American Dg Energy (ADGE) saw its loss narrow to $0.34 million, or $0.01 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $1.02 million, or $0.02 a share.
Revenue during the quarter grew 3.02 percent to $1.58 million from $1.53 million in the previous year period. Gross margin for the quarter expanded 413 basis points over the previous year period to 22.28 percent. Operating margin for the quarter stood at negative 13.59 percent as compared to a negative 29.59 percent for the previous year period.
Operating loss for the quarter was $0.21 million, compared with an operating loss of $0.45 million in the previous year period.
Speaking about recent company developments, co-chief executive officer Benjamin Locke noted, "Management has taken a number of steps over the past several quarters to secure the future of the company, culminating in the recently announced planned merger with longtime affiliate Tecogen Inc. Our sites improvement initiative, cost-reduction efforts, near-elimination of debt outstanding, and deconsolidation with European subsidiary EuroSite Power all cleared the slate for a new beginning for the Company and the team at American DG deserves congratulations for their tireless efforts over the past 18-plus months."
Operating cash flow remains negativeAmerican Dg Energy has spent $0.62 million cash to meet operating activities during the nine month period as against cash outgo of $0.23 million in the last year period. The company has spent $1.11 million cash to meet investing activities during the nine month period as against cash outgo of $1.84 million in the last year period.
The company has spent $0.08 million cash to carry out financing activities during the nine month period as against cash outgo of $0.34 million in the last year period.
Cash and cash equivalents stood at $3.19 million as on Sep. 30, 2016, down 53.37 percent or $3.65 million from $6.84 million on Sep. 30, 2015.
Working capital declines
American Dg Energy has witnessed a decline in the working capital over the last year. It stood at $4.53 million as at Sep. 30, 2016, down 15.13 percent or $0.81 million from $5.34 million on Sep. 30, 2015. Current ratio was at 6.76 as on Sep. 30, 2016, up from 2.26 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 61 days for the quarter from 96 days for the last year period. Days sales outstanding went down to 57 days for the quarter compared with 66 days for the same period last year.
Days inventory outstanding has decreased to 32 days for the quarter compared with 79 days for the previous year period. At the same time, days payable outstanding went down to 27 days for the quarter from 48 for the same period last year.
Debt comes down significantlyAmerican Dg Energy has recorded a decline in total debt over the last one year. It stood at $3.01 million as on Sep. 30, 2016, down 83.60 percent or $15.32 million from $18.33 million on Sep. 30, 2015. American Dg Energy has recorded a decline in long-term debt over the last one year. It stood at $3.01 million as on Sep. 30, 2016, down 83.60 percent or $15.32 million from $18.33 million on Sep. 30, 2015. Total debt was 12.71 percent of total assets as on Sep. 30, 2016, compared with 51.14 percent on Sep. 30, 2015. Debt to equity ratio was at 0.15 as on Sep. 30, 2016, down from 1.38 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
