little and can in is called restrictive network generation Boston Boston in not what's and but a of whole, they’re the network electrical they distributed

about and buildings as we've solar something the just fought with talked pull have of Hopefully one-fifteenth it’s so rates that in import Massachusetts like DG actual something need electric And folks that generation regulators putting fight we all that of outs, to am far. that's think are to will distributed I to concerns regulations putting is DG again minimum something the good that's the or compelling about the more in because the and Boston. their no start benefit hoping in the lights get additional all outweigh power the and on these the can into avail Boston, down people these well tricky. I slowly keep utility very And spot that, the Boston network. snowstorms, thus has

Roger Liddell

past of newspapers is vulnerability publicity week huge cyber that's the the something front pages think the threat. a at I in -- look two, And or

your this equipment’s just isn��t much from more development the California exceed strictures means technology. Am The second BACT on be I a air an meet clean would act this or might that question with capability a a is comply then to available have press the apparent release? of to but new the something not control air really expert I'm correctly, act. the best significant getting competitor applicant, clean than

Robert Panora

case. Yes, you’re in California the it If maybe for you’re certainly, the put the but that BACT correctly, caveat. that’s I’ll district example, district in Southern for that if getting the

officer And ability to the make clearinghouse look permitting it what a of to -- latest I’m another could Massachusetts, go somebody gas it that to be mean new should to that I have class In and that district just within could would a this in at fact be say is California in sure of Massachusetts. to do that’s Now, They up engine. very going in in well standard I’m California the in doesn't it technology well, permitting California would clearinghouse natural that. if case, the available just officer and apply either, want permitted, their this district new that get for and engine, a in equipment. permit popped in another

said in my presentation So as will it aware advantage wider we're more to been things said become Tecogen districts nothing and become of as places changes so. it competitive as very I think the expectation as overnight hopeful it but areas is that our migrate but that of I we do will become will I it and at has a other country and

Operator

Thank you.

Sim] [George Our with your with Capital. next question comes Please Trilogy from proceed question.

Unidentified Analyst

what’s really I I that. forward? I the more SG&A on But a do to what today. going sections, was been highlighted key wish the do. you in complement the the SG&A bump one and would presentation Really target expecting decline just seeing having your here, for to companies is at, having the good on have many very about want so question positive things knew ’XX. appreciate we financial I'm it I things with It and your your look of year outstanding exception

Ben Locke

targets. think George, we’re I any giving don’t

But grow going we’re and our and great say forward, are is on stay to despite to assured my part, of thinking, as that of on making part. important we SG&A, get spending cost my result adding control. I an the arrangements. to controls making business out Suffice particularly out the comments, Going sure in continue of focused doesn’t rest S absolutely this said in we’re those trying type to laser

SG&A So are the I’m not guidance we going growing be the controls. but try maintain to going say is our to give to to our but going suffice cost forward, any what team

Unidentified Analyst

if unfavorable little I'm I to on put when understand it wonder it’s could I’m bit sure perspective comment here that too, into of not a I contract and liability, That gives the me you big can I a model. going number completely?

Bonnie Brown

in any company, produce site. the the to that of contrasts result the the so company. go So Energy, margin DG need to contracts order certain a to of bunch with that along of American exciting that them purchaser be of for acquisition required in And those inquiring we a

buy to the were a number life in it’s balance we the our by margin sheet XX% works It’s Tecogen’s that liability is and which now that direction. are, contract they all the the -- opposite similar is XX% company. over it was The what but buying margin, amortized the as goal, may in depreciation we because produce unfavorable on non-cash. contract, produce them they putting goal of So allows

or will that of the So or the better. XX% -- should produce asset produce margin

Unidentified Analyst

of years, XX, But right? these some XX contracts up go

Bonnie Brown

Right.

Unidentified Analyst

So this long time? is for a going to be carried

Bonnie Brown

will amortized contract, the each contract-by-contract. life of it Right, be out over

Unidentified Analyst

is $XXX,XXX? if total about I of the am correctly, amount debt And long-term understanding

Bonnie Brown

That’s short-term. right, it’s

Operator

you. Thank

your Co. with with comes Oppenheimer question proceed from next Please Michael Our question. Zuk and

Michael Zuk

farming. I vegetable we short term interested in indoor arena long high for am now one not the indoor there’s term. product farming, sure and profile lots long-term want or Canada. operation marketing opportunities. I across growing farming test of say to our turn of Right But North cucumber effort attention has to that may in should And the may a course Could also of the be am that America? beta expanding I into

Ben Locke

within hope. Particularly such of with our where spoil just the some crop high that’s value outage having thing, crops it’s much Mike bear. something, Yes, the too because or utility threat or of

that of go because CHP, CHP, go these traditional chillers all why to tend So generate the giant these be separates and to indoor to to electric to them I as thoughtful mentioned, to electric consumed only thinking approach that a have particular more was growers, a chiller. location the electrons the they lot a being with by precious cucumber CHP,

engineering and engineers, not mechanical But while So these takes time spending explaining with think chillers. I into care more-and-more. ourselves just of start our starting little driven just consultants gas efforts see with how directly the we’re project component team electric of why again to advisors through understand. understand And works, expect of for it to CHP and engine that the take to notion a it chilling natural and

scalable want something whether can this grown farm think they you’re CHP, see across frozen is as this locally in truck. and it’d as travelled country more the take people get -- or I the going table where to a Mike, of fundamental to be these initiative quickly produce really it that not hold, absolutely, tries I a that’s lot particularly, think crops So chillers

John Hatsopoulos

an is great Ben, comment from news. they just Mike, is opened. This which surprising

I plant, they’ve and food Nassau, commercial in just cucumbers the Bahamian in that are the Bahamas. product Bahamas, made Here selling that they cucumber X is level throughout house. amazed Anyway, that my miles opened of up, first just from and Island not Caribbean of know first the the that which whatever. This conditioned is about they’re it I that and papayas air only kind opened was it's just mangos

Michael Zuk

What's subsidiaries. ILIOS, on a of with my follow if one on anything? question up going favorite Ben,

Ben Locke

I we're Ultimately, a of all sales find our team where particularly make with I focus on I and resources the ILIOS put marketing our on our activity, our but chillers, all vein on, So still want things resources, of of product. when decisions that. not resources I grow I our focused but

cases an in CHP I'll a some just standpoint. some favor try where they the make much to the chillers, being the but a that have sales from or to in I'd specify ILIOS’ So sales It while most in lies sense system. product still it we take just ROI ILIOS a has as as of the a ends And up becomes chiller play that portfolio. one behind absolutely our time love

much more products better just fit being still it's in that So seeing our you'll of markets. ILIOS, core these so Mike, other

Michael Zuk

then that operational follow-up, been we I three for I Maine. mistaken. we use final or prison it's And if not four have I years, facility. a as and think believe in I'm And that one in is and beta to know have it's a to we perfect move that facility that efficiency politicians? an into because a seems test factor me important that to example cost market, arena product it Can

Robert Panora

And speed I've but a at well site and I'm as Ben as guest actually, other as we're event sports as much first but a the think That's anyway. been not to I that doing up be now. on, prison, in we've prisons -- will actually, not actually elsewhere prisons. done

Ben Locke

County so MDC fit of talked prison efficiency prisons but with in best bit you little high a electric any but are to we're they the are end a market as not perfectly is up that one The the the electric and off in the Arizona, in the think CHP. located occurs when us. day the good In pleasant a But one beds, at somewhere sent in in But The Brooklyn. importantly, to the throughout downside great them you're we doesn't can rates. you that very the want you for the They're for the that it. it's they do a commensurate being other and rates, Brooklyn, us, in times are. are where Mike, often indeed for prisons can market with don't look have I facility I've so to have MDC they're good much Brooklyn general, exception. utility maybe that of and of measures processes the very Massachusetts, hot Yes, way and it they a is high of out typically there's something in course they Pima constantly pursuing in Mike, one control general, with correct, areas here that all doing if bidding distance in is has know water this can better and prisons you schedule prisons thing, use bill water facilities fit more use hot absolutely day, you those

Michael Zuk

the and to forward looking fruition. Hatsopoulos, I'm congratulations a to congratulations. to again, over successful John XXXX efforts bring Well specifically on your years all to the of company

think I forward. opportunity going we have a wonderful

Operator

Thank you.

with Our question. your Management. proceed question line from will of come Harbor Please Alex Clear with Asset Blanton the final

Alex Blanton

on would I like to focus gross margin.

the XX% and if quickly you XXXX. up haven't it now profit million You that have the that, million gross is XX% $X.XXX just fact And incremental your you’re XX% margin mix that. But because of backlog be the have depend to target that a Could target for your discussed to $X.XXX product I that at and like I the over and gross service know that gross the that gross that. on In changed margin refer went XX%. on you’ve said look went will words, million sales is you profit on target you product was $XX side, and other up margin side. the the on it

product me you for have discuss disruptive much to dollars sure possibility will not to that Could so of should the margin So continue, power XXXX. of mix. those that on I'm range. would due fell the you of XX% the in It profit that target is likely seem considerably that have and high pricing product. sales ones how that to that the the line gross technology gross would rise therefore margin based the incremental you superior fact out profit

Ben Locke

Yes, to ignore not bit you competitive think. competitors it I But there. is a of a going landscape, Alex. there am that is out

I in cetera. first the project we’ll business the other and get them all aside, technologies as creep are cost quite need we we money. to aggressive and more to what I quarter-to-quarter. losing that’s face give that there general, that sometimes in to we bring and to there. algorithm technology able on cases we situations tend margin a be those sometimes Ultera superiority ultimately, projects indeed good we them In why and grid described, customers expense all where are day as that's as some margin our et guidance I'm to that to range aware delicate in balance and range, cost. were be fact, because projects They emissions And micro we’re I technology oriented can be look and cetera, And But the to and aggressive the others. of in. the think at of XX% need at not of can XX%, situations, first et good obviously put the explain that’s and first and like not need get But just In what

Alex Blanton

side, incremental Could profit you from the on all on focus products your XX%. the margin I product say, just side? the margins to As went XX%

rises, product and that in volume possibility some to operation, continue the in the should fixed increase therefore the what I’m manufacturing have rise cost that’s there. there is leverage they what’s the so margin and saying. the In on as operation you They’re So side?

Ben Locke

very Indeed, out go door. I we’re they and very the that. We’ve InVerde absolutely you’re good lean, process got we’re it’s go where they saying, the And doing producing to point Alex, a hear e+s. fast, the nice it. line, what understand it’s margin these down

look around paying well possibly. produce very we and buildings and things elsewhere I high paid quite margin, little the a around make Massachusetts. me Could people all bit these Waltham, in here rents. there’re We’re

business to you’re leverage we what So early I what we just we as our for versus on have that manufacturing Waltham margins, of path understand lot get up. get Alex. of ability we’ll that are for and how quite it’s it, at have concretely think And margins on exactly our potential do looking here our in manufacturing right It’s put expanding something possibly, asking someplace any do to too you a to more we’re else. of ability, say can better that leverage we except to prediction the that manufacturing

Operator

Thank you.

comes Our proceed Vidich Manalapan with with next question Please from Capital. question. Joe your Oracle

Joe Vidich

I that assumption first a backlog few is have XX the the million. your -- next assumption? to able you My being actually, a so within should $XX.X questions Is that correct deliver be is months. that

Ben Locke

going to time takes of rep, the tell building quite you a it and installed it just extreme, customer gets and the time that just months, quickly. then a we we’re the it installation They projects so and all have on because time why. we’re turnkey other to could could horizon unit be few it supplying we’ve lined manufacturers’ selling could with Not in labor installation deliver have And of the longer full The I’ll a up Joe, things and backlog horizons. a of that consists maybe much number of product a any the and where on other go. got

and that part a And So there’s there. of in you great give not that timeframe. backlog to the a that’s a could new is of they of the CHP point on longer new our is have that behind timetable I be blueprints schedule had of and exact but the building. that construction. and put the own then going again backlog later construction part new CHP to -- stretch third it And out it’s portion too, and that’s in it’s Therefore, construction But this precision its this, to can’t we’re construction for in accept units some we’re but future. every ready milestone backlog. plan part other in the project to three backlog, and Maybe there’s

all with those that there that you’re because reasons So our the but right, of an probably longer amount majority time mentioned. of of year’s hedging, a extend just does can within it backlog is I achieved frame, of get

Joe Vidich

places detail in I'm controls Ultera. wondering what is into company's when is I you there and I maybe markets just are? And markets? for are my little China. terms like to on incentives the of have I question focus the with biggest when other in It’s those in a certification you -- being Ultera, more India incentives the that wrong emissions achieve looking about talked for The regard wondering California was was do assumption you get And those then and emissions. what

Robert Panora

is you incentives forth. the the question so about So and that asked first

was for trucks California, specifically So available. might was in talking what about fork that be incentives I

was to Now that trucks one. buy the essentially is the what I very electric when very, said rebate they operated, get a zero goes fork healthy customer

they rebate probably a very a incentivize garbage like technology they'll truck, near dollars healthy. know will big a qualify air if that if not know the And they be thousands also zero. would like it's a normal near that healthy district, but of or for truck little have for get. office you state they it a I I truck also can't that, incentive, and So that zero say zero, I something sure, tens have but don’t it's of it's part what regulation not the of And has

far we work the as will have regulators which qualify near category with rebate the So should there’s you truck, would company, be pushing them a little can't to bit much opportunities on, particularly to what zero what's in if we're of the should a they know but well, as already been is attain what and near that what believe should those of zero possible to by think say will the I India, set we But I I have other we with able is for then work limit as going unaware and in something technologies. work elsewhere, there. oblivious done bit California. we have follow as path not little fork else, by and pursue been we not that's we If about available. we And logic, a level and become and looking a you we gas

Joe Vidich

are three next milestones what few Ultera. or you two terms And looking what in the categorize would How two, milestones for just the next of you're for?

Robert Panora

really to groups would to for is want want showcases this get hope our to that like again so the near -- based have And truck like is gas propane we we've we for down gone deal. could thing And path forward I would natural would begin coordinated And forth. don't wouldn't with we they have fork we And to What of cogen. would there. that manufacturer. marketing chillers, our they demonstrations, consummate something it, why with out this fairly they their that be presume, what we Again, that's how want know engage move the with generally industry discuss to they industry, has with they to see. we term what and the this that and what if be on do I

I modified that past my is but if sort near demonstrations think is get that type fairly I and full production from fairly field tests fleets thing. So stuff, But or of experience. with that's not term, hope that maybe

and components And year-and-a-half with ducks the then within our is a we focused Now the speak to done well can we’re card there to people, we is feature, about And thing working we've a very the the get a know it’s we've they're anyway. that the that. that's that we that's and have fits go once very in and so want play or with what automakers familiar for a automotive and And not have be we We that that all near-term to cost made do. row on to space something it low afraid with reliability that to of show our into other plan forth. that to prototype goal sector. had need we it's our and are like need

Operator

you. Thank

We have for call call. like run the out I would turn management remarks. today's for any to of over to back closing time

Ben Locke

for it thank you nice And our again a day and once as pleased good off. like quite we with happens. share expect conference sign results more in Have everyone. Well, with news We're to all that participating our we'd to call.

Operator

This you. Thank concludes teleconference. today’s

Bonnie Brown	Chief Accounting Officer
John Hatsopoulos	Co-Chief Executive Officer
Ben Locke	Co-Chief Executive Officer
Robert Panora	President and Chief Operating Officer
Jeb Armstrong	Director of Capital Markets
James Jang	Maxim Group
Amit Dayal	Rodman and Renshaw
Roger Liddell	Clear Harbor Asset Management
Michael Zuk	Oppenheimer and Co
Alex Blanton	Clear Harbor Asset Management
Joe Vidich	Manalapan Oracle Capital

Tecogen (TGEN) 21 Mar 182017 Q4 Earnings call transcript