American DG Energy Reports First Quarter 2015 Financial Performance

Total Gross Margin without Depreciation is 31% for the Period

News provided by

American DG Energy Inc.

May 13, 2015, 09:00 ET

WALTHAM, Mass., May 13, 2015 /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 $2,507,740 in the first quarter of 2015, compared to $2,527,800 for the same period in 2014.  GAAP diluted loss per share (EPS) was $0.02 in the first quarter of 2015, compared with a GAAP diluted loss per share of $0.03 for the same period in 2014.

Major Highlights:

Financial

  • As a result of our site productivity efforts, total non-GAAP gross profit margin without depreciation improved sequentially to 31.1% in the first quarter of 2015, from 27% in the fourth quarter of 2014.
  • Consolidated EBITDA cash outflows improved sequentially and were $430,535 in the first quarter of 2015, versus $735,109 in the fourth quarter of 2014. EBITDA cash outflows were $131,568 for American DG Energy in North America and $298,967 for EuroSite Power in the first quarter of 2014.
  • As a result of our productivity efforts, sites at American DG Energy in North America, produced a margin before depreciation of 35% in the first quarter of 2015 versus 31% in the fourth quarter of 2014 and 32% in the year ago period. 
  • The total revenue value of our On-Site Utility™ energy agreements since inception is approximately $321.5 million using various market assumptions and estimates made by the Company.

Operations

  • We currently operate 126 energy systems and our current backlog consists of 21 energy systems.
  • First quarter revenue was attributable to the following core markets:

Fitness

24%

Hospitality

22%

Housing

20%

Education

19%

Healthcare

11%

Other

4%

TOTAL

100%

  • First quarter revenue by energy type is outlined in the following table:

Electricity

60%

Thermal

40%

TOTAL

100%

  • During Q1 2015 we reached agreements for:
    • A 150 kW CHP system with an apartment complex in the Bronx, New York
    • A 125 kW CHP system with Kingfisher Leisure Centre, Sudbury, UK
    • A 125 kW CHP system with Basingstoke Sports Centre, UK.
  • During Q1 2015 we brought into operation a total of 4 additional systems:
    • 100 kW CHP systems for FJB Hotels installed at both their Haven Hotel and Sandbanks Hotel properties in Poole, UK
    • A second 100kW CHP system at the Wentworth Golf Club, home of the BMW PGA Championship
    • The third CHP system installed as part of our contract with Topland Group for seven systems – 120 kW unit at Menzies Cambridge
  • The total number of systems now under contract is 147, totaling 10,415kW and 4,855 tons of cooling.
  • In total we currently operate 126 systems totaling 8,511kW of installed capacity with a total contract value of $264.8 million.

American DG Energy will hold its earnings conference call today, May 13, 2015 at 2:30 p.m. Eastern Time. To listen, call (866) 364‑3819 within the U.S., (855) 669-9657 from Canada, or (412) 902-4209 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, June 12, 2015.  To listen to the playback, call (877) 344‑7529 within the U.S., (855) 669-9658 from Canada, or (412) 317-0088 outside the U.S. and use Conference Number 10065454.

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 BALANCE SHEETS

(unaudited)



March 31, 2015

December 31, 2014

ASSETS


Current assets:


Cash and cash equivalents

$     8,674,944

$     11,825,915

Accounts receivable, net

1,176,207

1,140,811

Unbilled revenue

26,257

12,533

Due from related party

48,966

39,682

Inventory

1,054,877

1,153,927

Prepaid and other current assets

1,156,074

852,069

Total current assets

12,137,325

15,024,937

Property, plant and equipment, net

25,460,391

24,885,155

Accounts receivable, long-term

-

3,600

Other assets, long-term

82,329

92,148

TOTAL ASSETS

$   37,680,045

$     40,005,840


LIABILITIES AND EQUITY


Current liabilities:


Accounts payable

$        932,528

$          605,530

Accrued expenses and other current liabilities

313,559

485,570

Due to related party

308,386

630,805

Total current liabilities

1,554,473

1,721,905

Long-term liabilities:


Convertible debentures

1,630,399

1,645,444

Convertible debt due to related parties

16,146,981

15,864,215

Warrant liability

382

6,780

Note payable related party

2,000,000

3,000,000

Other long-term liabilities

-

2,227

Total liabilities

21,332,235

22,240,571


Equity:


American DG Energy Inc. stockholders' equity:


Common Stock

50,667

52,140

Additional paid-in capital

49,889,814

49,854,998

Accumulated deficit

(36,444,845)

(35,232,411)

Total American DG Energy Inc. stockholders' equity

13,495,636

14,674,727

Non-controlling interest

2,852,174

3,090,542

Total Equity

16,347,810

17,765,269

TOTAL LIABILITIES AND EQUITY

$   37,680,045

$     40,005,840


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

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

Three Months Ended

March 31, 2015

March 31, 2014

Revenues


Energy revenues

$         2,390,347

$         2,396,281

Turnkey & other revenues

117,393

131,519

2,507,740

2,527,800

Cost of sales


Fuel, maintenance and installation

1,727,653

1,707,646

        Depreciation expense

508,457

481,564

2,236,110

2,189,210

Gross profit

271,630

338,590

Operating expenses


General and administrative

861,062

773,960

Selling

340,693

261,116

Engineering

170,370

263,771

1,372,125

1,298,847

Loss from operations

(1,100,495)

(960,257)

Other income (expense)


Interest and other income

18,266

14,984

Interest expense

(312,456)

(354,503)

Loss on extinguishment of debt

-

(533,177)

Change in fair value of warrant liability

6,398

(66,113)

(287,792)

(938,809)

Loss before provision for income taxes

(1,388,287)

(1,899,066)

Provision for income taxes

(7,355)

(6,940)

Consolidated net loss

(1,395,642)

(1,906,006)

Loss attributable to the non-controlling interest

183,208

240,650

Net loss attributable to American DG Energy Inc.

$       (1,212,434)

$       (1,665,356)

Net loss per share – basic and diluted

$                (0.02)

$                (0.03)

Weighted average shares outstanding - basic and diluted

50,735,381

49,817,920


Non-GAAP financial disclosure


Loss from operations

$      (1,100,495)

$         (960,257)

Depreciation & other non-cash expense

519,501

511,981

Stock based compensation

150,459

138,628

Adjusted EBITDA *

$        (430,535)

$        (309,648)

* EBITDA cash outflows, for the first quarter of 2015, were $131,568 for American DG Energy in North America and $298,967 for EuroSite Power.


CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

Three Months Ended

March 31, 2015

March 31, 2014

CASH FLOWS FROM OPERATING ACTIVITIES:


Net loss

$   (1,212,434)

$  (1,665,356)

Loss attributable to non-controlling interest

(183,208)

(240,650)

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




Depreciation and amortization

519,501

511,981

Loss on extinguishment of debt

-

533,177

Amortization of deferred financing costs

1,726

4,830

Amortization of convertible debt premium

(24,072)

20,948

Increase (decrease) in fair value of warrant liability

(6,398)

66,113

Non-cash interest expense

299,910

-

Stock-based compensation

150,459

138,628

Changes in operating assets and liabilities



(Increase) decrease in:






Accounts receivable and unbilled revenue

(45,520)

(428,760)

Due from related party

(9,287)

173,677

Inventory

99,050

308,356

Prepaid and other current assets

(295,912)

(193,304)

Increase (decrease) in:






Accounts payable

326,998

355,018

Accrued expenses and other current liabilities

(180,128)

283,931

Due to related party

(322,419)

253,584

Other long-term liabilities

(2,227)

(3,402)

Net cash (used in) provided by operating activities

(883,961)

118,771




CASH FLOWS FROM INVESTING ACTIVITIES:




Purchases of property and equipment

(1,094,737)

(1,817,875)

Net cash used in investing activities

(1,094,737)

(1,817,875)




CASH FLOWS FROM FINANCING ACTIVITIES:






Share repurchases

(100,545)

-

Payment on related party loan

(1,000,000)

-

Distributions to non-controlling interest

(71,728)

(13,408)

Net cash used in financing activities

(1,172,273)

(13,408)




Net decrease in cash and cash equivalents

(3,150,971)

(1,712,512)

Cash and cash equivalents, beginning of the period

11,825,915

9,804,291

Cash and cash equivalents, end of the period

$      8,674,944

$    8,091,779

SOURCE American DG Energy Inc.