BioHiTech Global Q3 revenues up 86% as net loss widens

US waste management specialist BioHiTech Global said its third-quarter revenue grew 86% from a year ago.

Total revenue for Q3 2016 was $623,578 (€580,000), compared to $33,715 in Q3 2015. Revenue derived from the company’s core organic waste digester business, BioHiTech said in a statement.

However, the company's net loss widened from $1.46 million Q3 2015 to $1.64 million in Q3 2016. Loss from operations for Q3 2016 was $1.42 million, a 6% increase compared to loss from operations of $1.34 million recorded in Q3 2015.

Contributing to the Q3 2016 loss was $161,685 of stock based compensation that resulting from the Company's only grants made earlier in 2016. Excluding the stock based compensation the loss from operations would have decreased by 6%.

Gross margin rose to 31% in Q3 2016, a 15-percentage point increase compared to gross margin of 16% in Q3 2015. Gross profit in Q3 2016 totalled $190,960, a 252% increase compared to gross profit of $54,181 in Q3 2015.

Gross margin for RSP increased to 29% from 21% in Q3 2015. The increased gross margin is primarily attributable to changes in demand, including contracted services, and improved utilisation of fixed costs.

Proprietary cloud technology

"During the third quarter we continued to take the steps necessary to position the company for the future.  We achieved 86% revenue growth in our digester business, fuelled by direct sales and recurring revenue from rentals,” said Frank E. Celli, CEO of BioHiTech Global. 

“We have also added significant information technology capabilities to our BioHiTech cloud with the addition of our Alto software.  Through this proprietary cloud technology, we transformed our digester into an intelligent inventory management tool in addition to a solution for cost-effective sustainable waste disposal.

"More importantly, with the progress we have made at Entsorga North America to establish HEBioT waste disposal facilities through our licensing agreement, we are poised to become one of the first end-to-end sustainable waste solution providers in the US.  In doing so, we can help businesses achieve their 'zero waste' initiatives while delivering long-term growth and lasting value for the benefit of our stockholders."

 This story was written by Liz Gyekye, editor of Bioenergy Insight.