AMERICAN DG ENERGY INC - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - November 18, 2013

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8-K - 8-K - AMERICAN DG ENERGY INCadge20130930-8kearningsrel.htm


EXHIBIT 99.1
                

FOR IMMEDIATE RELEASE

Investor Contact:
Jesse T. Herrick
American DG Energy Inc.
781.522.6020
jesse.herrick@americandg.com

Media Contact:
Barry J. Sanders
American DG Energy Inc.
781.522.6010
barry.sanders@americandg.com
 
 American DG Energy Reports Third Quarter 2013 Financial Performance

Third quarter revenue increases by 26% compared to a year ago period

WALTHAM, Mass. – November 14, 2013 - 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 $1,762,314 in the third quarter of 2013, compared to $1,400,255 for the same period in 2012, an increase of 26%. GAAP diluted loss per share (EPS) was $(0.02) in the third quarter of 2013, compared with $(0.03) for the same period in 2012.
 
Major Highlights:
 
Financial

•
Energy revenue increased by 24% to $1,652,565 in the third quarter of 2013, compared to $1,337,831 for the same period in 2012. An energy feasibility study was initiated adding $109,749 to bring the year over year increase to 26%. Utility rates for thermal energy (such as natural gas) decreased approximately 6% and electricity rates decreased by 1% in the third quarter of 2013 compared to the same period in 2012, which lowered our energy revenue for the period.
•
EBITDA cash outflows for American DG Energy in North America were $26,163 in the third quarter of 2013. The EuroSite Power cash outflows were $258,852; therefore, our consolidated EBITDA cash outflows were $285,015 in the third quarter of 2013.
•
Energy gross profit margin in North America without depreciation was over 44% in the third quarter of 2013.
•
We finished the third quarter of 2013 with approximately $10.6 million in cash.
•
The total revenue value of our On-Site Utility energy agreements since inception is approximately $285 million using various market assumptions and estimates made by the Company.
•
The company raised $965,001 in equity capital through private placements in the quarter from a major shareholder and a member of the Board of Directors.
•
On August 15, 2013 shareholders of American DG Energy received a special dividend of an aggregate of 4,880,720 shares of EuroSite Power.

Operations
 
•
450 kW combined heat and power (CHP) system was approved for operation by New York City, effective November 12, 2013.
•
30-ton chiller commenced operation at DoubleTree by Hilton Hotel in Tarrytown, NY in addition to a 100 kW CHP system already operating at the property.
•
150 kW operating CHP system was purchased in place and added to the existing 75 CHP system already operating by American DG Energy at this New Jersey property.
•
100 kW CHP system commenced operation at DoubleTree by Hilton in Dublane Hydro, Scotland.
•
100 kW CHP system commenced operation at Roko Health Club in York, UK.
•
100 kW CHP system commenced operation at Roko Health Club in Chiswick, UK.

1


•
Two feasibility study contracts with a major university and a large hospitality group were signed.
•
400-ton chiller new contract with a facility in New Jersey was signed.
•
100 kW CHP system new contract with Bury St Edmunds Leisure Centre in Suffolk, UK was signed.
•
100 kW CHP system new contract with Dunstable Leisure Centre in Dunstable, UK was signed.
•
We currently operate 109 energy systems (not including the six CHP systems, 450 kW, approved by New York City on November 12, 2013) and our current backlog consists of 34 energy systems.
•
Total energy production increased by 32% to 22.7 million kWh in the third quarter of 2013 compared to the same period in 2012.
•
The associated revenue was attributable to the following core markets:

Hospitality
22
%
Housing
21
%
Fitness
20
%
Education
17
%
Healthcare
16
%
Other
4
%
TOTAL
100
%

•
The revenue was distributed by energy type as is outlined in the following table:

Electricity
41
%
Thermal
30
%
Cooling
29
%
TOTAL
100
%

•
The company welcomed John W. Rowe to the Board of Directors, adding years of management and operational expertise in the energy space, having notably served as Chairman and Chief Executive Officer at Exelon Corporation.

American DG Energy will hold its earnings conference call today, November 14, 2013 at 10:00 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 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 Thursday, November 21, 2013. 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 10036228.

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.

# # #
 

2


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.






3


CONSOLIDATED STATEMENT OF OPERATIONS

For the Three Months Ended September 30, 2013 and September 30, 2012  

 
Three Months Ended September 30, 2013
 
 
American DG Energy
 
EuroSite Power
 
Eliminations
 
Total
 
Three Months Ended September 30,
2013
Revenues
 
 
 
 
 
 
 
 
 
Energy revenues
1,484,417

 
168,148

 
—

 
$
1,652,565

 
1,337,831

Turnkey & other revenues
109,749

 
-

 
—

 
109,749

 
62,424

 
1,594,166

 
168,148

 
—

 
1,762,314

 
1,400,255

Cost of sales
 
 
 
 
 
 
 
 
 
Fuel, maintenance and installation
862,566

 
172,209

 
—

 
1,034,775

 
733,727

Depreciation expense
309,915

 
19,034

 
—

 
328,949

 
301,813

 
1,172,481

 
191,243

 
—

 
1,363,724

 
1,035,540

Gross profit (loss)
421,685

 
(23,095
)
 
—

 
398,590

 
364,715

Operating expenses
 
 
 
 
 
 
 
 
 
General and administrative
516,536

 
189,912

 
—

 
706,448

 
603,729

Selling
154,318

 
104,138

 
—

 
258,456

 
390,863

Engineering
192,778

 
33,787

 
—

 
226,565

 
270,405

 
863,632

 
327,837

 
—

 
1,191,469

 
1,264,997

Loss from operations
(441,947
)
 
(350,932
)
 
—

 
(792,879)

 
(900,282
)
Other income (expense), net
 
 
 
 
 
 
 
 
 
Interest and other income
19,151

 
2,480

 
—

 
21,631

 
17,547

Interest expense
(306,778
)
 
(40,000
)
 
—

 
(346,778
)
 
(293,556
)
Change in fair value of warrant liability
(46,934
)
 
-

 
—

 
(46,934
)
 
(82,293
)
 
(334,561
)
 
(37,520
)
 
—

 
(372,081
)
 
(358,302
)
Loss before provision for state income taxes
(776,508
)
 
(388,452
)
 
—

 
(1,164,960
)
 
(1,258,584
)
Benefit (provision) for state income taxes
(3,690
)
 
-

 
—

 
(3,690)

 
(9,440
)
Consolidated net loss
(780,198
)
 
(388,452
)
 
—

 
(1,168,650
)
 
(1,268,024
)
(Income) loss attributable to the noncontrolling interest
(57,451
)
 
-

 
97,786

 
40,335

 
8,534

Net loss attributable to American DG Energy Inc.
(837,649
)
 
(388,452
)
 
97,786

 
$
(1,128,315
)
 
(1,259,490
)
 
 
 
 
 
 
 
 
 
 
Net loss per share - basic and diluted
(0.02
)
 
 
 
 
 
$
(0.02
)
 
(0.03
)
Weighted average shares outstanding - basic and diluted
49,015,891

 
 
 
 
 
49,015,891

 
47,653,786

 
 
 
 
 
 
 
 
 
 
Non-GAAP financial disclosure
 
 
 
 
 
 
 
 
 
Loss from operations
(441,947
)
 
$ 350,932)

 
—

 
$
(792,879
)
 
(900,282
)
Depreciation & other non-cash expense
331,387

 
20,646

 
—

 
352,033

 
317,986

Stock based compensation
84,397

 
71,434

 
—

 
155,831

 
216,551

Adjusted EBITDA
(26,163
)
 
(258,852
)
 
—

 
(285,015)

 
(365,745
)
Grants from rebates and incentives
—

 
—

 
—

 
0

 
—

Total EBITDA cash outflows
(26,163
)
 
(258,852
)
 
—

 
$
(285,015
)
 
(365,745
)



4


CONSOLIDATED BALANCE SHEETS

As of September 30, 2013 and December 31, 2012
(unaudited) 

 
September 30,
2013
 
December 31,
2012
ASSETS
 

 
 

Current assets:
 

 
 

Cash and cash equivalents
$
10,636,868

 
$
13,362,919

Accounts receivable, net
1,114,840

 
761,678

Unbilled revenue
16,470

 
19,492

Due from related party
433,238

 
18,372

Inventory
2,669,190

 
2,920,444

Prepaid and other current assets
318,239

 
308,164

Total current assets
15,188,845

 
17,391,069

Property, plant and equipment, net
21,240,177

 
17,253,648

Accounts receivable, long-term
58,100

 
46,800

Other assets, long-term
67,773

 
47,216

TOTAL ASSETS
$
36,554,895

 
$
34,738,733

 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 

 
 

Current liabilities:
 

 
 

Accounts payable
$
750,984

 
$
765,618

Accrued expenses and other current liabilities
936,888

 
532,420

Due to related party
57,966

 
41,812

Capital lease obligations
870

 
3,365

Total current liabilities
1,746,708

 
1,343,215

Long-term liabilities:
 

 
 

Convertible debentures
21,664,222

 
19,400,000

Warrant liability
117,382

 
389,454

Other long-term liabilities
19,238

 
29,444

Total liabilities
23,547,550

 
21,162,113

Stockholders’ equity:
 

 
 

American DG Energy Inc. stockholders’ equity:
 

 
 

Common stock, $0.001 par value; 100,000,000 shares authorized; 49,440,529 and 48,490,733 issued and outstanding at September 30, 2013 and December 31, 2012, respectively
49,441

 
48,491

Additional paid-in capital
39,339,468

 
37,001,439

Accumulated deficit
(27,802,703
)
 
(24,456,845
)
Total American DG Energy Inc. stockholders’ equity
11,586,206

 
12,593,085

Noncontrolling interest
1,421,139

 
983,535

Total stockholders’ equity
13,007,345

 
13,576,620

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
36,554,895

 
$
34,738,733



5


CONSOLIDATED STATEMENT OF CASH FLOWS

For the Nine Months Ended September 30, 2013 and September 30, 2012  
(unaudited) 

 
Nine Months Ended
 
September 30,
2013
 
September 30,
2012
 
(unaudited)
 
(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
 

 
 

Net loss
$
(3,345,858
)
 
$
(5,078,148
)
Income (loss) attributable to noncontrolling interest
(116,148
)
 
(79,285
)
Adjustments to reconcile net loss to net cash used in operating activities:
 

 
 

Depreciation and amortization
1,046,730

 
1,175,210

Provision for losses on accounts receivable
64,134

 
89,649

Amortization of deferred financing costs
20,671

 
3,733

Increase (decrease) in fair value of warrant liability
(272,072
)
 
343,629

Noncash interest expense
528,489

 
712,921

Stock-based compensation
439,191

 
596,408

Changes in operating assets and liabilities:
 

 
 

(Increase) decrease in:
 

 
 

Accounts receivable and unbilled revenue
(425,574
)
 
(100,954
)
Due from related party
(414,866
)
 
(143,438
)
Inventory
251,254

 
(621,041
)
Prepaid and other current assets
(25,859
)
 
(61,066
)
Increase (decrease) in:
 

 
 

Accounts payable
(14,634
)
 
870,188

Accrued expenses and other current liabilities
404,479

 
250,196

Due to related party
16,154

 
215,617

Other long-term liabilities
(10,206
)
 
(10,206
)
Net cash used in operating activities
(1,854,115
)
 
(1,836,587
)
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 

 
 

Purchases of property and equipment
(4,473,759
)
 
(2,936,567
)
Net cash used in investing activities
(4,473,759
)
 
(2,936,567
)
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 

 
 

Proceeds from issuance of convertible debentures
2,900,000

 
—

Proceeds from issuance of warrants
—

 
7,500

Proceeds from sale of common stock, net of costs
965,001

 
3,531,534

Proceeds from sale of subsidiary common stock, net of cost
(4,558
)
 
—

Proceeds from exercise of common stock options
—

 
149,882

Purchases of common stock, net of costs
—

 
(750,000
)
Convertible debenture transaction costs
(12,222
)
 
—

Principal payments on capital lease obligations
(2,495
)
 
(2,524
)
Cancellation of restricted stock


 
(40
)
Distributions to noncontrolling interest
(243,903
)
 
(213,281
)
Net cash provided by financing activities
3,601,823

 
2,723,071

 
 
 
 
Net decrease in cash and cash equivalents
(2,726,051
)
 
(2,050,083
)
Cash and cash equivalents, beginning of the period
13,362,919

 
17,801,025

Cash and cash equivalents, end of the period
$
10,636,868

 
$
15,750,942



6

AMERICAN DG ENERGY INC Reports