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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., 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.
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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
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|
|
|
|
|
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LIABILITIES AND STOCKHOLDERS' EQUITY
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|
|
|
|
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
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|
|
6,101,029
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|
|
Commitments and contingencies (note 5)
|
|
|
|
|
Stockholders' equity:
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|
|
|
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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
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|
|
65,747
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|
|
Additional paid-in capital
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12,204,222
|
|
|
12,147,005
|
|
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Accumulated deficit
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(8,307,040)
|
|
|
(7,163,897)
|
|
|
Total stockholders' equity
|
3,962,929
|
|
|
5,048,855
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|
|
|
|
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
9,302,796
|
|
|
$
|
11,149,884
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EUROSITE POWER INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
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Three Months Ended
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|
September 30,
2015
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|
September 30,
2014
|
|
|
|
|
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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
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|
|
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)
|
|
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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
|
|
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Selling
|
359,298
|
|
|
365,884
|
|
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Engineering
|
162,008
|
|
|
71,585
|
|
|
1,149,104
|
|
|
1,040,665
|
|
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Loss from operations
|
(1,117,983)
|
|
|
(1,040,341)
|
|
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Other income (expense)
|
|
|
|
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Interest and other income
|
5,277
|
|
|
4,760
|
|
|
Interest expense, net of debt premium amortization
|
(32,625)
|
|
|
(17,630)
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|
|
Loss on extinguishment of convertible debt
|
—
|
|
|
(713,577)
|
|
|
(27,348)
|
|
|
(726,447)
|
|
|
|
|
|
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Loss before income taxes
|
(1,145,331)
|
|
|
(1,766,788)
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Benefit for income taxes
|
2,188
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|
|
—
|
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Net loss
|
$
|
(1,143,143)
|
|
|
$
|
(1,766,788)
|
|
|
|
|
|
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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)
|
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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
|
|
|
—
|
|
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Changes in operating assets and liabilities
|
|
|
|
|
(Increase) decrease in:
|
|
|
|
|
Accounts receivable
|
(51,605)
|
|
|
(16,217)
|
|
|
Value added tax receivable
|
3,025
|
|
|
(136,446)
|
|
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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)
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|
|
(377,403)
|
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|
|
|
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CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
Purchases of property, plant and equipment
|
(1,571,533)
|
|
|
(1,993,153)
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Net cash used in investing activities
|
(1,571,533)
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|
|
(1,993,153)
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|
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CASH FLOWS FROM FINANCING ACTIVITIES:
|
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|
|
|
Payment on note payable to related party
|
(1,000,000)
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|
|
3,000,000
|
|
|
Proceeds from convertible debentures
|
—
|
|
|
1,450,000
|
|
|
Net cash (used in) provided by financing activities
|
(1,000,000)
|
|
|
4,450,000
|
|
|
|
|
|
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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
|
|
|
|
|
|
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Supplemental disclosures of cash flow information:
|
|
|
|
|
Taxes paid
|
$
|
—
|
|
|
$
|
—
|
|
|
Interest paid
|
$
|
—
|
|
|
$
|
80,000
|
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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/eurosite-power-inc-reports-third-quarter-2015-financial-performance-300176424.html
SOURCE EuroSite Power Inc.
Source: PR Newswire
(November 11, 2015 - 4:00 AM EST)
News by QuoteMedia
www.quotemedia.com
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