American DG Energy Reports First Quarter 2014 Financial Performance First quarter revenue increases by 23% compared to a year ago period

WALTHAM, Mass., May 15, 2014 /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 fitness facilities, reported total revenues of $2,527,800 in the first quarter of 2014, compared to $2,059,312 for the same period in 2013, an increase of 23%. GAAP diluted loss per share (EPS) was $(0.03) in the first quarter of 2014, compared with $(0.02) for the same period in 2013.

Major Highlights:

Financial

  • Total revenue increased by 23% to $2,527,800 in the first quarter of 2014, compared to $2,059,312 for the same period in 2013.
  • Total revenue in EuroSite Power Inc., our subsidiary based in the United Kingdom, increased by 269% to $432,184 in the first quarter of 2014, compared to $117,108 for the same period in 2013.
  • Total gross profit margin in North America without depreciation was over 34% in the first quarter of 2014.
  • We finished the first quarter of 2014 with approximately $8.1 million in cash.
  • EBITDA cash outflows for American DG Energy in North America were $(147,079) in the first quarter of 2014. The EuroSite Power cash outflows were $(162,569); therefore, our consolidated EBITDA cash outflows were $(309,648) in the first quarter of 2014.
  • The total revenue value of our On-Site Utility energy agreements since inception is approximately $328 million using various market assumptions and estimates made by the Company.

Operations

  • We currently operate 123 energy systems and our current backlog consists of 36 energy systems.
  • Total energy production increased to 30.2 million kWh in the first quarter of 2014, making it the highest energy production quarter in the history of the company. 
  • The associated revenue was attributable to the following core markets:

Housing

24

%

Fitness

23

%

Healthcare

22

%

Hospitality

17

%

Education

8

%

Other

6

%

TOTAL

100

%

  • The revenue was distributed by energy type as is outlined in the following table:

Electricity

63

%

Thermal

37

%

TOTAL

100

%

  • We reached agreements with the following properties:
    • 100 kW CHP system with Clifton Hospital in Lancashire, UK, part of the National Health Systems.
    • 860 kW CHP system with seven hotels owned by the Topland Group in UK.
  • We began operations at the following properties:
    • 75 kW CHP system at a facility in New Jersey.
    • 80-ton chiller at a facility in New Jersey.
    • 170-ton chiller at a facility in New Jersey.  
    • 400-ton chiller at a facility in New Jersey.
    • 100 kW CHP system at Bury St Edmunds Leisure Centre in Suffolk, UK.
    • 100 kW CHP system with Clifton Hospital in Lancashire, UK.
  • The company appointed Gabriel Parmese as Chief Financial Officer of both American DG Energy and EuroSite Power. 

American DG Energy will hold its earnings conference call today, May 15, 2014 at 10:00 a.m. Eastern Time. To listen, call (877) 870‑4263 within the U.S., (855) 669-9657 from Canada, or (412) 317-0790 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 the Company 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 Friday, May 23, 2014.  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 10046039.

The earnings conference call will also be webcast live.  To register for and listen to the webcast, go to http://investors.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. Learn more about how American DG Energy reduces energy costs at www.americandg.com or follow us on Facebook and Twitter.

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 three months ending March 31, 2014 and March 31, 2013

(unaudited)


Three Months Ended


March 31,


March, 31


2014


2013

Revenues




Energy revenues

$ 2,396,281


$ 2,014,437

Turnkey & other revenues

131,519


44,875


2,527,800


2,059,312

Cost of sales




Fuel, maintenance and installation

1,707,646


1,383,783

Depreciation expense

481,564


327,688


2,189,210


1,711,471

Gross profit

338,590


347,841

Operating expenses




General and administrative

773,960


638,425

Selling

261,116


412,798

Engineering

263,771


288,568


1,298,847


1,339,791

Loss from operations

(960,257)


(991,950)

Other income (expense)




Interest and other income

14,984


24,144

Interest expense

(354,503)


(298,809)

Loss on extinguishment of debt

(533,177)


-

Change in fair value of warrant liability

(66,113)


110,819


(938,809)


(163,846)

Loss before provision for income taxes

(1,899,066)


(1,155,796)

Provision (benefit) for income taxes

(6,940)


(34,584)

Consolidated net loss

(1,906,006)


(1,190,380)

(Income) loss attributable to the non-controlling interest

240,650


21,329

Net loss attributable to American DG Energy Inc.

$ (1,665,356)


$ (1,169,051)






$ (0.03)


$ (0.02)

Weighted average shares outstanding - basic and diluted

49,817,920


48,490,733





Non-GAAP financial disclosure




Loss from operations

$ (960,257)


$ (991,950)

Depreciation & other non-cash expense

511,981


339,653

Stock based compensation

138,628


136,688

Adjusted EBITDA

(309,648)


(515,609)

Grants from rebates and incentives

-


146,318

Total EBITDA cash outflows *

$ (309,648)


$ (369,291)





* EBITDA cash outflows, for the first quarter of 2014, were $(147,079) for American DG Energy in North America and $(162,569) for EuroSite Power.

 

 

 


CONSOLIDATED BALANCE SHEET

As of March 31, 2014 December 31, 2013

(unaudited)






March 31,


December 31,


2014


2013

ASSETS




Current assets:




Cash and cash equivalents

$ 8,091,779


$ 9,804,291

Accounts receivable, net

1,347,127


988,420

Unbilled revenue

95,718


12,765

Due from related party

130,611


304,288

Inventory

1,937,979


2,246,335

Prepaid and other current assets

350,585


196,939

Total current assets

11,953,799


13,553,038

Property, plant and equipment, net

23,243,184


21,931,289

Accounts receivable, long-term

32,300


45,200

Other assets, long-term

32,019


54,768

TOTAL ASSETS

$ 35,261,302


$ 35,584,295





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$ 1,226,097


$ 871,079

Accrued expenses and other current liabilities

906,499


622,568

Due to related party

431,800


178,216

Total current liabilities

2,564,396


1,671,863

Long-term liabilities:




Convertible debentures

18,589,867


18,272,807

Convertible debt due to related parties

3,605,061


3,425,573

Warrant liability

198,378


132,265

Other long-term liabilities

12,474


15,876

Total liabilities

24,970,176


23,518,384





Stockholders' equity:




American DG Energy Inc. stockholders' equity:




Common Stock

49,818


49,818

Additional paid-in capital

40,234,894


40,110,305

Accumulated deficit

(31,008,873)


(29,343,517)

Total American DG Energy Inc. stockholders' equity

9,275,839


10,816,606

Non-controlling interest

1,015,287


1,249,305

Total stockholders' equity

10,291,126


12,065,911

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$ 35,261,302


$ 35,584,295





Reclassifications: certain prior period balances have been reclassified to conform with current period presentation.

 

CONSOLIDATED STATEMENT OF CASH FLOWS

For three months ending March 31, 2014 and March 31, 2013

(unaudited)




Three Months Ended




March 31,


March 31,




2014


2013

CASH FLOWS FROM OPERATING ACTIVITIES:




Net loss

$      (1,665,356)


$      (1,169,051)



Income (loss) attributable to non-controlling interest

(240,650)


(21,329)

Adjustments to reconcile net loss to net cash provided (used in) operating activities:






Depreciation and amortization

511,981


339,653



Loss on extinguishment of debt

533,177


-



Provision for losses on accounts receivable

-


60,101



Amortization of deferred financing costs

4,830


2,556



Amortization of convertible debt premium

20,948


-



Increase (decrease) in fair value of warrant liability

66,113


(110,819)



Stock-based compensation

138,628


136,688

Changes in operating assets and liabilities





(Increase) decrease in:






Accounts receivable and unbilled revenue

(428,760)


(436,719)



Due from related party

173,677


(825,611)



Inventory

308,356


(128,931)



Prepaid and other current assets

(193,304)


(428,123)


Increase (decrease) in:






Accounts payable

355,018


737,296



Accrued expenses and other current liabilities

283,931


184,197



Due to related party

253,584


30,501



Other long-term liabilities

(3,402)


(3,402)

Net cash provided by (used in) operating activities

118,771


(1,632,993)







CASH FLOWS FROM INVESTING ACTIVITIES:






Purchases of property and equipment

(1,817,875)


(2,114,787)

Net cash used in investing activities

(1,817,875)


(2,114,787)







CASH FLOWS FROM FINANCING ACTIVITIES:






Proceeds from sale of subsidiary common stock, net of costs

-


(4,558)



Principal payments on capital lease obligations

-


(841)



Distributions to non-controlling interest

(13,408)


(69,158)

Net cash provided by financing activities

(13,408)


(74,557)







Net decrease in cash and cash equivalents

(1,712,512)


(3,822,337)

Cash and cash equivalents, beginning of the period

9,804,291


13,362,919

Cash and cash equivalents, end of the period

$        8,091,779


$        9,540,582







 

SOURCE American DG Energy Inc.



RELATED LINKS
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