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 overall revenues of $1,239,267 in the second quarter of 2010, compared to revenues of $1,079,933 in the second quarter of 2009. GAAP diluted loss per share (EPS) were $(0.01) in the second quarter of 2010, compared to $(0.02) for the same period in 2009, and GAAP operating income was a loss of $(448,687) in the second quarter of 2010, compared to a loss of $(543,127) for the same period in 2009.
Second Quarter 2010 Highlights:
- Revenue increased by 15% compared to the second quarter of 2009.
- Gross profit margin without depreciation increased to approximately 40% primarily due to our revenue increase in chilled water or cooling and the lower price of natural gas. However, natural gas pricing, a key component in calculating our thermal or hot water revenue, was significantly lower in the second quarter of 2010. When comparing rates in the National Grid natural gas territory, which is our largest market, the price of natural gas was approximately 20% lower in the second quarter of 2010.
- Turnkey installation revenue increased to $155,669 compared to $30,473 for the same period in 2009.
- We installed 7 new energy systems during the second quarter bringing the total number of energy systems operating to 71. The total value of our current On-Site Utility energy agreements is approximately $152 million, based on the current price of energy and does not include our backlog which currently consists of 15 energy systems.
- We received $159,619 in rebates and incentives in the second quarter of 2010.
- We finished the quarter with $1.2 million in cash, cash equivalents and short-term investments.
- Adjusted net loss was significantly reduced to $171,683 compared to $274,971 during the second quarter of 2009.
- We currently have approximately 200 proposals submitted to customers in our core target markets (healthcare, hospitality and large multi-family residential).
- We added Ms. Deanna M. Petersen as a new member to our Board of Directors.
- We joined the Russell 3000 Index which measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable U.S. equity market.
- We reached an agreement to supply clean energy to Doral Arrowwood Hotel and Conference Center in Rye Brook, New York using a 375 kW combined heat and power system.
- We reached an agreement to expand our existing installations to additional buildings at Stevens Institute of Technology in Hoboken, New Jersey by 375 kW plus a chiller and boiler.
Recent Highlights
- On July 12, we announced the formation of EuroSite Power Inc., a subsidiary of American DG Energy Inc., to introduce the On-Site Utility solution into the European market.
- We raised $1 million from an accredited investor by selling restricted Common Stock at $2.50 per share and granted the investor a two-year warrant to purchase 400,000 shares of Common Stock of EuroSite Power Inc. at $1.00 per share.
“We are pleased to see our revenues increased by 15%, as a result of more energy production from our chiller business in the second quarter of 2010, compared to the second quarter of 2009,” said John N. Hatsopoulos, Chief Executive Officer of American DG Energy. “In addition, our seven new installations during the quarter will immediately impact our revenue and profit going forward.”
American DG Energy will hold its earnings conference call today, August 3, at 10:00 a.m. Eastern Time. To listen, call (800) 860 2442 within the U.S., (866) 605-3852 from Canada or (412) 858-4600 from other international locations. 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 Tuesday, August 10, 2010. To listen to the playback, call (877) 344 7529 within the U.S. or (412) 317-0088 outside the U.S. and use Playback Code 442952.
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.