American DG Energy Reports Third Quarter 2011 Financial Performance
Energy Revenues Increased by 14% for the Nine Month Period
WALTHAM, Mass., Nov. 10, 2011 /PRNewswire/ -- American DG Energy Inc. (NYSE Amex: ADGE), a leading OnSite Utility, offering clean electricity, heat, hot water and cooling solutions to hospitality, healthcare, housing and athletic facilities, reported revenues of $1,418,411 in the third quarter of 2011, compared to $1,569,577 in the third quarter of 2010. GAAP diluted loss per share (EPS) was $(0.02) in 2011, compared to $(0.00) in 2010 and GAAP operating income was a loss of $(1,132,620) in 2011, compared to a loss of $(61,015) in 2010.
Third Quarter 2011 Highlights:
- Energy revenue remained relatively unchanged at $1,389,159 compared to $1,395,274 for the same period in 2010. The market price of electricity decreased by 7.8% and the price of natural gas, a key component in the calculation of hot water revenue decreased by 3.4%.
- Energy gross profit margin without depreciation was 47.8% compared to 51.6% for the same period in 2010.
- Our total cash inflows, excluding our EuroSite Power subsidiary, for the last 18 months were $241,769 and year-to-date was $34,876.
- Our installed base increased by 8 new energy systems from a year ago bringing the total number of energy systems operating to 79 compared to 71 in the third quarter of 2010.
- Our installed base of combined heat and power (CHP) systems surpassed 5,460 KW.
- Our backlog consisted of 8 energy systems.
- We finished the quarter with approximately $12.1 million in cash.
- In August we announced the startup of two more energy systems at Stevens Institute of Technology, a premier technological university, located in Hoboken, New Jersey. The addition of these two 75kW CHP systems, located at Stevens Central Plant, brought the total number of energy systems we own and operate at the university to nine.
- In September we reached an agreement to provide an on-site energy solution with the first heat pump system to Sidney Albert Albany Jewish Community Center (Albany JCC), located in Albany, New York.
- Since the beginning of the year and including EuroSite Power we have added 16 people to our team of sales, engineers and advisors to focus on growing our business.
- In August we filed an initial Form 10 Registration Statement with the Securities and Exchange Commission for our EuroSite Power subsidiary.
- In September we officially launched EuroSite Power Limited in the United Kingdom during The Energy Event and introduced our new Managing Director Mr. Paul J. Hamblyn.
- We have started a major marketing effort to communicate our brand and increase lead generation via a multi-media offering.
Recent Highlights:
- After the end of the quarter we received approximately $160,000 in rebates and incentives.
- In November we announced the operation of a 375 kW CHP system at Doral Arrowwood Hotel and Conference Center in Rye Brook, New York. The system is estimated to generate total revenue of approximately $10 million over the term of the 15 year agreement.
- With the introduction of the heat pump system and low emissions technology we are preparing to expand our market reach in 2012.
- In October we appointed Messrs. Adrian Fawcett, Ian Durant and Gary Parke to the EuroSite Power Advisory Board.
- We have ordered 3 Inverter based CHP systems that will be shipped to the United Kingdom later this year for EuroSite Power.
- The EuroSite Power registration statement on Form 10 became effective on October 17, 2011.
American DG Energy will hold its earnings conference call today, November 10, 2011 at 10:00 a.m. Eastern Time. To listen, call (800) 8602442 within the U.S., (866) 605-3852 from Canada or (412) 8584600 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 call will be available for playback through Friday, November 18, 2011 at 9:00 a.m. Eastern Time. To listen to the playback, call (877) 3447529 within the U.S. or (412) 317-0088 outside the U.S. and use Conference Number 10006147.
The earnings conference call will be webcast live. To register for and listen to the webcast, go to www.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. 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. More information can be found at www.americandg.com.
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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS for the Three Months Ended September 30, 2011 and September 30, 2010 |
|||||
Three Months Ended |
|||||
September 30, |
September 30, |
||||
2011 |
2010 |
||||
(unaudited) |
(unaudited) |
||||
Revenues |
|||||
Energy revenues |
$ 1,389,159 |
$ 1,395,274 |
|||
Turnkey & other revenues |
29,252 |
174,303 |
|||
1,418,411 |
1,569,577 |
||||
Cost of sales |
|||||
Fuel, maintenance and installation |
716,806 |
763,653 |
|||
Depreciation expense |
318,903 |
226,006 |
|||
1,035,709 |
989,659 |
||||
Gross profit |
382,702 |
579,918 |
|||
Operating expenses |
|||||
General and administrative |
593,558 |
375,197 |
|||
Selling |
699,898 |
111,132 |
|||
Engineering |
221,866 |
154,604 |
|||
1,515,322 |
640,933 |
||||
Loss from operations |
(1,132,620) |
(61,015) |
|||
Other income (expense), net |
|||||
Interest and other income |
11,433 |
11,779 |
|||
Interest expense |
(142,772) |
(23,280) |
|||
Change in fair value of warrant liability |
125,668 |
- |
|||
(5,671) |
(11,501) |
||||
Loss before income taxes |
(1,138,291) |
(72,516) |
|||
Benefit (provision) for state income taxes |
41 |
(5,360) |
|||
Consolidated net loss |
(1,138,250) |
(77,876) |
|||
Income attributable to the noncontrolling interest |
28,734 |
(57,148) |
|||
Net loss attributable to American DG Energy Inc. |
(1,109,516) |
(135,024) |
|||
Net loss per share - basic and diluted |
$ (0.02) |
$ (0.00) |
|||
Weighted average shares outstanding - |
|||||
basic and diluted |
45,834,904 |
44,835,844 |
|||
Non-GAAP financial disclosure |
|||||
Loss from operations |
$ (1,132,620) |
$ (61,015) |
|||
Depreciation expense |
332,368 |
236,807 |
|||
Stock based compensation |
186,960 |
37,425 |
|||
Adjusted EBITDA |
(613,292) |
213,217 |
|||
Grants from rebates and incentives |
- |
117,898 |
|||
Total cash inflows (outflows) |
$ (613,292) |
$ 331,115 |
|||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS for the Nine Months Ended September 30, 2011 and September 30, 2010 |
|||||
Nine Months Ended |
|||||
September 30, |
September 30, |
||||
2011 |
2010 |
||||
(unaudited) |
(unaudited) |
||||
Revenues |
|||||
Energy revenues |
$ 4,270,336 |
$ 3,744,862 |
|||
Turnkey & other revenues |
283,256 |
513,955 |
|||
4,553,592 |
4,258,817 |
||||
Cost of sales |
|||||
Fuel, maintenance and installation |
2,799,733 |
2,649,554 |
|||
Depreciation expense |
921,931 |
641,249 |
|||
3,721,664 |
3,290,803 |
||||
Gross profit |
831,928 |
968,014 |
|||
Operating expenses |
|||||
General and administrative |
1,618,181 |
1,062,556 |
|||
Selling |
933,848 |
496,079 |
|||
Engineering |
536,132 |
587,664 |
|||
3,088,161 |
2,146,299 |
||||
Loss from operations |
(2,256,233) |
(1,178,285) |
|||
Other income (expense) |
|||||
Interest and other income |
31,414 |
39,947 |
|||
Interest expense |
(246,376) |
(96,085) |
|||
Change in fair value of warrant liability |
509,663 |
- |
|||
294,701 |
(56,138) |
||||
Loss before income taxes |
(1,961,532) |
(1,234,423) |
|||
Provision for state income taxes |
(17,071) |
(10,710) |
|||
Consolidated net loss |
(1,978,603) |
(1,245,133) |
|||
Less: Income attributable to the noncontrolling interest |
(34,808) |
(136,936) |
|||
Net loss attributable to American DG Energy Inc. |
(2,013,411) |
(1,382,069) |
|||
Net loss per share - basic and diluted |
$ (0.04) |
$ (0.03) |
|||
Weighted average shares outstanding - |
|||||
basic and diluted |
45,647,265 |
43,030,344 |
|||
Non-GAAP financial disclosure |
|||||
Loss from operations |
$ (2,256,233) |
$ (1,178,285) |
|||
Depreciation expense |
954,751 |
667,436 |
|||
Stock based compensation |
479,205 |
139,203 |
|||
Adjusted EBITDA |
(822,277) |
(371,646) |
|||
Grants from rebates and incentives |
327,138 |
428,751 |
|||
Total cash inflows (outflows) |
$ (495,139) |
$ 57,105 |
|||
CONDENSED CONSOLIDATED BALANCE SHEETS as of September 30, 2011 and December 31, 2010 |
|||||
September 30, |
December 31, |
||||
2011 |
2010 |
||||
(unaudited) |
(unaudited) |
||||
ASSETS |
|||||
Current assets: |
|||||
Cash and cash equivalents |
$ 12,111,185 |
$ 3,921,054 |
|||
Restricted cash |
- |
65,790 |
|||
Accounts receivable, net |
1,216,674 |
661,435 |
|||
Unbilled revenue |
12,477 |
117,846 |
|||
Due from related party |
77,560 |
52,432 |
|||
Inventory |
517,329 |
487,724 |
|||
Prepaid and other current assets |
221,142 |
86,089 |
|||
Total current assets |
14,156,367 |
5,392,370 |
|||
Property, plant and equipment, net |
14,657,330 |
14,362,444 |
|||
Accounts receivable, long-term |
90,834 |
17,034 |
|||
Other assets, long-term |
40,397 |
- |
|||
TOTAL ASSETS |
28,944,928 |
19,771,848 |
|||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||
Current liabilities: |
|||||
Accounts payable |
486,911 |
482,917 |
|||
Accrued expenses and other current liabilities |
517,478 |
370,774 |
|||
Due to related party |
125,018 |
2,560,720 |
|||
Capital lease obligations |
3,365 |
3,365 |
|||
Total current liabilities |
1,132,772 |
3,417,776 |
|||
Long-term liabilities: |
|||||
Convertible debentures |
12,500,000 |
- |
|||
Warrant liability |
166,940 |
676,603 |
|||
Capital lease obligations, long-term |
4,206 |
6,730 |
|||
Other long-term liabilities |
46,454 |
- |
|||
Total liabilities |
13,850,372 |
4,101,109 |
|||
Stockholders' equity: |
|||||
American DG Energy Inc. shareholders' equity: |
|||||
Common stock, $0.001 par value; 100,000,000 shares |
|||||
authorized; 45,901,404 and 45,598,029 issued and outstanding |
|||||
at September 30, 2011 and December 31, 2010, respectively |
45,901 |
45,598 |
|||
Additional paid-in capital |
30,280,646 |
28,905,660 |
|||
Accumulated deficit |
(16,160,524) |
(14,147,113) |
|||
Total American DG Energy Inc. stockholders' equity |
14,166,023 |
14,804,145 |
|||
Noncontrolling interest |
928,533 |
866,594 |
|||
Total stockholders' equity |
15,094,556 |
15,670,739 |
|||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ 28,944,928 |
$ 19,771,848 |
|||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS for the Nine Months Ended September 30, 2011 and September 30, 2010 |
||||||
Nine Months Ended |
||||||
September 30, |
September 30, |
|||||
2011 |
2010 |
|||||
(unaudited) |
(unaudited) |
|||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||
Net loss |
$ (2,013,411) |
$ (1,382,069) |
||||
Income attributable to noncontrolling interest |
34,808 |
136,936 |
||||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||
Depreciation and amortization |
954,751 |
667,436 |
||||
Provision for losses on accounts receivable |
22,568 |
42,650 |
||||
Amortization of deferred financing costs |
2,256 |
6,395 |
||||
Change in fair value of warrant liability |
(509,663) |
- |
||||
Stock-based compensation |
479,205 |
139,203 |
||||
Changes in operating assets and liabilities |
||||||
(Increase) decrease in: |
||||||
Restricted cash |
65,790 |
- |
||||
Accounts receivable and unbilled revenue |
(546,238) |
(199,636) |
||||
Due from related party |
(25,128) |
94,312 |
||||
Inventory |
(29,605) |
(114,945) |
||||
Prepaid and other current assets |
(130,283) |
13,540 |
||||
Increase (decrease) in: |
||||||
Accounts payable |
3,994 |
(343,453) |
||||
Accrued expenses and other current liabilities |
146,704 |
151,208 |
||||
Other long-term liabilities |
46,454 |
- |
||||
Due to related party |
(35,702) |
653,078 |
||||
Net cash used in operating activities |
(1,533,500) |
(135,345) |
||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||
Purchases of property and equipment |
(1,249,637) |
(4,590,790) |
||||
Sale of short-term investments |
- |
561,847 |
||||
Net cash used in investing activities |
(1,249,637) |
(4,028,943) |
||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||
Proceeds from issuance of convertible debentures |
10,100,000 |
- |
||||
Proceeds from exercise of warrants |
- |
350,000 |
||||
Proceeds from sale of common stock, net of costs |
- |
999,952 |
||||
Proceeds from sale of subsidiary common stock, net of costs |
1,148,401 |
1,356,037 |
||||
Proceeds from exercise of stock options |
26,798 |
54,941 |
||||
Proceeds from related party line of credit |
- |
2,400,000 |
||||
Convertible debenture transaction costs |
(47,423) |
(21,556) |
||||
Principal payments on capital lease obligations |
(2,524) |
(2,524) |
||||
Cancellation of restricted stock |
(20) |
- |
||||
Distributions to noncontrolling interest |
(251,964) |
(200,573) |
||||
Net cash provided by financing activities |
10,973,268 |
4,936,277 |
||||
Net increase (decrease) in cash and cash equivalents |
8,190,131 |
771,989 |
||||
Cash and cash equivalents, beginning of the period |
3,921,054 |
3,149,222 |
||||
Cash and cash equivalents, end of the period |
$ 12,111,185 |
$ 3,921,211 |
||||
SOURCE American DG Energy Inc.
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