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 leading On-Site Utility, offering clean electricity, heat, hot water and cooling solutions to hospitality, healthcare, housing and athletic facilities, reported energy revenues of $1,136,265 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 started operating 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 electric utility 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 to the 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 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 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 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.

 

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