CHESTNUT RIDGE, N.Y.,
Aug. 9, 2021 /PRNewswire/
-- BioHiTech Global, Inc. ("BioHiTech" or the "Company")
(NASDAQ: BHTG), a sustainable technology and services company,
today announces financial results for its fiscal second quarter
ending June 30, 2021.
Q2 2021 Financial Highlights
- The Company continued its revenue growth in the quarter ended
June 30, 2021, with total revenues of
$3.5 million increasing 14% over the
first quarter of 2021, 38% over the fourth quarter of 2020 and 171%
over the comparative second quarter of 2020. Total revenues of
$3.5 million mark the third
consecutive quarter of record revenue since the Company went public
in 2015.
- Second quarter 2021 Digester and Corporate line of business
revenues increased by over 700% from $381,000 to $3,078,000 versus Q2 2020, driven by Carnival
Cruise Lines equipment sales.
Corporate Highlights Q2 2021
- May 2021 - BioHiTech received
additional purchase orders totaling approximately $2.3 million for the Company's Revolution Series™
Digesters for 16 additional ships from Carnival Corporation.
- May 2021 - West Virginia signed Senate Bill 368 into law,
effectively eliminating solid waste assessment fees for mixed waste
processing and resource recovery facilities, such as BioHiTech's
Martinsburg, WV HEBioT Plant,
helping to make renewable energy a more attractive investment and
making the development of renewable facilities economically
viable.
- June 2021 - BioHiTech entered
into a project management services agreement with Lone Cypress
Energy Services to evaluate and develop new High-Efficiency
Biological Treatment projects. The two companies are exploring
additional uses of Solid Recovered Fuel as well as other potential
fuels that could be developed.
Tony Fuller, BioHiTech's CEO
commented: "Our second quarter 2021 performance demonstrates
consistent execution across both our complementary waste technology
solutions. Revenue of $3.5 million
represents our third straight quarter of record revenue since we
went public in 2015. This growth was largely driven by digester
purchases by Carnival Corporation as we continue to fulfil orders
across the expanse of the Carnival brands.
"Our complementary waste technology solutions are but two of many,
both deployed and those yet to be developed or deployed, in the
broad spectrum of solutions. Our
vision is to drive sustainability and lead improved environmental
outcomes, reduce carbon emissions, reduce landfill usage, and
create alternative fuels from that which had been destined for a
landfill. Action and deep commitment are needed to reverse damaging
impacts of climate change. We are
more driven than ever to provide real-world solutions that make
immediate impacts.
"The continued expansion of our relationship with Carnival
Corporation is encouraging as we support their commitment to drive
sustainability through environmentally friendly food waste
disposal. Moreover, our digester data analytics platform provides
real-time waste transparency which promote changes in supply chain
management, purchasing, handling, and food preparation, reducing
food waste at its source. We are actively engaged in opportunities
across not only the maritime sector but also retail, healthcare,
government, hospitality, food service, and others, which we hope to
convert into new client wins in the coming quarters.
"We are keenly focused on driving client utilization of our
EPA-recognized Solid Recovered Fuel (SRF) which we produce at our
Martinsburg, WV HEBioT plant. This
facility is capable of processing 110,000 tons of municipal solid
waste annually while producing 50,000 – 60,000 tons of SRF for use
by cement manufacturers and others as a replacement for coal. We
have improved plant operations throughout the quarter as our
investment in solving past inefficiencies and curing mechanical and
operational issues sets the stage for reliability in process and
consistency in production. Maintenance and repairs shutdowns at our
SRF customer led to weaker than anticipated performance. Those
issues have been largely resolved, and we expect more consistent
production, delivery, and sales growth in the coming quarters.
"With the passage of West
Virginia's Senate Bill 368 into law in May 2021, the state effectively eliminated solid
waste assessment fees for mixed waste processing and resource
recovery facilities such as ours in Martinsburg, WV. This is most promising for
our expansion plans into additional communities within the state.
We expect this to drive positive and near-term environmental impact
through landfill diversion, transportation, and fuel conservation.
This bodes well for BioHiTech and our stakeholders as we forge
ahead to make renewable energy the norm and leverage the
opportunities offered by the state's actions to make the
development of additional renewable
facilities economically more
attractive.
"To those ends, in June, we entered into a project management
services agreement with Lone Cypress Energy Services, a firm
specializing in the development of waste-to-energy solutions.
Together we are evaluating and developing new plans for HEBioT
projects. We are also exploring additional uses of our SRF. This
includes additional projects in connection with hydrogen and other
renewable technologies including the use of our feedstock for
gasification and bioplastics.
"In summary, we are executing on our growth plans, our corporate
objectives and our overarching goals of 2021. We continue to drive
record revenue. We are smartly leveraging our expense structure. We
have significantly improved plant operations. We have engaged with
and learned from our shareholders as we have shared our story. And
we have strengthened our team and executed at record levels. As
always, I look forward to elaborating more on our progress in our
earnings conference call later this afternoon and throughout the
quarter," concluded Mr. Fuller.
Financial Results for the Quarter ended June 30, 2021
The Company continued its revenue growth in the quarter ended
June 30, 2021, with total revenues of
$3.5 million increasing 14% over the
first quarter of 2021, 38% over the fourth quarter of 2020 and 171%
over the comparative second quarter of 2020. Total revenues of
$3.5 million mark the third
consecutive new quarterly high since the Company went public in
2015. During the second quarter of 2021, all of the business lines
reported revenue growth over the first quarter of 2021.
The overall contribution (revenues, less direct costs) increased
to 14% of revenue in the second quarter of 2021, as compared to 8%
in the comparative second quarter of 2020, however decreased from
29% in the first quarter of 2021 primarily driven by supply chain
pressures and an increase in stainless steel prices in equipment
sales.
Selling, general and administrative expenses as a percentage of
revenues increased to 58% in the second quarter of 2021, as
compared to 54% in the first quarter of 2021 and decreased as
compared to 149% in the comparative second quarter of 2020. The
increase in the second quarter was the result of a decrease of
$190,000 in the Digester and
Corporate line offset by an increase of $305,264 in the HEBioT line.
The loss from operations as a percentage of revenue decreased to
59% in in the second quarter of 2021, as compared to 186% in the
comparative second quarter of 2020, and decreased from 42% in the
first quarter of 2021.
The Company continues to achieve growth in the Digester and
Corporate line of business that has been driven by sales to
Carnival Corporation such that the second quarter revenues
increased in the second quarter of 2021 by 15% to $3.1 million as compared to the first quarter
revenues of $2.7 million.
The revenues of the HEBioT line have continued to be hampered by
maintenance and repairs shutdowns at its SRF customer resulting in
a 7% increase in revenues to $377,000
during the second quarter of 2021 as compared to the first quarter
of 2021. As compared to the second quarter of 2020, the second
quarter of 2021 Digester and Corporate line of business revenues
increased by over 700% from $381,000
to $3.1 million driven by Carnival
Corporation equipment sales, while the HEBioT line decreased by 58%
from $893,000 to $377,000 due to the continuing maintenance and
repairs shutdowns at its SRF customer, as well as by an adjustment
in 2020 relating to a take-or-pay provision in the SRF customer's
contract.
For the three months ended June 30,
2021, the Company had a consolidated loss attributable to
the parent of $2.4 million, a consolidated net loss of
$3.1 million and incurred a
consolidated loss from operations of $2.0
million and for the six months ended June 30, 2021 used net cash in consolidated
operating activities of $4.2
million.
At June 30, 2021, unrestricted
cash was $2.3 million.
Conference Call to be held Monday,
August 9, 2021, at 4:30 PM
ET
Mr. Tony Fuller, Chief Executive Officer of BioHiTech, will
host a conference call on Monday, August 9,
2021, at 4:30 p.m. EDT to discuss the Company's
financial results for the second quarter ended June 30,
2021. Also joining Mr. Fuller on the call from management
will be Brian Essman, Chief Financial Officer. Following
management's formal remarks, there will be a live
question-and-answer session.
Participants are asked to pre-register for the call via the
following link:
https://dpregister.com/sreg/10159374/ec2df07762
Please note that registered participants will receive their
dial-in number upon registration and will dial directly into the
call without delay. Those without Internet access or who are
unable to pre-register may dial in by calling 1-866-652-5200
(domestic) or 1-412-317-6060 (international). All callers
should dial in approximately 10 minutes prior to the scheduled
start time and ask to be joined into the BioHiTech Global call.
The conference call will be available through a live webcast
found here.
It will also be broadcast live through the Company's website
with the following link:
http://investors.biohitechglobal.com/events-and-webcasts
A webcast replay of the call will be available approximately one
hour after the end of the call through November 9, 2021. The webcast replay can be
accessed through the above links or by calling 1-877-344-7529
(domestic) or 1-412-317-0088 (international) and using access code
10159374. A telephonic replay of the call will be available through
August 23, 2021.
About BioHiTech Global
BioHiTech Global, Inc. (NASDAQ: BHTG), is a technology services
company focused on providing cost-effective solutions that improve
environmental outcomes. Our technologies for waste management
include the patented processing of municipal solid waste into a
valuable renewable fuel, biological disposal of food waste on-site,
and proprietary real-time data analytics tools to reduce food waste
generation. When used individually or in combination, our solutions
lower the carbon footprint associated with waste transportation and
can reduce or virtually eliminate landfill usage. Our unique
solutions enable businesses and municipalities of all sizes to
solve everyday problems in a smarter and more cost-effective way
while reducing their impact on the environment. For more
information, please visit www.biohitech.com.
Forward Looking Statements
Statements in this document contain certain forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934, as
amended. These statements, including statements about the estimated
future results, contract value, additional purchase orders or
deliveries, and the ability of the Company's products to improve
environmental outcomes and achieve corporate sustainability goals,
are based on many assumptions and estimates and are not guarantees
of future performance. These statements may involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of BioHiTech Global,
Inc. to be materially different from future results, performance or
achievements expressed or implied by such forward-looking
statements. BioHiTech Global, Inc. assumes no obligation to
publicly update or revise these forward-looking statements for any
reason, or to update the reasons actual results could differ
materially from those anticipated in these forward-looking
statements, even if new information becomes available in the
future. Our actual results may differ materially from the results
anticipated in these forward-looking statements due to a variety of
factors, including, without limitation those set forth as "Risk
Factors" in our filings with the Securities and Exchange Commission
("SEC"). There may be other factors not mentioned above or included
in the BioHiTech's SEC filings that may cause actual results to
differ materially from those projected in any forward-looking
statement. BioHiTech Global, Inc. assumes no obligation to update
any forward-looking statements as a result of new information,
future events or developments, except as required by securities
laws.
Company Contact:
BioHiTech Global, Inc.
Lisa Giovannielli
VP, Corporate Communications
O: 888.876.9300
E: lgiovannielli@biohitech.com
Investors:
ir@biohitech.com
Financial Tables Follow
BioHiTech
Global, Inc. and Subsidiaries
|
Condensed
Consolidated Statements of
|
Operations and
Comprehensive Loss (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Equipment
sales
|
|
$
|
2,630,993
|
|
$
|
—
|
|
$
|
4,897,506
|
|
$
|
323,116
|
Rental, service and
maintenance
|
|
|
447,427
|
|
|
356,033
|
|
|
868,656
|
|
|
827,126
|
HEBioT
|
|
|
376,554
|
|
|
892,899
|
|
|
729,102
|
|
|
1,383,031
|
Management advisory
and other fees (related party)
|
|
|
—
|
|
|
25,000
|
|
|
—
|
|
|
100,000
|
Total
revenue
|
|
|
3,454,974
|
|
|
1,273,932
|
|
|
6,495,264
|
|
|
2,633,273
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Equipment
sales
|
|
|
1,806,324
|
|
|
—
|
|
|
3,042,340
|
|
|
146,404
|
Rental, service and
maintenance
|
|
|
297,463
|
|
|
151,695
|
|
|
553,172
|
|
|
412,530
|
HEBioT
processing
|
|
|
879,491
|
|
|
1,020,277
|
|
|
1,556,768
|
|
|
1,832,704
|
Selling, general and
administrative
|
|
|
2,012,397
|
|
|
1,897,442
|
|
|
3,658,354
|
|
|
3,815,865
|
Depreciation and
amortization
|
|
|
501,098
|
|
|
569,764
|
|
|
1,002,931
|
|
|
1,184,966
|
Total operating
expenses
|
|
|
5,496,773
|
|
|
3,639,178
|
|
|
9,813,565
|
|
|
7,392,469
|
Loss from
operations
|
|
|
(2,041,799)
|
|
|
(2,365,246)
|
|
|
(3,318,301)
|
|
|
(4,759,196)
|
Other
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
(income)
|
|
|
(123)
|
|
|
(5,355)
|
|
|
(310)
|
|
|
(17,622)
|
Interest
expense
|
|
|
1,031,011
|
|
|
1,025,319
|
|
|
2,059,416
|
|
|
2,037,610
|
Loss from
unconsolidated entity
|
|
|
2,746
|
|
|
—
|
|
|
32,749
|
|
|
—
|
Total other
expenses
|
|
|
1,033,634
|
|
|
1,019,964
|
|
|
2,091,855
|
|
|
2,019,988
|
Net
loss
|
|
|
(3,075,433)
|
|
|
(3,385,210)
|
|
|
(5,410,156)
|
|
|
(6,779,184)
|
Net loss attributable
to non-controlling interests
|
|
|
(695,229)
|
|
|
(720,329)
|
|
|
(1,395,739)
|
|
|
(1,543,006)
|
Net loss
attributable to Parent
|
|
|
(2,380,204)
|
|
|
(2,664,881)
|
|
|
(4,014,417)
|
|
|
(5,236,178)
|
Other
comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(5,369)
|
|
|
(1,437)
|
|
|
(16,044)
|
|
|
(30,136)
|
Comprehensive
loss
|
|
$
|
(2,385,573)
|
|
$
|
(2,666,318)
|
|
$
|
(4,030,461)
|
|
$
|
(5,266,314)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to Parent
|
|
$
|
(2,380,204)
|
|
$
|
(2,664,881)
|
|
$
|
(4,014,417)
|
|
$
|
(5,236,178)
|
Less – preferred
stock dividends
|
|
|
(175,169)
|
|
|
(204,941)
|
|
|
(358,024)
|
|
|
(382,313)
|
Net loss – common
shareholders
|
|
|
(2,555,373)
|
|
|
(2,869,822)
|
|
|
(4,372,441)
|
|
|
(5,618,491)
|
Net loss per common
share - basic and diluted
|
|
$
|
(0.09)
|
|
$
|
(0.16)
|
|
$
|
(0.17)
|
|
$
|
(0.32)
|
Weighted average
number of common shares outstanding - basic and diluted
|
|
|
28,259,677
|
|
|
17,437,068
|
|
|
26,301,029
|
|
|
17,406,788
|
BioHiTech
Global, Inc. and Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
|
|
|
2021
|
|
December 31,
|
|
|
(Unaudited)
|
|
2020
|
Assets
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
Cash
|
|
$
|
2,279,060
|
|
$
|
2,403,859
|
Restricted
cash
|
|
|
3,808,751
|
|
|
1,884,691
|
Accounts receivable,
net of allowance for doubtful accounts of $181,565 and $151,459 as
of June 30, 2021 and December 31, 2020, respectively
|
|
|
1,847,746
|
|
|
1,574,047
|
Inventory
|
|
|
1,381,338
|
|
|
695,110
|
Prepaid expenses and
other current assets
|
|
|
259,374
|
|
|
184,274
|
Total Current
Assets
|
|
|
9,576,269
|
|
|
6,741,981
|
Restricted
cash
|
|
|
2,603,440
|
|
|
2,607,945
|
Equipment on
operating leases, net
|
|
|
1,158,558
|
|
|
1,311,755
|
HEBioT facility,
equipment, fixtures and vehicles, net
|
|
|
35,330,255
|
|
|
35,946,225
|
License and
capitalized MBT facility development costs
|
|
|
8,037,859
|
|
|
8,072,471
|
Other
assets
|
|
|
1,924,203
|
|
|
2,006,048
|
Total
Assets
|
|
$
|
58,630,584
|
|
$
|
56,686,425
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
2,720,443
|
|
$
|
2,492,606
|
Accrued expenses and
liabilities
|
|
|
1,332,718
|
|
|
2,515,724
|
Accrued interest
payable
|
|
|
1,344,293
|
|
|
1,279,018
|
Customer
deposits
|
|
|
2,026,555
|
|
|
1,802,725
|
Current portion of
notes, bonds, debts and borrowings
|
|
|
10,992,863
|
|
|
10,120,457
|
Deferred
revenue
|
|
|
268,871
|
|
|
138,961
|
Total Current
Liabilities
|
|
|
18,685,743
|
|
|
18,349,491
|
Non-current portion
of notes, bonds, debts and borrowings
|
|
|
29,352,846
|
|
|
29,645,227
|
Accrued interest
(related party)
|
|
|
1,896,467
|
|
|
1,807,857
|
Non-current lease
liabilities
|
|
|
1,157,414
|
|
|
1,216,861
|
Liabilities to
non-controlling interests to be settled in subsidiary membership
units
|
|
|
—
|
|
|
1,585,812
|
Total
Liabilities
|
|
|
51,092,470
|
|
|
52,605,248
|
Series A redeemable
convertible preferred stock, 333,401 shares designated and issued,
and 95,312 and 125,312 outstanding as of June 30, 2021 and December
31, 2020, respectively
|
|
|
476,560
|
|
|
626,553
|
Commitments and
Contingencies
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
Preferred stock,
$0.0001 par value; 10,000,000 shares authorized; 3,209,210
designated; 1,936,214 issued; 542,673 and 848,292 outstanding as of
June 30, 2021 and December 31, 2020, respectively:
|
|
|
5,057,942
|
|
|
6,621,576
|
Common stock, $0.0001
par value, 50,000,000 shares authorized, 28,348,684 and 23,354,130
shares issued and outstanding as of June 30, 2021 and December 31,
2020, respectively
|
|
|
2,835
|
|
|
2,334
|
Additional paid in
capital
|
|
|
69,682,816
|
|
|
60,253,664
|
Accumulated
deficit
|
|
|
(68,852,919)
|
|
|
(64,419,802)
|
Accumulated other
comprehensive (loss)
|
|
|
(159,858)
|
|
|
(143,814)
|
Stockholders' equity
attributable to Parent
|
|
|
5,730,816
|
|
|
2,313,958
|
Stockholders' equity
attributable to non-controlling interests
|
|
|
1,330,738
|
|
|
1,140,666
|
Total Stockholders'
Equity
|
|
|
7,061,554
|
|
|
3,454,624
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
58,630,584
|
|
$
|
56,686,425
|
BioHiTech
Global, Inc. and Subsidiaries
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
June
30,
|
|
|
2021
|
|
2020
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net
loss
|
|
$
|
(5,410,156)
|
|
$
|
(6,779,184)
|
Adjustments to
reconcile net loss to net cash used in operations:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
1,002,931
|
|
|
1,184,966
|
Amortization of
operating lease right of use assets
|
|
|
38,996
|
|
|
53,552
|
Provision for bad
debts
|
|
|
30,000
|
|
|
61,119
|
Share based employee
and vendor compensation
|
|
|
345,488
|
|
|
707,653
|
Interest resulting from
amortization of financing costs and discounts
|
|
|
219,437
|
|
|
265,776
|
Loss from
unconsolidated entity
|
|
|
32,749
|
|
|
—
|
Changes in operating
assets and liabilities
|
|
|
(519,750)
|
|
|
593,507
|
Net cash used in
operating activities
|
|
|
(4,260,305)
|
|
|
(3,912,611)
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
Purchases of
facility, equipment, fixtures and vehicles
|
|
|
(184,914)
|
|
|
(50,731)
|
Refund of
deposit
|
|
|
—
|
|
|
5,000
|
MBT facility
development costs incurred
|
|
|
(28,388)
|
|
|
(36,996)
|
Net cash used in
investing activities
|
|
|
(213,302)
|
|
|
(82,727)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Proceeds from the
sales of common stock
|
|
|
6,895,618
|
|
|
—
|
Proceeds from the
sale of Series F convertible preferred stock units
|
|
|
—
|
|
|
1,560,450
|
Proceeds from Payroll
Protection Program Loan
|
|
|
—
|
|
|
421,300
|
Repayment of Senior
secured note
|
|
|
(625,000)
|
|
|
|
Repayments of
long-term debt
|
|
|
(2,163)
|
|
|
(2,496)
|
Related party
advances, net
|
|
|
—
|
|
|
725,000
|
Net cash provided by
financing activities
|
|
|
6,268,455
|
|
|
2,704,254
|
Effect of exchange
rate on cash (restricted and unrestricted)
|
|
|
(92)
|
|
|
(20,208)
|
Net change in cash
(restricted and unrestricted)
|
|
|
1,794,756
|
|
|
(1,311,292)
|
Cash - beginning of
period (restricted and unrestricted)
|
|
|
6,896,495
|
|
|
5,536,952
|
Cash - end of
period (restricted and unrestricted)
|
|
$
|
8,691,251
|
|
$
|
4,225,660
|
|
|
|
|
|
|
|
Supplementary cash
flow information (cash paid during the periods):
|
|
|
|
|
|
|
Interest
|
|
$
|
1,524,097
|
|
$
|
1,491,867
|
Income
taxes
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
Supplementary
Disclosure of Non-Cash Investing and Financing
Activities:
|
|
|
|
|
|
|
Transfer of inventory
to leased equipment
|
|
$
|
54,000
|
|
$
|
67,604
|
Acquisition of right
of use leased asset and creation of lease liability
|
|
|
—
|
|
|
412,647
|
Accrual of
Series A preferred stock dividends
|
|
|
24,821
|
|
|
35,109
|
Payment of
Series A preferred stock dividends in common stock
|
|
|
79,181
|
|
|
25,000
|
Payment of preferred
stock dividends in common stock
|
|
|
390,460
|
|
|
—
|
Issuance of
subsidiary membership interest in exchange for liabilities due
non-controlling interest entity
|
|
|
1,918,947
|
|
|
—
|
Exchange of
subsidiary non-controlling interest in exchange for liabilities
owed Company by non-controlling interest entity
|
|
|
333,135
|
|
|
—
|
|
|
|
|
|
|
|
Reconciliation of
Cash and Restricted Cash:
|
|
|
|
|
|
|
Cash
|
|
$
|
2,279,060
|
|
$
|
342,182
|
Restricted cash
(current)
|
|
|
3,808,751
|
|
|
1,237,097
|
Restricted cash
(non-current)
|
|
|
2,603,440
|
|
|
2,646,381
|
Total cash and
restricted cash at the end of the period
|
|
$
|
8,691,251
|
|
$
|
4,225,660
|
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SOURCE BioHiTech Global, Inc.