TGEN - Earnings call 2 2023

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Operator

Greetings. Welcome to Tecogen's Second Quarter 2023 Conference Call. [Operator Instructions] Please note this conference is being recorded.I will now turn the conference over to Jack Whiting, General Counsel for Tecogen. Mr. Whiting, you may now begin.

John Whiting

morning. Good Whiting, Secretary Jack Tecogen. Counsel General is of and This and is archived our Please call recorded website will tecogen.com. of note, this section being be Investors on at the the our the the in section earnings included presentation. to of to and XXXX release our are like Investors second website.I'd press your press this morning release regarding earnings The in and direct presentation our safe provided available statement quarter attention harbor prospects constitute remarks the future and Various Act we expectations, the of about may Private Reform under statements company's the forward-looking safe that make Litigation of provisions purposes XXXX. for plans harbor Securities filings.While of annual results update obligation in as on quarterly and on from Investors on we a any Actual under including to the Form the those Form statements in are with specifically various reports the caption XX-Q the file of these do recent important SEC the which factors, may forward-looking the and Exchange available materially Risk some report differ result our disclaim in point Factors, those XX-K website indicated statements and at we may Commission elect discussed section under future, Securities by most so. heading forward-looking company's to not forward-looking or in Therefore, today.During principles any measures our date to accordance you this refer accounting statements subsequent with accepted GAAP. call, on should prepared not views rely financial any certain to representing generally as as of we will of regarding now is and second financial the earnings non-GAAP our in quarter these of the section release Abinand over directly to turn the GAAP reconciliation to our Investors website.I'll in Rangesh. call provided A most comparable the press measures measures XXXX

Abinand Rangesh

is everyone just I'll me call proceed, I Jack.Before with introduce on that the you, Thank today.

Jack. you, Thank I'm Firstly,

just introduce the that I call with proceed, on me today. Before is I'll everyone

Firstly, I'm of the Tecogen. Rangesh, CEO Abinand

last grown call. with are second tremendous meeting flow, Deschenes, up these objectives. above financials, me importance, plan. In laid our growth is our have earnings cash on and who by our quarter the cost. regards us and Officer.Firstly, out then I our generated with Bob in you Tecogen our update wrap with with Roger quarter and Chief through XX% $X.X who's 'XX in the we couple the We Operating toward I operations have by start Officer take objectives order welcome President; where QX next started quarter and cash We to has followed and cash. XXXX million and X% In marketing; of will to then and saw steps.We $X.XX since on I'll since Panora, and margin and Roger the We an Accounting finished objectives. Chief 'XX. QX giving of will with also Revenue focus million revenue calls, from the the lastly, cash.

indoor agriculture. approximately is million. receivables.Our Our $XX.X presently than but more customer CEA $X.X the collect regular million, has to and days, our is current deposits position or next $X predominantly sits in backlog addition cash to over expect in increased This at XX presently steadily backlog we million

new with have press our relationships are industry. you some the companies may As we seen products established complementary from releases, selling that same in sales

increase have Daily advertising Vertical has CEA in received which owners. publication, to begun We and also the helped the write-ups favorable Farm exposure facility our

ice QX, QX backlog freeing as inventory tremendous strong the approach and expect to equipment where similar levels targeted take We savings.We expect in product rinks shipments our market cooling, and cash. a offers further process up in other and to segments, into such reduce turn

team. total the Aegis to sites will of to service to Air-Cooled part balance transaction agreement. on on a One well the the well We way our over the and interest. with on note of and is to performed XX.X% Chiller quarter-to-quarter. took also financials.Lastly, service acquisition liability we be the when the in completed our an Aegis is further the their progress for saw technicians contract marketing as amortized the are as revenue thing of explain present increase The and that being this goes paid on the services to life with sheet Roger of accounted he value P&L consideration the customer over the continues integrated

plan orders, Although seeing we to have orders not Chillers. projects and for are Air-Cooled We multiple on expect this our specified before soon. shipping current shipping start backlog yet presently we received to purchase focus product first on

we I'll do Now that a doing start increasing before go after order our more our increase to financials.I'd quick profitability. in can to that what our backlog is towards to the about margins of are business recap next financials. we our Roger over talk steps products margin are like move reviews so increasing, we

We have X customers. value propositions for end

a for is cogeneration electrical and The to blackout. gas engine a first use the power savings and the to water in backup power use This generation the generate energy produce of for engine some is cases, resiliency. We electricity event in building. heat natural for and hot

efficient we lowest. to so as fuel summertime and much cooling a are load lower have chilled are highest producing control. control, are that the applications CEA, prices we power greenhouse in gas use such products. natural These products cheapest humidity as et cooling when require the generate an water the our and as Typically, source gas equivalent cooling of in second simultaneously, heat twice cetera, occurs fossil water healthcare, as clean footprint.The climate plant the We hot are is able

So we energy also savings. customers offer substantial

electricity In addition to energy savings, little no our operate. chillers require to to

to utilities where applications for sufficient supply ideal are power. unable are So

greenhouse contracts. than cooling waste boiler and power and not that are XX% reduces tax most long-term service payback since footprint plants customers credit an cogeneration, combination is substantially.Our feed. last As utilizing value up proposition with fossil the to investment chiller cleaner electrical our from is the our electric fuel products cogeneration gas equivalent a benefit electrical to Both our clean

their allow provide centers maintenance end-to-end energy maximize service Our customers to and savings.

provide to increase offer XX optionally maintain the of service.We than we of we heavily the run also that sites This to balance and range plan Our We number of our focus for segments. ancillary revenue an that will maintenance that typical to increase services we plant. strategy on. is services area contracts have years, customers and X longer

sales units, revenue consists and microgrid to of and product of chillers systems of cogeneration Our range a customers. markets

revenue contracted services primarily operations of Our maintenance our consists services. and

facilities.At energy stream over I'll by and Our is the revenue energy to point, at produced hand production Roger this electricity financials. to energy sales equipment of including from sales, our customer on-site review thermal

Roger Deschenes

second million in which is of Thank you, revenue. Abinand, quarter and XXXX, the good quarter in compares an second increased increase which XXXX, line primarily revenue to of was $X.X $X.X million due X%, of morning.Our the top services to

compares and XXXX $XXX,XXX quarter loss from which employee in are expense X. the of increases to is profit increased X.X% increased is million in the to $X.X $X.X quarter due increased of in operating business by to related net $X.XX quarter approximately Aegis million acquisition, Our Operating quarter depreciation XXXX. payroll and second and or in amortization.Moving increased to predominantly a for which second from to was net revenue. $XXX,XXX costs, second X.X% per XXXX per of primarily loss in second benefits, in the second XXXX.Our Slide insurance expenses share share due resulted the the of and $XXX,XXX $X.X which to incremental from $X.XX million this or the quarter expenses gross This aggregate, and the XXXX XXXX, of $X.X million QX

For loss adjusted the the was $XXX,XXX. XXXX, the EBITDA was EBITDA quarter loss second of $XXX,XXX, and

increased and increased amortization the and by mentioned in the customer terms in the earlier, amortization recognized the to combination approximately of second of contract due is Aegis X expense these assets by additions several the vehicles depreciation depreciation amortization of part and intangible quarter the As of as period, $XX,XXX the acquisition. of performance which of XXXX segment. our to addition The assets XXXX.In

in overall quarter of margin second Our the in increased XX.X% XX% in XXXX from comparable to quarter XXXX. products the

chiller just to Our has margin above XX%. recovered

better plans next revenue XX.X% below recently for was talk Abinand induction in increased and slide.Services quarter contracts. are Existing our first Aegis services improve about the from XXXX, margins the the the than of Our increased service although margin, X%, quarter-over-quarter. of acquired revenue increase cogeneration revenue to our balance expectations. the contract will our more system

was to to as Our for is engine components. XX.X%, due replacements in chains from which margin engine part which XX.X% up somewhat service lower, eased decreased supply have

the services they margin to Abinand. remainder the for be call expect temporarily recover will of ranging hand by the back part year.I'll the in We to next anticipate levels early balance of to but percentage over lower this mid-XX previous year, the low now to of

Abinand Rangesh

Aegis recurring Thank has you, our successful increased Roger.The and has been revenue. transaction

increasing. also is backlog sales Our

So focus needs be next on our margin. to

cost catch to last is track us have This quarter, to excursions allow we As metrics going business quickly. better mentioned to performance. implemented

multiple Our to approach our will also come going margin, product products. to of avenues. have regards some margin increasing to increasing With be to we is prices for from

We process and can are inventory improve to analyzing minimize also product power. variation parts lines the in common purchasing be across our which of our

substantially to we will we believe prices have raise rate prices looking service of on regards to raised so. utility we many product regions increase commensurate operate reduce complexity We we our with increased the further are also increases. and margin, places rates at have in and renewals margins.With where do service Utility can continue in, we contract can to

to for items We customers are equipment to also service quoting billable interface the required work with to that building. are our

heat and will not for customer pumps increase recurring also For source savings revenue high-margin example, such only of time the exchangers is benefiting company. added items an as run but the

can allow are more us working on technician. This We increasing intervals. per by between to reservoirs, longer intervals service increasing maintenance so preventative engines have will oil revenue also run

life by continue increasing cash algorithms.At like areas we're to the and to heads. I business, run-time to to to be on and extend focused the in the We're wear that backlog. service components lastly, inner to reduce both to And grow for going We're summary, revenue and products. freeing point, attempting stabilize would up margins we're look like also going for focused also reiterate to tear critical be ways We this continue fill improving of on.

point. and has technology impressive model is Tecogen at term. think generates business consistent cash turning long flow I a a over that company the The

we rates order for media, major advertising However, to promising a confident Any savings grow and utility of questions? articles need finding nationwide targeted that efforts, new continued I'm future. in publications significantly, new sales the partnerships, improved in products. including in higher social marketing make Tecogen some With potential the resulting and changes. to and improvement has writing our

Operator

be And conducting At we'll Sidoti you. is of from Sidoti question from & line session. Peter time, [Operator Instructions] Company. Thank a this question-and-answer first the our

Peter Sidoti

in point tell if And increasing it's this product? I'm a a can but new sales quick you sales force at couple the me sell this Are One, how story, questions. your direct you time? you have I of to force? do

Abinand Rangesh

meet to you, Nice Peter.

internal So an we actually focus have but for and external right sales the company is reps. now using large a force, partners

perhaps where of chillers So traditional multiple country. HVAC sold some are we reps all the over our through have

also, as with With the are I mentioned chillers, companies products. the earlier relationships we similar that have some call, in establishing we

modular controls doing For they're indoor example, chiller or they're plants. in doing agriculture

outreach looking are project So multiple that who to gives our actually there developers at projects and there sectors the has who who avenue our been an equipment. they're very past, of that has we of help there as various products directly. and sell it around and complementary in offering. integrate part through sales basically they're But recently, end already them company could and it been developing that because have partners are to lot could with equipment feel offering.With projects line, their grow more have working with well been equipment or substantially broader coming a our these actually they cogeneration are the our design where other building direct the developers and projects, fit a they product We project customers

engineering to have might the into of it products, various bring cogeneration exist. do, a at all bid that an at will sometimes come will point, then the community, where where and the point force for we over design does system either when will that it across a engineers engine-driven this this typically it. savings chiller the is work they various contractors project. And teach sales area the with them potential bid energy that sometimes Lastly, are this projects our out customer or will about engineers And go go on country, then projects the spec

sources sales external a there project as internal multiple without a build try as to So use to avenues. that's because up much large help grow to force. are likely us We faster development the do as having very possible just to company

Peter Sidoti

Okay. your about can you talk competitors? And

Abinand Rangesh

and things, of side chiller I'll cogeneration. the with then electrical talk start I'll Sure. about the

the same you're of long Like the cooling in where when our some gas, no competition manufacturers. actually a compete where and Tranes, on So traditional heating dealing with combination the the so the going our the averse typically project to energy you product that chillers larger. this with overall their chiller much in have savings as we cost electrical not some cases, the of customer, the electrical just up time, there's end chiller typically side with range, a typically, required as customer Daikins, we is are at against is whereas But because real chiller find of reduce expense. large system will direct you

electrical size in various being cogeneration, various up size of So space, that such direct ranges. small very at CEA.With the that have At range. you regards as especially these in some to no markets ends the competitors a, there's competitor

an we So German place range, there In compete couple and that in different we the megawatt. some utility allows a an we range have much inverter-based systems. environment. urban a companies the the from typically operate you're designed have competitors type companies apart able grid integrate that in our market be between much there taken to other where size some because and be where we than X dealing lot have noisier, with to designed of spaces. over operate engine-based And an integrate to is of kilowatts Japanese operate put you There's where of entities induction European size some some with XX tend be to much day which The companies in with in, have other Below you also are technology, shine utility compared those that technology, an easier also of there's that to when XG. systems. A are we these they're and our we systems then X quieter size be competing that lot range, to space. based that that offering. harder were a systems and to these European really advantage typically And much,

a very then [indiscernible] strong of X systems. are larger you they're much, because against do megawatts, So to range, these when European engines.And the although some typically X.X get much you similar X the they're they to And much again, we Caterpillar megawatt GE megawatt with have start advantage size very, the unlikely than into into above to larger equipment, come get competitors unlikely and or we are operating are our projects that in range. and

manufacturing took which So the sort very projects of XXX service they're they're contracts. long why right competitors. a we are basically not competitor direct ours for direct their but equipment. of And time, Aegis, on our now, and reason of that's basically units was around a designing

actually strong we've them. So formed a with partnership very

direct a no competitor. longer they're So

In this they're fact, ally an point. at

So hopefully, that competitive question. your landscape answers

Operator

with Wainwright. Joshi line Sameer question of H.C. is the from Our next coming

Sameer Joshi

on congratulations especially business. the services of side And on progress, the the good

Or quarters? are out second next similar over should services levels you forward into the projecting revenues? at of we look it how seeing the to X Looking X half,

Abinand Rangesh

doing as a but service I I to I similar I'd revenues, some some just than have clients are see the now revenue, think expect because more are quarters of in there where, be we billable as a using we conservative for you're quarter-to-quarter. similar little is right where thing fluctuation to well. going always level mentioned work

use revenue little might between number as a that X for a and is to bit, X.X X So reasonable the but I one fluctuate think services quarters. X.X probably next a to

Sameer Joshi

period quarters? more Over nicely ask you backlog Should XX Is what increasing delivered? or be The sequentially. we it or me backlog this is is let X it also Or way. this X would helpful. That's months? than

Abinand Rangesh

of XX-month there's ship one the to of be all just quarter-to-quarter, in backlog would some as the sequential the to try in I are also say this going as that always improve of I to to catch to trying shooting systems other projects a say in improve up try we We're to, right? would lot to for not margin these need ship range. we things. just improvement do company we shot because revenue

similar these I that to of assuming more where customer on have until we before think as have purchase we're assumption. is were decline. revenue given careful numbers orders waiting are again, sequentially product where had or unreasonable these we going number an product to saw CEA to deposits of some of your although a terms grow try where projects, don't shipping next I of of said, X the as some be of product well. on we about of we're numbers, going to little not terms large we we're And get think quarters, numbers some deposits, numbers. this, I X just dip think course, over I all also are be we careful, of So quarter. similar much similar to pre-dips little on you in the to amount saw we're in I a and model before of And in the also from is revenue projects unreasonable items. product Probably customer we every pretty going the here, expect these a report, the number to your last

Sameer Joshi

receive Understood... mentioned XX%? it is you or from advance on Yes. customers? And the XX% you is what you advances orders. like these Or us, Will remind that

Abinand Rangesh

our website, guideline to that's XX% team. we sales our basically, to look our have standard the So conditions And and usually terms on minimum. down

Sameer Joshi

pipeline this [indiscernible], again, of period know you orders? Okay. how that? products, start the of individual do but potential to expect it. mean air And how delivering I in some What is mentioned from revenues then and that, is And the getting that or what is cooled looking? like size Got you terms I

Abinand Rangesh

These probably So strong water still in when margin. what have expecting cooled now be chillers And at a shipping going of backlog to are product it's strong product it's ship the right build financial run, can in that for our have chiller, point, products. now. backlog we existing I'd The in XXXX. current and the now. now have cooled starting to that a lot our we're larger because all right well just only like a It's to to tested, our everything product is the the we good we we're partially start that marketplace. getting right up that air the short exactly both backlog rather overall we we're testing to continuing improve to I'm on that improve sometime focus decided, numbers of backlog further. an that's have right

X at We are specified, said, or as projects. I least X in

You're probably tell will how looking, projects many through what come period t's actually exactly of hard time. in to

we I we'll start think what soon as a orders just put the say I chiller. look seeing here as releases some would out with regards on cooled is press keep out to this, air

Sameer Joshi

And the there production the Understood. a number energy in Is just Or deployments? just lower ones. has revenue couple like any change been quick seasonally? then of

Abinand Rangesh

some QX XXX,XXX reduces. to summer between so. the have going decline, a regards In QX number what between, and X and point, to right the but seen With expire. winter that things XXXs, difference is primarily But your now see that, it's really had were decline little low the that, the seen month, is or it's to sites of QX primarily just maintenance this XXXs, bit, range, for the At a nothing high down contracts So load like you're overall like going couple some X Typically, that make QX maybe really, seasonality, are to because XXX and that upgrades XXX, thermal because we something seeing major. you're the seasonality. say, and you've of seasonality. or be again months, in do We there in right?

Sameer Joshi

the sales lower last one we higher, selling expect despite costs over quarters? should what The are And X next level just it. then being costs the Got from me. sequentially for again like selling marginally

Abinand Rangesh

manufacturers also would typically I reps, the product because use numbers if be the selling commission built cost just historical selling them into is we hard, includes, for the sell would any cost. through this HVAC

that been the to lower reason are that So people of has is quarter-to-quarter. and does of fluctuate our Part sales buying some cost that reselling. is selling that

just marking we're paying a unit. They're up So not the commission.

closest past the So would average it's I updated as modeling I'll If take to give thing that's at selling guidance. cost, use it for it. and hard, But just that fundamentally regards our with that the the your moment. point, an changes, over probably

Sameer Joshi

congrats on the Good Understood. luck. And progress. all

Operator

Blanton Our from next Management. Clear Asset is Alex the Harbor of question with line

Alexander Blanton

I call. late, I the missed part got on little of first a so the

if presentation, your me controlled very forgive was something backlog. update commercial but that the and I the large rest progress to agriculture is residential. So part ask your is structures? mainly see in happened has the I repetitive, at multifamily What I of And looking environment a

Abinand Rangesh

Sorry, did a you further have question, Alex?

Alexander Blanton

in the there's assume and other anymore. in or some seem of category, the changed don't what? I Yes. hotels focus you've that your to structures be other commercial because like Is backlog that but things much

Abinand Rangesh

Yes.

Let that little a good That's very, me more a very question. you. for unpack

this approach designed of a terms know, we close of we a And decline faster as to product markets in in to cycle. had is, Some recover turnaround the revenue. right, that to had firstly revenue, needed you

wanted And increase doing marketing what and call, environment what we compared to partnerships. areas one focus taking as focused had do controlled channels right, those. we was that that quickly. a ended on other laid CEA of earlier we is we advantage thing out we The moves to very is that I this a other And then the want on relatively felt really through approach market sales very was because to our up big technologies a in

that big pretty with potential sales really a could sales in some had relationships advantage avenues result have that we We and quickly.

of for X sales BioTherm they is BioTherm greenhouses with up Long but we Growth Solutions. those Solutions cannabis, the with So were do facilities primarily and and kind CEA Accelerated focused years. relationships, cannabis for other tomatoes, facilities; before was Growth establishing HVAC... doing cucumbers, doing and one new ended HVAC they been indoor came on solutions Accelerated what has along, one XX designing

Alexander Blanton

What one? is second that

Abinand Rangesh

Solutions. listed press they're Actually, release. Growth Accelerated on last our

you can chiller They them, of they've various plants. control a design see again, Google and lot full name work in the cannabis built solutions. do climate they modular You'll a space, and

on relationships of basically our Tecogen bigger they the integrated we we offering that project. And both felt good sector a that press felt top that, part CEA up favorable they also they of mark of publications we what coverage space. integration. where it in then And with very buy for part equipment, space. to So was started these, some regards into and the the to And marketing that as getting could of handle customers been advertising in be of also basically in broader end we've as

Alexander Blanton

What that? is is coverage, where that press

Abinand Rangesh

Vertical Daily there's a magazine called So then MMJ Daily. Farm and there's also

of targeted a sort them target they of targeted really only vertical newsletter it's controlled cannabis. very So towards more that and environment one is agriculture. farms

on article an did they So us...

Alexander Blanton

is Farm it? that Daily, Vertical

Abinand Rangesh

I correct. can That Yes. is email...

Alexander Blanton

do please Yes, it...

Abinand Rangesh

well. first it email Yes. that that article be advertising start it that we in, realized sense After as I'll magazine to to made in getting you. may

articles a So in on we well there, back and they've done of of that. the started advertising couple subsequent as

CEA rinks, altogether. penetration it, in of partners made of a backlog. standpoint, they we off broad bunch to But going resources in a the are you're So the we We're that such eventually But the and And some was felt the little that markets. cooling take better will They not close. to key just The as better markets much a has the process turn in yet really a into exposure focusing a ice couple that, markets maybe our to that combined are that that a the same projects try in of reason spectrum other longer it that sectors resulted of very see those making and seeing of to into couple it better key on few of well of other still haven't areas how on sales combination to is as there sales. leading to We're with stay a sales market. also focused were because working are happen. industry choice partially but from part approach some in some there into our close sales goes. is take

Alexander Blanton

What good. Vertical second was was very mentioned another sounds then That that Daily Farm you one. you publication and there mentioned,

Abinand Rangesh

Daily. MMJ

Alexander Blanton

MJ daily.

Okay.

Abinand Rangesh

so Ms, MM, X there's MMJ Daily.

Alexander Blanton

MMJ.

much. you Thank Yes. very Okay.

seems focus Would a since revenue effect the we this going you mean of at an acceleration million. having to of in profitability continue? to to point, that's on backlog $XX some you what get that backlog because need your are up and was be get to kind obviously, expect to to Now volume. function I

Abinand Rangesh

service That is correct. right? revenue, the of And result We've it. see a in definitely side an an to as acceleration I think of we are seen going already increase

So has our baseline revenue already gone up.

right our credit a take on what's the with In result more present, tell stay approach in and and to of to some very lucrative pipeline we out because price the also that Same tax year, sequentially our on but improve As function It's I going little of right? better of are service, hard margin will quarter COVID can. all to being going meanwhile, focused margin. it together going where took to trying every So a We're is to of are forward, but focused right? lot as next try I of places we're to be, there now. interest, as because going improve the lot revenue we makes the of especially and with backlog said we going of, also country. take from projects the ourselves last products increases the we're going with in us do a to call, to mean us bit my in is expectation price we're getting what focus do to in the our turn, prices the X suppliers. a into payback customer a lot a lot We've that a raised the improve increases, to can of on profitability.Looking

But made decision credit that. know this the lot thing a So go of core we're typically is with driving in but or people tax directly projects tax driver the advantage cases. take not it's is the think bonus, because I is not have to credit of not, I the a going to just the technology necessarily

of I'm what now, But of the on doing are Just from one right work, that we have approaches lot seeing few time. backlog each we're going at different We're increase. hoping where this a marketing point, step an it we what the seeing things. just a interest. at getting testing segments will do a advantage focusing is what take to it then we're different in and

Alexander Blanton

to a found I sparse. release little wanted I the press say

I would really kind the good the that numbers that not of press if more because had of and you provided the in in release basically detail presentation, progress it just in think the it just update much what's the future. and be about

a just suggestion. that's So

Abinand Rangesh

and a suggestion. Alex, you, that's great Thank

I in think next incorporate we'll it release. press the

Operator

line The Michael Zuk, next from the question a of is private Investor.

Michael Zuk

current fleet? question for to a see to potential an the chiller what our we done the Have upgrades new the have I upgrade fleet an is on chiller. of potential an Where existing market from you have with chiller are existing regard, fleet. we on analysis electric analysis an

Abinand Rangesh

great Yes, we have. question. That's a

X that are places to with look there replacements. regards to we So

great, cooled be fit the you because especially although been some So chillers especially like-for-like existing there's started you target replaced our refrigerant, with prices chillers existing old that T are be first right existing model, chillers With chiller, through refrigerant some the of that the they still still with air-cooled a existing different and has whole a on chiller have of get water it. and identified might R-XX refrigerant, a set had operate chiller. to if definitely the as customer phased of a we bunch been pipeline. chiller. I that We can have great been past a gone water-cooled older have the are out, get great to those a our replacements regards our to them. potential talk to has that in we potential have happy that They higher, mean, the of can R-XX now operating an because have have

through we a rather give whether chillers guidance space have replacement. of In in them that to I see interest terms of have numbers, numbers and they'd any be exact right started identified definitely in to of But those those now. lot not put an lot or would just talking a customers gone

part So marketing. the that's that for space definitely using we're of

Michael Zuk

replace then with new as a a credit does the an you follow-up, And tax when old apply? chiller chiller,

Abinand Rangesh

does does. It apply. It

Michael Zuk

efforts talk the I New What geography. for know about Boston But Northeast from growth our much doing are corridor Florida efforts in because some small in City the expand a pretty and also Florida. natural Jersey. basically we be market centered to to would let's New geography seems Northern company. then is in that we York that our have And Florida it

Abinand Rangesh

equipment Florida some a So great on again, actually this have a of that actually new there's are built of this, specified that bunch in there. backlog our a or sold we projects it's question. Florida. have There's designed little we What doing, of so in are is bit being in that

eventually, a get of might be that increase the their see Florida a many fleet there. a And of units can we a lot going to number in see to service also there to trying we also of support we're in can then so over then showcase and over further put we'll for of the Florida. forge and And projects presence partnership expand if can to gas the companies to type to customers. in them we our there way as lot talking Florida if them gas incentivize are to smaller chillers We

So the We're is where particular, be going built. be definitely of to cannabis other area. licensed facilities an to and where at country, looking are going it's parts also in

be country states going necessarily is cannabis other there'll where but legalized. be the in Florida, they not may in So to be

Michael Zuk

cost how a marketing of issue electricity local of do From it versus electric gas? standpoint, where rank where important by opportunity? a Is marketing the what should units going over we most cost to is authorities. standpoint the of cost forward? conversion be the mandated it our I mean a effort alternative from units is to sales regulatory Is factor

Abinand Rangesh

everything. pure So because gone some are and approaching through or rather than resiliency way team necessarily primarily market much of the even sales at range our drivers at whole utility you traditionally the savings. identify drivers especially what economic places been of driver. least of it as sales York, having rates by like from very there's to or the look were, the And a a bit Boston, resiliency New economic where segment drivers It's existing where I have to is

are cogen to that our all But New drivers, units mean those projects use going sell continue what likely men. byproduct York, it's of looking So where of all aren't areas is we slightly especially doesn't segments can becoming customers it's those from market into a still to anti-gas. units. mean of are happening. really more of at the be Some we I bit right? pickup

and hot those the and those environment is customer tend all to cooling, to So hospitals, money. the water be water, pretty the electricity like chilled either utility cases, if much controlled hot where process all in water, whatever going And save agriculture, the rinks. things rate ice

it just are necessarily that resiliency all segment, in different customers. So or those play the for think areas effect economics I by of market factors of pure because different not those each ways of approaching either into by we're the drivers really

Michael Zuk

website that country. that the a many the And available you because resiliency outages have of we on systems rolling parts final now discusses becoming our I systems Do competitive opportunities then white in know paper of a is question. resiliency have a issue when versus critical our

Abinand Rangesh

written papers. sure not has because on am our most maybe to going have I Bob I'm of that. Bob white

Robert Panora

I ones, to but specifically if have the some think that issue... of on to specifically trying one not that. existing on I'm It Yes. touches that

Michael Zuk

great one benefits on wrote recently... environmental the You a

Robert Panora

the financial I about but drivers, I I economic is about our And wrote the on was of specifically Yes. one the don't mostly have part products. of benefit resiliency it think But it, resiliency.

Michael Zuk

Well, the with Bob, I'll today. on resiliency minds time, a in because of think people's you your I it's lot give commentary a spare come challenge, let's up

Robert Panora

Yes.

Abinand Rangesh

actually design can of whole you part good And side forth chiller the air-cooled Yes. because fit gas back that's an point. go run a chiller with can well No, that is the Where it side. will during and between it's electrical approach and the is outage. that that,

to way thanks to be you. hear that from comment, introduce Mike. for a Anyway, Good it. the So might

Michael Zuk

on just going your increases track a game that comment plan it looks solid to like want like a on of I I incremental And basis. quarterly forward. we're And

If up flourish. a you of keep quarters, real I series that good over to can finally the with deliver work. And think the has potential company that,

Operator

we've call closing for At the the Abinand Rangesh question-and-answer the of I'll And turn remarks. over this session. time, reached to end

Abinand Rangesh

time today. you, further me. if are Thank there to questions, feel free for any your And everyone, e-mail

that or contact my the it's the any press questions have at much. else happy You release I'm and information answer comes you also further as up. Thank very anything bottom of to

Operator

today's conference. will conclude This

time may off participation. webcast, we disconnect this for and the at thank your log You your you lines and

Tecogen (TGEN) 10 Aug 232023 Q2 Earnings call transcript