TGEN - Earnings call transcript Q4 2021

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Operator

Greetings and welcome to the Tecogen Year End 2021 Results Conference Call and Webcast. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to turn the call over to Jack Whiting, General Counsel and Secretary for Tecogen. Jack. ahead, go Please

Jack Whiting

at may is the your direct General in to and future call the like to for release our archived Securities This those indicated our differ Tecogen. prospects regarding will of statements a and purposes presentation. fourth included would constitute well. our and presentation Please this Private on website of the I by and that website section company's these year-end note statement Harbor attention about is press under Investors for Jack in morning. Litigation forward-looking the Counsel and available the quarter Safe morning and Safe Whiting, forward-looking as Secretary, of our be expectations, Tecogen.com Harbor statements. Good plans, being Act the are couple the results press earnings, earnings we the materially The provisions of provided Reform weeks. release Various from XXXX of Actual Investors remarks section make recorded XXXX.

which under those caption in of XX-K heading Commission the quarterly including annual our under XX-Q filings. important of on factors, website report the available on are and the the SEC in with Securities a result and Form most As on company's Factors, various Form Risk file and discussed reports recent the Exchange Investors section

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

our not reconciliation most to of the XXXX Investors Generally Accounting Locke. measures will fourth in year-end website. and also we regarding the non-GAAP measures our of will Principles GAAP refer Benjamin turn or call release the is measures and over prepared section accordance in in earnings with A quarter I the call, Accepted comparable press provided to now During these financial GAAP. directly to certain this financial

Benjamin Locke

Thanks, Jack.

a First, explain to any It's by website. later is I'd of Bob like of to in fourth the would that followed overview, like that quarter operator full-year about out up our turn additional prior to over out than course, now. just questions. discussion is going as agenda typical. our a off takeaways offline company call start X and to not detailed now. earnings Panora day to review there from right And, XXXX results. release saying little a bit as everything point came then right on earnings do in available the our SEC needed. for release on is commitment, is today available I for due want I'm talk on a and We'll But our cover but Slide I'll by brief indicates, to call the I the key the earnings the

of this a reminder, be available section will website. our As download the investor our presentation page in for on presentation

systems energy sells X, efficient gas reducing Slide of customers while provide a short to clean overview Turning like to a and footprint. maintains I'd environmental to Tecogen. provide for Tecogen and savings cleaner resiliency energy to emissions and greenhouse

grid goals and industries outages. reduction, environmental also helps solution their resiliency providing for carbon reach while Our facilities to

contracted our customers. As to a steady seen on has revenue provide we systems recurring this centers of maintenance have XX map, service these and to deployed to thousands Tecogen these stream

grid study maintain of the for ability distributor X, left micro to United here, the operational systems Slide many the the operation as on to grids, grid operate Turning of third outage. shown number Since in a ranking in with during States. generation our as micro as the systems our XXXX

capacity. over XXX an deployed XX.X a of facilities different grid total in enabled XX additional for micro systems inverted have megawatts We of

grid the electric congested, resiliency rates. increasingly micro to from relief becomes and peak feature this outages, grid burdened and allows As

addition our costs Tecogen and lower offers systems, than reduce chillers operating industrial greenhouse with scale distributed traditional generation chillers. to In gas footprint

are healthcare products cooling for had operations indoor of our particular growth but use conditions. have in cooling applications, Our a These chillers maintain success environment with after and we process a to grow tremendous use sought controlled facility. for clean in precise power agriculture amount

operate not their and needs, electric but reduce costs capacity chillers the also dehumidification. and electrical facility in heat grid gas heating net Operating when the grid. Our facility, facilities compared while to substantially our amount the reductions for only of reduces needed providing simultaneously chillers capacity provides greenhouse to these

of have agriculture environment cost tons our clean cooling a is engine Ultera as effective recognized and solution over week, chillers and As CO, sizes. XX,XXX reducing across we wide technology facilities. And lastly, controlled our NOx for emissions of a hydrocarbon of platform range this currently in emissions

footprint products System clean our the or the environmental facts of Ultera Our standard all comes relevant systems of deployed not, some provides Slide systems. require about to-date. reinforces our where on X clean we've local and further our energy regulations it

COX, service, over continuous of tons As of the X.X I million mentioned, generating customers, is to over XX we've shipped, with in over reflected million hours X,XXX O&M clean our energy systems runtime. numbers gross our deploy These kilowatts of of as than revenues. the of to more hours’ which saved increase more continue course growth units XXX,XXX we electricity from

remind to Abinand and the our three streams quarter over turn revenue on numbers, shown to for Friday. like main year-end I a Before of detailed investors review fourth of I'd call our

and product cogeneration residential industrial grids micro range Our agriculture a consists chillers processing, including and hospitals, facilities. multi-unit units, of sales markets, environment to revenue systems, controlled of buildings, of

year for takeaways review comments that, customer's in numbers comments component like the consist and installation more to sell With our to our primarily third And have we sales, Abinand produced a for stream over of call expectations O&M the And thermal service I'll our and revenue the to whereby equipment small additional contracted energy from facility. then is I'd some at with energy our of services. electricity detail. about turn on-site revenues service by our on XXXX. Our

Abinand Rangesh

Thank from per was successful operations. income fourth quarter XXXX, you, share. or income and $X had Ben. Tecogen positive than higher revenue Net previous in a with quarters $XX,XXX,

our largest Revenues in also We were million. cash is XX% from to QX gains which The a XXXX. operations, and in revenue $X.XX million, balance Product year-end cash compared in was generated increase segment. $X.X were the

Service in QX due when primarily total installation activity. although Our revenue, down were compared XXXX, to to reduced

Our up O&M was business XX.X%.

curtail past discussed turnkey portions have earnings made of choice efforts As and our we the installations a higher to on we our focus business. calls, in margin

and was a in the profit discuss I As XXXX. XX% QX a details moment. profit overall result, will in margin segment gross revenue of gross

$XXX XXXX, and full was per $X.XX the was earnings predominantly share per $X.XX the Net protection loans income the our by year was paycheck the credit, cash of XXXX, retention improvement For of and driven forgiveness share. from the in million. This operations fiscal we employee also want gross in our income. and margin that generated operating to year significant thousand. I highlight

our we OpEx impairment segment operational $XX.X revenue XXXX, seizing DG to included For assets. underlying fiscal fiscal COVID impaired some that with we from contracts installation largest reduced in year XXXX impairment our of the in In $X.X energy to resulted adjusted goodwill due EBITDA. with had determined year American our decreased goodwill were expenses The The was XX.X% million $XX.X facility year minimize the fiscal to Services XXXX. the decreased acquired XXXX. activities. the with and XXXX contracts decision goodwill change value. in no our XXXX, year million. in charges charges result, associated XX% to as million fiscal compared ADG operations production associated associated XXXX, we QX In a

There positive full-year was to EBITDA EBITDA. or QX emphasize would is was fourth operational did a these in that Adjusted at EBITDA XXX,XXX are assistance improved credit operations was of $XXX,XXX. any loss in XXXX. to X.X This employee the quarter, the this retention of in an we by not other improvement without revenue in Year-end compared credit and fourth $XXX,XXX. like predominantly chiller retention will represents number credit, from adjusted of for receive of million employee still million XX% the X.X impacted Our this later. XXXX. EBITDA in improvements. for quarter. from year QX, retention results segment. was fiscal purely the by Ben favorably The I increase quarter-to-quarter. employee XXX% a X.X performance The This government is chillers Adjusted XXXX strong of more backlog XXXX that QX an and adjusted also product product discuss to was compared million shipments. XXXX, increased improvement by

co-generation letter our shareholders projects, agriculture many this equipment. has the chiller seen to able X% is our to as continue declined segments sell to results. year, revenue of environment to strategy last concurrently competitive outlined believe we Tecogen where shipments, market by In chillers with of starting we be can we advantages, we are Service in the quarter-to-quarter. focus show significant controlled As on

closely, These to such now have less made conscious installation is a than projects. and choice However, we margin, almost when revenue we look limit XX%. installation more XX% projects

the was Our customers. product all due up. COVID in Canada Product XX% year-on-year. Overall service due million. production segments year revenue lower-than-normal low the $X.X on of some our the impact operations, was related units contract Performance The XXXX. XX%. is new shipments across sales number by activities. COVID quarter-to-quarter from $X.XX gross of contracts, gross revenue QX, during Energy rose from segment In escalations year. first resulted O&M and nine predominantly margin up variations our XX% the driven QX months for X% residual the almost pandemic to by million This profit overall is full product starting and XX%. to to This decreased and decreased declines seasonal

restriction In six found in sales lower resulted we of resulted product disruptions cycle shipments months in upwards revenue. product that can chain in in take sales-related a in of delay XXXX. XXXX shipments, in the reduced activities resulting supply and QX, Our

have fiscal business. saw previous that our mitigate shipments. we and believe in the to prevalent. taken call, discussed year continue we chiller be we believe XXXX, We labor we XXX% our a issues steps to As chain disruption shortages supply In increase that to appropriate all in

cooling. from focus clean on Some our of these results to strategy

of However, systems the a higher-than-normal amount XXXX, for cogeneration included in orders. we cogeneration In large XXXX a order also had Canada. number

because finding although of installation also Going This is stream decrease cogeneration is forward, strong, chiller to that some a XX%. activities. we revenue of expect down primarily was in projects sales O&M contracts, be are To sales. XX% high-margin revenue O&M our grow the Services board, up our a our XX% we from increase lead chiller concurrent recurring all service year-on-year. we XX% from XX% gross In the to XX%, This segments. corresponding an saw increase to saw in Across we profit continues which in margin increases in in XXXX. overall revenue, with our XX%. a resulted of XXXX, margin margin in to

from million do $XX.X a profit our to As the million. takeaways. point, earning result, gross At over to this hand to $XX.X Ben X% increased I'll

Benjamin Locke

Thanks. Abinand.

Turning the the I'd to quarter slide XX, feel full-year like important takeaways discuss XXXX. and I what the to from

continue to challenges a economic First, sales to from the COVID. recovery in product see we due

While for our in to strong at almost XXXX, down XXXX. finished with of product fourth revenues fourth-quarter the year product year revenues the Xx quarter coming to product sales the compared compared were we

revenue our We expect systems pace continue. product for to demand as this continue

mix based the as even for co-generation and to on business process clean that are an as we backlog backlog is is yesterday is Our note focusing environment solutions, important It controlled agriculture chiller our of such on potential facilities. cooling in cooling our and $XX.X systems. consisting of growth million, of areas

fast-growing controlled today, benefits industry mentioned the I release clean As earnings environment we cooling a solutions. are our given agriculture tremendous focusing the of is on, in

sales high geographies facilities as have increases. design in dozens agreements crops sales, Part and energy to term systems expanding through markets expansion of the value the cooling see clean focus sales potential grid, growth networks cost on and our sales and using costs in we reach many while most network representatives, We adding products. on and and manufacturers, needs of the new for of yearlong strategic In our three customers products. the and establish to our reduce for more by chiller is important our our These partners dependence established geographies. expanding three arrangements for in representative where sales for manufacturer partnership new cooling long effectively an new XXXX, way products are we our agents

to are of different resources of each efficiently. sales lead agreements these arrangements internal grow effective sales the will while While presence way the utilizing return, on degrees

continue we in our growth see service, Second, segment. O&M to consistent

as whole the segment Abinand attributable is While the service that a installation year-over-year concluded as XX% directly projects this down XXXX. in was mentioned, to

in gross Our margins and the XXXX. service parts, O&M versus repeatable with is true up of increasing and revenues XX% which driver XX% quarter-over-quarter to XX% XX% was year-over-year

are week, our our every year, keeping which very supervisors strong. and service revenues of We proud the every work every operational growing keeps technicians our do, day, fleet

we in takeaway and our operational XXXX late us the corporate throughout manufacturing XXXX. is And to improvement, put have third and The XXXX both deliver have margins in implemented in product improvements segments. production that began we improved position in in backlog and resulted continued excellent service

our later with cash balance to end at of receive of Lastly, have employee credit when of cash million. bolstered this sheet the balance balance we $X.X at Since is XXXX. of year retention with we $X.X the our million is to important million. added end the that further the strong current $X.X the year, It cash note will in be the

provide indeed we made indoor focused the the solution stay focusing pathway Turning we resiliency, continue such for earlier markets We savings this energy shared best on growth to to XX, where year. and progress facilities. as cultivation slide on we to

Cannabis continue XX position have over a will some ourselves representing markets. in And of facilities, square regional least Cannabis to already abundance sales thousand of set on dominant cultivation We've feet. given XX% a that at to activity cultivation the focusing customers space. goal have We in we for

making Tecochill air-cooled in hybrid drive potential our the and chiller drive, substantially our hybrid air-cooled will for sales which of fill Tecochill system the The chiller, many expand good of offering. development needed. an progress a markets gap will Next is where we're on our

more see grids. technology with updates in drive beginning is summer our I remains opportunity for together. as we XXXX. important lastly, efficient provide hybrid comes promising micro goal And and for ready late it the to Our will a XXXX, system for pilot the over have clean in product operation the an sales as foundation

looking or resiliency independence grid. facility For from the for

updates can resiliency gas system, systems continue Operator and and of results to look Our for it turn greenhouse providing savings goals in inverting inverter clean micro these integrate the the and needed this other for modular questions. power to few to next with over proprietary on-site generation I'd cooling the maximize controls to additional and showing resiliency. first products And I hope grid provide power provide benefits. our cost savings over level And with grid that, to against months. like the forward complete

Operator

you. poll Thank a be for please, session. Instructions]. while we question-and-answer now questions. [Operator We'll conducting One moment,

from coming Our from first question Dayal, H.C. is Wainwright. today Amit

is line Your now live.

Benjamin Locke

Amit. Hi there,

Amit Dayal

you How are Hi. you. Thank thank [Indiscernible] doing you guys doing? for

Benjamin Locke

We're thank you. doing well,

Amit Dayal

With us we progress segments? as the that Good recovery are outlook, and economic to to are to or growth, making you'll to the fill on taking key starting see are particular place, market you you in drive financials is guys be your respect to to going any dependent reflect XXXX need seeing that. end your

Benjamin Locke

sure. Yes,

installation come have indicated, was entirely in activity XXXX, where think no installation way, in up right that XXXX. and as is backlog of Abinand There's future, activity up of installation more I our the is We our the planned by might now. most backlog little product. but bits some finished

near just of much hand, And The means which and good. backlog mix and the well entirely we're to course, that very chillers. cultivation, we're in. that which is well co-gen which at even indoor that pretty wise with more it's product, on is focus a resources we're our are chillers of doing not doing So

our to hospitals we're the do to but So on focus we care chillers facility. traditional still selling also assisted and and residential that, continue -- multi-unit

there are one course, the we had doing as And for indoor a of and the -- nice verticals all co-gen So order. sales still it's It's the well us. just really well is cultivation intact. are

the it what model and Amit and a Tecogen seen really [Indiscernible]. testimony a of month have good chillers might was ago, was about to You

Here's electric facility, their to want load. reduce massive you your

Tecochills, their Let's a we power which first put put what whatever gas, all did, on need needs is they tons. chillers three XXXX bunch let's then And inverters. afterwards,

we're of in it put efficient of. or a the that and and we site more in things tidy, So type inverters eight that so was that's nice, solution seeing

incentives summary, that aren't seen. we've incentives to in incentives starting go so verticals anymore. are I always New understand main anymore. seeing There's not much Massachusetts away. again, we're York there the So I think

I think natural to drivers we're it's markets us. in important them incentive, traction without these market are bringing finding that because

So I hope that answers your question.

Amit Dayal

you us new next or that sales opportunity, give can air-cooled these looking chillers to to strategy, of respect year early year, market cannibalize this later maybe this a are offerings? the and whether With maybe you launch line sense your existing product

Benjamin Locke

Yes. Sure. And the is answer answer the no. not, completely Absolutely complementary. quick

with have and to have chilled-water chillers like tower how facility either of you or loop to want infrastructure. chiller to want won't want cooling just industrial cooling In a air-cooled or They vents all a will to terms -- tower. are heat cooling hospital a have, that a an tower another have not done, that chilled-water have its the they a excess a to this want loop, atmosphere,

you And or two of -- buildings, every down buildings one for tower. hot-water the them walk street, big so of them cooling have as maybe two big circulated two or have every five

four other or The have chiller. three air-cooled all

which a doing indeed on Indeed, to in at for trying some gap and a sometimes to we're we're sophisticated just to chilled that's trying scale is not offering. and to them our cool do. more buildings. easier Tecochill, industrial thing infrastructure, air-cooled an sell But solution the loop, necessarily we're them the water opt people where sell because away So sometimes sales, on is

not up of compressor had it we've to cooled and an super-efficient. So certainly are not bearing years sealed efficiency have sophisticated are these the but that for of got didn't it's some there out air many that product, very -- we technologies

something want across come what be So going so chilled-water an loop, is, be don't technology chiller, going an [Indiscernible] to air-cooled compressor all hermetically that's now not product they have sealed technology a to those chiller antiquated want that's new buildings that's it's for we today. is got solution we've on them. to this out there that using a It's when to put air-cooled

Abinand us. little to bit chime complementary completely market let has in I'll some a a he it's because So perspective as maybe And too well.

Abinand Rangesh

Yeah.

the which key chiller one brings same at does the hot-water a time. It cooling it think then few it is a the engine, And But is two. this also water doesn't One both the chilled that, air-cooled of on things. need existing is right? or already Tecochill, with electrical a special combination Ben of or other the it run combination I the mentioned, the things advantage of of as the top grid and on tower. can

do this after of the what So allows able right we're process us to just not go address to is market some cooling to that now.

biotech, you for look So also might market you chiller bring system, cooling of look system allows food currently places advantage at bring additional the where so want you a of you us -- we that And are you having at There that smaller. larger top lot think. up a there. where places where then some we can on us not lab there end a and a are or big grid. of or on little it real the air-cooled I is And everything And lot using we areas the as particularly the of a hit certain engine buildings resiliency the a to lot needs the sell. by that,

a tower chillers chiller, want even now, XX,XXX to square they smaller there, smaller there. facility a the so cooling a our than little right that, of about an have But side, we So if for a not every to you XXX-ton give that's need feet. in you put cannabis on may then just one example

segment of where segment very three system. that four bring can other out some in same times, our larger get targeting And at markets. disrupt chillers, process savings so the in go have this can hot a the can of you compared the in especially we two same water-cooled With put go we the times times, air-cooled bring cooling water markets we time, other now. chilled water there, number these chiller, with tends to that even the and to you volume that we're but right really can the Typically, and the sometimes sell air-cooled quickly, much a you

Amit Dayal

for side, in Understood. or for operating of XXXX look outlook, XXXX similar any for Thank place investments the other take you or terms just that. maybe expenses increases on should levels this that And cost in may year? what we

Abinand Rangesh

change commissions pretty number -- one expecting highlight that similar type through number expenses our is We're how changes OpEx expecting through, every reps. just thing pay quarter-to-quarter. moves than cost We're similar we're we quarter-to-quarter I company living and pretty XXXX. up should constant that selling -- are will that expense done And other see OpEx just on is -- usual goes to sometimes numbers. the quarter-to-quarter, pretty that to the will baseline selling you depending want external this, XXXX remain much or down The manufacturer's of

large We are Company. any within expecting any or not the changes major changes

Amit Dayal

Okay. guys. have Alright. you, That's I other I questions. no all Thank now. have

Benjamin Locke

All Thanks right. for your time Amit.

Operator

next investor. coming Your is Zuk a from from private today question Michael

is line now live. Your

Benjamin Locke

Hi Mike. there

Michael Zuk

us Ben. geographies. New Congratulations City is a you Good to Can what California? update an directed year. question morning, and in and Florida give York doing on in successful we're My very on towards

Benjamin Locke

go Sure. respectively. I'll

a So terms Those we're a stand pain in in of their the fine. you I now. there that the York, incentives But right on tell in anymore, in New drivers kind I but that will of but incentives etc. New out neck projects, they of have my York that's good, mentioned, attached economic strings were lot aren't as closing own

Abinand Rangesh

with now New what Electric they're just maybe an value the rates going York so -- was ADG at assets, and get proposition of is in course, a compelling rates visibility Mike, were good value And more pretty proposition. we electric okay up.

had to that we projects of ourselves it very in revisit I stronger are So take the the think now will to York getting economics. have economics some New upon and compelling

stand with for incentive New kind without going sideways in this on gas going the to thing sort looking So that's even themselves. of of even the natural is York, and economics

market down rates continues is fact indeed and service projects a be still The think we've I to us. has can a just be So electric in center rising new still for is a got going there reach the to our Georgia to that we York bit. ability little helped now there. Florida attract what's New how

my following it In becomes because long terms issuing we're they lot reside think in is. it very to chillers, we're the Mike process saying, spread mean, a is the the on hopes of out mostly very finding I that on with Florida, some of I a to It industry for actually feet in California, lot and permits. and where they're my City spark chillers make for for at because they're a looking dreams spark there but grow But industrial permits really California anybody fiddling of an California there. getting seems a York doing my challenge, is difficult for it But lot a put of I got a are we growth us. in in they've think Jersey California permits, what. and general, New track with spread facilities in Massachusetts still in how generation of like things. way way Florida there's project Mike down and to they who's up They difficulties difficult cannabis industry, cultivation and home. against put side indoor and and New down fact, and -- so same operations be is everything, themselves there Mike, the it's days their followed example, the in going just but these on-site that have the it's California, dreams following this around they are big process, we're -- biases in not got And orderly hopes more of and and what

because for on-site such generation cold thing. a or continues fusion to out a solar prickly point you're other or bit there. some of Just be utilities the Unless

Michael Zuk

Is opportunity stations any EV, charging in systems? using opportunity. Perhaps there our

Benjamin Locke

are about And there maybe indeed, that. charges the get needed. you locations get power Mike. fast to do enough Sure. these that X-phase can't that remote We've thought

able the scale, have and a just the on slow power can't them these to speedways you infrastructure need to a, need You and to charges to the etc. big on fast have be do you charging highways do

Mike, some of an we're might same unit useful our that for do the things And that purpose. indeed, a do and to Ideally, course, able that of that's opportunity, be we provide kind could could so the against find, thing. up all home for heat other

efficiency We are to just be that a that box system want an house. of of having full into inside We don't like to getting to there's plugged as So opposed our genset generating And down of big there a you some EV cartoon be diesel indeed want house. the asset, the that. efficient.

So opportunities finding those more is a challenging. little

Michael Zuk

[Indiscernible]

Abinand Rangesh

Sorry.

Michael Zuk

[Indiscernible]

Abinand Rangesh

More that chart EV commentary looked then. solar and a at at looking because back is actually to from he side were you

Benjamin Locke

higher some the Tecogen And greater, York products. higher still continues well to Jersey market. thing, also also so to I where years us things from there's of those that may the mean, of more of favors as chiller viable. of well as markets to the Memphis, you much wanted York, day New few demand our areas seen a of greater to I much they've of didn't including New because type we're well much just, have operate going But kind a our actually that's the where New to of lot of rates. still viable are address lot as driven continue products, the of more parts projects rates for as the but the what an both over to starting area surrounding a starting of active actually as country us. say I'm of other Island liability next like at, I look when likely New is thing now you're I earlier because we're as time And regions, one Again, electrical in but earlier chiller the without York to completely is become And sort much are finding I Long be not had think -- as rates, towards markets, for we case. be still the rate. doing very, not Michigan, City get issue, that Because electrical might see from New in York very low Because be York mean New

Michael Zuk

on And the then I United relations going States are somewhat progress the Canada, any Canada? in strained, between there anything in but significant happening Canada Is on as a and we there? updates had follow-up. made know what's

Abinand Rangesh

our that that months a The I up a we Yeah. running mentioned the is saw is O&M, that's that of next that service Toronto it for the it every revenue. XX large promising. phenomenal. on contract that's quarter pretty ago And few units going or great running in increase whatever for service happen update XX so was Well, facility whatever years, and biggest that's that fleet's That time is Mike, fantastically. or quarter-over-quarter, those from thing got part the XX% to we

up new matters There -- of off, terms opportunities. in trade us nothing are there. international, there. Now to first us there, inhibiting type any really opportunity or of is It's really nothing

it have opportunities are indoor these I there, of cultivation lot a clean where up They up there, we comes to down seeing Mike. again, think facilities. power

all natural there hydro the the drivers there. up of some got they've So because aren't

the can just pretty good. starting grid for need they footprint can carbon They the to megawatts, power are these them. and facilities the where them we're think is where give more grid only three the drivers But see So grade give one. again, I need than

power. they looking for so supplemental are And

opportunities potential to and on to that important -- opportunities up in to our goal progress able a guy up and Getting And sure. those the It's to that these making running look look XXXX up service it's at we're fellows was done, key have main there. start to can be got Toronto fullest its up that there find are now and we there. pretty be to ground them. to development at business have other So

hopefully, getting more will So up there. be business

Michael Zuk

pursuing In that Canada, reps? we glean that are sales have answer and do I direct manufacturers also

Benjamin Locke

question it's Mike. Yes, good a

anything a of with his guy So a that of But we have he exactly and me hit importantly with we a fella up starting arrangement, do smart guy much me that he But he go don't direct have these occurred customer in a into we se. the XXXX some sales. managing end that's geographies mentioned thought without and have potential to supervisors. sales of -- there is a are we probably establish service up a person he's out want three too per these se, course I that's partnerships walk them, of per sales he though, has can is what conversation he fleet. not told And Canada. detail The he's the he to hold facility. giving But if there

but geography, on vertical. not based were on a partnerships those based of market Some

For example, cultivation. indoor

So do sales there. indirect some resource up we have

Michael Zuk

market. And then any this potential [Indiscernible]

Benjamin Locke

Say that Mike. again,

Michael Zuk

Any the potential in Texas market.

Benjamin Locke

the might have for Oh, rates of remember good we and are We build a there and might everything spread we difficult down with everything. they'll the The our component provide Tecofrost. that but is [Indiscernible] pretty got Texas. Yes. of Sure. really spent a tell years course, with happened you time Electric Texas, is think in partner and few rates are -- we've that [Indiscernible], Tecofrost. do you spark that Despite inexpensive. they'll now ago I refrigeration Like will pretty -- little our electric -- -- a I there.

with something shoulder to And [Indiscernible] and And we're refrigeration in of there's trying kind been interacting to if shoulder they've see Texas market. market sell folks to a resources good got not there. that we've find so I that with these trying there. is, rather may the But rather -- spark it if spread it much isn't be just where I'd for on to than focus my there, was valuable try

Texas, got you. to be not Mike, we've honest So eyes my just with top ten it's in but our on

Michael Zuk

in and profits very for growth congratulations forward look and think the to areas the are. the And correct where a a productive you've the I good company Thanks. Again, directed I that year XXXX.

Benjamin Locke

very Thanks, improvements And That's Mike. here. on a service aren't had now. profitable we the all temporal, fully that. we lean keeps just that up running Keep goal revenues, note quarter. the up, right? they're those in right product company lasting. intend keep the a growing. the to this made it We're long All manner changes We're cost and the We

to really So I'm keeping up. looking forward us

Operator

Thank question from you. Management. from is Alexander coming Asset Clear [Operator Harbor Blanton Instruction] Our next

is line Your live. now

Alexander Blanton

morning. good Hi,

Benjamin Locke

Alex, you? are how Hi,

Alexander Blanton

the Have backlog figure? you published

Benjamin Locke

don't it and press the our install think it's the was the that's, $XX.X $XX.X no -- I that backlog in million, is on Alex yeah, was was The release. product, was earnings. Yeah. and Alex, within the But in that it that. Actually, press there's in million, release,

Alexander Blanton

in release? that, we press it's see do the not Where

Benjamin Locke

Yeah, it's not the in the which Mike, is presentation, press release. website. It's in the earnings -- on on again

Alexander Blanton

Alex. is This

Benjamin Locke

yeah. Oh,

Thanks, Sorry, I was Mike. with Alex. just talking

Alexander Blanton

is can't not presentation it. on the Well, find I at website, least the

Benjamin Locke

Yeah.

and to It's bar make that just Alex. Investors It it. we'll I to of sure that enough have is email But If be do think on. there you click on what us you you done. to website for should we'll section black the just go easy the

Alexander Blanton

quarter quarter Well, there's it presentation? fourth the presentation, be third with a shouldn't

Benjamin Locke

well. Yeah, came Alex. little because there, with arm bit not IT out late our it That's should as provider a on wrestling there it's all if And morning. earnings been our I've on be it's why

there So it's be will on if now, it shortly. right not very

Alexander Blanton

the Does markets? it include of to backlog a according breakdown

Benjamin Locke

indeed, does It Alex.

Alexander Blanton

A pie chart?

Benjamin Locke

I'm access can Yes, can't But size. it does by indeed. you it And and sorry, tell it go very what you I I'll is quickly.

Some XX%. still Healthcare, mix XX%. environment past. which it's looking agriculture at up about residential the hotel living a of remained strong assisted at other, The than Hospitality XX% XX%. higher That's to been is XX%, some space, universities CEA a controlled multi-unit is is and in

So a is pie X/X the what cultivation indoor of chart now almost right under the little is. a

Alexander Blanton

order the really I the fourth the didn't were so quarter, We lot news a getting the backlog the really big a that. don't during get to for quarter, So of contributions what have feel orders?

Benjamin Locke

Sure. Yes.

echo think didn't of the very We're they every and geography. rather way that but chillers out an editorial seen, of there's facility, we ones of over releases because units. these and I one just respectful it on press trying here be think the chillers. would put a it think not would've to where here. announce becomes I the combination And eight little you've trying are so where and comment co-gen Right, of money. chamber course, probably the cost mention I'm material I had tons And and orders I co-gen. -- to that was by XX I material. lower just that

away that's we're units that's and backlog right working that on material those the now. and went So something into

Alexander Blanton

Okay.

Benjamin Locke

a had to New Yeah, York upon. in that expand Hotel Alex, we where actually had -- one, that another and wanted then January, we

have I where We in put some now, put thing chillers. they model in there to person, is want we're some a seeing, your did the co-gen. I chillers smart I'm there's, Again, this this that is first

marginal Now of exactly co-gens this in that's putting supplement our smart by I'm to hotel facility. of did, they're and co-gens even some more that trying a what your in be putting megawatt to

January. going pretty November, in new was there's system There's a and So are to the there's anyway. -- on of powers think in of -- first megawatt the few the of two-z It's of one-z, those that hotel a markets we're cats agriculture. relevant The the big I to there. that we're one-megawatt for didn't for rest after The those that basis. trying that that are component backlog. I our Teco publicize are was some controlled few in of there our in orders STX's, representative announce X.X two big that environment it, a ones, feel some Those varieties one dogs, couple decent Alex, was

Alexander Blanton

Is York New That City. it? Hotel,

Benjamin Locke

New is York It boroughs. the in City, in five

Alexander Blanton

hotel part a as or a chain a of just standalone? this Is

Benjamin Locke

you of as my be chooses be he's this them really however, to want press he owner respectful how hotel we're this things his certainly joint of really release bragging about a we helping what fact, is I'm running never to of big in this he very with. doing hotel, own and the I there that. And represent you Alex. himself. have tell his equipment tell trying positioning such, might I these This year, guy, will own on Can't judgment he go this developer a brand Alex, in but I'm against my to appreciates and the and fan once would get having later to how -- hotel. deferring There is

Alexander Blanton

That the that to of be be welcome. was of really asking a would The welcome. your very would publicity company. was hotels That reason kind you chain adopt equipment, if I get for

asking question. So that that's was why I

prickly little bit in that the California that? you California, said Could on generation. on that were about is utilities question fill on-site in for that? What Another a reason you

Benjamin Locke

really Yeah. depends on-site type of Well, generation. on the it

for If not a on-site fuel gas, generation, of like SGIP eligible you're incentives. do any natural the fossil then using you're to benefits,

on-site while and tariffs and $X.XX passable less kW the non-by addressable. good take for economic charges it eligible a a really is become way $X.XX, generation the frustrating. on-site other fossil by good charges Instead - proposition. the standby rate the charges this. generation. from are It a standby the very electric non very differentiated that makes passable You Which It's of that is does adjustable per types bit of

electron can great. which running a said you, that. they fuel. do are there, Natural on probably discrimination. there's is Alex. their fossil out system now are dispensation I chiller cells gas, tried XXX-ton again, going But a there. Fuel beat That's get load, doing what a now I think for their they It's to there, on? I way hydrogen. cooling this to special out But But that, by, Yeah, run Alex. so can the hydrogen after that's in I what no the well $X.XX you full about I electric tell I'll tried to do I being I cooling in that? put that if about addressing load And mitigated. different am loads. what

Alexander Blanton

Do carbon or whether any care your from about there's they units? not generation emissions

Benjamin Locke

course, of -- course yeah. Of

Alexander Blanton

Did they Because their isn't if objection? account? into there what's put that any

Benjamin Locke

bad any to the be Yeah. going clean of would [Indiscernible] Well, I be and to Alex grid therefore, And XX/X. on is alternative would guess say alternative. a our grid the they time

few the true that's the for [Indiscernible] greater hours in course, a when a clean. sun maybe of is and shining day Now than

Alexander Blanton

are they electricity? generating How zero

Benjamin Locke

combined wind goes That cycle the on will down all again, it's the solar, stops sun but it's combination same when a of the blowing,

Alexander Blanton

green the from doing whole it? is you not energy, that [Indiscernible] thing but You're it, providing

Benjamin Locke

I your I cleaner normally admit of XXX/X, I'm the right grid we're other, drive fine. on which not drive, there we're the can way engine beauty But the is they be the hybrid of hybrid I'm we Alex. And however that's Alex. notion take and run acknowledges they with California look with the all fine, the XX/XX, it scratching successful be sun of than cool, to cleaner me, XX/XX, to that. a to grid, can't right? parts clever would the those believe gas the Because and do. you way this building the wind going can transition together. our XX/XX this than two blend on right? grid the one do seamlessly day. That's seamlessly but trying the And down going both to Is most over goes me, in back to this this clean, and drive, looking we chiller could this while this right -- perfect head do, over the about now to ramping of it's think is change would and Yeah, you, And it, downwards. of transition okay, is I is on. I just But defer the be make run But again, I'll run be I'll to blowing, better hybrid what what you're that's keep that grids drive why I day. sometimes say not I when is at But clean, what stop imaginary you. going on when

I think this I little the California. getting that's see way conundrum so And of ourselves around

sense you. hope to makes that I kind So of

Alexander Blanton

final and question. finally, Yeah as one

went reason? You What was said up in January. your the cash

Benjamin Locke

work collections and Hard

Alexander Blanton

[Indiscernible] Okay.

Benjamin Locke

you You might didn't number have notice maybe -- revenue unbilled noticed Alex; our down. went

one-thirds, dotted slowly that Alex. that in surf lasted this three-thirds unbilled was on. And revenue and eye chipping might New is every be the two-thirds, there, -- perfect away at that tiered It's so that to so three-thirds. remember you And York was the what required incentive number

an on lot. this team And have we've is it been that. about progress just certainly away But being of a bit more been making part so chipping good our that and collections. unbenounced, little again, doing a And at smart

Abinand Rangesh

deposit -- of type a So, much that we even competition also essentially we're the units some much larger chillers. little have out able -- products to we the with of have of it is ship. stronger the clients because now very we're because get Alex a of We selling before

and on then cash of that our is course, better than of generally that, So entities. of ever various NYSERDA we this have outstanding been. cycle then from and rebates the top it's collections all collecting much combination And

Alexander Blanton

Thank much. you very Okay.

Benjamin Locke

ahead time your go going and other appreciate send presentation it. always you I or so to way the the I'm Alex. you'll have one to Alright,

Operator

the Thank any floor you. closing to would I to turn We appreciate our management like for over session. back question-and-answer or further comments?

Benjamin Locke

pretty I what to your long will our now from about we'll we're excited and XXXX not excited and listening be and about everyone participation we've Well, you earnings thank too about We're then. call. that pretty guess, be having for in accomplished what our it's here results talking QX

in until and take So Tecogen us you directly. then reach thank we're out investing for happy want to questions to to people any if

Operator

and does conclude webcast. teleconference Thank you. That today's

today. time participation wonderful We You a thank and this day. for you your may at line disconnect your have

Tecogen (TGEN) 10 Mar 222021 Q4 Earnings call transcript