EuroSite Power Inc. Reports 2014 Financial Performance
Total year Revenue up 88% compared to a year ago period
WALTHAM, Mass., March 30, 2015 /PRNewswire/ -- EuroSite Power Inc. (OTCQB: EUSP), a subsidiary of American DG Energy Inc. (NYSE MKT: ADGE), a leading On-Site Utility™ solutions provider, offering clean electricity, heat, hot water and cooling solutions to hospitality, healthcare, housing and fitness facilities, reported total revenues of $1,577,873 for 2014, compared to $838,879 for 2013, an increase of 88%. GAAP diluted loss per share (EPS) was $0.04 for 2014, compared with a loss per share of $0.03 for 2013.
Major Highlights:
Financial
- Total revenue increased by 88% to $1,577,873 for 2014, compared to $838,879 for 2013.
- Total gross profit margin excluding depreciation and impairment expenses improved to 18.9% in 2014, versus 16.7% for 2013.
- We finished 2014 with approximately $3.8 million in cash and $4.3 million in working capital.
- We filed for a $648,917 Enhanced Capital Allowance (ECA) with the UK government. ECA is a cash energy tax incentive for energy-saving plant and machinery, which includes combined heat and power systems. We expect to receive this cash rebate in Q2 2015.
- The total revenue value of our On-Site Utility energy agreements since inception is approximately $90,896,600 using various market assumptions and estimates made by the Company.
- We raised $3.0 million from John Hatsopoulos, Chairman of our Board of Directors.
- During October and November 2014 we secured an additional $1.5 million through a commitment and a placement of common stock.
- On October 3, 2014, we closed an arrangement converting $3.1 million of EuroSite Power convertible debt to shares of common stock saving $3.1 million in future principal payments and $122,000 of annual cash outflows for interest.
Operations
- During 2014 we reached agreements for:
- 7 systems (879kW) with Topland Group to be installed at various Menzies Hotels throughout the UK; and
- 2 systems (200kW) with FJB Hotels for 2 luxury hotels in Poole
- The total number of system now under contract is 32 totaling 3,215kW
- During 2014 we brought into operation systems at:
- Dunstable Leisure Centre (100kW)
- Bury St Edmunds Leisure Centre (100kW)
- Clifton Hospital (100kW)
- Crow Wood Leisure Club (200kw)
- Menzies Aberdeen (81kW)
- Menzies Derby (164kW)
- In total we currently operate 21 systems totaling 1,981kW of installed capacity with a total contract value of $58 million.
- Our backlog at the end of 2014 was 11 systems totaling 1,234kW with a total contract value of $38.6 million.
- Total energy production increased by 64% to 18,156,355 kWh in 2014 compared to 2013.
- Since January 2015 we have reached agreement for another 125kW system and brought into operation a further three systems adding 300kW to our operating fleet.
EuroSite Power Inc. will hold its earnings conference call today, March 30, 2015 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 EuroSite Power to access the call. Please begin dialing at least 10 minutes before the scheduled starting time.
The earnings conference call will be recorded and available for playback one hour after the end of the call through Friday, April 17, 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 10062047.
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 EuroSite Power
EuroSite Power Limited is a subsidiary of American DG Energy Inc. (NYSE MKT: ADGE). Both companies supply low-cost energy to their 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 conventional energy suppliers – without any capital or start-up costs to the energy user – through its On-Site Utility™ energy solutions. More information can be found at www.eurositepower.co.uk.
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 that could affect our business including weather, electric price changes, gas prices, carbon credit markets and delays by government agencies to process tax and other incentives. Important other 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 December 31, 2014 December 31, 2013 |
|||
| (unaudited) |
|||
| Dec 31, 2014 |
Dec 31, 2013 |
||
| Current assets: |
|||
| Cash and cash equivalents |
$ 3,776,852 |
$ 1,519,602 |
|
| Accounts receivable |
152,664 |
153,514 |
|
| Value added & other tax receivable |
721,119 |
3,541 |
|
| Inventory |
99,925 |
385,660 |
|
| Other current assets |
33,655 |
52,957 |
|
| Total current assets |
4,784,215 |
2,115,274 |
|
| Property, plant and equipment, net |
6,348,905 |
4,030,330 |
|
| Other assets, long-term |
16,764 |
20,428 |
|
| TOTAL ASSETS |
$ 11,149,884 |
$ 6,166,032 |
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|||
| Current liabilities: |
|||
| Accounts payable |
$ 338,067 |
$ 202,631 |
|
| Accrued expenses and other current liabilities |
130,252 |
71,080 |
|
| Total current liabilities |
468,319 |
273,711 |
|
| Long-term liabilities: |
|||
| Convertible debentures |
1,645,444 |
1,800,000 |
|
| Convertible debentures Due to related parties |
987,266 |
2,200,000 |
|
| Loan - related party |
3,000,000 |
- |
|
| Total liabilities |
6,101,029 |
4,273,711 |
|
| Stockholders' equity: |
|||
| Common Stock |
65,747 |
56,747 |
|
| Additional paid-in capital |
12,147,005 |
6,690,610 |
|
| Accumulated deficit |
(7,163,897) |
(4,855,036) |
|
| Total stockholders' equity |
5,048,855 |
1,892,321 |
|
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ 11,149,884 |
$ 6,166,032 |
|
| CONSOLIDATED STATEMENT OF OPERATIONS |
|||
| For three months ending Dec 31, 2014 and Dec 31, 2013 |
|||
| (unaudited) |
|||
| Three Months Ended |
|||
| Dec 31, 2014 |
Dec 31, 2013 |
||
| Revenues |
|||
| Energy revenues |
$ 368,174 |
$ 359,608 |
|
| Turnkey & other revenues |
10,395 |
3,261 |
|
| 378,569 |
362,869 |
||
| Cost of sales |
|||
| Fuel, maintenance and installation |
308,147 |
255,683 |
|
| Site impairments |
196,672 |
- |
|
| Depreciation expense |
95,485 |
13,038 |
|
| 600,304 |
268,721 |
||
| Gross profit |
(221,735) |
94,148 |
|
| Operating expenses |
|||
| General and administrative |
273,901 |
207,229 |
|
| Selling |
125,850 |
108,434 |
|
| Engineering |
40,213 |
57,453 |
|
| 439,964 |
373,116 |
||
| Loss from operations |
(661,699) |
(278,968) |
|
| Other income (expense) |
|||
| Interest and other income |
7,922 |
1,008 |
|
| Interest expense |
(28,880) |
(40,000) |
|
| Loss on conversion of debt |
(508,333) |
- |
|
| (529,291) |
(38,992) |
||
| Loss before income taxes |
(1,190,990) |
(317,960) |
|
| Benefit from income taxes |
648,917 |
- |
|
| Net loss |
$ (542,073) |
$ (317,960) |
|
| Net loss per share - basic and diluted |
$ (0.01) |
$ (0.01) |
|
| Weighted-average shares outstanding - basic and diluted |
65,130,796 |
56,747,100 |
|
| Non-GAAP financial disclosure |
|||
| Loss from operations |
$ (661,699) |
$ (278,968) |
|
| Depreciation expense |
96,292 |
16,652 |
|
| Site impairments |
196,672 |
- |
|
| Stock based compensation |
41,580 |
27,795 |
|
| Adjusted EBITDA * |
$ (327,155) |
$ (234,521) |
|
| * Not included is $628,917 of cash due from the UK government which we expect to collect in early Q2, 2015, which should enable us to be cash flow positive for that quarter. |
| CONSOLIDATED STATEMENT OF OPERATIONS |
|||
| For twelve months ending December 31, 2014 and December 31, 2013 |
|||
| (unaudited) |
|||
| Twelve Months Ended |
|||
| Dec 31, 2014 |
Dec 31, 2013 |
||
| Revenues |
|||
| Energy revenues |
$ 1,486,154 |
$ 835,618 |
|
| Turnkey & other revenues |
91,719 |
3,261 |
|
| 1,577,873 |
838,879 |
||
| Cost of sales |
|||
| Fuel, maintenance and installation |
1,280,235 |
698,763 |
|
| Site impairments |
196,672 |
- |
|
| Depreciation expense |
322,377 |
64,535 |
|
| 1,799,284 |
763,298 |
||
| Gross profit |
(221,411) |
75,581 |
|
| Operating expenses |
|||
| General and administrative |
877,097 |
963,690 |
|
| Selling |
491,734 |
522,360 |
|
| Engineering |
111,798 |
157,451 |
|
| 1,480,629 |
1,643,501 |
||
| Loss from operations |
(1,702,040) |
(1,567,920) |
|
| Other income (expense) |
|||
| Interest and other income |
12,682 |
5,286 |
|
| Interest expense |
(46,510) |
(105,745) |
|
| Debt conversion expense |
(508,333) |
- |
|
| Loss on extinguishment of convertible debt |
(713,577) |
- |
|
| (1,255,738) |
(100,459) |
||
| Loss before income taxes |
(2,957,778) |
(1,668,379) |
|
| Benefit from income taxes |
648,917 |
- |
|
| Net loss |
$ (2,308,861) |
$ (1,668,379) |
|
| Net loss per share - basic and diluted |
$ (0.04) |
$ (0.03) |
|
| Weighted-average shares outstanding - basic and diluted |
58,889,600 |
56,747,100 |
|
| Non-GAAP financial disclosure |
|||
| Loss from operations |
$ (1,702,040) |
$ (1,567,920) |
|
| Depreciation expense |
327,806 |
75,418 |
|
| Site impairments |
196,672 |
- |
|
| Stock based compensation |
164,999 |
217,913 |
|
| Adjusted EBITDA * |
(1,012,563) |
(1,274,589) |
|
| * Not included is $628,917 of cash due from the UK government which we expect to collect in early Q2, 2015, which should enable us to be cash flow positive for that quarter. |
| CONSOLIDATED STATEMENT OF CASH FLOWS |
|||
| For six months ending December 31, 2014 and December 31, 2013 |
|||
| (unaudited) |
|||
| Twelve Months Ending |
|||
| Dec 31, 2014 |
Dec 31, 2013 |
||
| CASH FLOWS FROM OPERATING ACTIVITIES: |
|||
| Net loss |
$ (2,308,861) |
$ (1,668,379) |
|
| Adjustments to reconcile net loss to net cash used in operating activities: |
|||
| Non cash debt conversion expense |
508,333 |
- |
|
| Depreciation and amortization |
327,806 |
75,418 |
|
| Loss on extinguishment of debt |
713,577 |
- |
|
| Non-cash site impairments |
196,672 |
||
| Amortization of convertible debt premium |
(109,332) |
- |
|
| Accrued UK tax energy incentives |
(648,917) |
- |
|
| Amortization of deferred financing |
784 |
- |
|
| Stock-based compensation |
164,999 |
217,913 |
|
| Changes in operating assets and liabilities |
|||
| (Increase) decrease in: |
|||
| Accounts receivable |
850 |
(145,071) |
|
| Value added tax receivable |
(68,661) |
177,676 |
|
| Inventory |
285,735 |
788,069 |
|
| Prepaid and other current assets |
(38,578) |
(42,663) |
|
| Other long term assets |
(15,039) |
(20,428) |
|
| Increase (decrease) in: |
|||
| Accounts payable |
135,436 |
(1,133) |
|
| Due to related party |
- |
(124,206) |
|
| Accrued expenses and other current liabilities |
59,172 |
8,695 |
|
| Net cash used in operating activities |
(796,024) |
(734,109) |
|
| CASH FLOWS FROM INVESTING ACTIVITIES: |
|||
| Purchases of property and equipment |
(2,843,053) |
(2,578,800) |
|
| Net cash used in investing activities |
(2,843,053) |
(2,578,800) |
|
| CASH FLOWS FROM FINANCING ACTIVITIES: |
|||
| Proceeds from sale of Common Stock net of costs |
1,489,329 |
- |
|
| Share repurchases |
(43,002) |
- |
|
| Proceeds from related party loan |
3,000,000 |
1,100,000 |
|
| Proceeds from convertible debentures |
1,450,000 |
2,900,000 |
|
| Net cash provided by financing activities |
5,896,327 |
4,000,000 |
|
| Net increase in cash and cash equivalents |
2,257,250 |
687,091 |
|
| Cash and cash equivalents, beginning of the period |
1,519,602 |
832,511 |
|
| Cash and cash equivalents, end of the period |
$ 3,776,852 |
$ 1,519,602 |
|
SOURCE EuroSite Power Inc.
Related Links
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article