CHESTNUT RIDGE, N.Y., April 5, 2016 /PRNewswire/ -- BioHiTech Global, Inc. ("BioHiTech") (OTCQB: BHTG), a green technology company that provides innovative data-driven solutions for food waste disposal, reported financial results for its fourth quarter and full year ended December 31, 2015.

Full Year 2015 Financial Highlights

• Total revenue for the full year of 2015 was unchanged at $1.5 million.   
• Recurring revenue for the full year of 2015 increased by 31% to $996,000. 
• Full year 2015 recurring revenue as a percentage of total revenue increased to 66% from 50% in 2014.
• Increased deployed units to over 300 globally.
• Order backlog of 90 units at December 31, 2015.
• Full year 2015 gross profit increased by 24% to $188,000.
• Full year 2015 net loss totaled $5.0 million as compared to a net loss of $3.7 million in 2014.

2015 Operational Highlights

• Completed merger with BioHiTech America, LLC in August 2015.
• Upon completion of the merger, appointed Frank E. Celli as CEO. Celli, a 25-year waste industry veteran, has been instrumental in leading important environmental initiatives, including the development of the first Mechanical Biological Treatment facility in the United States.
• Appointed Brian C. Essman as CFO.
• Retained MZ Group to lead global investor relations campaign.
• Proved the Eco-Safe Digester was a viable generator of feedstock for anaerobic gas production.
• Developed the BioHiTech Cirrus mobile app to provide real time access to the BioHiTech Cloud data.
• Established new subsidiary: BioHiTech Europe to offer expanded sales and services in Europe.
• Continued execution on existing contract with Department of Veteran's Affairs.
• Expanded global footprint to 37 states and 12 foreign countries. 
• Expanded international distribution in Singapore with reseller partner Flexi Systems resulting in purchase orders of four Eco-Safe Digesters. 

2015 Technology Highlights

• Completed development of BioHiTech Cirrus mobile app providing real time, on the move, access to deep analytics and data available in the BioHiTech Cloud.
• Improved and extended the BioHiTech Cloud platform to provide increased customer business insight:
  • Automatic categorization of waste based on touchscreen, card swipe or bar code scan.
  • Improved analytics capabilities.
  • Extended alert capabilities to provide real-time notification of digester status.
  • Deployed integrated service support to improve quality and efficiency of customer service.
  • Customer view of real-time status of digesters.
• Increased reliability and functionality of internal digester software:
  • Touchscreen support for graphically friendly categorization.
  • Individually coded access control provided secure use of digester and accurate reporting by category or tenant usage.

Full Year 2015 Financial Results

Total revenue for the full year of 2015 was $1.5 million and remained unchanged as compared to 2014. For the full year of 2015 the revenue from recurring sources as a percentage of total revenue increased to 66% from 50% in 2014, while equipment sales as a percentage of total revenue decreased to 27% from 38% in 2014.

These changes are in-line with the company's strategic shift in its business model in 2013 to focus on recurring revenues, which include the rental of its digester units, maintenance (including Software as a Service "SaaS") and parts (combined "RMP") that provides a steadier stream of revenues and cash flows over time.

RMP revenue for the full year of 2015 increased 31% to $996,000 from $761,000 in 2014. The increase in RMP revenue in 2015 is primarily attributable to a 34% increase in total bundled rental revenue, which accounted for 50% of the category in 2015, and a 70% increase in parts and services revenue for parts and services that are not covered under standard maintenance and bundled services plans.          

Gross margins for the full year of 2015 increased to 12% versus 10% in 2014. RMP margins for the full year of 2015 increased to 3% from a negative 6% in 2014. The increased gross margins in 2015 is primarily attributable to changes in demand, including contracted services, and improved utilization of fixed costs.

Net loss for the full year of 2015 totaled $5.0 million or ($0.68) per basic and diluted share, compared to net loss of $3.7 million or ($0.56) per basic and diluted share in 2014. The net loss in 2015 was primarily due to increased non-cost of revenue operating expenses, which increased from $3.5 million to $4.7 million due to increases relating to personnel, marketing, legal, professional and accounting expenses (including those associated with the August 2015 merger with BioHiTech America LLC and public company costs).

Cash at December 31, 2015, decreased to $39,000 compared to $40,000 at December 31, 2014. Subsequent to the fourth quarter of 2015, the company raised an additional $2.5 million in a private placement with institutional investors and company management, which it plans to use for additional marketing and working capital purposes.

Further details about the company's results in 2015 are available in its Annual Report Form 10-K, accessible in the investor relations section of the company's website at www.biohitech.com.

Management Commentary

"2015 was a strong year of innovation, growth and expansion for BioHiTech Global," said the company's CEO, Frank E. Celli. "Our progress was highlighted by key customer wins and the successful execution of strategic initiatives that drove growth and increased shareholder value.
The double-digit growth of RMP revenue validates our decision in 2014 to focus our resources towards the rental model of our Eco-Safe Digesters along with the deployment of our waste disposal management solution, BioHiTech Cloud.

"We added several key new customers in the U.S. and abroad that accelerated the rollout of our Eco-Safe Digesters by a double-digit growth rate and accumulated significant order backlog with the execution of multiple, multi-unit contracts.

"Other key performance metrics also trended well in 2015. Full year 2015 gross profit increased 24% and RMP gross margins increased 900 basis points to 3% versus negative 6% in 2014. Further evidence that our shift to the rental model for our Eco-Safe Digester is gaining momentum and we are beginning to see the hockey stick pattern with respect our margin profile.

"While we always work to address our customer's evolving needs and refine the functionality of our waste disposal management solution, BioHiTech Cloud, our overall focus has shifted more toward bundled contracts and deployment, and particularly our global reach.

"BioHiTech Global's footprint expanded in 2015 with our BioHiTech Europe division offering sales and services in Europe. As BioHiTech Global continues its mission of transforming the waste industry, customer inquiries received from both the European and Asian markets were the driver for the decision to establish a London-based operation. According to the European Commission, nearly 100 million tonnes of food are wasted annually in Europe. Led by President Alex Giacchetti, BioHiTech Europe is now marketing its products and services to a number of prestigious London hotels, leading UK shopping centers and some of the country's largest facilities management companies," continued Celli.

"Significant traction in 2015 with our BioHiTech Cloud solution was also demonstrated with an 86% adoption rate when our digester was sold or leased. BioHiTech Cloud is a reliable, manageable and secure platform where the measured food waste is categorized and analyzed for improved efficiencies and a reduction in the generation of food waste at its source. Our next generation technology solution addresses segments in Grocery, Hospitality, Healthcare, Government, Restaurants, Foodservice & Non-Profits Food Banks. With meaningful regulatory drivers powering these large addressable markets, we are confident our products and services will support the ongoing growth of our company.

"We believe the wind is now at our backs with respect to the evolution of the regulatory environment for the diversion of organic food waste to landfills. In fact, new legislation in California has taken effect on April 1, 2016 and requires businesses who generate at least 8 cubic yards of organic waste per week to arrange for the recycling of that waste. Mandatory recycling of organic waste is the next step toward achieving California's aggressive recycling and greenhouse gas (GHG) emission goals. California disposes approximately 30 million tons of waste in landfills each year. California will join Vermont, Connecticut, Massachusetts, and New York City which already have imposed bans on the disposal of food waste.

"According to the Environmental Protection Agency, 34 million tons of food waste is sent to landfills every year at a cost of more than $165 billion per year, and currently, only 3% is diverted from landfills. Federal, state, and local governments have begun imposing regulations and legislation mandating that food waste be diverted from the municipal solid waste stream to reduce costs and slow landfill fill rates, and reduce methane gas production from decomposition, a contributor to climate change. Many companies now have self-imposed "Zero Waste" or "Sustainability" goals, both for green credentials and to reduce waste costs.

"During the second half of 2015, BioHiTech America merged into BioHiTech Global and became a fully reporting public company. In conjunction with our fully reporting status, we appointed Brian Essman as our chief financial officer. Brian's financial management experience with PricewaterhouseCoopers and Fidelity Capital will be a tremendous asset to our management team as we continue to strengthen and expand our global presence."

2016 Outlook

"2016 is already off to a strong start as we partnered with Natural Systems Utilities in continuing to deliver effluent from our digesters to be converted to energy, offering an additional alternative to users who are committed to the conversion of food waste," said Celli.

"Our momentum continued on the international front with significant traction in our UK market with multiple high profile customer installations and a renewed partnership with Avangard Innovative in Latin America and Mexico.

"On the investor relations front, we up-listed our common stock to the OTCQB, presented at the 2nd Annual Gabelli & Co. Waste and Environmental Services Symposium and completed a $2.5 million private placement of convertible notes and warrants to fortify the balance sheet for strategic growth initiatives in 2016.

"Throughout 2016, we see our Eco-Safe Digester footprint expanding across the globe and expect to maintain our double-digit growth rate with total units deployed in 2016. Further evidence to support our confidence is with the stabilization of our order backlog, which as of March 31, 2016 stood at 90 units. With the recent launch of BioHiTech Cirrus, our new mobile app for unparalleled insight into the waste stream, I couldn't be more confident that BioHiTech is uniquely positioned to address the global IoT (Internet of Things) market, projected to reach $1.7 trillion by 2020.

"We look forward to sharing our developing story at the upcoming B. Riley & Co. 17^th Annual Investor Conference being held on May 25-26 at the Loews Hollywood Hotel in Hollywood, California."

About BioHiTech Global
BioHiTech Global (OTCQB: BHTG), "The Company" headquartered in Chestnut Ridge NY, is a technology company that provides the transparency needed to prevent food waste as well as offer a sustainable means for its disposal.  BioHiTech's data-driven solution offers businesses insight into their waste stream creating immediate opportunities to identify inefficiencies, improve operating results and advance sustainability initiatives within their company.

For more information, please visit www.biohitech.com.

Forward Looking Statements
This news release may contain "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements and any such forward-looking statements are qualified in their entirety by reference to the following cautionary statements. All forward-looking statements speak only as of the date of this news release and are based on current expectations and involve a number of assumptions, risks and uncertainties that could cause the actual results to differ materially from such forward-looking statements.  Important factors that could cause actual results to differ materially from those in forward-looking statements include: economic downturns, reduced capital expenditures, consolidation and technological and regulatory changes in our industry; the highly competitive nature of our industry; our ability to attract and retain qualified managers and skilled employees; the outcome of our plans for future operations and growth; and the other factors referenced in this prospectus, including, without limitation, under "Item 1.A Risk Factors" in our Form 10-K filed with the SEC on March 29, 2016 for the year ended December 31, 2015.

We believe these forward-looking statements are reasonable; however, you should not place undue reliance on any forward-looking statements, which are based on current expectations. Furthermore, forward-looking statements speak only as of the date they are made. If any of these risks or uncertainties materialize, or if any of our underlying assumptions are incorrect, our actual results may differ significantly from the results that we express in or imply by any of our forward-looking statements.  We do not undertake any obligation to publicly update or revise these forward-looking statements after the date of this prospectus to reflect future events or circumstances. We qualify any and all of our forward-looking statements by these cautionary factors.

Media Contact:

Rubenstein Public Relations
Contact: Kristie Galvani
Tel: 212-843-9205
Kgalvani@rubensteinpr.com

Investor Relations Contact:

MZ North America
Ted Haberfield
President – MZ North America
Direct: 760-755-2716
Mobile: 858-204-5055
thaberfield@mzgroup.us
www.mzgroup.us

Sales Contact:

BioHiTech Global, Inc.
Lisa Giovannielli
Marketing Director
Direct: 845-262-1081
lgiovannielli@biohitech.com 
www.biohitech.com

Fiscal 2015 Financial Summary Tables
The following financial information should be read in conjunction with the financial statements and accompanying notes filed by the company with the Securities and Exchange Commission on March 29, 2016 in its Annual Report on Form 10-K for the period ended December 31, 2015, which can be viewed at www.sec.gov and also in the Investor Relations section of the company's website at www.biohitech.com.

SOURCE BioHiTech Global, Inc.