PR Newswire | Nov 18, 2021 04:06PM EST

From Year-Ago Period

11/18 15:05 CST

BioHiTech Global Reports Record Results With Third Quarter Revenue Up Over 500% From Year-Ago PeriodFourth Consecutive Quarter of Record RevenueConference Call to be held Thursday, November 18, 2021, at 4:30 pm CHESTNUT RIDGE, N.Y., Nov. 18, 2021

CHESTNUT RIDGE, N.Y., Nov. 18, 2021 /PRNewswire/ -- BioHiTech Global, Inc. ("BioHiTech" or the "Company") (NASDAQ: BHTG), a sustainable technology and services company, today announces financial results for its fiscal third quarter ending September 30, 2021.

Q3 2021 Financial Highlights

* The Company continued its revenue growth in the quarter ended September 30, 2021, with total revenues of $4.5 million, up 509% over the year-ago quarter and 31% over the prior quarter. * Third quarter Digester and Corporate line of business revenues increased by approximately 431% over the year-ago period and 28% over the prior quarter, driven by Carnival Cruise Lines equipment sales. * Operating loss improves to ($1.1) million versus a loss of ($3.9) million in the year-ago period and ($2.0) million in the prior quarter.

Corporate Highlights Q3 2021

* BioHiTech continues growth in Cruise industry with strong Carnival Corp. sales * BioHiTech expands market presence in Higher Education Institutions with additional Digester Sales and student research opportunities * BioHiTech engages pilot efforts to explore Digester use in Supermarkets

Tony Fuller, BioHiTech's CEO, commented: "We are pleased with our third quarter performance which represents the fourth consecutive quarter of record revenue for BioHiTech, with revenues rising 31% to $4.5 million versus the prior quarter and 509% over the year-ago quarter. In addition to our strong revenue growth, we also made significant progress in our efforts to cut costs and improve our profitability. In the third quarter, our operating loss improved to a loss of ($1.1) million versus a loss of ($3.9) million in the year-ago period and ($2.0) million in the prior quarter. We achieved lower SG&A, which declined to $1.7 million versus $2.0 million in the prior quarter and stronger gross margins, which increased to 23% in the third quarter versus 14% in the prior quarter. We will continue to focus on cost optimization as we work to achieve profitability.

"Our success in the third quarter is a true testament to the dedication and perseverance of our amazing team who have surpassed our goals through a shifting macroeconomic landscape. We continue to accomplish strong growth in our Maritime/Cruise vertical while fostering an expansion in Higher Education, Retail, and other verticals. Moreover, we achieved strong performance in our Martinsburg Plant, which is operating with stronger, more efficient output given the resolution of the issues that hampered sales in recent quarters.

"Our efforts in the Higher Education vertical have driven growth through additional digester orders at prominent universities across the East Coast as they seek to accomplish sweeping sustainability goals including increasing landfill diversion and reducing their carbon footprint. We have also worked with these institutions to provide groundbreaking research and educational opportunities for students to gain a unique perspective on the impact of our solutions on myriad climate impacting factors, waste management and new technologies to achieve sustainability goals.

"Our team is also expanding pilot efforts exploring the benefits that large supermarket chains may gain from employing our Digesters, enabling efficiencies, and mitigating waste at its source throughout their operations.

"We are also currently evaluating numerous complementary strategic alliances or acquisition candidates that are part of our ongoing efforts to identify potentially accretive opportunities. We anticipate our growth will continue to come from organic sales of our technology solutions, sales of Solid Recovered Fuel, as well as potential acquisitions that support our mission as a company and a responsible corporate citizen," concluded Mr. Fuller.

Financial Results for the Quarter ended September 30, 2021

The Company continued its revenue growth in the quarter ended September 30, 2021, with total revenues of $4.5 million, increasing 31% over the second quarter of 2021 and 509% over the year-ago period. Third quarter revenues marked the fourth consecutive quarter of record revenue, driven by continued strong sales into Carnival Cruise Lines with its Digesters.

The overall contribution (revenues, less direct costs) increased to 23% of revenue in the third quarter of 2021, compared to 14% in the prior quarter and negative 69% in the year-ago period. The improvement in contribution margins versus the prior quarter was driven primarily by equipment margins increasing to 33%, up from 31% and to a lesser extent, rental service and maintenance, which increased to 42%, up from 34%.

Selling, general and administrative expenses (SG&A) declined to $1.7 million in the third quarter, down from $2.0 million in the prior quarter and $1.9 million in the year-ago period. As a percentage of revenue, SG&A was 38% in the third quarter of 2021, compared to 58% in the prior quarter and 259% in the year-ago period. The decline in SG&A was the result of increasing sales and cost reductions in SG&A.

The loss from operations improved to $1.1 million, down from $2.0 million in the prior quarter and $3.9 million in the year-ago period. As a percentage of revenue, the operating loss improved to negative 25% versus negative 59% in the prior quarter and negative 527% in the year-ago period. The improvement in the operating loss was driven by higher gross margins and operating leverage.

For the three months ended September 30, 2021, the Company incurred a consolidated loss from operations of $1.1 million, had a consolidated net loss of $1.8 million and a net loss attributable to parent of $1.2 million.

At September 30, 2021, restricted cash was $6.4 million and unrestricted cash was $600,000.

Conference Call to be held Thursday, November 18, 2021, at 4:30 PM ET

Mr. Tony Fuller, Chief Executive Officer of BioHiTech, will host a conference call on Thursday, November 18, 2021, at 4:30 p.m. ET to discuss the Company's financial results for the third quarter ended September 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/10161284/eed72a81e4

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 at: https://services.choruscall.com/mediaframe/webcast.html?webcastid=Utji6Ctk

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 February 18, 2022. 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 November 29, 2021.

About BioHiTech GlobalBioHiTech 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 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 of all types as well as educational and governmental facilities 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 StatementsStatements 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 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 GiovannielliVP, Corporate CommunicationsO: 888.876.9300E: 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 Nine Months Ended

September 30, September 30,

2021 2020 2021 2020

Revenue

Equipment sales $ 3,152,639 $ 293,876 $ 8,050,145 $ 616,992

Rental, service and maintenance 785,576 423,996 1,654,232 1,251,122

HEBioT 585,102 625 1,314,204 1,383,656

Management advisory and other fees (related party) - 24,380 - 124,380

Total revenue 4,523,317 742,877 11,018,581 3,376,150

Operating expenses

Equipment sales 2,112,407 171,002 5,154,747 317,406

Rental, service and maintenance 455,436 139,665 1,008,608 552,195

HEBioT processing 898,094 945,810 2,454,862 2,778,514

Selling, general and administrative 1,699,343 1,924,293 5,357,697 5,740,158

Impairment expense - 917,420 - 917,420

Depreciation and amortization 505,353 562,143 1,508,284 1,747,109

Total operating expenses 5,670,633 4,660,333 15,484,198 12,052,802

Loss from operations (1,147,316) (3,917,456) (4,465,617) (8,676,652)

Other expenses, net

Interest (income) (159) (108) (469) (17,730)

Interest expense 1,042,253 1,023,165 3,101,669 3,060,775

(Gain) on sales of fixed assets (8,957) - (8,957) -

PPP Loan forgiveness (421,300) - (421,300) -

Loss from unconsolidated entity 10,982 - 43,731 -

Total other expenses, net 622,819 1,023,057 2,714,674 3,043,045

Net loss (1,770,135) (4,940,513) (7,180,291) (11,719,697)

Net loss attributable to non-controlling interests (583,261) (1,647,782) (1,979,000) (3,190,788)

Net loss attributable to Parent (1,186,874) (3,292,731) (5,201,291) (8,528,909)

Other comprehensive income

Foreign currency translation adjustment 32,810 71,067 16,766 40,931

Comprehensive loss $ (1,154,064) $ (3,221,664) $ (5,184,525) $ (8,487,978)

Net loss attributable to Parent $ (1,186,874) $ (3,292,731) $ (5,201,291) $ (8,528,909)

Less - preferred stock dividends (175,169) (205,115) (533,193) (587,428)

Deemed dividend on down round features (622,482) (21,738) (622,482) (21,738)

Net loss - common shareholders (1,984,525) (3,519,584) (6,356,966) (9,138,075)

Net loss per common share - basic and diluted $ (0.07) $ (0.16) $ (0.24) $ (0.49)

Weighted average number of common shares outstanding - 28,478,706 22,044,540 27,034,898 18,787,566basic and diluted

BioHiTech Global, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

September 30,

2021 December 31,

(Unaudited) 2020

(Revised)

Assets

Current Assets

Cash $ 622,088 $ 2,403,859

Restricted cash 3,764,521 1,884,691

Accounts receivable, net of allowance for doubtful accounts of $196,338 and$151,459 as of September 30, 1,861,455 1,574,0472021 and December 31, 2020, respectively

Inventory 1,007,537 695,110

Prepaid expenses and other current assets 210,544 184,274

Total Current Assets 7,466,145 6,741,981

Restricted cash 2,603,506 2,607,945

Equipment on operating leases, net 1,037,006 1,311,755

HEBioT facility, equipment, fixtures and vehicles, net 35,044,593 35,946,225

License and capitalized MBT facility development costs 8,007,484 8,072,471

Other assets 1,887,988 2,006,048

Total Assets $ 56,046,722 $ 56,686,425

Liabilities and Stockholders' Equity

Current Liabilities

Accounts payable $ 3,711,475 $ 2,492,606

Accrued expenses and liabilities 1,477,032 2,515,724

Accrued interest payable 758,725 1,279,018

Customer deposits 559,106 1,802,725

Current portion of notes, bonds, debts and borrowings 10,821,272 10,120,457

Deferred revenue 298,752 138,961

Total Current Liabilities 17,626,362 18,349,491

Non-current portion of notes, bonds, debts and borrowings 28,832,835 29,645,227

Accrued interest (related party) 1,982,423 1,807,857

Non-current lease liabilities 1,137,806 1,216,861

Liabilities to non-controlling interests to be settled in subsidiary membership - 1,585,812units

Total Liabilities 49,579,426 52,605,248

Series A redeemable convertible preferred stock, 333,401 shares designated andissued, and 95,312 and 476,560 626,553125,312 outstanding as of September 30, 2021 and December 31, 2020,respectively

Commitments and Contingencies

Stockholders' Equity

Preferred stock, $0.0001 par value; 10,000,000 shares authorized; 3,209,210designated; 1,936,214 issued; 5,057,942 6,621,576542,673 and 848,292 outstanding as of September 30, 2021 and December 31, 2020,respectively:

Common stock, $0.0001 par value, 50,000,000 shares authorized, 29,156,691 and23,354,130 shares issued 2,916 2,334and outstanding as of September 30, 2021 and December 31, 2020, respectively

Additional paid in capital 75,099,785 64,371,007

Accumulated deficit (74,790,336) (68,537,145)

Accumulated other comprehensive (loss) (127,048) (143,814)

Stockholders' equity attributable to Parent 5,243,259 2,313,958

Stockholders' equity attributable to non-controlling interests 747,477 1,140,666

Total Stockholders' Equity 5,990,736 3,454,624

Total Liabilities and Stockholders' Equity $ 56,046,722 $ 56,686,425

BioHiTech Global, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited)

Nine Months Ended

September 30,

2021 2020

Cash flows from operating activities:

Net loss $ (7,180,291) $ (11,719,697)

Adjustments to reconcile net loss to net cash used in operations:

Depreciation and amortization 1,508,284 1,747,109

Impairment expense - 917,420

Amortization of operating lease right of use assets 59,179 72,402

Provision for bad debts 45,000 126,119

Share based employee and vendor compensation 369,828 1,835,750

Interest resulting from amortization of financing costs and discounts 330,916 419,715

Loss from unconsolidated entity 43,731 -

(Gain) on sale of fixed assets (8,957) -

PPP Loan Forgiveness (421,300) -

Changes in operating assets and liabilities (924,430) (909,507)

Net cash used in operating activities (6,178,040) (7,510,689)

Cash flow used in investing activities:

Purchases of facility, equipment, fixtures and vehicles (252,929) (207,173)

Proceeds from sale of vehicle 8,957 -

Refund of deposit - 5,000

MBT facility development costs incurred (29,513) (62,949)

Net cash used in investing activities (273,485) (265,122)

Cash flows from financing activities:

Proceeds from the sales of common stock 7,548,502 8,437,480

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 (1,000,000) -

Repayments of long-term debt (3,265) (3,544)

Related party advances, net - 725,000

Net cash provided by financing activities 6,545,237 11,140,686

Effect of exchange rate on cash (restricted and unrestricted) (92) (18,129)

Net change in cash (restricted and unrestricted) 93,620 3,346,746

Cash - beginning of period (restricted and unrestricted) 6,896,495 5,536,952

Cash - end of period (restricted and unrestricted) $ 6,990,115 $ 8,883,698

Supplementary cash flow information (cash paid during the periods):

Interest $ 2,892,850 $ 1,596,332

Income taxes - -

Supplementary Disclosure of Non-Cash Investing and Financing Activities:

Transfer of inventory to leased equipment $ 54,000 $ 84,501

Acquisition of right of use leased asset and creation of lease liability - 412,647

Accrual of Series A preferred stock dividends 35,543 52,654

Payment of Series A preferred stock dividends in common stock 79,181 -

Conversion of preferred stock into common - 239,566

Payment of preferred stock dividends in common stock 390,460 21,732

Issuance of subsidiary membership interest in exchange for liabilities due 1,918,947 -non-controlling interest entity

Exchange of subsidiary non-controlling interest in exchange for liabilitiesowed Company by non-controlling 333,135 -

interest entity

Reconciliation of Cash and Restricted Cash:

Cash $ 622,088 $ 4,950,112

Restricted cash (current) 3,764,521 1,287,138

Restricted cash (non-current) 2,603,506 2,646,448

Total cash and restricted cash at the end of the period $ 6,990,115 $ 8,883,698

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SOURCE BioHiTech Global, Inc.