Cash Inflows Were $218,876 Excluding Eurosite Power; Consolidated Cash Inflows Were $146,551
August 10, 2011
American DG Energy Inc. (NYSE Amex: ADGE), a leading On Site Utility, offering clean electricity, heat, hot water and cooling solutions to hospitality, healthcare, housing and athletic facilities, reported revenues of $1,480,461 in the second quarter of 2011, compared to $1,239,267 in the second quarter of 2010. GAAP diluted loss per share (EPS) was $(0.01) in 2011 and 2010 and GAAP operating income was a loss of $(522,761) in 2011, compared to a loss of $(448,687) in 2010.
Second Quarter 2011 Highlights:
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Energy revenue increased by 32.4% to $1,435,025 compared to $1,083,598 for the same period in 2010 primarily due to the installation of additional energy systems and the improved efficiency of our fleet.
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Energy gross profit margin without depreciation was 38.3% compared to 39.7% for the same period in 2010. The natural gas price, a key component in calculating our hot water revenue, continues to be considerably lower this quarter compared to the same period in 2010.
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Our total cash inflows were $218,876 excluding our subsidiary EuroSite Power Inc. and our consolidated cash inflows were $146,551.
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Our installed base of CHP systems surpassed 5,300 KW.
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Our installed base increased by 6 new energy systems from a year ago bringing the total number of energy systems operating to 77 compared to 71 in the second quarter of 2010. The total value of our current On-Site Utility energy agreements is approximately $152 million.
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Our backlog consisted of 9 energy systems.
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We received $219,589 in rebates and incentives.
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In May we issued $12,500,000 of Senior Unsecured Convertible Debentures, Due 2018, to an existing European investor and to John N. Hatsopoulos, our Chief Executive Officer. Mr. Hatsopoulos had a revolving line of credit agreement with the company with a balance of $2,400,000. That balance was converted into the debentures and the revolving line of credit agreement was canceled.
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We finished the quarter with approximately $13.4 million in cash.
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In June we reached an agreement to supply clean energy from a 100 kW combined heat and power system to Club Fit Jefferson Valley, a premier health and fitness facility located in Jefferson Valley, New York.
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We hired Mr. William Beach as Vice President of Business Development.
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We raised $300,000 from the sale of common stock of EuroSite Power Inc., our subsidiary whose business focus is to introduce the On-Site Utility solution to the United Kingdom and Europe.
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We added Mr. Bruno Meier, the retired Chief Executive Officer of Rolex, S.A, as a new member to the EuroSite Power Inc. Board of Directors.
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We hired Mr. Paul Hamblyn, as Managing Director of EuroSite Power Inc., to start our European operations in the United Kingdom.
Recent Highlights:
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In August we announced the startup of two more energy systems at Stevens Institute of Technology, a premier technological university, located in Hoboken, New Jersey. The addition of these two 75kW combined heat and power systems, located at Stevens Central Plant, brought the total number of energy systems we own and operate at the university to nine.
“We are excited that we were able to raise a significant amount of funds to further grow our business. These funds are being used to build our sales and technical teams in the U.S. and Europe to aggressively pursue large customers,”
said John N. Hatsopoulos, Chief Executive Officer of American DG Energy.
American DG Energy will hold its earnings conference call today, August 10, 2011 at 11:00 a.m. Eastern Time. To listen, call (800) 860-2442 within the U.S., or (412) 858-4600 outside the U.S. 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 the Company web site at www.americandg.com in the “Investors” section under "News Releases.” The earnings call will be available for playback through Wednesday, August 17, 2011. 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 10002266.
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. 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 local utilities – without any capital or start-up costs to the energy user – through its 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.