EuroSite Power Inc. Reports First Quarter 2015 Financial Performance

WALTHAM, Mass., May 13, 2015 /PRNewswire/ -- EuroSite Power Inc. (OTCQB: EUSP), a subsidiary of American DG Energy Inc. (NYSE MKT: ADGE), a leading 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 $548,054 for the first quarter of 2015, compared to $432,184 for the first quarter of 2014, an increase of $115,870 or 27%. GAAP diluted loss per share (EPS) was $0.01 for the first quarter of 2015, compared with a loss per share of $0.02 for the first quarter of 2014.

Major Highlights:

Financial

• Total revenue increased by 27% to $548,054 for Q1 2015, compared to $432,184 for Q1 2014.  
• As a result of our focus on productivity, total non-GAAP gross profit margin excluding depreciation improved to 24.3% in Q1 2015, versus 18.6% for Q4 2014 and versus 23.9% for the year ago period.
• In April, just after the quarter, we received GBP 411,331 or approximately $625,223, for Enhanced Capital Allowance (ECA) from the UK government. ECA is a cash energy tax incentive for energy-saving plant and machinery, which includes combined heat and power systems.
• The total revenue value of our On-Site Utility energy agreements since inception is approximately $95,536,600 using various market assumptions and estimates made by the Company.

Sales and Operations

• During Q1 2015 we reached agreements for:
  • A 125 kW CHP system with Kingfisher Leisure Centre, Sudbury, UK.
  • A 125 kW CHP system with Basingstoke Sports Centre, UK.
• During Q1 2015 we brought into operation a total of 4 additional systems:
  • 100 kW CHP systems for FJB Hotels installed at both their Haven Hotel and Sandbanks Hotel properties in Poole, UK.
  • A second 100 kW CHP system at the Wentworth Golf Club, home of the BMW PGA Championship
  • The third CHP system installed as part of our contract with Topland Group for seven systems – 120 kW unit at Menzies Cambridge, UK.
• The total number of system now under contract is 34 totaling 3,460 kW.
• In total we currently operate 25 systems totaling 2,406kW of installed capacity with a total contract value of $69.4 million.
• Our backlog at the end of Q 1 2015 was 9 systems totaling 1,054 kW with a total contract value of $26.1 million.
• Total energy production increased by 47% to 7,114,041 kWh in Q1 2015 compared to Q1 2014. 

EuroSite Power Inc. will hold its earnings conference call today, May 13, 2015 at 9:00 a.m. Eastern Time. To listen, call [phone] within the U.S., [phone] from Canada, or [phone] 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 Friday, June 12, 2015.  To listen to the playback, call [phone] within the U.S., [phone] from Canada or [phone] outside the U.S. and use Conference Number 10065464.

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). Both companies supply low-cost energy to their 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 conventional energy suppliers – without any capital or start-up costs to the energy user – through its 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.

 

 

CONSOLIDATED BALANCE SHEETS
(unaudited)
	March 31, 2015		December 31, 2014
ASSETS
Current assets:
Cash and cash equivalents	$     2,020,883		$       3,776,852
Accounts receivable	187,686		152,664
Value added tax receivable	32,521		84,458
UK tax energy incentives receivable	608,051		636,661
Inventory	104,056		99,925
Other current assets	35,487		33,655
Total current assets	2,988,684		4,784,215
Property, plant and equipment, net	6,805,089		6,348,905
Other assets, long-term	15,324		16,764
TOTAL ASSETS	$     9,809,097		$     11,149,884
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$        425,794		$          338,067
Accrued expenses and other current liabilities	112,381		130,252
Due to related party	12,963		-
Total current liabilities	551,138		468,319
Long-term liabilities:
Convertible debentures	1,630,399		1,645,444
Convertible debentures Due to related parties	978,239		987,266
Loan - related party	2,000,000		3,000,000
Total liabilities	5,159,776		6,101,029
Stockholders' equity:
Common Stock	65,747		65,747
Additional paid-in capital	12,177,868		12,147,005
Accumulated deficit	(7,594,294)		(7,163,897)
Total stockholders' equity	4,649,321		5,048,855
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$     9,809,097		$     11,149,884

 

                               

CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
	Three Months Ended
	March 31, 2015		March 31, 2014
Revenues
Energy revenues	$            530,648		$            430,778
Turnkey & other revenues	17,406		1,406
	548,054		432,184
Cost of sales
Fuel, maintenance and installation	414,972		328,741
Depreciation expense	90,392		70,696
	505,364		399,437
Gross profit	42,690		32,747
Operating expenses
General and administrative	303,340		193,174
Selling	129,449		116,114
Engineering	30,718		23,986
	463,507		333,274
Loss from operations	(420,817)		(300,527)
Other income (expense)
Interest and other income	2,697		1,213
Interest expense	(12,277)		(21,778)
Loss on conversion of debt	-		(713,577)
	(9,580)		(734,142)
Loss before income taxes	(430,397)		(1,034,669)
Provision for income taxes	-		-
Net loss	$          (430,397)		$       (1,034,669)
Net loss per share - basic and diluted	$                (0.01)		$                (0.02)
Weighted-average shares outstanding - basic and diluted	65,747,100		56,747,100
Non-GAAP financial disclosure
Loss from operations	$          (420,817)		$          (300,527)
Depreciation expense	90,987		72,419
Stock based compensation	30,863		47,896
Adjusted EBITDA	(298,967)		(180,212)
Grants, tax rebates and incentives	-		-
Total cash outflows	$          (298,967)		$          (180,212)

 

 

CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
	Three Months Ended
	March 31, 2015		March 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$     (430,397)		$ (1,034,669)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	90,987		72,419
Loss on extinguishment of debt	-		713,577
Amortization of convertible debt premium	(24,072)		(18,222)
Amortization of deferred financing	-		2,509
Stock-based compensation	30,863		47,896
Changes in operating assets and liabilities
(Increase) decrease in:
Accounts receivable	(35,022)		36,670
Value added tax receivable	80,547		(23,615)
Inventory	(4,131)		371,545
Prepaid and other current assets	(1,832)		(27,505)
Other long term assets	1,440		-
Increase (decrease) in:
Accounts payable	87,727		93,757
Due to related party	12,963		15,633
Accrued expenses and other current liabilities	(17,871)		28,709
Net cash (used in) provided operating activities	(208,798)		278,704
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(547,171)		(595,270)
Net cash used in investing activities	(547,171)		(595,270)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment on related party loan	(1,000,000)		-
Net cash used in financing activities	(1,000,000)		-
Net decrease in cash and cash equivalents	(1,755,969)		(316,566)
Cash and cash equivalents, beginning of the period	3,776,852		1,519,602
Cash and cash equivalents, end of the period	$    2,020,883		$   1,203,036

 

 

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SOURCE EuroSite Power Inc.

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