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

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 tweleve 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

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/eurosite-power-inc-reports-2014-financial-performance-300057060.html

SOURCE EuroSite Power Inc.