American DG Energy Reports Second Quarter 2015 Financial Performance

Company achieves positive Non-GAAP Cash Flow from Operations and collection of UK energy tax incentives for the Quarter and Gross Margin without Depreciation improves to 34.5% compared to 28.3% for the same period in 2014

Aug 12, 2015, 09:00 ET from American DG Energy Inc.

WALTHAM, Mass., Aug. 12, 2015 /PRNewswire/ -- American DG Energy Inc. (NYSE MKT: ADGE), On-Site Utility™, offering clean electricity, heat, hot water and cooling solutions to hospitality, healthcare, housing and fitness facilities, reported total revenues of $2,087,127 in the second quarter of 2015, compared to $2,071,222 for the same period in 2014.  Loss per share (EPS) was $0.02 in the second quarter of 2015, compared with a loss per share of $0.03 for the same period in 2014. Reflecting the Company's ongoing efforts to optimize its On-Site Utility™ production, Gross Margin without depreciation improved in the second quarter of 2015 to 34.5% from 28.3% in the same period a year ago.

Major Highlights:

Financial

  • Consolidated EBITDA cash inflows, including cash received from tax incentives, improved reaching $362,874 in the second quarter of 2015, versus outflows of $550,005 in the second quarter of 2014.
  • Excluding tax incentives, EBITDA cash outflows improved significantly and were $305,985 for the quarter versus $550,005 in the second quarter of 2014.
  • As a result of our On-Site Utility™ productivity efforts and profitable consulting projects, American DG Energy's business in North America, produced a margin before depreciation of 38.1% in the second quarter of 2015 versus 29.8% in the year ago period.

Operations 

  • We currently operate 119 energy systems and our current backlog consists of 20 energy systems.
  • Second quarter revenue was attributable to the following core markets:

 

Hospitality

28%

Fitness

23%

Housing

19%

Education

13%

Healthcare

13%

Other

4%

TOTAL

100%

 

  • During Q2 2015 we reached agreements for:
    • A 200 kW CHP system with BH Live for The Littledown Centre, Bournemouth UK.
    • A 100 kW CHP system with Stevenage Leisure for the new Flitwick Leisure Centre, Flitwick UK.
    • The installation and maintenance of two Ilios 600,000 Btu per hour heat pump systems in Oahu, Hawaii.
    • Design and construction management services for two Times Square hotels in New York, New York.
  • During Q2 2015 we brought into operation a total of 2 additional systems:
    • The fourth and fifth CHP systems installed as part of our contract with Topland Group for seven systems – 81 kW unit at Menzies Bournemouth and 164kW unit at Menzies Welcombe Hotel, Golf Course & Spa, Stratford upon Avon.
  • The total number of systems now under contract is 139, totaling 10,005kW and 4,855 tons of cooling.
  • In total we currently operate 119 systems totaling 8,096kW of installed capacity with a total contract value of $258.4 million.

American DG Energy will hold its earnings conference call today, August 12, 2015 at 11:00 a.m. Eastern Time. To listen, call (866) 364‑3819 within the U.S., (855) 669-9657 from Canada, or (412) 902-4209 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 website 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, August 20, 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 10070265.

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.

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)






Jun 30, 2015


Dec 31, 2014

ASSETS




Current assets:




Cash and cash equivalents

$     8,172,481


$     11,825,915

Accounts receivable, net

1,062,153


1,140,811

Unbilled revenue

14,810


12,533

Due from related party

42,266


39,682

Inventory finished goods

1,060,512


1,153,927

Prepaid and other current assets

537,462


852,069

Total current assets

10,889,684


15,024,937

Property, plant and equipment, net

25,704,362


24,885,155

Accounts receivable, long-term

-


3,600

Other assets, long-term

72,418


92,148

TOTAL ASSETS

$   36,666,464


$     40,005,840





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$        551,280


$          605,530

Accrued expenses and other current liabilities

492,446


485,570

Due to related party

1,003,750


630,805

Notes payable to related party

2,000,000


-

Total current liabilities

4,047,476


1,721,905

Long-term liabilities:




Convertible debentures

1,615,354


1,645,444

Convertible debt due to related parties

16,435,471


15,864,215

Warrant liability

-


6,780

Note payable related party

-


3,000,000

Other long-term liabilities

-


2,227

Total liabilities

22,098,301


22,240,571

Commitments and contingencies




Stockholders' Equity:




American DG Energy Inc. stockholders' equity:




Common Stock

50,694


52,140

Additional paid-in capital

49,667,217


49,854,998

Accumulated deficit

(37,620,906)


(35,232,411)

Total American DG Energy Inc. stockholders' equity

12,097,005


14,674,727

Non-controlling interest

2,471,158


3,090,542

Total Stockholders' equity

14,568,163


17,765,269

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$   36,666,464


$     40,005,840


Reclassifications: certain prior period balances have been reclassified to conform with current period presentation.

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)


Three Months Ended


June 30,


June 30,


2015


2014

Revenues




Energy revenues

$         1,871,110


$         1,752,517

Turnkey & other revenues

216,017


318,705


2,087,127


2,071,222

Cost of sales




Fuel, maintenance and installation

1,367,484


1,485,589

        Depreciation expense

519,858


412,313


1,887,342


1,897,902

Gross profit

199,785


173,320

Operating expenses




General and administrative

645,367


775,998

Selling

308,428


247,358

Engineering

215,077


198,677


1,168,872


1,222,033

Loss from operations

(969,087)


(1,048,713)

Other income (expense), net




Interest and other income

168,167


7,364

Interest expense

(317,650)


(378,820)

Change in fair value of warrant liability

81


57,101


(149,402)


(314,355)

Loss before benefit (provision) for income taxes

(1,118,489)


(1,363,068)

Benefit (provisions) for income taxes

2,187


(2,940)

Consolidated net loss

(1,116,302)


(1,366,008)

(Loss) income attributable to the non-controlling interest

(59,759)


89,856

Net loss attributable to American DG Energy Inc.

$       (1,176,061)


$       (1,276,152)

Loss per share

$                (0.02)


$                (0.03)

Weighted average shares outstanding - basic and diluted

50,655,021


49,923,697

Non-GAAP financial disclosure




Loss from operations

$          (969,087)


$       (1,048,713)

Depreciation & other non-cash expense

532,672


428,859

Stock based compensation

130,430


69,849

Adjusted EBITDA

(305,985)


(550,005)

Grants, tax rebates and incentives

668,859


-

Total EBITDA cash inflows (outflows) *

$            362,874


$          (550,005)


* EBITDA (cash outflows), for the second quarter of 2015, were ($149,572) for American DG Energy in North America and this was more than fully offset by cash inflows of $512,446 for EuroSite Power.

 


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)


Six Months Ended


June 30,


June 30,


2015


2014

Revenues




Energy revenues

$         4,261,457


$         4,148,798

Turnkey & other revenues

333,410


450,224


4,594,867


4,599,022

Cost of sales




Fuel, maintenance and installation

3,095,137


3,193,235

Depreciation expense

1,028,315


893,877


4,123,452


4,087,112

Gross profit

471,415


511,910

Operating expenses




General and administrative

1,506,429


1,549,958

Selling

649,121


508,474

Engineering

385,447


462,448


2,540,997


2,520,880

Loss from operations

(2,069,582)


(2,008,970)

Other income (expense)




Interest and other income

186,433


22,348

Interest expense

(630,106)


(733,323)

Loss on extinguishment of debt

-


(533,177)

Change in fair value of warrant liability

6,479


(9,012)


(437,194)


(1,253,164)

Loss before provision for income taxes

(2,506,776)


(3,262,134)

Provisions for income taxes

(5,168)


(9,880)

Consolidated net loss

(2,511,944)


(3,272,014)

Loss attributable to the non-controlling interest

123,449


330,506

Net loss attributable to American DG Energy Inc.

$       (2,388,495)


$       (2,941,508)

Loss per share

$                (0.05)


$                (0.06)

Weighted average shares outstanding - basic and diluted

50,695,201


49,871,101

Non-GAAP financial disclosure




Loss from operations

$       (2,069,582)


$       (2,008,970)

Depreciation & other non-cash expense

1,052,173


940,840

Stock based compensation

280,889


208,477

Adjusted EBITDA

(736,520)


(859,653)

Grants, tax rebates and incentives

668,859


-

Total EBITDA cash outflows *

$            (67,661)


$          (859,653)


* EBITDA (cash outflows), for the first six months of 2015, were ($281,140) for American DG Energy in North America and inflows of $213,479 for EuroSite Power.









 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)




Six Months Ended




June 30,


June 30,




2015


2014

CASH FLOWS FROM OPERATING ACTIVITIES:




 

Net loss

$   (2,388,495)


$   (2,941,508)



Loss attributable to non-controlling interest

(123,449)


(330,506)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:






Depreciation and amortization

1,052,173


940,840



Gain attributable to distribution of nonmonetary assets to non-controlling interest

(157,870)


-



Loss on extinguishment of debt

-


533,177



Amortization of deferred financing costs

11,637


(7,427)



Amortization of convertible debt premium

(48,144)


15,472



Increase (decrease) in fair value of warrant liability

(6,479)


9,012



Noncash interest expense

582,348


624,368



Stock-based compensation

280,889


208,478

Changes in operating assets and liabilities





(Increase) decrease in:






Accounts receivable and unbilled revenue

79,981


(90,437)



Due from related party

(2,485)


274,965



Inventory

93,415


570,436



Prepaid and other current assets

322,700


(275,465)


 

Increase (decrease) in:






Accounts payable

(54,250)


(230,668)



Accrued expenses and other current liabilities

13,537


140,281



Due to related party

372,945


(27,373)



Other long-term liabilities

(2,227)


(6,804)

Net cash provided by (used) in operating activities

26,226


(593,159)







CASH FLOWS FROM INVESTING ACTIVITIES:






Purchases of property and equipment

(2,295,568)


(2,664,953)



Partial purchase of non-controlling interest

(100,000)


-

Net cash used in investing activities

(2,395,568)


(2,664,953)







CASH FLOWS FROM FINANCING ACTIVITIES:






Proceeds from issuance of convertible debentures

-


1,450,000



Share repurchases

(148,510)


-



Repayment of note payable to related party

(1,000,000)


-



Distributions to non-controlling interest

(135,582)


(148,625)

Net cash (used in) provided by financing activities

(1,284,092)


1,301,375

Net decrease in cash and cash equivalents

(3,653,434)


(1,956,737)

Cash and cash equivalents, beginning of the period

11,825,915


9,804,291

Cash and cash equivalents, end of the period

$      8,172,481


$      7,847,554

 

SOURCE American DG Energy Inc.



RELATED LINKS

http://www.americandg.com