EuroSite Power Inc. Reports Third Quarter 2015 Financial Performance

News provided by

EuroSite Power Inc.

11 Nov, 2015, 09:00 GMT

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

WALTHAM. Massachusetts, Nov. 11, 2015 /PRNewswire/ -- 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 totalling 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 totalling 2,878kW of installed capacity with a total contract value of $81 million.
  • The total number of systems now under contract is 36 totalling 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 dialling 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.

Investor Contact:                  

Media Contact:

John N. Hatsopoulos

Ariel Babcock, CFA

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.

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:


Payment on note payable to related party

(1,000,000)

3,000,000

Proceeds from convertible debentures

—

1,450,000

Net cash (used in) provided by financing activities

(1,000,000)

4,450,000




Net (decrease) increase 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

Related Links

http://www.eurositepower.co.uk