American DG Energy Reports Third Quarter 2012 Financial Performance Current backlog increases to 39 energy systems compared to 8 systems a year ago

WALTHAM, Mass., Nov. 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 $1,337,831 in the third quarter of 2012, compared to $1,389,159 in the third quarter of 2011.

Total revenues were $1,400,255 in the third quarter of 2012, compared to $1,418,411 in the third quarter of 2011. GAAP diluted loss per share (EPS) was $(0.03) in the third quarter of 2012, compared to $(0.02) in the third quarter of 2011, and GAAP operating loss including EuroSite Power Inc. was $(900,282) in the third quarter of 2012, compared to operating loss of $(1,132,620) in the third quarter of 2011.

Major Highlights:

Operations

  • We operated 90 energy systems compared to 79 in the third quarter of 2011.
  • Our current backlog consists of 39 energy systems compared to 8 in the third quarter of 2011.
  • We reached agreements with the following properties:
    • Luna Park Housing Corporation in Brooklyn, New York – to provide five 100 kW Combined Heat and Power (CHP) systems and five hot water heaters for their domestic hot water.
    • Cumberland County Jail, Portland, Maine – to provide two 75 kW CHP systems and produce space heat, hot water and electricity within the County Jail complex.
    • Doral Arrowwood Hotel Conference Center, Rye Brook, New York – to provide two 450-ton chillers for their central plant cooling systems.
    • Wentworth Club, Surrey, United Kingdom – to provide two 100 kW CHP systems at the Tennis & Health Club and at the main Clubhouse.
    • Best Western, Cedar Court Hotel, Harrogate, United Kindgom – to provide a 100 kW CHP system to produce electricity, heating and domestic hot water; Cedar Court Grand Hotel & Spa, York, United Kingdom – to provide a 100 kW CHP system to produce electricity, heating and domestic hot water. 
    • Roko Health Clubs, in Chiswick, Gillingham, Nottingham and Portsmouth, United Kingdom – to provide four 100 kW CHP systems to produce electricity, heating and domestic hot water. 
  • We began operations at the following properties:
    • DoubleTree Hotel, Tarrytown, New York – started operating a 100 kW CHP system to supply electricity, space heat and domestic hot water.
    • Metro YMCA, Wayne, New Jersey – started operating 450-ton chillers to supply cooling.
    • Hilton Hotel, Liverpool, United Kingdom – started operating a 225 kW system to produce energy in the form of electricity, space heat and domestic hot water.
    • The Hampton by Hilton, Luton, United Kingdom – started operating a CHP system to supply clean energy.

Financial

  • Our total energy production increased to 17,271,478 kWh, or 5.9%, compared to 16,306,945 kWh in the third quarter of 2011.
  • Utility rates for natural gas decreased over 20% during the third quarter of 2012 compared to the same period in 2011, resulting in a 3.7% energy revenue decrease.
  • Energy gross profit margin without depreciation was 47.6% compared to 47.8% in the third quarter of 2011.
  • EBITDA cash outflows for American DG Energy were $105,068 and for EuroSite Power were $260,677 during the third quarter of 2012. Our consolidated EBITDA cash outflow was $365,745 primarily due to expenses at EuroSite Power and the expansion of sales and marketing activity at American DG Energy.
  • We have received a total of $542,701 in rebates and incentives in 2012.
  • The total revenue value of our current On-Site Utility energy agreements is approximately $255 million.
  • We finished the quarter with approximately $15.8 million in cash.

American DG Energy will hold its earnings conference call today, November 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, December 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 10020269.

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 September 30, 2012 and September 30, 2011

 


Three Months Ended


September 30, 2012


September 30, 2011


(unaudited)


(unaudited)

Revenues




Energy revenues

$

1,337,831



$

1,389,159


Turnkey & other revenues

62,424



29,252



1,400,255



1,418,411


Cost of sales




Fuel, maintenance and installation

733,727



716,806


Depreciation expense

301,813



318,903



1,035,540



1,035,709


Gross profit

364,715



382,702


Operating expenses




General and administrative

481,707



593,558


Selling

512,885



699,898


Engineering

270,405



221,866



1,264,997



1,515,322


Loss from operations

(900,282)



(1,132,620)


Other income (expense), net




Interest and other income

17,547



11,433


Interest expense

(293,556)



(142,772)


Change in fair value of warrant liability

(82,293)



125,668



(358,302)



(5,671)


Loss before provision for state income taxes

(1,258,584)



(1,138,291)


Benefit (provision) for state income taxes

(9,440)



41


Consolidated net loss

(1,268,024)



(1,138,250)


Loss attributable to the noncontrolling interest

8,534



28,734


Net loss attributable to American DG Energy Inc.

$

(1,259,490)



$

(1,109,516)






Net loss per share - basic and diluted

$

(0.03)



$

(0.02)


Weighted average shares outstanding - basic and diluted

47,653,786



45,834,904






Non-GAAP financial disclosure




Loss from operations

$

(900,282)



$

(1,132,620)


Depreciation expense

317,986



332,368


Stock based compensation

216,551



186,960


Adjusted EBITDA

(365,745)



(613,292)


Grants from rebates and incentives




Total EBITDA cash (outflows) inflows

$

(365,745)



$

(613,292)


 

CONSOLIDATED STATEMENT OF OPERATIONS
For the Nine Months Ended September 30, 2012 and September 30, 2011

 


Nine Months Ended


September 30, 2012


September 30, 2011


(unaudited)


(unaudited)

Revenues




Energy revenues

$

3,925,665



$

4,270,336


Turnkey & other revenues

169,949



283,256



4,095,614



4,553,592


Cost of sales




Fuel, maintenance and installation

2,431,285



2,799,733


Depreciation expense

1,131,397



921,931



3,562,682



3,721,664


Gross profit

532,932



831,928


Operating expenses




General and administrative

1,927,030



1,618,181


Selling

1,557,220



933,848


Engineering

850,482



536,132



4,334,732



3,088,161


Loss from operations

(3,801,800)



(2,256,233)


Other income (expense)




Interest and other income

43,987



31,414


Interest expense

(1,034,589)



(246,376)


Change in fair value of warrant liability

(343,629)



509,663



(1,334,231)



294,701


Loss before provision for state income taxes

(5,136,031)



(1,961,532)


Provision for state income taxes

(21,402)



(17,071)


Consolidated net loss

(5,157,433)



(1,978,603)


(Income) loss attributable to the noncontrolling interest

79,285



(34,808)


Net loss attributable to American DG Energy Inc.

$

(5,078,148)



$

(2,013,411)






Net loss per share - basic and diluted

$

(0.11)



$

(0.04)


Weighted average shares outstanding - basic and diluted

46,716,914



45,647,265






Non-GAAP financial disclosure




Loss from operations

$

(3,801,800)



$

(2,256,233)


Depreciation expense

1,175,210



954,751


Stock based compensation

596,408



479,205


Adjusted EBITDA

(2,030,182)



(822,277)


Grants from rebates and incentives

260,701



327,138


Total EBITDA cash (outflows) inflows

$

(1,769,481)



$

(495,139)


 

CONSOLIDATING STATEMENT OF OPERATIONS
For the Three Months Ended September 30, 2012
(unaudited)

 


Three Months Ended September 30, 2012


American DG

Energy*


EuroSite

Power


Eliminations


Total

Revenues








Energy revenues

$

1,332,237



$

5,594





$

1,337,831


Turnkey & other revenues

44,026



18,398





62,424



1,376,263



23,992





1,400,255


Cost of sales








Fuel, maintenance and

installation

715,638



18,089





733,727


Depreciation expense

301,813







301,813



1,017,451



18,089





1,035,540


Gross profit

358,812



5,903





364,715


Operating expenses








General and administrative

278,163



203,544





481,707


Selling

345,716



167,169





512,885


Engineering

248,965



21,440





270,405



872,844



392,153





1,264,997


Loss from operations

(514,032)



(386,250)





(900,282)


Other income (expense), net








Interest and other income

14,550



2,997





17,547


Interest expense (non-cash)

(293,556)







(293,556)


Change in fair value of warrant

liability (non-cash)

(82,293)







(82,293)



(361,299)



2,997





(358,302)


Loss before provision for state income taxes

(875,331)



(383,253)





(1,258,584)


Provision for state income taxes

(9,440)







(9,440)


Consolidated net loss

(884,771)



(383,253)





(1,268,024)


(Income) loss attributable to the noncontrolling interest

(57,469)





66,003



8,534


Net loss attributable to American DG Energy Inc.

$

(942,240)



$

(383,253)



$

66,003



$

(1,259,490)










Net loss per share - basic and diluted

$

(0.02)







$

(0.03)


Weighted average shares outstanding - basic and diluted

47,653,786







47,653,786










Non-GAAP financial disclosure








Loss from operations

$

(514,032)



$

(386,250)





$

(900,282)


Depreciation expense

314,435



3,551





317,986


Stock based compensation

94,529



122,022





216,551


Adjusted EBITDA

(105,068)



(260,677)





(365,745)


Grants from rebates and

incentives








Total EBITDA cash outflows

$

(105,068)



$

(260,677)





$

(365,745)


















*American DG Energy includes related LLC.

 

CONSOLIDATING STATEMENT OF OPERATIONS
For the Three Months Ended September 30, 2011
(unaudited)

 


Three Months Ended September 30, 2011


American DG

Energy*


EuroSite

Power


Eliminations


Total

Revenues








Energy revenues

$

1,389,159



$



$



$

1,389,159


Turnkey & other revenues

29,252







29,252



1,418,411







1,418,411


Cost of sales








Fuel, maintenance and

installation

716,806







716,806


Depreciation expense

318,903







318,903



1,035,709







1,035,709


Gross profit

382,702







382,702


Operating expenses








General and administrative

387,347



206,211





593,558


Selling

374,259



325,639





699,898


Engineering

221,866







221,866



983,472



531,850





1,515,322


Loss from operations

(600,770)



(531,850)





(1,132,620)


Other income (expense), net








Interest and other income

11,433







11,433


Interest expense (non-cash)

(142,772)







(142,772)


Change in fair value of warrant

liability (non-cash)

125,668







125,668



(5,671)







(5,671)


Loss before provision for state income taxes

(606,441)



(531,850)





(1,138,291)


Benefit for state income taxes

41







41


Consolidated net loss

(606,400)



(531,850)





(1,138,250)


(Income) loss attributable to the noncontrolling interest

(55,857)





84,591



28,734


Net loss attributable to American DG Energy Inc.

$

(662,257)



$

(531,850)



$

84,591



$

(1,109,516)










Net loss per share - basic and diluted

$

(0.01)







$

(0.02)


Weighted average shares outstanding - basic and diluted

45,834,904







$

45,834,904










Non-GAAP financial disclosure








Loss from operations

$

(600,770)



$

(531,850)





$

(1,132,620)


Depreciation expense

332,368







332,368


Stock based compensation

65,060



121,900





186,960


Adjusted EBITDA

(203,342)



(409,950)





(613,292)


Grants from rebates and

incentives








Total EBITDA cash outflows

$

(203,342)



$

(409,950)





$

(613,292)


 

*American DG Energy includes related LLC.

 

CONSOLIDATING STATEMENT OF OPERATIONS
For the Nine Months Ended September 30, 2012
(unaudited)