WALTHAM, Mass., March 21,
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 $6,141,749 for 2016, compared to
$6,358,196 for 2015. GAAP diluted
loss per share (EPS) was $0.01 for
2016, compared with a GAAP diluted loss per share of $0.11 for 2015. Reflecting the Company's ongoing
efforts to optimize its On-Site Utility production, gross margin
excluding depreciation and site impairments improved in 2016 to
39.9% versus 36.1% in 2015, a 3.8 percentage point increase and a
10.5% improvement in gross margin.
Chief Financial Officer Bonnie
Brown observed, "In the past year we worked hard to set
American DG on the path toward financial stability. The
elimination of our substantial debt and the sale of the majority of
our interest in EuroSite Power freed the company to focus resources
on improving the core U.S. business. This renewed focus is evident
in the substantial improvement in results."
Beginning in 2015 and continuing into 2016, the Company has been
executing an initiative (the "Initiative") to more effectively
invest its capital behind improving the performance of its existing
installed base of assets. The goal of the Initiative is to make
strategic capital improvements aimed at increasing productivity of
the existing portfolio while optimizing the Company's margins and
increasing cash flow. The results of this Initiative are producing
a foundation of high performing assets that may be used to fund
future growth.
Speaking about the company's performance, Co-Chief Executive
Officer Benjamin Locke noted, "The
Company's improved balance sheet and fleet operating metrics
combine to make American DG Energy an attractive asset - the value
of which was realized in the proposed acquisition by Tecogen Inc.
Pending regulatory and shareholder approval, we look forward to
combining forces to create the leading vertically integrated
cogeneration company in the U.S. later this year."
Major Highlights:
Consolidated Financial Results
- On November 1, 2016, the
Company's Board of Directors approved a definitive agreement
whereby Tecogen Inc would acquire all of the outstanding shares of
American DG in a stock-for-stock merger. Under the agreement, each
share of American DG common stock will be exchanged for 0.092
shares of Tecogen common stock, valuing American DG at an
approximately 27% premium to the Company's closing share price on
that day. This agreement is subject to a vote of security holders
of both companies. The transaction is also subject to other
customary closing conditions and is expected to close in the first
half of 2017.
- Through a series of transactions the Company has removed its
$19.4 million in convertible
debentures using a combination of EuroSite Power common stock and
approximately $3 million in cash to
repay this debt in full.
- As a result of the convertible debenture transactions, as of
June 30, 2016 the Company no longer
consolidates with EuroSite Power and has presented its former
subsidiary as discontinued operations in the accompanying financial
statements.
- Also, as a result of the payoff of convertible debentures, the
Company borrowed $850,000 from its
Co-CEO, John Hatsopoulos. This loan
carries 6% interest and matures on May 25,
2018.
- As a result of our focused efforts to improve fleet operations,
adjusted EBITDA cash flows improved by $941,000, reaching positive cash inflows of
$118,105 in 2016, versus outflows of
$822,895 for 2015.
- As a result of our efforts to improve operations and
efficiencies, general and administrative expenses have decreased to
$1,878,008 for 2016 versus
$1,937,299 for 2015, a 3.1%
improvement. General and administrative expenses for the year ended
December 31, 2016 included
approximately $270,000 of one-time
expenses incurred in connection with the proposed merger with
Tecogen.
- Overall operating expenses improved 24.1% generating an expense
reduction of $817,669.
- Adjusted gross margin excluding depreciation expense improved
by 5.3%, reaching 31.7% for 2016 versus 26.4% for the same period
in 2015. Gross margin for the full year 2016 was 2.1% compared with
the (0.8)% gross margin reported in 2015, reflecting the benefit
from site improvements and reduction in fuel, maintenance and
installation related expense.
- While eleven sites were removed from our fleet as a result of
the reorganization with ADGNY, LLC, our revenues remained
relatively level, decreasing by only $216,447, or 3.4%.
Operations
- As the operations team has been focused on metering for demand
capture since March 2016, our demand
revenue captured for the year of 2016 was approximately
$279,000 compared to $104,000 for 2015, an increase of 168%.
- Through improved operations, fuel costs were reduced by 4%,
thus improving gross profit.
- Revenue for the year was attributable to the following core
markets:
|
Hospitality
|
16
|
%
|
|
Fitness
|
17
|
%
|
|
Housing
|
19
|
%
|
|
Health
Care
|
19
|
%
|
|
Education
|
17
|
%
|
|
Other
|
12
|
%
|
|
Total
|
100
|
%
|
- The revenue was distributed by energy type as is outlined in
the following table:
|
Electricity
|
51
|
%
|
|
Thermal
|
35
|
%
|
|
Cooling
|
14
|
%
|
|
Total
|
100
|
%
|
- In total, as of December 31,
2016, we operated 92 systems totaling 5,445kW of installed
capacity.
American DG Energy will hold its earnings conference call today,
March 21, 2017 at 11:00 a.m. Eastern Time. To listen, call
(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 https://www.webcaster4.com/Webcast/Page/416/20033.
The earnings conference call will be recorded and available for
playback one hour after the end of the call through Tuesday, March 28, 2017. To listen to the
playback, call (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
110102545. 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.
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
December 31,
2016
|
|
December 31,
2015
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
338,627
|
|
|
$
|
4,999,709
|
|
|
Accounts receivable,
net
|
815,748
|
|
|
633,924
|
|
|
Unbilled
revenue
|
18,797
|
|
|
12,468
|
|
|
Due from related
party
|
87,845
|
|
|
99,548
|
|
|
Inventory
|
128,680
|
|
|
975,760
|
|
|
Current assets of
discontinued operations
|
—
|
|
|
1,450,034
|
|
|
Assets held for
sale
|
946,883
|
|
|
—
|
|
|
Prepaid and other
current assets
|
299,667
|
|
|
331,057
|
|
|
Total current
assets
|
2,636,247
|
|
|
8,502,500
|
|
|
Property and
equipment, net
|
15,831,160
|
|
|
17,950,787
|
|
|
Long-term assets of
discontinued operations
|
—
|
|
|
7,527,266
|
|
|
Investment
securities
|
637,651
|
|
|
—
|
|
|
Other assets,
long-term
|
—
|
|
|
41,825
|
|
|
TOTAL
ASSETS
|
$
|
19,105,058
|
|
|
$
|
34,022,378
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
|
270,078
|
|
|
$
|
162,976
|
|
|
Accrued expenses and
other current liabilities
|
522,525
|
|
|
257,810
|
|
|
Due to related
party
|
127,904
|
|
|
1,171,863
|
|
|
Current liabilities
of discontinued operations
|
—
|
|
|
699,086
|
|
|
Total current
liabilities
|
920,507
|
|
|
2,291,735
|
|
|
Long-term
liabilities:
|
|
|
|
|
Loan due to related
party
|
850,000
|
|
|
—
|
|
|
Convertible
debentures due related parties
|
—
|
|
|
16,078,912
|
|
|
Long-term liabilities
of discontinued operations
|
—
|
|
|
4,536,422
|
|
|
Total
liabilities
|
1,770,507
|
|
|
22,907,069
|
|
|
Commitments and
contingencies (Note 13)
|
|
|
|
|
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 December 31, 2016 and 2015
|
50,684
|
|
|
50,684
|
|
|
Additional paid-in
capital
|
58,823,704
|
|
|
49,641,620
|
|
|
Accumulated other
comprehensive loss-investment securities
|
(136,848)
|
|
|
—
|
|
|
Accumulated
deficit
|
(41,381,221)
|
|
|
(40,622,774)
|
|
|
Total American DG
Energy Inc. stockholders' equity
|
17,356,319
|
|
|
9,069,530
|
|
|
Noncontrolling
interest in discontinued operations
|
—
|
|
|
1,944,236
|
|
|
Noncontrolling
interest
|
(21,768)
|
|
|
101,543
|
|
|
Total stockholders'
equity
|
17,334,551
|
|
|
11,115,309
|
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
|
19,105,058
|
|
|
$
|
34,022,378
|
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
For the years
ended December 31,
|
|
|
2016
|
|
2015
|
|
Revenues
|
|
|
|
|
Energy
revenues
|
$
|
5,565,909
|
|
|
$
|
5,684,774
|
|
|
Turnkey & other
revenues
|
575,840
|
|
|
673,422
|
|
|
6,141,749
|
|
|
6,358,196
|
|
|
Cost of
sales
|
|
|
|
|
Fuel, maintenance and
installation
|
3,689,294
|
|
|
4,064,145
|
|
|
Site
impairments
|
503,072
|
|
|
618,661
|
|
|
Depreciation
expense
|
1,820,391
|
|
|
1,728,762
|
|
|
6,012,757
|
|
|
6,411,568
|
|
|
Gross profit
(loss)
|
128,992
|
|
|
(53,372)
|
|
|
Operating
expenses
|
|
|
|
|
General and
administrative
|
1,878,008
|
|
|
1,937,299
|
|
|
Selling
|
41,504
|
|
|
694,101
|
|
|
Engineering
|
649,181
|
|
|
754,962
|
|
|
2,568,693
|
|
|
3,386,362
|
|
|
Loss from
operations
|
(2,439,701)
|
|
|
(3,439,734)
|
|
|
Other income
(expense)
|
|
|
|
|
Interest and other
income
|
21,837
|
|
|
193,691
|
|
|
Interest and other
expense
|
(1,062,582)
|
|
|
(1,234,725)
|
|
|
Gain on
extinguishment of debt
|
182,887
|
|
|
—
|
|
|
Gain on
deconsolidation
|
3,887,098
|
|
|
—
|
|
|
Held for sale fair
value adjustment
|
(743,770)
|
|
|
—
|
|
|
Change in fair value
of warrant liability
|
—
|
|
|
6,780
|
|
|
2,285,470
|
|
|
(1,034,254)
|
|
|
Loss from continuing
operations before provision for state income taxes
|
(154,231)
|
|
|
(4,473,988)
|
|
|
Provision for state
income taxes
|
(60,572)
|
|
|
(27,605)
|
|
|
Loss from continuing
operations
|
(214,803)
|
|
|
(4,501,593)
|
|
|
Loss from
discontinued operations (see Note 4)
|
(1,219,256)
|
|
|
(1,384,122)
|
|
|
Consolidated net
loss
|
(1,434,059)
|
|
|
(5,885,715)
|
|
|
(Income) loss
attributable to noncontrolling interest
|
675,612
|
|
|
455,312
|
|
|
Loss attributable to
American DG Energy Inc
|
$
|
(758,447)
|
|
|
$
|
(5,430,403)
|
|
|
Other comprehensive
loss - unrealized loss on securities
|
$
|
(136,848)
|
|
|
$
|
—
|
|
|
Comprehensive
loss
|
$
|
(895,295)
|
|
|
$
|
(5,430,403)
|
|
|
|
|
|
|
Income (loss) per
share from continuing operations attributable to American DG Energy
Inc. - basic and diluted
|
$
|
0.01
|
|
|
$
|
(0.09)
|
|
|
Loss per share from
discontinued operations attributable to American DG Energy Inc. -
basic and diluted
|
$
|
(0.02)
|
|
|
$
|
(0.02)
|
|
|
Net loss per share -
basic and diluted
|
$
|
(0.01)
|
|
|
$
|
(0.11)
|
|
|
Weighted average
shares outstanding - basic and diluted
|
50,684,095
|
|
|
50,689,633
|
|
|
|
|
|
|
Non-GAAP financial
disclosure
|
|
|
|
|
Loss from
operations
|
$
|
(2,439,701)
|
|
|
$
|
(3,439,734)
|
|
|
Depreciation
|
1,861,232
|
|
|
1,776,048
|
|
|
Site
Impairments
|
503,072
|
|
|
618,661
|
|
|
Stock based
compensation
|
193,502
|
|
|
222,130
|
|
|
Adjusted
EBITDA
|
$
|
118,105
|
|
|
$
|
(822,895)
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
For the years
ended December 31,
|
|
|
2016
|
|
2015
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net loss
|
$
|
(758,447)
|
|
|
$
|
(5,430,403)
|
|
|
Income
attributable to noncontrolling interest
|
58,236
|
|
|
223,837
|
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
Depreciation
|
1,861,232
|
|
|
1,776,048
|
|
|
Gain attributable to
distribution of nonmonetary assets to noncontrolling
interest
|
—
|
|
|
(157,870)
|
|
|
Loss from
discontinued operations
|
485,408
|
|
|
704,973
|
|
|
Non-cash site
impairments
|
503,072
|
|
|
618,661
|
|
|
Provision (recovery)
for losses on accounts receivable
|
(120,000)
|
|
|
84,274
|
|
|
Amortization of
deferred financing costs
|
41,825
|
|
|
60,807
|
|
|
Gain on
extinguishment of debt
|
(182,887)
|
|
|
—
|
|
|
Decrease in fair
value of warrant liability
|
—
|
|
|
(6,780)
|
|
|
Non-cash interest
expense
|
726,247
|
|
|
1,191,333
|
|
|
Stock-based
compensation
|
193,502
|
|
|
222,130
|
|
|
Gain on
deconsolidation of subsidiary
|
(3,887,098)
|
|
|
—
|
|
|
Fair value adjustment
on assets held for sale
|
743,770
|
|
|
—
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
(Increase) decrease
in:
|
|
|
|
|
Accounts receivable
and unbilled revenue
|
(68,153)
|
|
|
273,614
|
|
|
Due from related
party
|
11,703
|
|
|
(59,767)
|
|
|
Inventory
|
(843,573)
|
|
|
78,242
|
|
|
Prepaid and other
current assets
|
31,390
|
|
|
(261,010)
|
|
|
Increase (decrease)
in:
|
|
|
|
|
Accounts
payable
|
107,102
|
|
|
(104,487)
|
|
|
Accrued expenses and
other current liabilities
|
264,715
|
|
|
(86,878)
|
|
|
Due to related
party
|
(1,043,959)
|
|
|
541,058
|
|
|
Other long-term
liabilities
|
—
|
|
|
(2,227)
|
|
|
Net cash used in
operating activities
|
(1,875,915)
|
|
|
(334,445)
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Purchases of property
and equipment
|
(254,927)
|
|
|
(2,238,084)
|
|
|
Proceeds on sale of
property and equipment
|
10,250
|
|
|
4,650
|
|
|
Cash paid in
connection with ADGNY reorganization
|
—
|
|
|
(100,000)
|
|
|
Purchase of
investment securities from related party
|
(150,000)
|
|
|
—
|
|
|
Net cash used in
investing activities
|
(394,677)
|
|
|
(2,333,434)
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Payments on
convertible debentures due related party
|
(3,058,943)
|
|
|
—
|
|
|
Proceeds from loan
from related party
|
850,000
|
|
|
—
|
|
|
Purchases of common
stock, net of costs
|
—
|
|
|
(152,377)
|
|
|
Distributions to
noncontrolling interest
|
(181,547)
|
|
|
(229,098)
|
|
|
Net cash used in
financing activities
|
(2,390,490)
|
|
|
(381,475)
|
|
|
Net decrease in cash
and cash equivalents
|
(4,661,082)
|
|
|
(3,049,354)
|
|
|
Cash and cash
equivalents, beginning of the period
|
4,999,709
|
|
|
8,049,063
|
|
|
Cash and cash
equivalents, end of the period
|
$
|
338,627
|
|
|
$
|
4,999,709
|
|
|
|
|
|
|
Supplemental
disclosures of cash flows information:
|
|
|
|
|
|
|
|
|
Cash paid during the
period for:
|
|
|
|
|
Income
taxes
|
$
|
83,044
|
|
|
$
|
48,824
|
|
|
|
|
|
|
Non-cash investing
and financing activities:
|
|
|
|
|
Distribution of
nonmonetary assets
|
$
|
—
|
|
|
$
|
340,069
|
|
|
Conversion of subsidiary convertible debentures to common stock of
subsidiary
|
$
|
2,420,046
|
|
|
$
|
—
|
|
|
Settlement of convertible debentures with common stock of
subsidiary
|
$
|
13,783,721
|
|
|
$
|
—
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/american-dg-energy-reports-2016-financial-performance-300426814.html
SOURCE American DG Energy Inc.