EuroSite Power Inc. Reports Third Quarter 2014 Financial Performance
Third quarter revenue increases by 108% compared to a year ago period
WALTHAM, Mass., Nov. 13, 2014 /PRNewswire/ -- EuroSite Power Inc. (OTCBB: EUSP), 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 $350,561 in the third quarter of 2014, compared to $168,148 for the same period in 2013, an increase of 108%. GAAP diluted loss per share (EPS) was $0.01 in the third quarter of 2014, compared with a loss per share of $0.01 for the same period in 2013.
Major Highlights:
Financial
- Total revenue increased by 108% to $350,561 in the third quarter of 2014, compared to $168,148 for the same period in 2013.
- Total gross profit margin excluding depreciation improved to 8.9% in the third quarter of 2014, versus a negative 2.4% for the same period in 2013.
- We finished the third quarter of 2014 with approximately $3.6 million in cash and $3.4 million in working capital.
- The total revenue value of our On-Site Utility energy agreements since inception is approximately $90,493,000 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
- We currently operate 19 systems with a total contract value of $51.9 million.
- Our current backlog is 13 systems for a total contract value of $38.6 million.
- Total energy production was 3.4 million kWh in the third quarter of 2014.
- We reached agreements with FJB Hotels for 100kW at two locations.
- We began operations at Crow Wood Leisure with a 200 kW combined heat and power (CHP) system
EuroSite Power Inc. will hold its earnings conference call today, November 13, 2014 at 10:30 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 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 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. 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 and December 31, 2013 |
|||
| (unaudited) |
|||
| Sep 30, |
Dec 31, |
||
| ASSETS |
2014 |
2013 |
|
| Current assets: |
|||
| Cash and cash equivalents |
$ 3,599,046 |
$ 1,519,602 |
|
| Accounts receivable |
169,731 |
153,514 |
|
| Value added tax receivable |
139,987 |
3,541 |
|
| Inventory |
80,624 |
385,660 |
|
| Other current assets |
50,438 |
52,957 |
|
| Total current assets |
4,039,826 |
2,115,274 |
|
| Property, plant and equipment, net |
5,791,969 |
4,030,330 |
|
| Other assets, long-term |
12,657 |
20,428 |
|
| TOTAL ASSETS |
$ 9,844,452 |
$ 6,166,032 |
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|||
| Current liabilities: |
|||
| Accounts payable |
$ 451,619 |
$ 202,631 |
|
| Accrued expenses and other current liabilities |
165,435 |
71,080 |
|
| Total current liabilities |
617,054 |
273,711 |
|
| Long-term liabilities: |
|||
| Convertible debentures |
2,287,801 |
1,800,000 |
|
| Convertible debentures Due to related parties |
3,690,645 |
2,200,000 |
|
| Loan from related party |
3,000,000 |
||
| Total liabilities |
9,595,500 |
4,273,711 |
|
| Stockholders' equity: |
|||
| Common Stock |
56,747 |
56,747 |
|
| Additional paid-in capital |
6,814,029 |
6,690,610 |
|
| Accumulated deficit |
(6,621,824) |
(4,855,036) |
|
| Total stockholders' equity |
$ 248,952 |
$ 1,892,321 |
|
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
9,844,452 |
6,166,032 |
|
| 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 |
$ 277,335 |
$ 168,148 |
||
| Turnkey & other revenues |
73,226 |
- |
||
| Total Revenues |
350,561 |
168,148 |
||
| Cost of sales |
||||
| Fuel, maintenance and installation |
319,461 |
172,209 |
||
| Depreciation expense |
83,430 |
19,034 |
||
| 402,891 |
191,243 |
|||
| Gross profit |
(52,330) |
(23,095) |
||
| Operating expenses |
||||
| General and administrative |
174,786 |
189,912 |
||
| Selling |
133,720 |
104,138 |
||
| Engineering |
17,617 |
33,787 |
||
| 326,123 |
327,837 |
|||
| Loss from operations |
(378,453) |
(350,932) |
||
| Other income (expense) |
||||
| Interest and other income |
1,951 |
2,480 |
||
| Interest expense |
(2,146) |
(40,000) |
||
| Loss on extinguishment of convertible debt |
- |
|||
| (195) |
(37,520) |
|||
| Loss before income taxes |
(378,648) |
(388,452) |
||
| Provision for income taxes |
- |
- |
||
| Net loss |
$ (378,648) |
$ (388,452) |
||
| Net loss per share - basic and diluted |
$ (0.01) |
$ (0.01) |
||
| Weighted-average shares outstanding - basic and diluted |
56,747,100 |
56,747,100 |
||
| Non-GAAP financial disclosure |
||||
| Loss from operations |
$ (378,453) |
$ (350,932) |
||
| Depreciation expense |
84,578 |
16,652 |
||
| Stock based compensation |
43,562 |
27,795 |
||
| Adjusted EBITDA |
(250,313) |
(306,485) |
||
| 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 |
$ 1,117,980 |
$ 476,010 |
|
| Turnkey & other revenues |
81,324 |
- |
|
| Total Revenues |
1,199,304 |
476,010 |
|
| Cost of sales |
|||
| Fuel, maintenance and installation |
972,088 |
443,080 |
|
| Depreciation expense |
226,892 |
51,497 |
|
| 1,198,980 |
494,577 |
||
| Gross profit |
324 |
(18,567) |
|
| Operating expenses |
|||
| General and administrative |
603,196 |
756,461 |
|
| Selling |
365,884 |
413,926 |
|
| Engineering |
71,585 |
99,998 |
|
| 1,040,665 |
1,270,385 |
||
| Loss from operations |
(1,040,341) |
(1,288,952) |
|
| Other income (expense) |
|||
| Interest and other income |
4,760 |
4,278 |
|
| Interest expense |
(17,630) |
(65,745) |
|
| Loss on extinguishment of convertible debt |
(713,577) |
||
| (726,447) |
(61,467) |
||
| Loss before income taxes |
(1,766,788) |
(1,350,419) |
|
| Provision for income taxes |
- |
- |
|
| Net loss |
$ (1,766,788) |
$ (1,350,419) |
|
| Net loss per share - basic and diluted |
$ (0.03) |
$ (0.02) |
|
| Weighted-average shares outstanding - basic and diluted |
56,747,100 |
56,747,100 |
|
| Non-GAAP financial disclosure |
|||
| Loss from operations |
$ (1,040,341) |
$ (1,288,952) |
|
| Depreciation expense |
231,514 |
56,196 |
|
| Stock based compensation |
123,419 |
172,799 |
|
| Adjusted EBITDA |
(685,408) |
(1,059,957) |
|
| CONSOLIDATED STATEMENT OF CASH FLOWS |
|||
| For nine months ending September 30, 2014 and September 30, 2013 |
|||
| (unaudited) |
|||
| Nine Months Ending |
|||
| Sep 30, |
Sep 30, |
||
| 2014 |
2013 |
||
| CASH FLOWS FROM OPERATING ACTIVITIES: |
|||
| Net loss |
$ (1,766,788) |
$ (1,350,419) |
|
| Adjustments to reconcile net loss to net cash used in operating activities: |
- |
||
| Depreciation and amortization |
231,514 |
56,196 |
|
| Loss on extinguishment of debt |
713,577 |
||
| Amortization of convertible debt premium |
(109,332) |
||
| Amortization of deferred financing |
784 |
||
| Stock-based compensation |
123,419 |
172,799 |
|
| Changes in operating assets and liabilities |
|||
| (Increase) decrease in: |
|||
| Accounts receivable |
(16,217) |
(23,882) |
|
| Value added tax receivable |
(136,446) |
108,552 |
|
| Inventory |
305,036 |
639,725 |
|
| Prepaid and other current assets |
(55,361) |
(93,694) |
|
| Other long term assets |
(10,932) |
||
| Increase (decrease) in: |
|||
| Accounts payable |
248,988 |
56,094 |
|
| Due to related party |
- |
(91,322) |
|
| Accrued expenses and other current liabilities |
94,355 |
43,841 |
|
| Net cash used in operating activities |
(377,403) |
(482,110) |
|
| CASH FLOWS FROM INVESTING ACTIVITIES: |
|||
| Purchases of property and equipment |
(1,993,153) |
(2,148,185) |
|
| Net cash used in investing activities |
(1,993,153) |
(2,148,185) |
|
| CASH FLOWS FROM FINANCING ACTIVITIES: |
|||
| Proceeds from sale of common stock net of costs |
(4,559) |
||
| 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 |
4,450,000 |
3,995,441 |
|
| Net increase (decrease) in cash and cash equivalents |
2,079,444 |
1,365,146 |
|
| Cash and cash equivalents, beginning of the period |
1,519,602 |
832,511 |
|
| Cash and cash equivalents, end of the period |
$ 3,599,046 |
$ 2,197,657 |
|
SOURCE EuroSite Power Inc.
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