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, firstname.lastname@example.org; Media Contact: Barry J. Sanders, American DG Energy Inc., 781.522.6010, email@example.com
American DG Energy Reports Third Quarter 2013 Financial Performance
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