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

EuroSite Power Inc. Reports First Quarter 2015 Financial Performance
Gross margin improves sequentially and quarter over quarter with revenue up 27% compared to a year ago

WALTHAM, Mass., May 13, 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 $548,054 for the first quarter of 2015, compared to $432,184 for the first quarter of 2014, an increase of $115,870 or 27%. GAAP diluted loss per share (EPS) was $0.01 for the first quarter of 2015, compared with a loss per share of $0.02 for the first quarter of 2014.

Major Highlights:

Financial

  • Total revenue increased by 27% to $548,054 for Q1 2015, compared to $432,184 for Q1 2014.  
  • As a result of our focus on productivity, total non-GAAP gross profit margin excluding depreciation improved to 24.3% in Q1 2015, versus 18.6% for Q4 2014 and versus 23.9% for the year ago period.
  • In April, just after the quarter, we received GBP 411,331 or approximately $625,223, for Enhanced Capital Allowance (ECA) from the UK government. ECA is a cash energy tax incentive for energy-saving plant and machinery, which includes combined heat and power systems.
  • The total revenue value of our On-Site Utility energy agreements since inception is approximately $95,536,600 using various market assumptions and estimates made by the Company.

Sales and Operations

  • During Q1 2015 we reached agreements for:
    • A 125 kW CHP system with Kingfisher Leisure Centre, Sudbury, UK.
    • A 125 kW CHP system with Basingstoke Sports Centre, UK.
  • During Q1 2015 we brought into operation a total of 4 additional systems:
    • 100 kW CHP systems for FJB Hotels installed at both their Haven Hotel and Sandbanks Hotel properties in Poole, UK.
    • A second 100 kW CHP system at the Wentworth Golf Club, home of the BMW PGA Championship
    • The third CHP system installed as part of our contract with Topland Group for seven systems – 120 kW unit at Menzies Cambridge, UK.
  • The total number of system now under contract is 34 totaling 3,460 kW.
  • In total we currently operate 25 systems totaling 2,406kW of installed capacity with a total contract value of $69.4 million.
  • Our backlog at the end of Q 1 2015 was 9 systems totaling 1,054 kW with a total contract value of $26.1 million.
  • Total energy production increased by 47% to 7,114,041 kWh in Q1 2015 compared to Q1 2014. 

EuroSite Power Inc. will hold its earnings conference call today, May 13, 2015 at 9:00 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, June 12, 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 10065464.

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 Inc. 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 SHEETS

(unaudited)






March 31,

2015


December 31,
2014

ASSETS




Current assets:




Cash and cash equivalents

$     2,020,883


$       3,776,852

Accounts receivable

187,686


152,664

Value added tax receivable

32,521


84,458

       UK tax energy incentives receivable

608,051


636,661

Inventory

104,056


99,925

Other current assets

35,487


33,655

Total current assets

2,988,684


4,784,215

Property, plant and equipment, net

6,805,089


6,348,905

Other assets, long-term

15,324


16,764

TOTAL ASSETS

$     9,809,097


$     11,149,884





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$        425,794


$          338,067

Accrued expenses and other current liabilities

112,381


130,252

Due to related party

12,963


-

Total current liabilities

551,138


468,319

Long-term liabilities:




Convertible debentures

1,630,399


1,645,444

Convertible debentures Due to related parties

978,239


987,266

Loan - related party

2,000,000


3,000,000

Total liabilities

5,159,776


6,101,029





Stockholders' equity:




Common Stock

65,747


65,747

Additional paid-in capital

12,177,868


12,147,005

Accumulated deficit

(7,594,294)


(7,163,897)

Total stockholders' equity

4,649,321


5,048,855

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$     9,809,097


$     11,149,884

 

                               

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)


Three Months Ended


March 31, 2015


March 31, 2014

Revenues




Energy revenues

$            530,648


$            430,778

Turnkey & other revenues

17,406


1,406


548,054


432,184

Cost of sales




Fuel, maintenance and installation

414,972


328,741

Depreciation expense

90,392


70,696


505,364


399,437

Gross profit

42,690


32,747

Operating expenses




General and administrative

303,340


193,174

Selling

129,449


116,114

Engineering

30,718


23,986


463,507


333,274

Loss from operations

(420,817)


(300,527)

Other income (expense)




Interest and other income

2,697


1,213

Interest expense

(12,277)


(21,778)

Loss on conversion of debt

-


(713,577)


(9,580)


(734,142)

Loss before income taxes

(430,397)


(1,034,669)

Provision for income taxes

-


-

Net loss

$          (430,397)


$       (1,034,669)

Net loss per share - basic and diluted

$                (0.01)


$                (0.02)

Weighted-average shares outstanding - basic and diluted

65,747,100


56,747,100





Non-GAAP financial disclosure




Loss from operations

$          (420,817)


$          (300,527)

Depreciation expense

90,987


72,419

Stock based compensation

30,863


47,896

Adjusted EBITDA

(298,967)


(180,212)

Grants, tax rebates and incentives

-


-

Total cash outflows

$          (298,967)


$          (180,212)

 

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)


Three Months Ended


     March 31, 2015


    March 31, 2014

CASH FLOWS FROM OPERATING ACTIVITIES:




Net loss

$     (430,397)


$ (1,034,669)

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




Depreciation and amortization

90,987


72,419

      Loss on extinguishment of debt

-


713,577

      Amortization of convertible debt premium

(24,072)


(18,222)

      Amortization of deferred financing

-


2,509

Stock-based compensation

30,863


47,896

Changes in operating assets and liabilities




(Increase) decrease in:




Accounts receivable

(35,022)


36,670

Value added tax receivable

80,547


(23,615)

Inventory

(4,131)


371,545

Prepaid and other current assets

(1,832)


(27,505)

Other long term assets

1,440


-

Increase (decrease) in:




Accounts payable

87,727


93,757

Due to related party

12,963


15,633

Accrued expenses and other current liabilities

(17,871)


28,709

Net cash (used in) provided operating activities

(208,798)


278,704





CASH FLOWS FROM INVESTING ACTIVITIES:




Purchases of property and equipment

(547,171)


(595,270)

Net cash used in investing activities

(547,171)


(595,270)





CASH FLOWS FROM FINANCING ACTIVITIES:




Payment on related party loan

(1,000,000)


-

Net cash used in financing activities

(1,000,000)


-





Net decrease in cash and cash equivalents

(1,755,969)


(316,566)

Cash and cash equivalents, beginning of the period

3,776,852


1,519,602

Cash and cash equivalents, end of the period

$    2,020,883


$   1,203,036

 

 

SOURCE EuroSite Power Inc.