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PHONE: 877.292.2343
EMAIL: INFO@AMERICANDG.COM
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News Releases

American DG Energy Reports Second Quarter 2014 Financial Performance
Second quarter revenue increases by 17% compared to a year ago period

WALTHAM, Mass., Aug. 14, 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 $2,071,222 in the second quarter of 2014, compared to $1,769,783 for the same period in 2013, an increase of 17%. GAAP diluted loss per share (EPS) was $0.03 in the second 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 17% to $2,071,222 in the second quarter of 2014, compared to $1,769,783 for the same period in 2013.  
  • Total gross profit margin in North America without depreciation was 30% in the second quarter of 2014.
  • EBITDA cash outflows for American DG Energy in North America were $(295,122) in the second quarter of 2014. Consolidated EBITDA cash outflows with EuroSite Power were $(550,005) in the second quarter of 2014.
  • On August 6, 2014, we closed a public financing with gross proceeds of approximately $4 million.
  • As of August 14, 2014, we have $11.1 million of cash, net working capital of approximately $12.2 million and approximately $2.4 million of prepaid projects in process.
  • The total revenue value of our On-Site Utility energy agreements since inception is approximately $328 million using various market assumptions and estimates made by the Company.

Operations

  • We currently operate 122 energy systems and our current backlog consists of 36 energy systems.
  • Total energy production was 23.4 million kWh in the second quarter of 2014. 
  • The associated revenue was attributable to the following core markets:

Fitness

25%

Hospitality

22%

Housing

22%

Healthcare

12%

Other

11%

Education

8%

TOTAL

100%

  • The revenue was distributed by energy type as is outlined in the following table:

Electricity

 

60%

Thermal

 

31%

Cooling

 

9%

TOTAL

 

100%

  • We reached agreements with Green Hill Retirement Community in West Orange, New Jersey for a 75 kW CHP system
     
  • We began operations at the following three properties:
     
    • 80-ton Chiller at a facility in New Jersey
    • 400 ton Chiller at a facility in New Jersey
    • 75kW CHP system at a facility in Maryland

American DG Energy will hold its earnings conference call today, August 14, 2014 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 Wednesday, August 20, 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 10050901.

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 June 30, 2014 and December 31, 2013

(unaudited)

       
 

June 30,

 

December 31,

 

2014

 

2013

ASSETS

     

Current assets:

     

Cash and cash equivalents

$     7,847,554

 

$       9,804,291

Accounts receivable, net

1,099,951

 

988,420

Unbilled revenue

22,471

 

12,765

Due from related party

29,323

 

304,288

Inventory

1,675,899

 

2,246,335

Prepaid and other current assets

396,893

 

196,939

Total current assets

11,072,091

 

13,553,038

Property, plant and equipment, net

23,575,800

 

21,931,289

Accounts receivable, long-term

14,400

 

45,200

Other assets, long-term

80,129

 

54,768

TOTAL ASSETS

$   34,742,420

 

$     35,584,295

       

LIABILITIES AND STOCKHOLDERS' EQUITY

     

Current liabilities:

     

Accounts payable

$        640,411

 

$          871,079

Accrued expenses and other current liabilities

762,849

 

622,568

Due to related party

150,843

 

178,216

Total current liabilities

1,554,103

 

1,671,863

Long-term liabilities:

     

Convertible debentures

18,845,072

 

18,272,807

Convertible debt due to related parties

4,794,380

 

3,425,573

Warrant liability

141,277

 

132,265

Other long-term liabilities

9,072

 

15,876

Total liabilities

25,343,904

 

23,518,384

       

Stockholders' equity:

     

American DG Energy Inc. stockholders' equity:

     

Common stock

50,078

 

49,818

Additional paid-in capital

40,919,484

 

40,110,305

Accumulated deficit

(32,285,025)

 

(29,343,517)

Total American DG Energy Inc. stockholders' equity

8,684,537

 

10,816,606

Noncontrolling interest

713,979

 

1,249,305

Total stockholders' equity

9,398,516

 

12,065,911

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$   34,742,420

 

$     35,584,295

       

Reclassifications: certain prior period balances have been reclassified to conform with current period presentation.

 

 

CONSOLIDATED STATEMENT OF OPERATIONS

For three months ending June 30, 2014 and June 30, 2013

(unaudited)

 

Three Months Ended

 

June 30,

 

June 30,

 

2014

 

2013

Revenues

     

Energy revenues

$         1,752,517

 

$         1,732,497

Turnkey & other revenues

318,705

 

37,286

 

2,071,222

 

1,769,783

Cost of sales

     

Fuel, maintenance and installation

1,485,589

 

1,136,802

Depreciation expense

412,313

 

329,302

 

1,897,902

 

1,466,104

Gross profit

173,320

 

303,679

Operating expenses

     

General and administrative

775,998

 

844,418

Selling

247,358

 

277,388

Engineering

198,677

 

267,588

 

1,222,033

 

1,389,394

Loss from operations

(1,048,713)

 

(1,085,715)

Other income (expense)

     

Interest and other income

7,364

 

42,144

Interest expense

(378,820)

 

(260,537)

Change in fair value of warrant liability

57,101

 

208,187

 

(314,355)

 

(10,206)

Loss before provision for income taxes

(1,363,068)

 

(1,095,921)

Provision for income taxes

(2,940)

 

(7,055)

Consolidated net loss

(1,366,008)

 

(1,102,976)

Loss attributable to the noncontrolling interest

89,856

 

54,484

Net loss attributable to American DG Energy Inc.

$       (1,276,152)

 

$       (1,048,492)

       
 

$                (0.03)

 

$                (0.02)

Weighted average shares outstanding - basic and diluted

49,923,697

 

48,619,404

       

Non-GAAP financial disclosure

     

Loss from operations

$       (1,048,713)

 

$       (1,085,715)

Depreciation & other non-cash expense

428,859

 

355,044

Stock-based compensation

69,849

 

146,672

Adjusted EBITDA

$          (550,005)

 

$          (583,999)

       

* EBITDA cash outflows, for the second quarter of 2014, were $(295,122) for American DG Energy in North America and $(254,883) for EuroSite Power.

 

 

CONSOLIDATED STATEMENT OF OPERATIONS

For six months ending June 30, 2014 and June 30, 2013

(unaudited)

 

Six Months Ended

 

June 30,

 

June 30,

 

2014

 

2013

Revenues

     

Energy revenues

$         4,148,798

 

$         3,746,934

Turnkey & other revenues

450,224

 

82,161

 

4,599,022

 

3,829,095

Cost of sales

     

Fuel, maintenance and installation

3,193,235

 

2,520,585

Depreciation expense

893,877

 

656,990

 

4,087,112

 

3,177,575

Gross profit

511,910

 

651,520

Operating expenses

     

General and administrative

1,549,958

 

1,482,843

Selling

508,474

 

690,186

Engineering

462,448

 

556,156

 

2,520,880

 

2,729,185

Loss from operations

(2,008,970)

 

(2,077,665)

Other income (expense)

     

Interest and other income

22,348

 

66,288

Interest expense

(733,323)

 

(559,346)

Loss on extinguishment of debt

(533,177)

 

-

Change in fair value of warrant liability

(9,012)

 

319,006

 

(1,253,164)

 

(174,052)

Loss before provision for income taxes

(3,262,134)

 

(2,251,717)

Provision (benefit) for income taxes

(9,880)

 

(41,639)

Consolidated net loss

(3,272,014)

 

(2,293,356)

Loss attributable to the noncontrolling interest

330,506

 

75,813

Net loss attributable to American DG Energy Inc.

$       (2,941,508)

 

$       (2,217,543)

       
 

$                (0.06)

 

$                (0.05)

Weighted average shares outstanding - basic and diluted

49,871,101

 

48,555,424

       

Non-GAAP financial disclosure

     

Loss from operations

$       (2,008,970)

 

$       (2,077,665)

Depreciation & other non-cash expense

940,840

 

694,697

Stock based compensation

208,478

 

283,360

Adjusted EBITDA

(859,652)

 

(1,099,608)

Grants from rebates and incentives

-

 

146,318

Total EBITDA cash outflows

$          (859,652)

 

$          (953,290)

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

For six months ending June 30, 2014 and June 30, 2013

(unaudited)

     

Six Months Ended

     

June 30,

 

June 30,

     

2014

 

2013

CASH FLOWS FROM OPERATING ACTIVITIES:

     

Net loss

$      (2,941,508)

 

$      (2,217,543)

   

Income (loss) attributable to noncontrolling interest

(330,506)

 

(75,813)

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

     
   

Depreciation and amortization

940,840

 

694,697

   

Loss on extinguishment of debt

533,177

 

-

   

Provision for losses on accounts receivable

-

 

64,134

   

Amortization of deferred financing costs

(7,427)

 

5,112

   

Amortization of convertible debt premium

15,472

 

-

   

Increase (decrease) in fair value of warrant liability

9,012

 

(319,006)

   

Noncash interest expense

624,368

 

528,489

   

Stock-based compensation

208,478

 

283,360

Changes in operating assets and liabilities

     
 

(Increase) decrease in:

     
   

Accounts receivable and unbilled revenue

(90,437)

 

(162,844)

   

Due from related party

274,965

 

(659,968)

   

Inventory

570,436

 

(53,826)

   

Prepaid and other current assets

(275,465)

 

3,312

 

Increase (decrease) in:

     
   

Accounts payable

(230,668)

 

(260,404)

   

Accrued expenses and other current liabilities

140,281

 

34,459

   

Due to related party

(27,373)

 

14,143

   

Other long-term liabilities

(6,804)

 

(6,804)

Net cash used in operating activities

(593,159)

 

(2,128,502)

           

CASH FLOWS FROM INVESTING ACTIVITIES:

     
   

Purchases of property and equipment

(2,664,953)

 

(3,123,791)

Net cash used in investing activities

(2,664,953)

 

(3,123,791)

           

CASH FLOWS FROM FINANCING ACTIVITIES:

     
   

Proceeds from issuance of convertible debentures

1,450,000

 

2,874,556

   

Proceeds from sale of subsidiary common stock, net of costs

-

 

(4,558)

   

Principal payments on capital lease obligations

-

 

(1,682)

   

Distributions to noncontrolling interest

(148,625)

 

(163,109)

Net cash provided by financing activities

1,301,375

 

2,705,207

           

Net decrease in cash and cash equivalents

(1,956,737)

 

(2,547,086)

Cash and cash equivalents, beginning of the period

9,804,291

 

13,362,919

Cash and cash equivalents, end of the period

$        7,847,554

 

$      10,815,833

 

 

SOURCE American DG Energy Inc.