EuroSite Power Inc. Reports Second Quarter 2015 Financial Performance

Company achieves milestones; Non-GAAP cash flow positive from operations, gross margin improvement and revenue up 30% compared to the same period a year ago

Aug 12, 2015, 04:00 ET from EuroSite Power Inc.

WALTHAM, Mass., Aug. 12, 2015 /PRNewswire/ -- EuroSite Power Inc. (OTCQB: EUSP), a subsidiary of American DG Energy Inc. (NYSE MKT: ADGE), 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 $542,973 for the second quarter of 2015, compared to $416,559 for the second quarter of 2014, an increase of 30%. Earnings per share (EPS) was $0.00 for the second quarter of 2015, compared with a loss per share of $0.01 for the second quarter of 2014.

Major Highlights:

Financial

  • Total revenue increased by 30% to $542,973 for Q2 2015, compared to $416,559 for Q2 2014.
  • Total operating expenses reduced by 26% to $280,865, compared to $381,268 for Q2 2014.
  • Loss per share reaches $0.00 for Q2 2015 compared to a loss of $0.01 for the same period in 2014.
  • We achieved Non-GAAP cash inflows of $512,466 for Q2 2015 and $213,479 for the first six months of 2015. This is a first and includes the collection of UK energy tax incentives.
  • The total revenue value of our On-Site Utility™ energy agreements since inception is approximately $101,120,600 using various market assumptions and estimates made by the Company.

Sales and Operations

  • 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.
  • During Q2 2015 we brought into operation 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 164 kW unit at Menzies Welcombe Hotel, Golf Course & Spa, Stratford upon Avon.
  • The total number of systems now under contract is 36 totaling 3,760 kW.
  • In total we currently operate 27 systems totaling 2,705kW of installed capacity with a total contract value of $76 million.
  • Our backlog at the end of Q2 2015 was nine systems totaling 909 kW with a total contract value of $25.1 million.
  • Total energy production increased by 44% to 7,022,032 kWh in Q2 2015 compared to Q2 2014.

EuroSite Power Inc. will hold its earnings conference call today, August 12, 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 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 10070270.

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 Inc. is a subsidiary of American DG Energy Inc. (NYSE MKT: ADGE). American DG Energy owns 48% of EuroSite Power and consolidates their financial results and P&L. 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 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.

 

CONDENSED CONSOLIDATED BALANCE SHEET

(unaudited)






June 30, 2015


Dec 31, 2014

ASSETS




Current assets:




Cash and cash equivalents

$     2,186,909


$       3,776,852

Accounts receivable

180,905


152,664

Value added tax receivable

47,154


84,458

        UK energy tax incentives receivable

-


636,661

Inventory

109,962


99,925

Other current assets

51,104


33,655

Total current assets

2,576,034


4,784,215

Property, plant and equipment, net

6,996,006


6,348,905

Other assets, long-term

13,884


16,764

TOTAL ASSETS

$     9,585,924


$     11,149,884





LIABILITIES AND EQUITY




Current liabilities:




Accounts payable

$        383,055


$          338,067

Accrued expenses and other current liabilities

198,488


130,252

Note payable to related party

2,000,000


-

Total current liabilities

2,581,543


468,319

Long-term liabilities:




Convertible debentures

1,615,354


1,645,444

Convertible debentures Due to related parties

969,212


987,266

Loan - related party

-


3,000,000

Total liabilities

5,166,109


6,101,029





Equity:




Common Stock

65,747


65,747

Additional paid-in capital

12,203,151


12,147,005

Accumulated deficit

(7,849,083)


(7,163,897)

Total stockholders' equity

4,419,815


5,048,855

TOTAL LIABILITIES AND EQUITY

$     9,585,924


$     11,149,884

 

 

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(unaudited)


Three Months Ended


June 30, 2015


June 30, 2014



Revenues




Energy revenues

$            532,604


$            409,867

Turnkey & other revenues

10,369


6,692


542,973


416,559

Cost of sales




Fuel, maintenance and installation

412,207


323,886

Depreciation expense

96,744


72,766


508,951


396,652

Gross profit

34,022


19,907

Operating expenses




General and administrative

130,405


235,236

Selling

107,023


116,050

Engineering

43,437


29,982


280,865


381,268

Loss from operations

(246,843)


(361,361)

Other income (expense)




Interest and other income

1,615


1,596

Interest expense

(11,749)


6,294


(10,134)


7,890

Loss before income taxes

(256,977)


(353,471)

Benefit from income taxes

2,188


-

Net loss

$          (254,789)


$          (353,471)

Net loss per share - basic and diluted

$                (0.00)


$                (0.01)

Weighted-average shares outstanding - basic and diluted

65,747,100


56,747,100





Non-GAAP financial disclosure




Loss from operations

$          (246,843)


$          (361,361)

Depreciation expense

97,345


74,517

Stock based compensation

25,283


31,961

Adjusted EBITDA

(124,215)


(254,883)

Grants, tax rebates and incentives

636,661


-

Total cash inflows (outflows)

$            512,446


$          (254,883)

                               

 

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(unaudited)


Six Months Ended


June 30, 2015


June 30, 2015



Revenues




Energy revenues

$         1,063,252


$            840,645

Turnkey & other revenues

27,775


8,098


1,091,027


848,743

Cost of sales




Fuel, maintenance and installation

827,179


652,627

Depreciation expense

187,136


143,462


1,014,315


796,089

Gross profit

76,712


52,654

Operating expenses




General and administrative

433,745


428,410

Selling

236,472


232,164

Engineering

74,155


53,968


744,372


714,542

Loss from operations

(667,660)


(661,888)

Other income (expense)




Interest and other income

4,312


2,809

Interest expense

(24,026)


(15,484)

Loss on conversion of debt

-


(713,577)


(19,714)


(726,252)

Loss before income taxes

(687,374)


(1,388,140)

Benefit from income taxes

2,188


-

Net loss

$          (685,186)


$       (1,388,140)

Net loss per share - basic and diluted

$                (0.01)


$                (0.02)

Weighted-average shares outstanding - basic and diluted

65,747,100


56,747,100





Non-GAAP financial disclosure




Loss from operations

$          (667,660)


$          (661,888)

Depreciation expense

188,332


146,936

Stock based compensation

56,146


79,857

Adjusted EBITDA

(423,182)


(435,095)

Grants, tax rebates and incentives

636,661


-

Total cash inflows (outflows)

$            213,479


$          (435,095)

 

 

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited)


Six Months Ended


2015


2014

CASH FLOWS FROM OPERATING ACTIVITIES:




Net loss

$     (685,186)


$ (1,388,140)

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




      Depreciation and amortization

188,332


146,936

      Loss on extinguishment of debt

-


713,577

      Amortization of convertible debt premium

(48,144)


(72,888)

      Amortization of deferred financing

-


784

      Accrued  UK tax energy incentives

636,661


-

      Stock-based compensation

56,146


79,857

Changes in operating assets and liabilities




(Increase) decrease in:




Accounts receivable

(28,241)


47,585

Value added tax receivable

37,304


(84,361)

Inventory

(10,037)


366,744

Prepaid and other current assets

(17,449)


(30,864)

Other long term assets

2,880


(17,919)

Increase (decrease) in:




Accounts payable

44,988


117,221

Due to related party

-


18,625

Accrued expenses and other current liabilities

68,236


116,472

Net cash provided by operating activities

245,490


13,629





CASH FLOWS FROM INVESTING ACTIVITIES:




Purchases of property and equipment

(835,433)


(1,091,045)

Net cash used in investing activities

(835,433)


(1,091,045)





CASH FLOWS FROM FINANCING ACTIVITIES:




Proceeds from related party

(1,000,000)


-

Proceeds from convertible debentures

-


1,450,000

Net cash (used in) provided by financing activities

(1,000,000)


1,450,000





Net (decrease) increase in cash and cash equivalents

(1,589,943)


372,584

Cash and cash equivalents, beginning of the period

3,776,852


1,519,602

Cash and cash equivalents, end of the period

$    2,186,909


$   1,892,186

 

 

SOURCE EuroSite Power Inc.



RELATED LINKS

http://www.eurositepower.co.uk