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

American DG Energy Reports 2014 Financial Performance
Revenue up 15% and Gross Energy Margin before Depreciation at 31%

WALTHAM, Mass., March 31, 2015 /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 $8,567,553 for 2014 compared to $7,461,880 for 2013, an increase of 15%. Revenues for the fourth quarter of 2014 were $2,081,838 compared to $1,870,471 for 2013, an increase of 11%. GAAP diluted loss per share (EPS) was $0.12 for 2014, compared with a GAAP diluted loss per share of $0.10 for 2013. GAAP diluted loss per share (EPS) was $0.03 in the fourth quarter of 2014, compared with a GAAP diluted loss per share of $0.03 for the same period in 2013.

Major Highlights:

Financial

  • Total revenue increased by $1,105,673 to $8,567,553 for 2014, compared to $7,461,880 for 2013.  
  • Total gross profit margin without depreciation and site impairments was 31% for 2014 compared to 33% for 2013.
  • Total revenue for the fourth quarter of 2014 was $2,081,838 compared to $1,870,471 for the same period in 2013, an increase of $211,367 or 11%.
  • We closed 2014 with $11.8 million in cash and $13.3 million in working capital, compared to $9.8 million of cash and $11.9 million in working capital at year-end 2013.
  • During the fourth quarter of 2014, EuroSite Power an American DG Energy subsidiary, filed 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.
  • In October 2014, we closed an arrangement saving $8.2 million of future debt and interest cash outflows for American DG Energy and EuroSite Power.
  • During October and November 2014 our subsidiary, EuroSite Power, raised an additional $1.5 million through the placement of common stock.
  • The total revenue value of our On-Site Utility energy agreements since inception is approximately $319 million using various market assumptions and estimates made by the Company.
  • We continue to buy our own common shares to the extent allowed by the average trading volume.

Operations

  • Our efforts to enhance productivity at sites is beginning to show results. We have a significant program underway to enhance the productivity of sites throughout the United States. This program is under the leadership of a new Chief Engineer and new Co-CEO. Of the large cross-section of sites under productivity enhancement, a 20% increase in energy output was seen in November and December and double digit percent increases have continued through March.
  • As a result of these efforts, in January 2015 our American DG Energy maintained US sites reached 2,000,000 kWh of electrical generation for the first time in in our history.
  • We currently operate 123 energy systems and our current backlog consists of 23 energy systems.
  • The associated revenue was attributable to the following core markets:

 











Fitness

23%











Housing

21%











Hospitality

20%











Healthcare

16%











Education

11%











Other

9%











TOTAL

100%

 

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

 











Electricity


59%











Thermal


33%











Cooling


8%











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 reached agreement with the Topland Group for 7 systems (879kW) to be installed at various Menzies Hotels throughout the UK.
  • We reached agreement with FJB Hotels for 2 systems for 2 luxury hotels in Poole.

  • During 2014 we brought into operation systems at:
    • 75kW CHP system at a facility in Maryland
    • 80-ton chiller at a facility in New Jersey
    • 400 ton chiller at a facility in New Jersey
    • 170-ton chiller at a facility in New Jersey
    • Dunstable Leisure Centre (100kW)
    • Bury St Edmunds Leisure Centre (100kW)
    • Clifton Hospital (100kW)
    • Crow Wood Leisure Club (200kw)
    • Menzies Aberdeen (81kW)
    • Menzies Derby (164kW)

American DG Energy will hold its earnings conference call today, March 31, 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 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, 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 10062024.

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 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 SHEETS

(unaudited)




Dec 31, 2014


Dec 31, 2013

ASSETS




Current assets:




Cash and cash equivalents

$   11,825,915


$       9,804,291

Accounts receivable, net

1,140,811


988,420

Unbilled revenue

12,533


12,765

Due from related party

39,682


304,288

Inventory

1,153,927


2,246,335

Prepaid and other current assets

852,069


196,939

Total current assets

15,024,937


13,553,038

Property, plant and equipment, net

24,885,155


21,931,289

Accounts receivable, long-term

3,600


45,200

Other assets, long-term

92,148


54,768

TOTAL ASSETS

$   40,005,840


$     35,584,295





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$        605,530


$          871,079

Accrued expenses and other current liabilities

485,570


622,568

Due to related party

630,805


178,216

Total current liabilities

1,721,905


1,671,863

Long-term liabilities:




Convertible debentures

1,645,444


1,800,000

Convertible debt due to related parties

15,864,215


19,898,380

Warrant liability

6,780


132,265

Note payable related party

3,000,000


-

Other long-term liabilities

2,227


15,876

Total liabilities

22,240,571


23,518,384





Stockholders' equity:




American DG Energy Inc. stockholders' equity:




Common Stock

52,140


49,818

Additional paid-in capital

49,854,998


40,110,305

Accumulated deficit

(35,232,411)


(29,343,517)

Total American DG Energy Inc. stockholders' equity

14,674,727


10,816,606

Non-controlling interest

3,090,542


1,249,305

Total stockholders' equity

17,765,269


12,065,911

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$   40,005,840


$     35,584,295





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

 

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)


For Year Ended


Dec 31, 2014


Dec 31, 2013

Revenues




Energy revenues

$ 7,808,933


$ 7,164,226

Turnkey & other revenues

758,620


297,654


8,567,553


7,461,880

Cost of sales




Fuel, maintenance and installation

5,914,525


4,862,905

Site impairments

723,438


-

Depreciation expense

1,843,817


1,382,693


8,481,780


6,245,598

Gross profit

85,773


1,216,282

Operating expenses




General and administrative

3,238,141


2,940,833

Selling

1,078,351


1,383,077

Engineering

897,445


1,018,914


5,213,937


5,342,824

Loss from operations

(5,128,164)


(4,126,542)

Other income (expense)




Interest and other income

92,928


49,291

Interest expense

(1,402,493)


(1,292,766)

Debt conversion inducement expense

(324,977)


-

Loss on extinguishment of debt

(533,177)


-

Change in fair value of warrant liability

125,485


257,189


(2,042,234)


(986,286)

Loss before benefit (provision) for income taxes

(7,170,398)


(5,112,828)

Benefit/(provision) for income taxes

645,040


(13,450)

Consolidated net loss

(6,525,358)


(5,126,278)

Loss attributable to the non-controlling interest

540,328


239,606

Net loss attributable to American DG Energy Inc.

$ (5,985,030)


$ (4,886,672)

Net loss per share - basic and diluted

$          (0.12)


$          (0.10)

Weighted average shares outstanding - basic and diluted

50,999,408


48,932,838

Non-GAAP financial disclosure




Loss from operations

$ (5,128,164)


$ (4,126,542)

Depreciation & other non-cash expense

1,888,102


1,471,914

Site impairments

723,438


-

Stock based compensation

475,899


596,349

Adjusted EBITDA

(2,040,725)


(2,058,279)

Grants, tax rebates, UK ECA and incentives

27,500


285,718

Total EBITDA cash outflows *

$ (2,013,225)


$ (1,772,561)

 


* EBITDA cash outflows, for the twelve months ending December 31, 2014, were $1,000,662 for American DG Energy in North America and $1,012,563 for EuroSite Power. Not included is $628,917 of cash due from the UK government which we expect to collect in early Q2, 2015.


 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)


Twelve Months Ended


Dec 31, 2014


Dec 31, 2013

CASH FLOWS FROM OPERATING ACTIVITIES:




Net loss

$  (5,888,894)


$  (4,886,672)


Loss attributable to non-controlling interest

(636,464)


(239,606)

Adjustments to reconcile net loss to net cash used in operating activities:





Depreciation and amortization

1,888,102


1,471,914


Loss on extinguishment of debt

533,177


-


Non-cash site impairments

723,438




Provision for losses on accounts receivable

49,322


235,638


Amortization of deferred financing costs

48,176


10,224


Decrease in fair value of warrant liability

(125,485)


(257,189)


Non-cash interest expense

1,210,086


1,170,051


Stock-based compensation

475,899


596,349


Non-cash debt conversion inducement expense

324,977


-

Changes in operating assets and liabilities





(Increase) decrease in:





Accounts receivable and unbilled revenue

(159,881)


(454,053)


Due from related party

264,606


(285,916)


Inventory

1,092,408


674,109


Prepaid and other current assets

(798,263)


93,449


Increase (decrease) in:





Accounts payable

(265,549)


105,461


Accrued expenses and other current liabilities

20,610


90,148


Due to related party

452,589


136,404


Other long-term liabilities

8,486


(13,568)

Net cash used in operating activities

(782,660)


(1,553,257)





CASH FLOWS FROM INVESTING ACTIVITIES:





Purchases of property and equipment

(5,649,433)


(5,590,055)

Net cash used in investing activities

(5,649,433)


(5,590,055)






CASH FLOWS FROM FINANCING ACTIVITIES:





Proceeds from issuance of convertible debentures

1,450,000


2,947,380


Proceeds from sale of common stock, net of costs

3,269,275


952,333


Proceeds from sale of subsidiary common stock, net of costs

1,486,329


-


Share repurchases

(450,696)


-


Share repurchases subsidiary

(42,902)


-


Proceeds from note payable related party to subsidiary

3,000,000


-


Principal payments on capital lease obligations

-


(3,365)


Distributions to non-controlling interest

(258,289)


(311,664)

Net cash provided by financing activities

8,453,717


3,584,684

Net Increase (decrease) in cash and cash equivalents

2,021,624


(3,558,628)

Cash and cash equivalents, beginning of the period

9,804,291


13,362,919

Cash and cash equivalents, end of the period

$  11,825,915


$    9,804,291








 

 


CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)


Three Months Ended


Dec 31, 2014


Dec 31, 2013

Revenues




Energy revenues

$         1,962,412


$         1,764,727

Turnkey & other revenues

119,426


105,744


2,081,838


1,870,471

Cost of sales




Fuel, maintenance and installation

1,520,287


1,307,545

Site impairments

723,438


-

Depreciation expense

485,644


396,754


2,729,369


1,704,299

Gross profit

(647,531)


166,172

Operating expenses




General and administrative

907,439


751,542

Selling

277,893


434,435

Engineering

267,919


236,193


1,453,251


1,422,170

Loss from operations

(2,100,782)


(1,255,998)

Other income (expense)




Interest and other income

34,988


(38,628)

Interest expense

(318,278)


(386,642)

Debt conversion inducement expense

(324,977)


-

Change in fair value of warrant liability

23,600


(14,883)


(584,667)


(440,153)

Loss before benefit for income taxes

(2,685,449)


(1,696,151)

Benefit for income taxes

677,734


31,879

Consolidated net loss

(2,007,715)


(1,664,272)

Loss attributable to the non-controlling interest

229,981


123,458

Net loss attributable to American DG Energy Inc.

$       (1,777,734)


$       (1,540,814)


$                (0.03)


$                (0.03)

Weighted average shares outstanding - basic and diluted

52,527,925


49,592,306

Non-GAAP financial disclosure




Loss from operations

$       (2,100,782)


$       (1,255,998)

Depreciation & other non-cash expense

477,626


417,817

Site impairments

723,438


-

Stock based compensation

137,109


157,158

Adjusted EBITDA

(762,609)


(681,023)

Grants, tax rebates and incentives

27,500


133,775

Total EBITDA cash outflows *

$          (735,109)


$          (547,248)





* EBITDA cash outflows, for the fourth quarter of 2014, were $407,954 for American DG Energy in North America and $327,155 for EuroSite Power. Not included is $628,917 of cash due from the UK government which we expect to collect in early Q2, 2015.

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/american-dg-energy-reports-2014-financial-performance-300058026.html

SOURCE American DG Energy Inc.