2014

American DG Energy Reports Second Quarter 2013 Financial Performance Second quarter energy revenue increases by 53% compared to a year ago

WALTHAM, Mass., Aug. 13, 2013 /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 total revenues of $1,769,783 in the second quarter of 2013, compared to $1,192,957 for the same period in 2012, an increase of 48%. GAAP diluted loss per share (EPS) was $(0.02) in the second quarter of 2013, compared with $(0.05) for the same period in 2012.

Major Highlights:

Financial

  • Energy revenue increased by 53% to $1,732,497 in the second quarter of 2013, compared to $1,136,265 for the same period in 2012. Utility rates for thermal energy (such as natural gas) decreased approximately 2% and electricity rates decreased by 4% in the second quarter of 2013 compared to the same period in 2012, which lowered our energy revenue for the period.
  • EBITDA cash outflows for American DG Energy in North America were $137,567 in the second quarter of 2013. The EuroSite Power cash outflows were $446,432; therefore, our consolidated EBITDA cash outflows were $583,999 in the second quarter of 2013.
  • Energy gross profit margin without depreciation was 34% in the second quarter of 2013.
  • EuroSite Power issued 4% Senior Unsecured Convertible Notes Due 2015 and raised $4.0 million; $2.9 million from accredited investors and $1.1 million from conversion of an American DG Energy note.
  • We finished the second quarter of 2013 with approximately $10.8 million in cash.
  • The total revenue value of our On-Site Utility energy agreements since inception is approximately $285 million using various market assumptions and estimates made by the Company.

Operations

  • Total energy production increased by 55% to 24.6 million kWh in the second quarter of 2013 compared to the same period in 2012. This energy production was attributable to the following core markets:

Housing

25

%

Healthcare

23

%

Hospitality

19

%

Fitness

19

%

Education

9

%

Other

5

%

TOTAL

100

%

  • We currently operate 104 energy systems and our current backlog consists of 37 energy systems.
  • We signed the following new contracts
    • 300 kW Combined Heat and Power (CHP) system with two buildings in New Jersey.
    • 100 kW CHP system with Roko Health Club in York, United Kingdom (UK).
    • 100 kW CHP system with Bury St Edmunds Leisure Center in Suffolk, UK.
    • 100 kW CHP system with Leisure Connection for the Dunstable Leisure Centre in Dunstable, UK.
  • We commenced operations at the following:
    • Two 450-ton chillers at Doral Arrowwood Hotel and Conference Center in Rye, New York, in addition to the 375 kW CHP systems already operating at the property since 2011.
    • 75 kW CHP system at YMCA in Greenwich, Connecticut.
    • 100 kW CHP system at Roko Health Club in GiIlingham, UK.
    • 100 kW CHP system at DoubleTree by Hilton in Cambridge, UK.
    • 100 kW CHP system at Roko Health Club in Nottingham, UK.

American DG Energy will hold its earnings conference call today, August 13, 2013 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 13, 2013. 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 10032396.

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. 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 the Three Months Ended June 30, 2013 and June 30, 2012

(unaudited)



Three Months Ended


June 30, 2013


June 30, 2012


(unaudited)


(unaudited)

Revenues




Energy revenues

$

1,732,497



$

1,136,265


Turnkey & other revenues

37,286



56,692



1,769,783



1,192,957


Cost of sales




Fuel, maintenance and installation

1,136,802



694,746


Depreciation expense

329,302



534,888



1,466,104



1,229,634


Gross profit

303,679



(36,677)


Operating expenses




General and administrative

844,418



677,371


Selling

277,388



624,159


Engineering

267,588



300,265



1,389,394



1,601,795


Loss from operations

(1,085,715)



(1,638,472)






Other income (expense), net




Interest and other income

42,144



13,682


Interest expense

(260,537)



(447,477)


Change in fair value of warrant liability

208,187



(44,602)



(10,206)



(478,397)


Loss before provision for state income taxes

(1,095,921)



(2,116,869)


Benefit (provision) for state income taxes

(7,055)



7,140


Consolidated net loss

(1,102,976)



(2,109,729)


(Income) loss attributable to the noncontrolling interest

54,484



60,764


Net loss attributable to American DG Energy Inc.

$

(1,048,492)



$

(2,048,965)






Net loss per share - basic and diluted

$

(0.02)



$

(0.04)


Weighted average shares outstanding - basic and diluted

48,619,404



46,639,141






Non-GAAP financial disclosure




Loss from operations

$

(1,085,715)



$

(1,638,472)


Depreciation expense

355,044



548,673


Stock based compensation

146,672



189,130


Adjusted EBITDA

(583,999)



(900,669)


Grants from rebates and incentives (reduction in basis of property)



260,701


Total cash outflows

$

(583,999)



$

(639,968)


 

CONSOLIDATED STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 2013 and June 30, 2012

(unaudited)



Six Months Ended


June 30, 2013


June 30, 2012


(unaudited)


(unaudited)

Revenues




Energy revenues

$

3,746,934



$

2,587,834


Turnkey & other revenues

82,161



107,525



3,829,095



2,695,359


Cost of sales




Fuel, maintenance and installation

2,520,585



1,697,558


Depreciation expense

656,990



829,584



3,177,575



2,527,142


Gross profit

651,520



168,217


Operating expenses




General and administrative

1,482,843



1,445,323


Selling

690,186



1,044,335


Engineering

556,156



580,077



2,729,185



3,069,735


Loss from operations

(2,077,665)



(2,901,518)






Other income (expense), net




Interest and other income

66,288



26,440


Interest expense

(559,346)



(741,033)


Change in fair value of warrant liability

319,006



(261,336)



(174,052)



(975,929)


Loss before provision for state income taxes

(2,251,717)



(3,877,447)


Provision for state income taxes

(41,639)



(11,962)


Consolidated net loss

(2,293,356)



(3,889,409)


(Income) loss attributable to the noncontrolling interest

75,813



70,751


Net loss attributable to American DG Energy Inc.

$

(2,217,543)



$

(3,818,658)






Net loss per share - basic and diluted

$

(0.05)



$

(0.08)


Weighted average shares outstanding - basic and diluted

48,555,424



46,639,141






Non-GAAP financial disclosure




Loss from operations

$

(2,077,665)



$

(2,901,518)


Depreciation expense

694,697



857,224


Stock based compensation

283,360



379,857


Adjusted EBITDA

(1,099,608)



(1,664,437)


Grants from rebates and incentives (reduction in basis of property)

146,318



260,701


Total cash outflows

$

(953,290)



$

(1,403,736)


 

CONSOLIDATING STATEMENT OF OPERATIONS

For the Three Months Ended June 30, 2013

(unaudited)



Three Months Ended


June 30, 2013


American DG Energy*


EuroSite

Power


Eliminations


Total









Revenues








Energy revenues

$

1,541,743



$

190,754



$



$

1,732,497


Turnkey & other revenues

37,286







37,286



1,579,029



190,754





1,769,783


Cost of sales








Fuel, maintenance and installation

960,401



176,401





1,136,802


Depreciation expense

312,003



17,299





329,302



1,272,404



193,700





1,466,104


Gross profit (loss)

306,625



(2,946)





303,679


Operating expenses








General and administrative

473,135



371,283





844,418


Selling

148,818



128,570





277,388


Engineering

233,086



34,502





267,588



855,039



534,355





1,389,394


Loss from operations

(548,414)



(537,301)





(1,085,715)










Other income (expense), net








Interest and other income

41,576



568





42,144


Interest expense

(240,045)



(20,492)





(260,537)


Change in fair value of warrant liability

208,187







208,187



9,718



(19,924)





(10,206)


Loss before provision for state income taxes

(538,696)



(557,225)





(1,095,921)


Benefit (provision) for state income taxes

(7,055)







(7,055)


Consolidated net loss

(545,751)



(557,225)





(1,102,976)


(Income) loss attributable to the noncontrolling interest

(60,862)





115,346



54,484


Net loss attributable to American DG Energy Inc.

$

(606,613)



$

(557,225)



$

115,346



$

(1,048,492)










Net loss per share - basic and diluted

$

(0.01)







$

(0.02)


Weighted average shares outstanding - basic and diluted

48,619,404







48,619,404










Non-GAAP financial disclosure








Loss from operations

$

(548,414)



$

(537,301)



$



$

(1,085,715)


Depreciation expense

337,745



17,299





355,044


Stock based compensation

73,102



73,570





146,672


Adjusted EBITDA

(137,567)



(446,432)





(583,999)


Grants from rebates and incentives (reduction in basis of property)








Total EBITDA cash outflows

$

(137,567)



$

(446,432)



$



$

(583,999)



* American DG Energy includes related LLC.

 

CONSOLIDATING STATEMENT OF OPERATIONS

For the Three Months Ended June 30, 2012

(unaudited)



Three Months Ended


June 30, 2012


American DG Energy*


EuroSite

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



259,562





677,371


Selling

466,938



157,221





624,159


Engineering

266,273



33,992





300,265



1,151,020



450,775





1,601,795


Loss from operations

(1,195,187)



(443,285)





(1,638,472)










Other income (expense), net








Interest and other income

9,509



4,173





13,682


Interest expense

(447,477)







(447,477)


Change in fair value of warrant liability

(44,602)







(44,602)



(482,570)



4,173





(478,397)


Loss before provision for state income taxes

(1,677,757)



(439,112)





(2,116,869)


Benefit (provision) for state income taxes

7,140







7,140


Consolidated net loss

(1,670,617)



(439,112)





(2,109,729)


(Income) loss attributable to the noncontrolling interest

(25,589)





86,353



60,764


Net loss attributable to American DG Energy Inc.

$

(1,696,206)



$

(439,112)



$

86,353



$

(2,048,965)










Net loss per share - basic and diluted

$

(0.04)







$

(0.04)


Weighted average shares outstanding - basic and diluted

46,639,141







46,639,141










Non-GAAP financial disclosure








Loss from operations

$

(1,195,187)



$

(443,285)



$



$

(1,638,472)


Depreciation expense

547,963



710





548,673


Stock based compensation

67,108



122,022





189,130


Adjusted EBITDA

(580,116)



(320,553)





(900,669)


Grants from rebates and incentives (reduction in basis of property)

260,701







260,701


Total EBITDA cash outflows

$

(319,415)



$

(320,553)



$



$

(639,968)



* American DG Energy includes related LLC.

 

CONSOLIDATING STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 2013

(unaudited)



Six Months Ended


June 30, 2013


American DG Energy*


EuroSite

Power


Eliminations


Total









Revenues








Energy revenues

$

3,439,072



$

307,862



$



$

3,746,934


Turnkey & other revenues

82,161







82,161



3,521,233



307,862





3,829,095


Cost of sales








Fuel, maintenance and installation

2,249,714



270,871





2,520,585


Depreciation expense

624,527



32,463





656,990



2,874,241



303,334





3,177,575


Gross profit (loss)

646,992



4,528





651,520


Operating expenses








General and administrative

916,294



566,549





1,482,843


Selling

380,398



309,788





690,186


Engineering

489,945



66,211





556,156



1,786,637



942,548





2,729,185


Loss from operations

(1,139,645)



(938,020)





(2,077,665)










Other income (expense), net








Interest and other income

64,490



1,798





66,288


Interest expense

(533,601)



(25,745)





(559,346)


Change in fair value of warrant liability

319,006







319,006



(150,105)



(23,947)





(174,052)


Loss before provision for state income taxes

(1,289,750)



(961,967)





(2,251,717)


Benefit (provision) for state income taxes

(41,639)







(41,639)


Consolidated net loss

(1,331,389)



(961,967)





(2,293,356)


(Income) loss attributable to the noncontrolling interest

(123,315)





199,128



75,813


Net loss attributable to American DG Energy Inc.

$

(1,454,704)



$

(961,967)



$

199,128



$

(2,217,543)










Net loss per share - basic and diluted

$

(0.03)







$

(0.05)


Weighted average shares outstanding - basic and diluted

48,555,424







48,555,424










Non-GAAP financial disclosure








Loss from operations

$

(1,139,645)



$

(938,020)



$



$

(2,077,665)


Depreciation expense

662,234



32,463





694,697


Stock based compensation

181,995



101,365





283,360


Adjusted EBITDA

(295,416)



(804,192)





(1,099,608)


Grants from rebates and incentives (reduction in basis of property)

146,318







146,318


Total EBITDA cash outflows

$

(149,098)



$

(804,192)



$



$

(953,290)



* 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 Energy*


EuroSite

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

829,584







829,584



2,507,038



20,104





2,527,142


Gross profit (loss)

160,727



7,490





168,217


Operating expenses








General and administrative

869,516



575,807





1,445,323


Selling

749,340



294,995





1,044,335


Engineering

546,085



33,992





580,077



2,164,941



904,794





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

(741,033)







(741,033)


Change in fair value of warrant liability

(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)


Benefit (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

46,639,141







46,639,141










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 (reduction in basis of property)

260,701







260,701


Total EBITDA cash outflows

$

(759,134)



$

(644,602)



$



$

(1,403,736)



* American DG Energy includes related LLC.

 

CONSOLIDATED BALANCE SHEETS

As of June 30, 2013 and December 31, 2012

(unaudited)



June 30,
2013


December 31,
2012

ASSETS




Current assets:




Cash and cash equivalents

$

10,815,833



$

13,362,919


Accounts receivable, net

871,243



761,678


Unbilled revenue

19,437



19,492


Due from related party

678,340



18,372


Inventory

2,974,270



2,920,444


Prepaid and other current assets

330,296



308,164


Total current assets

15,689,419



17,391,069


Property, plant and equipment, net

20,144,242



17,253,648


Accounts receivable, long-term

36,000



46,800


Other assets, long-term

42,104



47,216


TOTAL ASSETS

$

35,911,765



$

34,738,733






LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$

505,214



$

765,618


Accrued expenses and other current liabilities

566,879



532,420


Due to related party

55,955



41,812


Capital lease obligations

1,683



3,365


Total current liabilities

1,129,731



1,343,215


Long-term liabilities:




Convertible debentures

22,300,000



19,400,000


Warrant liability

70,448



389,454


Capital lease obligations, long-term




Other long-term liabilities

22,640



29,444


Total liabilities

23,522,819



21,162,113






Stockholders' equity:




American DG Energy Inc. stockholders' equity:




Common stock, $0.001 par value; 100,000,000 shares authorized; 48,807,195 and 48,490,733 issued and outstanding at June 30, 2013 and December 31, 2012, respectively

48,807



48,491


Additional paid-in capital

37,787,431



37,001,439


Accumulated deficit

(26,674,388)



(24,456,845)


Total American DG Energy Inc. stockholders' equity

11,161,850



12,593,085


Noncontrolling interest

1,227,096



983,535


Total stockholders' equity

12,388,946



13,576,620


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

35,911,765



$

34,738,733


 

CONSOLIDATED STATEMENT OF CASH FLOWS

For the Six Months Ended June 30, 2013 and June 30, 2012

(unaudited)



Six Months Ended


June 30, 2013


June 30, 2012


(unaudited)


(unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES:




Net loss

$

(2,217,543)



$

(3,818,658)


Income (loss) attributable to noncontrolling interest

(75,813)



(70,751)


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




Depreciation and amortization

694,697



857,224


Provision for losses on accounts receivable

64,134



74,291


Amortization of deferred financing costs

5,112



1,176


Increase (decrease) in fair value of warrant liability

(319,006)



261,336


Noncash interest expense

528,489



712,921


Stock-based compensation

283,360



379,857


Changes in operating assets and liabilities:




(Increase) decrease in:




Accounts receivable and unbilled revenue

(162,844)



(81,911)


Due from related party

(659,968)



(47,360)


Inventory

(53,826)



(491,118)


Prepaid and other current assets

3,312



(59,013)


Increase (decrease) in:




Accounts payable

(260,404)



(34,929)


Accrued expenses and other current liabilities

34,459



81,661


Due to related party

14,143



267,486


Other long-term liabilities

(6,804)



(6,804)


Net cash used in operating activities

(2,128,502)



(1,974,592)






CASH FLOWS FROM INVESTING ACTIVITIES:




Purchases of property and equipment

(3,123,791)



(933,687)


Net cash used in investing activities

(3,123,791)



(933,687)






CASH FLOWS FROM FINANCING ACTIVITIES:




Proceeds from issuance of subsidiary convertible debentures, net of costs

2,874,556




Proceeds from issuance of warrants



7,500


Proceeds from sale of common stock, net of costs



1,560,000


Proceeds from sale of subsidiary common stock, net of costs

(4,558)




Proceeds from exercise of stock options



114,882


Purchases of common stock, net of costs



(750,000)


Principal payments on capital lease obligations

(1,682)



(1,682)


Distributions to noncontrolling interest

(163,109)



(144,092)


Net cash provided by financing activities

2,705,207



786,608






Net (decrease) increase in cash and cash equivalents

(2,547,086)



(2,121,671)


Cash and cash equivalents, beginning of the period

13,362,919



17,801,025


Cash and cash equivalents, end of the period

$

10,815,833



$

15,679,354


 

SOURCE American DG Energy Inc.



RELATED LINKS
http://www.americandg.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.