Record Total Project Backlog Increased 14%
Sequentially, with $708M in New Awards
Q3 Results Affected by Project Delays and
Asset Downtime
Secured Over $500 Million in Financing
Commitments
Resetting Guidance to Reflect Continued
Industry Headwinds
Third Quarter 2023 Financial Highlights:
- Revenues of $335.1 million
- Net income attributable to common shareholders of $21.3
million
- GAAP EPS of $0.40
- Non-GAAP EPS of $0.40
- Adjusted EBITDA of $43.3 million
Ameresco, Inc. (NYSE:AMRC), a leading cleantech integrator
specializing in energy efficiency and renewable energy, today
announced financial results for the fiscal quarter ended September
30, 2023. The Company also furnished supplemental information in
conjunction with this press release in a Current Report on Form
8-K. The supplemental information, which includes Non-GAAP
financial measures, has been posted to the “Investors” section of
the Company’s website at www.ameresco.com. Reconciliations of
Non-GAAP measures to the appropriate GAAP measures are included
herein.
CEO George Sakellaris commented, “During the quarter we
continued to execute effectively on our long term strategic
business development activities, driving substantial year-on-year
and sequential increases in our project backlog and assets in
development, which support our long-term growth objectives. The
third quarter was impacted by a variety of factors, including
supply chain delays and administrative bottlenecks, caused the
push-out of project revenue, resulting in results that were below
our expectations. While disappointing, we expect to capture these
revenues in future quarters. Also impacting our results was greater
than expected downtime at some of our Energy Asset plants.
“Ameresco’s backlog and pipeline metrics underscore the strength
of our market positioning and our ability to gain share of an
expanding addressable market. The momentum for new projects and
asset opportunities remains strong. We are experiencing high levels
of project activity with year to date new awards of $1.7 billion,
more than double last year's $800 million. Additionally, we
increased our net assets in development by over 50 MW in the third
quarter. Even with higher interest rates we are successfully
financing our profitable asset business, securing over a half a
billion dollars in attractive project financing commitments during
the quarter.
Third Quarter Financial Results
(All financial result comparisons made are against the prior
year period unless otherwise noted.)
Total revenue of $335.1 million was below the Company’s guidance
for the quarter as the Projects business faced supply chain
headwinds as well as delays in contract conversions. Energy Asset
revenue increased 6.2% driven by continued growth in operating
assets and stronger RIN prices partially offsetting unplanned
downtime at certain of our RNG plants. O&M revenue increased
4.2% reflecting consistent growth in long-term contracts. Other
revenue decreased 3.0% as a result of a decline in our integrated
PV business due to weakness in the oil and gas market. Gross margin
of 19.0% expanded year-over-year while SG&A increased slightly
related to the addition of the Enerqos acquisition earlier in the
year. Net income attributable to common shareholders and adjusted
EBITDA were $21.3 million and $43.3 million, respectively. The GAAP
results for the quarter include a discrete tax benefit of $7.2
million related to the allocation of a prior year Section 179D tax
deduction allocated from a customer.
(in millions)
3Q 2023
3Q 2022
Revenue
Net Income (1)
Adj. EBITDA
Revenue
Net Income (1)
Adj. EBITDA
Projects
$242.7
$13.5
$16.4
$351.5
$15.9
$30.2
Energy Assets
$44.3
$5.5
$21.6
$41.7
$8.8
$22.4
O&M
$22.8
$2.4
$3.9
$21.9
$1.7
$3.1
Other
$25.4
$0.0
$1.4
$26.2
$1.0
$2.2
Total (2)
$335.1
$21.3
$43.3
$441.3
$27.4
$57.9
(1) Net Income represents net income
attributable to common shareholders.
(2) Numbers in table may not sum due to
rounding.
($ in millions)
At September 30, 2023
Awarded Project Backlog (1)
$2,513
Contracted Project Backlog
$1,188
Total Project Backlog
$3,701
12-month Contracted Backlog (2)
$765
O&M Revenue Backlog
$1,238
12-month O&M Backlog
$87
Energy Asset Visibility (3)
$2,300
Operating Energy Assets
444 MWe
Ameresco's Net Assets in Development
(4)
596 MWe
(1) Customer contracts that have not been
signed yet
(2) We define our 12-month backlog as the
estimated amount of revenues that we expect to recognize in the
next twelve months from our fully-contracted backlog
(3) Estimated contracted revenue and
incentives during PPA period plus estimated additional revenue from
operating RNG assets over a 20-year period, assuming RINs at
$1.50/gallon and brown gas at $3.50/MMBtu with $3.00/MMBtu for LCFS
on certain projects
(4) Net MWe capacity includes only our
share of any jointly owned assets
Project Highlights:
- Ameresco was awarded the DOE’s Gen4 EPSC contract which carries
a $5 billion contract ceiling over ten years, highlighting its key
role in providing energy saving performance contract services to
the federal government. On each of the previous generations of this
contract, Ameresco developed project solutions totaling more than
$2 billion in the aggregate.
- Ameresco announced another innovative floating PV installation
with Mountain Regional Water at its Signal Hill Water Treatment
Plant. The 600 KW design build project will be integrated behind
the meter allowing it to provide electricity directly to the
treatment plant.
Asset Highlights
In the Third Quarter of 2023:
- Ameresco’s Assets in Development ended the quarter at 645 MWe.
After subtracting Ameresco’s partners’ minority interests,
Ameresco’s owned capacity of Assets in Development at quarter end
was 596 MWe.
- We increased our net assets in development by 51 MW in the
third quarter mostly attributable to the acquisition of the Los
Alamitos solar and battery microgrid project as part of our staged
acquisition of Bright Canyon Energy.
Summary and Outlook
“While our long-term fundamentals remain as strong as ever, we
feel it prudent to adjust our near-term targets reflecting the
expectation that recent industry headwinds, including project
conversion delays and push-outs in asset permitting along with
labor and material shortages, will continue into 2024. We are
adjusting our 2023 quarter guidance to reflect the industry issues
that continue to impact our business such as project conversion and
asset construction pushouts. Full year 2023 guidance is included in
the table below. We now expect to place between 120 and 130 MWe of
energy assets in service for all of 2023, including the 31.5MW
solar + 20MW battery Los Alamitos microgrid project and our second
5MWe RNG plant. A third RNG plant is expected to be at mechanical
completion by the end of the year, and fully commissioned in early
2024. We now expect that our 2024 Adjusted EBITDA target will be
approximately $250 million. As usual, we will be providing detailed
2024 guidance when we report Q4 early in 2024.
While we continue to face some headwinds, our significant long
term growth opportunity has never been better with over $7.2
billion in revenue visibility and almost 600 MW of assets in
development and construction. The market demand for renewable and
clean tech solutions has never been greater,” Mr. Sakellaris
concluded.
FY 2023 Guidance
Ranges
Revenue
$1.315 billion
$1.370 billion
Gross Margin
18.5%
19.0%
Adjusted EBITDA
$160 million
$170 million
Interest Expense & Other
$39 million
$40 million
Effective Tax Rate
-30%
-25%
Non-GAAP EPS
$1.15
$1.25
The Company’s Adjusted EBITDA and Non-GAAP EPS guidance excludes
the impact of redeemable non-controlling interest activity,
one-time charges, asset impairment charges, changes in contingent
consideration, restructuring activities, as well as any related tax
impact.
Two of the three Southern California Edison projects are
currently in commissioning and are expected to achieve substantial
completion by the end of 2023. The third project, which was
significantly impacted by the heavy rainfall in California, is
expected to reach substantial completion in the first half of 2024.
Based on this we have requested an additional extension to the
maturity date for the remaining principal amount of the delayed
draw term loan A under our senior secured credit facility, which is
scheduled to mature on December 15, 2023. The remaining principal
balance is $90 million down from the original balance of $220
million.
Conference Call/Webcast Information
The Company will host a conference call today at 4:30 p.m. ET to
discuss third quarter 2023 financial results, business and
financial outlook and other business highlights. Participants may
access the earnings conference call by pre-registering here at
least fifteen minutes in advance. A live, listen-only webcast of
the conference call will also be available over the Internet.
Individuals wishing to listen can access the call through the
“Investors” section of the Company’s website at www.ameresco.com.
If you are unable to listen to the live call, an archived webcast
will be available on the Company’s website for one year.
Use of Non-GAAP Financial Measures
This press release and the accompanying tables include
references to adjusted EBITDA, Non- GAAP EPS, Non-GAAP net income
and adjusted cash from operations, which are Non-GAAP financial
measures. For a description of these Non-GAAP financial measures,
including the reasons management uses these measures, please see
the section following the accompanying tables titled “Exhibit A:
Non-GAAP Financial Measures”. For a reconciliation of these
Non-GAAP financial measures to the most directly comparable
financial measures prepared in accordance with GAAP, please see
Non-GAAP Financial Measures and Non-GAAP Financial Guidance in the
accompanying tables.
About Ameresco, Inc.
Founded in 2000, Ameresco, Inc. (NYSE:AMRC) is a leading
cleantech integrator and renewable energy asset developer, owner
and operator. Our comprehensive portfolio includes energy
efficiency, infrastructure upgrades, asset sustainability and
renewable energy solutions delivered to clients throughout North
America and Europe. Ameresco’s sustainability services in support
of clients’ pursuit of Net-Zero include upgrades to a facility’s
energy infrastructure and the development, construction, and
operation of distributed energy resources. Ameresco has
successfully completed energy saving, environmentally responsible
projects with Federal, state, and local governments, healthcare and
educational institutions, housing authorities, and commercial and
industrial customers. With its corporate headquarters in
Framingham, MA, Ameresco has more than 1,200 employees providing
local expertise in the United States, Canada, and Europe. For more
information, visit www.ameresco.com.
Safe Harbor Statement
Any statements in this press release about future expectations,
plans and prospects for Ameresco, Inc., including statements about
market conditions, pipeline, visibility, and backlog, as well as
estimated future revenues, net income, adjusted EBITDA, Non-GAAP
EPS, gross margin, capital investments, other financial guidance
and longer term outlook, statements about our financing plans
including possible asset sales, the requested extension to the
maturity date of our Delayed Draw Term Loan A, the impact of any
reorganizations, the impact the IRA, supply chain disruptions,
shortage and cost of materials and labor, and other macroeconomic
and geopolitical challenges; our expectations related to our
agreement with SCE including the impact of any delays, the impact
of a possible U.S. federal government shutdown and the U.S.
Department of Commerce’s solar panel import investigation and other
statements containing the words “projects,” “believes,”
“anticipates,” “plans,” “expects,” “will” and similar expressions,
constitute forward-looking statements within the meaning of The
Private Securities Litigation Reform Act of 1995. Actual results
may differ materially from those indicated by such forward looking
statements as a result of various important factors, including the
timing of, and ability to, enter into contracts for awarded
projects on the terms proposed or at all; the timing of work we do
on projects where we recognize revenue on a percentage of
completion basis, including the ability to perform under signed
contracts without delay and in accordance with their terms; demand
for our energy efficiency and renewable energy solutions; our
ability to complete and operate our projects on a profitable basis
and as committed to our customers; our ability to arrange financing
to fund our operations and projects and to comply with covenants in
our existing debt agreements; changes in federal, state and local
government policies and programs related to energy efficiency and
renewable energy and the fiscal health of the government; the
ability of customers to cancel or defer contracts included in our
backlog; the output and performance of our energy plants and energy
projects; the effects of our acquisitions and joint ventures;
seasonality in construction and in demand for our products and
services; a customer’s decision to delay our work on, or other
risks involved with, a particular project; availability and cost of
labor and equipment particularly given global supply chain
challenges and global trade conflicts; our reliance on third
parties for our construction and installation work; the addition of
new customers or the loss of existing customers; the impact of
macroeconomic challenges, weather related events and climate change
on our business; global supply chain challenges, component
shortages and inflationary pressures; market price of the Company's
stock prevailing from time to time; the nature of other investment
opportunities presented to the Company from time to time; the
Company's cash flows from operations; cybersecurity incidents and
breaches; regulatory and other risks inherent to constructing and
operating energy assets; risks related to our international
operation and international growth strategy; and other factors
discussed in our most recent Annual Report on Form 10-K and
Quarterly Report on Form 10-Q. The forward-looking statements
included in this press release represent our views as of the date
of this press release. We anticipate that subsequent events and
developments will cause our views to change. However, while we may
elect to update these forward-looking statements at some point in
the future, we specifically disclaim any obligation to do so. These
forward-looking statements should not be relied upon as
representing our views as of any date subsequent to the date of
this press release.
AMERESCO, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except share
amounts)
September 30,
December 31,
2023
2022
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
107,776
$
115,534
Restricted cash
56,909
20,782
Accounts receivable, net
133,070
174,009
Accounts receivable retainage, net
33,459
38,057
Costs and estimated earnings in excess of
billings
591,378
576,363
Inventory, net
13,648
14,218
Prepaid expenses and other current
assets
67,864
38,617
Income tax receivable
7,219
7,746
Project development costs, net
18,800
16,025
Total current assets
1,030,123
1,001,351
Federal ESPC receivable
529,382
509,507
Property and equipment, net
17,551
15,707
Energy assets, net
1,656,585
1,181,525
Deferred income tax assets, net
9,439
3,045
Goodwill, net
77,343
70,633
Intangible assets, net
7,347
4,693
Operating lease assets
52,857
38,224
Restricted cash, non-current portion
11,010
13,572
Other assets
69,356
38,564
Total assets
$
3,460,993
$
2,876,821
LIABILITIES, REDEEMABLE NON-CONTROLLING
INTERESTS AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portions of long-term debt and
financing lease liabilities, net
$
409,906
$
331,479
Accounts payable
328,155
349,126
Accrued expenses and other current
liabilities
93,584
89,166
Current portions of operating lease
liabilities
12,703
5,829
Billings in excess of cost and estimated
earnings
36,880
34,796
Income taxes payable
1,114
1,672
Total current liabilities
882,342
812,068
Long-term debt and financing lease
liabilities, net of current portion, unamortized discount and debt
issuance costs
1,022,256
568,635
Federal ESPC liabilities
486,019
478,497
Deferred income tax liabilities, net
4,134
9,181
Deferred grant income
7,070
7,590
Long-term operating lease liabilities, net
of current portion
38,806
31,703
Other liabilities
73,965
49,493
Redeemable non-controlling interests,
net
$
47,275
$
46,623
Stockholders' equity:
Preferred stock, $0.0001 par value,
5,000,000 shares authorized, no shares issued and outstanding at
September 30, 2023 and December 31, 2022
—
—
Class A common stock, $0.0001 par value,
500,000,000 shares authorized, 36,336,341 shares issued and
34,234,546 shares outstanding at September 30, 2023, 36,050,157
shares issued and 33,948,362 shares outstanding at December 31,
2022
3
3
Class B common stock, $0.0001 par value,
144,000,000 shares authorized, 18,000,000 shares issued and
outstanding at September 30, 2023 and December 31, 2022
2
2
Additional paid-in capital
321,821
306,314
Retained earnings
562,203
533,549
Accumulated other comprehensive loss,
net
(3,735
)
(4,051
)
Treasury stock, at cost, 2,101,795 shares
at September 30, 2023 and December 31, 2022
(11,788
)
(11,788
)
Stockholders' equity before
non-controlling interest
868,506
824,029
Non-controlling interests
30,620
49,002
Total stockholders’ equity
899,126
873,031
Total liabilities, redeemable
non-controlling interests and stockholders' equity
$
3,460,993
$
2,876,821
AMERESCO, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(In thousands, except per
share amounts) (Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Revenues
$
335,149
$
441,296
$
933,265
$
1,492,695
Cost of revenues
271,493
361,740
761,012
1,263,458
Gross profit
63,656
79,556
172,253
229,237
Earnings from unconsolidated entities
526
488
1,356
1,477
Selling, general and administrative
expenses
42,752
41,106
125,466
120,036
Operating income
21,430
38,938
48,143
110,678
Other expenses, net
10,642
7,546
27,883
19,876
Income before income taxes
10,788
31,392
20,260
90,802
Income tax (benefit) provision
(10,054
)
3,657
(10,552
)
10,896
Net income
20,842
27,735
30,812
79,906
Net loss (income) attributable to
non-controlling interests and redeemable non-controlling
interests
423
(344
)
(2,077
)
(2,915
)
Net income attributable to common
shareholders
$
21,265
$
27,391
$
28,735
$
76,991
Net income per share attributable to
common shareholders:
Basic
$
0.41
$
0.53
$
0.55
$
1.48
Diluted
$
0.40
$
0.51
$
0.54
$
1.44
Weighted average common shares
outstanding:
Basic
52,209
51,869
52,104
51,810
Diluted
53,300
53,297
53,259
53,252
AMERESCO, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (in thousands) (Unaudited)
Nine Months Ended September
30,
2023
2022
Cash flows from operating activities:
Net income
$
30,812
$
79,906
Adjustments to reconcile net income to net
cash flows from operating activities:
Depreciation of energy assets, net
42,847
36,911
Depreciation of property and equipment
2,849
2,057
Increase in contingent consideration
705
814
Accretion of ARO liabilities
194
108
Amortization of debt discount and debt
issuance costs
3,407
2,869
Amortization of intangible assets
1,681
1,462
Provision for bad debts
637
363
Loss on write-off of long-lived assets
18
888
Earnings from unconsolidated entities
(1,356
)
(1,477
)
Net gain from derivatives
(3,306
)
(225
)
Stock-based compensation expense
12,318
10,837
Deferred income taxes, net
(13,089
)
4,927
Unrealized foreign exchange loss
1,148
466
Changes in operating assets and
liabilities:
Accounts receivable
58,135
(47,257
)
Accounts receivable retainage
4,589
225
Federal ESPC receivable
(143,647
)
(180,249
)
Inventory, net
570
(4,287
)
Costs and estimated earnings in excess of
billings
5,260
(325,057
)
Prepaid expenses and other current
assets
(10,925
)
864
Project development costs
(4,638
)
(823
)
Other assets
(2,080
)
(10,254
)
Accounts payable, accrued expenses and
other current liabilities
(38,444
)
143,026
Billings in excess of cost and estimated
earnings
10,104
7,802
Other liabilities
1,200
(436
)
Income taxes receivable, net
590
3,371
Cash flows from operating activities
(40,421
)
(273,169
)
Cash flows from investing activities:
Purchases of property and equipment
(4,597
)
(3,981
)
Capital investment in energy assets
(445,540
)
(182,119
)
Capital investment in major maintenance of
energy assets
(8,024
)
(16,106
)
Asset acquisition, net of cash
acquired
6,206
—
Contributions to equity investments
(3,489
)
—
Acquisitions, net of cash received
(9,183
)
—
Loans to joint venture investments
(566
)
(458
)
Cash flows from investing activities
(465,193
)
(202,664
)
Cash flows from financing activities:
Payments of debt discount and debt
issuance costs
(8,635
)
(2,885
)
Proceeds from exercises of options and
ESPP
3,384
4,430
(Payments on) proceeds from senior secured
revolving credit facility, net
(115,000
)
139,000
Proceeds from long-term debt
financings
728,600
331,086
Proceeds from Federal ESPC projects
107,303
173,865
Net proceeds from energy asset receivable
financing arrangements
12,514
7,675
Contributions from non-controlling
interests
499
13,148
Distributions to non-controlling
interest
(20,521
)
—
Distributions to redeemable
non-controlling interests, net
(494
)
(784
)
Payment on seller's promissory note
(12,500
)
—
Payments on long-term debt and financing
leases
(162,749
)
(111,341
)
Cash flows from financing activities
532,401
554,194
Effect of exchange rate changes on
cash
(980
)
(1,857
)
Net increase in cash, cash equivalents,
and restricted cash
25,807
76,504
Cash, cash equivalents, and restricted
cash, beginning of period
149,888
87,054
Cash, cash equivalents, and restricted
cash, end of period
$
175,695
$
163,558
Non-GAAP Financial Measures (Unaudited, in thousands)
Three Months Ended September
30, 2023
Adjusted EBITDA:
Projects
Energy Assets
O&M
Other
Consolidated
Net income (loss) attributable to common
shareholders
$
13,465
$
5,454
$
2,393
$
(47
)
$
21,265
Impact from redeemable non-controlling
interests
—
(587
)
—
—
(587
)
Plus (less): Income tax provision
(benefit)
(6,953
)
(3,766
)
717
(52
)
(10,054
)
Plus: Other expenses, net
5,042
4,970
227
403
10,642
Plus: Depreciation and amortization
1,134
14,902
311
707
17,054
Plus: Stock-based compensation
3,128
570
293
328
4,319
Plus: Contingent consideration,
restructuring and other charges
595
14
4
52
665
Adjusted EBITDA
$
16,411
$
21,557
$
3,945
$
1,391
$
43,304
Adjusted EBITDA margin
6.8
%
48.7
%
17.3
%
5.5
%
12.9
%
Three Months Ended September
30, 2022
Adjusted EBITDA:
Projects
Energy Assets
O&M
Other
Consolidated
Net income attributable to common
shareholders
$
15,909
$
8,827
$
1,667
$
988
$
27,391
Impact from redeemable non-controlling
interests
—
344
—
—
344
Plus (less): Income tax provision
(benefit)
6,336
(3,952
)
777
496
3,657
Plus: Other expenses, net
3,047
4,199
136
164
7,546
Plus: Depreciation and amortization
745
12,649
292
342
14,028
Plus: Stock-based compensation
2,892
343
180
216
3,631
Plus: Restructuring and other changes
1,255
5
2
2
1,264
Adjusted EBITDA
$
30,184
$
22,415
$
3,054
$
2,208
$
57,861
Adjusted EBITDA margin
8.6
%
53.8
%
14.0
%
8.4
%
13.1
%
Nine Months Ended September
30, 2023
Adjusted EBITDA:
Projects
Energy Assets
O&M
Other
Consolidated
Net income attributable to common
shareholders
$
12,114
$
11,659
$
3,820
$
1,142
$
28,735
Impact from redeemable non-controlling
interests
—
869
—
—
869
Plus (less): Income tax provision
(benefit)
(8,405
)
(3,920
)
1,336
437
(10,552
)
Plus: Other expenses, net
10,127
16,150
559
1,047
27,883
Plus: Depreciation and amortization
2,901
42,150
923
1,403
47,377
Plus: Stock-based compensation
8,629
1,783
904
1,002
12,318
Plus: Contingent consideration,
restructuring and other charges
1,147
48
15
211
1,421
Adjusted EBITDA
$
26,513
$
68,739
$
7,557
$
5,242
$
108,051
Adjusted EBITDA margin
4.0
%
50.9
%
11.1
%
7.0
%
11.6
%
Nine Months Ended September
30, 2022
Adjusted EBITDA:
Projects
Energy Assets
O&M
Other
Consolidated
Net income attributable to common
shareholders
$
41,855
$
25,583
$
6,725
$
2,828
$
76,991
Impact from redeemable non-controlling
interests
—
2,915
—
—
2,915
Plus (less): Income tax provision
(benefit)
15,315
(8,036
)
2,225
1,392
10,896
Plus: Other expenses, net
8,190
10,936
355
395
19,876
Plus: Depreciation and amortization
2,319
36,021
913
1,177
40,430
Plus: Stock-based compensation
8,936
902
466
533
10,837
Plus: Restructuring and other charges
1,243
(21
)
14
60
1,296
Adjusted EBITDA
$
77,858
$
68,300
$
10,698
$
6,385
$
163,241
Adjusted EBITDA margin
6.3
%
55.5
%
16.9
%
8.8
%
10.9
%
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Non-GAAP net income and EPS:
Net income attributable to common
shareholders
$
21,265
$
27,391
$
28,735
$
76,991
Adjustment for accretion of tax equity
financing fees
(26
)
(27
)
(81
)
(81
)
Impact from redeemable non-controlling
interests
(587
)
344
869
2,915
Plus: Contingent consideration,
restructuring and other charges
665
1,264
1,421
1,296
(Less) Plus: Income tax effect of Non-GAAP
adjustments
(173
)
(329
)
(369
)
(338
)
Non-GAAP net income
21,144
28,643
30,575
80,783
Diluted net income per common share
$
0.40
$
0.51
$
0.54
$
1.44
Effect of adjustments to net income
—
0.03
0.03
0.08
Non-GAAP EPS
$
0.40
$
0.54
$
0.57
$
1.52
Adjusted cash from operations:
Cash flows from operating activities
$
(6,572
)
$
34,674
$
(40,421
)
$
(273,169
)
Plus: proceeds from Federal ESPC
projects
30,604
52,134
107,303
173,865
Adjusted cash from operations
$
24,032
$
86,808
$
66,882
$
(99,304
)
Other Financial Measures (Unaudited, in thousands)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
New contracts and awards:
New contracts
$
341,140
$
282,500
$
799,380
$
657,800
New awards (1)
$
708,470
$
147,440
$
1,673,625
$
808,540
(1)
Represents estimated future revenues from
projects that have been awarded, though the contracts have not yet
been signed
Non-GAAP Financial Guidance
Adjusted earnings before
interest, taxes, depreciation and amortization (adjusted
EBITDA):
Year Ended December 31,
2023
Low
High
Operating income (1)
$84 million
$93 million
Depreciation and amortization
$65 million
$65 million
Stock-based compensation
$11 million
$12 million
Adjusted EBITDA
$160 million
$170 million
(1) Although net income is the most
directly comparable GAAP measure, this table reconciles adjusted
EBITDA to operating income because we are not able to calculate
forward-looking net income without unreasonable efforts due to
significant uncertainties with respect to the impact of accounting
for our redeemable non-controlling interests and taxes.
Exhibit A: Non-GAAP Financial
Measures
We use the Non-GAAP financial measures defined and discussed
below to provide investors and others with useful supplemental
information to our financial results prepared in accordance with
GAAP. These Non-GAAP financial measures should not be considered as
an alternative to any measure of financial performance calculated
and presented in accordance with GAAP. For a reconciliation of
these Non-GAAP measures to the most directly comparable financial
measures prepared in accordance with GAAP, please see Non-GAAP
Financial Measures and Non-GAAP Financial Guidance in the tables
above.
We understand that, although measures similar to these Non-GAAP
financial measures are frequently used by investors and securities
analysts in their evaluation of companies, they have limitations as
analytical tools, and investors should not consider them in
isolation or as a substitute for the most directly comparable GAAP
financial measures or an analysis of our results of operations as
reported under GAAP. To properly and prudently evaluate our
business, we encourage investors to review our GAAP financial
statements included above, and not to rely on any single financial
measure to evaluate our business.
Adjusted EBITDA and Adjusted EBITDA Margin
We define adjusted EBITDA as net income attributable to common
shareholders, including impact from redeemable non-controlling
interests, before income tax (benefit) provision, other expenses
net, depreciation, amortization of intangible assets, accretion of
asset retirement obligations, contingent consideration expense,
stock-based compensation expense, energy asset impairment,
restructuring and other charges, gain or loss on sale of equity
investment, and gain or loss upon deconsolidation of a variable
interest entity. We believe adjusted EBITDA is useful to investors
in evaluating our operating performance for the following reasons:
adjusted EBITDA and similar Non-GAAP measures are widely used by
investors to measure a company's operating performance without
regard to items that can vary substantially from company to company
depending upon financing and accounting methods, book values of
assets, capital structures and the methods by which assets were
acquired; securities analysts often use adjusted EBITDA and similar
Non-GAAP measures as supplemental measures to evaluate the overall
operating performance of companies; and by comparing our adjusted
EBITDA in different historical periods, investors can evaluate our
operating results without the additional variations of depreciation
and amortization expense, accretion of asset retirement
obligations, contingent consideration expense, stock-based
compensation expense, impact from redeemable non-controlling
interests, restructuring and asset impairment charges. We define
adjusted EBITDA margin as adjusted EBITDA stated as a percentage of
revenue.
Our management uses adjusted EBITDA and adjusted EBITDA margin
as measures of operating performance, because they do not include
the impact of items that we do not consider indicative of our core
operating performance; for planning purposes, including the
preparation of our annual operating budget; to allocate resources
to enhance the financial performance of the business; to evaluate
the effectiveness of our business strategies; and in communications
with the board of directors and investors concerning our financial
performance.
Non-GAAP Net Income and EPS
We define Non-GAAP net income and earnings per share (EPS) to
exclude certain discrete items that management does not consider
representative of our ongoing operations, including energy asset
impairment, restructuring and other charges, impact from redeemable
non-controlling interest, gain or loss on sale of equity
investment, and gain or loss upon deconsolidation of a variable
interest entity. We consider Non-GAAP net income and Non-GAAP EPS
to be important indicators of our operational strength and
performance of our business because they eliminate the effects of
events that are not part of the Company's core operations.
Adjusted Cash from Operations
We define adjusted cash from operations as cash flows from
operating activities plus proceeds from Federal ESPC projects. Cash
received in payment of Federal ESPC projects is treated as a
financing cash flow under GAAP due to the unusual financing
structure for these projects. These cash flows, however, correspond
to the revenue generated by these projects. Thus, we believe that
adjusting operating cash flow to include the cash generated by our
Federal ESPC projects provides investors with a useful measure for
evaluating the cash generating ability of our core operating
business. Our management uses adjusted cash from operations as a
measure of liquidity because it captures all sources of cash
associated with our revenue generated by operations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231106000833/en/
Media Relations Leila Dillon, 508.661.2264,
news@ameresco.com
Investor Relations Eric Prouty, AdvisIRy Partners, 212.750.5800,
eric.prouty@advisiry.com
Lynn Morgen, AdvisIRy Partners, 212.750.5800,
lynn.morgen@advisiry.com
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