Second Quarter 2017 Financial Highlights (year over
year):
- Revenues of $166.7 million, compared to
$162.6 million
- Net income of $5.8 million, compared to
$2.0 million
- Net income per diluted share of $0.13,
compared to $0.04
- Adjusted EBITDA of $15.4 million, up
17%
- Non-GAAP net income per diluted share
of $0.13, up 63%
- Total project backlog of $1.6 billion,
up 6%
- Fully contracted backlog of $631.4
million, up 45%
Ameresco, Inc. (NYSE:AMRC), a leading energy efficiency and
renewable energy company, today announced financial results for the
fiscal quarter ended June 30, 2017. The Company has also
furnished supplemental information in conjunction with this press
release in a Current Report on Form 8-K. The supplemental
information includes non-GAAP financial metrics, and has been
posted to the “Investor Relations” section of the Company’s website
at www.ameresco.com.
Management Commentary
“We had a solid quarter, with profit growth on track to meet the
expectations we set out at the start of the year,” said George
Sakellaris, Chief Executive Officer. “The results highlight
several attractive elements of Ameresco’s business model, including
visibility, larger more complex projects, geographic penetration
and an expanding portfolio of energy-producing assets.”
Sakellaris continued, “In particular, our backlog gives us a
good view to project revenues out two to four years. Combined
with the natural visibility of our recurring revenue streams of
energy sales and operations and maintenance, we believe we have an
outstanding business model that delivers growth, profit and
visibility.”
Financial Results
(All financial result comparisons made are against the prior
year period unless otherwise noted.)
Second Quarter 2017
Revenues were $166.7 million, compared to $162.6 million.
Operating income was $8.8 million, compared to operating income of
$4.7 million.
Net income was $5.8 million compared to $2.0 million, and net
income per diluted share was $0.13 compared to $0.04. Non-GAAP EPS
was $0.13, compared to $0.08.
Adjusted EBITDA, a non-GAAP financial measure, was $15.4
million, compared to $13.2 million.
Additional Second Quarter 2017 Operating
Highlights:
- Cash flows used in operating activities
were $19.6 million, compared to $24.7 million, and adjusted cash
from operations, a non-GAAP financial measure, was an inflow of
$19.3 million, compared to an outflow of $2.3 million.
- Total project backlog was $1,644.9
million and consisted of:
- $631.4 million of fully-contracted
backlog, representing signed customer contracts for installation or
construction of projects, which we expect to convert into revenue
over the next two to four years, on average; and
- $1,013.5 million of awarded projects,
representing projects in development for which we do not have
signed contracts.
- Assets in development were $202.4
million or 95 MWe.
FY 2017 Guidance
Based on year to date performance and expectations for the
remainder of 2017, Ameresco re-affirms its full year 2017 outlook.
Ameresco expects to earn total revenue in the range of $665 million
to $700 million in 2017. The Company also expects adjusted EBITDA
for 2017 to be in the range of $60 million to $65 million and net
income per diluted share to be in the range of $0.37 to $0.43 for
2017. This guidance excludes the impact of any non-controlling
interest activity and our restructuring activities.
Share Repurchase Program
Through the end of the second quarter, the Company repurchased
1,719,242 shares of its Class A common stock for $8.6 million. The
Company has approximately $6.4 million of remaining authorization
under the share repurchase program it announced in May 2016.
Webcast Reminder
The Company will host a conference call today at 8:30 a.m. ET
today to discuss results.
The conference call will be available via the following dial in
numbers:
- U.S. Participants: Dial 1-877-359-9508
(Access Code: 53778704)
- International Participants: Dial
1-224-357-2393 (Access Code: 53778704)
Participants are advised to dial into the call at least ten
minutes prior to register.
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 “Investor Relations” section of the
Company’s website at www.ameresco.com.
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
Other Non-GAAP Disclosures and Non-GAAP Financial Guidance in the
accompanying tables.
About Ameresco, Inc.
Founded in 2000, Ameresco, Inc. (NYSE:AMRC) is a leading
independent provider of comprehensive services, energy efficiency,
infrastructure upgrades, asset sustainability and renewable energy
solutions for businesses and organizations throughout North America
and Europe. Ameresco’s sustainability services include upgrades to
a facility’s energy infrastructure and the development,
construction and operation of renewable energy plants. 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 1,000 employees providing
local expertise in the United States, Canada, and the United
Kingdom. 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 and backlog, as well as estimated
future revenues and net income, 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; the
timing of work we do on projects where we recognize revenue on a
percentage of completion basis, including the ability to perform
under recently signed contracts without unusual delay; demand for
our energy efficiency and renewable energy solutions; our ability
to arrange financing for our projects; changes in federal, state
and local government policies and programs related to energy
efficiency and renewable energy; the ability of customers to cancel
or defer contracts included in our backlog; the effects of our
recent acquisitions and restructuring activities; 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 costs of labor and
equipment; the addition of new customers or the loss of existing
customers; 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; and other factors discussed in our Annual Report on
Form 10-K for the year ended December 31, 2016, filed with the U.S.
Securities and Exchange Commission on March 3, 2017. In addition,
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.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per
share amounts)
June 30, December 31, 2017 2016
(Unaudited) ASSETS Current assets: Cash and cash
equivalents $ 27,131 $ 20,607 Restricted cash 16,565 12,299
Accounts receivable, net 67,679 85,354 Accounts receivable
retainage, net 18,295 17,465 Costs and estimated earnings in excess
of billings 53,313 56,914 Inventory, net 9,479 12,104 Prepaid
expenses and other current assets 10,613 11,732 Income tax
receivable 521 406 Project development costs 13,339 9,180
Total current assets 216,935 226,061 Federal ESPC receivable
221,680 158,209 Property and equipment, net 4,699 5,018 Energy
assets, net 348,472 319,758 Goodwill 55,779 57,976 Intangible
assets, net 3,113 3,931 Other assets 25,204 26,328
Total assets $ 875,882 $ 797,281
LIABILITIES,
REDEEMABLE NON-CONTROLLING INTERESTS AND STOCKHOLDERS' EQUITY
Current liabilities: Current portions of long-term debt and capital
lease liabilities $ 22,270 $ 19,292 Accounts payable 102,529
126,583 Accrued expenses and other current liabilities 21,146
22,763 Billings in excess of cost and estimated earnings 21,494
21,189 Income taxes payable 603 775 Total current
liabilities 168,042 190,602 Long-term debt and capital lease
liabilities, less current portions and net of deferred financing
fees 172,732 140,593 Federal ESPC liabilities 197,729 133,003
Deferred income taxes, net 3,074 9,037 Deferred grant income 7,464
7,739 Other liabilities 16,340 15,154 Redeemable
non-controlling interests 7,297 6,847 Stockholders' equity:
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, no
shares issued and outstanding at June 30, 2017 and December 31,
2016 — — Class A common stock, $0.0001 par value, 500,000,000
shares authorized, 29,251,334 shares issued and 27,532,092 shares
outstanding at June 30, 2017, 29,005,284 shares issued and
27,706,866 shares outstanding at December 31, 2016 3 3 Class B
common stock, $0.0001 par value, 144,000,000 shares authorized,
18,000,000 shares issued and outstanding at June 30, 2017 and
December 31, 2016 2 2 Additional paid-in capital 114,653 112,926
Retained earnings 203,540 194,353 Accumulated other comprehensive
loss, net (6,338 ) (6,591 ) Less - treasury stock, at cost,
1,719,242 shares at June 30, 2017 and 1,298,418 shares at December
31, 2016 (8,656 ) (6,387 ) Total stockholders' equity 303,204
294,306 Total liabilities, redeemable non-controlling
interests and stockholders' equity $ 875,882 $ 797,281
AMERESCO, INC.
CONSOLIDATED STATEMENTS OF
INCOME
(in thousands, except share and per
share amounts)
Three Months Ended June 30, Six Months Ended June
30, 2017 2016 2017
2016 (Unaudited)
(Unaudited) (Unaudited) (Unaudited) Revenues $
166,665 $ 162,628 $ 301,275 $ 296,404 Cost of revenues 131,257
130,772 239,943 236,872 Gross profit 35,408
31,856 61,332 59,532 Selling, general and administrative expenses
26,650 27,140 53,137 53,028 Operating income
8,758 4,716 8,195 6,504 Other expenses, net 1,738 1,850
3,564 2,693 Income before provision for income taxes
7,020 2,866 4,631 3,811 Income tax provision 1,060 766
415 1,007 Net income 5,960 2,100 4,216 $ 2,804 Net
(income) loss attributable to redeemable non-controlling interests
(129 ) (106 ) 971 244 Net income attributable to common
shareholders $ 5,831 $ 1,994 $ 5,187 $ 3,048
Net income per share attributable to common shareholders: Basic $
0.13 $ 0.04 $ 0.11 $ 0.07 Diluted $ 0.13 $ 0.04 $ 0.11 $ 0.07
Weighted average common shares outstanding: Basic 45,463,403
46,719,122 45,488,498 46,730,805 Diluted 45,674,715 46,793,350
45,601,466 46,730,805
AMERESCO, INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(in thousands)
Six Months Ended June 30, 2017
2016 (Unaudited) (Unaudited) Cash flows
from operating activities: Net income $ 4,216 $ 2,804 Adjustments
to reconcile net income to cash flows from operating activities:
Depreciation of energy assets 10,220 9,179 Depreciation of property
and equipment 1,336 1,552 Amortization of deferred financing fees
786 635 Amortization of intangible assets 716 1,211 Provision for
bad debts 15 2,932 Gain on sale of assets (104 ) — Unrealized gain
on ineffectiveness of interest rate swaps (178 ) (153 ) Stock-based
compensation expense 650 758 Deferred income taxes (1,867 ) (1,365
) Unrealized foreign exchange gain (712 ) (791 ) Changes in
operating assets and liabilities: Restricted cash 215 (3,361 )
Accounts receivable 18,561 (8,701 ) Accounts receivable retainage
(779 ) (484 ) Federal ESPC receivable (72,781 ) (50,167 )
Inventory, net 2,626 (1,183 ) Costs and estimated earnings in
excess of billings 4,101 22,646 Prepaid expenses and other current
assets 906 (562 ) Project development costs (4,066 ) (1,360 ) Other
assets 240 459 Accounts payable, accrued expenses and other current
liabilities (15,720 ) (8,254 ) Billings in excess of cost and
estimated earnings 212 (6,041 ) Other liabilities (60 ) (1,908 )
Income taxes payable 97 2,432 Cash flows from
operating activities (51,370 ) (39,722 ) Cash flows from investing
activities: Purchases of property and equipment (1,231 ) (2,212 )
Purchases of energy assets (51,393 ) (20,813 ) Proceeds from sale
of assets of a business 2,777 — Acquisitions, net of cash received
(2,409 ) — Cash flows from investing activities (52,256 )
(23,025 ) Cash flows from financing activities: Payments of
financing fees (1,614 ) (749 ) Proceeds from exercises of options
1,077 470 Repurchase of common stock (2,269 ) (1,949 ) Proceeds
from senior secured credit facility, net 13,200 2,900 Proceeds from
long-term debt financing 41,565 3,013 Proceeds from Federal ESPC
projects 74,036 38,759 Proceeds from sale-leaseback financing
21,454 11,008 Proceeds from investment by redeemable
non-controlling interests, net 1,421 6,519 Restricted cash (2,458 )
3,369 Payments on long-term debt (35,987 ) (6,129 ) Cash flows from
financing activities 110,425 57,211 Effect of exchange rate changes
on cash (275 ) (832 ) Net increase (decrease) in cash and cash
equivalents 6,524 (6,368 ) Cash and cash equivalents, beginning of
period 20,607 21,645 Cash and cash equivalents, end
of period $ 27,131 $ 15,277
Non-GAAP Financial Measures (in
thousands)
Three Months Ended June 30, Six Months Ended June
30, 2017 2016 2017
2016 (Unaudited)
(Unaudited) (Unaudited) (Unaudited)
Adjusted EBITDA: Net income attributable to common
shareholders $ 5,831 $ 1,994 $ 5,187 $ 3,048 Impact from redeemable
non-controlling interests 129 106 (971 ) (244 ) Plus: Income tax
provision 1,060 766 415 1,007 Plus: Other expenses, net 1,738 1,850
3,564 2,693 Plus: Depreciation and amortization of intangible
assets 6,090 6,023 12,272 11,942 Plus: Stock-based compensation 307
391 650 758 Plus: Restructuring and other charges 244 2,060
244 3,429 Adjusted EBITDA $ 15,399 $
13,190 $ 21,361 $ 22,633 Adjusted EBITDA
margin
9.2 % 8.1 % 7.1 %
7.6 % Non-GAAP net income and EPS: Net
income attributable to common shareholders $ 5,831 $ 1,994 $ 5,187
$ 3,048 Impact from redeemable non-controlling interests 129 106
(971 ) (244 ) Plus: Restructuring and other charges 244 2,060 244
3,429 Plus: Income Tax effect of non-GAAP adjustments (44 ) (282 )
(44 ) (562 ) Non-GAAP net income $ 6,160 $ 3,878 $
4,416 $ 5,671 Diluted net income per common
share $ 0.13 $ 0.04 $ 0.11 $ 0.07 Effect of adjustments to net
income — 0.04 (0.01 ) 0.05 Non-GAAP EPS $ 0.13
$ 0.08 $ 0.10 $ 0.12
Adjusted
cash from operations: Cash flows from operating activities $
(19,585 ) $ (24,653 ) $ (51,370 ) $ (39,722 ) Plus: proceeds from
Federal ESPC projects 38,869 22,374 74,036
38,759 Adjusted cash from operations $ 19,284 $
(2,279 ) $ 22,666 $ (963 )
June 30,
2017 2016 (Unaudited) (Unaudited)
Construction backlog: Awarded(1) $ 1,013,500 $ 1,116,000
Fully-contracted 631,400 435,100 Total construction
backlog $ 1,644,900 $ 1,551,100 Energy assets in
development(2) $ 202,400 $ 157,000
Three Months Ended June 30 Six
Months Ended June 30 2017
2016 2017 2016
(Unaudited) (Unaudited) (Unaudited)
(Unaudited) New contracts and awards: New contracts $
238,400 $ 187,800 $ 293,500 $ 243,000 New awards(1) $ 113,700 $
270,100 $ 349,400 $ 403,100
(1) Represents estimated future revenues from projects that have
been awarded, though the contracts have not yet been signed.
(2) Estimated total construction value of all energy assets in
construction and development
Non-GAAP Financial Guidance
Adjusted earnings before interest, taxes, depreciation and
amortization (adjusted EBITDA): (in thousands) Year
Ended December 31, 2017 Low
High Operating income $ 33,000
$ 37,000 Depreciation and amortization
of intangible assets 26,000
26,000 Stock-based compensation
1,000 2,000 Restructuring and other
charges — —
Adjusted EBITDA $ 60,000
$ 65,000
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 Other
Non-GAAP Disclosure 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 operating income before
depreciation, amortization of intangible assets, stock-based
compensation expense, restructuring charges, loss related to a
significant non-core project in Canada and charges related to a
significant customer bankruptcy. 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, stock-based compensation expense, restructuring charges
and loss related to a significant non-core project in Canada. 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.
During the first quarter of 2016, we changed our calculation and
presentation of adjusted EBITDA to exclude restructuring charges
and losses related to a significant non-core project in Canada and
during the third quarter of 2016, we changed our calculation and
presentation of adjusted EBITDA in order to exclude charges related
to a significant customer bankruptcy. We do not consider these
items indicative of our core operating performance. Adjusted EBITDA
and adjusted EBITDA margin for the prior periods have been
recalculated to be presented on a comparable basis.
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 restructuring
charges, loss related to a significant non-core project in Canada,
impact from redeemable non-controlling interest and charges related
to a significant customer bankruptcy. 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: http://www.businesswire.com/news/home/20170809005213/en/
Ameresco, Inc.Media RelationsCarolAnn Hibbard,
508-661-2264news@ameresco.comorInvestor RelationsJohn Granara,
508-661-2215ir@ameresco.comorThe Blue Shirt GroupGary Dvorchak,
323-240-5796CFAir@ameresco.com
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