American DG Energy Reports Third Quarter 2014 Financial Performance
Total Gross Margin without Depreciation is Over 36% for the Period
WALTHAM, Mass., Nov. 13, 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 fitness facilities, reported total revenues of $1,886,693 in the third quarter of 2014, compared to $1,762,314 for the same period in 2013, an increase of $124,379. GAAP diluted loss per share (EPS) was $0.02 in the third quarter of 2014, compared with a GAAP diluted loss per share of $0.02 for the same period in 2013.
Major Highlights:
Financial
- Total revenue increased by $124,379 to $1,866,693 in the third quarter of 2014, compared to $1,762,314 for the same period in 2013.
- Total gross profit margin without depreciation was 36.3% in the third quarter of 2014.
- Consolidated EBITDA cash outflows were $418,463 in the third quarter of 2014. EBITDA cash outflows were $168,151 for American DG Energy in North America and $250,312 for EuroSite Power.
- We closed a common stock public offering with gross proceeds of $4 million.
- EuroSite Power, the Company's European subsidiary, raised $3.0 million from John Hatsopoulos.
- On October 3, 2014, we closed an arrangement saving $5.1 million of future American DG Energy cash outflows for interest on debt and eliminating $3.1 million of EuroSite Power convertible debt.
- During October and November 2014 we secured an additional $1.5 million through a commitment and a placement of common stock.
- As of September 30, 2014, we have $12.5 million of cash, net working capital of approximately $13.7 million and approximately $2.1 million of prepaid projects in process.
- The total revenue value of our On-Site Utility energy agreements since inception is approximately $317 million using various market assumptions and estimates made by the Company.
Operations
- Benjamin Locke began serving as Co-CEO of American DG Energy effective October 30, 2014, bringing a long history of industry experience and operation excellence to American DG Energy.
- We currently operate 120 energy systems and our current backlog consists of 26 energy systems.
- Total energy production was 29.3 million kWh in the third quarter of 2014.
- The associated revenue was attributable to the following core markets:
Fitness |
24% |
Hospitality |
22% |
Housing |
20% |
Education |
19% |
Healthcare |
11% |
Other |
4% |
TOTAL |
100% |
- The revenue was distributed by energy type as is outlined in the following table:
Electricity |
47% |
|
Cooling |
28% |
|
Thermal |
25% |
|
TOTAL |
100% |
- We reached agreements with Green Hill Retirement Community in West Orange, New Jersey for a 75 kW CHP system.
- We reached a partnership agreement with Community Works to promote energy systems to over 450 senior living facilities.
- We began operations at a 75kW CHP system at a facility in Maryland.
American DG Energy will hold its earnings conference call today, November 13, 2014 at 10:00 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 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 Friday, December 5, 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 10055634.
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 BALANCE SHEET |
|||
As of September 30, 2014 December 31, 2013 |
|||
(unaudited) |
|||
Sep 30, |
Dec 31, |
||
2014 |
2013 |
||
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents |
$ 12,526,841 |
$ 9,804,291 |
|
Accounts receivable, net |
1,233,078 |
988,420 |
|
Unbilled revenue |
9,637 |
12,765 |
|
Due from related party |
20,932 |
304,288 |
|
Inventory |
1,702,176 |
2,246,335 |
|
Prepaid and other current assets |
411,195 |
196,939 |
|
Total current assets |
15,903,859 |
13,553,038 |
|
Property, plant and equipment, net |
24,352,421 |
21,931,289 |
|
Accounts receivable, long-term |
9,000 |
45,200 |
|
Other assets, long-term |
106,746 |
54,768 |
|
TOTAL ASSETS |
$ 40,372,026 |
$ 35,584,295 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||
Current liabilities: |
|||
Accounts payable |
$ 1,086,182 |
$ 871,079 |
|
Accrued expenses and other current liabilities |
970,634 |
622,568 |
|
Due to related party |
143,373 |
178,216 |
|
Total current liabilities |
2,200,189 |
1,671,863 |
|
Long-term liabilities: |
|||
Convertible debentures |
18,850,404 |
18,272,807 |
|
Convertible debt due to related parties |
4,783,573 |
3,425,573 |
|
Warrant liability |
30,380 |
132,265 |
|
Other long-term liabilities |
5,670 |
15,876 |
|
Total liabilities |
28,870,216 |
23,518,384 |
|
Stockholders' equity: |
|||
American DG Energy Inc. stockholders' equity: |
|||
Common Stock |
52,691 |
49,818 |
|
Additional paid-in capital |
44,299,508 |
40,110,305 |
|
Accumulated deficit |
(33,454,677) |
(29,343,517) |
|
Total American DG Energy Inc. stockholders' equity |
10,897,522 |
10,816,606 |
|
Non-controlling interest |
604,288 |
1,249,305 |
|
Total stockholders' equity |
11,501,810 |
12,065,911 |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ 40,372,026 |
$ 35,584,295 |
|
Reclassifications: certain prior period balances have been reclassified to conform to current period presentation. |
CONSOLIDATED STATEMENT OF OPERATIONS |
|||
For three months ending September 30, 2014 and September 30, 2013 |
|||
(unaudited) |
|||
Three Months Ended |
|||
Sep 30, |
Sep 30, |
||
2014 |
2013 |
||
Revenues |
|||
Energy revenues |
$ 1,697,723 |
$ 1,652,565 |
|
Turnkey & other revenues |
188,970 |
109,749 |
|
Total Revenues |
1,886,693 |
1,762,314 |
|
Cost of sales |
|||
Fuel, maintenance and installation |
1,201,003 |
1,034,775 |
|
Depreciation expense |
464,296 |
328,949 |
|
1,665,299 |
1,363,724 |
||
Gross profit |
221,394 |
398,590 |
|
Operating expenses |
|||
General and administrative |
780,744 |
706,448 |
|
Selling |
291,984 |
258,456 |
|
Engineering |
167,078 |
226,565 |
|
1,239,806 |
1,191,469 |
||
Loss from operations |
(1,018,412) |
(792,879) |
|
Other income (expense) |
|||
Interest and other income |
35,592 |
21,631 |
|
Interest expense |
(350,892) |
(346,778) |
|
Loss on extinguishment of debt |
- |
- |
|
Change in fair value of warrant liability |
110,897 |
(46,934) |
|
(204,403) |
(372,081) |
||
Loss before provision for income taxes |
(1,222,815) |
(1,164,960) |
|
Provision (benefit) for income taxes |
(22,814) |
(3,690) |
|
Consolidated net loss |
(1,245,629) |
(1,168,650) |
|
(Income) loss attributable to the non-controlling interest |
75,977 |
40,335 |
|
Net loss attributable to American DG Energy Inc. |
$ (1,169,652) |
$ (1,128,315) |
|
Net loss per share - basic and diluted |
$ (0.02) |
$ (0.02) |
|
Weighted average shares outstanding - basic and diluted |
51,690,714 |
49,015,891 |
|
Non-GAAP financial disclosure |
|||
Loss from operations |
$ (1,018,412) |
$ (792,879) |
|
Depreciation & other non-cash expense |
469,636 |
359,400 |
|
Stock based compensation |
130,313 |
155,831 |
|
Adjusted EBITDA |
(418,463) |
(277,648) |
|
Grants from rebates and incentives |
- |
5,625 |
|
Total EBITDA cash outflows * |
$ (418,463) |
$ (272,023) |
|
* EBITDA cash outflows, for the second quarter of 2014, were $168,151 for American DG Energy in North America and $250,312 for EuroSite Power. |
CONSOLIDATED STATEMENT OF OPERATIONS |
|||
For nine months ending September 30, 2014 and September 30, 2013 |
|||
(unaudited) |
|||
Nine Months Ended |
|||
Sep 30, |
Sep 30, |
||
2014 |
2013 |
||
Revenues |
|||
Energy revenues |
$ 5,846,521 |
$ 5,399,499 |
|
Turnkey & other revenues |
639,194 |
191,910 |
|
Total Revenues |
6,485,715 |
5,591,409 |
|
Cost of sales |
|||
Fuel, maintenance and installation |
4,394,238 |
3,555,360 |
|
Depreciation expense |
1,358,173 |
985,939 |
|
5,752,411 |
4,541,299 |
||
Gross profit |
733,304 |
1,050,110 |
|
Operating expenses |
|||
General and administrative |
2,330,702 |
2,189,291 |
|
Selling |
800,458 |
948,642 |
|
Engineering |
629,526 |
782,721 |
|
3,760,686 |
3,920,654 |
||
Loss from operations |
(3,027,382) |
(2,870,544) |
|
Other income (expense) |
|||
Interest and other income |
57,940 |
87,919 |
|
Interest expense |
(1,084,215) |
(906,124) |
|
Loss on extinguishment of debt |
(533,177) |
- |
|
Change in fair value of warrant liability |
101,885 |
272,072 |
|
(1,457,567) |
(546,133) |
||
Loss before provision for income taxes |
(4,484,949) |
(3,416,677) |
|
Provision (benefit) for income taxes |
(32,694) |
(45,329) |
|
Consolidated net loss |
(4,517,643) |
(3,462,006) |
|
(Income) loss attributable to the non-controlling interest |
406,483 |
116,148 |
|
Net loss attributable to American DG Energy Inc. |
$ (4,111,160) |
$ (3,345,858) |
|
Net loss per share - basic and diluted |
$ (0.08) |
$ (0.07) |
|
Weighted average shares outstanding - basic and diluted |
50,484,304 |
48,710,600 |
|
Non-GAAP financial disclosure |
|||
Loss from operations |
$ (3,027,382) |
$ (2,870,544) |
|
Depreciation & other non-cash expense |
1,410,476 |
1,046,730 |
|
Stock based compensation |
338,790 |
439,191 |
|
Adjusted EBITDA |
(1,278,116) |
(1,384,623) |
|
Grants from rebates and incentives |
- |
151,943 |
|
Total EBITDA cash outflows * |
$ (1,278,116) |
$ (1,232,680) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
|||||
For nine months ending September 30, 2014 and September 30, 2013 |
|||||
(unaudited) |
|||||
Nine Months Ended |
|||||
Sep 30, |
Sep 30, |
||||
2014 |
2013 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|||||
Net loss |
$ (4,111,160) |
$ (3,345,858) |
|||
Income (loss) attributable to non-controlling interest |
(406,483) |
(116,148) |
|||
Adjustments to reconcile net loss to net cash provided (used in) operating activities: |
|||||
Depreciation and amortization |
1,394,201 |
1,046,730 |
|||
Loss on extinguishment of debt |
533,177 |
- |
|||
Provision for losses on accounts receivable |
26,087 |
64,134 |
|||
Amortization of deferred financing costs |
2,567 |
20,671 |
|||
Amortization of convertible debt premium |
9,997 |
- |
|||
Increase (decrease) in fair value of warrant liability |
(101,885) |
(272,072) |
|||
Noncash interest expense |
624,108 |
528,489 |
|||
Stock-based compensation |
338,790 |
439,191 |
|||
Changes in operating assets and liabilities |
|||||
(Increase) decrease in: |
|||||
Accounts receivable and unbilled revenue |
(231,417) |
(425,574) |
|||
Due from related party |
283,356 |
(414,866) |
|||
Inventory |
544,159 |
251,254 |
|||
Prepaid and other current assets |
(326,378) |
(25,859) |
|||
Increase (decrease) in: |
|||||
Accounts payable |
215,103 |
(14,634) |
|||
Accrued expenses and other current liabilities |
348,066 |
404,479 |
|||
Due to related party |
(34,843) |
16,154 |
|||
Other long-term liabilities |
(10,206) |
(10,206) |
|||
Net cash provided by (used in) operating activities |
(902,761) |
(1,854,115) |
|||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|||||
Purchases of property and equipment |
(3,899,360) |
(4,473,759) |
|||
Net cash used in investing activities |
(3,899,360) |
(4,473,759) |
|||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|||||
Proceeds from issuance of convertible debentures |
1,450,000 |
2,900,000 |
|||
Proceeds from sale of common stock, net of costs |
3,243,217 |
965,001 |
|||
Proceeds from sale of subsidiary common stock, net of costs |
- |
(4,558) |
|||
Convertible debenture transaction costs |
- |
(12,222) |
|||
Proceeds from related party loan |
3,000,000 |
- |
|||
Principal payments on capital lease obligations |
- |
- |
|||
Cancellation of restricted stock |
- |
(2,495) |
|||
Distributions to non-controlling interest |
(168,546) |
(243,903) |
|||
Net cash provided by financing activities |
7,524,671 |
3,601,823 |
|||
Net decrease in cash and cash equivalents |
2,722,550 |
(2,726,051) |
|||
Cash and cash equivalents, beginning of the period |
$ 9,804,291 |
$ 13,362,919 |
|||
Cash and cash equivalents, end of the period |
$ 12,526,841 |
$ 10,636,868 |
SOURCE American DG Energy Inc.
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