- Reported Record Revenue and Profits for
2020 -
- Q4 Outperformance Led by Strength in
Federal Projects Group -
- Energy Assets in Development Exceed 350
MWe -
- Guiding to Continued Robust Growth for
2021 -
Fourth Quarter 2020 Financial Highlights:
- Revenues of $314.3 million, up 3% compared to last year
- Net Income of $23.5 million
- GAAP EPS of $0.47, up 2%
- Adjusted EBITDA of $35.7 million, up 21%
Full Year 2020 Financial Highlights:
- Revenues of $1.03 billion, up 19% compared to last year
- Net Income of $54.1 million, up 22%
- GAAP EPS of $1.10, up 18%
- Non-GAAP EPS of $1.18, up 42%
- Adjusted EBITDA of $117.9 million, up 29%
Ameresco, Inc. (NYSE:AMRC), a leading clean technology
integrator specializing in energy efficiency and renewable energy,
today announced financial results for the fiscal quarter and year
ended December 31, 2020. 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.
“In 2020, our resilient Ameresco team demonstrated tremendous
execution which led to outstanding results. We came together to
ensure that the company remained operational throughout the year
while implementing strict protocols to protect the health and
safety of our employees and customers. We navigated difficult
business conditions and delivered record year-on-year performance,
laying the foundation for our continued profitable growth in 2021
and beyond.”
“In the fourth quarter, we continued to execute on our
contracted project backlog, taking advantage of improved worksite
access. Revenue during the quarter increased year-on-year despite
COVID-19 conditions and a difficult comparison with the exceptional
fourth quarter results reported last year. Additionally, our Energy
Asset and O&M recurring revenue businesses continued to grow,
contributing high margin, annuity-like revenue and providing
excellent long-term visibility. We were very pleased to surpass 350
MWe of assets in development during the quarter with the addition
of significant new solar and RNG assets. As a recognized industry
leading provider of Distributed Energy Resources (DER) solutions,
we continue to see very attractive growth opportunities in our
overall clean technology markets.”
“In the fourth quarter, we were very pleased to have released
our first Environmental, Social and Corporate Governance (ESG)
report titled ‘Doing Well by Doing Good’ highlighting our
corporate vision of energizing a sustainable world. We are proud
that our renewable energy assets and customer projects delivered a
carbon offset equivalent to approximately 12.6 million metric tons
of carbon dioxide during 2020 and over 60 million cumulative metric
tons since going public in 2010.”
“Recently Ameresco was named number six on Forbes’ list of 2021
America’s Best Mid-Size Companies. We were pleased to be the only
energy solutions provider included among the annual list’s 100
companies, reflecting our market leadership and our growth-oriented
entrepreneurial culture,” concluded George P. Sakellaris, President
and Chief Executive Officer.
Fourth Quarter Financial Results
(All financial result comparisons made are against the prior
year period unless otherwise noted.)
Revenues increased 3% to $314.3 million, compared to a
particularly strong quarter the previous year. Continued strength
in the Federal Solutions Group along with growth in our recurring
revenue businesses drove this positive performance. We continued to
prioritize pulling in and executing on our contracted backlog given
uncertainties around COVID-19 and its impact on future job site
access. Operating income increased to $24.6 million. Net income
attributable to common shareholders increased to $23.5 million and
GAAP EPS increased to $0.47. Adjusted EBITDA, a non-GAAP financial
measure, increased 21% to $35.7 million.
Full Year 2020 Financial Results
Revenues were $1.03 billion, compared to $866.9 million last
year, an increase of 19%. Operating income was $71.5 million,
compared to $51.6 million, as we continued to benefit from
controlled spending, lower travel expense due to COVID-19, higher
employee utilization and the leverage inherent in our scalable
business model. Net income attributable to common shareholders was
$54.1 million, compared to $44.4 million. Non-GAAP net income was
$57.8 million, compared to $39.9 million. Earnings per diluted
share was $1.10, and non-GAAP EPS was $1.18, up from $0.83 in the
prior fiscal year. EPS results reflected $0.13 of one-time tax
benefits. Adjusted EBITDA was $117.9 million compared to $91.1
million, an increase of 29%.
Project Backlog and Awards
Total project backlog at December 31, 2020 remained strong at
$2.2 billion and was comprised of:
- $895.7 million in contracted backlog representing signed
customer contracts for installation or construction of projects,
which we expect to convert into revenue over the next one to three
years, on average; and
- $1.3 billion of awarded projects representing projects in
development for which we do not have signed customer
contracts.
Fourth Quarter Project Highlights:
- A plant-wide energy efficiency project for The Mattabassett
District in Cromwell, Connecticut. Under this energy services
agreement (ESA), the project includes energy conservation measures
across 9 buildings and operations, resulting in more than $1
million in energy cost savings over the 12-year contract term.
- A citywide energy efficiency project for the City of Virginia,
Minnesota. Improvements will guarantee energy cost savings and an
overall reduction in municipal energy demand and is expected to
reduce the City’s energy consumption by approximately 21%, or the
equivalent of 819 metric tons of CO2 per year.
- An Energy Savings Performance Contract (ESPC) with the City of
Medford, Oregon to convert approximately 8,000 street lights and
parks department lighting fixtures to light emitting diode (LED)
technology.
- An ESPC with Grants Pass School (District 7) in Oregon, at
thirteen separate locations across the district. Work includes
lighting, HVAC, and building envelope upgrades. Utilizing an ESPC
and third-party financing, the district can complete upgrades and
pay for them over time, aided by utility incentives and
reimbursement programs, as well as energy savings.
Ameresco Asset Metrics
Total operating assets were 282 MWe:
- Assets in development were 351 MWe
- $900 million of estimated contracted revenue and incentives
during power purchase agreement (PPA) period
- 14-year weighted average PPA remaining
Fourth Quarter Asset Highlights:
- 14 MWe placed into operations
- Gross 46 MWe added to the in-development pipeline
- 2 RNG plants
- Completed construction and started commissioning of McCarty
Road RNG plant
Contracted O&M Backlog
Total O&M backlog remained at $1.1 billion
- 16-year weighted average contract life
Summary and Outlook
“Based on visibility from our project backlog and our increased
levels of recurring revenues, we are pleased to provide guidance
for another year of strong growth in 2021. Specifically, we expect
revenues in the range of $1.1 billion to $1.15 billion and Adjusted
EBITDA of $135 million to $145 million, representing year-over-year
growth of 9% and 19% at the midpoints. We expect non-GAAP EPS to
range from $1.18 to $1.26, representing 16% growth at the midpoint,
excluding the impact of approximately $0.13 of one-time tax
benefits realized in 2020. During the year, we anticipate
commissioning between 60 to 80 MWe of energy assets. We currently
plan to invest approximately $200 million to $250 million in
capital investments in 2021, the majority of which will be funded
with project finance debt.”
“We see substantial growth opportunities on the horizon for
Ameresco. With the new Administration in Washington, low to no
carbon energy solutions are once again in focus leading to an
ever-increasing addressable market. At the same time, we also see a
significant need for our full range of flexible financial
solutions, including our Energy-as-a-Service (EaaS) offering, as
our customers face financial challenges given the long-term
budgetary impacts of the COVID-19 pandemic. Ameresco is
well-positioned to benefit from these positive market dynamics with
our flexible value propositions, our customer centric approach to
delivering the best advanced technology solutions and our globally
recognized expertise in sustainability,” Mr. Sakellaris
concluded.
FY 2021 Guidance
Ranges
Revenue
$1.1 billion
$1.15 billion
Gross Margin
18.5%
19.0%
Adjusted EBITDA
$135 million
$145 million
Interest Expense & Other
$20 million
$22 million
Effective Tax Rate
12%
18%
Non-GAAP EPS
$1.18
$1.26
The Company’s guidance excludes the impact of any
non-controlling interest activity, one-time charges, asset
impairment charges, restructuring activities, as well as any
related tax impact.
Conference Call/Webcast Information
The Company will host a conference call today at 4:30 p.m. ET to
discuss results and the Company’s business outlook and strategy.
The conference call will be available via the following dial in
numbers:
- U.S. Participants: Dial 1-877-359-9508 (Access Code:
8769918)
- International Participants: Dial 1-224-357-2393 (Access Code:
8769918)
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
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
independent clean technology integrator 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, 2019, filed with the U.S.
Securities and Exchange Commission (SEC) on March 4, 2020, and in
our Quarterly Report on Form 10-Q for the quarter ended March 31,
2020, filed with the SEC on May 5, 2020, and in our Quarterly
Report on Form 10-Q for the quarter ended September 30, 2020, filed
with the SEC on November 3, 2020. Currently, one of the most
significant factors, however, is the potential adverse effect of
the current pandemic of the novel coronavirus, or COVID-19, on our
financial condition, results of operations, cash flows and
performance and the global economy and financial markets. The
extent to which COVID-19 impacts us, suppliers, customers,
employees and supply chains will depend on future developments,
which are highly uncertain and cannot be predicted with confidence,
including the scope, severity and duration of the pandemic, the
actions taken to contain the pandemic or mitigate its impact, and
the direct and indirect economic effects of the pandemic and
containment measures, among others. Moreover, you should interpret
many of the risks identified in our Annual Report and Quarterly
Report as being heightened as a result of the ongoing and numerous
adverse impacts of COVID-19. 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
amounts)
December 31,
2020
2019
ASSETS
Current assets:
Cash and cash equivalents
$
66,422
$
33,223
Restricted cash
22,063
20,006
Accounts receivable, net
125,010
95,863
Accounts receivable retainage, net
30,189
16,976
Costs and estimated earnings in excess of
billings
185,960
202,243
Inventory, net
8,575
9,236
Prepaid expenses and other current
assets
26,854
29,424
Income tax receivable
9,803
5,033
Project development costs
15,839
13,188
Total current assets
490,715
425,192
Federal ESPC receivable
396,725
230,616
Property and equipment, net
8,982
10,104
Energy assets, net
729,378
579,461
Goodwill, net
58,714
58,414
Intangible assets, net
927
1,614
Operating lease assets
39,151
32,791
Restricted cash, non-current portion
10,352
24,035
Other assets
15,307
11,786
Total assets
$
1,750,251
$
1,374,013
LIABILITIES, REDEEMABLE NON-CONTROLLING
INTERESTS AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portions of long-term debt and
financing lease liabilities
$
69,362
$
69,969
Accounts payable
230,916
202,416
Accrued expenses and other current
liabilities
41,748
31,356
Current portion of operating lease
liabilities
6,106
5,802
Billings in excess of cost and estimated
earnings
33,984
26,618
Income taxes payable
981
486
Total current liabilities
383,097
336,647
Long-term debt and financing lease
liabilities, net of current portion, unamortized discount and debt
issuance costs
311,674
266,181
Federal ESPC liabilities
440,223
245,037
Deferred income taxes, net
2,363
115
Deferred grant income
8,271
6,885
Long-term operating lease liabilities, net
of current portion
35,300
29,101
Other liabilities
37,660
29,575
Commitments and contingencies
Redeemable non-controlling interests
38,850
31,616
Stockholders’ equity:
Preferred stock, $0.0001 par value,
5,000,000 shares authorized, no shares issued and outstanding at
December 31, 2020 and 2019
$
—
$
—
Class A common stock, $0.0001 par value,
500,000,000 shares authorized, 32,326,449 shares issued and
30,224,654 shares outstanding at December 31, 2020, 31,331,345
shares issued and 29,230,005 shares outstanding at December 31,
2019
3
3
Class B common stock, $0.0001 par value,
144,000,000 shares authorized, 18,000,000 shares issued and
outstanding at December 31, 2020 and 2019
2
2
Additional paid-in capital
145,496
133,688
Retained earnings
368,390
314,459
Accumulated other comprehensive loss,
net
(9,290
)
(7,514
)
Treasury stock, at cost, 2,101,795 shares
at December 31, 2020, and 2,101,340 shares at December 31, 2019
(11,788
)
(11,782
)
Total stockholder’s equity
492,813
428,856
Total liabilities, redeemable
non-controlling interests and stockholders’ equity
$
1,750,251
$
1,374,013
AMERESCO, INC.
CONSOLIDATED STATEMENTS OF
INCOME
(In thousands, except per
share amounts)
Three Months Ended December
31,
Twelve Months Ended December
31,
2020
2019
2020
2019
(Unaudited)
(Unaudited)
Revenues
$
314,319
$
306,612
$
1,032,275
$
866,933
Cost of revenues
256,098
258,958
844,726
698,815
Gross profit
58,221
47,654
187,549
168,118
Selling, general and administrative
expenses
33,647
29,108
116,050
116,504
Operating income
24,574
18,546
71,499
51,614
Other expenses, net
1,904
3,702
15,071
15,061
Income before (benefit) provision for
income taxes
22,670
14,844
56,428
36,553
Income tax (benefit) provision
(1,091
)
(5,748
)
(494
)
(3,748
)
Net income
23,761
20,592
56,922
40,301
Net (income) loss attributable to
redeemable non-controlling interest
(276
)
1,611
(2,870
)
4,135
Net income attributable to common
shareholders
$
23,485
$
22,203
$
54,052
$
44,436
Net income per share attributable to
common shareholders:
Basic
$
0.49
$
0.47
$
1.13
$
0.95
Diluted
$
0.47
$
0.46
$
1.10
$
0.93
Weighted average common shares
outstanding:
Basic
48,015
47,101
47,702
46,586
Diluted
49,440
48,061
49,006
47,774
AMERESCO, INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In thousands)
Year Ended December
31,
2020
2019
Cash flows from operating
activities:
Net income
$
56,922
$
40,301
Adjustments to reconcile net income to net
cash flows from operating activities:
Depreciation of energy assets
38,039
35,543
Depreciation of property and equipment
3,317
2,987
Amortization of debt discount and debt
issuance costs
2,686
2,229
Amortization of intangible assets
685
909
Accretion of ARO and contingent
consideration
93
137
Provision for (recoveries of) bad
debts
282
(216
)
Loss on disposal / impairment of
long-lived assets
2,696
—
Gain on deconsolidation of a VIE
—
(2,160
)
Net gain from derivatives
(705
)
(1,068
)
Stock-based compensation expense
1,933
1,620
Deferred income taxes
3,401
(3,346
)
Unrealized foreign exchange gain
(306
)
(130
)
Changes in operating assets and
liabilities:
Accounts receivable
(24,178
)
(8,499
)
Accounts receivable retainage
(13,113
)
(3,370
)
Federal ESPC receivable
(227,078
)
(188,060
)
Inventory, net
660
(1,471
)
Costs and estimated earnings in excess of
billings
19,474
(106,696
)
Prepaid expenses and other current
assets
517
(18,397
)
Project development costs
(3,085
)
8,120
Other assets
536
1,056
Accounts payable, accrued expenses and
other current liabilities
29,047
43,531
Billings in excess of cost and estimated
earnings
8,042
2,662
Other liabilities
1,844
(1,625
)
Income taxes payable, net
(4,292
)
(350
)
Cash flows from operating activities
(102,583
)
(196,293
)
Cash flows from investing
activities:
Purchases of property and equipment
(2,211
)
(6,674
)
Purchases of energy assets
(180,546
)
(134,738
)
Grant award proceeds for energy assets
1,874
784
Acquisitions, net of cash received
—
(1,294
)
Contributions to equity investment
(132
)
(301
)
Cash flows from investing activities
$
(181,015
)
$
(142,223
)
AMERESCO, INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS - (Continued)
(In thousands)
Year Ended December
31,
2020
2019
Cash flows from financing
activities:
Payments of debt discount and debt
issuance costs
$
(5,234
)
$
(1,666
)
Proceeds from exercises of options and
ESPP
9,875
7,417
Repurchase of common stock
(6
)
(144
)
Proceeds from senior secured credit
facility, net
3,000
73,347
Proceeds from long-term debt
financings
116,067
43,883
Proceeds from Federal ESPC projects
248,917
199,358
Proceeds for energy assets from Federal
ESPC
1,378
2,277
Proceeds from investments by redeemable
non-controlling interests, net
4,805
21,372
Payments on long-term debt and financing
leases
(73,633
)
(28,425
)
Cash flows from financing activities
305,169
317,419
Effect of exchange rate changes on
cash
2
447
Net increase (decrease) in cash and cash
equivalents, and restricted cash
21,573
(20,650
)
Cash, cash equivalents, and restricted
cash, beginning of year
77,264
97,914
Cash, cash equivalents, and restricted
cash, end of year
$
98,837
$
77,264
Non-GAAP Financial Measures (Unaudited,
in thousands)
Three Months Ended December
31,
Twelve Months Ended December
31,
2020
2019
2020
2019
Adjusted EBITDA:
Net income attributable to common
shareholders
$
23,485
$
22,203
$
54,052
$
44,436
Impact from redeemable non-controlling
interests
276
(1,611
)
2,870
(4,135
)
Less: Income tax benefit
(1,091
)
(5,748
)
(494
)
(3,748
)
Plus: Other expenses, net
1,904
3,702
15,071
15,061
Plus: Depreciation and amortization
10,525
10,305
42,041
39,439
Plus: Stock-based compensation
553
425
1,933
1,620
Plus: Energy asset impairment
—
—
1,028
—
Plus: Restructuring and other charges
66
219
1,376
629
Less: Gain on deconsolidation of VIE
—
—
—
(2,160
)
Adjusted EBITDA
$
35,718
$
29,495
$
117,877
$
91,142
Adjusted EBITDA margin
11.4
%
9.6
%
11.4
%
10.5
%
Non-GAAP net income and EPS:
Net income attributable to common
shareholders
$
23,485
$
22,203
$
54,052
$
44,436
Adjustment for accretion of tax equity
financing fees
(30
)
—
(121
)
—
Impact from redeemable non-controlling
interests
276
(1,611
)
2,870
(4,135
)
Plus: Energy asset impairment
—
—
1,028
—
Plus: Restructuring and other charges
66
219
1,376
629
Less: Gain on deconsolidation of VIE
—
—
—
(2,160
)
Income tax effect of non-GAAP
adjustments
(769
)
1,101
(1,377
)
1,101
Non-GAAP net income
$
23,028
$
21,912
$
57,828
$
39,871
Diluted net income per common share
$
0.47
$
0.46
$
1.10
$
0.93
Effect of adjustments to net income
—
—
0.08
(0.10
)
Non-GAAP EPS
$
0.47
$
0.46
$
1.18
$
0.83
Weighted average common shares outstanding
- diluted
49,439,602
48,061,000
49,005,959
47,774,071
Adjusted cash from operations:
Cash flows from operating activities
$
(18,794
)
$
(75,568
)
$
(102,583
)
$
(196,293
)
Plus: proceeds from Federal ESPC
projects
54,331
83,802
248,917
199,358
Adjusted cash from operations
$
35,537
$
8,234
$
146,334
$
3,065
December 31,
2020
2019
Project backlog:
Awarded (1)
$
1,318,660
$
1,160,400
Fully-contracted
895,660
1,107,580
Total project backlog
$
2,214,320
$
2,267,980
Energy assets in development (2)
$
1,021,800
$
681,000
Three Months Ended December
31
Twelve Months Ended December
31
2020
2019
2020
2019
New contracts and awards:
New contracts
$
104,000
$
564,000
$
543,000
$
989,000
New awards (1)
$
211,000
$
290,000
$
702,000
$
909,000
(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):
Year Ended December 31,
2021
Low
High
Operating income (1)
$85 million
$93 million
Depreciation and amortization
$48 million
$49 million
Stock-based compensation
$2 million
$3 million
Adjusted EBITDA
$135 million
$145 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
Disclosure 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 operating income before
depreciation, amortization of intangible assets, accretion of asset
retirement obligations, contingent consideration expense,
stock-based compensation expense, restructuring and asset
impairment charges, and gain or loss upon deconsolidation of a
variable interest entity ("VIE") and impact from redeemable
non-controlling interest. 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, restructuring and asset
impairment charges, and gain or loss upon deconsolidation of a VIE
and impact from redeemable non-controlling interest. 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 restructuring
and asset impairment charges, gain or loss upon deconsolidation of
a VIE and impact from redeemable non-controlling interest. 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/20210301005946/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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