BHTG Stock Price Increases Over 19% Pre-Market: Why It Happened

By Amit Chowdhry ● Aug 10, 2021
  • The stock price of BioHiTech Global Inc (NASDAQ: BHTG) increased by over 19% pre-market. This is why it happened.

The stock price of BioHiTech Global Inc (NASDAQ: BHTG) – a sustainable technology and services company – increased by over 19% pre-market. Investors are responding positively to BioHiTech’s second quarter 2021 financial results.

Q2 2021 Financial Highlights

— BioHiTech 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 BioHiTech 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.

KEY QUOTES:

“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 fulfill 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.” 

— Tony Fuller, BioHiTech’s CEO

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.