American DG Energy Reports 2013 Financial Performance

            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, john.hatsopoulos@americandg.com, or Media Contact: Barry J.
Sanders, American DG Energy Inc., 781.522.6010, barry.sanders@americandg.com
 
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