American DG Energy Reports First Quarter 2015 Financial Performance

Total Gross Margin without Depreciation is 31% for the Period

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May 13, 2015, 09:00 ET

WALTHAM, Mass., May 13, 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 $2,507,740 in the first quarter of 2015, compared to $2,527,800 for the same period in 2014. GAAP diluted loss per share (EPS) was $0.02 in the first quarter of 2015, compared with a GAAP diluted loss per share of $0.03 for the same period in 2014.

Major Highlights:

Financial

As a result of our site productivity efforts, total non-GAAP gross profit margin without depreciation improved sequentially to 31.1% in the first quarter of 2015, from 27% in the fourth quarter of 2014.
Consolidated EBITDA cash outflows improved sequentially and were $430,535 in the first quarter of 2015, versus $735,109 in the fourth quarter of 2014. EBITDA cash outflows were $131,568 for American DG Energy in North America and $298,967 for EuroSite Power in the first quarter of 2014.
As a result of our productivity efforts, sites at American DG Energy in North America, produced a margin before depreciation of 35% in the first quarter of 2015 versus 31% in the fourth quarter of 2014 and 32% in the year ago period.
The total revenue value of our On-Site Utility™ energy agreements since inception is approximately $321.5 million using various market assumptions and estimates made by the Company.

Operations

We currently operate 126 energy systems and our current backlog consists of 21 energy systems.
First quarter revenue was attributable to the following core markets:

Fitness	24%
Hospitality	22%
Housing	20%
Education	19%
Healthcare	11%
Other	4%
TOTAL	100%

First quarter revenue by energy type is outlined in the following table:

Electricity		60%
Thermal		40%
TOTAL		100%

During Q1 2015 we reached agreements for:
- A 150 kW CHP system with an apartment complex in the Bronx, New York
- A 125 kW CHP system with Kingfisher Leisure Centre, Sudbury, UK
- A 125 kW CHP system with Basingstoke Sports Centre, UK.
During Q1 2015 we brought into operation a total of 4 additional systems:
- 100 kW CHP systems for FJB Hotels installed at both their Haven Hotel and Sandbanks Hotel properties in Poole, UK
- A second 100kW CHP system at the Wentworth Golf Club, home of the BMW PGA Championship
- The third CHP system installed as part of our contract with Topland Group for seven systems – 120 kW unit at Menzies Cambridge
The total number of systems now under contract is 147, totaling 10,415kW and 4,855 tons of cooling.
In total we currently operate 126 systems totaling 8,511kW of installed capacity with a total contract value of $264.8 million.

American DG Energy will hold its earnings conference call today, May 13, 2015 at 2:30 p.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, June 12, 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 10065454.

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. 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 BALANCE SHEETS
(unaudited)

	March 31, 2015	December 31, 2014
ASSETS
Current assets:
Cash and cash equivalents	$ 8,674,944	$ 11,825,915
Accounts receivable, net	1,176,207	1,140,811
Unbilled revenue	26,257	12,533
Due from related party	48,966	39,682
Inventory	1,054,877	1,153,927
Prepaid and other current assets	1,156,074	852,069
Total current assets	12,137,325	15,024,937
Property, plant and equipment, net	25,460,391	24,885,155
Accounts receivable, long-term	-	3,600
Other assets, long-term	82,329	92,148
TOTAL ASSETS	$ 37,680,045	$ 40,005,840

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$ 932,528	$ 605,530
Accrued expenses and other current liabilities	313,559	485,570
Due to related party	308,386	630,805
Total current liabilities	1,554,473	1,721,905
Long-term liabilities:
Convertible debentures	1,630,399	1,645,444
Convertible debt due to related parties	16,146,981	15,864,215
Warrant liability	382	6,780
Note payable related party	2,000,000	3,000,000
Other long-term liabilities	-	2,227
Total liabilities	21,332,235	22,240,571

Equity:
American DG Energy Inc. stockholders' equity:
Common Stock	50,667	52,140
Additional paid-in capital	49,889,814	49,854,998
Accumulated deficit	(36,444,845)	(35,232,411)
Total American DG Energy Inc. stockholders' equity	13,495,636	14,674,727
Non-controlling interest	2,852,174	3,090,542
Total Equity	16,347,810	17,765,269
TOTAL LIABILITIES AND EQUITY	$ 37,680,045	$ 40,005,840

Reclassifications: certain prior period balances have been reclassified to conform to current period presentation.

CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
	Three Months Ended
	March 31, 2015	March 31, 2014
Revenues
Energy revenues	$ 2,390,347	$ 2,396,281
Turnkey & other revenues	117,393	131,519
	2,507,740	2,527,800
Cost of sales
Fuel, maintenance and installation	1,727,653	1,707,646
Depreciation expense	508,457	481,564
	2,236,110	2,189,210
Gross profit	271,630	338,590
Operating expenses
General and administrative	861,062	773,960
Selling	340,693	261,116
Engineering	170,370	263,771
	1,372,125	1,298,847
Loss from operations	(1,100,495)	(960,257)
Other income (expense)
Interest and other income	18,266	14,984
Interest expense	(312,456)	(354,503)
Loss on extinguishment of debt	-	(533,177)
Change in fair value of warrant liability	6,398	(66,113)
	(287,792)	(938,809)
Loss before provision for income taxes	(1,388,287)	(1,899,066)
Provision for income taxes	(7,355)	(6,940)
Consolidated net loss	(1,395,642)	(1,906,006)
Loss attributable to the non-controlling interest	183,208	240,650
Net loss attributable to American DG Energy Inc.	$ (1,212,434)	$ (1,665,356)
Net loss per share – basic and diluted	$ (0.02)	$ (0.03)
Weighted average shares outstanding - basic and diluted	50,735,381	49,817,920

Non-GAAP financial disclosure
Loss from operations	$ (1,100,495)	$ (960,257)
Depreciation & other non-cash expense	519,501	511,981
Stock based compensation	150,459	138,628
Adjusted EBITDA *	$ (430,535)	$ (309,648)

* EBITDA cash outflows, for the first quarter of 2015, were $131,568 for American DG Energy in North America and $298,967 for EuroSite Power.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
			Three Months Ended
			March 31, 2015	March 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss			$ (1,212,434)	$ (1,665,356)
		Loss attributable to non-controlling interest	(183,208)	(240,650)
Adjustments to reconcile net loss to net cash used in operating activities:
		Depreciation and amortization	519,501	511,981
		Loss on extinguishment of debt	-	533,177
		Amortization of deferred financing costs	1,726	4,830
		Amortization of convertible debt premium	(24,072)	20,948
		Increase (decrease) in fair value of warrant liability	(6,398)	66,113
		Non-cash interest expense	299,910	-
		Stock-based compensation	150,459	138,628
Changes in operating assets and liabilities
	(Increase) decrease in:
		Accounts receivable and unbilled revenue	(45,520)	(428,760)
		Due from related party	(9,287)	173,677
		Inventory	99,050	308,356
		Prepaid and other current assets	(295,912)	(193,304)
	Increase (decrease) in:
		Accounts payable	326,998	355,018
		Accrued expenses and other current liabilities	(180,128)	283,931
		Due to related party	(322,419)	253,584
		Other long-term liabilities	(2,227)	(3,402)
Net cash (used in) provided by operating activities			(883,961)	118,771

CASH FLOWS FROM INVESTING ACTIVITIES:
		Purchases of property and equipment	(1,094,737)	(1,817,875)
Net cash used in investing activities			(1,094,737)	(1,817,875)

CASH FLOWS FROM FINANCING ACTIVITIES:
		Share repurchases	(100,545)	-
		Payment on related party loan	(1,000,000)	-
		Distributions to non-controlling interest	(71,728)	(13,408)
Net cash used in financing activities			(1,172,273)	(13,408)

Net decrease in cash and cash equivalents			(3,150,971)	(1,712,512)
Cash and cash equivalents, beginning of the period			11,825,915	9,804,291
Cash and cash equivalents, end of the period			$ 8,674,944	$ 8,091,779