American DG Energy Reports Third Quarter 2013 Financial Performance

     American DG Energy Reports Third Quarter 2013 Financial Performance

Third quarter revenue increases by 26% compared to a year ago period

PR Newswire

WALTHAM, Mass., Nov. 14, 2013

WALTHAM, Mass., Nov. 14, 2013 /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 $1,762,314 in the third quarter of
2013, compared to $1,400,255 for the same period in 2012, an increase of 26%.
GAAP diluted loss per share (EPS) was $(0.02) in the third quarter of 2013,
compared with $(0.03) for the same period in 2012.

Major Highlights:

Financial

  oEnergy revenue increased by 24% to $1,652,565 in the third quarter of
    2013, compared to $1,337,831 for the same period in 2012. An energy
    feasibility study was initiated adding $109,749 to bring the year over
    year increase to 26%. Utility rates for thermal energy (such as natural
    gas) decreased approximately 6% and electricity rates decreased by 1% in
    the third quarter of 2013 compared to the same period in 2012, which
    lowered our energy revenue for the period.
  oEBITDA cash outflows for American DG Energy in North America were $26,163
    in the third quarter of 2013. The EuroSite Power cash outflows were
    $258,852; therefore, our consolidated EBITDA cash outflows were $285,015
    in the third quarter of 2013.
  oEnergy gross profit margin in North America without depreciation was over
    44% in the third quarter of 2013.
  oWe finished the third quarter of 2013 with approximately $10.6 million in
    cash.
  oThe total revenue value of our On-Site Utility energy agreements since
    inception is approximately $285 million using various market assumptions
    and estimates made by the Company.
  oThe company raised $965,001 in equity capital through private placements
    in the quarter from a major shareholder and a member of the Board of
    Directors.
  oOn August 15, 2013 shareholders of American DG Energy received a special
    dividend of an aggregate of 4,880,720 shares of EuroSite Power.

Operations

  o450 kW combined heat and power (CHP) system was approved for operation by
    New York City, effective November 12, 2013.
  o30-ton chiller commenced operation at DoubleTree by Hilton Hotel in
    Tarrytown, NY in addition to a 100 kW CHP system already operating at the
    property.
  o150 kW operating CHP system was purchased in place and added to the
    existing 75 CHP system already operating by American DG Energy at this New
    Jersey property.
  o100 kW CHP system commenced operation at DoubleTree by Hilton in Dublane
    Hydro, Scotland.
  o100 kW CHP system commenced operation at Roko Health Club in York, UK.
  o100 kW CHP system commenced operation at Roko Health Club in Chiswick, UK.
  oTwo feasibility study contracts with a major university and a large
    hospitality group were signed.
  o400-ton chiller new contract with a facility in New Jersey was signed.
  o100 kW CHP system new contract with Bury St Edmunds Leisure Centre in
    Suffolk, UK was signed.
  o100 kW CHP system new contract with Dunstable Leisure Centre in Dunstable,
    UK was signed.
  oWe currently operate 109 energy systems (not including the six CHP
    systems, 450 kW, approved by New York City on November 12, 2013) and our
    current backlog consists of34 energy systems.
  oTotal energy production increased by 32% to 22.7 million kWh in the third
    quarter of 2013 compared to the same period in 2012. 
  oThe associated revenue was attributable to the following core markets:



               Hospitality 22  %
               Housing     21  %
               Fitness     20  %
               Education   17  %
               Healthcare  16  %
               Other       4   %
               TOTAL       100 %



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



               Electricity 41  %
               Thermal     30  %
               Cooling     29  %
               TOTAL       100 %



  oThe company welcomed John W. Rowe to the Board of Directors, adding years
    of management and operational expertise in the energy space, having
    notably served as Chairman and Chief Executive Officer at Exelon
    Corporation.

American DG Energy will hold its earnings conference call today, November 14,
2013 at 10:00 a.m. Eastern Time. To listen, call (877)870‑4263 within the
U.S., (855) 669-9657 from Canada, or (412) 317-0790 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 Thursday, November 21, 2013. 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 10036228.

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.comor 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 STATEMENT OF OPERATIONS

For the Three Months Ended September 30, 2013 and September 30, 2012

(unaudited)
                Three Months Ended Sept 30, 2013
                                                                   Three
                                                                   Months
                American DG  EuroSite
                                        Eliminations  Total        Ended
                Energy       Power
                                                                   Sept 30,
                                                                   2012
Revenues
 Energy     $           $         $        $ 1,652,565  $ 
revenues        1,484,417    168,148     -                      1,337,831
 Turnkey &  109,749      -          -             109,749      62,424
other revenues
                1,594,166    168,148    -             1,762,314    1,400,255
Cost of sales
 Fuel,
maintenance and 862,566      172,209    -             1,034,775    733,727
installation

Depreciation    309,915      19,034     -             328,949      301,813
expense
                1,172,481    191,243    -             1,363,724    1,035,540
Gross profit    421,685      (23,095)   -             398,590      364,715
(loss)
Operating
expenses
 General
and             516,536      189,912    -             706,448      603,729
administrative
 Selling    154,318      104,138    -             258,456      390,863
            192,778      33,787     -             226,565      270,405
Engineering
                863,632      327,837    -             1,191,469    1,264,997
Loss from       (441,947)    (350,932)  -             (792,879)    (900,282)
operations
Other income
(expense), net
 Interest
and other       19,151       2,480      -             21,631       17,547
income
 Interest   (306,778)    (40,000)   -             (346,778)    (293,556)
expense
 Change in
fair value of   (46,934)     -          -             (46,934)     (82,293)
warrant
liability
                (334,561)    (37,520)   -             (372,081)    (358,302)
Loss before
provision for   (776,508)    (388,452)  -             (1,164,960)  (1,258,584)
state income
taxes
Benefit
(provision) for (3,690)      -          -             (3,690)      (9,440)
state income
taxes
Consolidated    (780,198)    (388,452)  -             (1,168,650)  (1,268,024)
net loss
(Income) loss
attributable to
the             (57,451)     -          97,786        40,335       8,534
noncontrolling
interest
Net loss
attributable to $           $         $           $            $
American DG     (837,649)   (388,452)  97,786       (1,128,315)  (1,259,490)
Energy Inc.
Net loss per    $                                 $        $    
share - basic   (0.02)                               (0.02)      (0.03)
and diluted
Weighted
average shares
outstanding -   49,015,891                            49,015,891   47,653,786
basic and
diluted
Non-GAAP
financial
disclosure
 Loss from  $           $         $        $           $ 
operations      (441,947)   350,932)    -         (792,879)   (900,282)

Depreciation &  331,387      20,646     -             352,033      317,986
other non-cash
expense
 Stock
based           84,397       71,434     -             155,831      216,551
compensation
 Adjusted   (26,163)     (258,852)  -             (285,015)    (365,745)
EBITDA
 Grants
from rebates    -            -          -             -            -
and incentives
 Total      $          $         $        $           $ 
EBITDA cash     (26,163)    (258,852)    -         (285,015)   (365,745)
outflows



CONSOLIDATED BALANCE SHEETS

As of September 30, 2013 and December 31, 2012

(unaudited)
                                   Sept 30, 2013          Dec 31, 2012
ASSETS
Current assets:
Cash and cash equivalents          $    10,636,868    $    13,362,919
Accounts receivable, net           1,114,840              761,678
Unbilled revenue                   16,470                 19,492
Due from related party             433,238                18,372
Inventory                          2,669,190              2,920,444
Prepaid and other current assets   318,239                308,164
Total current assets               15,188,845             17,391,069
Property, plant and equipment, net 21,240,177             17,253,648
Accounts receivable, long-term     58,100                 46,800
Other assets, long-term            67,773                 47,216
TOTAL ASSETS                       $    36,554,895    $    34,738,733
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable                   $       750,984  $      765,618
Accrued expenses and other current 936,888                532,420
liabilities
Due to related party               57,966                 41,812
Capital lease obligations          870                    3,365
Total current liabilities          1,746,708              1,343,215
Long-term liabilities:
Convertible debentures             21,664,222             19,400,000
Warrant liability                  117,382                389,454
Capital lease obligations,         -                      -
long-term
Other long-term liabilities        19,238                 29,444
Total liabilities                  23,547,550             21,162,113
Stockholders' equity:
American DG Energy Inc.
stockholders' equity:
Common stock, $0.001 par value;
100,000,000 shares authorized;

49,440,529 and 48,490,733 issued
and outstanding at September 30,   49,441                 48,491
2013

and December 31, 2012,
respectively
Additional paid-in capital         39,339,468             37,001,439
Accumulated deficit                (27,802,703)           (24,456,845)
Total American DG Energy Inc.      11,586,206             12,593,085
stockholders' equity
Noncontrolling interest            1,421,139              983,535
Total stockholders' equity         13,007,345             13,576,620
TOTAL LIABILITIES AND              $    36,554,895    $    34,738,733
STOCKHOLDERS' EQUITY



CONSOLIDATED STATEMENT OF CASH FLOWS

For the Nine Months Ended September 30, 2013 and September 30, 2012

(unaudited)
                                        Nine Months Ended
                                        Sept 30, 2013       Sept 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                $   (3,345,858)  $   (5,078,148)
          Income (loss) attributable to (116,148)           (79,285)
          noncontrolling interest
Adjustments to reconcile net loss to
net cash used in operating activities:
          Depreciation and amortization 1,046,730           1,175,210
          Provision for losses on       64,134              89,649
          accounts receivable
          Amortization of deferred      20,671              3,733
          financing costs
          Increase (decrease) in fair   (272,072)           343,629
          value of warrant liability
          Noncash interest expense      528,489             712,921
          Stock-based compensation      439,191             596,408
Changes in operating assets and
liabilities
      (Increase) decrease in:
          Restricted cash               -                   -
          Accounts receivable and       (425,574)           (100,954)
          unbilled revenue
          Due from related party        (414,866)           (143,438)
          Inventory                     251,254             (621,041)
          Prepaid and other current     (25,859)            (61,066)
          assets
      Increase (decrease) in:
          Accounts payable              (14,634)            870,188
          Accrued expenses and other    404,479             250,196
          current liabilities
          Due to related party          16,154              215,617
          Other long-term liabilities   (10,206)            (10,206)
Net cash used in operating activities   (1,854,115)         (1,836,587)
CASH FLOWS FROM INVESTING ACTIVITIES:
          Purchases of property and     (4,473,759)         (2,936,567)
          equipment
Net cash used in investing activities   (4,473,759)         (2,936,567)
CASH FLOWS FROM FINANCING ACTIVITIES:
          Proceeds from issuance of     2,900,000           -
          convertible debentures
          Proceeds from issuance of     -                   7,500
          common stock warrants
          Proceeds from sale of common  965,001             3,531,534
          stock, net of costs
          Proceeds from sale of
          subsidiary common stock, net  (4,558)             -
          of costs
          Proceeds from exercise of     -                   149,882
          stock options
          Purchases of common stock,    -                   (750,000)
          net of costs
          Convertible debenture         (12,222)            -
          transaction costs
          Principal payments on capital (2,495)             (2,524)
          lease obligations
          Cancellation of restricted                        (40)
          stock
          Distributions to              (243,903)           (213,281)
          noncontrolling interest
Net cash provided by financing          3,601,823           2,723,071
activities
Net decrease in cash and cash           (2,726,051)         (2,050,083)
equivalents
Cash and cash equivalents, beginning of 13,362,919          17,801,025
the period
Cash and cash equivalents, end of the   $   10,636,868   $   15,750,942
period





SOURCE American DG Energy Inc.

Website: http://www.americandg.com
Contact: Investor Contact: Jesse T. Herrick, American DG Energy Inc.,
781.522.6020, jesse.herrick@americandg.com; Media Contact: Barry J. Sanders,
American DG Energy Inc., 781.522.6010, barry.sanders@americandg.com
 
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