American DG Energy Reports 2014 Financial Performance
Revenue up 15% and Gross Energy Margin before Depreciation at 31%
WALTHAM, Mass., March 31, 2015 /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 $8,567,553 for 2014 compared to $7,461,880 for 2013, an increase of 15%. Revenues for the fourth quarter of 2014 were $2,081,838 compared to $1,870,471 for 2013, an increase of 11%. GAAP diluted loss per share (EPS) was $0.12 for 2014, compared with a GAAP diluted loss per share of $0.10 for 2013. GAAP diluted loss per share (EPS) was $0.03 in the fourth quarter of 2014, compared with a GAAP diluted loss per share of $0.03 for the same period in 2013.
Major Highlights:
Financial
- Total revenue increased by $1,105,673 to $8,567,553 for 2014, compared to $7,461,880 for 2013.
- Total gross profit margin without depreciation and site impairments was 31% for 2014 compared to 33% for 2013.
- Total revenue for the fourth quarter of 2014 was $2,081,838 compared to $1,870,471 for the same period in 2013, an increase of $211,367 or 11%.
- We closed 2014 with $11.8 million in cash and $13.3 million in working capital, compared to $9.8 million of cash and $11.9 million in working capital at year-end 2013.
- During the fourth quarter of 2014, EuroSite Power an American DG Energy subsidiary, filed a $648,917 Enhanced Capital Allowance (ECA) with the UK government. ECA is a cash energy tax incentive for energy-saving plant and machinery, which includes combined heat and power systems.
- In October 2014, we closed an arrangement saving $8.2 million of future debt and interest cash outflows for American DG Energy and EuroSite Power.
- During October and November 2014 our subsidiary, EuroSite Power, raised an additional $1.5 million through the placement of common stock.
- The total revenue value of our On-Site Utility energy agreements since inception is approximately $319 million using various market assumptions and estimates made by the Company.
- We continue to buy our own common shares to the extent allowed by the average trading volume.
Operations
- Our efforts to enhance productivity at sites is beginning to show results. We have a significant program underway to enhance the productivity of sites throughout the United States. This program is under the leadership of a new Chief Engineer and new Co-CEO. Of the large cross-section of sites under productivity enhancement, a 20% increase in energy output was seen in November and December and double digit percent increases have continued through March.
- As a result of these efforts, in January 2015 our American DG Energy maintained US sites reached 2,000,000 kWh of electrical generation for the first time in in our history.
- We currently operate 123 energy systems and our current backlog consists of 23 energy systems.
- The associated revenue was attributable to the following core markets:
Fitness |
23% |
||||||||||
Housing |
21% |
||||||||||
Hospitality |
20% |
||||||||||
Healthcare |
16% |
||||||||||
Education |
11% |
||||||||||
Other |
9% |
||||||||||
TOTAL |
100% |
- The revenue was distributed by energy type as is outlined in the following table:
Electricity |
59% |
|||||||||||
Thermal |
33% |
|||||||||||
Cooling |
8% |
|||||||||||
TOTAL |
100% |
- We reached agreements with Green Hill Retirement Community in West Orange, New Jersey for a 75 kW CHP system.
- We reached a partnership agreement with Community Works to promote energy systems to over 450 senior living facilities.
- We reached agreement with the Topland Group for 7 systems (879kW) to be installed at various Menzies Hotels throughout the UK.
- We reached agreement with FJB Hotels for 2 systems for 2 luxury hotels in Poole.
- During 2014 we brought into operation systems at:
- 75kW CHP system at a facility in Maryland
- 80-ton chiller at a facility in New Jersey
- 400 ton chiller at a facility in New Jersey
- 170-ton chiller at a facility in New Jersey
- Dunstable Leisure Centre (100kW)
- Bury St Edmunds Leisure Centre (100kW)
- Clifton Hospital (100kW)
- Crow Wood Leisure Club (200kw)
- Menzies Aberdeen (81kW)
- Menzies Derby (164kW)
American DG Energy will hold its earnings conference call today, March 31, 2015 at 10:00 a.m. Eastern Time. To listen, call (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. 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 Friday, April 17, 2015. To listen to the playback, call (877) 344‑7529 within the U.S., (855) 669-9658 from Canada, or (412) 317-0088 outside the U.S. and use Conference Number 10062024.
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.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 that could affect our business including weather, electric price changes, gas prices, carbon credit markets and delays by government agencies to process tax and other incentives. Important other 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 BALANCE SHEETS |
|||
(unaudited) |
|||
Dec 31, 2014 |
Dec 31, 2013 |
||
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents |
$ 11,825,915 |
$ 9,804,291 |
|
Accounts receivable, net |
1,140,811 |
988,420 |
|
Unbilled revenue |
12,533 |
12,765 |
|
Due from related party |
39,682 |
304,288 |
|
Inventory |
1,153,927 |
2,246,335 |
|
Prepaid and other current assets |
852,069 |
196,939 |
|
Total current assets |
15,024,937 |
13,553,038 |
|
Property, plant and equipment, net |
24,885,155 |
21,931,289 |
|
Accounts receivable, long-term |
3,600 |
45,200 |
|
Other assets, long-term |
92,148 |
54,768 |
|
TOTAL ASSETS |
$ 40,005,840 |
$ 35,584,295 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||
Current liabilities: |
|||
Accounts payable |
$ 605,530 |
$ 871,079 |
|
Accrued expenses and other current liabilities |
485,570 |
622,568 |
|
Due to related party |
630,805 |
178,216 |
|
Total current liabilities |
1,721,905 |
1,671,863 |
|
Long-term liabilities: |
|||
Convertible debentures |
1,645,444 |
1,800,000 |
|
Convertible debt due to related parties |
15,864,215 |
19,898,380 |
|
Warrant liability |
6,780 |
132,265 |
|
Note payable related party |
3,000,000 |
- |
|
Other long-term liabilities |
2,227 |
15,876 |
|
Total liabilities |
22,240,571 |
23,518,384 |
|
Stockholders' equity: |
|||
American DG Energy Inc. stockholders' equity: |
|||
Common Stock |
52,140 |
49,818 |
|
Additional paid-in capital |
49,854,998 |
40,110,305 |
|
Accumulated deficit |
(35,232,411) |
(29,343,517) |
|
Total American DG Energy Inc. stockholders' equity |
14,674,727 |
10,816,606 |
|
Non-controlling interest |
3,090,542 |
1,249,305 |
|
Total stockholders' equity |
17,765,269 |
12,065,911 |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ 40,005,840 |
$ 35,584,295 |
|
Reclassifications: certain prior period balances have been reclassified to conform to current period presentation. |
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||
(unaudited) |
|||
For Year Ended |
|||
Dec 31, 2014 |
Dec 31, 2013 |
||
Revenues |
|||
Energy revenues |
$ 7,808,933 |
$ 7,164,226 |
|
Turnkey & other revenues |
758,620 |
297,654 |
|
8,567,553 |
7,461,880 |
||
Cost of sales |
|||
Fuel, maintenance and installation |
5,914,525 |
4,862,905 |
|
Site impairments |
723,438 |
- |
|
Depreciation expense |
1,843,817 |
1,382,693 |
|
8,481,780 |
6,245,598 |
||
Gross profit |
85,773 |
1,216,282 |
|
Operating expenses |
|||
General and administrative |
3,238,141 |
2,940,833 |
|
Selling |
1,078,351 |
1,383,077 |
|
Engineering |
897,445 |
1,018,914 |
|
5,213,937 |
5,342,824 |
||
Loss from operations |
(5,128,164) |
(4,126,542) |
|
Other income (expense) |
|||
Interest and other income |
92,928 |
49,291 |
|
Interest expense |
(1,402,493) |
(1,292,766) |
|
Debt conversion inducement expense |
(324,977) |
- |
|
Loss on extinguishment of debt |
(533,177) |
- |
|
Change in fair value of warrant liability |
125,485 |
257,189 |
|
(2,042,234) |
(986,286) |
||
Loss before benefit (provision) for income taxes |
(7,170,398) |
(5,112,828) |
|
Benefit/(provision) for income taxes |
645,040 |
(13,450) |
|
Consolidated net loss |
(6,525,358) |
(5,126,278) |
|
Loss attributable to the non-controlling interest |
540,328 |
239,606 |
|
Net loss attributable to American DG Energy Inc. |
$ (5,985,030) |
$ (4,886,672) |
|
Net loss per share - basic and diluted |
$ (0.12) |
$ (0.10) |
|
Weighted average shares outstanding - basic and diluted |
50,999,408 |
48,932,838 |
|
Non-GAAP financial disclosure |
|||
Loss from operations |
$ (5,128,164) |
$ (4,126,542) |
|
Depreciation & other non-cash expense |
1,888,102 |
1,471,914 |
|
Site impairments |
723,438 |
- |
|
Stock based compensation |
475,899 |
596,349 |
|
Adjusted EBITDA |
(2,040,725) |
(2,058,279) |
|
Grants, tax rebates, UK ECA and incentives |
27,500 |
285,718 |
|
Total EBITDA cash outflows * |
$ (2,013,225) |
$ (1,772,561) |
* EBITDA cash outflows, for the twelve months ending December 31, 2014, were $1,000,662 for American DG Energy in North America and $1,012,563 for EuroSite Power. Not included is $628,917 of cash due from the UK government which we expect to collect in early Q2, 2015. |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||
(unaudited) |
||||||||||
Twelve Months Ended |
||||||||||
Dec 31, 2014 |
Dec 31, 2013 |
|||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||||
Net loss |
$ (5,888,894) |
$ (4,886,672) |
||||||||
Loss attributable to non-controlling interest |
(636,464) |
(239,606) |
||||||||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||||
Depreciation and amortization |
1,888,102 |
1,471,914 |
||||||||
Loss on extinguishment of debt |
533,177 |
- |
||||||||
Non-cash site impairments |
723,438 |
|||||||||
Provision for losses on accounts receivable |
49,322 |
235,638 |
||||||||
Amortization of deferred financing costs |
48,176 |
10,224 |
||||||||
Decrease in fair value of warrant liability |
(125,485) |
(257,189) |
||||||||
Non-cash interest expense |
1,210,086 |
1,170,051 |
||||||||
Stock-based compensation |
475,899 |
596,349 |
||||||||
Non-cash debt conversion inducement expense |
324,977 |
- |
||||||||
Changes in operating assets and liabilities |
||||||||||
(Increase) decrease in: |
||||||||||
Accounts receivable and unbilled revenue |
(159,881) |
(454,053) |
||||||||
Due from related party |
264,606 |
(285,916) |
||||||||
Inventory |
1,092,408 |
674,109 |
||||||||
Prepaid and other current assets |
(798,263) |
93,449 |
||||||||
Increase (decrease) in: |
||||||||||
Accounts payable |
(265,549) |
105,461 |
||||||||
Accrued expenses and other current liabilities |
20,610 |
90,148 |
||||||||
Due to related party |
452,589 |
136,404 |
||||||||
Other long-term liabilities |
8,486 |
(13,568) |
||||||||
Net cash used in operating activities |
(782,660) |
(1,553,257) |
||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||||
Purchases of property and equipment |
(5,649,433) |
(5,590,055) |
||||||||
Net cash used in investing activities |
(5,649,433) |
(5,590,055) |
||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||||
Proceeds from issuance of convertible debentures |
1,450,000 |
2,947,380 |
||||||||
Proceeds from sale of common stock, net of costs |
3,269,275 |
952,333 |
||||||||
Proceeds from sale of subsidiary common stock, net of costs |
1,486,329 |
- |
||||||||
Share repurchases |
(450,696) |
- |
||||||||
Share repurchases subsidiary |
(42,902) |
- |
||||||||
Proceeds from note payable related party to subsidiary |
3,000,000 |
- |
||||||||
Principal payments on capital lease obligations |
- |
(3,365) |
||||||||
Distributions to non-controlling interest |
(258,289) |
(311,664) |
||||||||
Net cash provided by financing activities |
8,453,717 |
3,584,684 |
||||||||
Net Increase (decrease) in cash and cash equivalents |
2,021,624 |
(3,558,628) |
||||||||
Cash and cash equivalents, beginning of the period |
9,804,291 |
13,362,919 |
||||||||
Cash and cash equivalents, end of the period |
$ 11,825,915 |
$ 9,804,291 |
||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||
(unaudited) |
|||
Three Months Ended |
|||
Dec 31, 2014 |
Dec 31, 2013 |
||
Revenues |
|||
Energy revenues |
$ 1,962,412 |
$ 1,764,727 |
|
Turnkey & other revenues |
119,426 |
105,744 |
|
2,081,838 |
1,870,471 |
||
Cost of sales |
|||
Fuel, maintenance and installation |
1,520,287 |
1,307,545 |
|
Site impairments |
723,438 |
- |
|
Depreciation expense |
485,644 |
396,754 |
|
2,729,369 |
1,704,299 |
||
Gross profit |
(647,531) |
166,172 |
|
Operating expenses |
|||
General and administrative |
907,439 |
751,542 |
|
Selling |
277,893 |
434,435 |
|
Engineering |
267,919 |
236,193 |
|
1,453,251 |
1,422,170 |
||
Loss from operations |
(2,100,782) |
(1,255,998) |
|
Other income (expense) |
|||
Interest and other income |
34,988 |
(38,628) |
|
Interest expense |
(318,278) |
(386,642) |
|
Debt conversion inducement expense |
(324,977) |
- |
|
Change in fair value of warrant liability |
23,600 |
(14,883) |
|
(584,667) |
(440,153) |
||
Loss before benefit for income taxes |
(2,685,449) |
(1,696,151) |
|
Benefit for income taxes |
677,734 |
31,879 |
|
Consolidated net loss |
(2,007,715) |
(1,664,272) |
|
Loss attributable to the non-controlling interest |
229,981 |
123,458 |
|
Net loss attributable to American DG Energy Inc. |
$ (1,777,734) |
$ (1,540,814) |
|
$ (0.03) |
$ (0.03) |
||
Weighted average shares outstanding - basic and diluted |
52,527,925 |
49,592,306 |
|
Non-GAAP financial disclosure |
|||
Loss from operations |
$ (2,100,782) |
$ (1,255,998) |
|
Depreciation & other non-cash expense |
477,626 |
417,817 |
|
Site impairments |
723,438 |
- |
|
Stock based compensation |
137,109 |
157,158 |
|
Adjusted EBITDA |
(762,609) |
(681,023) |
|
Grants, tax rebates and incentives |
27,500 |
133,775 |
|
Total EBITDA cash outflows * |
$ (735,109) |
$ (547,248) |
|
* EBITDA cash outflows, for the fourth quarter of 2014, were $407,954 for American DG Energy in North America and $327,155 for EuroSite Power. Not included is $628,917 of cash due from the UK government which we expect to collect in early Q2, 2015. |
SOURCE American DG Energy Inc.
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