Tecogen Inc (OTCMKTS:TGEN) Stock Jumps On New Order for Three Tecochill Chillers
Tecogen Inc (OTCMKTS:TGEN) is engaged in designing, manufacturing, installing, and maintaining high-efficiency cogeneration products. These include air conditioning systems, heat, and power systems as well as high-efficiency water heaters for commercial, residential, and industrial applications. The firm’s cost-efficient, environmentally friendly, and reliable products for energy production removes pollutants and lowers the carbon footprint.
Market Stats
On Thursday, TGEN stock gained 935% to $1.20 with 7.5K shares, compared to its average volume of 2.3K shares. The stock moved within a range of $1.1100 – 1.2000 after opening trading at $1.17.
Tecogen Receives Order for Three Tecochill Chillers for Connecticut High School
Tecogen had announced on May 12 an order for three400-ton Tecochill chiller systems by a municipality in Connecticut. These chillers will give seasonal cooling at a high school in southwestern Connecticut with free hot water used for dehumidification. The chillers, with 1200 tons capacity will replace different manufacturers’ aging as well as inefficient absorption chiller system. It will also lower emissions by over 1,100 tons per year.
Buying of the chillers includes a year of maintenance and service. It is anticipated that the municipality will enter into long-term service as well as a maintenance agreement for three chillers. The company has provided maintenance services for two decades from its Connecticut service center.
Benjamin Locke, CEO of Tecogen said that though GHG reductions expected from switching to Tecochill chillers were compelling, it was the cost savings that drove the sale to the municipality. Locke added that the electric rates in southwest Connecticut are the highest in the country. Making the solution a cost-effective energy-saving measure.
Clover Corporation facilitated the sale and is Tecogen’smanufacturer’s representative in the county for more than two decades.
Key Quote
“While the greenhouse gas reductions anticipated from switching to the Tecochill chillers were very compelling, it was the substantial cost savings that drove the sale to this municipality,” noted Benjamin Locke, CEO of Tecogen. “Electric rates in southwestern Connecticut are among the highest in the country, making the Tecochill solution a very cost-effective energy-saving measure.”
Earnings Update
Tecogen had reported revenues of $7.4 million and a net income of $89 thousand for the quarter ending March 31, 2022. This was much higher as compared to revenues of $6.1 million, higher by $1.4 million. The company had a net profit of $1.8 million in 2021, lower by $1.7 million.
The robust net income was due to the benefit ofCARES Act payroll support programs. The firm generated $1.9 million in cash from operations during the quarter and ended the quarter with a cash balance of $5.5 million.
Tecogen’s net income in quarter one of 2022 was $89 thousand vis-à-vis $1.8 million in the first quarter of 2021, lower by $1.7 million. This was due to the forgiveness of the PPP loan in Q1 2021. The income from operations for three months ending March 31, 2022, was $81 thousand as compared to a loss of $139 thousand in the previous year. This means there was an increase of $220 thousand. The augmented revenues combined with lower operating costs lead to positive income from operations.
The firm’s revenues for the quarter ending March 2022 were$7.4 million vis-à-vis $6.1 million for the same period in 2021. Product revenue was $3.9 million as compared to $2.1 million, a surge of 85.6%, due to higher cogeneration and chiller unit volume. The company is looking at sales in key market segments including controlled environment agriculture.
Traders Corner
TGEN stock is trading below the 20-Day and 50-Day Moving averages of $1.25 and $1.35 respectively. Moreover, the stock is trading below the 200-Day moving average of $1.45.
