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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