Tecogen Inc. (PNK:TGEN) Q4 2023 Earnings Call Transcript

Tecogen Inc. (PNK:TGEN) Q4 2023 Earnings Call Transcript March 14, 2024

Tecogen Inc. beats earnings expectations. Reported EPS is $-0.02, expectations were $-0.04. TGEN isn't one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).

Operator: Greetings. Welcome to the Tecogen Year-End 2023 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] Please note that this conference is being recorded. I'll now turn the conference over to Jack Whiting, General Counsel and Secretary. Thank you. You may begin.

Jack Whiting: Good morning. This is Jack Whiting, General Counsel and Secretary of Tecogen. This call is being recorded and will be archived on our website at tecogen.com. The press release regarding our fourth quarter and year-end 2023 earnings and presentation provided this morning are available in the Investors section of our website. I would like to direct your attention to our Safe Harbor statement included in our earnings press release and presentation. Various remarks that we may make about the Company's expectations, plans, and prospects constitute forward-looking statements for purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by forward-looking statements as a result of various factors, including those discussed in the Company's most recent annual and quarterly reports on Forms 10-K and 10-Q under the caption Risk Factors filed with the Securities and Exchange Commission and available in the Investors section of our website under the heading SEC Filings.

While we may elect to update forward-looking statements, we specifically disclaim any obligation to do so. So you should not rely on any forward-looking statements as representing our views as of any future date. During this call, we will refer to certain financial measures not prepared in accordance with Generally Accepted Accounting Principles or GAAP. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures is provided in the press release regarding our fourth quarter and year-end 2023 earnings and on our website. I'll now turn the call over to Abinand Rangesh, Tecogen's CEO, who will provide an overview of the fourth quarter and year-end 2023 activity and results; and Roger Deschenes, Tecogen's CAO, who will provide additional information regarding fourth quarter and year-end financial results.

A man in overalls soldering a large water heater inside a manufacturing facility.

Abinand Rangesh: Thank you, Jack. Welcome to Tecogen's fiscal year 2023 earnings call. I'd like to start by giving investors an update on changes to the business landscape and market, what has worked with our strategy and what we need to do differently to reach profitability. As we've mentioned before, we need to move factory at the end of Q1 and early Q2. I will also talk briefly about this and how this will affect operations. Roger will then take us through the financial numbers, and then I will wrap up with our 2024 plan. As many of our long-term shareholders know, one of the predominant markets has been large multifamily residential buildings in New York City. These projects typically have one or two-unit cogeneration systems per building.

We are facing significant headwinds in this market. We have seen multiple projects canceled after contractor selection over the last six months. However, we also have a big opportunity ahead of us that can give us significant tailwind. Increased electrification efforts, data centers consuming exponentially more power and aging utility infrastructure leading to electrical capacity constraints nationwide. It is limiting customers' ability to expand the time of day charges are becoming punitive, and there are only a few options that allow customers to address the problem. As a result, we are seeing more multiple unit cogeneration and chiller projects than ever before. In the case of our chillers, the customer completely avoids the need to connect to the utility grid.

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