– Strong Q3 Revenue and Profit with Growth
Across All Business Lines –
– Inflation Reduction Act Provides Excellent
Long Term Growth Opportunities –
– Notable Project and Asset Wins in Europe
as Momentum Increases –
– Re-affirms FY22 Guidance –
Third Quarter 2022 Financial Highlights:
(All financial result comparisons made are against the prior
year period unless otherwise noted)
- Revenues of $441.3 million, up 61%
- Net income attributable to common shareholders of $27.4
million, up 57%
- GAAP EPS of $0.51, up 55%
- Non-GAAP EPS of $0.54, up 32%
- Adjusted EBITDA of $57.9 million, up 44%
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, 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 delivered another quarter of excellent results. We are
adapting to the reality of the supply chain environment and
continue to execute effectively on our long-term growth strategy.
Each of our business lines showed solid year-on-year growth,
reflecting the benefits of our diversified business model and our
ability to provide customers with innovative end-to-end solutions.
The scope and comprehensive nature of our engagements continue to
increase, and notable wins in the European market and increasing
activity in the commercial and industrial (C&I) sector
demonstrated our success in expanding Ameresco’s addressable
market.
Ameresco is providing an update on the progress of the Southern
California Edison (SCE) battery energy storage systems (BESS)
projects. The SCE projects saw continued progress in the quarter,
with all battery cells and containers on site and early
commissioning steps underway. SCE also recently instructed us to
adjust the project schedules into 2023. Under the terms of the
contract, Ameresco is entitled to recover costs associated with
this schedule adjustment. We are working with SCE to analyze and
estimate these costs. We are also continuing discussions regarding
the applicability and scope of any force majeure relief based on
the force majeure notices we delivered to SCE and the impact the
schedule adjustments requested by SCE may have on the overall
project schedule and our force majeure claims. Our relationship
with SCE continues to be cooperative. Considering the schedule
adjustments requested by SCE and the delays disclosed earlier, we
anticipate the projects to be in service and achieve substantial
completion prior to the summer of 2023.
During the quarter we were honored to become a Great Place to
Work-Certified™ company for the first time. The designation is
based entirely on employee input making it more meaningful as it
reflects the positive experience of our over 1,300 employees. At
Ameresco, we believe in doing well by doing good, which underpins
our investments in the training and well-being of our employees,”
concluded George P. Sakellaris, President and Chief Executive
Officer.
Third Quarter Financial Results
(All financial result comparisons made are against the prior
year period unless otherwise noted.)
Total revenue increased 61% with growth across all of the
Company's lines of business. Project revenue increased 81% as we
continued to execute on the SCE projects. Energy Asset revenue grew
6% despite unplanned maintenance and downtime at two of our RNG
facilities. O&M revenue increased 9% as the company continued
to add long-term O&M contracts, especially on larger Federal
government projects. Other revenue grew 28% with strength in
integrated PV sales, especially to the oil & gas industry for
remote power applications. Gross margin expanded sequentially to
18.0%, which was in line with our expectations, given a smaller
contribution to our overall revenue mix in the quarter from the
lower margin SCE design/build projects as they near completion.
Revenue performance together with the Company's strong operating
leverage led to a 57% increase in net income to $27.4 million, and
a 44% increase in Adjusted EBITDA to $57.9 million. The results for
the three months ended September 30, 2022 and 2021 reflect a
non-cash downward adjustment of $0.3 million and $2.9 million,
respectively, related to redeemable non-controlling interest
activities. The current quarter results also reflect a non-cash
downward adjustment of $1.1 million to recognize additional
contingent consideration related to the Company’s Smart Building
Solutions business unit which was acquired in 2021. Working capital
needs increased slightly from second quarter 2022 levels, in-line
with our expectations due to the continued execution of our large
SCE design/build projects. The company ended the quarter with
approximately $123 million of available cash and generated nearly
$87 million in adjusted cash from operations.
(in millions)
3Q 2022
3Q 2021
Revenue
Net Income (1)
Adj. EBITDA
Revenue
Net Income (1)
Adj. EBITDA
Projects
$351.5
$15.9
$30.2
$194.0
$9.6
$12.6
Energy Assets
$41.7
$8.8
$22.4
$39.2
$5.5
$23.6
O&M
$21.9
$1.7
$3.1
$20.0
$2.6
$3.4
Other
$26.2
$1.0
$2.2
$20.4
$(0.3)
$0.6
Total (1)
$441.3
$27.4
$57.9
$273.7
$17.4
$40.2
(1) Net Income represents net income
attributable to common shareholders.
(2) Numbers in table may not foot due to
rounding.
($ in millions)
At September 30, 2022
Awarded Project Backlog (1)
$1,693
Contracted Project Backlog
$933
Total Project Backlog
$2,626
O&M Revenue Backlog
$1,246
Energy Asset Visibility (2)
$1,020
Operating Energy Assets
360 MWe
Ameresco's Net Assets in
Development (3)
452 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) Net MWe capacity includes only our
share of any jointly owned assets
Project Highlights
In the Third Quarter of 2022:
- Ameresco, and partner Sunel, were selected by Cero Generation,
as the contractors for “Delfini”, a 100 MWp solar photovoltaic (PV)
project in Drama, Greece.
- Ameresco was awarded a new project to install a microgrid
system at White Sands Missile Range to provide resilient power for
several of the base’s potable water wells. The microgrid includes a
new 700kW solar photovoltaic array, a 500kW natural gas generator
and a 500kW battery energy storage system and is designed to
provide 14 days of power in the event of an outage.
- Ameresco was awarded a comprehensive utility savings project in
partnership with Southwest Gas at Fort Irwin, CA for $98M.
- The Company completed a 2.6 MW "brightfield" solar installation
on a former General Motors Plant brownfield site in Danville,
Illinois.
- Ameresco announced phase two of a longstanding partnership with
Joint Base McGuire-Dix-Lakehurst (JBMDL) to provide
mission-critical energy infrastructure updates at the joint base as
part of a comprehensive $92 million project designed to add more
onsite solar power, energy efficiency measures, and infrastructure
upgrades.
Asset Highlights
In the Third Quarter of 2022:
- Ameresco continued to grow its Assets in Development, bringing
the total to 501 MWe. After subtracting Ameresco’s partners’
minority interests, Ameresco’s owned capacity of Assets in
Development is 452 MWe.
- Ameresco, together with Colorado Mountain College and Holy
Cross Energy, partnered to install and complete 5MW of solar PV and
15MWH battery energy storage, the largest installation of its kind
in the State of Colorado.
Summary and Outlook
“Year-to-date results have put us on track to achieve record
results in 2022 and provide the foundation for our continued
progress in 2023 and beyond. We see high energy prices, together
with customer demand for both resilience and cost savings, and the
recently enacted Inflation Reduction Act (IRA) as long-term growth
catalysts for Ameresco. These factors strengthen our ability to
achieve our 2024 Adjusted EBITDA target of $300 million and
continue our growth trajectory in the years ahead.” Mr. Sakellaris
noted.
“We are pleased to reiterate our 2022 guidance. During 2022, we
anticipate placing between 50 and 70 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.
We look forward to welcoming analysts and institutional
investors on November 15, 2022 for a tour of our Phoenix, AZ RNG
facility showcasing the largest wastewater treatment
biogas-to-renewable natural gas facility in the US. We look forward
to hosting the plant tour followed by a presentation to provide a
deeper understanding of Ameresco’s RNG business.” 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 redeemable
non-controlling interest activity related to tax-equity
partnerships, 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 third 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,
the impact of the IRA on our business, longer term outlook, 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 and global trade conflicts and
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)
September 30,
December 31,
2022
2021
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
122,537
$
50,450
Restricted cash
24,403
24,267
Accounts receivable, net
219,817
161,970
Accounts receivable retainage, net
42,456
43,067
Costs and estimated earnings in excess of
billings
628,529
306,172
Inventory, net
13,095
8,807
Prepaid expenses and other current
assets
21,980
25,377
Income tax receivable
4,116
5,261
Project development costs, net
16,062
13,214
Total current assets
1,092,995
638,585
Federal ESPC receivable
726,679
557,669
Property and equipment, net
14,772
13,117
Energy assets, net
1,032,809
856,531
Deferred income tax assets, net
3,357
3,703
Goodwill, net
70,118
71,157
Intangible assets, net
5,089
6,961
Operating lease assets
37,952
41,982
Restricted cash, non-current portion
16,618
12,337
Other assets
37,654
22,779
Total assets
$
3,038,043
$
2,224,821
LIABILITIES, REDEEMABLE NON-CONTROLLING
INTERESTS AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portions of long-term debt and
financing lease liabilities
$
301,247
$
78,934
Accounts payable
411,371
308,963
Accrued expenses and other current
liabilities
95,268
43,311
Current portions of operating lease
liabilities
6,129
6,276
Billings in excess of cost and estimated
earnings
43,173
35,918
Income taxes payable
3,072
822
Total current liabilities
860,260
474,224
Long-term debt and financing lease
liabilities, net of current portion, unamortized discount and debt
issuance costs
511,621
377,184
Federal ESPC liabilities
706,933
532,287
Deferred income tax liabilities, net
10,542
3,871
Deferred grant income
7,716
8,498
Long-term operating lease liabilities, net
of current portion
31,142
35,135
Other liabilities
47,212
43,176
Commitments and contingencies
Redeemable non-controlling interests,
net
$
48,077
$
46,182
Stockholders' equity:
Preferred stock, $0.0001 par value,
5,000,000 shares authorized, no shares issued and outstanding at
September 30, 2022 and December 31, 2021
—
—
Class A common stock, $0.0001 par value,
500,000,000 shares authorized, 36,015,988 shares issued and
33,914,193 shares outstanding at September 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 September 30, 2022 and December 31, 2021
2
2
Additional paid-in capital
299,487
283,982
Retained earnings
515,642
438,732
Accumulated other comprehensive loss,
net
(5,650
)
(6,667
)
Treasury stock, at cost, 2,101,795 shares
at September 30, 2022 and December 31, 2021
(11,788
)
(11,788
)
Stockholders' equity before
non-controlling interest
797,696
704,264
Non-controlling interest
16,844
—
Total stockholders’ equity
814,540
704,264
Total liabilities, redeemable
non-controlling interests and stockholders' equity
$
3,038,043
$
2,224,821
AMERESCO, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(In thousands, except per
share amounts) (Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2022
2021
2022
2021
Revenues
$
441,296
$
273,682
$
1,492,695
$
799,804
Cost of revenues
361,740
214,869
1,263,458
640,760
Gross profit
79,556
58,813
229,237
159,044
Selling, general and administrative
expenses
40,618
35,168
118,559
95,651
Operating income
38,938
23,645
110,678
63,393
Other expenses, net
7,546
4,557
19,876
13,679
Income before income taxes
31,392
19,088
90,802
49,714
Income tax provision (benefit)
3,657
(1,192
)
10,896
(883
)
Net income
27,735
20,280
79,906
50,597
Net income attributable to redeemable
non-controlling interests
(344
)
(2,857
)
(2,915
)
(8,345
)
Net income attributable to common
shareholders
$
27,391
$
17,423
$
76,991
$
42,252
Net income per share attributable to
common shareholders:
Basic
$
0.53
$
0.34
$
1.48
$
0.83
Diluted
$
0.51
$
0.33
$
1.44
$
0.81
Weighted average common shares
outstanding:
Basic
51,869
51,464
51,810
50,599
Diluted
53,297
52,839
53,252
52,013
AMERESCO, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Nine Months Ended September
30,
2022
2021
Cash flows from operating activities:
Net income
$
79,906
$
50,597
Adjustments to reconcile net income to net
cash flows from operating activities:
Depreciation of energy assets, net
36,911
31,449
Depreciation of property and equipment
2,057
2,397
Net increase in fair value of contingent
consideration
814
—
Accretion of ARO liabilities
108
90
Amortization of debt discount and debt
issuance costs
2,869
2,085
Amortization of intangible assets
1,462
241
Provision for bad debts
363
29
Loss on disposal / impairment of
long-lived assets
888
1,901
Equity in earnings of unconsolidated
entity
(1,477
)
(128
)
Net (gain) loss from derivatives
(225
)
1,892
Stock-based compensation expense
10,837
4,280
Deferred income taxes, net
4,927
(1,834
)
Unrealized foreign exchange loss
466
124
Changes in operating assets and
liabilities:
Accounts receivable
(47,257
)
27,721
Accounts receivable retainage
225
(9,214
)
Federal ESPC receivable
(180,249
)
(187,984
)
Inventory, net
(4,287
)
246
Costs and estimated earnings in excess of
billings
(325,057
)
(22,166
)
Prepaid expenses and other current
assets
864
3,771
Project development costs
(823
)
15
Other assets
(10,254
)
(3,467
)
Accounts payable, accrued expenses and
other current liabilities
143,026
(17,677
)
Billings in excess of cost and estimated
earnings
7,802
(5,856
)
Other liabilities
(436
)
(155
)
Income taxes receivable, net
3,371
5,299
Cash flows from operating activities
(273,169
)
(116,344
)
Cash flows from investing activities:
Purchases of property and equipment
(3,981
)
(2,133
)
Capital investment in new energy
assets
(182,119
)
(141,253
)
Capital investment in major maintenance of
energy assets
(16,106
)
(6,714
)
Loans to joint venture investments
(458
)
—
Cash flows from investing activities
(202,664
)
(150,100
)
Cash flows from financing activities:
Proceeds from equity offering, net of
offering costs
—
120,084
Payments of debt discount and debt
issuance costs
(2,885
)
(2,650
)
Proceeds from exercises of options and
ESPP
4,430
4,883
Proceeds from (payments on) senior secured
revolving credit facility, net
139,000
(38,073
)
Proceeds from long-term debt
financings
331,086
118,160
Proceeds from Federal ESPC projects
173,865
114,185
Proceeds for (payments on) energy assets
from Federal ESPC
7,675
(174
)
Investment fund call option exercise
—
(1,000
)
Contributions from non-controlling
interest
13,148
—
(Distributions to) proceeds from
redeemable non-controlling interests, net
(784
)
1,468
Payments on long-term debt and financing
leases
(111,341
)
(55,616
)
Cash flows from financing activities
554,194
261,267
Effect of exchange rate changes on
cash
(1,857
)
118
Net increase (decrease) in cash, cash
equivalents, and restricted cash
76,504
(5,059
)
Cash, cash equivalents, and restricted
cash, beginning of period
87,054
98,837
Cash, cash equivalents, and restricted
cash, end of period
$
163,558
$
93,778
Non-GAAP Financial Measures
(In thousands) (Unaudited)
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: Contingent consideration,
restructuring and other charges
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
%
Three Months Ended September
30, 2021
Adjusted EBITDA:
Projects
Energy
Assets
O&M
Other
Consolidated
Net income attributable to common
shareholders
$
9,617
$
5,548
$
2,550
$
(292
)
$
17,423
Impact from redeemable non-controlling
interests
—
2,857
—
—
2,857
Plus (less): Income tax provision
(benefit)
398
(1,942
)
298
54
(1,192
)
Plus: Other expenses, net
475
4,013
14
55
4,557
Plus: Depreciation and amortization
581
10,861
383
328
12,153
Plus: Stock-based compensation
1,535
310
158
162
2,165
Plus: Energy asset impairment
—
1,901
—
—
1,901
Plus: Restructuring and other charges
25
7
2
253
287
Adjusted EBITDA
$
12,631
$
23,555
$
3,405
$
560
$
40,151
Adjusted EBITDA margin
6.5
%
60.0
%
17.0
%
2.7
%
14.7
%
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: Contingent consideration,
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
%
Nine Months Ended September
30, 2021
Adjusted EBITDA:
Projects
Energy
Assets
O&M
Other
Consolidated
Net income attributable to common
shareholders
$
24,087
$
12,286
$
5,759
$
120
$
42,252
Impact from redeemable non-controlling
interests
—
8,345
—
—
8,345
Plus (less): Income tax provision
(benefit)
264
(2,028
)
437
444
(883
)
Plus: Other expenses, net
1,853
11,534
44
248
13,679
Plus: Depreciation and amortization
1,781
29,978
1,305
1,023
34,087
Plus: Stock-based compensation
3,056
586
311
327
4,280
Plus: Energy asset impairment
—
1,901
—
—
1,901
Plus: Restructuring and other charges
178
37
36
318
569
Adjusted EBITDA
$
31,219
$
62,639
$
7,892
$
2,480
$
104,230
Adjusted EBITDA margin
5.5
%
57.2
%
13.6
%
4.0
%
13.0
%
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
Non-GAAP net income and EPS:
Net income attributable to common
shareholders
$
27,391
$
17,423
$
76,991
$
42,252
Adjustment for accretion of tax equity
financing fees
(27
)
(27
)
(81
)
(89
)
Impact from redeemable non-controlling
interests
344
2,857
2,915
8,345
Plus: Energy asset impairment
—
1,901
—
1,901
Plus: Contingent consideration,
restructuring and other charges
1,264
287
1,296
569
Less: Income tax effect of Non-GAAP
adjustments
(329
)
(569
)
(338
)
(642
)
Non-GAAP net income
28,643
21,872
80,783
52,336
Diluted net income per common share
$
0.51
$
0.33
$
1.44
$
0.81
Effect of adjustments to net income
0.03
0.08
0.08
0.20
Non-GAAP EPS
$
0.54
$
0.41
$
1.52
$
1.01
Adjusted cash from operations:
Cash flows from operating activities
$
34,674
$
(19,861
)
$
(273,169
)
$
(116,344
)
Plus: proceeds from Federal ESPC
projects
52,134
44,026
173,865
114,185
Adjusted cash from operations
$
86,808
$
24,165
$
(99,304
)
$
(2,159
)
Other Financial Measures (In
thousands) (Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
New contracts and awards:
New contracts
$
282,500
$
190,500
$
657,800
$
451,500
New awards (1)
$
147,440
$
346,200
$
808,540
$
718,200
(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, contingent consideration expense, 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/20221101006196/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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