CONTACT US
PHONE: 877.292.2343
EMAIL: INFO@AMERICANDG.COM
Linked In TwitterFacebook

CONTACT US
PHONE: 877.292.2343
EMAIL: INFO@AMERICANDG.COM
Linked In TwitterFacebook

News Releases

American DG Energy Reports First Quarter 2017 Financial Performance
Delivers positive Adjusted EBITDA from continuing operations of $23,532 for the quarter

WALTHAM, Mass., May 11, 2017 /PRNewswire/ -- American DG Energy Inc. (NYSE MKT: ADGE, the "Company"), an On-Site Utility provider offering clean electricity, heat, hot water and cooling solutions to hospitality, healthcare, housing and fitness facilities, reported total revenues of $1,718,164 for the first quarter of 2017, compared to $1,514,449 for the first quarter of 2016, a 13.5% increase. GAAP diluted earnings per share (EPS) was a loss of $0.01 for the first quarter of 2017 versus a loss of $0.02 for the first quarter of 2016.

Speaking about the quarter, Co-Chief Executive Officer Benjamin Locke noted, "We continue to manage the company toward maximizing the business potential of the installed fleet. Our sites improvement initiative, including upgrading electrical metering for eighty percent of the fleet, delivered excellent margin improvement alongside new revenue growth. The over 70% year-on-year growth in demand savings-related revenue generated in the first quarter is an excellent example of the potential these improvements can produce. Looking ahead, we expect to complete the remainder of the planned site improvements and electrical metering upgrades by year end and look forward to a similar proportional improvement in revenues and adjusted gross margins (excluding depreciation), setting the company up for what we expect to be a profitable future as a subsidiary of Tecogen Inc."

Reflecting upon the Company's ongoing efforts to optimize its On-Site Utility business, On-Site Utility gross margin excluding depreciation improved in the first quarter of 2017 to 31.4% versus 25.2% for the same period in 2016, a 6.2 percentage point improvement in gross margin resulting in a 25% improvement in adjusted gross margin.

In addition, the Company delivered a cash flow positive quarter on an adjusted EBITDA cash flow basis (as defined below), with inflows of $23,532 for the first quarter of 2017 as compared to outflows of $42,679 in the comparable prior year period.

Chief Financial Officer Bonnie Brown observed, "With the elimination of the remaining balance of the convertible debt at year end 2016, the Company enjoyed a significant improvement in leverage ratios and reduction in interest expense in the first quarter of 2017. This benefit was partially offset by the mark-to-market decline in the value of our remaining stake in EuroSite Power Inc. following that company's decision to de-list their shares at year end 2016. We will continue to evaluate best uses of capital going forward and position our balance sheet to support ongoing improvement in the operations of the Company."

Major Highlights:

Consolidated Financial Results

  • Our revenues increased to $1,718,164 for the first quarter of 2017 compared to $1,514,449 for the same period in 2016, an increase of $203,715 or 13.5%.
  • On-Site Utility Energy revenues in the first quarter of 2017 was $1,627,498 compared to $1,364,285 for the same period in 2016, an increase of $263,213 or 19.3%, due to the increase in production and demand billing.
  • During the first quarter of 2017, our gross margins were 3.6% compared to 1.7% for the same period in 2016, an improvement of 118.5%, reflecting the ongoing benefit from reductions in fuel and maintenance costs as a percentage of sales.
  • Costs associated with the sale of our energy revenues was $1,116,305 for the first quarter of 2017 and $1,020,713 for the first quarter of 2016. As a result, On-Site Utility Energy gross margins, excluding depreciation, were 31.4% in the first quarter of 2017, compared to 25.2% for the same period in 2016, an improvement of 24.6% quarter over quarter.
  • Overall operating expenses increased to $599,077 for the first quarter of 2017 versus $559,164 for the same period in 2016, a 7.1% increase or $39,913 due to higher legal expense related to the planned merger with Tecogen Inc.
  • As a result of our focused efforts to improve fleet operations, adjusted EBITDA cash flows (as defined below) improved by $66,211, reaching a positive "inflow" of $23,532 for the first quarter of 2017, versus an "outflow" of $42,679 for the same period in 2016.
  • The loss from operations in the first quarter of 2017 was $536,852 compared to a loss of $534,057 for the same period in 2016, a slight increase of $2,795 or 0.5%.
  • During the first quarter of 2017 certain inventory items amounting to $946,883 were sold to Tecogen Inc. to raise cash following the repayment of the convertible debt at the end of 2016. The net transaction, with income offset by carrying value had no impact on the Q1 2017 financial statements.
  • Our GAAP cash flow from operations was a positive $1.047 million compared to a negative $893 thousand, a substantial improvement of $1.941 million, quarter over quarter, with the sale of inventory items to Tecogen Inc. accounting for about half of this improvement.

Operations

  • Improved efficiencies resulted in a 5% reduction of maintenance costs for our fleet and a 1% reduction in fuel costs quarter over quarter.
  • Overall energy production (thermal and electrical) for the first quarter of 2017 increased by 19% compared to the same period in 2016.
  • The Company is continuing to implement its program to upgrade electrical metering such that we can accurately measure the CHP system's benefit in reducing site peak electrical demand. By measuring this portion of site savings accurately, the company is eligible to collect revenue proportional to this savings. With eighty percent of the sites upgraded to date, the Company grew first quarter revenue attributed to demand savings by 74.3% over the prior year period, to $83,739 in the current year quarter as compared to $48,050 for the first quarter of 2016. We expect further site upgrade work to bring similar proportional growth in revenues.
  • Electric rates, used as the basis for customer invoicing, increased on average 2.6% for the first quarter of 2017 when compared to the same period in 2016. Gas prices increased slightly by 0.5% quarter over quarter. This proportionally increases the value of our energy produced with a minimal negative offset relative to fuel costs.
  • In total, as of March 31, 2017, we operated 92 systems totaling 5,445 kW of installed capacity.
  • Revenue for the quarter was attributable to the following core markets:

Fitness

19

%

Hospitality

12

%

Housing

27

%

Education

13

%

Healthcare

22

%

Other

7

%

Total

100

%

 

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

Electricity

58

%

Thermal

42

%

Cooling

%

Total

100

%

           

American DG Energy will hold its earnings conference call today, May 11, 2017 at 1:00 p.m. Eastern Time. To listen, dial (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. We suggest you begin dialing at least 10 minutes before the scheduled starting time. Alternately, to register for and listen to the live webcast, please go to http://investors.americandg.com/webcast.

The earnings conference call will be recorded and available for playback one hour after the end of the call through Thursday, May 18, 2017.  To listen to the playback, dial (877) 344-7529 within the U.S. (855) 669-9658 from Canada, or +1 (412) 317-0088 from other international locations and reference Replay Access Code 10105521. 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.

 

AMERICAN DG ENERGY INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)



March 31,
 2017


December 31,
 2016

ASSETS




Current assets:




Cash and cash equivalents

$

1,127,252



$

338,627


Accounts receivable, net

778,044



815,748


Unbilled revenue

17,079



18,797


Due from related party

71,468



87,845


Inventory

109,823



128,680


Assets held for sale



946,883


Prepaid and other current assets

356,496



299,667


Total current assets

2,460,162



2,636,247


Property and equipment, net

15,548,797



15,831,160


Investment securities

519,568



637,651


TOTAL ASSETS

$

18,528,527



$

19,105,058






LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$

257,100



$

270,078


Accrued expenses and other current liabilities

635,238



522,525


Due to related party

183,030



127,904


Total current liabilities

1,075,368



920,507


Long-term liabilities:




Loan due to related party

850,000



850,000


Total liabilities

1,925,368



1,770,507


Commitments and contingencies (Note 8)




Stockholders' equity:




American DG Energy Inc. stockholders' equity:




Common stock, $0.001 par value; 100,000,000 shares authorized; 50,684,095 issued and outstanding at March 31, 2017 and December 31, 2016, respectively

50,684



50,684


Additional paid-in capital

58,852,221



58,823,704


Accumulated other comprehensive loss-investment securities

(254,931)



(136,848)


Accumulated deficit

(42,025,342)



(41,381,221)


Total American DG Energy Inc. stockholders' equity

16,622,632



17,356,319


Noncontrolling interest

(19,473)



(21,768)


Total stockholders' equity

16,603,159



17,334,551


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

18,528,527



$

19,105,058


 

 

AMERICAN DG ENERGY INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)



Three Months Ended


March 31,
 2017


March 31,
 2016

Revenues




Energy revenues

$

1,627,498



$

1,364,285


Turnkey & other revenues

90,666



150,164



1,718,164



1,514,449


Cost of sales




Fuel, maintenance and installation

1,131,104



1,051,261


Depreciation expense

524,835



438,081



1,655,939



1,489,342


Gross profit

62,225



25,107


Operating expenses




General and administrative

442,795



377,638


Selling

1,704



20,524


Engineering

154,578



161,002



599,077



559,164


Loss from operations

(536,852)



(534,057)






Other income (expense), net




Interest and other income

4,716



12,715


Interest expense

(13,215)



(324,332)



(8,499)



(311,617)


Loss from continuing operations before provision for income taxes

(545,351)



(845,674)


Provision for income taxes

(87,365)



(66,427)


Loss from continuing operations

(632,716)



(912,101)


Income attributable to the noncontrolling interest

(11,405)



(1,036)


Loss attributable to American DG Energy Inc. from continuing operations

(644,121)



(913,137)


Loss from discontinued operations (Note 4)



(188,058)


Net loss attributable to American DG Energy Inc.

(644,121)



(1,101,195)


Other comprehensive loss - unrealized loss on securities

(118,083)




Comprehensive loss

$

(762,204)



$

(1,101,195)






Loss per share from continuing operations attributable to American DG Energy Inc. - basic and diluted

$

(0.01)



$

(0.02)


Loss per share from discontinued operations attributable to American DG Energy Inc. - basic and diluted

$



$


Net loss per share - basic and diluted

$

(0.01)



$

(0.02)


Weighted average shares outstanding - basic and diluted

50,684,095



50,684,095








Non-GAAP financial disclosure






Loss from operations

$

(536,852)



$

(534,057)


Depreciation

531,867



449,075


Stock based compensation

28,517



42,303


Adjusted EBITDA from continuing operations

$

23,532



$

(42,679)


 

 

AMERICAN DG ENERGY INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



Three Months Ended


March 31, 2017


March 31, 2016

CASH FLOWS FROM OPERATING ACTIVITIES:




Net loss attributable to American DG Energy, Inc.

$

(644,121)



$

(1,101,195)


Income attributable to noncontrolling interest

11,405



1,036


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




Depreciation

531,867



449,075


Loss from discontinued operations



188,058


Amortization of deferred financing costs



10,141


Non-cash interest expense



282,072


Stock-based compensation

28,517



42,303


Changes in operating assets and liabilities:




(Increase) decrease in:




Accounts receivable and unbilled revenue

39,422



(249,147)


Due from related party

16,377



(1,104)


Inventory

18,857



110,633


Assets held for sale

946,883




Prepaid and other current assets

(56,829)



(71,153)


Increase (decrease) in:




Accounts payable

(12,978)



(4,306)


Accrued expenses and other current liabilities

112,713



92,226


Due to related party

55,126



(641,982)


Net cash provided by (used in) operating activities

1,047,239



(893,343)


CASH FLOWS FROM INVESTING ACTIVITIES:




Purchases of property and equipment

(249,504)



(529,251)


Net cash used in investing activities

(249,504)



(529,251)


CASH FLOWS FROM FINANCING ACTIVITIES:




Distributions to noncontrolling interest

(9,110)



(13,258)


Net cash used in financing activities

(9,110)



(13,258)






Net increase (decrease) in cash and cash equivalents

788,625



(1,435,852)


Cash and cash equivalents, beginning of the period

338,627



4,999,709


Cash and cash equivalents, end of the period

$

1,127,252



$

3,563,857


Supplemental disclosures of cash flows information:




Cash paid during the period for:




          Income taxes

$

1,800



$

48,824


Non-cash investing and financing activities:




          Distribution of nonmonetary assets

$



$

340,069


 

SOURCE American DG Energy Inc.

For further information: Investor, John N. Hatsopoulos, American DG Energy Inc., 781.622.1120, john.hatsopoulos@americandg.com

Print Email RSS
print email rss