American DG Energy Reports 2010 First Quarter Financial Performance

WALTHAM, Mass., May 12 /PRNewswire-FirstCall/ -- American DG Energy Inc. (NYSE Amex: ADGE), a leading OnSite Utility, offering clean electricity, heat, hot water and cooling solutions to hospitality, healthcare, housing and athletic facilities, reported overall revenues of $1,449,973 in the first quarter of 2010, compared to revenues of $1,403,529 in the first quarter of 2009.  GAAP diluted earnings per share (EPS) were $(0.02) in the first quarter of 2010, compared to $(0.02) for the same period in 2009, and GAAP operating income was a loss of $(668,583) in the first quarter of 2010, compared to a loss of $(437,337) for the same period in 2009.

First Quarter 2010 Highlights:

• Energy revenue in the first quarter of 2010 increased by 36% compared to the fourth quarter of 2009 due to increased energy systems operating.
• Net revenue increased 3.3% to $1.44 million in the first quarter of 2010, compared to $1.40 million for the same period in 2009.
• The price of natural gas, which is the key component in calculating our thermal or hot water revenue, was significantly lower in the first quarter of 2010, compared to the same period in 2009.  When comparing rates in the National Grid natural gas territory, which is our largest market, the price of natural gas was 22% lower in the first quarter of 2010.  This had the dual effect of lowering our energy revenue by 9.2%, while keeping our energy gross profit margin, without depreciation at approximately 23% for both periods.
• Our turnkey revenue increased to $183,983 in the first quarter of 2010, compared to $9,008 for the same period in 2009.
• We installed 2 new energy systems during the first quarter and 5 energy systems in early April bringing the total number of energy systems operating to 69.  Our backlog currently consists of 11 energy systems.
• We received $157,882 in rebates and incentives in the first quarter of 2010.
• We finished the quarter with approximately $2.5 million in cash, cash equivalents and short-term investments.
• During the quarter we called the $5.3 million outstanding balance of our 8% senior convertible debentures, all of which was converted into shares of common stock.  This eliminated approximately $425,600 in interest payments per year.
• During the quarter certain investors, including George N. Hatsopoulos and John N. Hatsopoulos, exercised a total of 500,000 warrants for gross proceeds to the company of $350,000.
• As of May 12, 2010, we had over 150 proposals submitted to customers in our core target markets (healthcare, hospitality and large multi-family residential).
• During the quarter we began a feasibility study of the European Combined Heat and Power market in order to determine the feasibility of expanding our business into Europe.
• In February we presented at the 2nd Annual Green Technology Conference for investors held in Boston and sponsored by Kaufman Bros.
• In March 2010, we launched a new website presenting "Think Outside The Grid" to our customers and investors.

"We produced significantly more energy in the first quarter of 2010, compared to the fourth quarter of 2009," said John N. Hatsopoulos, Chief Executive Officer of American DG Energy.  "In early April we added an additional five energy systems so with the combination of 69 systems currently in operation plus installation of our remaining backlog we anticipate our energy revenue to continue to increase for the rest of the year."

American DG Energy will hold its earnings conference call today, May 12, at 11:00 a.m. Eastern Time.  To listen, call (800) 8602442 within the U.S. or (412) 858-4600 outside the U.S.  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 call will be available for playback through Wednesday, May 19, 2010.  To listen to the playback, call (877) 3447529 within the U.S. or (412) 317-0088 outside the U.S. and use Playback Code 440281.

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.  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 local utilities – without any capital or start-up costs to the energy user – through its 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.

SOURCE American DG Energy Inc.