Waste specialist BioHiTech is confident of entering 2020 with “significant revenue momentum” due to end-user interest in its equipment and potential “large” opportunities in the public sector.
The company has recently bagged multi-unit orders in both the university and hospitality markets and has several other large potential opportunities in hospitality and government that it believes it is close to securing.
Third quarter revenues at the firm increased 31% year-on-year to $1.4m, with recurring revenue derived from rental, service and maintenance up 4% to $490,000.
An increase in rental revenue was partially offset by a decrease in service and maintenance revenue largely due to the efficiency of its Revolution Series Digesters requiring less onsite servicing.
The company recorded $62,565 in digester equipment revenue in the third quarter of 2019 compared to $282,246 in the third quarter of 2018 resulting from our strategic decision to not aggressively market direct sales of digesters to smaller deployment customers.
Frank Celli, CEO of BioHiTech, said: “In our digester business, many important financial metrics have continued to improve, including recurring rental revenue and contribution margins as our Revolution Series Digesters, with smart technology, require less maintenance and service calls.
“We have recently received multi-unit orders in both the university and hospitality markets and have several other large potential opportunities in hospitality and government that we believe are moving close to the finish line. We expect that a sequential increase in revenue from our Martinsburg facility, coupled with an increase in fourth quarter digester deployments, will enable us to enter 2020 with significant revenue momentum.”
The company recorded an operating loss of $1.6m in the third quarter of 2019 compared to an operating loss of $1.2m the year before.