Attached files
| file | filename |
|---|---|
| 8-K - AMERICAN DG ENERGY INC | v211465_8k.htm |
 |
EXHIBIT
99.1
|
press
release
For
further information contact:
John
Hatsopoulos, American DG Energy
Telephone:
781.522.6020
American
DG Energy Reports Fourth Quarter and FY 2010 Financial Performance
Energy
Revenues increased 40% in the Fourth Quarter
WALTHAM, Mass. – February 15, 2011
– American DG Energy Inc. (NYSE Amex: ADGE), a leading On-Site Utility,
offering clean electricity, heat, hot water and cooling solutions to
hospitality, healthcare, housing and athletic facilities, reported energy
revenues of $1,298,882 in the fourth quarter of 2010, compared to $929,269 in
the fourth quarter of 2009, total revenues of $1,375,948 in the fourth quarter
of 2010, compared to $1,288,286 in the fourth quarter of 2009 and total revenues
of $5,634,765 for the full year in 2010, compared to $5,763,827 in 2009. GAAP
diluted loss per share (EPS) was $(0.04) in 2010, compared to $(0.07) in 2009,
and GAAP operating income was a loss of $(1,681,703) in 2010, compared to a loss
of $(1,954,072) in 2009.
Major
Highlights in the Fourth Quarter and FY 2010:
|
|
·
|
In
the fourth quarter of 2010 energy revenue increased by 39.8% to $1,298,882
compared to $929,269 for the same period in 2009 and energy gross profit
margin without depreciation increased to 33.4% primarily due to the
additional energy systems and the increased hours of operation of our
fleet.
|
|
|
·
|
For
the year, energy revenue increased by 8.9% and energy gross profit margin
without depreciation increased to 37.0% primarily due to the additional
energy systems added to the fleet, the efficient operation of our energy
systems, increased chilled water or cooling revenue, and the lower price
of natural gas. The natural gas price, a key component in calculating our
hot water revenue, was considerably lower in 2010 compared to
2009.
|
|
|
·
|
We
added 14 new energy systems in 2010 bringing the total number of energy
systems operating to 76 compared to 62 in 2009. The total value of our
current On-Site Utility energy agreements is approximately $152
million.
|
|
|
·
|
Our
current backlog consists of 9 energy
systems.
|
|
|
·
|
We
received $451,603 in rebates and incentives in
2010.
|
|
|
·
|
We
finished the year with approximately $4.0 million in cash, cash
equivalents and short-term
investments.
|
|
|
·
|
In
February we called the $5.3 million outstanding balance of our 8% senior
convertible debentures, all of which was converted into shares of common
stock.
|
|
|
·
|
We
joined the Russell 3000Ò Index
in June, which measures the performance of the largest 3,000 U.S.
companies, representing approximately 98% of the investable U.S. equity
market.
|
|
|
·
|
In
June we reached an agreement to supply clean energy to Doral Arrowwood
Hotel and Conference Center in Rye Brook, New York using a 375 kW combined
heat and power system.
|
|
|
·
|
In
December we expanded our fleet of combined heat and power and chiller
systems to six at Stevens Institute of Technology, a premier technological
university in Hoboken, New Jersey.
|
|
|
·
|
We
raised $2.3 million from the sale of common stock of EuroSite Power Inc.,
a subsidiary whose business focus is to introduce the On-Site Utility
solution to the United Kingdom and
Europe.
|
|
|
·
|
In
addition to the EuroSite Power Inc. offering, we raised $2.7 million for
American DG Energy from accredited
investors.
|
|
|
·
|
We
shipped our first energy system to the United Kingdom in
December.
|
|
|
·
|
We
added Ms. Deanna M. Petersen, Vice President of Business Development for
Shire Human Genetic Therapies and Mr. Frank Mlynarczyk, the chief
executive officer of Scarsdale Equities LLC as new members to our Board of
Directors.
|
-more-
|
|
American
DG Energy Reports Fourth Quarter and FY 2010 Financial Performance,
page 2 of 6
|
Recent
Highlights:
|
|
·
|
In
January 2011 we announced the operation of our energy system at the
Doubletree Guest Suites Boston, a premier, all-suite hotel in Boston,
Massachusetts.
|
|
|
·
|
We
entered into an agreement with Nexant, Inc., to monetize the energy
efficiency credits for our fleet of combined heat and power systems
operating in Massachusetts.
|
|
|
·
|
We
added Dr. Ahmed Ghoniem, the Ronald C. Crane Professor of Mechanical
Engineering at the Massachusetts Institute of Technology as a new
member to the EuroSite Power Inc. Board of
Directors.
|
“Our
energy revenues increased by 40% in the fourth quarter, far exceeding our
expectations, despite substantially lower gas prices which reduce our hot water
sales.” said John N. Hatsopoulos, Chief Executive Officer of American DG
Energy. “Our focus continues to be the revenue growth of our
long-term energy agreements compared to the short-term opportunities of turnkey
installations.”
American
DG Energy will hold its earnings conference call today, February 15, 2011 at
10:00 a.m. Eastern Time. To listen, call (800) 860-2442 within
the U.S. or (412) 858-4600 outside the U.S. 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 Tuesday, February 22,
2011. To listen to the playback, call (877) 344-7529 within the
U.S. or (412) 317-0088 outside the U.S. and use Playback Code
448359.
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.
|
|
American
DG Energy Reports Fourth Quarter and FY 2010 Financial Performance,
page 3 of 6
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
for the
Three Months Ended December 31, 2010 and December 31, 2009
|
Three Months Ended
|
||||||||
|
December 31,
|
December 31,
|
|||||||
|
2010
|
2009
|
|||||||
|
Revenues
|
||||||||
|
Energy
revenues
|
$ | 1,298,882 | $ | 929,269 | ||||
|
Turnkey
& other revenues
|
77,066 | 359,017 | ||||||
| 1,375,948 | 1,288,286 | |||||||
|
Cost
of sales
|
||||||||
|
Fuel,
maintenance and installation
|
975,850 | 1,014,944 | ||||||
|
Depreciation
expense
|
226,674 | 213,821 | ||||||
| 1,202,524 | 1,228,765 | |||||||
|
Gross
profit
|
173,424 | 59,521 | ||||||
|
Operating
expenses
|
||||||||
|
General
and administrative
|
424,484 | 475,104 | ||||||
|
Selling
|
106,518 | 169,535 | ||||||
|
Engineering
|
145,840 | 227,083 | ||||||
| 676,842 | 871,722 | |||||||
|
Loss
from operations
|
(503,418 | ) | (812,201 | ) | ||||
|
Other
income (expense)
|
||||||||
|
Interest
and other income
|
11,438 | 6,460 | ||||||
|
Interest
expense
|
(29,046 | ) | (107,800 | ) | ||||
|
Change
in fair value of warrant liability
|
59,681 | - | ||||||
| 42,073 | (101,340 | ) | ||||||
|
Loss
before income taxes
|
(461,345 | ) | (913,541 | ) | ||||
|
Provision
for state income taxes
|
(4,020 | ) | (1,800 | ) | ||||
|
Consolidated
net loss
|
(465,365 | ) | (915,341 | ) | ||||
|
Less:
Income attributable to the noncontrolling interest
|
(60,569 | ) | (44,725 | ) | ||||
|
Net
loss attributable to American DG Energy Inc.
|
(525,934 | ) | (960,066 | ) | ||||
|
Net
loss per share - basic and diluted
|
$ | (0.01 | ) | $ | (0.03 | ) | ||
|
Weighted
average shares outstanding -
|
||||||||
|
basic
and diluted
|
44,994,322 | 37,145,871 | ||||||
|
Non-GAAP financial
disclosure
|
||||||||
|
Loss
from operations
|
$ | (503,418 | ) | $ | (812,201 | ) | ||
|
Depreciation
expense
|
243,689 | 221,509 | ||||||
|
Stock
based compensation
|
89,533 | 68,524 | ||||||
|
Adjusted
EBITDA
|
(170,196 | ) | (522,168 | ) | ||||
|
Grants
from rebates and incentives
|
29,500 | 133,209 | ||||||
|
Total
cash inflows
|
$ | (140,696 | ) | $ | (388,959 | ) | ||
|
|
American
DG Energy Reports Fourth Quarter and FY 2010 Financial Performance,
page 4 of 6
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
for the
years ending December 31, 2010 and December 31, 2009
|
2010
|
2009
|
|||||||
|
Revenues
|
||||||||
|
Energy
revenues
|
$ | 5,043,744 | $ | 4,632,988 | ||||
|
Turnkey
& other revenues
|
591,021 | 1,130,839 | ||||||
| 5,634,765 | 5,763,827 | |||||||
|
Cost
of sales
|
||||||||
|
Fuel,
maintenance and installation
|
3,625,404 | 3,888,438 | ||||||
|
Depreciation
expense
|
867,923 | 788,885 | ||||||
| 4,493,327 | 4,677,323 | |||||||
|
Gross
profit
|
1,141,438 | 1,086,504 | ||||||
|
Operating
expenses
|
||||||||
|
General
and administrative
|
1,487,040 | 1,546,743 | ||||||
|
Selling
|
602,597 | 850,975 | ||||||
|
Engineering
|
733,504 | 642,858 | ||||||
| 2,823,141 | 3,040,576 | |||||||
|
Loss
from operations
|
(1,681,703 | ) | (1,954,072 | ) | ||||
|
Other
income (expense)
|
||||||||
|
Interest
and other income
|
51,385 | 71,185 | ||||||
|
Interest
expense
|
(125,131 | ) | (437,544 | ) | ||||
|
Change
in fair value of warrant liability
|
59,681 | - | ||||||
| (14,065 | ) | (366,359 | ) | |||||
|
Loss
before income taxes
|
(1,695,768 | ) | (2,320,431 | ) | ||||
|
Provision
for state income taxes
|
(14,730 | ) | (7,450 | ) | ||||
|
Consolidated
net loss
|
(1,710,498 | ) | (2,327,881 | ) | ||||
|
Less:
Income attributable to the noncontrolling interest
|
(197,505 | ) | (202,684 | ) | ||||
|
Net
loss attributable to American DG Energy Inc.
|
(1,908,003 | ) | (2,530,565 | ) | ||||
|
Net
loss per share - basic and diluted
|
$ | (0.04 | ) | $ | (0.07 | ) | ||
|
Weighted
average shares outstanding -
|
||||||||
|
basic
and diluted
|
43,525,374 | 35,554,303 | ||||||
|
Non-GAAP financial
disclosure
|
||||||||
|
Loss
from operations
|
$ | (1,681,703 | ) | $ | (1,954,072 | ) | ||
|
Depreciation
expense
|
911,125 | 806,776 | ||||||
|
Stock
based compensation
|
228,736 | 286,844 | ||||||
|
Adjusted
EBITDA
|
(541,842 | ) | (860,452 | ) | ||||
|
Grants
from rebates and incentives
|
451,603 | 214,653 | ||||||
|
Total
cash inflows
|
$ | (90,239 | ) | $ | (645,799 | ) | ||
|
|
American
DG Energy Reports Fourth Quarter and FY 2010 Financial Performance,
page 5 of 6
|
CONSOLIDATED
BALANCE SHEETS
for the
years ending December 31, 2010 and December 31, 2009
|
2010
|
2009
|
|||||||
|
ASSETS
|
||||||||
|
Current
assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 3,921,054 | $ | 3,149,222 | ||||
|
Restricted
cash
|
65,790 | - | ||||||
|
Short-term
investments
|
- | 678,921 | ||||||
|
Accounts
receivable, net
|
661,435 | 518,379 | ||||||
|
Unbilled
revenue
|
117,846 | 146,940 | ||||||
|
Due
from related party
|
52,432 | 370,400 | ||||||
|
Inventory
|
487,724 | 379,303 | ||||||
|
Prepaid
and other current assets
|
86,089 | 104,119 | ||||||
|
Total
current assets
|
5,392,370 | 5,347,284 | ||||||
|
Property,
plant and equipment, net
|
14,362,444 | 9,502,346 | ||||||
|
Accounts
receivable, long-term
|
17,034 | - | ||||||
|
TOTAL
ASSETS
|
19,771,848 | 14,849,630 | ||||||
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
|
Current
liabilities:
|
||||||||
|
Accounts
payable
|
482,917 | 740,474 | ||||||
|
Accrued
expenses and other current liabilities
|
370,774 | 453,536 | ||||||
|
Due
to related party
|
2,560,720 | 17,531 | ||||||
|
Capital
lease obligations
|
3,365 | 3,365 | ||||||
|
Total
current liabilities
|
3,417,776 | 1,214,906 | ||||||
|
Long-term
liabilities:
|
||||||||
|
Convertible
debentures
|
- | 5,320,000 | ||||||
|
Warrant
liability
|
676,603 | - | ||||||
|
Capital
lease obligations, long-term
|
6,730 | 10,095 | ||||||
|
Total
liabilities
|
4,101,109 | 6,545,001 | ||||||
|
Stockholders’
equity:
|
||||||||
|
American
DG Energy Inc. shareholders’ equity:
|
||||||||
|
Common
stock, $0.001 par value; 100,000,000 shares
|
||||||||
|
authorized;
45,598,029 and 37,676,817 issued and outstanding
|
||||||||
|
at
December 31, 2010 and December 31, 2009, respectively
|
45,598 | 37,677 | ||||||
|
Additional
paid-in capital
|
28,905,660 | 19,725,793 | ||||||
|
Accumulated
deficit
|
(14,147,113 | ) | (12,239,110 | ) | ||||
|
Total
American DG Energy Inc. stockholders’ equity
|
14,804,145 | 7,524,360 | ||||||
|
Noncontrolling
interest
|
866,594 | 780,269 | ||||||
|
Total
stockholders’ equity
|
15,670,739 | 8,304,629 | ||||||
|
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$ | 19,771,848 | $ | 14,849,630 | ||||
|
|
American
DG Energy Reports Fourth Quarter and FY 2010 Financial Performance, page 6
of 6
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
for the
years ending December 31, 2010 and December 31, 2009
|
2010
|
2009
|
|||||||
|
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
|
Net
loss
|
$ | (1,908,003 | ) | $ | (2,530,565 | ) | ||
|
Income
attributable to noncontrolling interest
|
197,505 | 202,684 | ||||||
|
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
||||||||
|
Depreciation
and amortization
|
911,125 | 806,776 | ||||||
|
Provision
for losses on accounts receivable
|
57,576 | 299,994 | ||||||
|
Amortization
of deferred financing costs
|
8,526 | 8,526 | ||||||
|
Change
in fair value of warrant liability
|
(59,681 | ) | - | |||||
|
Stock-based
compensation
|
228,736 | 286,844 | ||||||
|
Changes
in operating assets and liabilities
|
||||||||
|
(Increase)
decrease in:
|
||||||||
|
Restricted
cash
|
(65,790 | ) | - | |||||
|
Accounts
receivable and unbilled revenue
|
(188,572 | ) | 168,294 | |||||
|
Due
from related party
|
193,857 | (308,183 | ) | |||||
|
Inventory
|
(108,421 | ) | (23,451 | ) | ||||
|
Prepaid
assets
|
9,504 | 50,476 | ||||||
|
Increase
(decrease) in:
|
||||||||
|
Accounts
payable
|
(257,557 | ) | 469,622 | |||||
|
Accrued
expenses and other current liabilities
|
(24,274 | ) | 69,196 | |||||
|
Due
to related party
|
143,189 | (149,029 | ) | |||||
|
Net
cash used in operating activities
|
(862,280 | ) | (648,816 | ) | ||||
|
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
|
Purchases
of property and equipment
|
(5,771,223 | ) | (3,939,384 | ) | ||||
|
Sale
of short-term investments
|
678,921 | 82,693 | ||||||
|
Net
cash used in investing activities
|
(5,092,302 | ) | (3,856,691 | ) | ||||
|
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
|
Proceeds
from issuance of warrants
|
736,284 | 372,815 | ||||||
|
Proceeds
from exercise of warrants
|
350,000 | 35,000 | ||||||
|
Proceeds
from sale of common stock, net of costs
|
1,286,855 | 5,878,079 | ||||||
|
Proceeds
from sale of subsidiary common stock, net of costs
|
2,226,019 | - | ||||||
|
Proceeds
from exercise of stock options
|
54,775 | 22,406 | ||||||
|
Proceeds
from related party line of credit
|
2,400,000 | - | ||||||
|
Convertible
debenture transaction costs
|
(21,556 | ) | - | |||||
|
Principal
payments on capital lease obligations
|
(3,365 | ) | (3,365 | ) | ||||
|
Distributions
to noncontrolling interest
|
(302,598 | ) | (333,704 | ) | ||||
|
Net
cash provided by financing activities
|
6,726,414 | 5,971,231 | ||||||
|
Net
increase in cash and cash equivalents
|
771,832 | 1,465,724 | ||||||
|
Cash
and cash equivalents, beginning of the year
|
3,149,222 | 1,683,498 | ||||||
|
Cash
and cash equivalents, end of the year
|
$ | 3,921,054 | $ | 3,149,222 | ||||
|
Supplemental
disclosures of cash flows information:
|
||||||||
|
Cash
paid during the year for:
|
||||||||
|
Interest
|
$ | 114,116 | $ | 448,645 | ||||
|
Income
taxes
|
$ | 31,329 | $ | 35,460 | ||||
|
Non-cash
investing and financing activities:
|
||||||||
|
Conversion
of convertible debentures to common stock
|
$ | 5,320,000 | $ | 555,000 | ||||