TGEN - Earnings call transcript Q3 2020

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Operator

Greetings, and welcome to the Tecogen Third Quarter Earnings Conference Call [Operator Instructions].

As a reminder, this conference is being recorded.

Joining us on our call today is Benjamin Locke, CEO; Robert Panora, President and COO; and Jack Whiting, General Counsel and Secretary. It is now my pleasure to introduce your host, Jack Whiting. Thank you, sir.

begin. may You

Jack Whiting

the on plans Act tecogen.com safe and result factors, those Whiting, in quarter as regarding safe earnings note, Jack discussed be and Litigation is of of website direct company's Secretary Private on file on of XXXX. under XX, with Form until of earnings This well. Factors. A indicated as website like XXXX. in on statements filings. under and in XXXX important recent prospects, differ call General Reform are the the is our remarks most caption all Securities Please copy available at our the of to this Investors on SEC section press presentation. included future will two by third that constitute provision about Which being heading Form annual and I Tecogen. forward-looking attention section materially of a results under your XX-K harbor weeks the the press various release November release the is the our XX-Q section we Counsel for our to our purposes recorder archived the the available in the reports the harbor statement may website Risk expectations, would on Various Investors company's Actual forward-looking from those these statements quarterly and Investors including SEC for make report and

so. as date as disclaim any in forward-looking any some representing not rely statements specifically on the subsequent we elect our Therefore, may While should to point update at today. any views you we obligation to of to do forward-looking future, statements

third measures in directly meet reconciliation GAAP. to call our we site. financial prepared and this with to these the release is accounting accepted the the or in our of refer to measures Locke. in the provided quarter comparable not Investors over XXXX section accordance most A Benjamin generally principles press certain financial non-GAAP regarding turn GAAP Web now of During call, will earnings measures I'll

Benjamin Locke

Jack. you, Thank

As the commentary a overall I'll by the and indicates, quarter on the results, followed results of a I'll agenda of some review into fourth the X segments. start performance brief company the third by review our followed overview, each on Slide then main revenue of going expectations have quarter. of with

some provide Origin emissions color then with We an program, including licensing on arrangement Ultera Engines. technology will our update more recently announced on our

take questions afterwards. We course, will, of

I into short like on significant business, provide more the in Slide grid and shown selling of and systems Tecogen's to I'd emissions, reduce and outages. energy efficient Tecogen maintaining greenhouse clean numbers Before gas business that go in savings provide detail, to overview is a resiliency X. the operational as provide of

are We and our to due a technology longevity leader experience. extensive generation in distributed technical

equivalently cooling Our conditioning air have other and highest efficiency system. any sized of the products

most such air Our those in possible, ensures emissions proprietary even the California. emissions cleanest stringent Ultera quality meaning Southern standards, of the technology

to facility grid designed microgrids terms that systems in of to seamlessly, operate to off-grid grid ranked power providing of is microgrids, indefinitely can transition XXXX. product cogeneration from operational as hundreds these a X recently restored. number InVerde is flagship Our independent deployed has power of number in being grid-tied Tecogen until operation operation, of

the our rest and country looks well future. of a world the are positioned low-carbon as We towards

Ultera is best engine Tuesday, partnering sources. Engines fit and efficiencies operational significant the when markets. release as emissions given a on high I lastly, across to And compared in was a in NOx submissions reducing the our as savings And solution Our for recognized carbon technology CO significant wide enable press traditional industrial recognition and their sizes. and platforms engine of Origin presence perfect with range indicated

Turning Slide X. to

The XXXX, in to XX% year-over-year. third quarter delayed. XX.X% $X.XX compared in million some as This revenues decrease the $X.X product of revenues were third of a quarter due an drop to XXXX orders of decline million saw is primarily

seeing delays were and the continues down I'll New as product pick COVID York. hope our are revenues primarily more to Service sales a in up due COVID installation activity that sales from in trend in minutes. We few about talk months. the delays, X% coming activities were limited

hit segment coming high quarter, up months. see $X.X record which service However, we million will COVID-related of service for as year-over-year. we of we the contract on still X% This resume did component the a some O&M have especially delays, hope impressive service the new the is in

expect service ship we in quarter detail bit each will service to factory unit as our almost show this continue revenues comes every service contract a our more later I We growth the a about contract. financials presentation. with sequentially

of was most Production facility the Next, quarter segment pandemic impacted by closures, XXXX. the our from Energy third continued down XX% COVID and

XXXX. energy in revenues. see many sites are rebound extended red. of our we gross athletic margin COVID by improvements improved hotels product With of This both As was slower such we and which expect regard a energy I've pleased our to margin gross call, are margins, with XX% in continue in third XX% production here last will to the markets I our to our a of I margins, in closures, and largely mentioned as highlighted in quarter as clubs. production to compared service of driven

operating our expenses. to Turning

for loss of for and to a of net have and resulted $XXX,XXX quarter-over-quarter, improve EBITDA of result in loss under of business Our million. just XX% is quarter adjusted EBITDA the processes detail quarter, in the at third reduction to Slide a an compared X. in XXXX $XXX,XXX to a third end an the compared coming the quarter as of negative costs shown of third in XXXX. The $X negative as efforts adjusted control was net EBITDA $XXX,XXX adjusted in of The $XX,XXX on more quarter

we In up and and our path as by the by quarter attainable. reduced where more quarter-over-quarter profitability half a EBITDA revenues is COVID. goal, adjusted Xx our revenues our in our impacted negative most of the towards much the profitability. while back loss margin of expect, we were almost product the make So expenses to almost reach gross pick combination by reduced improved product course, When period,

Moving X. I'd color to to revenues quarterly in like Slide provide more segment. each on our

mentioned, project First, as third mainly the due we drop of delays. I to saw XX% XXXX, from revenues product COVID-related quarter

by Over construction already not of the past activity, resume design activity which have lack us somewhat early orders seen but equipment course, orders few The impact and initial and is the received days the the we in of the we engineering in hand, third pandemic widespread closures COVID of for have community specifications, orders. the followed, typically normal impacted would project quarter. did product for months,

for of drop out the also sales With in design drop chiller the and that is chiller cycle quarter order to any previous equipment resuming, specification in point we project of not year the expect from I will resume. the demand. flows trending

time facility. gas same would using of we in and other fit, be sales refrigerated we storage this products cold food activity target food the such compression the fact, sale, benefits cost not chiller now mentioned, The our another greenhouse to of chiller expect sales. pent-up be a In discussed just had products. CHP facility as operational I offering a Tecofrost are markets much as is processing sales press savings, to other for traditional a systems, And resiliency or our the processing, new where Tecofrost, release

result COVID. Next, due curtailed quarter-over-quarter you of installation can as activity our to see which service a detail revenues, of the dropped X%

of facilities. million However, despite I contracts I as part from million mentioned in of an revenues in XXXX. our sustainable and this to last would XXXX five COVID for continued particularly overall megawatts just of some highlighting X as to hope business. as on clubs in Toronto, XX% such as years because health COVID trend mentioned, we CHP this closures. in production lastly, X% installed service that reached segment hotels, gross have will prolonged contract by our And previously, in point like $X.X our that My million to improvements segment to high service as grown I an in year $X.X at energy the closures we over out our be average of recreational exist will XXXX. early make they to anticipate slower sites rebound margin and came continue, is capacity have And the again all-time per slide, continue $XX.X our startup

the Turning to takeaways Slide the X. reiterate like for some to quarter. I'd of key

hardest the of OpEx enormous reductions and sites new quarter. COVID. our installation are sales I But order our by performed core Product the mentioned, of pandemic. of service down as product sales the despite as resumption past COVID delays. only were interrupted flow COVID a project challenges was the business in of in well First, component. resume, have were in months, the specification design order revenues a result reduction and we cycle X% which equipment flow. few will The down we And our grow bit by longer to is seen key XX% hit seeing disruptions by continue and when despite units reduced installation Service as service our XX% have were add business to as more some energy growth a production facilities quarter-over-quarter to in for to takeaway contract service next sustainable our our some lastly, revenues, last offset to The that we which continued in fleet. of improvements compared will the

product of a many But margins, the are backlog business planned. representative flows also activity reach currently We it's consisting which things when our to This improved million. as driving primarily our our order us product about combined I'd stands like our up which orders little backlog, and the profitability installation just out processes, excellent of point streamlined me in a earnest. we $XX put leads trends seeing functions with over of some projects. improved few to with future in still position to have accounting pick

candidates not see will typically you largest remains surprising buildings for which as as First, are segment, the best those is residential the that cogeneration. multiunit

Next and are is chiller systems. fits health which typical also care, cogeneration excellent hospitals our since assisted-living facilities and for also is

almost operational backlog chillers growing our savings. cost will see their you of which large part exclusively of Next, because compelling indoor as a our is

the early last to office while several designed our of each as of recent microgrid case, to and including New despite built oftentimes are the forward building states, more also. savings. next With I within very continues facilities projects payback important the in move year. contain this center Arizona, maintenance this And hope In of not when each consists does revenues, of trend smaller, is which new installation solution approval consistent products growth our Toronto longer benefits said, the our continue long-term resiliency And marijuana and lastly, use from quarter. and is, revenues considering observation trend allow slightly segment. recurring state. I've contribution revenue recreational a the contributor previously contract we anticipate Jersey as this is this backlog and Again, our expected service

of give Moving to to the overview We'd technology. XX. emissions you Slide our Ultera with activity like an

range emissions and foremost, engines all Origin status you potential of on technology applications, First industrial origin that are arrangement reliable press a more detail a Ultera in arrangement or systems as the reduction. emissions addition but licensing MCFA is with while our eventually industrial confident a will use water Bob use describe revenue truck wide earlier the still the Ultera to providing the any of Ultera pumps. for announced the forklifts, well recognized of other our Origin and/or engine contributions this to week, applications. a improve as emissions technology their saw them we as offering in result for Ultera generators to Engines of and will I in automotive and other further wanted licensing allow reiterate company, further partner the we in such emissions market range this their to agreement options will as initiatives, leader for and Ultera commercialization that in with release maintaining by the

upside like about Engines well Origin to since arrangement We we update to little we of to we excited I'd an by an Bob? financial detail our it these as see that, are are longer-term a technology skipped which obviously being prudent more With with resourcing ask last business begin Ultera investment. to but technology provide origin, Bob have overall can as call. emissions activities, about the

Robert Panora

Ben. morning, Good thank you, and

is natural is a supplier OEM a XX.X important increased milestone. any of is licensing propane that from single a multiple markets. pursuing and to familiar OEM and commercial in of a notably markets mentioned, variety gas Ultera, liters. which is limited our They're because be would First, about first we to customer see also off-road offers share company Origin sizes stationary aggressively mobile potential industrial U.S. Moreover, the markets markets and X.X water engines for, This Ben origin agreement pumps, is forklifts. an particular as one. Origin. not of in but growing generators engine These significant in

For forklift manufacturers various the Origin agreement all example, in sell that there are and their all covers. them many size could to ranges

Moving on bullet. to next the

district has components. is California two the will Our water It QX. the XXX-horsepower in be for kits order fabricating been of and received delivered Ultera process in

Their recall, some next US as As composite highly we great that recall, a again, ago, -- some had promise. completed research the been months shows catalyst program may a catalyst institute. formulations bullet investigating some with based identified effective

in potentially component give a the element full kit. pursuing company scale also We patent catalyst a would disclosure. Ultera Tecogen, a are further form proprietary This the in and the development of

Caterpillar we've that, back with I'll until on Lastly, Mitsubishi lifted. travel MCFA And hold to with go the or are COVID remained Ben. restrictions

Benjamin Locke

Bob. Thanks,

So over I'd us that, reduced turn OpEx our forth. over service before think quarter. helped us the making margins the the fully milestones to Despite operator will excellent profitability. the loss the position expect we're product And our important order for call in to our product briefly excited reach the and like lastly, resume growth, reduce to and sets both and what turn revenues, flow like it Origin look We combination on of of that I takeaways the for quarter. revenues for continue improved questions, to questions. agreement our I are to lower most which reiterate forward about accomplishments Engines to to the that, With very I'd put for

Operator

[Operator Instructions].

with Wainwright. Joshi Our first Sameer question from H.C. comes

Sameer Joshi

Origin. So first this meaningful we you describe seeing in some the should Can when next relationship? on start question steps revenues? And

Robert Panora

Yes.

the I I'm fairly to, device, expected in then time having or don't say can as but I it precisely, they're have adhere is they recall with, develop by that be we the that's now. about talk want have to in the you actually we far which and start down I that. lines which sales and after the be to for not is, results the timeline certification aggressive, months prototype want to engine it's will to Sameer, their particular right they have say, not do, So about specific to feel the future. things agreement, to to going the followed the But too I should all commercial

Benjamin Locke

we add just and I'll we very that make when and Sameer, milestones terms Yes. that, we crafted careful everything. outlined agreement, were the sure to

that's considered, great So Origin been a all and customer. -- is we're

think version their engines the and the in X, version we've since the partner. well-respected introduced engine very e+ using been mentioned buying been years industrial few And good ago, InVerde our press connected a InVerde we InVerde release, we I As a community. engines real importantly, within -- and most two, the we've

Sameer Joshi

the And what the of California, Water in as District the size far in your is process? timeline Municipal Eastern as And the order?

Robert Panora

cost. provide don't want Yes. to the I

Robert Panora

want five I say the is, group basically was, delivering I timeline But can into provide we're the don't of whole to months order in. components the months about cost. were two the we about and Yes.

So January-ish frame. is February I'm the thinking or time

Sameer Joshi

will start So that is York the, backlog, seeing you see related or in Or to that anything that XX? in is you products this backlog, New XXXX Law there the something that is on XXXX? the

Benjamin Locke

is Local absolutely in driver, buildings, but to are Law Law is many, come on considerations. I are projects their many, any Local the Of what it. are of that one the backlog XX have can that's ones that not years their some of fact the in believe, which, they many drives XX, certainly there. We in penalties for York, residential that it New And is not

So benefits alone I the what's much see XX acknowledged how think is but continues. we'll savings the compelling, economics, being absolutely now, the Law that and operational are Local

to in York New kid. Now putting card report these you Every a have building they're a as that, share little, on the big a grade has a buildings. Sameer, like grades

their drive And that grade way so And improve grade. Is a in as some want gas it. going I the greenhouse have to CHP, their come higher on that's think to for to with people building. a reductions too, them behavior, certainly

Sameer Joshi

two Just me. from more

In stronger. you last on second know even the be terms said I expected the half call, of the quarter, fourth to had is

quarter not only the The third far was but flat expect that as you do great at goes, as year-over-year… least fourth relatively quarter slightly or

Benjamin Locke

revenues, in product about. that I'm I'm bad that that they was we with We're the obviously, our O&M right? product services certainly product to going is not We this delayed I had the get concerned got and too services back expect, too great. struggle Our did our revenue impressed It's confident track. as installation, did. more dip Sameer, biggest The Yes. in happy order And little again. very I'm flow growing. on business. things resume quarter,

you to is, then out tried just contractor and equipment call, finally equipment it selections what the your I then a and then they ultimately, specified. As the designed And and once a here people cycle you and goes do gets in where project equipment buys time to it describe equipment. they, that happens the get a contract specified, is then fight

impacted it's more are. beginning I'm it's pipe. predictable a a the initial down that's impact stopped, the side that product But there a two-month chiller where a sales orders results, that that the and it's certainly, of of these on things, was period were lot jobs nice It the had mean, COVID product didn't way. what very, the was not in in there of the slowdown. coming there year, kind than I hand. you orders sometimes that the all a the and prescribed So system go But reliable of flow. saying somewhat And because cogen

those we're Sameer, orders coming quarter where back the just product lost It's is pipe. we're time. we I seeing the And think now, down and penalty biggest seeing for ourselves We're that third getting specified so that. the And everything. some paying

Sameer Joshi

And calls holding last that call. The proceed? essential just, the this or as discussed last MCFA reasons for in the was previous What this is think absolutely travel the a question well on at least to are pattern. I or is is standstill

Robert Panora

you up an we've you testing we now drive, a been The forth. fork road you that you to pick up where defined up will, if test, so in truck, something, has done actual something and pick

not gets that way certified. So the an engine is

What dynamometer. next was pursue very The certified be complicated numbers engine certification the imposed certification. the the would And certain best it that to through forth, an cycle drive believe a we remember getting a and attached back RPM type it's engine. the to need on decelerating, going we of like bare on is aggressive but of the have a step time, the chance that's they of pedal would almost to where emission with how right it accelerating, which they're engine is test -- You needed way a runs sure it's system it's be load the it's routine. to to but a adjustments make a have the is That's to in success, cycle would for a done. the case a there tuner holding site engine make is the on and

we for firmware his programming have that the here to And software be equipment. okay, engine from said, company, retuning we test from Japanese with have that style, the and so fella Japan, originally,

of way. run to they folks to or adamant So And or I've maybe brainstormed a the it They want around there. bit on get But the run that I by and little that the own, MCFA store. talked approach be like that's Japanese this little course, are their bit think the doing this program. they a we they, pretty hang up.

what's Maybe we're So that will happened with given at Origin, that's know. where change, I don't now.

Sameer Joshi

is it there. that the they So make sure people Japanese want to are

Okay. Understood. my questions. Those Thanks. are

Robert Panora

Yes. Thanks.

Operator

Thank you.

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

Joe Vidich

if was time you're excluding I'm a quite caught I just give wondering, markets just Origin sure -- deal? could this on you me what not through that? Or getting from Congratulations I little tough detail more the period. --

Benjamin Locke

it's provide to of tell notionally can part And We course. we we you be in But of to deal. successful, of it didn't deal. to Origin the precisely the course, enable wanted I do what because, wanted

isn't in size in And areas to mean we'll, And Origin We aren't made engine so and us, we've cetera. we where automotive. et freedom that, the are the automotive, go-ahead have Engines Engines I would he to of market to operate that successful. like, ranges them relevant didn't in right? specified be sure involved course, include and areas, for but relevant example, that Origin help

of Origin on. we optionality And areas that ranges make carved size course, to that they a we these enabled familiar are our But with, to the have ran markets we've with in that. the that have out we've, we've engines want for few to protection mostly, other So and freedom sure in just they that work operate. in

Joe Vidich

to able the what is? company look be about couldn't I you tell approximate would just terms find was of me really I up, couldn't much think size them. the big in and How out it revenues? is trying Origin to

Robert Panora

know, don't private don't guess, a don't Joe. a information? want that actually to and hazard company, I they're have I I

Benjamin Locke

we, for they good, with these strong. bit I reputation that you and call, a industrial again, said a which And is to will they're about shrewd to, the that really market going niche being it's are, going engines the in, customers help reaching business. be in tell company that I that very as them, customers to grow little a that some are and out think think, successful be I to of we know are they're the them I really going

needs an them thing. also supporting and licensing help technology, if but ultra That's the CO one NOx engage ultra, way. system, to going what we're Ultera the that's low we're need Origin, talk customers and maybe So just not and about customer customers the one

But we're Origin differently. successful to help want this. going on do you to be importantly, If emissions

Joe Vidich

world the call, software of company generating your Generac basically any mean, regard tying their And energy know thoughts out tying buildings they into your sort thought your one that on or of with companies announced in they recent resource the is business things is systems. their called a ties that bought distributed In I basically a company the seems Enbala, which out business, in of terms that's equipment overall all happening are in it there, together systems, and to not grid you've your of the sell equipment just that your I at that, look how electricity. and that you in the have whether about, CHP that was got I allowing customers to grid? guys wondering capability to bigger somehow you've actually into if

Benjamin Locke

There fit. is a absolutely

InVerde we're the and tricky Our certifications, with and and cogen is, the And speed stuff. applications. company, a perfect ultimately, product ultra-low The company. variable the that certs microgrid those all that grid generator the we're for and certification smart then part not the emissions a the is

search we've have need got that but heat we a for only that to power so not applications, make And use produce. sure for we to we

heat have many us. that And good load fit if could air But absorber a can where you're be then heat to for are the things, got be so and utilize the even in heat, absolutely, applications applications those you a load they've and heat load. these conditioners facilities able

to Now like a to our can stand-alone if that. system generator, do and you you're certainly do you're it, simply operate going not going

seeing do box. search where niches some well able standby the emissions is, our helps. to that all those fit we've the fact, are But set? are green of our as solar a we the you constraints, bought, generator Those microgrid, is projects mentioned that for inverter are our cards compete that a And typical how with is into had where, in a we're Generac And if of particular company, combination that well. economics so calling that I controllers, our incorporate again, In question couple that. think your as we're if good there

our all things of box. sure et controllers load following, these in in are contained are cetera, terms our All making of

have we're our So use applications of a a these opportunities But there making more there's the just, good that's a at. for of long not, some bit still saying, is is different for economics application because that a the out therefore, a way pencil challenging. little heat, it's yes, it. little for don't you're It's and equipment Joe, looking

Joe Vidich

into can like Right, your Enbala's system tie an but software?

Robert Panora

Yes, computer well leaders, world definitely. Definitely. in there, I into controls. think. placed We're We're integrating our very systems and think, microgrid for really I

Joe Vidich

other I that is would in just guess a kit regard mean, curious, aren't on proprietary of give or component in catalyst I question I'm your the Robert, to I with is… the kit. have proprietary, you comment was development, the components And -- any the what the the other

Robert Panora

Joe. understand I question, your

air So pump, so stages catalytic a where proprietary, a control valve, kit, you an Joe, They not them there a else. one really at we've at look high-temperature there's you and you see the pods, not are exchanger, process so that forth. then on anywhere have a system But that things can't and heat if Tecogen put you the on a so one you'll table, and the on get forth. there's Ultera being process, that patented at that are there's and two if that of devices manufacturers look is at conversion: being a low-temperature; so

however, opens found case, at that is stage catalyst research condition, this a group in we second that what operating -- very not found we're high-temperature the up this possible temperature. low what unusual world. current virtually or this in chemistry So And at that's that

which got catalyst and they operate too, right they've it's a cost control very we and could the of very these it, today. And actually what we'll they together particular is much that cold our than that was I current disclosure crafted -- status And patentable it that on course. at effectively it and can so own that the believe, we what own. lower so price catalyst patent. put who unlike will believe, we're our live pursue very rights, -- license the buys and couldn't is. I but absolutely everything catalyst mean temperatures somebody, a formation patent we a now doesn't that to mean, And And in a now, we've

situation So that's us. new that Joe? a clear, for Is

Operator

Zuk Michael from with Oppenheimer. comes question next Our Instructions] [Operator

Michael Zuk

us to to Now growing? with to that use going efforts develop that systems kind of of marijuana tell we're getting regard you're marketing use, a in indoor legislation greater undertake increased what our

Benjamin Locke

-- because are you to a say, have and ultimately -- and growth I the partners, of their act they're not are Yes, actually obviously their the something then imagine that time holders holders have -- all opportunity is these are close But permit ones are It's finance financing we with. get get they're those follow financing lot kind then potentially the the ones it's facilities we capacity. for where the to and issue of obviously well. to permit the of gas together the electric to. that spend permits. and anyways, important, paying stories can these then permits of And need that in to is there's We the permit of going rates the where and something. holders attention install try build that opportunity They the electric some availability relative to it, we very indoor going and absolutely therefore, geography know

been -- outstanding, New Jersey got Engineering. so and a speaking rep, a D&D as very And we've And manufacturers that's we've Mike, a much. with them reminder, in rep

these going deep we're how indoor to that having are built. Just sessions the sure week, get as other table we to thought the make greenhouses about

Michael Zuk

we Do Where Or the with we do we people? the engineering enter the with process? Do the the companies even enter gas or the the process we with do company? the financial process design process enter companies? enter

Benjamin Locke

they engineers bit Yes. not would But little would we may know inform of may involved each alternative, I typically, doing say, there, this of Mike. and them the specifications approach about. the or which A

doing because often simply facilities we've been than do many know think so with it, it. I about they more not,

gotten your he Mike, is savings, and so the facility there that regardless I come the our very Put maintain is And there equipment low clouds can to But this kind electric but in system. which And alternatively, could as sequentially the extremely selling of these really and be the do are he sophisticated to not the in them, buys. rooftop of so to progress inexpensive, anyways, and sales as get chiller show earnest. a all much started in you've is just how put we going then cost expensive really electric systems. goes the in in you all you months years have costs, wants studies in and not once understand the then go don't to more by. so of cost with Tecochill systems cost-efficient air-source hopefully who's project, many telling thing water-source good running operationally would put XX meeting case fail who smart We but please results. Don't operational upfront owner, person enough much a it kind savings up strange greenhouse, in about is in

on chilled go And water, they're see the step track, water chilled a then benefits air. of to to them for then next the once not the really So chilled it becomes Tecochill.

much water latent real loads, heat plants, understanding the see and a of all Mike, these of removed. electrics, dump buy builders be not there's got some cost first So these challenge, how you that's that the to just are just grow in that bunch cheap

got facilities of can seen in a dehumidification out needs. catastrophically. a And didn't lot You've lot, in that have some script. the here kind And had play follow of all it problems. Massachusetts we've very our And that of

as out the And We chillers cogen. go along being chilled get try course, go it, system well. so to Mike. you if water we a Tecochill. then like with way, Mike, facilities way that's cogeneration plus convince do them trying the where the the of We grand we're to the find And immediately slam, and That's built. to the are sell to

Michael Zuk

And it? potential what's forward discussed are we that had time, with Or one actually a utilities relationships of our Has the country? systems gas utility. continued developing relationship around At you then or Florida the a bringing with the little to to bit. attention move gas

Benjamin Locke

Yes, absolutely, Mike.

personally, a companies We are. trying to do them have the shared been of outreach to that show lot the gas benefit. And to I

able Who's noticed of to as up they're cooling, But and very cooling, as really much You cooling. operation well gas company with sales sees I we looking value gas natural wasn't cogeneration the at them. press Canada. a in but the agreement release, is in -- engine is in what sales signed marketing might have in our identify Mike, joint a highlights, one and

the marketing TECO sales we're So yes, signed objective. gas shared that and with gas in and the working here still this with down Canada. to There's with continuing companies got we're the other we the agreement others. Florida, around but with of joint in actually gas that informally, work We've up company a companies more kind

our offering these is of ways forward that guys. product So you're to absolutely with one we're that's the right that, get trying

can That's company for win our gas these literature. representatives us. So if be carrying a sales

Michael Zuk

the of figure? contracts of final a and one were end $XX In the, the that October, that any or guess, does I backlog contracts after series are that at question. include the then in releases million news backlog there early are that And September

Benjamin Locke

check. Mike, I to have would

the it answer in announcements I are seen the you've I'm XX% this backlog. sure is, in think way, answer seen are no don't any, announcements that the the put that on, you've the backlog. not I think

Operator

question Harbor next Alex Our Asset comes Clear Management. from with Blanton

Alex Blanton

first. two to items this call I weeks? wondered for housekeeping going only of couple archive A why you're

Benjamin Locke

except, know, is two And I too right? probably know long, I two honestly Mike, probably is days don't years short. too

And so think time. decided to pick we I a

Alex Blanton

don't would you it it anything year? why archive a it. Therefore, to wouldn't I think archive for you cost

Benjamin Locke

is right? transcript always available. the and will mean the I Well, transcript be available,

Alex Blanton

Well, I it. cost doesn't On the like listen it people site, to yes. Okay. wondered, to calls. don't? anything just you to you some do since Why

there website. Next they're slides posted find your don't I the question yet. think couldn't is, I on

you that useful… nice it's be but slide, it So would a had

Benjamin Locke

to I'm to and drag now the on but… Alex, & Events, News slides be exercise I the you, you not https\ir@tecogen can going earnings link if you through that release, tell there'll there. go to a

Alex Blanton

It can't that. find there. related but the couldn't says slides you get documents, I from

Benjamin Locke

call website you through I walk progression I can Alex, to offline, there. the give maybe you get We'll, clicks of can a the and you

Alex Blanton

Now are you $X up going of the time? to for a NASDAQ is period stock relist on once above

Benjamin Locke

go we've the not? as past, we decision I think are. clear We where possible on Maybe. done going do. on the reasons first had I wait or back the a business, here down, reach said thing is, I've are that. in I've I'm now any and eventuality not on said of going or we the core Alex, to right on we And right to buckle focus now to made Alex, goal my to the want until And that do NASDAQ I question profitability. then was get next

Alex Blanton

regarding Biden's X is I retrofit reduce the to question the is next and a with goal is carbon infrastructure President-elect this substantially, plan buildings, million line My in plan. Included to footprint his in that plans the these footprint. part to he's carbon that by role but year, in spending? exact reduce What that of is would forgot have XXXX, got think million And long-range X I retrofitting buildings. you

Robert Panora

doing because it equipment And a cogeneration about. not be building is engineer that. the and those would that stage really, project. a we is too that or change infrastructure They'll now of at contractor bad it's that's really light the things is way project upgrades. would is what just of things. when Infrastructure and Typically, X-pipe carbon we system. a windows improving they'll and are overall it's talking very we from do, -- things profile, that and a plan boilers, then you're putting out, many important part bulbs from of old these X-pipe substantial when a things They'll But old do that will uncommon change in big President-elect's inefficient it do in boilers change got upgrades part arrive to a the and these we're Alex, a is

we is cut opposed same us of around, being be cost doing want part all that pipes incremental to less. we just the hats And the that then a those to be wandering so hard stand-alone guys much being cogen in the and there are it's adding of because because want thing project with to when as cogen

answer to much have of the our of them. those some in work things. partners, and certainly, purviews And We're with things. communication boilers are we much building Alex, doing question, some larger we So your watching that with installing of that people the larger

start with equipment a ready them to So they chiller. projects see either propose forward, a or to as perhaps come cogen be we'll these work to

Alex Blanton

in Well, the with has company anybody touch your your partners transition from Biden been team? or

Benjamin Locke

that yet. No, not

But make where later, savings he guy with he's think before bigger of of the energy I me. kind start it's made little at said, once get going some that and that world I the do the in the And once I appointments. of appointments though, And our and opportunity once gets the would position made to the those to got are sure appointments that is policy. to are in to cells to impact appointments Alex, that them. that's get kind known developed, probably deal and are get into energy the some folks when areas what I problems exists after infrastructure the with there inauguration, after to is and and least would follow

time. So I'm little going to give them a

Alex Blanton

for my of since others reduce the Tecogen good that of goal is equipment footprint, is project your carbon footprint. seem That's this zero strikes the it a one carbon price anyway, there's it mystery opportunity for the And that's The That's me point. to that's opportunity me. would In of right? -- grid, to features there. virtually that the of and that electricity your the production a microgrid in is you to not puzzlement mentioned, to the side. a me. refers of in stock off some the that reflected But reason, But

Benjamin Locke

combination sources definition Well, in actually, is be microgrid working the off of grid. two to generating the the or more

So got if microgrid. solar if it, for example, site one But a you not thing five plugged into that's an a that's InVerde at had InVerde a or a site, microgrid. or InVerdes with on four you've a

be the that definitions to just talking we're clear about. So on

Alex Blanton

were what, among you among who? number ranked X said You

Benjamin Locke

Among everybody.

terms out their megawatts mean, there I names. to names know not mention want Google supposed don't means. in in to probably you because Just providers be to, we're number, three but microgrid any US, number And of the I'm I not by the now

pure in of terms microgrid number map. the pins in microgrids, number terms US. XX three number But on push of we're think capacity. operational again, the in We're, I of

Alex Blanton

can't You the two? other name

Benjamin Locke

the study? don't ICF go It's you out an I Why check study, believe.

Alex Blanton

okay. Google,

Benjamin Locke

Yes. I'll link, send the Alex. you

Alex Blanton

Finally, on XXXX? in What of in this? significance is last start-up the mentioned question Toronto. You Toronto a

Benjamin Locke

them Toronto to capacity them shipped up there. developer over this And X.X turning them. them and units off So we've is We megawatts And off, the and then commissioning is And year. about expectation, to been we and all installed shipped is, that commissioning up installing slowly of at of going project next the turning XX things doing. job large in the this the is the are final this these year. developer beginning big of fulfillment anticipation be of of operational the and plan up that schedule all

require Canada that I started fact, In year. involved in it incentives there's by to think some next be

to nicely, a year. going starting significance generating the Alex, of of fleet service have year we're whole didn't the we next beginning this is that quite that InVerdes have So revenues that, of

excited about that, pretty that. I'm So

Alex Blanton

And what it? is of a kind facility

Benjamin Locke

the of up They cookie multi-unit The spread I amongst these but all not residential campus, cutters out kind buildings. residential. are been believe, I've there, multi-unit

Alex Blanton

you're And recognizing service recognized I have, you the yet, equipment? revenue not know that but about recognition? the Have what's revenue yet? what

Benjamin Locke

the has shipped. all So equipment

of there, InVerdes up All border are north the of the now.

the done. So is equipment

commission we seeing is we'll at then only, we recognition starts. get the of revenue year, left those you'll our But in earnest beginning next few revenues on that's when start start, start these in once the the services the things segment. a equipment Alex. so the appear real bucks have And fun running we and Again, them,

Alex Blanton

say is? you that how Can much

Benjamin Locke

we half nobody revenues load because will what takes building at out X, in load real going to so. day? to Are it's No, to XX Alex. run. that going never in for to be. hours see to start Are how to a say There's much they me figured first because are showers need run going And XX/X? predictable Are off, X? I to exactly they going because things takes be run hope everybody before difficult the showers run you but they building these considerations double share actually

Alex Blanton

of And these? residential? more does a a big to finally, when developer, do This is developer big plans this

Benjamin Locke

word. the to classify I right And I sure should, I word probably except to is quite how developer think not them, used that I'm wrong. developer don't say…

Alex Blanton

mean, I follow-on there any is business?

Benjamin Locke

large as we've course. of starting by well-executed the units we are, company. project a And delivering done up. them well a It's think been we've them. been It's Yes, and I

at if think in building to look a another as look opportunities driving know, more and said going so And now that hopeful there's can them, got got business. And we've up gets is to be now you there trucks site I've that I this got around, there, us customer and then start site, at trucks there because someone there, and a in for service the center to guys I'm dispatch you more going service order. base to you that to next and you've of be then Alex, past, the thing the

So I'm very to hopeful that this geography Toronto continue is going grow. to

Operator

like you There at floor no to for have. you. remarks closing time. I'd may further this questions management turn Thank back are the any over to

Benjamin Locke

I our year Well, thank call. Very good of full the the for know, you, look next everyone, and XXXX quarter questions, participating in call. earnings forward sharing fourth and I results the to on the of

Operator

this again. you gentlemen, Thank today's webcast. concludes and Ladies

Thank you lines disconnect time. may You a this day. your at participation, for great and now your have

Tecogen (TGEN) 13 Nov 202020 Q3 Earnings call transcript