WALTHAM, Mass., March 29, 2016/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 $8,556,917for 2015, compared to $8,567,553for 2014. GAAP diluted loss per share (EPS) was $0.11for 2015, compared with a GAAP diluted loss per share of $0.12for 2014. Reflecting the Company's ongoing efforts to optimize its On-Site Utility production, gross margin excluding depreciation and site impairments improved in 2015 to 33.1% versus 31.0% in 2014, a 2.1% increase and a 6.8% improvement in gross margin.

Chief Financial Officer Bonnie Brownobserved, '2015 was about stabilizing our installed base of assets and executing on cost saving initiatives. Delivering stable revenue year-on-year while generating over 200 basis points of adjusted gross margin improvement despite the divesting of eleven sites is a validation of both our expense reduction efforts and careful investment of shareholder capital.'

In 2015, the Company began 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; this should produce a foundation of high performing assets that may be used to fund future growth.

Speaking about the Initiative, co-Chief Executive Officer Benjamin Lockenoted, 'To date, approximately half of the installed base has been addressed and we expect to complete assessment and improvement initiatives at other select installations this year. We are already seeing significant progress in operating results and profitability from sites subjected to our Initiative and are hopeful we will continue to see strong returns on invested capital as other sites are upgraded.'

Major Highlights:

Consolidated Financial Results

  • As a result of our focused efforts to improve fleet operations consolidated EBITDA cash outflows improved by $865,148, reaching $1,148,077in 2015, versus outflows of $2,013,225for 2014.
  • As a result of our efforts to improve operations and efficiencies, general and administrative expenses have decreased to $2,821,321for 2015 versus $3,238,141for 2014, a 12.9% improvement. Overall operating expenses improved 4.1% generating an expense reduction of $215,789.
  • Adjusted gross margin excluding depreciation and site impairment expense improved by 2.1%, hitting 33.1% for 2015 versus 31.0% for the same period in 2014. Gross margin for the full year 2015 was a loss of 2.0% compared with a profit of 1.0% in 2014, reflecting the adverse impact of increased site impairment and depreciation expense which was only partially offset by reductions 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 constant, decreasing by only $10,636, or 0.1%.
  • EuroSite Power Inc. subsidiary success:
    • Total revenue value of all contracted EuroSite Power On-Site Utility energy agreements as of December 31, 2015was approximately $101.1 millionusing various market assumptions and estimates made by management, compared to $96.6 millionat year end 2014. When including agreements signed to date during 2016, total contracted value currently stands at approximately $105.95 millionfor 4,098 kW in total capacity.
    • During the first quarter of 2016, our subsidiary, EuroSite Power, executed two project financing agreements with Societe Generale and Macquarie. These agreements eliminate capital constraints on projects; any project which meets the company's return hurdles may now be pursued.
    • EuroSite Power, received $648,917in Enhanced Capital Allowance (ECA) payments from the UK government during the year for activities undertaken in 2014. We also filed for $358,780in ECA payments related to 2015 activities and received this allowance in Q1 2016. The ECA program is a cash energy tax incentive for energy-saving plant and machinery, which includes combined heat and power systems.

Operations

  • During 2015, based on our Initiative, we focused the majority of our efforts on four cornerstone sites who make up 37% of the fleet. Overall we increased production by 32% and reduced routine maintenance costs at these sites.
  • We realized a substantial increase in production of 16%, measured in kWh, from our fleet as a result of our Initiative.
  • Revenue for the year was attributable to the following core markets:

Hospitality

25

%

Fitness

24

%

Housing

17

%

Health Care

14

%

Education

14

%

Other

6

%

Total

100

%

  • The revenue was distributed by energy type as is outlined in the following table:

Electricity

63

%

Thermal

27

%

Cooling

10

%

Total

100

%

  • In total, as of December 31, 2015, we operated 121 systems totaling 8,323kW of installed capacity with a total approximate lifetime contract value of $263.5 million.
  • We have a backlog of 20 systems, on a consolidated basis, as of December 31, 2015.

American DG Energy will hold its earnings conference call today, March 29, 2016at 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. Please note this quarter there will be no question and answer session following management's presentation of prepared remarks. Alternately, to register for and listen to the live webcast, please go to https://www.webcaster4.com/Webcast/Page/416/13054.

The earnings conference call will be recorded and available for playback one hour after the end of the call through Tuesday, April 5, 2016. 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 10079907. 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,
2015

December 31,
2014

ASSETS

Current assets:

Cash and cash equivalents

$

5,587,528

$

11,825,915

Accounts receivable, net

937,706

1,140,811

Unbilled revenue

12,468

12,533

Due from related party

99,548

39,682

Inventory

1,112,853

1,153,927

Prepaid and other current assets

752,397

852,069

Total current assets

8,502,500

15,024,937

Property, plant and equipment, net

25,467,049

24,885,155

Accounts receivable, long-term

-

3,600

Other assets, long-term

52,829

92,148

TOTAL ASSETS

$

34,022,378

$

40,005,840

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

575,248

$

605,530

Accrued expenses and other current liabilities

544,624

485,570

Due to related party

1,171,863

630,805

Total current liabilities

2,291,735

1,721,905

Long-term liabilities:

Convertible debentures

1,585,264

1,645,444

Convertible debentures due related parties

17,030,070

15,864,215

Warrant liability

-

6,780

Note payable - related party

2,000,000

3,000,000

Other long-term liabilities

-

2,227

Total liabilities

22,907,069

22,240,571

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 and 52,140,001 issued and outstanding at December 31, 2015 and 2014, respectively

50,684

52,140

Additional paid-in capital

49,641,620

49,854,998

Accumulated deficit

(40,662,814)

(35,232,411)

Total American DG Energy Inc. stockholders' equity

9,029,490

14,674,727

Noncontrolling interest

2,085,819

3,090,542

Total stockholders' equity

11,115,309

17,765,269

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

34,022,378

$

40,005,840

CONSOLIDATED STATEMENTS OF OPERATIONS

For the years ended December 31,

2015

2014

Revenues

Energy revenues

$

7,829,022

$

7,808,933

Turnkey & other revenues

727,895

758,620

8,556,917

8,567,553

Cost of sales

Fuel, maintenance and installation

5,726,026

5,914,525

Site impairments

865,596

723,438

Depreciation expense

2,134,471

1,843,817

8,726,093

8,481,780

Gross profit (loss)

(169,176)

85,773

Operating expenses

General and administrative

2,821,321

3,238,141

Selling

1,172,909

1,078,351

Engineering

1,003,918

897,445

4,998,148

5,213,937

Loss from operations

(5,167,324)

(5,128,164)

Other income (expense)

Interest and other income

199,221

92,928

Interest expense

(1,276,963)

(1,402,493)

Debt conversion inducement expense

-

(324,977)

Loss on extinguishment of debt

-

(533,177)

Change in fair value of warrant liability

6,780

125,485

(1,070,962)

(2,042,234)

Loss before benefit for income taxes

(6,238,286)

(7,170,398)

Benefit for income taxes

352,571

645,040

Consolidated net loss

(5,885,715)

(6,525,358)

Loss attributable to noncontrolling interest

455,312

636,464

Net loss attributable to American DG Energy Inc.

$

(5,430,403)

$

(5,888,894)

Net loss per share - basic and diluted

$

(0.11)

$

(0.12)

Weighted average shares outstanding - basic and diluted

50,689,633

50,999,408

Non-GAAP financial disclosure

Loss from operations

$

(5,167,324)

$

(5,128,164)

Depreciation & other non-cash expense

2,185,603

1,888,102

Site Impairments

865,596

723,438

Stock based compensation

299,189

475,899

Adjusted EBITDA

(1,816,936)

(2,040,725)

Grants, tax rebates, UK ECA and incentives

668,859

27,500

Net EBITDA cash outflows

$

(1,148,077)

$

(2,013,225)

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the years ended December 31,

2015

2014

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss

$

(5,430,403)

$

(5,888,894)

Loss attributable to noncontrolling interest

(455,312)

(636,464)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation

2,185,603

1,888,102

Gain attributable to distribution of nonmonetary assets to noncontrolling interest

(157,870)

-

Loss on extinguishment of debt

-

533,177

Non-cash site impairments

865,596

723,438

Provision for losses on accounts receivable

84,274

49,322

Amortization of deferred financing costs

60,807

48,176

Amortization of convertible debt premium

(96,288)

(109,332)

Decrease in fair value of warrant liability

(6,780)

(125,485)

Non-cash interest expense

1,191,333

1,319,418

Stock-based compensation

299,189

475,899

Non-cash debt conversion inducement expense

-

324,977

Changes in operating assets and liabilities:

(Increase) decrease in:

Accounts receivable and unbilled revenue

122,496

(159,881)

Due from related party

(59,767)

264,606

Inventory

41,074

1,092,408

Prepaid and other current assets

78,184

(798,263)

Increase (decrease) in:

Accounts payable

(30,282)

(265,549)

Accrued expenses and other current liabilities

69,684

20,610

Due to related party

541,058

452,589

Other long-term liabilities

(2,227)

8,486

Net cash used in operating activities

(699,631)

(782,660)

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of property and equipment

(4,061,931)

(5,649,433)

Proceeds on sale of property and equipment

4,650

-

Cash paid in connection with ADGNY reorganization

(100,000)

-

Net cash used in investing activities

(4,157,281)

(5,649,433)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from issuance of convertible debentures

-

1,450,000

Proceeds from sale of common stock, net of costs

-

3,269,275

Proceeds from sale of subsidiary common stock, net of costs

-

1,486,329

Proceeds from note payable related party

-

3,000,000

Payments made on note payable - related party

(1,000,000)

-

Purchases of common stock, net of costs

(152,377)

(450,696)

Share repurchases by subsidiary

-

(42,902)

Distributions to noncontrolling interest

(229,098)

(258,289)

Net cash provided by (used in) financing activities

(1,381,475)

8,453,717

Net increase (decrease) in cash and cash equivalents

(6,238,387)

2,021,624

Cash and cash equivalents, beginning of the period

11,825,915

9,804,291

Cash and cash equivalents, end of the period

$

5,587,528

$

11,825,915

SOURCE American DG Energy Inc.

For further information: Investor Contact: John Hatsopoulos, American DG Energy Inc., 781.622.1120, john.hatsopoulos@americandg.com; Media Contact: Bonnie Brown, American DG Energy Inc., 781.522.6020, bonnie.brown@americandg.com

American DG Energy Inc. issued this content on 29 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 19 April 2016 13:15:05 UTC

Original Document: http://investors.americandg.com/2016-03-29-American-DG-Energy-Reports-2015-Financial-Performance