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 Third Quarter 2012 Financial Performance
Current backlog increases to 39 energy systems compared to 8 systems a year ago
WALTHAM, Mass. – November 14, 2012 – 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 athletic facilities, reported energy revenues of $1,337,831 in the third quarter of 2012, compared to $1,389,159 in the third quarter of 2011.
Total revenues were $1,400,255 in the third quarter of 2012, compared to $1,418,411 in the third quarter of 2011. GAAP diluted loss per share (EPS) was $(0.03) in the third quarter of 2012, compared to $(0.02) in the third quarter of 2011, and GAAP operating loss including EuroSite Power Inc. was $(900,282) in the third quarter of 2012, compared to operating loss of $(1,132,620) in the third quarter of 2011.
Major Highlights:
Operations
| |
| • | We operated 90 energy systems compared to 79 in the third quarter of 2011. |
| |
| • | Our current backlog consists of 39 energy systems compared to 8 in the third quarter of 2011. |
| |
| • | We reached agreements with the following properties: |
| |
| • | Luna Park Housing Corporation in Brooklyn, New York – to provide five 100 kW Combined Heat and Power (CHP) systems and five hot water heaters for their domestic hot water. |
| |
| • | Cumberland County Jail, Portland, Maine – to provide two 75 kW CHP systems and produce space heat, hot water and electricity within the County Jail complex. |
| |
| • | Doral Arrowwood Hotel Conference Center, Rye Brook, New York – to provide two 450-ton chillers for their central plant cooling systems. |
| |
| • | Wentworth Club, Surrey, United Kingdom – to provide two 100 kW CHP systems at the Tennis & Health Club and at the main Clubhouse. |
| |
| • | Best Western, Cedar Court Hotel, Harrogate, United Kindgom – to provide a 100 kW CHP system to produce electricity, heating and domestic hot water; Cedar Court Grand Hotel & Spa, York, United Kingdom – to provide a 100 kW CHP system to produce electricity, heating and domestic hot water. |
| |
| • | Roko Health Clubs, in Chiswick, Gillingham, Nottingham and Portsmouth, United Kingdom – to provide four 100 kW CHP systems to produce electricity, heating and domestic hot water. |
| |
| • | We began operations at the following properties: |
| |
| • | DoubleTree Hotel, Tarrytown, New York – started operating a 100 kW CHP system to supply electricity, space heat and domestic hot water. |
| |
| • | Metro YMCA, Wayne, New Jersey – started operating 450-ton chillers to supply cooling. |
| |
| • | Hilton Hotel, Liverpool, United Kingdom – started operating a 225 kW system to produce energy in the form of electricity, space heat and domestic hot water. |
| |
| • | The Hampton by Hilton, Luton, United Kingdom – started operating a CHP system to supply clean energy. |
Financial
| |
| • | Our total energy production increased to 17,271,478 kWh, or 5.9%, compared to 16,306,945 kWh in the third quarter of 2011. |
| |
| • | Utility rates for natural gas decreased over 20% during the third quarter of 2012 compared to the same period in 2011, resulting in a 3.7% energy revenue decrease. |
| |
| • | Energy gross profit margin without depreciation was 47.6% compared to 47.8% in the third quarter of 2011. |
| |
| • | EBITDA cash outflows for American DG Energy were $105,068 and for EuroSite Power were $260,677 during the third quarter of 2012. Our consolidated EBITDA cash outflow was $365,745 primarily due to expenses at EuroSite Power and the expansion of sales and marketing activity at American DG Energy. |
| |
| • | We have received a total of $542,701 in rebates and incentives in 2012. |
| |
| • | The total revenue value of our current On-Site Utility energy agreements is approximately $255 million. |
| |
| • | We finished the quarter with approximately $15.8 million in cash. |
American DG Energy will hold its earnings conference call today, November 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 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 Friday, December 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 10020269.
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. 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.
CONSOLIDATED STATEMENT OF OPERATIONS
For the Three Months Ended September 30, 2012 and September 30, 2011
|
| | | | | | | |
| | Three Months Ended |
| | September 30, 2012 | | September 30, 2011 |
| | (unaudited) | | (unaudited) |
| Revenues | |
| | |
|
| Energy revenues | $ | 1,337,831 |
| | $ | 1,389,159 |
|
| Turnkey & other revenues | 62,424 |
| | 29,252 |
|
| | 1,400,255 |
| | 1,418,411 |
|
| Cost of sales | |
| | |
|
| Fuel, maintenance and installation | 733,727 |
| | 716,806 |
|
| Depreciation expense | 301,813 |
| | 318,903 |
|
| | 1,035,540 |
| | 1,035,709 |
|
| Gross profit | 364,715 |
| | 382,702 |
|
| Operating expenses | |
| | |
|
| General and administrative | 481,707 |
| | 593,558 |
|
| Selling | 512,885 |
| | 699,898 |
|
| Engineering | 270,405 |
| | 221,866 |
|
| | 1,264,997 |
| | 1,515,322 |
|
| Loss from operations | (900,282 | ) | | (1,132,620 | ) |
| Other income (expense), net | |
| | |
|
| Interest and other income | 17,547 |
| | 11,433 |
|
| Interest expense | (293,556 | ) | | (142,772 | ) |
| Change in fair value of warrant liability | (82,293 | ) | | 125,668 |
|
| | (358,302 | ) | | (5,671 | ) |
| Loss before provision for state income taxes | (1,258,584 | ) | | (1,138,291 | ) |
| Benefit (provision) for state income taxes | (9,440 | ) | | 41 |
|
| Consolidated net loss | (1,268,024 | ) | | (1,138,250 | ) |
| Loss attributable to the noncontrolling interest | 8,534 |
| | 28,734 |
|
| Net loss attributable to American DG Energy Inc. | $ | (1,259,490 | ) | | $ | (1,109,516 | ) |
| | | | |
| Net loss per share - basic and diluted | $ | (0.03 | ) | | $ | (0.02 | ) |
| Weighted average shares outstanding - basic and diluted | 47,653,786 |
| | 45,834,904 |
|
| | | | |
| Non-GAAP financial disclosure | |
| | |
|
| Loss from operations | $ | (900,282 | ) | | $ | (1,132,620 | ) |
| Depreciation expense | 317,986 |
| | 332,368 |
|
| Stock based compensation | 216,551 |
| | 186,960 |
|
| Adjusted EBITDA | (365,745 | ) | | (613,292 | ) |
| Grants from rebates and incentives | — |
| | — |
|
| Total EBITDA cash (outflows) inflows | $ | (365,745 | ) | | $ | (613,292 | ) |
CONSOLIDATED STATEMENT OF OPERATIONS
For the Nine Months Ended September 30, 2012 and September 30, 2011
|
| | | | | | | |
| | Nine Months Ended |
| | September 30, 2012 | | September 30, 2011 |
| | (unaudited) | | (unaudited) |
| Revenues | |
| | |
|
| Energy revenues | $ | 3,925,665 |
| | $ | 4,270,336 |
|
| Turnkey & other revenues | 169,949 |
| | 283,256 |
|
| | 4,095,614 |
| | 4,553,592 |
|
| Cost of sales | |
| | |
|
| Fuel, maintenance and installation | 2,431,285 |
| | 2,799,733 |
|
| Depreciation expense | 1,131,397 |
| | 921,931 |
|
| | 3,562,682 |
| | 3,721,664 |
|
| Gross profit | 532,932 |
| | 831,928 |
|
| Operating expenses | |
| | |
|
| General and administrative | 1,927,030 |
| | 1,618,181 |
|
| Selling | 1,557,220 |
| | 933,848 |
|
| Engineering | 850,482 |
| | 536,132 |
|
| | 4,334,732 |
| | 3,088,161 |
|
| Loss from operations | (3,801,800 | ) | | (2,256,233 | ) |
| Other income (expense) | |
| | |
|
| Interest and other income | 43,987 |
| | 31,414 |
|
| Interest expense | (1,034,589 | ) | | (246,376 | ) |
| Change in fair value of warrant liability | (343,629 | ) | | 509,663 |
|
| | (1,334,231 | ) | | 294,701 |
|
| Loss before provision for state income taxes | (5,136,031 | ) | | (1,961,532 | ) |
| Provision for state income taxes | (21,402 | ) | | (17,071 | ) |
| Consolidated net loss | (5,157,433 | ) | | (1,978,603 | ) |
| (Income) loss attributable to the noncontrolling interest | 79,285 |
| | (34,808 | ) |
| Net loss attributable to American DG Energy Inc. | $ | (5,078,148 | ) | | $ | (2,013,411 | ) |
| | | | |
| Net loss per share - basic and diluted | $ | (0.11 | ) | | $ | (0.04 | ) |
| Weighted average shares outstanding - basic and diluted | 46,716,914 |
| | 45,647,265 |
|
| | | | |
| Non-GAAP financial disclosure | |
| | |
|
| Loss from operations | $ | (3,801,800 | ) | | $ | (2,256,233 | ) |
| Depreciation expense | 1,175,210 |
| | 954,751 |
|
| Stock based compensation | 596,408 |
| | 479,205 |
|
| Adjusted EBITDA | (2,030,182 | ) | | (822,277 | ) |
| Grants from rebates and incentives | 260,701 |
| | 327,138 |
|
| Total EBITDA cash (outflows) inflows | $ | (1,769,481 | ) | | $ | (495,139 | ) |
CONSOLIDATING STATEMENT OF OPERATIONS
For the Three Months Ended September 30, 2012
(unaudited)
|
| | | | | | | | | | | | | | | |
| | Three Months Ended September 30, 2012 |
| | American DG Energy* | | EuroSite Power | | Eliminations | | Total |
| Revenues | |
| | |
| | |
| | |
|
| Energy revenues | $ | 1,332,237 |
| | $ | 5,594 |
| | — |
| | $ | 1,337,831 |
|
| Turnkey & other revenues | 44,026 |
| | 18,398 |
| | — |
| | 62,424 |
|
| | 1,376,263 |
| | 23,992 |
| | — |
| | 1,400,255 |
|
| Cost of sales | | | | | | | |
| Fuel, maintenance and installation | 715,638 |
| | 18,089 |
| | — |
| | 733,727 |
|
| Depreciation expense | 301,813 |
| | — |
| | — |
| | 301,813 |
|
| | 1,017,451 |
| | 18,089 |
| | — |
| | 1,035,540 |
|
| Gross profit | 358,812 |
| | 5,903 |
| | — |
| | 364,715 |
|
| Operating expenses | | | | | | | |
| General and administrative | 278,163 |
| | 203,544 |
| | — |
| | 481,707 |
|
| Selling | 345,716 |
| | 167,169 |
| | — |
| | 512,885 |
|
| Engineering | 248,965 |
| | 21,440 |
| | — |
| | 270,405 |
|
| | 872,844 |
| | 392,153 |
| | — |
| | 1,264,997 |
|
| Loss from operations | (514,032 | ) | | (386,250 | ) | | — |
| | (900,282 | ) |
| Other income (expense), net | | | | | | | |
| Interest and other income | 14,550 |
| | 2,997 |
| | — |
| | 17,547 |
|
| Interest expense (non-cash) | (293,556 | ) | | — |
| | — |
| | (293,556 | ) |
| Change in fair value of warrant liability (non-cash) | (82,293 | ) | | — |
| | — |
| | (82,293 | ) |
| | (361,299 | ) | | 2,997 |
| | — |
| | (358,302 | ) |
| Loss before provision for state income taxes | (875,331 | ) | | (383,253 | ) | | — |
| | (1,258,584 | ) |
| Provision for state income taxes | (9,440 | ) | | — |
| | — |
| | (9,440 | ) |
| Consolidated net loss | (884,771 | ) | | (383,253 | ) | | — |
| | (1,268,024 | ) |
| (Income) loss attributable to the noncontrolling interest | (57,469 | ) | | — |
| | 66,003 |
| | 8,534 |
|
| Net loss attributable to American DG Energy Inc. | $ | (942,240 | ) | | $ | (383,253 | ) | | $ | 66,003 |
| | $ | (1,259,490 | ) |
| | | | | | | | |
| Net loss per share - basic and diluted | $ | (0.02 | ) | | | | | | $ | (0.03 | ) |
| Weighted average shares outstanding - basic and diluted | 47,653,786 |
| | | | | | 47,653,786 |
|
| | | | | | | | |
| Non-GAAP financial disclosure | | | | | | | |
| Loss from operations | $ | (514,032 | ) | | $ | (386,250 | ) | | — |
| | $ | (900,282 | ) |
| Depreciation expense | 314,435 |
| | 3,551 |
| | — |
| | 317,986 |
|
| Stock based compensation | 94,529 |
| | 122,022 |
| | — |
| | 216,551 |
|
| Adjusted EBITDA | (105,068 | ) | | (260,677 | ) | | — |
| | (365,745 | ) |
| Grants from rebates and incentives | — |
| | — |
| | — |
| | — |
|
| Total EBITDA cash outflows | $ | (105,068 | ) | | $ | (260,677 | ) | | — |
| | $ | (365,745 | ) |
*American DG Energy includes related LLC.
CONSOLIDATING STATEMENT OF OPERATIONS
For the Three Months Ended September 30, 2011
(unaudited)
|
| | | | | | | | | | | | | | | |
| | Three Months Ended September 30, 2011 |
| | American DG Energy* | | EuroSite Power | | Eliminations | | Total |
| Revenues | |
| | |
| | |
| | |
|
| Energy revenues | $ | 1,389,159 |
| | $ | — |
| | $ | — |
| | $ | 1,389,159 |
|
| Turnkey & other revenues | 29,252 |
| | — |
| | — |
| | 29,252 |
|
| | 1,418,411 |
| | — |
| | — |
| | 1,418,411 |
|
| Cost of sales | | | | | | | |
| Fuel, maintenance and installation | 716,806 |
| | — |
| | — |
| | 716,806 |
|
| Depreciation expense | 318,903 |
| | — |
| | — |
| | 318,903 |
|
| | 1,035,709 |
| | — |
| | — |
| | 1,035,709 |
|
| Gross profit | 382,702 |
| | — |
| | — |
| | 382,702 |
|
| Operating expenses | | | | | | | |
| General and administrative | 387,347 |
| | 206,211 |
| | — |
| | 593,558 |
|
| Selling | 374,259 |
| | 325,639 |
| | — |
| | 699,898 |
|
| Engineering | 221,866 |
| | — |
| | — |
| | 221,866 |
|
| | 983,472 |
| | 531,850 |
| | — |
| | 1,515,322 |
|
| Loss from operations | (600,770 | ) | | (531,850 | ) | | — |
| | (1,132,620 | ) |
| Other income (expense), net | | | | | | | |
| Interest and other income | 11,433 |
| | — |
| | — |
| | 11,433 |
|
| Interest expense (non-cash) | (142,772 | ) | | — |
| | — |
| | (142,772 | ) |
| Change in fair value of warrant liability (non-cash) | 125,668 |
| | — |
| | — |
| | 125,668 |
|
| | (5,671 | ) | | — |
| | — |
| | (5,671 | ) |
| Loss before provision for state income taxes | (606,441 | ) | | (531,850 | ) | | — |
| | (1,138,291 | ) |
| Benefit for state income taxes | 41 |
| | — |
| | — |
| | 41 |
|
| Consolidated net loss | (606,400 | ) | | (531,850 | ) | | — |
| | (1,138,250 | ) |
| (Income) loss attributable to the noncontrolling interest | (55,857 | ) | | — |
| | 84,591 |
| | 28,734 |
|
| Net loss attributable to American DG Energy Inc. | $ | (662,257 | ) | | $ | (531,850 | ) | | $ | 84,591 |
| | $ | (1,109,516 | ) |
| | | | | | | | |
| Net loss per share - basic and diluted | $ | (0.01 | ) | | | | | | $ | (0.02 | ) |
| Weighted average shares outstanding - basic and diluted | 45,834,904 |
| | | | | | $ | 45,834,904 |
|
| | | | | | | | |
| Non-GAAP financial disclosure | | | | | | | |
| Loss from operations | $ | (600,770 | ) | | $ | (531,850 | ) | | — |
| | $ | (1,132,620 | ) |
| Depreciation expense | 332,368 |
| | — |
| | — |
| | 332,368 |
|
| Stock based compensation | 65,060 |
| | 121,900 |
| | — |
| | 186,960 |
|
| Adjusted EBITDA | (203,342 | ) | | (409,950 | ) | | — |
| | (613,292 | ) |
| Grants from rebates and incentives | — |
| | — |
| | — |
| | — |
|
| Total EBITDA cash outflows | $ | (203,342 | ) | | $ | (409,950 | ) | | — |
| | $ | (613,292 | ) |
*American DG Energy includes related LLC.
CONSOLIDATING STATEMENT OF OPERATIONS
For the Nine Months Ended September 30, 2012
(unaudited)
|
| | | | | | | | | | | | | | | |
| | Nine Months Ended September 30, 2012 |
| | American DG Energy* | | EuroSite Power | | Eliminations | | Total |
| Revenues | |
| | |
| | |
| | |
|
| Energy revenues | $ | 3,920,071 |
| | $ | 5,594 |
| | $ | — |
| | $ | 3,925,665 |
|
| Turnkey & other revenues | 123,957 |
| | 45,992 |
| | — |
| | 169,949 |
|
| | 4,044,028 |
| | 51,586 |
| | — |
| | 4,095,614 |
|
| Cost of sales | | | | | | | |
| Fuel, maintenance and installation | 2,393,092 |
| | 38,193 |
| | — |
| | 2,431,285 |
|
| Depreciation expense | 1,131,397 |
| | — |
| | — |
| | 1,131,397 |
|
| | 3,524,489 |
| | 38,193 |
| | — |
| | 3,562,682 |
|
| Gross profit | 519,539 |
| | 13,393 |
| | — |
| | 532,932 |
|
| Operating expenses | | | | | | | |
| General and administrative | 1,147,679 |
| | 779,351 |
| | — |
| | 1,927,030 |
|
| Selling | 1,095,056 |
| | 462,164 |
| | — |
| | 1,557,220 |
|
| Engineering | 795,050 |
| | 55,432 |
| | — |
| | 850,482 |
|
| | 3,037,785 |
| | 1,296,947 |
| | — |
| | 4,334,732 |
|
| Loss from operations | (2,518,246 | ) | | (1,283,554 | ) | | — |
| | (3,801,800 | ) |
| Other income (expense), net | | | | | | | |
| Interest and other income | 31,849 |
| | 12,138 |
| | — |
| | 43,987 |
|
| Interest expense (non-cash) | (1,034,589 | ) | | — |
| | — |
| | (1,034,589 | ) |
| Change in fair value of warrant liability (non-cash) | (343,629 | ) | | — |
| | — |
| | (343,629 | ) |
| | (1,346,369 | ) | | 12,138 |
| | — |
| | (1,334,231 | ) |
| Loss before provision for state income taxes | (3,864,615 | ) | | (1,271,416 | ) | | — |
| | (5,136,031 | ) |
| Provision for state income taxes | (21,402 | ) | | — |
| | — |
| | (21,402 | ) |
| Consolidated net loss | (3,886,017 | ) | | (1,271,416 | ) | | — |
| | (5,157,433 | ) |
| (Income) loss attributable to the noncontrolling interest | (139,675 | ) | | — |
| | 218,960 |
| | 79,285 |
|
| Net loss attributable to American DG Energy Inc. | $ | (4,025,692 | ) | | $ | (1,271,416 | ) | | $ | 218,960 |
| | $ | (5,078,148 | ) |
| | | | | | | | |
| Net loss per share - basic and diluted | $ | (0.09 | ) | | | | | | $ | (0.11 | ) |
| Weighted average shares outstanding - basic and diluted | 46,716,914 |
| | | | | | 46,716,914 |
|
| | | | | | | | |
| Non-GAAP financial disclosure | | | | | | | |
| Loss from operations | $ | (2,518,246 | ) | | $ | (1,283,554 | ) | | $ | — |
| | $ | (3,801,800 | ) |
| Depreciation expense | 1,170,949 |
| | 4,261 |
| | — |
| | 1,175,210 |
|
| Stock based compensation | 222,394 |
| | 374,014 |
| | — |
| | 596,408 |
|
| Adjusted EBITDA | (1,124,903 | ) | | (905,279 | ) | | — |
| | (2,030,182 | ) |
| Grants from rebates and incentives | 260,701 |
| | — |
| | — |
| | 260,701 |
|
| Total EBITDA cash outflows | $ | (864,202 | ) | | $ | (905,279 | ) | | $ | — |
| | $ | (1,769,481 | ) |
*American DG Energy includes related LLC.
CONSOLIDATING STATEMENT OF OPERATIONS
For the Nine Months Ended September 30, 2011
(unaudited)
|
| | | | | | | | | | | | | | | |
| | Nine Months Ended September 30, 2011 |
| | American DG Energy* | | EuroSite Power | | Eliminations | | Total |
| Revenues | |
| | |
| | |
| | |
|
| Energy revenues | $ | 4,270,336 |
| | $ | — |
| | $ | — |
| | $ | 4,270,336 |
|
| Turnkey & other revenues | 283,256 |
| | — |
| | — |
| | 283,256 |
|
| | 4,553,592 |
| | — |
| | — |
| | 4,553,592 |
|
| Cost of sales | | | | | | | |
| Fuel, maintenance and installation | 2,799,733 |
| | — |
| | — |
| | 2,799,733 |
|
| Depreciation expense | 921,931 |
| | — |
| | — |
| | 921,931 |
|
| | 3,721,664 |
| | — |
| | — |
| | 3,721,664 |
|
| Gross profit | 831,928 |
| | — |
| | — |
| | 831,928 |
|
| Operating expenses | | | | | | | |
| General and administrative | 1,091,854 |
| | 526,327 |
| | — |
| | 1,618,181 |
|
| Selling | 608,209 |
| | 325,639 |
| | — |
| | 933,848 |
|
| Engineering | 536,132 |
| | — |
| | — |
| | 536,132 |
|
| | 2,236,195 |
| | 851,966 |
| | — |
| | 3,088,161 |
|
| Loss from operations | (1,404,267 | ) | | (851,966 | ) | | — |
| | (2,256,233 | ) |
| Other income (expense), net | | | | | | | |
| Interest and other income | 31,414 |
| | — |
| | — |
| | 31,414 |
|
| Interest expense (non-cash) | (246,376 | ) | | — |
| | — |
| | (246,376 | ) |
| Change in fair value of warrant liability (non-cash) | 509,663 |
| | — |
| | — |
| | 509,663 |
|
| | 294,701 |
| | — |
| | — |
| | 294,701 |
|
| Loss before provision for state income taxes | (1,109,566 | ) | | (851,966 | ) | | — |
| | (1,961,532 | ) |
| Provision for state income taxes | (17,071 | ) | | — |
| | — |
| | (17,071 | ) |
| Consolidated net loss | (1,126,637 | ) | | (851,966 | ) | | — |
| | (1,978,603 | ) |
| (Income) loss attributable to the noncontrolling interest | (175,164 | ) | | — |
| | 140,356 |
| | (34,808 | ) |
| Net loss attributable to American DG Energy Inc. | $ | (1,301,801 | ) | | $ | (851,966 | ) | | $ | 140,356 |
| | $ | (2,013,411 | ) |
| | | | | | | | |
| Net loss per share - basic and diluted | $ | (0.03 | ) | | | | | | $ | (0.04 | ) |
| Weighted average shares outstanding - basic and diluted | 45,647,265 |
| | | | | | 45,647,265 |
|
| | | | | | | | |
| Non-GAAP financial disclosure | | | | | | | |
| Loss from operations | $ | (1,404,267 | ) | | $ | (851,966 | ) | | $ | — |
| | $ | (2,256,233 | ) |
| Depreciation expense | 954,751 |
| | — |
| | — |
| | 954,751 |
|
| Stock based compensation | 157,254 |
| | 321,951 |
| | — |
| | 479,205 |
|
| Adjusted EBITDA | (292,262 | ) | | (530,015 | ) | | — |
| | (822,277 | ) |
| Grants from rebates and incentives | 327,138 |
| | — |
| | — |
| | 327,138 |
|
| Total EBITDA cash outflows | $ | 34,876 |
| | $ | (530,015 | ) | | $ | — |
| | $ | (495,139 | ) |
*American DG Energy includes related LLC.
CONSOLIDATED BALANCE SHEETS
As of September 30, 2012 and December 31, 2011 (unaudited)
|
| | | | | | | |
| | September 30, 2012 | | December 31, 2011 |
| ASSETS | |
| | |
|
| Current assets: | |
| | |
|
| Cash and cash equivalents | $ | 15,750,942 |
| | $ | 17,801,025 |
|
| Accounts receivable, net | 911,581 |
| | 879,630 |
|
| Unbilled revenue | 14,379 |
| | 18,825 |
|
| Due from related party | 164,578 |
| | 21,140 |
|
| Inventory | 1,255,161 |
| | 634,120 |
|
| Prepaid and other current assets | 383,342 |
| | 322,276 |
|
| Total current assets | 18,479,983 |
| | 19,677,016 |
|
| Property, plant and equipment, net | 16,451,474 |
| | 14,690,117 |
|
| Accounts receivable, long-term | 66,464 |
| | 82,664 |
|
| Other assets, long-term | 49,771 |
| | 53,504 |
|
| TOTAL ASSETS | $ | 35,047,692 |
| | $ | 34,503,301 |
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |
| | |
|
| Current liabilities: | |
| | |
|
| Accounts payable | $ | 1,390,796 |
| | $ | 520,608 |
|
| Accrued expenses and other current liabilities | 839,228 |
| | 589,032 |
|
| Due to related party | 529,464 |
| | 313,847 |
|
| Capital lease obligations | 3,365 |
| | 3,365 |
|
| Total current liabilities | 2,762,853 |
| | 1,426,852 |
|
| Long-term liabilities: | |
| | |
|
| Convertible debentures | 19,400,000 |
| | 19,400,000 |
|
| Warrant liability | 593,190 |
| | 249,561 |
|
| Capital lease obligations, long-term | 841 |
| | 3,365 |
|
| Other long-term liabilities | 32,846 |
| | 43,052 |
|
| Total liabilities | 22,789,730 |
| | 21,122,830 |
|
| Stockholders’ equity: | |
| | |
|
| American DG Energy Inc. stockholders’ equity: | |
| | |
|
| Common stock, $0.001 par value; 100,000,000 shares authorized; 48,168,460 and 46,001,404 issued and outstanding at September 30, 2012 and December 31, 2011, respectively | 48,168 |
| | 46,001 |
|
| Additional paid-in capital | 34,580,997 |
| | 30,399,370 |
|
| Accumulated deficit | (23,009,206 | ) | | (17,931,058 | ) |
| Total American DG Energy Inc. stockholders’ equity | 11,619,959 |
| | 12,514,313 |
|
| Noncontrolling interest | 638,003 |
| | 866,158 |
|
| Total stockholders’ equity | 12,257,962 |
| | 13,380,471 |
|
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 35,047,692 |
| | $ | 34,503,301 |
|
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Nine Months Ended September 30, 2012 and September 30, 2011
|
| | | | | | | |
| | Nine Months Ended |
| | September 30, 2012 | | September 30, 2011 |
| | (unaudited) | | (unaudited) |
| CASH FLOWS FROM OPERATING ACTIVITIES: | |
| | |
|
| Net loss | $ | (5,078,148 | ) | | $ | (2,013,411 | ) |
| Income (loss) attributable to noncontrolling interest | (79,285 | ) | | 34,808 |
|
| Adjustments to reconcile net loss to net cash used in operating activities: |
|
| | |
|
| Depreciation and amortization | 1,175,210 |
| | 954,751 |
|
| Provision for losses on accounts receivable | 89,649 |
| | 22,568 |
|
| Amortization of deferred financing costs | 3,733 |
| | 2,256 |
|
| Increase (decrease) in fair value of warrant liability | 343,629 |
| | (509,663 | ) |
| Noncash interest expense | 712,921 |
| | — |
|
| Stock-based compensation | 596,408 |
| | 479,205 |
|
| Changes in operating assets and liabilities | |
| | |
|
| (Increase) decrease in: | |
| | |
|
| Restricted cash | — |
| | 65,790 |
|
| Accounts receivable and unbilled revenue | (100,954 | ) | | (546,238 | ) |
| Due from related party | (143,438 | ) | | (25,128 | ) |
| Inventory | (621,041 | ) | | (29,605 | ) |
| Prepaid and other current assets | (61,066 | ) | | (130,283 | ) |
| Increase (decrease) in: |
|
| | |
|
| Accounts payable | 870,188 |
| | 3,994 |
|
| Accrued expenses and other current liabilities | 250,196 |
| | 146,704 |
|
| Due to related party | 215,617 |
| | (35,702 | ) |
| Other long-term liabilities | (10,206 | ) | | 46,454 |
|
| Net cash used in operating activities | (1,836,587 | ) | | (1,533,500 | ) |
| CASH FLOWS FROM INVESTING ACTIVITIES: | |
| | |
|
| Purchases of property and equipment | (2,936,567 | ) | | (1,249,637 | ) |
| Net cash used in investing activities | (2,936,567 | ) | | (1,249,637 | ) |
| CASH FLOWS FROM FINANCING ACTIVITIES: | |
| | |
|
| Proceeds from issuance of convertible debentures | — |
| | 10,100,000 |
|
| Proceeds from sale of common stock, net of costs | 3,531,534 |
| | — |
|
| Proceeds from sale of subsidiary common stock, net of costs | — |
| | 1,148,401 |
|
| Proceeds from exercise of stock options | 149,882 |
| | 26,798 |
|
| Proceeds from issuance of common stock warrants | 7,500 |
| | — |
|
| Convertible debenture transaction costs | — |
| | (47,423 | ) |
| Purchases of common stock, net of costs | (750,000 | ) | | — |
|
| Principal payments on capital lease obligations | (2,524 | ) | | (2,524 | ) |
| Cancellation of restricted stock | (40 | ) | | (20 | ) |
| Distributions to noncontrolling interest | (213,281 | ) | | (251,964 | ) |
| Net cash provided by financing activities | 2,723,071 |
| | 10,973,268 |
|
| Net (decrease) increase in cash and cash equivalents | (2,050,083 | ) | | 8,190,131 |
|
| Cash and cash equivalents, beginning of the period | 17,801,025 |
| | 3,921,054 |
|
| Cash and cash equivalents, end of the period | $ | 15,750,942 |
| | $ | 12,111,185 |
|
