2014

American DG Energy Reports Second Quarter 2012 Financial Performance Backlog increases to 33 energy systems compared to 9 systems a year ago

Energy gross profit margin without depreciation increased to 39.2%

WALTHAM, Mass., Aug. 14, 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 $1,136,265 in the second quarter of 2012, compared to $1,435,025 in the second quarter of 2011.

Total revenues were $1,192,957 in the second quarter of 2012, compared to $1,480,461 in the second quarter of 2011. GAAP diluted loss per share (EPS) was $(0.05) in the second quarter of 2012, compared to $(0.01) in the second quarter of 2011, and GAAP operating loss including EuroSite Power Inc. was $(1,700,779) in the second quarter of 2012, compared to operating loss of $(522,761) in the second quarter of 2011.

Major Highlights:

Operations

  • We operated 89 energy systems compared to 77 in the second quarter of 2011.
  • Our current backlog consists of 33 energy systems compared to 9 in the second quarter of 2011.
  • We reached agreements with the following properties:
    • YMCA in Greenwich, Connecticut – provide a 75 kW Combined Heat and Power (CHP) system and produce space heat and hot water for their new 700,000 gallon swimming pool.
    • Luna Park Housing Corporation in Brooklyn, New York – provide five 100 kW CHP systems and provide all of their domestic hot water from five hot water heaters. Luna Park is a residential complex consisting of five buildings with 1,600 units and is home to approximately 6,000 residents.
    • Doubletree by Hilton Dunblane Hydro hotel in the United Kingdom (UK) – extended our agreement with The Ability Group by adding a contract to supply clean energy by installing and operating a CHP system which will produce up to 200 kW of power.
    • Cedar Court Hotel Huddersfield in Yorkshire UK – replace the hotel's existing aged and inefficient system with a state-of-the-art 100 kW CHP system.
  • We began operation at the following properties:
    • Started operating a 100 kW CHP system at Club Fit in Jefferson Valley, New York, our second Club Fit location.
    • Started operating a 75 kW CHP system at Governor Paterson Towers in Governor, New Jersey, a 225 unit, 30 story senior living center.
    • Started operating a 100 kW CHP system at the DoubleTree Hotel in Tarrytown, New York, a 247 room full service, upscale property which is our second DoubleTree property in the US.
    • EuroSite Power started operating a highly efficient 122 kW CHP system at the Hilton Liverpool in the UK, that will produce energy in the form of electricity, space heat and domestic hot water for the hotel's guest rooms and public areas.
    • EuroSite Power booked its first revenue for Abbeycroft Leisure at the Haverhill Leisure Centre in Suffolk UK.
  • We expanded our sales and marketing effort worldwide by adding sales people, broadening our distribution and geographic reach and implementing marketing programs targeting potential customers, especially large property owners.

Financial

  • Our energy revenue decreased by 20.8% in the second quarter of 2012 compared to the same period in 2011, due to lower natural gas and electric utility rates that significantly decreased during the second quarter of 2012 compared to the same period in 2011.
  • Energy gross profit margin without depreciation increased to 39.2% compared to 38.3% in the second quarter of 2011.
  • Our total energy production decreased to 15,798,668 kWh, or 9.5%, compared to 17,457,971 kWh in the second quarter of 2011 due to the decrease in output because of milder temperatures requiring less heat and hot water during the period.
  • We received $260,701 in rebates and incentives during the second quarter.
  • Our total cash outflows were $702,275, of which $382,860 were related to expenses at EuroSite Power and the remaining $319,415 were related to the expansion of sales and marketing activity at American DG Energy.
  • The total value of our current On-Site Utility energy agreements is approximately $236.0 million.
  • We finished the quarter with approximately $15.7 million in cash.

Recent Highlights:

American DG Energy will hold its earnings conference call today, August 14, 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 Friday, September 14, 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 10017224.

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 June 30, 2012 and June 30, 2011






Three Months Ended



June 30,


June 30,



2012


2011



(unaudited)


(unaudited)

Revenues





Energy revenues

$         1,136,265


$         1,435,025


Turnkey & other revenues

56,692


45,436



1,192,957


1,480,461

Cost of sales





Fuel, maintenance and installation

694,746


894,928


Depreciation expense

534,888


314,634



1,229,634


1,209,562

Gross profit (loss)

(36,677)


270,899






Operating expenses





General and administrative

614,454


523,503


Selling

749,383


104,296


Engineering

300,265


165,861



1,664,102


793,660

Loss from operations

(1,700,779)


(522,761)






Other income (expense), net





Interest and other income

13,682


8,622


Interest expense

(447,477)


(74,558)


Change in fair value of warrant liability

(44,602)


188,367



(478,397)


122,431






Loss before provision for state income taxes

(2,179,176)


(400,330)

Benefit (provision) for state income taxes

7,140


(5,509)

Consolidated net loss

(2,172,036)


(405,839)






(Income) loss attributable to the noncontrolling interest

60,764


(19,145)

Net loss attributable to American DG Energy Inc.

$       (2,111,272)


$          (424,984)






Net loss per share - basic and diluted

$                (0.05)


$                (0.01)






Weighted average shares outstanding -




basic and diluted

46,639,141


45,578,201






Non-GAAP financial disclosure





Loss from operations

$       (1,700,779)


$          (522,761)


Depreciation expense

548,673


324,889


Stock based compensation

189,130


124,834


Adjusted EBITDA

(962,976)


(73,038)


Grants from rebates and incentives

260,701


219,589


Total EBITDA cash (outflows) inflows

$          (702,275)


$            146,551


 

 

CONSOLIDATED STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 2012 and June 30, 2011






Six Months Ended



June 30,


June 30,



2012


2011



(unaudited)


(unaudited)

Revenues





Energy revenues

$          2,587,834


$          2,881,177


Turnkey & other revenues

107,525


254,004



2,695,359


3,135,181

Cost of sales





Fuel, maintenance and installation

1,697,558


2,082,927


Depreciation expense

829,584


603,028



2,527,142


2,685,955

Gross profit

168,217


449,226






Operating expenses





General and administrative

1,445,323


1,024,623


Selling

1,044,335


233,950


Engineering

580,077


314,266



3,069,735


1,572,839

Loss from operations

(2,901,518)


(1,123,613)






Other income (expense)





Interest and other income

26,440


19,981


Interest expense

(741,033)


(103,604)


Change in fair value of warrant liability

(261,336)


383,995



(975,929)


300,372






Loss before provision for state income taxes

(3,877,447)


(823,241)

Provision for state income taxes

(11,962)


(17,112)

Consolidated net loss

(3,889,409)


(840,353)






(Income) loss attributable to the noncontrolling interest

70,751


(63,542)

Net loss attributable to American DG Energy Inc.

$        (3,818,658)


$           (903,895)






Net loss per share - basic and diluted

$                 (0.08)


$                 (0.02)






Weighted average shares outstanding -




basic and diluted

46,191,967


45,551,891






Non-GAAP financial disclosure





Loss from operations

$        (2,901,518)


$        (1,123,613)


Depreciation expense

857,224


622,383


Stock based compensation

379,857


292,245


Adjusted EBITDA

(1,664,437)


(208,985)


Grants from rebates and incentives

260,701


327,138


Total EBITDA cash (outflows) inflows

$        (1,403,736)


$             118,153


 

 

CONSOLIDATING STATEMENT OF OPERATIONS

For the Three Months Ended June 30, 2012

(unaudited)






Three Months Ended June 30, 2012



American DG

EuroSite





Energy*

Power

Eliminations

Total







Revenues






Energy revenues

$         1,136,265

$                   -

$               -

$         1,136,265


Turnkey & other revenues

29,098

27,594

-

56,692



1,165,363

27,594

-

1,192,957

Cost of sales






Fuel, maintenance and installation

674,642

20,104

-

694,746


Depreciation expense

534,888

-

-

534,888



1,209,530

20,104

-

1,229,634

Gross profit (loss)

(44,167)

7,490

-

(36,677)







Operating expenses






General and administrative

417,809

196,645

-

614,454


Selling

466,938

282,445

-

749,383


Engineering

266,273

33,992

-

300,265



1,151,020

513,082

-

1,664,102

Loss from operations

(1,195,187)

(505,592)

-

(1,700,779)







Other income (expense), net






Interest and other income

9,509

4,173

-

13,682


Interest expense (non-cash)

(447,477)

-

-

(447,477)


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

(44,602)

-

-

(44,602)



(482,570)

4,173

-

(478,397)







Loss before provision for state income taxes

(1,677,757)

(501,419)

-

(2,179,176)

Benefit for state income taxes

7,140

-

-

7,140

Consolidated net loss

(1,670,617)

(501,419)

-

(2,172,036)







(Income) loss attributable to the noncontrolling interest

(25,589)

-

86,353

60,764

Net loss attributable to American DG Energy Inc.

$       (1,696,206)

$       (501,419)

$       86,353

$       (2,111,272)







Net loss per share - basic and diluted

$                (0.04)



$                (0.05)







Weighted average shares outstanding -





basic and diluted

46,639,141



46,639,141







Non-GAAP financial disclosure






Loss from operations

$       (1,195,187)

$       (505,592)

$               -

$       (1,700,779)


Depreciation expense

547,963

710

-

548,673


Stock based compensation

67,108

122,022

-

189,130


Adjusted EBITDA

(580,116)

(382,860)

-

(962,976)


Grants from rebates and incentives

260,701

-

-

260,701


Total EBITDA cash outflows

$          (319,415)

$       (382,860)

$               -

$          (702,275)

*American DG Energy includes related LLC.

 

 

CONSOLIDATING STATEMENT OF OPERATIONS

For the Three Months Ended June 30, 2011

(unaudited)






Three Months Ended June 30, 2011



American DG

EuroSite





Energy*

Power

Eliminations

Total







Revenues






Energy revenues

$        1,435,025

$                 -

$               -

$        1,435,025


Turnkey & other revenues

45,436

-

-

45,436



1,480,461

-

-

1,480,461

Cost of sales






Fuel, maintenance and installation

894,928

-

-

894,928


Depreciation expense

314,634

-

-

314,634



1,209,562

-

-

1,209,562

Gross profit

270,899

-

-

270,899







Operating expenses






General and administrative

341,422

182,081

-

523,503


Selling

104,296

-

-

104,296


Engineering

165,861

-

-

165,861



611,579

182,081

-

793,660

Loss from operations

(340,680)

(182,081)

-

(522,761)







Other income (expense), net






Interest and other income

8,622

-

-

8,622


Interest expense (non-cash)

(74,558)

-

-

(74,558)


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

188,367

-

-

188,367



122,431

-

-

122,431







Loss before provision for state income taxes

(218,249)

(182,081)

-

(400,330)

Provision for state income taxes

(5,509)

-

-

(5,509)

Consolidated net loss

(223,758)

(182,081)

-

(405,839)







(Income) loss attributable to the noncontrolling interest

(48,105)

-

28,960

(19,145)

Net loss attributable to American DG Energy Inc.

$         (271,863)

$      (182,081)

$       28,960

$         (424,984)







Net loss per share - basic and diluted

$               (0.01)



$               (0.01)







Weighted average shares outstanding -





basic and diluted

45,578,201



45,578,201







Non-GAAP financial disclosure






Loss from operations

$         (340,680)

$      (182,081)

$               -

$         (522,761)


Depreciation expense

324,889

-

-

324,889


Stock based compensation

15,078

109,756

-

124,834


Adjusted EBITDA

(713)

(72,325)

-

(73,038)


Grants from rebates and incentives

219,589

-

-

219,589


Total EBITDA cash outflows

$           218,876

$        (72,325)

$               -

$           146,551

*American DG Energy includes related LLC.


 

 

CONSOLIDATING STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 2012

(unaudited)






Six Months Ended June 30, 2012



American DG

EuroSite





Energy*

Power

Eliminations

Total







Revenues






Energy revenues

$         2,587,834

$                   -

$               -

$         2,587,834


Turnkey & other revenues

79,931

27,594

-

107,525



2,667,765

27,594

-

2,695,359

Cost of sales






Fuel, maintenance and installation

1,677,454

20,104

-

1,697,558


Depreciation expense

828,874

710

-

829,584



2,506,328

20,814

-

2,527,142

Gross profit

161,437

6,780

-

168,217







Operating expenses






General and administrative

933,143

512,180

-

1,445,323


Selling

686,423

357,912

-

1,044,335


Engineering

546,085

33,992

-

580,077



2,165,651

904,084

-

3,069,735

Loss from operations

(2,004,214)

(897,304)

-

(2,901,518)







Other income (expense), net






Interest and other income

17,299

9,141

-

26,440


Interest expense (non-cash)

(741,033)

-

-

(741,033)


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

(261,336)

-

-

(261,336)



(985,070)

9,141

-

(975,929)







Loss before provision for state income taxes

(2,989,284)

(888,163)

-

(3,877,447)

Provision for state income taxes

(11,962)

-

-

(11,962)

Consolidated net loss

(3,001,246)

(888,163)

-

(3,889,409)







(Income) loss attributable to the noncontrolling interest

(82,206)

-

152,957

70,751

Net loss attributable to American DG Energy Inc.

$       (3,083,452)

$       (888,163)

$     152,957

$       (3,818,658)







Net loss per share - basic and diluted

$                (0.07)



$                (0.08)







Weighted average shares outstanding -





basic and diluted

46,191,967



46,191,967







Non-GAAP financial disclosure






Loss from operations

$       (2,004,214)

$       (897,304)

$               -

$       (2,901,518)


Depreciation expense

856,514

710

-

857,224


Stock based compensation

127,865

251,992

-

379,857


Adjusted EBITDA

(1,019,835)

(644,602)

-

(1,664,437)


Grants from rebates and incentives

260,701

-

-

260,701


Total EBITDA cash outflows

$          (759,134)

$       (644,602)

$               -

$       (1,403,736)

*American DG Energy includes related LLC.

 

 

CONSOLIDATING STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 2011

(unaudited)






Six Months Ended June 30, 2011



American DG

EuroSite





Energy*

Power

Eliminations

Total







Revenues






Energy revenues

$        2,881,177

$                 -

$               -

$        2,881,177


Turnkey & other revenues

254,004

-

-

254,004



3,135,181

-

-

3,135,181

Cost of sales






Fuel, maintenance and installation

2,082,927

-

-

2,082,927


Depreciation expense

603,028

-

-

603,028



2,685,955

-

-

2,685,955

Gross profit

449,226

-

-

449,226







Operating expenses






General and administrative

704,507

320,116

-

1,024,623


Selling

233,950

-

-

233,950


Engineering

314,266

-

-

314,266



1,252,723

320,116

-

1,572,839

Loss from operations

(803,497)

(320,116)

-

(1,123,613)







Other income (expense), net






Interest and other income

19,981

-

-

19,981


Interest expense (non-cash)

(103,604)

-

-

(103,604)


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

383,995

-

-

383,995



300,372

-

-

300,372







Loss before provision for state income taxes

(503,125)

(320,116)

-

(823,241)

Provision for state income taxes

(17,112)

-

-

(17,112)

Consolidated net loss

(520,237)

(320,116)

-

(840,353)







(Income) loss attributable to the noncontrolling interest

(119,307)

-

55,765

(63,542)

Net loss attributable to American DG Energy Inc.

$         (639,544)

$      (320,116)

$       55,765

$         (903,895)







Net loss per share - basic and diluted

$               (0.01)



$               (0.02)







Weighted average shares outstanding -





basic and diluted

45,551,891



45,551,891







Non-GAAP financial disclosure






Loss from operations

$         (803,497)

$      (320,116)

$               -

$      (1,123,613)


Depreciation expense

622,383

-

-

622,383


Stock based compensation

92,194

200,051

-

292,245


Adjusted EBITDA

(88,920)

(120,065)

-

(208,985)


Grants from rebates and incentives

327,138

-

-

327,138


Total EBITDA cash outflows

$           238,218

$      (120,065)

$               -

$           118,153

*American DG Energy includes related LLC.

 

 

CONSOLIDATED BALANCE SHEETS

As of June 30, 2012 and December 31, 2011 (unaudited)








June 30,


December 31,



2012


2011






ASSETS




Current assets:





Cash and cash equivalents

$        15,679,354


$       17,801,025


Accounts receivable, net

860,965


879,630


Unbilled revenue

15,910


18,825


Due from related party

68,500


21,140


Inventory

1,125,238


634,120


Prepaid and other current assets

381,289


322,276

Total current assets

18,131,256


19,677,016






Property, plant and equipment, net

14,766,580


14,690,117

Accounts receivable, long-term

111,864


82,664

Other assets, long-term

52,328


53,504






TOTAL ASSETS

$        33,062,028


$       34,503,301






LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:





Accounts payable

$             485,679


$            520,608


Accrued expenses and other current liabilities

670,693


589,032


Due to related party

581,333


313,847


Capital lease obligations

3,365


3,365

Total current liabilities

1,741,070


1,426,852






Long-term liabilities:





Convertible debentures

19,400,000


19,400,000


Warrant liability

510,897


249,561


Capital lease obligations, long-term

1,683


3,365


Other long-term liabilities

36,248


43,052

Total liabilities

21,689,898


21,122,830






Stockholders' equity:




American DG Energy Inc. shareholders' equity:





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





  authorized; 46,908,460 and 46,001,404 issued and outstanding





  at June 30, 2012 and December 31, 2011, respectively

46,908


46,001


Additional paid-in capital

32,380,226


30,399,370


Accumulated deficit

(21,749,716)


(17,931,058)


Total American DG Energy Inc. stockholders' equity

10,677,418


12,514,313

Noncontrolling interest

694,712


866,158


Total stockholders' equity

11,372,130


13,380,471






TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$        33,062,028


$       34,503,301

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

For the Six Months Ended June 30, 2012 and June 30, 2011








Six Months Ended




June 30,


June 30,




2012


2011




(unaudited)


(unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES:




Net loss

$      (3,818,658)


$         (903,895)



Income (loss) attributable to noncontrolling interest

(70,751)


63,542

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






Depreciation and amortization

857,224


622,383



Provision for losses on accounts receivable

74,291


1,712



Amortization of deferred financing costs

1,176


2,256



Increase (decrease) in fair value of warrant liability

261,336


(383,995)



Noncash interest expense

712,921


-



Stock-based compensation

379,857


292,245

Changes in operating assets and liabilities





(Increase) decrease in:






Restricted cash

-


65,790



Accounts receivable and unbilled revenue

(81,911)


(284,903)



Due from related party

(47,360)


(26,802)



Inventory

(491,118)


(67,634)



Prepaid and other current assets

(59,013)


(58,590)


Increase (decrease) in:






Accounts payable

(34,929)


35,958



Accrued expenses and other current liabilities

81,661


(47,441)



Due to related party

267,486


49,856



Other long-term liabilities

(6,804)


(48,484)

Net cash used in operating activities

(1,974,592)


(688,002)







CASH FLOWS FROM INVESTING ACTIVITIES:






Purchases of property and equipment

(933,687)


(1,017,742)

Net cash used in investing activities

(933,687)


(1,017,742)







CASH FLOWS FROM FINANCING ACTIVITIES:






Proceeds from issuance of convertible debentures

-


10,100,000



Proceeds from sale of common stock, net of costs

1,560,000


-



Proceeds from sale of subsidiary common stock, net of costs

-


1,238,401



Proceeds from exercise of stock options

114,882


26,798



Proceeds from issuance of common stock warrants

7,500


-



Purchases of common stock, net of costs

(750,000)


-



Principal payments on capital lease obligations

(1,682)


(1,682)



Cancellation of restricted stock

-


(20)



Distributions to noncontrolling interest

(144,092)


(171,461)

Net cash provided by financing activities

786,608


11,192,036







Net increase in cash and cash equivalents

(2,121,671)


9,486,292

Cash and cash equivalents, beginning of the period

17,801,025


3,921,054

Cash and cash equivalents, end of the period

$      15,679,354


$      13,407,346

 

SOURCE American DG Energy Inc.



RELATED LINKS
http://www.americandg.com

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