 |  | |
| Exhibit 99.1 |
FOR IMMEDIATE RELEASE
Investor Contact: John N. Hatsopoulos American DG Energy Inc. 781.622.1120 john.hatsopoulos@americandg.com | Media Contact: Barry J. Sanders American DG Energy Inc. 781.522.6010 barry.sanders@americandg.com |
American DG Energy Reports Second Quarter 2012 Financial Performance
Backlog increases to 33 energy systems compared to 9 systems a year ago
Energy gross profit margin without depreciation increased to 39.2%
WALTHAM, Mass. – August 14, 2012 –American DG Energy Inc. (NYSE MKT: ADGE), a leadingOn-Site Utility, offering clean electricity, heat, hot water and cooling solutions to hospitality, healthcare, housing and athletic facilities, reported energy revenues of $1,136,265 in the second quarter of 2012, compared to $1,435,025 in the second quarter of 2011.
Total revenues were $1,192,957 in the second quarter of 2012, compared to $1,480,461 in the second quarter of 2011. GAAP diluted loss per share (EPS) was $(0.05) in the second quarter of 2012, compared to $(0.01) in the second quarter of 2011, and GAAP operating loss including EuroSite Power Inc. was $(1,700,779) in the second quarter of 2012, compared to operating loss of $(522,761) in the second quarter of 2011.
Major Highlights:
Operations
| · | We operated 89 energy systems compared to 77 in the second quarter of 2011. |
| · | Our current backlog consists of 33 energy systems compared to 9 in the second quarter of 2011. |
| · | We reached agreements with the following properties: |
| - | YMCA in Greenwich, Connecticut – provide a 75 kW Combined Heat and Power (CHP) system and produce space heat and hot water for their new 700,000 gallon swimming pool. |
| - | Luna Park Housing Corporation in Brooklyn, New York – provide five 100 kW CHP systems and provide all of their domestic hot water from five hot water heaters. Luna Park is a residential complex consisting of five buildings with 1,600 units and is home to approximately 6,000 residents. |
| - | Doubletree by Hilton Dunblane Hydro hotel in the United Kingdom (UK) – extended our agreement with The Ability Group by adding a contract to supply clean energy by installing and operating a CHP system which will produce up to 200 kW of power. |
| - | Cedar Court Hotel Huddersfield in Yorkshire UK –replace the hotel’s existing aged and inefficient system with a state-of-the-art 100 kW CHP system. |
| · | We began operation at the following properties: |
| - | Started operating a 100 kW CHP system at Club Fit in Jefferson Valley, New York, our second Club Fit location. |
| - | Started operating a 75 kW CHP system at Governor Paterson Towers in Governor, New Jersey, a 225 unit, 30 story senior living center. |
| - | Started operating a 100 kW CHP system at the DoubleTree Hotel in Tarrytown, New York, a 247 room full service, upscale property which is our second DoubleTree property in the US. |
American DG Energy Inc. – Second Quarter 2012 Financial Performance, page 2 of 10
| - | EuroSite Power startedoperating a highly efficient 122 kW CHP system at the Hilton Liverpool in the UK, that will produce energy in the form of electricity, space heat and domestic hot water for the hotel’s guest rooms and public areas. |
| - | EuroSite Power booked its first revenue for Abbeycroft Leisure at the Haverhill Leisure Centre in Suffolk UK. |
| · | We expanded our sales and marketing effort worldwide by adding sales people, broadening our distribution and geographic reach and implementing marketing programs targeting potential customers, especially large property owners. |
Financial
| · | Our energy revenue decreased by 20.8% in the second quarter of 2012 compared to the same period in 2011, due to lower natural gas and electricutility rates that significantly decreased during the second quarter of 2012 compared to the same period in 2011. |
| · | Energy gross profit margin without depreciation increased to 39.2% compared to 38.3% in the second quarter of 2011. |
| · | Our total energy production decreased to 15,798,668 kWh, or 9.5%, compared to 17,457,971 kWh in the second quarter of 2011 due tothe decrease in output because of milder temperatures requiring less heat and hot water during the period. |
| · | We received $260,701 in rebates and incentives during the second quarter. |
| · | Our total cash outflows were $702,275, of which $382,860 were related to expenses at EuroSite Power and the remaining $319,415 were related to the expansion of sales and marketing activity at American DG Energy. |
| · | The total value of our current On-Site Utility energy agreements is approximately $236.0 million. |
| · | We finished the quarter with approximately $15.7 million in cash. |
Recent Highlights:
American DG Energy will hold its earnings conference call today, August 14, 2012 at 10:00 a.m. Eastern Time. To listen, call (800) 860-2442 within the U.S, (866) 605-3852 from Canada or (412) 858-4600 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 our web site atwww.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 Tuesday, September 14, 2012 at 9:00 a.m. Eastern Time. 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 10017224.
The earnings conference call will be webcast live. To register for and listen to the webcast, go towww.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. 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 Inc. – Second Quarter 2012 Financial Performance, page 3 of 10
CONSOLIDATED STATEMENT OF OPERATIONS
For the Three Months Ended June 30, 2012 and June 30, 2011
| Three Months Ended | ||||||||
| June 30, | June 30, | |||||||
| 2012 | 2011 | |||||||
| (unaudited) | (unaudited) | |||||||
| Revenues | ||||||||
| Energy revenues | $ | 1,136,265 | $ | 1,435,025 | ||||
| Turnkey & other revenues | 56,692 | 45,436 | ||||||
| 1,192,957 | 1,480,461 | |||||||
| Cost of sales | ||||||||
| Fuel, maintenance and installation | 694,746 | 894,928 | ||||||
| Depreciation expense | 534,888 | 314,634 | ||||||
| 1,229,634 | 1,209,562 | |||||||
| Gross profit (loss) | (36,677 | ) | 270,899 | |||||
| Operating expenses | ||||||||
| General and administrative | 614,454 | 523,503 | ||||||
| Selling | 749,383 | 104,296 | ||||||
| Engineering | 300,265 | 165,861 | ||||||
| 1,664,102 | 793,660 | |||||||
| Loss from operations | (1,700,779 | ) | (522,761 | ) | ||||
| Other income (expense), net | ||||||||
| Interest and other income | 13,682 | 8,622 | ||||||
| Interest expense | (447,477 | ) | (74,558 | ) | ||||
| Change in fair value of warrant liability | (44,602 | ) | 188,367 | |||||
| (478,397 | ) | 122,431 | ||||||
| Loss before provision for state income taxes | (2,179,176 | ) | (400,330 | ) | ||||
| Benefit (provision) for state income taxes | 7,140 | (5,509 | ) | |||||
| Consolidated net loss | (2,172,036 | ) | (405,839 | ) | ||||
| (Income) loss attributable to the noncontrolling interest | 60,764 | (19,145 | ) | |||||
| Net loss attributable to American DG Energy Inc. | $ | (2,111,272 | ) | $ | (424,984 | ) | ||
| Net loss per share - basic and diluted | $ | (0.05 | ) | $ | (0.01 | ) | ||
| Weighted average shares outstanding - | ||||||||
| basic and diluted | 46,639,141 | 45,578,201 | ||||||
| Non-GAAP financial disclosure | ||||||||
| Loss from operations | $ | (1,700,779 | ) | $ | (522,761 | ) | ||
| Depreciation expense | 548,673 | 324,889 | ||||||
| Stock based compensation | 189,130 | 124,834 | ||||||
| Adjusted EBITDA | (962,976 | ) | (73,038 | ) | ||||
| Grants from rebates and incentives | 260,701 | 219,589 | ||||||
| Total EBITDA cash (outflows) inflows | $ | (702,275 | ) | $ | 146,551 | |||
American DG Energy Inc. – Second Quarter 2012 Financial Performance, page 4 of 10
CONSOLIDATED STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2012 and June 30, 2011
| Six Months Ended | ||||||||
| June 30, | June 30, | |||||||
| 2012 | 2011 | |||||||
| (unaudited) | (unaudited) | |||||||
| Revenues | ||||||||
| Energy revenues | $ | 2,587,834 | $ | 2,881,177 | ||||
| Turnkey & other revenues | 107,525 | 254,004 | ||||||
| 2,695,359 | 3,135,181 | |||||||
| Cost of sales | ||||||||
| Fuel, maintenance and installation | 1,697,558 | 2,082,927 | ||||||
| Depreciation expense | 829,584 | 603,028 | ||||||
| 2,527,142 | 2,685,955 | |||||||
| Gross profit | 168,217 | 449,226 | ||||||
| Operating expenses | ||||||||
| General and administrative | 1,445,323 | 1,024,623 | ||||||
| Selling | 1,044,335 | 233,950 | ||||||
| Engineering | 580,077 | 314,266 | ||||||
| 3,069,735 | 1,572,839 | |||||||
| Loss from operations | (2,901,518 | ) | (1,123,613 | ) | ||||
| Other income (expense) | ||||||||
| Interest and other income | 26,440 | 19,981 | ||||||
| Interest expense | (741,033 | ) | (103,604 | ) | ||||
| Change in fair value of warrant liability | (261,336 | ) | 383,995 | |||||
| (975,929 | ) | 300,372 | ||||||
| Loss before provision for state income taxes | (3,877,447 | ) | (823,241 | ) | ||||
| Provision for state income taxes | (11,962 | ) | (17,112 | ) | ||||
| Consolidated net loss | (3,889,409 | ) | (840,353 | ) | ||||
| (Income) loss attributable to the noncontrolling interest | 70,751 | (63,542 | ) | |||||
| Net loss attributable to American DG Energy Inc. | $ | (3,818,658 | ) | $ | (903,895 | ) | ||
| Net loss per share - basic and diluted | $ | (0.08 | ) | $ | (0.02 | ) | ||
| Weighted average shares outstanding - | ||||||||
| basic and diluted | 46,191,967 | 45,551,891 | ||||||
| Non-GAAP financial disclosure | ||||||||
| Loss from operations | $ | (2,901,518 | ) | $ | (1,123,613 | ) | ||
| Depreciation expense | 857,224 | 622,383 | ||||||
| Stock based compensation | 379,857 | 292,245 | ||||||
| Adjusted EBITDA | (1,664,437 | ) | (208,985 | ) | ||||
| Grants from rebates and incentives | 260,701 | 327,138 | ||||||
| Total EBITDA cash (outflows) inflows | $ | (1,403,736 | ) | $ | 118,153 | |||
American DG Energy Inc. – Second Quarter 2012 Financial Performance, page 5 of 10
CONSOLIDATING STATEMENT OF OPERATIONS
For the Three Months Ended June 30, 2012
(unaudited)
| Three Months Ended June 30, 2012 | ||||||||||||||||
| American DG | EuroSite | |||||||||||||||
| Energy* | Power | Eliminations | Total | |||||||||||||
| Revenues | ||||||||||||||||
| Energy revenues | $ | 1,136,265 | $ | - | $ | - | $ | 1,136,265 | ||||||||
| Turnkey & other revenues | 29,098 | 27,594 | - | 56,692 | ||||||||||||
| 1,165,363 | 27,594 | - | 1,192,957 | |||||||||||||
| Cost of sales | ||||||||||||||||
| Fuel, maintenance and installation | 674,642 | 20,104 | - | 694,746 | ||||||||||||
| Depreciation expense | 534,888 | - | - | 534,888 | ||||||||||||
| 1,209,530 | 20,104 | - | 1,229,634 | |||||||||||||
| Gross profit (loss) | (44,167 | ) | 7,490 | - | (36,677 | ) | ||||||||||
| Operating expenses | ||||||||||||||||
| General and administrative | 417,809 | 196,645 | - | 614,454 | ||||||||||||
| Selling | 466,938 | 282,445 | - | 749,383 | ||||||||||||
| Engineering | 266,273 | 33,992 | - | 300,265 | ||||||||||||
| 1,151,020 | 513,082 | - | 1,664,102 | |||||||||||||
| Loss from operations | (1,195,187 | ) | (505,592 | ) | - | (1,700,779 | ) | |||||||||
| Other income (expense), net | ||||||||||||||||
| Interest and other income | 9,509 | 4,173 | - | 13,682 | ||||||||||||
| Interest expense (non-cash) | (447,477 | ) | - | - | (447,477 | ) | ||||||||||
| Change in fair value of warrant liability (non-cash) | (44,602 | ) | - | - | (44,602 | ) | ||||||||||
| (482,570 | ) | 4,173 | - | (478,397 | ) | |||||||||||
| Loss before provision for state income taxes | (1,677,757 | ) | (501,419 | ) | - | (2,179,176 | ) | |||||||||
| Benefit (provision) for state income taxes | 7,140 | - | - | 7,140 | ||||||||||||
| Consolidated net loss | (1,670,617 | ) | (501,419 | ) | - | (2,172,036 | ) | |||||||||
| (Income) loss attributable to the noncontrolling interest | (25,589 | ) | - | 86,353 | 60,764 | |||||||||||
| Net loss attributable to American DG Energy Inc. | $ | (1,696,206 | ) | $ | (501,419 | ) | $ | 86,353 | $ | (2,111,272 | ) | |||||
| Net loss per share - basic and diluted | $ | (0.04 | ) | $ | (0.05 | ) | ||||||||||
| Weighted average shares outstanding - | ||||||||||||||||
| basic and diluted | 46,639,141 | 46,639,141 | ||||||||||||||
| Non-GAAP financial disclosure | ||||||||||||||||
| Loss from operations | $ | (1,195,187 | ) | $ | (505,592 | ) | $ | - | $ | (1,700,779 | ) | |||||
| Depreciation expense | 547,963 | 710 | - | 548,673 | ||||||||||||
| Stock based compensation | 67,108 | 122,022 | - | 189,130 | ||||||||||||
| Adjusted EBITDA | (580,116 | ) | (382,860 | ) | - | (962,976 | ) | |||||||||
| Grants from rebates and incentives | 260,701 | - | - | 260,701 | ||||||||||||
| Total EBITDA cash outflows | $ | (319,415 | ) | $ | (382,860 | ) | $ | - | $ | (702,275 | ) | |||||
*American DG Energy includes related LLC.
American DG Energy Inc. – Second Quarter 2012 Financial Performance, page 6 of 10
CONSOLIDATING STATEMENT OF OPERATIONS
For the Three Months Ended June 30, 2011
(unaudited)
| Three Months Ended June 30, 2011 | ||||||||||||||||
| American DG | EuroSite | |||||||||||||||
| Energy* | Power | Eliminations | Total | |||||||||||||
| Revenues | ||||||||||||||||
| Energy revenues | $ | 1,435,025 | $ | - | $ | - | $ | 1,435,025 | ||||||||
| Turnkey & other revenues | 45,436 | - | - | 45,436 | ||||||||||||
| 1,480,461 | - | - | 1,480,461 | |||||||||||||
| Cost of sales | ||||||||||||||||
| Fuel, maintenance and installation | 894,928 | - | - | 894,928 | ||||||||||||
| Depreciation expense | 314,634 | - | - | 314,634 | ||||||||||||
| 1,209,562 | - | - | 1,209,562 | |||||||||||||
| Gross profit (loss) | 270,899 | - | - | 270,899 | ||||||||||||
| Operating expenses | ||||||||||||||||
| General and administrative | 341,422 | 182,081 | - | 523,503 | ||||||||||||
| Selling | 104,296 | - | - | 104,296 | ||||||||||||
| Engineering | 165,861 | - | - | 165,861 | ||||||||||||
| 611,579 | 182,081 | - | 793,660 | |||||||||||||
| Loss from operations | (340,680 | ) | (182,081 | ) | - | (522,761 | ) | |||||||||
| Other income (expense), net | ||||||||||||||||
| Interest and other income | 8,622 | - | - | 8,622 | ||||||||||||
| Interest expense (non-cash) | (74,558 | ) | - | - | (74,558 | ) | ||||||||||
| Change in fair value of warrant liability (non-cash) | 188,367 | - | - | 188,367 | ||||||||||||
| 122,431 | - | - | 122,431 | |||||||||||||
| Loss before provision for state income taxes | (218,249 | ) | (182,081 | ) | - | (400,330 | ) | |||||||||
| Benefit (provision) for state income taxes | (5,509 | ) | - | - | (5,509 | ) | ||||||||||
| Consolidated net loss | (223,758 | ) | (182,081 | ) | - | (405,839 | ) | |||||||||
| (Income) loss attributable to the noncontrolling interest | (48,105 | ) | - | 28,960 | (19,145 | ) | ||||||||||
| Net loss attributable to American DG Energy Inc. | $ | (271,863 | ) | $ | (182,081 | ) | $ | 28,960 | $ | (424,984 | ) | |||||
| Net loss per share - basic and diluted | $ | (0.01 | ) | $ | (0.01 | ) | ||||||||||
| Weighted average shares outstanding - | ||||||||||||||||
| basic and diluted | 45,578,201 | 45,578,201 | ||||||||||||||
| Non-GAAP financial disclosure | ||||||||||||||||
| Loss from operations | $ | (340,680 | ) | $ | (182,081 | ) | $ | - | $ | (522,761 | ) | |||||
| Depreciation expense | 324,889 | - | - | 324,889 | ||||||||||||
| Stock based compensation | 15,078 | 109,756 | - | 124,834 | ||||||||||||
| Adjusted EBITDA | (713 | ) | (72,325 | ) | - | (73,038 | ) | |||||||||
| Grants from rebates and incentives | 219,589 | - | - | 219,589 | ||||||||||||
| Total EBITDA cash outflows | $ | 218,876 | $ | (72,325 | ) | $ | - | $ | 146,551 | |||||||
*American DG Energy includes related LLC.
American DG Energy Inc. – Second Quarter 2012 Financial Performance, page 7 of 10
CONSOLIDATING STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2012
(unaudited)
| Six Months Ended June 30, 2012 | ||||||||||||||||
| American DG | EuroSite | |||||||||||||||
| Energy* | Power | Eliminations | Total | |||||||||||||
| Revenues | ||||||||||||||||
| Energy revenues | $ | 2,587,834 | $ | - | $ | - | $ | 2,587,834 | ||||||||
| Turnkey & other revenues | 79,931 | 27,594 | - | 107,525 | ||||||||||||
| 2,667,765 | 27,594 | - | 2,695,359 | |||||||||||||
| Cost of sales | ||||||||||||||||
| Fuel, maintenance and installation | 1,677,454 | 20,104 | - | 1,697,558 | ||||||||||||
| Depreciation expense | 828,874 | 710 | - | 829,584 | ||||||||||||
| 2,506,328 | 20,814 | - | 2,527,142 | |||||||||||||
| Gross profit | 161,437 | 6,780 | - | 168,217 | ||||||||||||
| Operating expenses | ||||||||||||||||
| General and administrative | 933,143 | 512,180 | - | 1,445,323 | ||||||||||||
| Selling | 686,423 | 357,912 | - | 1,044,335 | ||||||||||||
| Engineering | 546,085 | 33,992 | - | 580,077 | ||||||||||||
| 2,165,651 | 904,084 | - | 3,069,735 | |||||||||||||
| Loss from operations | (2,004,214 | ) | (897,304 | ) | - | (2,901,518 | ) | |||||||||
| Other income (expense), net | ||||||||||||||||
| Interest and other income | 17,299 | 9,141 | - | 26,440 | ||||||||||||
| Interest expense (non-cash) | (741,033 | ) | - | - | (741,033 | ) | ||||||||||
| Change in fair value of warrant liability (non-cash) | (261,336 | ) | - | - | (261,336 | ) | ||||||||||
| (985,070 | ) | 9,141 | - | (975,929 | ) | |||||||||||
| Loss before provision for state income taxes | (2,989,284 | ) | (888,163 | ) | - | (3,877,447 | ) | |||||||||
| Provision for state income taxes | (11,962 | ) | - | - | (11,962 | ) | ||||||||||
| Consolidated net loss | (3,001,246 | ) | (888,163 | ) | - | (3,889,409 | ) | |||||||||
| (Income) loss attributable to the noncontrolling interest | (82,206 | ) | - | 152,957 | 70,751 | |||||||||||
| Net loss attributable to American DG Energy Inc. | $ | (3,083,452 | ) | $ | (888,163 | ) | $ | 152,957 | $ | (3,818,658 | ) | |||||
| Net loss per share - basic and diluted | $ | (0.07 | ) | $ | (0.08 | ) | ||||||||||
| Weighted average shares outstanding - | ||||||||||||||||
| basic and diluted | 46,191,967 | 46,191,967 | ||||||||||||||
| Non-GAAP financial disclosure | ||||||||||||||||
| Loss from operations | $ | (2,004,214 | ) | $ | (897,304 | ) | $ | - | $ | (2,901,518 | ) | |||||
| Depreciation expense | 856,514 | 710 | - | 857,224 | ||||||||||||
| Stock based compensation | 127,865 | 251,992 | - | 379,857 | ||||||||||||
| Adjusted EBITDA | (1,019,835 | ) | (644,602 | ) | - | (1,664,437 | ) | |||||||||
| Grants from rebates and incentives | 260,701 | - | - | 260,701 | ||||||||||||
| Total EBITDA cash outflows | $ | (759,134 | ) | $ | (644,602 | ) | $ | - | $ | (1,403,736 | ) | |||||
*American DG Energy includes related LLC.
American DG Energy Inc. – Second Quarter 2012 Financial Performance, page 8 of 10
CONSOLIDATING STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2011
(unaudited)
| Six Months Ended June 30, 2011 | ||||||||||||||||
| American DG | EuroSite | |||||||||||||||
| Energy* | Power | Eliminations | Total | |||||||||||||
| Revenues | ||||||||||||||||
| Energy revenues | $ | 2,881,177 | $ | - | $ | - | $ | 2,881,177 | ||||||||
| Turnkey & other revenues | 254,004 | - | - | 254,004 | ||||||||||||
| 3,135,181 | - | - | 3,135,181 | |||||||||||||
| Cost of sales | ||||||||||||||||
| Fuel, maintenance and installation | 2,082,927 | - | - | 2,082,927 | ||||||||||||
| Depreciation expense | 603,028 | - | - | 603,028 | ||||||||||||
| 2,685,955 | - | - | 2,685,955 | |||||||||||||
| Gross profit | 449,226 | - | - | 449,226 | ||||||||||||
| Operating expenses | ||||||||||||||||
| General and administrative | 704,507 | 320,116 | - | 1,024,623 | ||||||||||||
| Selling | 233,950 | - | - | 233,950 | ||||||||||||
| Engineering | 314,266 | - | - | 314,266 | ||||||||||||
| 1,252,723 | 320,116 | - | 1,572,839 | |||||||||||||
| Loss from operations | (803,497 | ) | (320,116 | ) | - | (1,123,613 | ) | |||||||||
| Other income (expense), net | ||||||||||||||||
| Interest and other income | 19,981 | - | - | 19,981 | ||||||||||||
| Interest expense (non-cash) | (103,604 | ) | - | - | (103,604 | ) | ||||||||||
| Change in fair value of warrant liability (non-cash) | 383,995 | - | - | 383,995 | ||||||||||||
| 300,372 | - | - | 300,372 | |||||||||||||
| Loss before provision for state income taxes | (503,125 | ) | (320,116 | ) | - | (823,241 | ) | |||||||||
| Provision for state income taxes | (17,112 | ) | - | - | (17,112 | ) | ||||||||||
| Consolidated net loss | (520,237 | ) | (320,116 | ) | - | (840,353 | ) | |||||||||
| (Income) loss attributable to the noncontrolling interest | (119,307 | ) | - | 55,765 | (63,542 | ) | ||||||||||
| Net loss attributable to American DG Energy Inc. | $ | (639,544 | ) | $ | (320,116 | ) | $ | 55,765 | $ | (903,895 | ) | |||||
| Net loss per share - basic and diluted | $ | (0.01 | ) | $ | (0.02 | ) | ||||||||||
| Weighted average shares outstanding - | ||||||||||||||||
| basic and diluted | 45,551,891 | 45,551,891 | ||||||||||||||
| Non-GAAP financial disclosure | ||||||||||||||||
| Loss from operations | $ | (803,497 | ) | $ | (320,116 | ) | $ | - | $ | (1,123,613 | ) | |||||
| Depreciation expense | 622,383 | - | - | 622,383 | ||||||||||||
| Stock based compensation | 92,194 | 200,051 | - | 292,245 | ||||||||||||
| Adjusted EBITDA | (88,920 | ) | (120,065 | ) | - | (208,985 | ) | |||||||||
| Grants from rebates and incentives | 327,138 | - | - | 327,138 | ||||||||||||
| Total EBITDA cash outflows | $ | 238,218 | $ | (120,065 | ) | $ | - | $ | 118,153 | |||||||
*American DG Energy includes related LLC.
American DG Energy Inc. – Second Quarter 2012 Financial Performance, page 9 of 10
CONSOLIDATED BALANCE SHEETS
As of June 30, 2012 and December 31, 2011 (unaudited)
| June 30, | December 31, | |||||||
| 2012 | 2011 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 15,679,354 | $ | 17,801,025 | ||||
| Accounts receivable, net | 860,965 | 879,630 | ||||||
| Unbilled revenue | 15,910 | 18,825 | ||||||
| Due from related party | 68,500 | 21,140 | ||||||
| Inventory | 1,125,238 | 634,120 | ||||||
| Prepaid and other current assets | 381,289 | 322,276 | ||||||
| Total current assets | 18,131,256 | 19,677,016 | ||||||
| Property, plant and equipment, net | 14,766,580 | 14,690,117 | ||||||
| Accounts receivable, long-term | 111,864 | 82,664 | ||||||
| Other assets, long-term | 52,328 | 53,504 | ||||||
| TOTAL ASSETS | $ | 33,062,028 | $ | 34,503,301 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 485,679 | $ | 520,608 | ||||
| Accrued expenses and other current liabilities | 670,693 | 589,032 | ||||||
| Due to related party | 581,333 | 313,847 | ||||||
| Capital lease obligations | 3,365 | 3,365 | ||||||
| Total current liabilities | 1,741,070 | 1,426,852 | ||||||
| Long-term liabilities: | ||||||||
| Convertible debentures | 19,400,000 | 19,400,000 | ||||||
| Warrant liability | 510,897 | 249,561 | ||||||
| Capital lease obligations, long-term | 1,683 | 3,365 | ||||||
| Other long-term liabilities | 36,248 | 43,052 | ||||||
| Total liabilities | 21,689,898 | 21,122,830 | ||||||
| Stockholders’ equity: | ||||||||
| American DG Energy Inc. shareholders’ equity: | ||||||||
| Common stock, $0.001 par value; 100,000,000 shares | ||||||||
| authorized; 46,908,460 and 46,001,404 issued and outstanding | ||||||||
| at June 30, 2012 and December 31, 2011, respectively | 46,908 | 46,001 | ||||||
| Additional paid-in capital | 32,380,226 | 30,399,370 | ||||||
| Accumulated deficit | (21,749,716 | ) | (17,931,058 | ) | ||||
| Total American DG Energy Inc. stockholders’ equity | 10,677,418 | 12,514,313 | ||||||
| Noncontrolling interest | 694,712 | 866,158 | ||||||
| Total stockholders’ equity | 11,372,130 | 13,380,471 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 33,062,028 | $ | 34,503,301 | ||||
American DG Energy Inc. – Second Quarter 2012 Financial Performance, page 10 of 10
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Six Months Ended June 30, 2012 and June 30, 2011
| Six Months Ended | ||||||||
| June 30, | June 30, | |||||||
| 2012 | 2011 | |||||||
| (unaudited) | (unaudited) | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (3,818,658 | ) | $ | (903,895 | ) | ||
| Income (loss) attributable to noncontrolling interest | (70,751 | ) | 63,542 | |||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 857,224 | 622,383 | ||||||
| Provision for losses on accounts receivable | 74,291 | 1,712 | ||||||
| Amortization of deferred financing costs | 1,176 | 2,256 | ||||||
| Increase (decrease) in fair value of warrant liability | 261,336 | (383,995 | ) | |||||
| Noncash interest expense | 712,921 | - | ||||||
| Stock-based compensation | 379,857 | 292,245 | ||||||
| Changes in operating assets and liabilities | ||||||||
| (Increase) decrease in: | ||||||||
| Restricted cash | - | 65,790 | ||||||
| Accounts receivable and unbilled revenue | (81,911 | ) | (284,903 | ) | ||||
| Due from related party | (47,360 | ) | (26,802 | ) | ||||
| Inventory | (491,118 | ) | (67,634 | ) | ||||
| Prepaid and other current assets | (59,013 | ) | (58,590 | ) | ||||
| Increase (decrease) in: | ||||||||
| Accounts payable | (34,929 | ) | 35,958 | |||||
| Accrued expenses and other current liabilities | 81,661 | (47,441 | ) | |||||
| Due to related party | 267,486 | 49,856 | ||||||
| Other long-term liabilities | (6,804 | ) | (48,484 | ) | ||||
| Net cash used in operating activities | (1,974,592 | ) | (688,002 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchases of property and equipment | (933,687 | ) | (1,017,742 | ) | ||||
| Net cash used in investing activities | (933,687 | ) | (1,017,742 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from issuance of convertible debentures | - | 10,100,000 | ||||||
| Proceeds from sale of common stock, net of costs | 1,560,000 | - | ||||||
| Proceeds from sale of subsidiary common stock, net of costs | - | 1,238,401 | ||||||
| Proceeds from exercise of stock options | 114,882 | 26,798 | ||||||
| Proceeds from issuance of common stock warrants | 7,500 | - | ||||||
| Purchases of common stock, net of costs | (750,000 | ) | - | |||||
| Principal payments on capital lease obligations | (1,682 | ) | (1,682 | ) | ||||
| Cancellation of restricted stock | - | (20 | ) | |||||
| Distributions to noncontrolling interest | (144,092 | ) | (171,461 | ) | ||||
| Net cash provided by financing activities | 786,608 | 11,192,036 | ||||||
| Net increase in cash and cash equivalents | (2,121,671 | ) | 9,486,292 | |||||
| Cash and cash equivalents, beginning of the period | 17,801,025 | 3,921,054 | ||||||
| Cash and cash equivalents, end of the period | $ | 15,679,354 | $ | 13,407,346 | ||||