2014

American DG Energy Reports First Quarter 2012 Financial Performance

WALTHAM, Mass., May 15, 2012 /PRNewswire/ -- American DG Energy Inc. (NYSE MKT: ADGE), a leading On‑Site Utility, offering clean electricity, heat, hot water and cooling solutions to hospitality, healthcare, housing and athletic facilities, reported energy revenues of $1,451,569 in the first quarter of 2012, compared to $1,446,152 in the first quarter of 2011.

Total revenues were $1,502,402 in the first quarter of 2012, compared to $1,654,720 in the first quarter of 2011. GAAP diluted loss per share (EPS) was $(0.04) in the first quarter of 2012, compared to $(0.01) in the first quarter of 2011, and GAAP operating loss including EuroSite Power Inc. was $(1,200,739) in the first quarter of 2012, compared to operating loss of $(600,852) in the first quarter of 2011.

Major Highlights:

Operations

  • We reached agreements with the following properties:

    • The Community Builders, Inc. - to provide a 75 kW Combined Heat and Power (CHP) system as an On-Site Utility for West Village, an affordable housing complex in New Haven, Connecticut;
    • Metro YMCAs of the Oranges in Wayne, New Jersey - to install an On-Site Utility including a 150 kW CHP system and 450 tons of cooling, plus hot water heaters; and
    • Prospect Park Residences in Brooklyn, New York - to provide a 100 kW CHP system as an On-Site Utility.

  • We began operation of the first Ilios Heat Pump at the Albany JCC.
  • Due to demand for our On-Site Utility energy in California, we signed Accend Energy, Inc. as a strategic representative for that state.
  • Our subsidiary EuroSite Power signed a thirty-year agreement  to supply clean energy to five landmark hotels owned by The Ability Group and managed by Hilton Worldwide in the United Kingdom (UK) at the following properties:

    • London Syon Park, a Waldorf Astoria Hotel, the only Waldorf Astoria Hotel currently in the UK;
    • Hilton Liverpool, a hotel situated in the heart of the Liverpool One leisure development;
    • DoubleTree by Hilton Cambridge, situated on the banks of the River Cam;
    • Hampton by Hilton, currently under construction to serve London Luton Airport; and
    • DoubleTree by Hilton Dunblane Hydro Hotel.

  • EuroSite Power received two separate orders to supply clean energy to Haverhill Leisure Centre in Suffolk, UK.
  • EuroSite Power signed a partnership agreement with specialist renewable energy provider LowC Communities Limited to promote natural gas fueled CHP, Chiller, Heat Pump and On-Site Utility solutions in the UK and Republic of Ireland.
  • We expanded our sales and marketing effort worldwide by adding sales people, broadening our distribution and geographic reach and implementing direct marketing programs targeting potential customers, especially large property owners.
  • We were recognized for the sixth consecutive year by the US Environmental Protection Agency Combined Heat and Power Partnership for the carbon emissions reductions of our CHP systems.
  • Our Board of Directors named Charles T. Maxwell as its new Chairman of the Board.

Financial

  • Our energy revenue remained relatively unchanged in 2012 compared to the first quarter in 2011, due to lower natural gas and electricity prices that are key components in calculating our revenue.
  • Energy gross profit margin without depreciation increased to 31.8% compared to 30.5% in the first quarter of 2011.
  • Our current backlog consists of 34 energy systems compared to 9 for the same period a year ago.
  • Our total energy production grew to 20,476,800 kWh, or 12.3%, compared to 18,231,361 kWh in the first quarter of 2011.
  • Our total cash outflows were $701,461, of which $261,742 were related to startup expenses at EuroSite Power and the remaining $439,719 were related to the expansion of sales and marketing activity at American DG Energy.
  • We operated 83 energy systems compared to 76 in the first quarter of 2011.
  • The total value of our current On-Site Utility energy agreements is approximately $217 million.
  • We finished the quarter with approximately $17.2 million in cash.
  • We raised $1.6 million from the sale of common stock to Dr. Phillip Frost through one of his trusts.
  • We repurchased 500,000 shares of our common stock in a private transaction at $1.50 per share.

Recent Highlights:

American DG Energy will hold its earnings conference call today, May 15, 2012 at 10:00 a.m. Eastern Time.  To listen, call (800) 860‑2442 within the U.S, (866) 605-3852 from Canada or (412) 858-4600 from other international locations. Participants should reference American DG Energy to access the call. Please begin dialing at least 10 minutes before the scheduled starting time. The earnings press release will be available on our web site at www.americandg.com in the "Investors" section under "News Releases."

The earnings conference call will be recorded and available for playback one hour after the end of the call through Tuesday, May 22, 2012 at 9:00 a.m. Eastern Time. To listen to the playback, call (877) 344-7529 within the U.S. or (412) 317-0088 outside the U.S. and use Conference Number 10014225.

The earnings conference call will be webcast live.  To register for and listen to the webcast, go to www.americandg.com/webcast.  Following the call, the webcast will be archived for 30 days.

About American DG Energy
American DG Energy supplies low-cost energy to its customers through distributed power generating systems. We are committed to providing institutional, commercial and small industrial facilities with clean, reliable power, cooling, heat and hot water at lower costs than charged by local utilities – without any capital or start-up costs to the energy user – through our On-Site Utility energy solutions.  American DG Energy is headquartered in Waltham, Massachusetts.  More information can be found at www.americandg.com.

 

FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Important factors could cause actual results to differ materially from those indicated by such forward-looking statements, as disclosed on the Company's website and in Securities and Exchange Commission filings. This press release does not constitute an offer to buy or sell securities by the Company, its subsidiaries or any associated party and is meant purely for informational purposes. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.  




CONSOLIDATED STATEMENT OF OPERATIONS

For the Three Months Ended March 31, 2012 and March 31, 2011






Three Months Ended



March 31,


March 31,



2012


2011



(unaudited)


(unaudited)

Revenues





Energy revenues

$         1,451,569


$         1,446,152


Turnkey & other revenues

50,833


208,568



1,502,402


1,654,720

Cost of sales





Fuel, maintenance and installation

1,002,812


1,187,999


Depreciation expense

294,696


288,394



1,297,508


1,476,393

Gross profit

204,894


178,327






Operating expenses





General and administrative

767,952


501,120


Selling

357,869


129,654


Engineering

279,812


148,405



1,405,633


779,179

Loss from operations

(1,200,739)


(600,852)






Other income (expense), net





Interest and other income

12,758


11,359


Interest expense (non-cash)

(293,556)


(29,046)


Change in fair value of warrant liability (non-cash)

(216,734)


195,628



(497,532)


177,941






Loss before provision for state income taxes

(1,698,271)


(422,911)

Provision for state income taxes

(19,102)


(11,603)

Consolidated net loss

(1,717,373)


(434,514)






Income (loss) attributable to the noncontrolling interest

9,987


(44,397)

Net loss attributable to American DG Energy Inc.

$       (1,707,386)


$          (478,911)






Net loss per share - basic and diluted

$                (0.04)


$                (0.01)






Weighted average shares outstanding -




basic and diluted

45,744,794


45,525,289






Non-GAAP financial disclosure





Loss from operations

$       (1,200,739)


$          (600,852)


Depreciation expense

308,551


297,494


Stock based compensation

190,727


167,411


Adjusted EBITDA

(701,461)


(135,947)


Grants from rebates and incentives

-


107,549


Total EBITDA cash outflows

$          (701,461)


$            (28,398)









CONSOLIDATING STATEMENT OF OPERATIONS

For the Three Months Ended March 31, 2012

(unaudited)






Three Months Ended March 31, 2012



American DG

EuroSite





Energy*

Power

Eliminations

Total







Revenues






Energy revenues

$       1,451,569

$              -

$              -

$   1,451,569


Turnkey & other revenues

50,833

-

-

50,833



1,502,402

-

-

1,502,402

Cost of sales






Fuel, maintenance and installation

1,002,812

-

-

1,002,812


Depreciation expense

294,696

-

-

294,696



1,297,508

-

-

1,297,508

Gross profit

204,894

-

-

204,894







Operating expenses






General and administrative

767,952

-

-

767,952


Selling

41,624

316,245

-

357,869


Engineering

204,345

75,467

-

279,812



1,013,921

391,712

-

1,405,633

Loss from operations

(809,027)

(391,712)

-

(1,200,739)







Other income (expense), net






Interest and other income

7,790

4,968

-

12,758


Interest expense (non-cash)

(293,556)

-

-

(293,556)


Change in fair value of warrant liability (non-cash)

(216,734)

-

-

(216,734)



(502,500)

4,968

-

(497,532)







Loss before provision for state income taxes

(1,311,527)

(386,744)

-

(1,698,271)

Provision for state income taxes

(19,102)

-

-

(19,102)

Consolidated net loss

(1,330,629)

(386,744)

-

(1,717,373)







Income attributable to the noncontrolling interest

(56,617)

-

66,604

9,987

Net loss attributable to American DG Energy Inc.

$      (1,387,246)

$   (386,744)

$      66,604

$ (1,707,386)







Net loss per share - basic and diluted

$               (0.03)



$          (0.04)







Weighted average shares outstanding -





basic and diluted

45,744,794



45,744,794







Non-GAAP financial disclosure






Loss from operations

$         (809,027)

$   (391,712)

$              -

$ (1,200,739)


Depreciation expense

308,551

-

-

308,551


Stock based compensation

60,757

129,970

-

190,727


Adjusted EBITDA

(439,719)

(261,742)

-

(701,461)


Grants from rebates and incentives

-

-

-

-


Total EBITDA cash outflows

$         (439,719)

$   (261,742)

$              -

$    (701,461)







*American DG Energy includes related LLC.








 


CONSOLIDATING STATEMENT OF OPERATIONS

For the Three Months Ended March 31, 2011

(unaudited)




Three Months Ended March 31, 2011



American DG

EuroSite





Energy*

Power

Eliminations

Total







Revenues






Energy revenues

$    1,446,152

$            -

$               -

$ 1,446,152


Turnkey & other revenues

208,568

-

-

208,568



1,654,720

-

-

1,654,720

Cost of sales






Fuel, maintenance and installation

1,187,999

-

-

1,187,999


Depreciation expense

288,394

-

-

288,394



1,476,393

-

-

1,476,393

Gross profit

178,327

-

-

178,327







Operating expenses






General and administrative

501,120

-

-

501,120


Selling

(8,401)

138,055

-

129,654


Engineering

148,405

-

-

148,405



641,124

138,055

-

779,179

Loss from operations

(462,797)

(138,055)

-

(600,852)







Other income (expense), net






Interest and other income

11,359

-

-

11,359


Interest expense (non-cash)

(29,046)

-

-

(29,046)


Change in fair value of warrant liability (non-cash)

195,628

-

-

195,628



177,941

-

-

177,941







Loss before provision for state income taxes

(284,856)

(138,055)

-

(422,911)

Provision for state income taxes

(11,603)

-

-

(11,603)

Consolidated net loss

(296,459)

(138,055)

-

(434,514)







Income attributable to the noncontrolling interest

(71,202)

-

26,805

(44,397)

Net loss attributable to American DG Energy Inc.

$     (367,661)

$ (138,055)

$       26,805

$  (478,911)







Net loss per share - basic and diluted

$           (0.01)



$        (0.01)







Weighted average shares outstanding -





basic and diluted

45,525,289



45,525,289







Non-GAAP financial disclosure






Loss from operations

$     (462,797)

$ (138,055)

$               -

$  (600,852)


Depreciation expense

297,494

-

-

297,494


Stock based compensation

77,116

90,295

-

167,411


Adjusted EBITDA

(88,187)

(47,760)

-

(135,947)


Grants from rebates and incentives

107,549

-

-

107,549


Total EBITDA cash outflows

$         19,362

$   (47,760)

$               -

$    (28,398)


*American DG Energy includes related LLC.


 


CONSOLIDATED BALANCE SHEETS

As of March 31, 2012 and December 31, 2011




March 31,


December 31,



2012


2011



(unaudited)



ASSETS




Current assets:





Cash and cash equivalents

$        17,202,561


$       17,801,025


Accounts receivable, net

953,994


879,630


Unbilled revenue

33,754


18,825


Due from related party

109,360


21,140


Inventory

825,299


634,120


Prepaid and other current assets

423,733


322,276

Total current assets

19,548,701


19,677,016






Property, plant and equipment, net

14,626,367


14,690,117

Accounts receivable, long-term

77,264


82,664

Other assets, long-term

54,884


53,504






TOTAL ASSETS

$        34,307,216


$       34,503,301






LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:





Accounts payable

$             495,478


$            520,608


Accrued expenses and other current liabilities

797,620


589,032


Due to related party

384,376


313,847


Capital lease obligations

3,365


3,365

Total current liabilities

1,680,839


1,426,852






Long-term liabilities:





Convertible debentures

19,400,000


19,400,000


Warrant liability

466,295


249,561


Capital lease obligations, long-term

2,524


3,365


Other long-term liabilities

39,650


43,052

Total liabilities

21,589,308


21,122,830






Stockholders' equity:




American DG Energy Inc. shareholders' equity:





Common stock, $0.001 par value; 100,000,000 shares





  authorized; 46,601,404 and 46,001,404 issued and outstanding





  at March 31, 2012 and December 31, 2011, respectively

46,601


46,001


Additional paid-in capital

31,494,614


30,399,370


Accumulated deficit

(19,638,444)


(17,931,058)


Total American DG Energy Inc. stockholders' equity

11,902,771


12,514,313

Noncontrolling interest

815,137


866,158


Total stockholders' equity

12,717,908


13,380,471






TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$        34,307,216


$       34,503,301


 


CONSOLIDATED STATEMENT OF CASH FLOWS

For the Three Months Ended March 31, 2012 and March 31, 2011





Three Months Ended




March 31,


March 31,




2012


2011




(unaudited)


(unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES:




Net loss

$      (1,707,386)


$         (478,911)



Income (loss) attributable to noncontrolling interest

(9,987)


44,397

Adjustments to reconcile net loss to net cash used in operating activities:






Depreciation and amortization

308,551


297,494



Provision for losses on accounts receivable

-


500



Amortization of deferred financing costs

-


2,132



Change in fair value of warrant liability

216,734


(195,628)



Stock-based compensation

190,727


167,411

Changes in operating assets and liabilities





(Increase) decrease in:






Restricted cash

-


65,790



Accounts receivable and unbilled revenue

(83,893)


(230,791)



Due from related party

(88,220)


39,729



Inventory

(191,179)


(31,697)



Prepaid and other current assets

(105,393)


(69,887)


Increase (decrease) in:






Accounts payable

(25,130)


(123,447)



Accrued expenses and other current liabilities

208,588


(118,384)



Due to related party

70,529


(16,652)



Other long-term liabilities

(3,402)


53,258

Net cash used in operating activities

(1,219,461)


(594,686)







CASH FLOWS FROM INVESTING ACTIVITIES:






Purchases of property and equipment

(244,801)


(344,785)

Net cash used in investing activities

(244,801)


(344,785)







CASH FLOWS FROM FINANCING ACTIVITIES:






Proceeds from sale of common stock, net of costs

1,600,000


-



Proceeds from sale of subsidiary common stock, net of costs

-


950,000



Proceeds from exercise of stock options

70,000


4,418



Proceeds from issuance of common stock warrants

7,500


-



Purchases of common stock, net of costs

(750,000)


-



Convertible debenture transaction costs

2,556


-



Principal payments on capital lease obligations

(841)


(841)



Cancellation of restricted stock

-


(20)



Distributions to noncontrolling interest

(63,417)


(40,909)

Net cash provided by financing activities

865,798


912,648







Net increase in cash and cash equivalents

(598,464)


(26,823)

Cash and cash equivalents, beginning of the period

17,801,025


3,921,054

Cash and cash equivalents, end of the period

$      17,202,561


$        3,894,231


 

SOURCE American DG Energy Inc.



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