EuroSite Power Inc. Reports Third Quarter 2015 Financial Performance

Revenue up 20% compared to the same period a year ago, gross margin also improves

Nov 11, 2015, 04:00 ET from EuroSite Power Inc.

WALTHAM. Mass., Nov. 11, 2015 /PRNewswire/ -- EuroSite Power Inc. (OTCQB: EUSP), a subsidiary of American DG Energy Inc. (NYSE MKT: ADGE), On-Site Utility™ solutions provider, offering clean electricity, heat, hot water and cooling solutions to hospitality, healthcare, housing and fitness facilities, reported total revenues of $421,991 for the third quarter of 2015, compared to $350,561 for the third quarter of 2014, an increase of 20.4%. Loss per share was $0.01 for the third quarter of 2015 as well as for the third quarter of 2014.

Major Highlights:

Financial

  • Total revenue increased by 20.4% to $421,991 for Q3 2015, compared to $350,561 for Q3 2014.
  • Energy revenue for the quarter grew by 48% to $410,055 compared to $277,335 for the same period last year.  
  • Our current backlog is 8 systems totalling 1,014 kW with a total contract value of $22.3 million.
  • Gross margin without depreciation improved to 13.5% for the third quarter of 2015, compared to 8.9% for the same quarter in 2014.

Sales and Operations

  • Total energy production for the quarter increased by 60% to 5,484,199 kWh.
  • Total energy production for the first 9 months of 2015 exceeds total generation for the whole of 2014.
  • Brought a further system into operation during the quarter plus a further unit shortly after the quarter closed.
  • Finalist in Association of Decentralized Energy (ADE) Innovation Award category.
  • In total we currently operate 29 systems totalling 2,878kW of installed capacity with a total contract value of $81 million.
  • The total number of systems now under contract is 36 totalling 3,760 kW.

EuroSite Power Inc. will hold its earnings conference call today, November 11, 2015 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 EuroSite Power to access the call.  Please begin dialling at least 10 minutes before the scheduled starting time.

The earnings conference call will be recorded and available for playback one hour after the end of the call through Thursday, November 19, 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 10075349.

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 EuroSite Power

EuroSite Power Inc. is a subsidiary of American DG Energy Inc. (NYSE MKT: ADGE). American DG Energy owns 48% of EuroSite Power and consolidates their financial results and P&L. The Company is committed to providing institutional, commercial and small industrial facilities with clean, reliable power, cooling, heat and hot water at lower costs than charged by conventional energy suppliers - without any capital or start-up costs to the energy user - through On-Site Utility™ energy solutions. More information can be found at www.eurositepower.co.uk.

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 that could affect our business including weather, electric price changes, gas prices, carbon credit markets and delays by government agencies to process tax and other incentives. Important other 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.

Investor Contact:                  

Media Contact:

John N. Hatsopoulos

Ariel Babcock, CFA

EuroSite Power Inc.

EuroSite Power Inc.

+1 781.622.1120

+1 781.466.6413

john.hatsopoulos@eurositepower.co.uk

ariel.babcock@eurositepower.co.uk

 

 

EUROSITE POWER INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 


September 30,
2015


December 31,
2014

ASSETS




Current assets:




Cash and cash equivalents

$

1,201,870



$

3,776,852


Accounts receivable

204,269



152,664


  UK energy tax incentives receivable



648,917


Value added tax receivable

81,433



72,202


Inventory of finished goods

109,983



99,925


Other current assets

63,824



33,655


Total current assets

1,661,379



4,784,215


Property, plant and equipment, net

7,628,973



6,348,905


Other assets, long-term

12,444



16,764


TOTAL ASSETS

$

9,302,796



$

11,149,884






LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$

516,769



$

338,067


Accrued expenses and other current liabilities

262,604



130,252


Note payable related party

2,000,000




Total current liabilities

2,779,373



468,319


Long-term liabilities:




 Convertible debentures

1,600,309



1,645,444


 Convertible debentures due to related parties

960,185



987,266


   Note payable related party



3,000,000


Total liabilities

5,339,867



6,101,029


Commitments and contingencies (note 5)




Stockholders' equity:




Common stock, $0.001 par value; 100,000,000 shares authorized; 65,747,100 issued and outstanding at September 30, 2015 and December 31, 2014

65,747



65,747


Additional paid-in capital

12,204,222



12,147,005


Accumulated deficit

(8,307,040)



(7,163,897)


Total stockholders' equity

3,962,929



5,048,855






TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

9,302,796



$

11,149,884


 

 

EUROSITE POWER INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 


Three Months Ended


September 30,

 2015


September 30,

 2014





Revenues




Energy revenues

$

410,055



$

277,335


Turnkey & other revenues

11,936



73,226



421,991



350,561


Cost of sales




Fuel, maintenance and installation

365,097



319,461


Depreciation expense

102,485



83,430



467,582



402,891


Gross profit (loss)

(45,591)



(52,330)






Operating expenses




General and administrative

194,053



174,786


Selling

122,826



133,720


Engineering

87,853



17,617



404,732



326,123


Loss from operations

(450,323)



(378,453)


Other income (expense)




Interest and other income

965



1,951


Interest expense, net of debt premium amortization

(8,599)



(2,146)



(7,634)



(195)






Loss before income taxes

(457,957)



(378,648)


Benefit for income taxes




Net loss

$

(457,957)



$

(378,648)






Net loss per share - basic and diluted

$

(0.01)



$

(0.01)


Weighted-average shares outstanding - basic and diluted

65,747,100



56,747,100






Non-GAAP financial disclosure




Loss from operations

$

(450,323)



$

(378,453)


Depreciation expense

103,133



83,430


Stock based compensation

1,071



43,562


Adjusted EBITDA

(346,119)



(250,313)


Grants from rebates and incentives




Total cash outflows

$

(346,119)



$

(250,313)


 

 

EUROSITE POWER INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 


Nine Months Ended


September 30,

 2015


September 30,

 2014





Revenues




Energy revenues

$

1,473,307



$

1,117,980


Turnkey & other revenues

39,711



81,324



1,513,018



1,199,304


Cost of sales




Fuel, maintenance and installation

1,192,276



972,088


Depreciation expense

289,621



226,892



1,481,897



1,198,980


Gross profit (loss)

31,121



324






Operating expenses




General and administrative

627,798



603,196


Selling

359,298



365,884


Engineering

162,008



71,585



1,149,104



1,040,665


Loss from operations

(1,117,983)



(1,040,341)


Other income (expense)




Interest and other income

5,277



4,760


Interest expense, net of debt premium amortization

(32,625)



(17,630)


Loss on extinguishment of convertible debt



(713,577)



(27,348)



(726,447)






Loss before income taxes

(1,145,331)



(1,766,788)


Benefit for income taxes

2,188




Net loss

$

(1,143,143)



$

(1,766,788)






Net loss per share - basic and diluted

$

(0.02)



$

(0.03)


Weighted-average shares outstanding - basic and diluted

65,747,100



56,747,100






Non-GAAP financial disclosure




Loss from operations

$

(1,117,983)



$

(1,040,341)


Depreciation expense

291,465



231,514


Stock based compensation

57,217



123,419


Adjusted EBITDA

(769,301)



(685,408)


Grants from rebates and incentives

636,661




Total cash outflows

$

(132,640)



$

(685,408)


 

 

EUROSITE POWER INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 


Nine Months Ended


September 30,

 2015


September 30,

 2014





CASH FLOWS FROM OPERATING ACTIVITIES:




Net loss

$

(1,143,143)



$

(1,766,788)


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




Depreciation and amortization

291,465



231,514


Loss on extinguishment of debt



713,577


Amortization of deferred financing costs



784


Amortization of convertible debt premium

(72,216)



(109,332)


Stock-based compensation

57,217



123,419


Accrued  UK tax energy incentives

636,661




Changes in operating assets and liabilities




(Increase) decrease in:




   Accounts receivable

(51,605)



(16,217)


   Value added tax receivable

3,025



(136,446)


   Inventory of finished goods

(10,058)



305,036


   Prepaid and other current assets

(27,289)



(55,361)


   Other assets, long- term

1,440



(10,932)


Increase (decrease) in:




   Accounts payable

178,702



248,988


   Accrued expenses and other current liabilities

132,352



94,355


Net cash used in operating activities

(3,449)



(377,403)






CASH FLOWS FROM INVESTING ACTIVITIES:




Purchases of property, plant and equipment

(1,571,533)



(1,993,153)


Net cash used in investing activities

(1,571,533)



(1,993,153)






CASH FLOWS FROM FINANCING ACTIVITIES:




Payment on note payable to related party

(1,000,000)



3,000,000


Proceeds from convertible debentures



1,450,000


Net cash (used in) provided by financing activities

(1,000,000)



4,450,000






Net (decrease) increase in cash and cash equivalents

(2,574,982)



2,079,444


Cash and cash equivalents, beginning of the period

3,776,852



1,519,602


Cash and cash equivalents, end of the period

$

1,201,870



$

3,599,046






Supplemental disclosures of cash flow information:




Taxes paid

$



$


Interest paid

$



$

80,000


 

 

 

SOURCE EuroSite Power Inc.



RELATED LINKS

http://www.eurositepower.co.uk