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

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.