– Record Q2 Revenue and Profit with Growth
Across All Business Lines –
– Continued Momentum in New Project Awards
and Proposal Activity –
– Announced Company’s Largest PV &
Battery Storage Asset –
– Reiterates FY22 Guidance –
Second Quarter 2022 Financial Highlights:
(All financial result comparisons made are against the prior
year period unless otherwise noted)
- Revenues of $577.4 million, up 111%
- Net income attributable to common shareholders of $32.2
million, up 136%
- GAAP EPS of $0.61, up 135%
- Non-GAAP EPS of $0.62, up 82%
- Adjusted EBITDA of $60.3 million, up 75%
Ameresco, Inc. (NYSE:AMRC), a leading cleantech integrator
specializing in energy efficiency and renewable energy, today
announced financial results for the fiscal quarter ended June 30,
2022. 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.
“Ameresco, through dedication and diversification, is pleased to
report another quarter of record results, with each of our four
business lines posting considerable year-over-year growth. Second
quarter revenue more than doubled, led by our Projects business
line, which continues to benefit from the diversity and increased
scale and complexity of projects in our backlog. We achieved
sequential and year-over-year increases in our awarded backlog in
the second quarter, reflecting Ameresco’s market share gains as
well as the expansion of our addressable market. The combination of
rising energy costs, the growing focus by customers on reducing
their environmental impact, and the need for comprehensive energy
efficient and resilient solutions has driven our bid and proposal
activity to record levels in the first half of 2022.
“Together with our partner, Bright Canyon Energy, we signed a
37-year enhanced use lease with the Department of Navy and received
approval for a 20-year PPA from the PUC of Hawaii that
significantly expands our portfolio of Energy Assets in
development. The Kūpono Solar, LLC Asset will represent the largest
combined PV and battery asset ever developed and constructed by
Ameresco. When complete, this asset will add capacity of 42
megawatts (MW) of clean renewable electricity and 42 MW/168 MWh of
battery storage to Hawaiian Electric’s grid on the island of O’ahu.
Completion is expected in early 2024. This asset marks the first
time we have worked with Bright Canyon Energy Corporation, who will
have an equity ownership in the asset,” commented George P.
Sakellaris, President and Chief Executive Officer.
Ameresco is providing an update on the progress of the Southern
California Edison (SCE) battery energy storage systems (BESS)
projects. During the second quarter, we made substantial progress
on the projects, achieving a number of key milestones despite
Covid, supply chain, and permitting challenges. Approximately two
thirds of the batteries for the projects are on site with the
balance in transit. We now expect 200 to 300MW of capacity to be in
service in September and continue to expect completion by the end
of this year.
“Ameresco continued to be recognized by industry experts during
the quarter. We were ranked number one in the Guidehouse Insights
Energy as a Service (EaaS) Leaderboard report for the second
consecutive year and were granted two Platinum Hermes Creative
Awards for our continued ESG initiatives,” concluded George P.
Sakellaris, President and Chief Executive Officer.
Second Quarter Financial Results
(All financial result comparisons made are against the prior
year period unless otherwise noted.)
Total revenue increased 111% with growth across all of the
Company's lines of business. Project revenue increased 149% as we
continued to execute on the SCE projects while certain other
projects progressed ahead of our expectations. Continued growth in
our operating energy asset base and increased performance from our
existing assets drove Energy Asset revenue up 16%. Other revenue
grew 15% with strength in integrated PV sales, and O&M revenue
increased over 7%. Gross margin was 14.1%, in line with our
expectations, reflecting the impact from the higher revenue
contribution from our lower margin SCE design/build projects.
Revenue performance combined with the Company’s strong operating
leverage enhanced net income to $32.2 million, representing a 136%
increase, and Adjusted EBITDA to $60.3 million, a 75% increase. The
results for the three months ended June 30, 2022 and 2021 reflect a
non-cash downward adjustment of $0.7 million and $4.2 million,
respectively, related to non-controlling interest activities.
Working capital increased in-line with our expectations during
the quarter due to the execution of our large SCE design/build
projects. We collected a milestone payment of $33 million from SCE
subsequent to the end of Q2.
(in millions)
2Q 2022
2Q 2021
Revenue
Net Income (1)
Adj. EBITDA
Revenue
Net Income (1)
Adj. EBITDA
Projects
$489.1
$15.8
$29.2
$196.3
$10.4
$11.3
Energy Assets
$42.9
$12.9
$24.7
$36.9
$1.1
$20.3
O&M
$21.1
$2.4
$4.0
$19.6
$1.9
$2.4
Other
$24.3
$1.1
$2.4
$21.1
$0.2
$0.3
Total (1)
$577.4
$32.2
$60.3
$273.9
$13.7
$34.4
(1) Net Income represents net income attributable to common
shareholders. (2) Numbers in table may not foot due to
rounding.
($ in millions)
At June 30, 2022
Awarded Project Backlog (1)
$1,829
Contracted Project Backlog
$1,003
Total Project Backlog
$2,832
O&M Revenue Backlog
$1,197
Energy Asset Visibility (2)
$1,019
Operating Energy Assets
354 MWe
Ameresco's Ownership of Assets in
Development (3)
436 MWe
(1) Customer contracts that have not been signed yet (2)
Estimated contracted revenue and incentives on our operating Energy
Assets, which may vary with actual production and future values of
certain environmental attributes (3) Ameresco owned capacity not
reflecting partner's minority interest
Project Highlights
In the second quarter of 2022:
- Ameresco was awarded a 6 MW / 6 MWh BESS by the U.S. Army to
add a comprehensive energy storage system to the existing 18.6 MW
solar renewable energy facility at the Fort Detrick Army Garrison
in Frederick, Maryland.
- The Company announced a $102 million energy conservation
project and accompanying 25-year O&M service agreement at Joint
Base Pearl Harbor-Hickam (JBPHH) Air Force Base in Hawaii.
- Ameresco completed a comprehensive energy and water retrofit
project with the Massachusetts College of Art and Design (MassArt)
including improved lighting controls, building management system
and controls upgrades, steam heating improvements, make up air
units and exhaust fans installations, real-time metering – demand
response, general building code upgrades and more.
Asset Highlights
In the second quarter of 2022:
- Ameresco continued to grow its Assets in Development, bringing
the total to 477 MWe. After subtracting the partner’s minority
interests, Ameresco’s owned capacity of Assets in Development is
436 MWe.
- The Company, along with our equity partner Bright Canyon,
announced the Kūpono Solar joint venture, a 42 MW photovoltaic
solar array and 42 MW/168 MWh lithium-ion battery storage system
with a 20-year power purchase agreement (PPA) with Hawaiian
Electric.
- Ameresco completed a 6.9 MW DC PV asset for off-taker
GlaxoSmithKline (GSK) Consumer Healthcare who will purchase
renewable electricity from the asset as part of a 17-year PPA.
Summary and Outlook
“Ameresco continues to deliver record results, while
building the foundation for robust long-term growth. With our
acknowledged technological expertise and proven track record, we
are moving ahead to capture the expanding opportunities on the
horizon, with a flexible business model that provides significant
visibility,” Mr. Sakellaris noted.
“We are pleased to reiterate our 2022 guidance for
year-over-year revenue, Adjusted EBITDA, and Non-GAAP EPS growth of
52%, 34%, and 26%, respectively, at the midpoints of our guidance
ranges. We anticipate that Q3 revenue will be slightly greater than
that of Q4, and second half 2022 gross margins will be
approximately 18%. During 2022, we anticipate placing between 60
and 80 MWe of energy assets in service, while investing
approximately $225 million to $275 million of capital, the majority
of which we expect to fund with non-recourse debt.” Mr. Sakellaris
concluded.
FY 2022 Guidance
Ranges
Revenue
$1.83 billion
$1.87 billion
Gross Margin
15.5%
16.5%
Adjusted EBITDA
$200 million
$210 million
Interest Expense & Other
$25 million
$27 million
Effective Tax Rate
13%
17%
Non-GAAP EPS
$1.85
$1.95
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 second quarter 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 and backlog, as well as estimated
future revenues, net income, adjusted EBITDA, Non-GAAP EPS, gross
margin, capital investments, other financial guidance, statements
about our agreement with SCE including the impact of any delays,
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 recently
signed contracts without delay; 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 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 costs of labor and equipment particularly
given global supply chain challenges; our reliance on third parties
for our construction and installation work; the addition of new
customers or the loss of existing customers including our reliance
on the agreement with SCE for a significant portion of our revenues
in 2022; the impact from Covid-19 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; and other factors
discussed in our Annual Report on Form 10-K for the year ended
December 31, 2021, filed with the U.S. Securities and Exchange
Commission (SEC) on March 1, 2022, the Quarterly Report on Form
10-Q for the quarter ended March 31, 2022, filed with the SEC on
May 3, 2022, and other SEC filings. 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)
June 30,
December 31,
2022
2021
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
67,553
$
50,450
Restricted cash
27,079
24,267
Accounts receivable, net
207,990
161,970
Accounts receivable retainage, net
43,444
43,067
Costs and estimated earnings in excess of
billings
663,798
306,172
Inventory, net
10,886
8,807
Prepaid expenses and other current
assets
23,153
25,377
Income tax receivable
4,299
5,261
Project development costs
16,668
13,214
Total current assets
1,064,870
638,585
Federal ESPC receivable
671,241
557,669
Property and equipment, net
14,000
13,117
Energy assets, net
964,871
856,531
Deferred income tax assets, net
3,646
3,703
Goodwill, net
70,825
71,157
Intangible assets, net
5,532
6,961
Operating lease assets
38,929
41,982
Restricted cash, net of current
portion
16,675
12,337
Other assets
34,187
22,779
Total assets
$
2,884,776
$
2,224,821
LIABILITIES, REDEEMABLE NON-CONTROLLING
INTERESTS AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt and
financing lease liabilities
$
82,707
$
78,934
Accounts payable
432,695
308,963
Accrued expenses and other current
liabilities
41,629
43,311
Current portion of operating lease
liabilities
5,953
6,276
Billings in excess of cost and estimated
earnings
39,787
35,918
Income taxes payable
1,633
822
Total current liabilities
604,404
474,224
Long-term debt and financing lease
liabilities, net of current portion, unamortized discount and debt
issuance costs
698,365
377,184
Federal ESPC liabilities
657,235
532,287
Deferred income tax liabilities, net
8,855
3,871
Deferred grant income
8,099
8,498
Long-term operating lease liabilities, net
of current portion
32,642
35,135
Other liabilities
45,691
43,176
Commitments and contingencies
Redeemable non-controlling interests,
net
$
47,918
$
46,182
Stockholders' equity:
Preferred stock, $0.0001 par value,
5,000,000 shares authorized, no shares issued and outstanding at
June 30, 2022 and December 31, 2021
—
—
Class A common stock, $0.0001 par value,
500,000,000 shares authorized, 35,935,688 shares issued and
33,833,893 shares outstanding at June 30, 2022, 35,818,104 shares
issued and 33,716,309 shares outstanding at December 31, 2021
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, 2022 and December 31, 2021
2
2
Additional paid-in capital
294,240
283,982
Retained earnings
488,278
438,732
Accumulated other comprehensive loss,
net
(4,354
)
(6,667
)
Treasury stock, at cost, 2,101,795 shares
at June 30, 2022 and December 31, 2021
(11,788
)
(11,788
)
Stockholders' equity before
non-controlling interest
766,381
704,264
Non-controlling interest
15,186
—
Total stockholders’ equity
781,567
704,264
Total liabilities, redeemable
non-controlling interests and stockholders' equity
$
2,884,776
$
2,224,821
AMERESCO, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(In thousands, except per
share amounts) (Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Revenues
$
577,397
$
273,920
$
1,051,399
$
526,122
Cost of revenues
496,094
220,598
901,718
425,891
Gross profit
81,303
53,322
149,681
100,231
Selling, general and administrative
expenses
38,249
31,882
77,941
60,483
Operating income
43,054
21,440
71,740
39,748
Other expenses, net
5,249
5,450
12,330
9,122
Income before income taxes
37,805
15,990
59,410
30,626
Income tax provision (benefit)
4,932
(1,896
)
7,239
309
Net income
32,873
17,886
52,171
30,317
Net income attributable to redeemable
non-controlling interests
(657
)
(4,231
)
(2,571
)
(5,488
)
Net income attributable to common
shareholders
$
32,216
$
13,655
$
49,600
$
24,829
Net income per share attributable to
common shareholders:
Basic
$
0.62
$
0.27
$
0.96
$
0.49
Diluted
$
0.61
$
0.26
$
0.93
$
0.48
Weighted average common shares
outstanding:
Basic
51,818
51,315
51,781
50,158
Diluted
53,173
52,570
53,407
51,475
AMERESCO, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended June
30,
2022
2021
Cash flows from operating activities:
Net income
$
52,171
$
30,317
Adjustments to reconcile net income to
cash flows from operating activities:
Depreciation of energy assets, net
23,978
20,136
Depreciation of property and equipment
1,404
1,637
Gain on contingent consideration
(320
)
—
Accretion of ARO liabilities
72
57
Amortization of debt discount and debt
issuance costs
2,036
1,477
Amortization of intangible assets
1,020
161
Provision for bad debts
244
6
Equity in earnings of unconsolidated
entity
(989
)
—
Net loss from derivatives
555
1,225
Stock-based compensation expense
7,206
2,115
Deferred income taxes, net
3,606
335
Unrealized foreign exchange loss
(gain)
467
(32
)
Changes in operating assets and
liabilities:
Accounts receivable
(44,334
)
15,230
Accounts receivable retainage
(458
)
(6,211
)
Federal ESPC receivable
(113,478
)
(125,146
)
Inventory, net
(2,080
)
(224
)
Costs and estimated earnings in excess of
billings
(358,603
)
(8,893
)
Prepaid expenses and other current
assets
(1,629
)
2,445
Project development costs
(1,332
)
760
Other assets
(10,020
)
(3,691
)
Accounts payable, accrued expenses and
other current liabilities
126,783
(22,941
)
Billings in excess of cost and estimated
earnings
4,073
(8,174
)
Other liabilities
18
(207
)
Income taxes receivable, net
1,767
3,135
Cash flows from operating activities
(307,843
)
(96,483
)
Cash flows from investing activities:
Purchases of property and equipment
(2,525
)
(1,484
)
Capital investment in new energy
assets
(124,924
)
(97,891
)
Capital investment in major maintenance of
energy assets
(4,838
)
(6,376
)
Cash flows from investing activities
(132,287
)
(105,751
)
Cash flows from financing activities:
Proceeds from equity offering, net of
offering costs
—
120,081
Payments of debt discount and debt
issuance costs
(2,756
)
(1,162
)
Proceeds from exercises of options and
ESPP
2,814
3,263
Proceeds from (payments on) senior secured
revolving credit facility, net
120,000
(28,073
)
Proceeds from long-term debt
financings
307,911
64,854
Proceeds from Federal ESPC projects
121,731
70,159
Proceeds for (payments on) energy assets
from Federal ESPC
4,651
(117
)
Contributions from non-controlling
interest
12,919
—
(Distributions to) proceeds from
redeemable non-controlling interests, net
(561
)
1,583
Payments on long-term debt and financing
leases
(101,035
)
(33,664
)
Cash flows from financing activities
465,674
196,924
Effect of exchange rate changes on
cash
(1,291
)
315
Net increase (decrease) in cash, cash
equivalents, and restricted cash
24,253
(4,995
)
Cash, cash equivalents, and restricted
cash, beginning of period
87,054
98,837
Cash, cash equivalents, and restricted
cash, end of period
$
111,307
$
93,842
Non-GAAP Financial Measures
(In thousands) (Unaudited)
Three Months Ended June 30,
2022
Adjusted EBITDA:
Projects
Energy
Assets
O&M
Other
Consolidated
Net income attributable to common
shareholders
$
15,786
$
12,886
$
2,428
$
1,116
$
32,216
Impact from redeemable
non-controlling interests
—
657
—
—
657
Plus (less): Income tax provision
(benefit)
5,680
(2,300
)
1,056
496
4,932
Plus: Other expenses, net
3,719
1,278
104
148
5,249
Plus: Depreciation and
amortization
723
11,887
286
388
13,284
Plus: Stock-based
compensation
3,110
273
134
158
3,675
Plus: Restructuring and other
charges
143
—
26
72
241
Adjusted EBITDA
$
29,161
$
24,681
$
4,034
$
2,378
$
60,254
Adjusted EBITDA margin
6.0
%
57.5
%
19.2
%
9.8
%
10.4
%
Three Months Ended June 30,
2021
Adjusted EBITDA:
Projects
Energy
Assets
O&M
Other
Consolidated
Net income attributable to common
shareholders
$
10,379
$
1,146
$
1,932
$
198
$
13,655
Impact from redeemable
non-controlling interests
—
4,231
—
—
4,231
Less: Income tax benefit
(1,080
)
(422
)
(73
)
(321
)
(1,896
)
Plus: Other expenses (income),
net
316
5,172
5
(43
)
5,450
Plus: Depreciation and
amortization
624
9,938
433
340
11,335
Plus: Stock-based
compensation
966
182
97
104
1,349
Plus: Restructuring and other
charges
133
25
12
64
234
Adjusted EBITDA
$
11,338
$
20,272
$
2,406
$
342
$
34,358
Adjusted EBITDA margin
5.8
%
54.9
%
12.3
%
1.6
%
12.5
%
Six Months Ended June 30,
2022
Adjusted EBITDA:
Projects
Energy
Assets
O&M
Other
Consolidated
Net income attributable to common
shareholders
$
25,946
$
16,756
$
5,058
$
1,840
$
49,600
Impact from redeemable
non-controlling interests
—
2,571
—
—
2,571
Plus (less): Income tax provision
(benefit)
8,979
(4,084
)
1,448
896
7,239
Plus: Other expenses, net
5,143
6,737
219
231
12,330
Plus: Depreciation and
amortization
1,574
23,372
621
835
26,402
Plus: Stock-based
compensation
6,044
559
286
317
7,206
Plus: Restructuring and other
charges
(12
)
(26
)
12
58
32
Adjusted EBITDA
$
47,674
$
45,885
$
7,644
$
4,177
$
105,380
Adjusted EBITDA margin
5.4
%
56.4
%
18.5
%
9.0
%
10.0
%
Six Months Ended June 30,
2021
Adjusted EBITDA:
Projects
Energy
Assets
O&M
Other
Consolidated
Net income attributable to common
shareholders
$
14,471
$
6,737
$
3,208
$
413
$
24,829
Impact from redeemable
non-controlling interests
—
5,488
—
—
5,488
(Less) plus: Income tax (benefit)
provision
(134
)
(86
)
138
391
309
Plus: Other expenses, net
1,378
7,521
30
193
9,122
Plus: Depreciation and
amortization
1,200
19,116
922
696
21,934
Plus: Stock-based
compensation
1,515
282
153
165
2,115
Plus: Restructuring and other
charges
153
30
34
65
282
Adjusted EBITDA
$
18,583
$
39,088
$
4,485
$
1,923
$
64,079
Adjusted EBITDA margin
4.9
%
55.7
%
11.8
%
4.7
%
12.2
%
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Non-GAAP net income and EPS:
Net income attributable to common
shareholders
$
32,216
$
13,655
$
49,600
$
24,829
Adjustment for accretion of tax equity
financing fees
(27
)
(30
)
(54
)
(61
)
Impact from redeemable non-controlling
interests
657
4,231
2,571
5,488
Plus: Restructuring and other charges
241
234
32
282
Less: Income tax effect of Non-GAAP
adjustments
(63
)
(61
)
(9
)
(73
)
Non-GAAP net income
33,024
18,029
52,140
30,465
Diluted net income per common share
$
0.61
$
0.26
$
0.93
$
0.48
Effect of adjustments to net income
0.01
0.08
0.05
0.11
Non-GAAP EPS
$
0.62
$
0.34
$
0.98
$
0.59
Adjusted cash from operations:
Cash flows from operating activities
$
(31,721
)
$
(57,759
)
$
(307,843
)
$
(96,483
)
Plus: proceeds from Federal ESPC
projects
56,943
36,639
121,731
70,159
Adjusted cash from operations
$
25,222
$
(21,120
)
$
(186,112
)
$
(26,324
)
Other Financial Measures (In
thousands) (Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
New contracts and
awards:
New contracts
$
148,600
$
188,000
$
375,300
$
261,000
New awards (1)
$
223,100
$
97,000
$
661,100
$
372,000
(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,
2022
Low
High
Operating income(1)
$137 million
$145 million
Depreciation and amortization
$52 million
$53 million
Stock-based compensation
$11 million
$12 million
Adjusted EBITDA
$200 million
$210 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/20220801005690/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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