American DG Energy Reports Third Quarter 2013 Financial Performance Third quarter revenue increases by 26% compared to a year ago period

WALTHAM, Mass., Nov. 14, 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 fitness facilities, reported total revenues of $1,762,314 in the third quarter of 2013, compared to $1,400,255 for the same period in 2012, an increase of 26%. GAAP diluted loss per share (EPS) was $(0.02) in the third quarter of 2013, compared with $(0.03) for the same period in 2012.

Major Highlights:

Financial

  • Energy revenue increased by 24% to $1,652,565 in the third quarter of 2013, compared to $1,337,831 for the same period in 2012.  An energy feasibility study was initiated adding $109,749 to bring the year over year increase to 26%.  Utility rates for thermal energy (such as natural gas) decreased approximately 6% and electricity rates decreased by 1% in the third 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 $26,163 in the third quarter of 2013. The EuroSite Power cash outflows were $258,852; therefore, our consolidated EBITDA cash outflows were $285,015 in the third quarter of 2013.
  • Energy gross profit margin in North America without depreciation was over 44% in the third quarter of 2013.
  • We finished the third quarter of 2013 with approximately $10.6 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.
  • The company raised $965,001 in equity capital through private placements in the quarter from a major shareholder and a member of the Board of Directors.
  • On August 15, 2013 shareholders of American DG Energy received a special dividend of an aggregate of 4,880,720 shares of EuroSite Power.

Operations

  • 450 kW combined heat and power (CHP) system was approved for operation by New York City, effective November 12, 2013.
  • 30-ton chiller commenced operation at DoubleTree by Hilton Hotel in Tarrytown, NY in addition to a 100 kW CHP system already operating at the property.
  • 150 kW operating CHP system was purchased in place and added to the existing 75 CHP system already operating by American DG Energy at this New Jersey property.
  • 100 kW CHP system commenced operation at DoubleTree by Hilton in Dublane Hydro, Scotland.
  • 100 kW CHP system commenced operation at Roko Health Club in York, UK.
  • 100 kW CHP system commenced operation at Roko Health Club in Chiswick, UK.
  • Two feasibility study contracts with a major university and a large hospitality group were signed.
  • 400-ton chiller new contract with a facility in New Jersey was signed.
  • 100 kW CHP system new contract with Bury St Edmunds Leisure Centre in Suffolk, UK was signed.
  • 100 kW CHP system new contract with Dunstable Leisure Centre in Dunstable, UK was signed.
  • We currently operate 109 energy systems (not including the six CHP systems, 450 kW, approved by New York City on November 12, 2013) and our current backlog consists of 34 energy systems.
  • Total energy production increased by 32% to 22.7 million kWh in the third quarter of 2013 compared to the same period in 2012.  
  • The associated revenue was attributable to the following core markets:

 
















Hospitality

22

%
















Housing

21

%
















Fitness

20

%
















Education

17

%
















Healthcare

16

%
















Other

4

%
















TOTAL

100

%

 

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

 
















Electricity

41

%
















Thermal

30

%
















Cooling

29

%
















TOTAL

100

%

 

  • The company welcomed John W. Rowe to the Board of Directors, adding years of management and operational expertise in the energy space, having notably served as Chairman and Chief Executive Officer at Exelon Corporation.

American DG Energy will hold its earnings conference call today, November 14, 2013 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 Thursday, November 21, 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 10036228.

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 the Three Months Ended September 30, 2013 and September 30, 2012

(unaudited)



Three Months Ended Sept 30, 2013














American DG

Energy


EuroSite

Power


Eliminations


Total


Three Months

Ended

Sept 30, 2012

Revenues










     Energy revenues

$   1,484,417


$    168,148


$               -


$ 1,652,565


$    1,337,831

     Turnkey & other revenues

109,749


-


-


109,749


62,424


1,594,166


168,148


-


1,762,314


1,400,255

Cost of sales










     Fuel, maintenance and installation

862,566


172,209


-


1,034,775


733,727

     Depreciation expense

309,915


19,034


-


328,949


301,813


1,172,481


191,243


-


1,363,724


1,035,540

Gross profit (loss)

421,685


(23,095)


-


398,590


364,715

Operating expenses










     General and administrative

516,536


189,912


-


706,448


603,729

     Selling

154,318


104,138


-


258,456


390,863

     Engineering

192,778


33,787


-


226,565


270,405


863,632


327,837


-


1,191,469


1,264,997

Loss from operations

(441,947)


(350,932)


-


(792,879)


(900,282)

Other income (expense), net










     Interest and other income

19,151


2,480


-


21,631


17,547

     Interest expense

(306,778)


(40,000)


-


(346,778)


(293,556)

     Change in fair value of warrant liability

(46,934)


-


-


(46,934)


(82,293)


(334,561)


(37,520)


-


(372,081)


(358,302)

Loss before provision for state income taxes

(776,508)


(388,452)


-


(1,164,960)


(1,258,584)

Benefit (provision) for state income taxes

(3,690)


-


-


(3,690)


(9,440)

Consolidated net loss

(780,198)


(388,452)


-


(1,168,650)


(1,268,024)

(Income) loss attributable to the noncontrolling interest

(57,451)


-


97,786


40,335


8,534

Net loss attributable to American DG Energy Inc.

$    (837,649)


$   (388,452)


$      97,786


$ (1,128,315)


$ (1,259,490)











Net loss per share - basic and diluted

$          (0.02)






$          (0.02)


$          (0.03)

Weighted average shares outstanding - basic and diluted

49,015,891






49,015,891


47,653,786











Non-GAAP financial disclosure










     Loss from operations

$    (441,947)


$    350,932)


$               -


$    (792,879)


$    (900,282)

     Depreciation & other non-cash expense

331,387


20,646


-


352,033


317,986

     Stock based compensation

84,397


71,434


-


155,831


216,551

     Adjusted EBITDA

(26,163)


(258,852)


-


(285,015)


(365,745)

     Grants from rebates and incentives

-


-


-


-


-

     Total EBITDA cash outflows

$      (26,163)


$   (258,852)


$               -


$    (285,015)


$    (365,745)

 

CONSOLIDATED BALANCE SHEETS

As of September 30, 2013 and December 31, 2012

(unaudited)



Sept 30, 2013


Dec 31, 2012

ASSETS




Current assets:




Cash and cash equivalents

$        10,636,868


$       13,362,919

Accounts receivable, net

1,114,840


761,678

Unbilled revenue

16,470


19,492

Due from related party

433,238


18,372

Inventory

2,669,190


2,920,444

Prepaid and other current assets

318,239


308,164

Total current assets

15,188,845


17,391,069

Property, plant and equipment, net

21,240,177


17,253,648

Accounts receivable, long-term

58,100


46,800

Other assets, long-term

67,773


47,216

TOTAL ASSETS

$        36,554,895


$       34,738,733





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$             750,984


$            765,618

Accrued expenses and other current liabilities

936,888


532,420

Due to related party

57,966


41,812

Capital lease obligations

870


3,365

Total current liabilities

1,746,708


1,343,215

Long-term liabilities:




Convertible debentures

21,664,222


19,400,000

Warrant liability

117,382


389,454

Capital lease obligations, long-term

-


-

Other long-term liabilities

19,238


29,444

Total liabilities

23,547,550


21,162,113





Stockholders' equity:




American DG Energy Inc. stockholders' equity:




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

49,440,529 and 48,490,733 issued and outstanding at September 30, 2013

and December 31, 2012, respectively

49,441


48,491

Additional paid-in capital

39,339,468


37,001,439

Accumulated deficit

(27,802,703)


(24,456,845)

Total American DG Energy Inc. stockholders' equity

11,586,206


12,593,085

Noncontrolling interest

1,421,139


983,535

Total stockholders' equity

13,007,345


13,576,620

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$        36,554,895


$       34,738,733

 

CONSOLIDATED STATEMENT OF CASH FLOWS

For the Nine Months Ended September 30, 2013 and September 30, 2012

(unaudited)





Nine Months Ended




Sept 30, 2013


Sept 30, 2012

CASH FLOWS FROM OPERATING ACTIVITIES:




Net loss

$      (3,345,858)


$      (5,078,148)



Income (loss) attributable to noncontrolling interest

(116,148)


(79,285)

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






Depreciation and amortization

1,046,730


1,175,210



Provision for losses on accounts receivable

64,134


89,649



Amortization of deferred financing costs

20,671


3,733



Increase (decrease) in fair value of warrant liability

(272,072)


343,629



Noncash interest expense

528,489


712,921



Stock-based compensation

439,191


596,408

Changes in operating assets and liabilities





(Increase) decrease in:






Restricted cash

-


-



Accounts receivable and unbilled revenue

(425,574)


(100,954)



Due from related party

(414,866)


(143,438)



Inventory

251,254


(621,041)



Prepaid and other current assets

(25,859)


(61,066)


Increase (decrease) in:






Accounts payable

(14,634)


870,188



Accrued expenses and other current liabilities

404,479


250,196



Due to related party

16,154


215,617



Other long-term liabilities

(10,206)


(10,206)

Net cash used in operating activities

(1,854,115)


(1,836,587)







CASH FLOWS FROM INVESTING ACTIVITIES:






Purchases of property and equipment

(4,473,759)


(2,936,567)

Net cash used in investing activities

(4,473,759)


(2,936,567)







CASH FLOWS FROM FINANCING ACTIVITIES:






Proceeds from issuance of convertible debentures

2,900,000


-



Proceeds from issuance of common stock warrants

-


7,500



Proceeds from sale of common stock, net of costs

965,001


3,531,534



Proceeds from sale of subsidiary common stock, net of costs

(4,558)


-



Proceeds from exercise of stock options

-


149,882



Purchases of common stock, net of costs

-


(750,000)



Convertible debenture transaction costs

(12,222)


-



Principal payments on capital lease obligations

(2,495)


(2,524)



Cancellation of restricted stock



(40)



Distributions to noncontrolling interest

(243,903)


(213,281)

Net cash provided by financing activities

3,601,823


2,723,071







Net decrease in cash and cash equivalents

(2,726,051)


(2,050,083)

Cash and cash equivalents, beginning of the period

13,362,919


17,801,025

Cash and cash equivalents, end of the period

$      10,636,868


$      15,750,942

 

 

SOURCE American DG Energy Inc.



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