EUROSITE POWER INC. - FORM 8-K - EX-99.1 - EARNINGS RELEASE - November 17, 2015

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Eurosite Power Inc.
45 First Avenue, Waltham, MA 02451
t: +1 781.522.6000 f: +1 781.522.6050
info@eurositepower.co.uk www.eurositepower.co.uk
FOR IMMEDIATE RELEASE

Investor Contact:                        Media Contact:
John N. Hatsopoulos                        Ariel Babcock
EuroSite Power Inc.                        EuroSite Power Inc.
+1 781.622.1120                        +1 781.466.6413
john.hatsopoulos@eurositepower.co.uk            ariel.babcock@eurositepower.co.uk

EuroSite Power Inc. Reports Third Quarter 2015 Financial Performance

Revenue up 20% compared to the same period a year ago, gross margin also improves.

WALTHAM. Mass - November 11, 2015 - EuroSite Power Inc. (OTCQB: EUSP), a subsidiary of American DG Energy Inc. (NYSE MKT: ADGE), On-Site Utility™ solutions provider, offering clean electricity, heat, hot water and cooling solutions to hospitality, healthcare, housing and fitness facilities, reported total revenues of $421,991 for the third quarter of 2015, compared to $350,561 for the third quarter of 2014, an increase of 20.4%. Loss per share was $0.01 for the third quarter of 2015 as well as for the third quarter of 2014.

Major Highlights:

Financial

•
Total revenue increased by 20.4% to $421,991 for Q3 2015, compared to $350,561 for Q3 2014.
•
Energy revenue for the quarter grew by 48% to $410,055 compared to $277,335 for the same period last year.  
•
Our current backlog is 8 systems totaling 1,014 kW with a total contract value of $22.3 million.
•
Gross margin without depreciation improved to 13.5% for the third quarter of 2015, compared to 8.9% for the same quarter in 2014.

Sales and Operations

•
Total energy production for the quarter increased by 60% to 5,484,199 kWh.
•
Total energy production for the first 9 months of 2015 exceeds total generation for the whole of 2014.
•
Brought a further system into operation during the quarter plus a further unit shortly after the quarter closed.
•
Finalist in Association of Decentralized Energy (ADE) Innovation Award category.
•
In total we currently operate 29 systems totaling 2,878kW of installed capacity with a total contract value of $81 million.
•
The total number of systems now under contract is 36 totaling 3,760 kW.







EuroSite Power Inc. will hold its earnings conference call today, November 11, 2015 at 10:00 a.m. Eastern Time. To listen, call (877) 870-4263 within the U.S., (855) 669-9657 from Canada, or (412) 317-0790 from other international locations.  Participants should reference EuroSite Power to access the call.  Please begin dialing at least 10 minutes before the scheduled starting time.

The earnings conference call will be recorded and available for playback one hour after the end of the call through Thursday, November 19, 2015. To listen to the playback, call (877) 344-7529 within the U.S., (855) 669-9658 from Canada or (412) 317-0088 outside the U.S. and use Conference Number 10075349.

The earnings conference call will also be webcast live. To register for and listen to the webcast, go to http://investors.americandg.com/webcast. Following the call, the webcast will be archived for 30 days.

About EuroSite Power
EuroSite Power Inc. is a subsidiary of American DG Energy Inc. (NYSE MKT: ADGE). American DG Energy owns 48% of EuroSite Power and consolidates their financial results and P&L. The Company is committed to providing institutional, commercial and small industrial facilities with clean, reliable power, cooling, heat and hot water at lower costs than charged by conventional energy suppliers - without any capital or start-up costs to the energy user - through On-Site Utility™ energy solutions. More information can be found at www.eurositepower.co.uk.

# # #

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 that could affect our business including weather, electric price changes, gas prices, carbon credit markets and delays by government agencies to process tax and other incentives. Important other 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.




EUROSITE POWER INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
 
September 30,
2015
 
December 31,
2014
ASSETS
 
 
 
Current assets:
 

 
 

Cash and cash equivalents
$
1,201,870

 
$
3,776,852

Accounts receivable
204,269

 
152,664

 UK energy tax incentives receivable
—

 
648,917

Value added tax receivable
81,433

 
72,202

Inventory of finished goods
109,983

 
99,925

Other current assets
63,824

 
33,655

Total current assets
1,661,379

 
4,784,215

Property, plant and equipment, net
7,628,973

 
6,348,905

Other assets, long-term
12,444

 
16,764

TOTAL ASSETS
$
9,302,796

 
$
11,149,884

 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 

 
 

Current liabilities:
 

 
 

Accounts payable
$
516,769

 
$
338,067

Accrued expenses and other current liabilities
262,604

 
130,252

Note payable related party
2,000,000

 
—

Total current liabilities
2,779,373

 
468,319

Long-term liabilities:
 
 
 
Convertible debentures
1,600,309

 
1,645,444

Convertible debentures due to related parties
960,185

 
987,266

     Note payable related party
—

 
3,000,000

Total liabilities
5,339,867

 
6,101,029

Commitments and contingencies (note 5)


 


Stockholders’ equity:
 

 
 

Common stock, $0.001 par value; 100,000,000 shares authorized; 65,747,100 issued and outstanding at September 30, 2015 and December 31, 2014
65,747

 
65,747

Additional paid-in capital
12,204,222

 
12,147,005

Accumulated deficit
(8,307,040
)
 
(7,163,897
)
Total stockholders' equity
3,962,929

 
5,048,855

 
 
 
 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
9,302,796

 
$
11,149,884







EUROSITE POWER INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
 
Three Months Ended
 
September 30,
2015
 
September 30,
2014
 
 
 
 
Revenues
 
 
 
Energy revenues
$
410,055

 
$
277,335

Turnkey & other revenues
11,936

 
73,226

 
421,991

 
350,561

Cost of sales
 

 
 

Fuel, maintenance and installation
365,097

 
319,461

Depreciation expense
102,485

 
83,430

 
467,582

 
402,891

Gross profit (loss)
(45,591
)
 
(52,330
)
 
 
 
 
Operating expenses
 

 
 

General and administrative
194,053

 
174,786

Selling
122,826

 
133,720

Engineering
87,853

 
17,617

 
404,732

 
326,123

Loss from operations
(450,323
)
 
(378,453
)
Other income (expense)
 

 
 

Interest and other income
965

 
1,951

Interest expense, net of debt premium amortization
(8,599
)
 
(2,146
)
 
(7,634
)
 
(195
)
 
 
 
 
Loss before income taxes
(457,957
)
 
(378,648
)
Benefit for income taxes
—

 
—

Net loss
$
(457,957
)
 
$
(378,648
)
 
 
 
 
Net loss per share - basic and diluted
$
(0.01
)
 
$
(0.01
)
Weighted-average shares outstanding - basic and diluted
65,747,100

 
56,747,100

 
 
 
 
Non-GAAP financial disclosure
 
 
 
Loss from operations
$
(450,323
)
 
$
(378,453
)
Depreciation expense
103,133

 
83,430

Stock based compensation
1,071

 
43,562

Adjusted EBITDA
(346,119
)
 
(250,313
)
Grants from rebates and incentives
—

 
—

Total cash outflows
$
(346,119
)
 
$
(250,313
)
 





EUROSITE POWER INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
 
Nine Months Ended
 
September 30,
2015
 
September 30,
2014
 
 
 
 
Revenues
 
 
 
Energy revenues
$
1,473,307

 
$
1,117,980

Turnkey & other revenues
39,711

 
81,324

 
1,513,018

 
1,199,304

Cost of sales
 

 
 

Fuel, maintenance and installation
1,192,276

 
972,088

Depreciation expense
289,621

 
226,892

 
1,481,897

 
1,198,980

Gross profit (loss)
31,121

 
324

 
 
 
 
Operating expenses
 

 
 

General and administrative
627,798

 
603,196

Selling
359,298

 
365,884

Engineering
162,008

 
71,585

 
1,149,104

 
1,040,665

Loss from operations
(1,117,983
)
 
(1,040,341
)
Other income (expense)
 

 
 

Interest and other income
5,277

 
4,760

Interest expense, net of debt premium amortization
(32,625
)
 
(17,630
)
Loss on extinguishment of convertible debt
—

 
(713,577
)
 
(27,348
)
 
(726,447
)
 
 
 
 
Loss before income taxes
(1,145,331
)
 
(1,766,788
)
Benefit for income taxes
2,188

 
—

Net loss
$
(1,143,143
)
 
$
(1,766,788
)
 
 
 
 
Net loss per share - basic and diluted
$
(0.02
)
 
$
(0.03
)
Weighted-average shares outstanding - basic and diluted
65,747,100

 
56,747,100

 
 
 
 
Non-GAAP financial disclosure
 
 
 
Loss from operations
$
(1,117,983
)
 
$
(1,040,341
)
Depreciation expense
291,465

 
231,514

Stock based compensation
57,217

 
123,419

Adjusted EBITDA
(769,301
)
 
(685,408
)
Grants from rebates and incentives
636,661

 
—

Total cash outflows
$
(132,640
)
 
$
(685,408
)
 






EUROSITE POWER INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
Nine Months Ended
 
September 30,
2015
 
September 30,
2014
 
 
 
 
CASH FLOWS FROM OPERATING ACTIVITIES:
 

 
 

Net loss
$
(1,143,143
)
 
$
(1,766,788
)
Adjustments to reconcile net loss to net cash used in operating activities:
 

 
 

Depreciation and amortization
291,465

 
231,514

Loss on extinguishment of debt
—

 
713,577

Amortization of deferred financing costs
—

 
784

Amortization of convertible debt premium
(72,216
)
 
(109,332
)
Stock-based compensation
57,217

 
123,419

Accrued UK tax energy incentives
636,661

 
—

Changes in operating assets and liabilities
 

 
 

(Increase) decrease in:
 

 
 

   Accounts receivable
(51,605
)
 
(16,217
)
   Value added tax receivable
3,025

 
(136,446
)
   Inventory of finished goods
(10,058
)
 
305,036

   Prepaid and other current assets
(27,289
)
 
(55,361
)
   Other assets, long- term
1,440

 
(10,932
)
Increase (decrease) in:
 

 
 

   Accounts payable
178,702

 
248,988

   Accrued expenses and other current liabilities
132,352

 
94,355

Net cash used in operating activities
(3,449
)
 
(377,403
)
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 

 
 

Purchases of property, plant and equipment
(1,571,533
)
 
(1,993,153
)
Net cash used in investing activities
(1,571,533
)
 
(1,993,153
)
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 

 
 

Proceeds (payment) on note payable to related party
(1,000,000
)
 
3,000,000

Proceeds from convertible debentures
—

 
1,450,000

Net cash provided by (used in) financing activities
(1,000,000
)
 
4,450,000

 
 
 
 
Net increase (decrease) in cash and cash equivalents
(2,574,982
)
 
2,079,444

Cash and cash equivalents, beginning of the period
3,776,852

 
1,519,602

Cash and cash equivalents, end of the period
$
1,201,870

 
$
3,599,046

 
 
 
 
Supplemental disclosures of cash flow information:
 
 
 
Taxes paid
$
—

 
$
—

Interest paid
$
—

 
$
80,000

 




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