BioHiTech Global, Inc. (NASDAQ:BHTG) Q2 2019 Earnings Conference Call Transcript

Aug 15, 2019 • 09:00 am ET

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BioHiTech Global, Inc. (NASDAQ:BHTG) Q2 2019 Earnings Conference Call Transcript

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Operator
Operator

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the BioHiTech Global Second Quarter 2019 Financial Results Conference Call. [Operator Instructions]

Before I turn the call over to the company, I want to remind listeners that during the call, management's prepared remarks may contain forward-looking statements that are subject to risks and uncertainties. Management may make additional forward-looking statements in response to your questions today. Therefore, the company claims protection under safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from results discussed today, and therefore, we refer you to a more detailed discussion of these risks and uncertainties in the company's filings with the SEC.

In addition, any projections as to the company's future performance presented by management include estimates as of today August 15th, 2019. And the company assumes no obligation to update these projections in the future as market conditions change. This webcast and certain financial information provided in this call are available at www.biohitech.com on the Investor Relations page.

I would now like to turn the call over to Mr. Richard Galterio, Executive Vice President of BioHiTech. Please go ahead, Mr. Galterio.

Executive
Richard Galterio

Thank you, operator, and good morning, listeners. Welcome again to the BioHiTech Global second quarter 2019 financial results conference call. In addition to myself, with us today are Frank E. Celli, our Chief Executive Officer; and Brian Essman, our Chief Financial Officer. I would like to start off by providing a brief overview of our business progress in the quarter followed by a more detailed discussion of our financial results from Brian Essman and then we will turn the call over to Frank, our CEO, to provide an overview of our growth strategy as we move through the remainder of 2019.

During the quarter, we achieved 15.6% revenue growth, which was driven by the early stage of commercialization at our HEBioT facility in Martinsburg, West Virginia. The Martinsburg facility is the first of its kind facilities-based solution in the United States that diverts as much as 80% of municipal waste from landfills while producing a renewable solid recovered fuel or SRF. This SRF is an EPA-recognized renewable fuel that can be used as a partial replacement for coal and industrial applications.

We spent the second quarter going through the commissioning phase where we tested and optimized each phase of the plant's operations, including the receiving area, mechanical sorting, bio oxidation hall and refinement. As this is new technology to this country, we did encounter a number of unexpected hurdles which lengthened the process and slowed our ability to increase utilization rates as we had originally planned. After overcoming these hurdles, the facility began producing SRF later in the quarter that underwent a series of internal and independent laboratory testing to ensure it would meet specifications for use by our end customers. This testing process was also lengthy but was -- hold on please.

This testing process was also lengthy and was