BHTG - Earnings call transcript Q1 2019 | Renovare Environmental, Inc.

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Operator

Greetings and welcome to BioHiTech Global First Quarter 2019 Financial Results Conference Call. 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. I would now like to turn the conference over to your host. Galterio. Rich

Rich Galterio

and quarter Welcome call. XXXX operator BioHiTech to afternoon first Global financial good you again listeners. the Thank results conference

Frank addition brief and us our with like the to Brian Financial our more through detailed to quarter to as Frank by would call our discussion In Celli, providing Essman from business off E. and in a results a the strategies then Officer. by overview today followed over the I Chief an of Essman, Brian our are to Officer CEO provide start growth XXXX. our of turn we'll overview of remainder our of Chief move Executive myself we progress

XX.X% and our Gold margin compared and In improving the revenue. revenue, revenue from to growth services XX.X% our contribution increase saw XXXX that in contract and waste During achieved digester led we quarter digester Medal management metrics the QX, of our XX.X% number under in food revenue we business. of units rental business by overall growth

number revenue of less the XX.X% Digesters. up Revolution modestly, reflecting under our units While QX Series increased digester market contract was acceptance of expensive by

discuss pipeline accelerate and growth our a in this with to expand in leasing to that larger management call. multi-unit later services will customers the waste national continue We recent distribution with in confident strengthen plan our opportunities capabilities distribution with our of our agreement company. Frank We're business

Ford's driver growth featured came in management at Gold to Philadelphia being of Financial article services Home media XXXX Our by Field, the waste sustainable attention with also food Lincoln in [ph]. our of installed is Medal. get from solution largest starting Eagles to revenue The an The

quarter offers and second we've almost this stream As and most several previously will in the a second rapidly grow in incremental provides this our the help quarter revenue half beginning of technology revenue significant to no cost. with milestones relationship that achieve us XXXX. many synergistic We for business opportunities significantly stated

HEBioT half second municipal facility we will operations and of year year high The Virginia $X in of each First, more Martinsburg the tons as will pronounced contribute March on in the commence XX, that anticipate in the ramping began solid commercial XXX,XXX by that generate waste of West quarter facility much revenue to expected year. up second Martinsburg, We in waste revenue margin to while landfills. million at from meaningful XX% processing is located of nation's as the become diverting each the XXXX. April operations facility

technology you probably recognized aware, As HEBioT were our solid recover produces an EPA fuel.

an southern Rensselaer's we a permit City is of approval to for approval application the Second; industrial in for second State Rensselaer. York facility high million we've $XX facility received margin revenue approximately generate from of the of planned the submitted annually and HEBioT expected area. New the City from The final for already facility of local

this continue target of We completing facility XXXX. construction in late to

to is a as data landfills A Digester. order this of company Sapling of of market patent technology. our per Essman, day each capable idea addition technology each waste its XXX base. this much Sapling to chain's launch the capacity food line million I our reduction series multi-unit grocery elimination of to first food from waste year. result an results. impact to of a Third; from chain grocery this the emissions of XX diverting a received landfills Sapling XXX analytics equivalent in Financial national Each a installed And agreement six revolution be XXX The recently of locations BioHiTech's COX our fourth, waste Officer management positive with of year. from The in would larger of digester. pounds time, new units we diverting to We transportation digester the to the of distribution capable customer locations. Digester over our our development pounds we waste to X the this the as Chief discuss by of Sapling expensive at line food completed services environmental are of waste of you over for the and from At with Brian call up gives tons financial to trucks which like road removing to would turn signed

Brian Essman

as Rich Total grew to Year-over-year driven revenue total $XXX,XXX by services in comparable of XXXX. you from recurring compared with our well afternoon quarter period. by $XXX,XXX XX.X% XXXX $XXX,XXX buy in Gold in the compared and a and the our was management data digester Thank platform increased $XXX,XXX revenue XXXX as that everyone. revenues revenue $XXX,XXX XX.X% of XXXX XX.X% in totaled to good increase in by from analytics to QX, Medal rental to first which growth

our with management by under focused in on with of first efforts first earlier, marketing to XXX XXX Still new mentioned number waste the opportunities cycles compared partnerships Rich much quarter distribution providers. the of lease sales to XX.X% the multi-unit units establishing As we quarter grew and units XXXX. services larger longer during digesters of

of results expect more has XXXX. the unit we evident half multiple of substantially in pipeline opportunities the to second these growth of become see Our efforts and

We digester from less units generating Digester. and with Revolution with our associated benefit the Series in improving metrics our great of declining a of business cost revenue maintenance expenses leasing revenue field also we from base achieved as

stated yearend to In fact, XX.X% XX.X% we target to improved and XX% margins to our compared call. exceeded our in of XX%

in We there from expenses internationally quarter, million common. sales unit team. $XXX,XXX reseller certain do in quarter in primarily expect for $X this of continue and were sales. in a the X.X% staff we XXXX. $XX,XXX result That by Martinsburg, direct we of other of associated where operations. HEBioT in the XXXX. the by Selling, and markets $XXX,XXX included administrative staff [indiscernible] to has cost de-emphasis some increase was site the by start-up quarter-over-quarter in this incremental not decreased deemphasise at Well as Personnel offset through an stock of existing marketed increased are models payroll increased late $XXX,XXX services $X.X mainly sales first management our compensation $XXX,XXX with reduction by including or million cost the XXXX XX.X% of future grants and quarter number due result increases second HEBioT related MBT increased expenses the non-cash first by increased XXXX. cost in our half Gold not salaries compared by leveraging of Operating write-down made the in Base made expenses facility. Medal of resulted general expenses no or decrease of leasing and our expense to XX.X% payroll a expenses and of the to to Revenue

to million of operations quarters Our from by of XXXX contribution XXXX increased the in partially expenses the increased operating in $X.X $X.X million operating $XXX,XXX in margin the first period. comparable a in increase is increase result offset The loss from loss dollars.

balance of through the quarter our of XXXX. with unrestricted we XXXX. XX, Now December sheet, cash ended of unrestricted over growth strategy compared of move turn XXXX $XX $X.X $X.X million will equity I with to shareholders' cash million million discuss of our to equity shareholders' with now as the as call to $X.X million to first of we Frank

Frank Celli

with first XXXX, the just technology surface our the the to the year, you tremendous Thank This of our significant past waste of In we're us up [indiscernible]. platform of financial for that potential while acquisition Medal, Gold Brian. beginning our the sustainable facility scratch quarter HEBioT Martinsburg, for laid industry. through our and future foundation of partnerships technology we controlling strengthened growth Kinderhook in our set interest partner we

HEBioT very about Martinsburg. it all first at area the of and execution and operations the plan. The our first effect opening important quarter in nation's stakeholders the what We lays of hard employees cost commenced in waste. full and When that management the cornerstone mode effective municipal commencing waste is positive our all work of to scale of industry facility at change of of most end operations comes our we when can the in we're progressing through and facility swinging is very future far. growth plan Now the stockholders. ramping opened of developed of quickly this belief basis represents the talk BioHiTech Since ahead on first stage our and progress about It we've pleased excited commercially, daily the accomplishment plants operations and this thus execution we're we're our including each mechanisms. to large is a we in the received the for lease

that Based ramp economic to expected at in even As our foot does you in be as can imagine, square XX,XXX in of on first we're than and a expected of has well. leading month progressive confident each operated plant running or time this better half receiving as tons half in stage some we're the to per the fill benefit take year facility we'll processing some operations cases new of full planned over XXX it a day thereafter. and second the as revenue operations,

In officials The we the Martinsburg showcase addition a to our commencing ability and plant very driving high potentially to from margin landfills operations revenue be can function waste members waste large XX% the the how of mentioned company. of divert the for industry, important also serves We've the numerous states. from a of municipal several corporations tours to in times problem plastics growing US. part conducting the the and solution about facility, of

begun While number critical with believe facility we've creating as building their already business this thing for waste our technologies a business. for discussions use regarding of awareness disposal and to to to solution relationships potentially a a roadmap that needs. a it's like including seeking may have It's several seem in municipalities we small and success

that XX% a accelerating than business, been and margin significant first contracts this in believe we importantly progress that building our additional which base year I making executing grows the the with with of time in in quarters. future progress and are completing into excited progress locations layering a sign location on number to We're The far the East second we North about and the call. solid major facility with last to revenue growth and a that grow predictable, permitting to on additional modest business prove our will can in facilities finished discussed on making and we're in lead plan including has In where emphasize growth we've business. and quarter to while of look forward believe are, we time that target part stream at lease value HEBioT that Rensselaer the our discussion to We're we're late process is of believe this our on every for we and discussing updating XXXX. facilities coming year. more We've also revenue greater Digester want unit that potential was strategic

we First partners. by relationships year, quarter our with as last stated relationships traditional waste distribution focused industry larger efforts the the opportunities either we of through multi-unit majority sales of or in third on direct establishing

While grow cycles to sales where we longer these and we our are improved to pipeline headed. about we're excited continues be anticipated than

first with a door the nationwide we agreement our grow of at installed significantly companies for installed unit and a expect to scale add services the provider We've into During opportunities first our further other Farmers units. distribution interesting health opportunities. We're is we're than network services expand large this to and very network. as That we looking some success major potentially year. units to opening multi-unit units quarter, Market store to distributors like some large more XX announced in our their waste relationship already multiple companies that Sprouts hopeful dozen can have

that high to XXX our performance. is plumbing not electrical volume special announced or BioHiTech new also the speaking with seven In a included unit example does grocer or require unit generators. to [indiscernible] six larger that completed development Digesters. of regional hook Sapling bolt-on we ups. We needs The the product food our order of similar and a Sapling design capacity better also Sapling Digester our products meet for of We've another customer a it's about achieve new another recently Eco-Safe how

race continues venues in opportunities earnest this our media problem hubs. travel and penetration awareness in the are starting for solutions hospitality into with a of gain country. Our sporting technologies to growing in hotels, the market expansion Both

in helping [indiscernible] responsible get lead Bloomberg and change and to Our industry. are environmentally cause out word the this our

in led is to we've I $X.XX Before pleased $X May the Series of The million I'm total what a and we announce close the several price questions, company. us continue sheer Once to our will D like for build again, convertible million of your financing call future. building now This financing for and XX, Series a open financing $X.XX investment growth is portion prepared our dedicated concludes value balance the thank demonstrates to the Preferred in on we'd near This employees on plans and stockholders. investors fixed for that our belief our their entrusting on in company our this help turn a remarks investors The in dollars their of expect our the you and here. value call Operator, the closed to offering and questions. the share. to we management over can to D efforts. by long-time

Operator

first the question. of your proceed with line with Walter our comes Ardor from Instructions] Capital. [Operator question Nasdeo Please

Walter Nasdeo

the all and moving you're progress. fronts forward on Obviously impressed we're and with here [indiscernible]

level recycling how plastics to Are municipalities high I things renewable, there the appeal the you any able have general come solid ask but kind to that of like it. to on things of aspect just and kind in that coming. recyclables from of business a the development more pull of of a instead in to front? of development aspect of more about One a bit the like is like of is, municipal to the the wanted and like that with a Is waste, more for little

Frank Celli

this, for fuel, not recyclables many opportunity Interesting necessarily States feedstock aware, right something significant now pretty huge for problem we quality higher developed United emphasis as not solid the recycling When the the for cases recycling Walter. both at for in quite is solving question. we a products, which high The stream in the if high frankly now looking for wasn't as anticipated a really paying on that, paper another unique initially significant that were not is are additional you're certainly recycling solid in nobody this crisis that it is exponentially and But particular alternative and as it's we recycling the States. probably frankly, they as it's for volume with we our assuming [indiscernible] you're would of so we permitting really coming where some about kind potentially I'm of probably driver question, faster. industry like with about recyclables recycling solution for ago of plastics the thinking the waste, their coming. a yield and Municipalities saw we well there's year countries created in sense online, think than rebated ban India of significant issue that problem. has is a forward are and prices China's where plastics high Vietnam United getting where quite certainly areas as waste, in The thing us in the it's however can municipal go process if be around handling

folks has into park recyclables so process we there's of be So social for and municipal that would of solid believe and turned otherwise there's sort we recyclable a take envision we're problem for doubt waste, place. opportunity we technology to element able an I be education still to quicker But a definitely think huge evaluating than but this it, for of an to also as see being for bit we there's we it can opportunity deploy us. benches projects development some little additional think what that solution do no where

Walter Nasdeo

to clear, could be business handle right it be to need be Just go waste would the your into modified currently current or your to to technology [indiscernible]. able prospects

Frank Celli

plastics. is, fact got handling significantly be is what we extensive we've and plastics more just in our specifically deployed would if could handle technology technology. than matter you certainly with needed were The No, the existing the Martinsburg

Martinsburg are plant but be is plastics there products. the paper other opportunities solution quicker in costly less plastics development a just and probably for receiving were would we today to that if and So deploy,

Rich Galterio

than work today, so capable it Walter into sometimes getting trash I occasional wrappers plastic and if at, and day build it mean plastic on waste it add is facility that, that does still. Rich, what their into there's today now open it's today Frank's The towards looking people we're really does it so handling solution specifically to this more and gear make and want whether things we plastic municipal and handle I towards is the to like or would cups Martinsburg every so is of way it there's that. the just plastic do of mixed recycle there think it's a plastic, could we to is that. lot facilities a be facility don't solid strictly that

solution be it potentially handle So part moving could and plastics of a forward. now it does right

Walter Nasdeo

one handle When gathering, that that you to could to separate, municipalities they the cost with this? you the expenses typically to trash, the do one to waste their Is would municipalities look delivering and recyclables recycling local of market internal into along they the to would just reduce have of dramatically that, municipal container cap everything to the you guys. solid have operating at it that manage something reduce solution type that assume

Rich Galterio

Yes things those on some recyclables, With that's going of China of not countries out point. great India it. the that's and all of a moving with taking

ultimate every recovered starting as lot of is internet ocean because ending and in day where and places a recycling up it process ends to that, by those [indiscernible]. that methane, to that ending a outcomes with think significantly on opposed didn't read a sent plastic make be separately less as going our single ultimately now it pick all will from a and the other went the chemicals greenhouse solid through you the they fuel and up with emission, stream case can the up I in and if our can bad to effort of COX you papers facility directly less the reduced up

Walter Nasdeo

much. I'll the very appreciate back you answers the queue. in Thank I get guys.

Operator

your Our next with X from Financial. Vincent Please the question comes LaBarbara with Network proceed line of question.

Vincent LaBarbara

Frank. Hi,

following the come And [technical it's from very pretty far what and start excited for demand process how who's the producing type exciting someone been the you difficulty]? As [indiscernible] the fuel? future. Have started you've the it of makes to see me the

Frank Celli

this started the fuel of our have first we loads in We fuel, earlier fact. Yes producing manufactured week.

excited review is sent initially for So inspection visual that, testing whatnot we the pretty high the about of that, fuel it is based sort quality. on out we're really

got, sort of States, yield we're United in meet tell we the we about general “hey, of testing excited The waiting we're not?” of to come surprised amount to we're pretty do it. on excited back pretty for but in is growing, we're based us, criteria the the the alternative fuels about waste technical or enormously. packaging fuel that So demand on still not in

tell there's we than great have, have catalyst could development next users fuel we can from of think projects. which this I of us sort our possibly a into now - you supply good So for right demand problem what is that to it's I more

in So carbon emission and under the users as standards coal of are their United continued footprint. lowering the States the as scrutiny far

demand be the will demand in So right alternative high value Baltimore got the not seeing all experts Martinsburg for shrinking. market got Pennsylvania We've the demand are now fuels we've around facility. [ph] and at

to development support it's have good project. a of our So future thing in

able on we pricing we positive effect fuel So only can sell we think all but will the as - well. that a there we pretty be think should manufacture, not to

Vincent LaBarbara

really forward execution. looking future Frank. you your I'm Thank of Great.

Frank Celli

Thank you.

Operator

I'd to further to call remarks. the like have We this questions turn queue no Frank at back for time closing and Celli in the

Frank Celli

of to again company the Thank continuing the for again like you Thank once next Thanks today. and everyone to speaking we you. joining very for you forward and progress hearing look to much. quarter. Well monitor with I'd thank

Operator

conference. today's concludes This

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

Renovare Environmental (RENO) 15 May 192019 Q1 Earnings call transcript