WALTHAM, Mass., May 11,
2017 /PRNewswire/ -- American DG Energy Inc. (NYSE MKT: ADGE,
the "Company"), an On-Site Utility provider offering clean
electricity, heat, hot water and cooling solutions to hospitality,
healthcare, housing and fitness facilities, reported total revenues
of $1,718,164 for the first quarter
of 2017, compared to $1,514,449 for
the first quarter of 2016, a 13.5% increase. GAAP diluted earnings
per share (EPS) was a loss of $0.01
for the first quarter of 2017 versus a loss of $0.02 for the first quarter of 2016.
Speaking about the quarter, Co-Chief Executive Officer
Benjamin Locke noted, "We continue
to manage the company toward maximizing the business potential of
the installed fleet. Our sites improvement initiative, including
upgrading electrical metering for eighty percent of the fleet,
delivered excellent margin improvement alongside new revenue
growth. The over 70% year-on-year growth in demand savings-related
revenue generated in the first quarter is an excellent example of
the potential these improvements can produce. Looking ahead, we
expect to complete the remainder of the planned site improvements
and electrical metering upgrades by year end and look forward to a
similar proportional improvement in revenues and adjusted gross
margins (excluding depreciation), setting the company up for what
we expect to be a profitable future as a subsidiary of Tecogen
Inc."
Reflecting upon the Company's ongoing efforts to optimize its
On-Site Utility business, On-Site Utility gross margin excluding
depreciation improved in the first quarter of 2017 to 31.4% versus
25.2% for the same period in 2016, a 6.2 percentage point
improvement in gross margin resulting in a 25% improvement in
adjusted gross margin.
In addition, the Company delivered a cash flow positive quarter
on an adjusted EBITDA cash flow basis (as defined below), with
inflows of $23,532 for the first
quarter of 2017 as compared to outflows of $42,679 in the comparable prior year period.
Chief Financial Officer Bonnie
Brown observed, "With the elimination of the remaining
balance of the convertible debt at year end 2016, the Company
enjoyed a significant improvement in leverage ratios and reduction
in interest expense in the first quarter of 2017. This benefit was
partially offset by the mark-to-market decline in the value of our
remaining stake in EuroSite Power Inc. following that company's
decision to de-list their shares at year end 2016. We will continue
to evaluate best uses of capital going forward and position our
balance sheet to support ongoing improvement in the operations of
the Company."
Major Highlights:
Consolidated Financial Results
- Our revenues increased to $1,718,164 for the first quarter of 2017 compared
to $1,514,449 for the same period in
2016, an increase of $203,715 or
13.5%.
- On-Site Utility Energy revenues in the first quarter of 2017
was $1,627,498 compared to
$1,364,285 for the same period in
2016, an increase of $263,213 or
19.3%, due to the increase in production and demand billing.
- During the first quarter of 2017, our gross margins were 3.6%
compared to 1.7% for the same period in 2016, an improvement of
118.5%, reflecting the ongoing benefit from reductions in fuel and
maintenance costs as a percentage of sales.
- Costs associated with the sale of our energy revenues was
$1,116,305 for the first quarter of
2017 and $1,020,713 for the first
quarter of 2016. As a result, On-Site Utility Energy gross margins,
excluding depreciation, were 31.4% in the first quarter of 2017,
compared to 25.2% for the same period in 2016, an improvement of
24.6% quarter over quarter.
- Overall operating expenses increased to $599,077 for the first quarter of 2017 versus
$559,164 for the same period in 2016,
a 7.1% increase or $39,913 due to
higher legal expense related to the planned merger with Tecogen
Inc.
- As a result of our focused efforts to improve fleet operations,
adjusted EBITDA cash flows (as defined below) improved by
$66,211, reaching a positive "inflow"
of $23,532 for the first quarter of
2017, versus an "outflow" of $42,679
for the same period in 2016.
- The loss from operations in the first quarter of 2017 was
$536,852 compared to a loss of
$534,057 for the same period in 2016,
a slight increase of $2,795 or
0.5%.
- During the first quarter of 2017 certain inventory items
amounting to $946,883 were sold to
Tecogen Inc. to raise cash following the repayment of the
convertible debt at the end of 2016. The net transaction, with
income offset by carrying value had no impact on the Q1 2017
financial statements.
- Our GAAP cash flow from operations was a positive $1.047 million compared to a negative
$893 thousand, a substantial
improvement of $1.941 million,
quarter over quarter, with the sale of inventory items to Tecogen
Inc. accounting for about half of this improvement.
Operations
- Improved efficiencies resulted in a 5% reduction of maintenance
costs for our fleet and a 1% reduction in fuel costs quarter over
quarter.
- Overall energy production (thermal and electrical) for the
first quarter of 2017 increased by 19% compared to the same period
in 2016.
- The Company is continuing to implement its program to upgrade
electrical metering such that we can accurately measure the CHP
system's benefit in reducing site peak electrical demand. By
measuring this portion of site savings accurately, the company is
eligible to collect revenue proportional to this savings. With
eighty percent of the sites upgraded to date, the Company grew
first quarter revenue attributed to demand savings by 74.3% over
the prior year period, to $83,739 in
the current year quarter as compared to $48,050 for the first quarter of 2016. We expect
further site upgrade work to bring similar proportional growth in
revenues.
- Electric rates, used as the basis for customer invoicing,
increased on average 2.6% for the first quarter of 2017 when
compared to the same period in 2016. Gas prices increased slightly
by 0.5% quarter over quarter. This proportionally increases the
value of our energy produced with a minimal negative offset
relative to fuel costs.
- In total, as of March 31, 2017, we operated 92 systems
totaling 5,445 kW of installed capacity.
- Revenue for the quarter was attributable to the following core
markets:
|
Fitness
|
19
|
%
|
|
Hospitality
|
12
|
%
|
|
Housing
|
27
|
%
|
|
Education
|
13
|
%
|
|
Healthcare
|
22
|
%
|
|
Other
|
7
|
%
|
|
Total
|
100
|
%
|
- The revenue was distributed by energy type as is outlined in
the following table:
|
Electricity
|
58
|
%
|
|
Thermal
|
42
|
%
|
|
Cooling
|
—
|
%
|
|
Total
|
100
|
%
|
American DG Energy will hold its earnings conference call today,
May 11, 2017 at 1:00 p.m. Eastern
Time. To listen, dial (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. We suggest you begin dialing at least 10 minutes before the
scheduled starting time. Alternately, to register for and listen to
the live webcast, please go to
http://investors.americandg.com/webcast.
The earnings conference call will be recorded and available for
playback one hour after the end of the call through Thursday, May 18, 2017. To listen to the
playback, dial (877) 344-7529 within the U.S. (855) 669-9658
from Canada, or +1 (412) 317-0088
from other international locations and reference Replay Access Code
10105521. 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.
|
AMERICAN DG ENERGY
INC.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
|
March 31,
2017
|
|
December 31,
2016
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,127,252
|
|
|
$
|
338,627
|
|
|
Accounts receivable,
net
|
778,044
|
|
|
815,748
|
|
|
Unbilled
revenue
|
17,079
|
|
|
18,797
|
|
|
Due from related
party
|
71,468
|
|
|
87,845
|
|
|
Inventory
|
109,823
|
|
|
128,680
|
|
|
Assets held for
sale
|
—
|
|
|
946,883
|
|
|
Prepaid and other
current assets
|
356,496
|
|
|
299,667
|
|
|
Total current
assets
|
2,460,162
|
|
|
2,636,247
|
|
|
Property and
equipment, net
|
15,548,797
|
|
|
15,831,160
|
|
|
Investment
securities
|
519,568
|
|
|
637,651
|
|
|
TOTAL
ASSETS
|
$
|
18,528,527
|
|
|
$
|
19,105,058
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
|
257,100
|
|
|
$
|
270,078
|
|
|
Accrued expenses and
other current liabilities
|
635,238
|
|
|
522,525
|
|
|
Due to related
party
|
183,030
|
|
|
127,904
|
|
|
Total current
liabilities
|
1,075,368
|
|
|
920,507
|
|
|
Long-term
liabilities:
|
|
|
|
|
Loan due to related
party
|
850,000
|
|
|
850,000
|
|
|
Total
liabilities
|
1,925,368
|
|
|
1,770,507
|
|
|
Commitments and
contingencies (Note 8)
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
American DG Energy
Inc. stockholders' equity:
|
|
|
|
|
Common stock, $0.001
par value; 100,000,000 shares authorized; 50,684,095 issued and
outstanding at March 31, 2017 and December 31, 2016,
respectively
|
50,684
|
|
|
50,684
|
|
|
Additional paid-in
capital
|
58,852,221
|
|
|
58,823,704
|
|
|
Accumulated other
comprehensive loss-investment securities
|
(254,931)
|
|
|
(136,848)
|
|
|
Accumulated
deficit
|
(42,025,342)
|
|
|
(41,381,221)
|
|
|
Total American DG
Energy Inc. stockholders' equity
|
16,622,632
|
|
|
17,356,319
|
|
|
Noncontrolling
interest
|
(19,473)
|
|
|
(21,768)
|
|
|
Total stockholders'
equity
|
16,603,159
|
|
|
17,334,551
|
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
|
18,528,527
|
|
|
$
|
19,105,058
|
|
|
AMERICAN DG ENERGY
INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
|
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
March 31,
2017
|
|
March 31,
2016
|
|
Revenues
|
|
|
|
|
Energy
revenues
|
$
|
1,627,498
|
|
|
$
|
1,364,285
|
|
|
Turnkey & other
revenues
|
90,666
|
|
|
150,164
|
|
|
1,718,164
|
|
|
1,514,449
|
|
|
Cost of
sales
|
|
|
|
|
Fuel, maintenance and
installation
|
1,131,104
|
|
|
1,051,261
|
|
|
Depreciation
expense
|
524,835
|
|
|
438,081
|
|
|
1,655,939
|
|
|
1,489,342
|
|
|
Gross
profit
|
62,225
|
|
|
25,107
|
|
|
Operating
expenses
|
|
|
|
|
General and
administrative
|
442,795
|
|
|
377,638
|
|
|
Selling
|
1,704
|
|
|
20,524
|
|
|
Engineering
|
154,578
|
|
|
161,002
|
|
|
599,077
|
|
|
559,164
|
|
|
Loss from
operations
|
(536,852)
|
|
|
(534,057)
|
|
|
|
|
|
|
Other income
(expense), net
|
|
|
|
|
Interest and other
income
|
4,716
|
|
|
12,715
|
|
|
Interest
expense
|
(13,215)
|
|
|
(324,332)
|
|
|
(8,499)
|
|
|
(311,617)
|
|
|
Loss from continuing
operations before provision for income taxes
|
(545,351)
|
|
|
(845,674)
|
|
|
Provision for income
taxes
|
(87,365)
|
|
|
(66,427)
|
|
|
Loss from continuing
operations
|
(632,716)
|
|
|
(912,101)
|
|
|
Income attributable
to the noncontrolling interest
|
(11,405)
|
|
|
(1,036)
|
|
|
Loss attributable to
American DG Energy Inc. from continuing operations
|
(644,121)
|
|
|
(913,137)
|
|
|
Loss from
discontinued operations (Note 4)
|
—
|
|
|
(188,058)
|
|
|
Net loss attributable
to American DG Energy Inc.
|
(644,121)
|
|
|
(1,101,195)
|
|
|
Other comprehensive
loss - unrealized loss on securities
|
(118,083)
|
|
|
—
|
|
|
Comprehensive
loss
|
$
|
(762,204)
|
|
|
$
|
(1,101,195)
|
|
|
|
|
|
|
Loss per share from
continuing operations attributable to American DG Energy Inc. -
basic and diluted
|
$
|
(0.01)
|
|
|
$
|
(0.02)
|
|
|
Loss per share from
discontinued operations attributable to American DG Energy Inc. -
basic and diluted
|
$
|
—
|
|
|
$
|
—
|
|
|
Net loss per share -
basic and diluted
|
$
|
(0.01)
|
|
|
$
|
(0.02)
|
|
|
Weighted average
shares outstanding - basic and diluted
|
50,684,095
|
|
|
50,684,095
|
|
|
|
|
|
|
|
|
Non-GAAP financial
disclosure
|
|
|
|
|
|
|
Loss from
operations
|
$
|
(536,852)
|
|
|
$
|
(534,057)
|
|
|
Depreciation
|
531,867
|
|
|
449,075
|
|
|
Stock based
compensation
|
28,517
|
|
|
42,303
|
|
|
Adjusted EBITDA from
continuing operations
|
$
|
23,532
|
|
|
$
|
(42,679)
|
|
|
AMERICAN DG ENERGY
INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
March 31,
2017
|
|
March 31,
2016
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net loss attributable
to American DG Energy, Inc.
|
$
|
(644,121)
|
|
|
$
|
(1,101,195)
|
|
|
Income attributable
to noncontrolling interest
|
11,405
|
|
|
1,036
|
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
Depreciation
|
531,867
|
|
|
449,075
|
|
|
Loss from
discontinued operations
|
—
|
|
|
188,058
|
|
|
Amortization of
deferred financing costs
|
—
|
|
|
10,141
|
|
|
Non-cash interest
expense
|
—
|
|
|
282,072
|
|
|
Stock-based
compensation
|
28,517
|
|
|
42,303
|
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
(Increase) decrease
in:
|
|
|
|
|
Accounts receivable
and unbilled revenue
|
39,422
|
|
|
(249,147)
|
|
|
Due from related
party
|
16,377
|
|
|
(1,104)
|
|
|
Inventory
|
18,857
|
|
|
110,633
|
|
|
Assets held for
sale
|
946,883
|
|
|
—
|
|
|
Prepaid and other
current assets
|
(56,829)
|
|
|
(71,153)
|
|
|
Increase (decrease)
in:
|
|
|
|
|
Accounts
payable
|
(12,978)
|
|
|
(4,306)
|
|
|
Accrued expenses and
other current liabilities
|
112,713
|
|
|
92,226
|
|
|
Due to related
party
|
55,126
|
|
|
(641,982)
|
|
|
Net cash provided by
(used in) operating activities
|
1,047,239
|
|
|
(893,343)
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Purchases of property
and equipment
|
(249,504)
|
|
|
(529,251)
|
|
|
Net cash used in
investing activities
|
(249,504)
|
|
|
(529,251)
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Distributions to
noncontrolling interest
|
(9,110)
|
|
|
(13,258)
|
|
|
Net cash used in
financing activities
|
(9,110)
|
|
|
(13,258)
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
788,625
|
|
|
(1,435,852)
|
|
|
Cash and cash
equivalents, beginning of the period
|
338,627
|
|
|
4,999,709
|
|
|
Cash and cash
equivalents, end of the period
|
$
|
1,127,252
|
|
|
$
|
3,563,857
|
|
|
Supplemental
disclosures of cash flows information:
|
|
|
|
|
Cash paid during the
period for:
|
|
|
|
|
Income taxes
|
$
|
1,800
|
|
|
$
|
48,824
|
|
|
Non-cash investing
and financing activities:
|
|
|
|
|
Distribution of nonmonetary assets
|
$
|
—
|
|
|
$
|
340,069
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/american-dg-energy-reports-first-quarter-2017-financial-performance-300456006.html
SOURCE American DG Energy Inc.