EuroSite Power Inc. Reports Second Quarter 2014 Financial Performance
Second quarter revenue increases by 118% compared to a year ago period
WALTHAM. Mass., Aug. 14, 2014 /PRNewswire/ -- EuroSite Power Inc. (OTCBB: EUSP), 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 $416,559 in the second quarter of 2014, compared to $190,754 for the same period in 2013, an increase of 118%. GAAP diluted loss per share (EPS) was $0.01 in the second quarter of 2014, compared with a loss per share of $0.01 for the same period in 2013.
Major Highlights:
Financial
- Total revenue increased by 118% to $416,559 in the second quarter of 2014, compared to $190,754 for the same period in 2013.
- Total gross profit margin excluding depreciation was 22.2% in the second quarter of 2014, versus 7.5% for the same period in 2013.
- We finished the second quarter of 2014 with approximately $1.9 million in cash.
- The total revenue value of our On-Site Utility energy agreements since inception is approximately $84 million using various market assumptions and estimates made by the Company.
Operations
- We currently operate 19 systems with a total contract value of $53 million.
- Our current backlog is 11 systems for a total contract value of $32 million.
- We reached agreement for seven hotels owned by Topland Group where we signed a contract worth £13.2 (US $22.09) million to install and own combined heat and power (CHP) systems
- Total energy production was 4.9 million kWh in the second quarter of 2014.
- We began operations at the following properties:
- 100 kW combined heat and power (CHP) system
- 200 kW combined heat and power (CHP) system
EuroSite Power Inc. will hold its earnings conference call today, August 14, 2014 at 10:30 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 conference call will be recorded and available for playback one hour after the end of the call through Wednesday, August 20, 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 10046039.
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 EuroSite Power
EuroSite Power Limited is a subsidiary of American DG Energy Inc. (NYSE MKT: ADGE). Both companies supply low-cost energy to their 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 conventional energy suppliers – without any capital or start-up costs to the energy user – through its On-Site Utility energy solutions. More information can be found at www.eurositepower.co.uk.
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 SHEET |
|||
| As of June 30, 2014 and December 31, 2013 |
|||
| (unaudited) |
|||
| June 30, |
December 31, |
||
| ASSETS |
2014 |
2013 |
|
| Current assets: |
|||
| Cash and cash equivalents |
$ 1,892,186 |
$ 1,519,602 |
|
| Accounts receivable |
105,929 |
153,514 |
|
| Value added tax receivable |
87,902 |
3,541 |
|
| Inventory |
18,916 |
385,660 |
|
| Other current assets |
44,163 |
52,957 |
|
| Total current assets |
2,149,096 |
2,115,274 |
|
| Property, plant and equipment, net |
4,974,439 |
4,030,330 |
|
| Other assets, long-term |
19,644 |
20,428 |
|
| TOTAL ASSETS |
$ 7,143,179 |
$ 6,166,032 |
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|||
| Current liabilities: |
|||
| Accounts payable |
$ 319,852 |
$ 202,631 |
|
| Accrued expenses and other current liabilities |
187,552 |
71,080 |
|
| Due to related party |
18,625 |
- |
|
| Total current liabilities |
526,029 |
273,711 |
|
| Long-term liabilities: |
|||
| Convertible debentures |
2,312,400 |
1,800,000 |
|
| Convertible debentures due to related parties |
3,720,712 |
2,200,000 |
|
| Total liabilities |
6,559,141 |
4,273,711 |
|
| Stockholders' equity: |
|||
| Common stock |
56,747 |
56,747 |
|
| Additional paid-in capital |
6,770,467 |
6,690,610 |
|
| Accumulated deficit |
(6,243,176) |
(4,855,036) |
|
| Total stockholders' equity |
584,038 |
1,892,321 |
|
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ 7,143,179 |
$ 6,166,032 |
|
| CONSOLIDATED STATEMENT OF OPERATIONS |
|||
| For three months ending June 30, 2014 and June 30, 2013 |
|||
| (unaudited) |
|||
| Three Months Ended |
|||
| June 30, |
June 30, |
||
| 2014 |
2013 |
||
| Revenues |
|||
| Energy revenues |
$ 409,867 |
$ 190,754 |
|
| Turnkey & other revenues |
6,692 |
- |
|
| 416,559 |
190,754 |
||
| Cost of sales |
|||
| Fuel, maintenance and installation |
323,886 |
176,401 |
|
| Depreciation expense |
72,766 |
17,299 |
|
| 396,652 |
193,700 |
||
| Gross profit |
19,907 |
(2,946) |
|
| Operating expenses |
|||
| General and administrative |
235,236 |
371,283 |
|
| Selling |
116,050 |
128,570 |
|
| Engineering |
29,982 |
34,502 |
|
| 381,268 |
534,355 |
||
| Loss from operations |
(361,361) |
(537,301) |
|
| Other income (expense) |
|||
| Interest and other income |
1,596 |
568 |
|
| Interest expense |
6,294 |
(20,492) |
|
| 7,890 |
(19,924) |
||
| Loss before income taxes |
(353,471) |
(557,225) |
|
| Provision for income taxes |
- |
- |
|
| Net loss |
$ (353,471) |
$ (557,225) |
|
| Net loss per share - basic and diluted |
$ (0.01) |
$ (0.01) |
|
| Weighted-average shares outstanding - basic and diluted |
56,747,100 |
56,747,100 |
|
| Non-GAAP financial disclosure |
|||
| Loss from operations |
$ (361,361) |
$ (537,301) |
|
| Depreciation expense |
74,517 |
16,652 |
|
| Stock based compensation |
31,961 |
27,795 |
|
| Adjusted EBITDA |
$ (254,883) |
$ (492,854) |
|
| CONSOLIDATED STATEMENT OF OPERATIONS |
|||
| For six months ending June 30, 2014 and June 30, 2013 |
|||
| (unaudited) |
|||
| Six Months Ended |
|||
| June 30, |
June 30, |
||
| 2014 |
2013 |
||
| Revenues |
|||
| Energy revenues |
$ 840,645 |
$ 307,862 |
|
| Turnkey & other revenues |
8,098 |
- |
|
| 848,743 |
307,862 |
||
| Cost of sales |
|||
| Fuel, maintenance and installation |
652,627 |
270,871 |
|
| Depreciation expense |
143,462 |
32,463 |
|
| 796,089 |
303,334 |
||
| Gross profit |
52,654 |
4,528 |
|
| Operating expenses |
|||
| General and administrative |
428,410 |
566,549 |
|
| Selling |
232,164 |
309,788 |
|
| Engineering |
53,968 |
66,211 |
|
| 714,542 |
942,548 |
||
| Loss from operations |
(661,888) |
(938,020) |
|
| Other income (expense) |
|||
| Interest and other income |
2,809 |
1,798 |
|
| Interest expense |
(15,484) |
(25,745) |
|
| Loss on extinguishment of convertible debt |
(713,577) |
- |
|
| (726,252) |
(23,947) |
||
| Loss before income taxes |
(1,388,140) |
(961,967) |
|
| Provision for income taxes |
- |
- |
|
| Net loss |
$ (1,388,140) |
$ (961,967) |
|
| Net loss per share - basic and diluted |
$ (0.02) |
$ (0.02) |
|
| Weighted-average shares outstanding - basic and diluted |
56,747,100 |
56,747,100 |
|
| Non-GAAP financial disclosure |
|||
| Loss from operations |
$ (661,888) |
$ (938,020) |
|
| Depreciation expense |
146,936 |
35,550 |
|
| Stock based compensation |
79,857 |
101,365 |
|
| Adjusted EBITDA |
$ (435,095) |
$ (801,105) |
|
| CONSOLIDATED STATEMENT OF CASH FLOWS |
|||
| For six months ending June 30, 2014 and June 30, 2013 |
|||
| (unaudited) |
|||
| Six Months Ending |
|||
| June 30, |
June 30, |
||
| 2014 |
2013 |
||
| CASH FLOWS FROM OPERATING ACTIVITIES: |
|||
| Net loss |
$ (1,388,140) |
$ (961,967) |
|
| Adjustments to reconcile net loss to net cash used in operating activities: |
|||
| Depreciation and amortization |
146,936 |
32,463 |
|
| Loss on extinguishment of debt |
713,577 |
- |
|
| Amortization of convertible debt premium |
(72,888) |
- |
|
| Amortization of deferred financing |
784 |
- |
|
| Stock-based compensation |
79,857 |
101,365 |
|
| Changes in operating assets and liabilities |
|||
| (Increase) decrease in: |
|||
| Accounts receivable |
47,585 |
(10,922) |
|
| Value added tax receivable |
(84,361) |
141,610 |
|
| Inventory |
366,744 |
338,367 |
|
| Prepaid and other current assets |
(30,864) |
(22,960) |
|
| Other long term assets |
(17,919) |
- |
|
| Increase (decrease) in: |
|||
| Accounts payable |
117,221 |
39,710 |
|
| Due to related party |
18,625 |
(124,206) |
|
| Accrued expenses and other current liabilities |
116,472 |
(21,221) |
|
| Net cash used in operating activities |
13,629 |
(487,761) |
|
| CASH FLOWS FROM INVESTING ACTIVITIES: |
|||
| Purchases of property and equipment |
(1,091,045) |
(1,409,439) |
|
| Net cash used in investing activities |
(1,091,045) |
(1,409,439) |
|
| CASH FLOWS FROM FINANCING ACTIVITIES: |
|||
| Proceeds from sale of common stock net of costs |
- |
(4,558) |
|
| Proceeds from parent note |
- |
1,100,000 |
|
| Proceeds from convertible debentures |
1,450,000 |
2,874,556 |
|
| Net cash provided by financing activities |
1,450,000 |
3,969,998 |
|
| Net increase (decrease) in cash and cash equivalents |
372,584 |
2,072,798 |
|
| Cash and cash equivalents, beginning of the period |
1,519,602 |
832,511 |
|
| Cash and cash equivalents, end of the period |
$ 1,892,186 |
$ 2,905,309 |
|
SOURCE EuroSite Power Inc.
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