American DG Energy Reports 2013 Financial Performance

Revenue increases 32% compared to 2012

News provided by

American DG Energy Inc.

Mar 31, 2014, 09:00 ET

WALTHAM, Mass., March 31, 2014 /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 unaudited financial results for fiscal year 2013. Total revenues were $7,461,880 in 2013, compared to $5,645,194 in 2012, an increase of 32%. GAAP diluted loss per share (EPS) was $(0.10) in 2013, compared to $(0.14) in 2012.

Major Highlights:

Financial

  • Energy revenue increased by 33% to $7,164,226 in 2013, compared to the same period in 2012. 
  • Energy gross profit margin in North America without depreciation was over 36% in 2013.
  • Utility rates for thermal energy (such as natural gas) decreased approximately 10% and electricity rates decreased by 11% in the fourth quarter of 2013 compared to the same period in 2012, which lowered our energy revenue for the period.
  • The company received $285,718 of incentives in 2013.
  • We finished 2013 with approximately $9.8 million in cash.
  • The total revenue value of our On-Site Utility energy agreements since inception is approximately $300 million using various market assumptions and estimates made by the Company.
  • During June 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.
  • During August and September of 2013, the company raised $965,001 in equity capital through private placements 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

  • Total energy production increased by 34% to 99.4 million kWh in 2013 compared to the same period in 2012. 
  • The associated revenue in 2013 was attributable to the following core markets:

Housing

24

%

Fitness

21

%

Healthcare

21

%

Hospitality

19

%

Education

20

%

Other

5

%

TOTAL

100

%
  • The revenue in 2013 was distributed by energy type as is outlined in the following table:

Thermal

53

%

Electricity

36

%

Cooling

11

%

TOTAL

100

%
  • We currently operate 123 energy systems.
  • Our current backlog consists of 29 energy systems.
  • We reached agreements with the following properties:
    • 300 kW Combined Heat and Power (CHP) system with two building in New Jersey.
    • 30-ton chiller with DoubleTree Hotel in Tarrytown, NY.
    • 200 kW system with a facility in New Jersey.
    • Two feasibility study contracts with a major university and a large hospitality group.
    • Energy plant conversion with DoubleTree Hotel in Times Square, NY for CHP, boilers and chillers.
    • 400-ton chiller with a facility in New Jersey.
    • 200 kW CHP system with Crow Wood Leisure in Burnley, United Kingdom (UK).
    • 100 kW CHP system with Roko Health Club in York, United Kingdom.
    • 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.
    • 100 kW CHP system with Clifton Hospital in Lancashire, UK, part of the National Health Systems.
  • We began operations at the following properties:
    • 300 kW CHP system at an apartment complex in Bronx, NY.
    • 30-ton chiller at by Hilton Hotel in Tarrytown, NY.
    • 450 kW CHP in New York City, NY.
    • 75 kW CHP in Connecticut.
    • 150 kW CHP at Metro YMCAs of the Oranges in Wayne, NJ.
    • 450-ton chiller at Doral Arrowwood Hotel in Rye Brook, NY.
    • 150 kW CHP at Cumberland County Jail in Portland, ME.
    • 100 kW CHP at Prospect Park Residencies in Brooklyn, NY.
    • 75 kW CHP at YMCA in Greenwich, CT.
    • 170-ton chiller at a New Jersey property.
    • 80-ton chiller at a New Jersey property.
    • 30-ton chiller at a New Jersey property.
    • 100 kW CHP at Roko Health Club in Chiswick, UK.
    • 100 kW CHP at Roko Health Club in York, UK.
    • 100 kW CHP at DoubleTree by Hilton in Dublane Hydro, Scotland.
    • 150 kW system in New Jersey.
  • The company welcomed John W. Rowe to the Board of Directors, adding years of management and operational expertise in the energy space, having notable served as Chairman and Chief Executive Officer at Exelon Corporation.
  • The company welcomed Joan Giacinti to the Board of Directors, adding extensive management experience as he is the founder and Chief Executive Officer of Sofratessa Group in Santo Domingo, Dominican Republic.

American DG Energy will hold its earnings conference call today, March 31, 2014 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 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 Tuesday, April 08, 2014.  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 10042784.

The earnings conference call will be webcast live. To register for and listen to the webcast, go to http://investors.americandg.com/. 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.  Learn more about how American DG Energy (NYSE MKT: ADGE) 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.

 

UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS

For the years ended December 31, 2013

 

2013

2012

Revenues


Energy revenues

$

7,164,226

$

5,388,395

Turnkey & other revenues

297,654

256,799

7,461,880

5,645,194

Cost of sales


Fuel, maintenance and installation

4,862,905

3,487,223

Depreciation expense

1,382,693

1,698,014

6,245,598

5,185,237

Gross profit

1,216,282

459,957

Operating expenses


General and administrative

2,940,833

2,770,535

Selling

1,383,077

1,919,075

Engineering

1,018,914

1,165,286

5,342,824

5,854,896

Loss from operations

(4,126,542)

(5,394,939)

Other income (expense), net


Interest and other income

49,291

62,322

Interest expense

(1,292,766)

(1,270,694)

Change in fair value of warrant liability

257,189

(139,893)

(986,286)

(1,348,265)

Loss before provision for state income taxes

(5,112,828)

(6,743,204)

Benefit (provision) for state income taxes

(13,450)

(24,550)

Consolidated net loss

(5,126,278)

(6,767,754)

(Income) loss attributable to the noncontrolling interest

239,606

241,967

Net loss attributable to American DG Energy Inc.

$

(4,886,672)

$

(6,525,787)




Net loss per share - basic and diluted

$

(0.10)

$

(0.14)

Weighted average shares outstanding - basic and diluted

49,932,838

47,108,980




Non-GAAP financial disclosure


Loss from operations

$

(4,126,542)

$

(5,394,939)

Depreciation expense

1,471,914

1,754,279

Stock based compensation

596,349

810,285

Adjusted EBITDA

(2,058,279)

(2,830,375)

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

285,718

583,800

Total cash outflows

$

(1,772,561)

$

(2,246,575)

UNAUDITED CONSOLIDATED BALANCE SHEETS

 

December 31, 2013

December 31, 2012

ASSETS


Current assets:


Cash and cash equivalents

$

9,804,291

$

13,362,919

Accounts receivable, net

988,420

761,678

Unbilled revenue

12,765

19,492

Due from related party

304,288

18,372

Inventory

2,246,335

2,920,444

Prepaid and other current assets

196,939

308,164

Total current assets

13,553,038

17,391,069

Property, plant and equipment, net

21,931,289

17,253,648

Accounts receivable, long-term

45,200

46,800

Other assets, long-term

54,768

47,216

TOTAL ASSETS

$

35,584,295

$

34,738,733




LIABILITIES AND STOCKHOLDERS' EQUITY


Current liabilities:


Accounts payable

$

871,079

$

765,618

Accrued expenses and other current liabilities

622,568

532,420

Due to related party

178,216

41,812

Capital lease obligations

—

3,365

Total current liabilities

1,671,863

1,343,215

Long-term liabilities:


Convertible debentures

17,172,807

17,000,000

Convertible debt due to related parties

4,525,573

2,400,000

Warrant liability

132,265

389,454

Other long-term liabilities

15,876

29,444

Total liabilities

23,518,384

21,162,113




Stockholders' equity:


American DG Energy Inc. stockholders' equity:


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

authorized; 48,490,733 and 46,001,404 issued and

outstanding at December 31, 2012 and 2011, respectively

49,818

48,491

Additional paid-in capital

40,110,305

37,001,439

Accumulated deficit

(29,343,517)

(24,456,845)

Total American DG Energy Inc. stockholders' equity

10,816,606

12,593,085

Noncontrolling interest

1,249,305

983,535

Total stockholders' equity

12,065,911

13,576,620

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

35,584,295

$

34,738,733

 

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

For the years ended December 31, 2013

 

2013

2012

CASH FLOWS FROM OPERATING ACTIVITIES:



Net loss

$

(4,886,672)

$

(6,525,787)

Income (loss) attributable to noncontrolling interest

(239,606)

(241,967)

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



Depreciation and amortization

1,471,914

1,754,279

Provision for losses on accounts receivable

235,638

123,880

Amortization of deferred financing costs

10,224

20,448

Increase (decrease) in fair value of warrant liability

(257,189)

139,893

Noncash interest expense

1,170,051

1,237,470

Stock-based compensation

596,349

810,285

Changes in operating assets and liabilities:



(Increase) decrease in:



Restricted cash

—

—

Accounts receivable and unbilled revenue

(454,053)

29,269

Due from related party

(285,916)

2,768

Inventory

674,109

(2,286,324)

Prepaid and other current assets

93,449

(48)

Increase (decrease) in:



Accounts payable

105,461

245,010

Accrued expenses and other current liabilities

90,148

(56,612)

Due to related party

136,404

(272,035)

Other long-term liabilities

(13,568)

(13,608)

Net cash used in operating activities

(1,553,257)

(5,033,079)

CASH FLOWS FROM INVESTING ACTIVITIES:



Purchases of property and equipment

(5,590,055)

(4,211,402)

Net cash used in investing activities

(5,590,055)

(4,211,402)

CASH FLOWS FROM FINANCING ACTIVITIES:



Proceeds from issuance of convertible debentures

2,947,380

—

Proceeds from issuance of warrants

—

7,500

Proceeds from sale of common stock, net of costs

952,333

3,535,038

Proceeds from sale of subsidiary common stock, net of costs

—

2,139,293

Proceeds from exercise of stock options

—

200,923

Purchases of common stock, net of costs

—

(750,000)

Convertible debenture transaction costs

—

—

Principal payments on capital lease obligations

(3,365)

(3,365)

Cancellation of restricted stock

—

(40)

Distributions to noncontrolling interest

(311,664)

(322,974)

Net cash provided by financing activities

3,584,684

4,806,375

Net (decrease) increase in cash and cash equivalents

(3,558,628)

(4,438,106)

Cash and cash equivalents, beginning of the period

13,362,919

17,801,025

Cash and cash equivalents, end of the period

$

9,804,291

$

13,362,919

SOURCE American DG Energy Inc.

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