American DG Energy Reports 2013 Financial Performance Revenue increases 32% compared to 2012 PR Newswire WALTHAM, Mass., March 31, 2014 WALTHAM, Mass., March31, 2014 /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 athletic facilities, reported unaudited financial results for fiscal year 2013. Total revenues were $7,461,880 in 2013, compared to $5,645,194 in 2012, an increase of 32%. GAAP diluted loss per share (EPS) was $(0.10) in 2013, compared to $(0.14) in 2012. Major Highlights: Financial oEnergy revenue increased by 33% to $7,164,226 in 2013, compared to the same period in 2012. oEnergy gross profit margin in North America without depreciation was over 36% in 2013. oUtility rates for thermal energy (such as natural gas) decreased approximately 10% and electricity rates decreased by 11% in the fourth quarter of 2013 compared to the same period in 2012, which lowered our energy revenue for the period. oThe company received $285,718 of incentives in 2013. oWe finished 2013 with approximately $9.8 million in cash. oThe total revenue value of our On-Site Utility energy agreements since inception is approximately $300 million using various market assumptions and estimates made by the Company. oDuring June 2013, EuroSite Power issued 4% Senior Unsecured Convertible Notes Due 2015 and raised $4.0 million; $2.9 million from accredited investors and $1.1 million from conversion of an American DG Energy note. oDuring August and September of 2013, the company raised $965,001 in equity capital through private placements 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 oTotal energy production increased by 34% to 99.4 million kWh in 2013 compared to the same period in 2012. oThe associated revenue in 2013 was attributable to the following core markets: Housing 24 % Fitness 21 % Healthcare 21 % Hospitality 19 % Education 20 % Other 5 % TOTAL 100 % oThe revenue in 2013 was distributed by energy type as is outlined in the following table: Thermal 53 % Electricity 36 % Cooling 11 % TOTAL 100 % oWe currently operate 123 energy systems. oOur current backlog consists of 29 energy systems. oWe reached agreements with the following properties: o300 kW Combined Heat and Power (CHP) system with two building in New Jersey. o30-ton chiller with DoubleTree Hotel in Tarrytown, NY. o200 kW system with a facility in New Jersey. oTwo feasibility study contracts with a major university and a large hospitality group. oEnergy plant conversion with DoubleTree Hotel in Times Square, NY for CHP, boilers and chillers. o400-ton chiller with a facility in New Jersey. o200 kW CHP system with Crow Wood Leisure in Burnley, United Kingdom (UK). o100 kW CHP system with Roko Health Club in York, United Kingdom. o100 kW CHP system with Bury St. Edmunds Leisure Center in Suffolk, UK. o100 kW CHP system with Leisure Connection for the Dunstable Leisure Centre in Dunstable, UK. o100 kW CHP system with Clifton Hospital in Lancashire, UK, part of the National Health Systems. oWe began operations at the following properties: o300 kW CHP system at an apartment complex in Bronx, NY. o30-ton chiller at by Hilton Hotel in Tarrytown, NY. o450 kW CHP in New York City, NY. o75 kW CHP in Connecticut. o150 kW CHP at Metro YMCAs of the Oranges in Wayne, NJ. o450-ton chiller at Doral Arrowwood Hotel in Rye Brook, NY. o150 kW CHP at Cumberland County Jail in Portland, ME. o100 kW CHP at Prospect Park Residencies in Brooklyn, NY. o75 kW CHP at YMCA in Greenwich, CT. o170-ton chiller at a New Jersey property. o80-ton chiller at a New Jersey property. o30-ton chiller at a New Jersey property. o100 kW CHP at Roko Health Club in Chiswick, UK. o100 kW CHP at Roko Health Club in York, UK. o100 kW CHP at DoubleTree by Hilton in Dublane Hydro, Scotland. o150 kW system in New Jersey. oThe company welcomed John W. Rowe to the Board of Directors, adding years of management and operational expertise in the energy space, having notable served as Chairman and Chief Executive Officer at Exelon Corporation. oThe company welcomed Joan Giacinti to the Board of Directors, adding extensive management experience as he is the founder and Chief Executive Officer of Sofratessa Group in Santo Domingo, Dominican Republic. American DG Energy will hold its earnings conference call today, March31, 2014 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 our 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 Tuesday, April 08, 2014. 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 10042784. The earnings conference call will be webcast live. To register for and listen to the webcast, go to http://investors.americandg.com/. 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. 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 local utilities – without any capital or start-up costs to the energy user – through its On-Site Utility energy solutions. American DG Energy is headquartered in Waltham, Massachusetts. Learn more about how American DG Energy (NYSE MKT: ADGE) 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. UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS For the years ended December 31, 2013 2013 2012 Revenues Energy revenues $ 7,164,226 $ 5,388,395 Turnkey & other revenues 297,654 256,799 7,461,880 5,645,194 Cost of sales Fuel, maintenance and installation 4,862,905 3,487,223 Depreciation expense 1,382,693 1,698,014 6,245,598 5,185,237 Gross profit 1,216,282 459,957 Operating expenses General and administrative 2,940,833 2,770,535 Selling 1,383,077 1,919,075 Engineering 1,018,914 1,165,286 5,342,824 5,854,896 Loss from operations (4,126,542) (5,394,939) Other income (expense), net Interest and other income 49,291 62,322 Interest expense (1,292,766) (1,270,694) Change in fair value of warrant liability 257,189 (139,893) (986,286) (1,348,265) Loss before provision for state income taxes (5,112,828) (6,743,204) Benefit (provision) for state income taxes (13,450) (24,550) Consolidated net loss (5,126,278) (6,767,754) (Income) loss attributable to the 239,606 241,967 noncontrolling interest Net loss attributable to American DG Energy $ (4,886,672) $ (6,525,787) Inc. Net loss per share - basic and diluted $ (0.10) $ (0.14) Weighted average shares outstanding - basic and 49,932,838 47,108,980 diluted Non-GAAP financial disclosure Loss from operations $ (4,126,542) $ (5,394,939) Depreciation expense 1,471,914 1,754,279 Stock based compensation 596,349 810,285 Adjusted EBITDA (2,058,279) (2,830,375) Grants from rebates and incentives (reduction 285,718 583,800 in basis of property) Total cash outflows $ (1,772,561) $ (2,246,575) UNAUDITED CONSOLIDATED BALANCE SHEETS December31, 2013 December31, 2012 ASSETS Current assets: Cash and cash equivalents $ 9,804,291 $ 13,362,919 Accounts receivable, net 988,420 761,678 Unbilled revenue 12,765 19,492 Due from related party 304,288 18,372 Inventory 2,246,335 2,920,444 Prepaid and other current assets 196,939 308,164 Total current assets 13,553,038 17,391,069 Property, plant and equipment, net 21,931,289 17,253,648 Accounts receivable, long-term 45,200 46,800 Other assets, long-term 54,768 47,216 TOTAL ASSETS $ 35,584,295 $ 34,738,733 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 871,079 $ 765,618 Accrued expenses and other current 622,568 532,420 liabilities Due to related party 178,216 41,812 Capital lease obligations — 3,365 Total current liabilities 1,671,863 1,343,215 Long-term liabilities: Convertible debentures 17,172,807 17,000,000 Convertible debt due to related parties 4,525,573 2,400,000 Warrant liability 132,265 389,454 Other long-term liabilities 15,876 29,444 Total liabilities 23,518,384 21,162,113 Stockholders' equity: American DG Energy Inc. stockholders' equity: Common stock, $0.001 par value; 100,000,000 shares authorized; 48,490,733 and 46,001,404 49,818 48,491 issued and outstanding at December 31, 2012 and 2011, respectively Additional paid-in capital 40,110,305 37,001,439 Accumulated deficit (29,343,517) (24,456,845) Total American DG Energy Inc. 10,816,606 12,593,085 stockholders' equity Noncontrolling interest 1,249,305 983,535 Total stockholders' equity 12,065,911 13,576,620 TOTAL LIABILITIES AND STOCKHOLDERS' $ 35,584,295 $ 34,738,733 EQUITY UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS For the years ended December 31, 2013 2013 2012 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (4,886,672) $ (6,525,787) Income (loss) attributable to noncontrolling (239,606) (241,967) interest Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 1,471,914 1,754,279 Provision for losses on accounts receivable 235,638 123,880 Amortization of deferred financing costs 10,224 20,448 Increase (decrease) in fair value of warrant (257,189) 139,893 liability Noncash interest expense 1,170,051 1,237,470 Stock-based compensation 596,349 810,285 Changes in operating assets and liabilities: (Increase) decrease in: Restricted cash — — Accounts receivable and unbilled revenue (454,053) 29,269 Due from related party (285,916) 2,768 Inventory 674,109 (2,286,324) Prepaid and other current assets 93,449 (48) Increase (decrease) in: Accounts payable 105,461 245,010 Accrued expenses and other current liabilities 90,148 (56,612) Due to related party 136,404 (272,035) Other long-term liabilities (13,568) (13,608) Net cash used in operating activities (1,553,257) (5,033,079) CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (5,590,055) (4,211,402) Net cash used in investing activities (5,590,055) (4,211,402) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of convertible 2,947,380 — debentures Proceeds from issuance of warrants — 7,500 Proceeds from sale of common stock, net of 952,333 3,535,038 costs Proceeds from sale of subsidiary common stock, — 2,139,293 net of costs Proceeds from exercise of stock options — 200,923 Purchases of common stock, net of costs — (750,000) Convertible debenture transaction costs — — Principal payments on capital lease (3,365) (3,365) obligations Cancellation of restricted stock — (40) Distributions to noncontrolling interest (311,664) (322,974) Net cash provided by financing activities 3,584,684 4,806,375 Net (decrease) increase in cash and cash (3,558,628) (4,438,106) equivalents Cash and cash equivalents, beginning of the 13,362,919 17,801,025 period Cash and cash equivalents, end of the period $ 9,804,291 $ 13,362,919 SOURCE American DG Energy Inc. Website: http://www.americandg.com Contact: Investor Contact: John N. Hatsopoulos, American DG Energy Inc., 781.622.1120, email@example.com, or Media Contact: Barry J. Sanders, American DG Energy Inc., 781.522.6010, firstname.lastname@example.org
American DG Energy Reports 2013 Financial Performance
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