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August 12, 2021
CHESTNUT RIDGE, N.Y. -- 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.
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