Awarded Project Backlog Conversion Drives
Significant Q4 Revenue and Profit Growth
Record Total Project Backlog of nearly $4B,
with $520M in New Awards in Q4
717 MWe of Assets in Development, with 63
MWe Placed into Operation in the Quarter
Guiding to 38% Adj. EBITDA Growth at the
Midpoint for 2024
Full Year and Fourth Quarter 2023 Financial
Highlights:
- Revenues of $1,374.6 million and $441.4 million
- Net income attributable to common shareholders of $62.5 million
and $33.7 million
- GAAP EPS of $1.17 and $0.64
- Non-GAAP EPS of $1.26 and $0.69
- Adjusted EBITDA of $163.0 million and $54.9 million
Ameresco, Inc. (NYSE:AMRC), a leading cleantech integrator
specializing in energy efficiency and renewable energy, today
announced financial results for the fiscal quarter ended December
31, 2023. The Company also furnished supplemental information in
conjunction with this press release in a Current Report on Form
8-K. The supplemental information, which includes Non-GAAP
financial measures, has been posted to the “Investors” section of
the Company’s website at www.ameresco.com. Reconciliations of
Non-GAAP measures to the appropriate GAAP measures are included
herein. All financial result comparisons made are against the prior
year period unless otherwise noted.
CEO George Sakellaris commented, “Fourth quarter results
represented a strong finish to a challenging year, demonstrating
positive momentum that supports Ameresco’s long term growth
trajectory. In addition to the considerable revenue and Adjusted
EBITDA growth achieved in the quarter, we grew total project
backlog nearly 50%, ending 2023 with a record $3.9 billion. We also
grew our assets in development 35% to 717 MWe at the end of the
year. Both of which provide a pathway for continued growth over the
next several years. Despite the industry headwinds, specifically
supply chain issues and administrative bottlenecks that caused the
push-out of project revenues we noted last quarter, we are pleased
to report that we converted and executed on a number of these
previously-delayed projects contributing to the 40% increase in our
fourth quarter Project revenues. Additionally, we have taken
actions to streamline our organization and have considered these
industry factors in our future planning and project scheduling.
With respect to Energy Assets, we placed 63 MWe into operation in
the fourth quarter, bringing our total operating Energy Assets to
over 500 MWe.
“We continue to make great strides in growing our UK and
European footprint. After a year of strong organic and acquisitive
revenue growth of over 150%, this unit now accounts for over 10% of
our total revenue. We believe this market remains highly fragmented
and very economically attractive to Ameresco.
“Ameresco’s record backlog and asset pipeline metrics underscore
the strength of our market positioning and our ability to continue
to achieve substantial long-term growth in revenues and
profitability. New awards in 2023 were approximately $2.2 billion,
double last year’s $1.1 billion, and proposal activity remained at
an all-time high. In 2023, our Energy Asset business continued to
add high return assets to our development pipeline. During the
year, we increased Ameresco-owned Assets in development by 199 MWe
to 669 MWe, while also bringing 118 MWe into operation during the
year.”
Fourth Quarter Financial Results
(All financial result comparisons made are against the prior
year period unless otherwise noted.)
(in millions)
4Q 2023
4Q 2022
Revenue
Net Income (1)
Adj. EBITDA
Revenue
Net Income (1)
Adj. EBITDA
Projects
$346.5
$27.2
$26.3
$247.1
$7.8
$15.5
Energy Assets
$43.9
$1.3
$23.3
$39.1
$7.0
$20.1
O&M
$24.4
$4.1
$3.4
$21.6
$2.0
$3.3
Other
$26.6
$1.1
$1.9
$23.9
$1.1
$2.3
Total (2)
$441.4
$33.7
$54.9
$331.7
$17.9
$41.2
(1) Net Income represents net income
attributable to common shareholders
(2) Numbers in table may not sum due to
rounding.
Total revenue was $441.4 million, a 33% increase, with
double-digit growth across all four of our lines of business. Our
Projects business experienced 40% revenue growth as the Company
executed on a number of large contract conversions, some that had
slipped from the previous quarter, and benefited from increased
overall activity, including revenues related to the addition of the
Enerqos acquisition in Italy earlier in the year. We also saw a
benefit of approximately $40 million from faster implementation of
active contracts. Energy Asset revenue increased 12.3% driven by
continued growth in our operating asset portfolio and stronger RIN
prices. O&M revenue was up 13.2% reflecting increased growth in
our long-term contracts while Other revenue increased 11.4%. Gross
margin of 16.8% declined due to an increase in the mix of larger,
lower margin contracts. We continued to take advantage of clean
energy tax incentives available under the Inflation Reduction Act,
resulting in a larger than expected effective tax rate benefit of
(67.0%). Net income attributable to common shareholders was $33.7
million. The GAAP results for 2023 reflect a non-cash downward
adjustment of $1.6 million related to energy asset impairment
charges and a non-cash downward adjustment of $2.2 million related
to a goodwill impairment charge. Adjusted EBITDA increased 33% to
$54.9 million. GAAP and Non-GAAP EPS were $0.64 and $0.69,
respectively, with Non-GAAP EPS increasing 97%.
Balance Sheet and Cash Flow
Metrics
($ in millions)
December 31, 2023
Total Corporate Debt (1)
$279.9
Corporate Debt Leverage Ratio (2)
3.3x
Total Energy Asset Debt (3)
$1,213.3
Energy Asset Book Value (4)
$1,689.4
Energy Debt Advance Rate (5)
72%
Q4 Cash Flows from Operating
Activities
$(29.6)
Plus: Q4 Proceeds
from Federal ESPC Projects
$47.0
Equals: Q4 Adjusted Cash from
Operations
$17.5
8-quarter rolling average Cash Flows from
Operating Activities
$(51.0)
Plus: 8-quarter
rolling average Proceeds from Federal ESPC Projects
$49.1
Equals: 8-quarter rolling average Adjusted
Cash from Operations
$(1.9)
(1) Term loans and drawn amounts on the
revolving line of credit on our Sr. Secured Credit Facility
(2) Debt to EBITDA, as calculated under
our Sr. Secured Credit Facility
(3) Term loans, sale-leasebacks and
construction loan project financings for our Energy Assets in
operations and in-construction and development
(4) Book Value of our Energy Assets in
operations and in-construction and development
(5) Total Energy Asset Debt divided by
Energy Asset Book Value
The Company ended the quarter with $79.3 million in cash. Our
total corporate debt including our term loans and drawn amounts on
our revolving line of credit continued to decline to $279.9
million, with a corporate leverage ratio as calculated under our
Sr. Secured Credit Facility of 3.3x, below our 3.75x bank covenant
level. Our Energy Asset Debt was $1.2 billion with an Energy Debt
Advance rate of 72% on the Energy Asset Book Value. Our Adjusted
Cash from Operations in Q4 was $17.5 million and $84.3 million for
2023. Given the volatility of quarterly Adjusted Cash from
Operations we are also providing investors with a quarterly average
over a trailing 8-quarter period in our supplemental materials,
representing our average implementation cycle.
After the end of the year, we announced that we had engaged an
investment bank to raise subordinated debt as required by the
December 2023 amendment to our Sr. Secured Credit Facility. The
debt raise, if successful, would be used to repay outstanding
amounts on the Sr. Secured Credit Facility.
Project and Asset Highlights
($ in millions)
At December 31, 2023
Awarded Project Backlog (1)
$2,555
Contracted Project Backlog
$1,324
Total Project Backlog (2)
$3,879
12-month Contracted Backlog (3)
$719
O&M Revenue Backlog
$1,222
12-month O&M Backlog
$89
Energy Asset Visibility (4)
$2,300
Operating Energy Assets
508 MWe
Ameresco's Net Assets in Development
(2)
669 MWe
(1) Customer contracts that have not been
signed yet
(2) Project backlog and Net MWe capacity
after minority interests
(3) We define our 12-month backlog as the
estimated amount of revenues that we expect to recognize in the
next twelve months from our fully-contracted backlog
(4) Estimated contracted revenue and
incentives during PPA period plus estimated additional revenue from
operating RNG assets over a 20-year period, assuming RINs at
$1.50/gallon and brown gas at $3.50/MMBtu with $3.00/MMBtu for LCFS
on certain projects
- Ameresco’s Assets in Development ended the quarter at 717 MWe.
After subtracting Ameresco’s partners’ minority interests,
Ameresco’s owned capacity of Assets in Development at quarter end
was 669 MWe.
- Increased net assets in development by 63 MW in the fourth
quarter driven by increased solar and BESS activity.
- Ameresco continued to grow its innovative BESS energy assets
under development with the upcoming installation of a 50 MW / 200
MWh system with Silicon Valley Power.
- Ameresco, along with its partner Sunel Group, continued its
international business momentum and has begun construction of 300
MW of design-build solar parks across the UK for Sonnedix, a global
renewable energy producer.
- The military market continued to show significant interest in
installations that provide resiliency to military installations
around the world. Ameresco, along with a partner, will install a
6.25 MW solar generation plant funded by the Department of
Defense’s Energy Resilience and Conservation Investment Program
(ERCIP), which funds projects that improve energy resilience,
contribute to mission assurance, save energy and reduce DoD’s
energy costs.
Summary and Outlook
“Ameresco’s robust backlog and growing assets in development are
strong indicators of how well aligned our capabilities are with
market demand. Our broad and deep technical expertise has enabled
us to execute on complex projects, positioning us as a leading
provider of cost-effective, resilient energy solutions for public
and private clients. With over $7 billion in multi-year revenue
visibility from our project backlog and asset development pipeline,
we have a roadmap to achieving our long-term growth targets.
Ameresco’s full year 2024 guidance is included in the table
below and reflects an expected revenue and Adjusted EBITDA growth
of 20% and 38%, respectively, at the midpoints. We plan to continue
to take advantage of clean energy tax incentives resulting in a
likely net tax benefit. The Company expects to place approximately
200 MWe of energy assets in service for all of 2024. Our expected
capex for 2024 is $350 million to $400 million, the majority of
which we expect to fund with project financing. For the first
quarter of fiscal 2024, we expect revenues of $225 million to $275
million and adjusted EBITDA of $20 million to $30 million, with
negative non-GAAP EPS. We expect the remainder of the year to
follow a more normal quarterly seasonal cadence.
FY 2024 Guidance
Ranges
Revenue
$1.60 billion
$1.70 billion
Gross Margin
17.5%
18.5%
Adjusted EBITDA
$210 million
$240 million
Interest Expense & Other
$60 million
$65 million
Non-GAAP EPS
$1.30
$1.50
The Company’s Adjusted EBITDA and Non-GAAP
EPS guidance excludes the impact of redeemable non-controlling
interest activity, one-time charges, asset impairment charges,
changes in contingent consideration, restructuring activities, as
well as any related tax impact.
We are working closely with Southern California Edison Company
on the final steps toward substantial completion for two of the
three projects. Construction activities and preparation for
commissioning have begun for the third project, which was
significantly impacted by the heavy rainfall in California in 2023.
This last site is expected to reach substantial completion in the
summer of 2024.
Conference Call/Webcast Information
The Company will host a conference call today at 4:30 p.m. ET to
discuss fourth quarter 2023 financial results, business and
financial outlook and other business highlights. Participants may
access the earnings conference call by pre-registering here at
least fifteen minutes in advance. A live, listen-only webcast of
the conference call will also be available over the Internet.
Individuals wishing to listen can access the call through the
“Investors” section of the Company’s website at www.ameresco.com.
If you are unable to listen to the live call, an archived webcast
will be available on the Company’s website for one year.
Use of Non-GAAP Financial Measures
This press release and the accompanying tables include
references to adjusted EBITDA, Non- GAAP EPS, Non-GAAP net income
and adjusted cash from operations, which are Non-GAAP financial
measures. For a description of these Non-GAAP financial measures,
including the reasons management uses these measures, please see
the section following the accompanying tables titled “Exhibit A:
Non-GAAP Financial Measures”. For a reconciliation of these
Non-GAAP financial measures to the most directly comparable
financial measures prepared in accordance with GAAP, please see
Non-GAAP Financial Measures and Non-GAAP Financial Guidance in the
accompanying tables.
About Ameresco, Inc.
Founded in 2000, Ameresco, Inc. (NYSE:AMRC) is a leading
cleantech integrator and renewable energy asset developer, owner
and operator. Our comprehensive portfolio includes energy
efficiency, infrastructure upgrades, asset sustainability and
renewable energy solutions delivered to clients throughout North
America and Europe. Ameresco’s sustainability services in support
of clients’ pursuit of Net-Zero include upgrades to a facility’s
energy infrastructure and the development, construction, and
operation of distributed energy resources. Ameresco has
successfully completed energy saving, environmentally responsible
projects with Federal, state, and local governments, healthcare and
educational institutions, housing authorities, and commercial and
industrial customers. With its corporate headquarters in
Framingham, MA, Ameresco has more than 1,200 employees providing
local expertise in the United States, Canada, and Europe. For more
information, visit www.ameresco.com.
Safe Harbor Statement
Any statements in this press release about future expectations,
plans and prospects for Ameresco, Inc., including statements about
market conditions, pipeline, visibility, and backlog, as well as
estimated future revenues, net income, adjusted EBITDA, Non-GAAP
EPS, gross margin, effective tax rate, capital investments, other
financial guidance and longer term outlook, statements about our
financing plans including the status of discussion related to
raising subordinated debt and our ability to finalize such a debt
financing, the impact the IRA, supply chain disruptions, shortage
and cost of materials and labor, and other macroeconomic and
geopolitical challenges; our expectations related to our agreement
with SCE including the impact of delays and any requirement to pay
liquidated damages, 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: demand for our energy efficiency and renewable
energy solutions; 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; the ability to perform under signed
contracts without delay and in accordance with their terms and
related liquidated and other damages we may be subject to; the
fiscal health of the government and the risk of government
shutdowns; our ability to complete and operate our projects on a
profitable basis and as committed to our customers; our cash flows
from operations and our ability to arrange financing to fund our
operations and projects our customers’ ability to finance their
projects and credit risk from our customers; our ability to comply
with covenants in our existing debt agreements including the
requirement to raise additional subordinated debt; the impact of
macroeconomic challenges, weather related events and climate change
on our business; our reliance on third parties for our construction
and installation work; availability and cost of labor and equipment
particularly given global supply chain challenges and global trade
conflicts; global supply chain challenges, component shortages and
inflationary pressures; 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 output and performance of
our energy plants and energy projects; cybersecurity incidents and
breaches; regulatory and other risks inherent to constructing and
operating energy assets 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; the addition of
new customers or the loss of existing customers; market price of
our Class A Common stock prevailing from time to time; the nature
of other investment opportunities presented to our Company from
time to time; risks related to our international operation and
international growth strategy; and other factors discussed in our
most recent Annual Report on Form 10-K. 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,
2023
2022
ASSETS
Current assets:
Cash and cash equivalents
$
79,271
$
115,534
Restricted cash
62,311
20,782
Accounts receivable, net
153,362
174,009
Accounts receivable retainage
33,826
38,057
Costs and estimated earnings in excess of
billings
636,163
576,363
Inventory, net
13,637
14,218
Prepaid expenses and other current
assets
123,391
38,617
Income tax receivable
5,775
7,746
Project development costs, net
20,735
16,025
Total current assets
1,128,471
1,001,351
Federal ESPC receivable
609,265
509,507
Property and equipment, net
17,395
15,707
Energy assets, net
1,689,424
1,181,525
Goodwill, net
75,587
70,633
Intangible assets, net
6,808
4,693
Operating lease assets
58,586
38,224
Restricted cash, non-current portion
12,094
13,572
Deferred income tax assets, net
26,411
3,045
Other assets
89,735
38,564
Total assets
$
3,713,776
$
2,876,821
LIABILITIES, REDEEMABLE NON-CONTROLLING
INTERESTS AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portions of long-term debt and
financing lease liabilities, net
322,247
331,479
Accounts payable
402,752
349,126
Accrued expenses and other current
liabilities
108,831
89,166
Current portions of operating lease
liabilities
13,569
5,829
Billings in excess of cost and estimated
earnings
52,903
34,796
Income taxes payable
1,169
1,672
Total current liabilities
901,471
812,068
Long-term debt and financing lease
liabilities, net of current portion, unamortized discount and debt
issuance costs
1,170,075
568,635
Federal ESPC liabilities
533,054
478,497
Deferred income tax liabilities, net
4,479
9,181
Deferred grant income
6,974
7,590
Long-term operating lease liabilities, net
of current portion
42,258
31,703
Other liabilities
82,714
49,493
Commitments and contingencies
Redeemable non-controlling interests,
net
$
46,865
$
46,623
Stockholders’ equity:
Preferred stock, $0.0001 par value,
5,000,000 shares authorized, no shares issued and outstanding at
December 31, 2023 and 2022
—
—
Class A common stock, $0.0001 par value,
500,000,000 shares authorized, 36,378,990 shares issued and
34,277,195 shares outstanding at December 31, 2023, 36,050,157
shares issued and 33,948,362 shares outstanding at December 31,
2022
3
3
Class B common stock, $0.0001 par value,
144,000,000 shares authorized, 18,000,000 shares issued and
outstanding at December 31, 2023 and 2022
2
2
Additional paid-in capital
320,892
306,314
Retained earnings
595,911
533,549
Accumulated other comprehensive loss,
net
(3,045
)
(4,051
)
Treasury stock, at cost, 2,101,795 shares
at December 31, 2023 and 2022
(11,788
)
(11,788
)
Stockholders’ equity before
non-controlling interest
901,975
824,029
Non-controlling interests
23,911
49,002
Total stockholders’ equity
925,886
873,031
Total liabilities, redeemable
non-controlling interests and stockholders’ equity
$
3,713,776
$
2,876,821
AMERESCO, INC.
CONSOLIDATED STATEMENTS OF
INCOME
(In thousands, except per
share amounts)
Three Months Ended December
31,
Year Ended December
31,
2023
2022
2023
2022
(Unaudited)
(Unaudited)
Revenues
$
441,368
$
331,727
$
1,374,633
$
1,824,422
Cost of revenues
367,192
270,131
1,128,204
1,533,589
Gross profit
74,176
61,596
246,429
290,833
Earnings from unconsolidated entities
402
170
1,758
1,647
Selling, general and administrative
expenses
36,672
39,452
162,138
159,488
Asset impairments
3,831
—
3,831
—
Operating income
34,075
22,314
82,218
132,992
Other expenses, net
16,066
7,397
43,949
27,273
Income before income taxes
18,009
14,917
38,269
105,719
Income tax (benefit) provision
(15,083
)
(3,726
)
(25,635
)
7,170
Net income
33,092
18,643
63,904
98,549
Net loss (income) attributable to
non-controlling interests and redeemable non-controlling
interests
643
(708
)
(1,434
)
(3,623
)
Net income attributable to common
shareholders
$
33,735
$
17,935
$
62,470
$
94,926
Net income per share attributable to
common shareholders:
Basic
$
0.65
$
0.34
$
1.20
$
1.83
Diluted
$
0.64
$
0.34
$
1.17
$
1.78
Weighted average common shares
outstanding:
Basic
52,247
51,925
52,140
51,841
Diluted
53,063
53,332
53,228
53,278
AMERESCO, INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In thousands)
Year Ended December
31,
2023
2022
Cash flows from operating
activities:
Net income
$
63,904
$
98,549
Adjustments to reconcile net income to net
cash flows from operating activities:
Depreciation of energy assets, net
59,390
49,755
Depreciation of property and equipment
4,155
2,665
Amortization of debt discount and debt
issuance costs
4,201
4,211
Amortization of intangible assets
2,366
1,858
Net increase in fair value of contingent
consideration
347
1,614
Accretion of ARO liabilities
258
146
Impairment of goodwill
2,222
—
Provision (recoveries of) for bad
debts
356
(382
)
Impairment of long-lived assets / loss on
write-off
1,710
937
In-kind lease expenses, net
(3,164
)
—
Earnings from unconsolidated entities
(1,758
)
(1,647
)
Net gain from derivatives
(1,108
)
(212
)
Stock-based compensation expense
10,318
15,046
Deferred income taxes, net
(27,602
)
3,918
Unrealized foreign exchange gain
(368
)
(123
)
Changes in operating assets and
liabilities:
Accounts receivable
52,647
3,477
Accounts receivable retainage
4,337
4,716
Federal ESPC receivable
(260,378
)
(259,499
)
Inventory, net
581
(5,411
)
Costs and estimated earnings in excess of
billings
(13,211
)
(272,629
)
Prepaid expenses and other current
assets
(41,125
)
(3,182
)
Project development costs
(5,486
)
(685
)
Other assets
(6,896
)
(11,327
)
Accounts payable, accrued expenses, and
other current liabilities
53,238
36,155
Billings in excess of cost and estimated
earnings
26,202
449
Other liabilities
3,559
(5,074
)
Income taxes receivable (payable), net
1,314
(1,613
)
Cash flows from operating activities
(69,991
)
(338,288
)
Cash flows from investing
activities:
Purchases of property and equipment
(5,713
)
(5,296
)
Capital investment in energy assets
(538,418
)
(304,596
)
Capital investment in major maintenance of
energy assets
(7,636
)
(18,007
)
Acquisitions, net of cash received
(9,182
)
—
Contributions to equity and other
investments
(5,429
)
—
Loans to joint venture investments
(565
)
(459
)
Cash flows from investing activities
$
(566,943
)
$
(328,358
)
Cash flows from financing
activities:
Payments of debt discount and debt
issuance costs
(9,315
)
(3,695
)
Proceeds from exercises of options and
ESPP
4,455
5,963
Payment of contingent consideration
(1,866
)
—
(Payments on) proceeds from senior secured
revolving credit facility, net
(43,000
)
137,900
Proceeds from long-term debt
financings
843,498
468,476
Proceeds from Federal ESPC projects
154,338
238,360
Net proceeds from energy asset receivable
financing arrangements
14,512
14,341
Investment fund call option exercise
—
(839
)
Contributions from non-controlling
interest
3,738
32,706
Distributions to non-controlling
interest
(21,842
)
—
Distributions to redeemable
non-controlling interests, net
(658
)
(1,128
)
Payments on long-term debt and financing
leases
(303,057
)
(161,857
)
Cash flows from financing activities
640,803
730,227
Effect of exchange rate changes on
cash
(81
)
(747
)
Net increase in cash, cash equivalents,
and restricted cash
3,788
62,834
Cash, cash equivalents, and restricted
cash, beginning of year
149,888
87,054
Cash, cash equivalents, and restricted
cash, end of year
$
153,676
$
149,888
Non-GAAP Financial Measures (Unaudited,
in thousands)
Three Months Ended December
31, 2023
Adjusted EBITDA:
Projects
Energy Assets
O&M
Other
Consolidated
Net income (loss) attributable to common
shareholders
$
27,149
$
1,333
$
4,145
$
1,108
$
33,735
Impact from redeemable non-controlling
interests
—
(299
)
—
—
(299
)
Less: Income tax benefit
(7,312
)
(6,722
)
(991
)
(58
)
(15,083
)
Plus: Other expenses, net
4,130
11,551
110
275
16,066
Plus: Depreciation and amortization
1,202
16,304
295
733
18,534
Plus: Stock-based compensation
(1,113
)
(440
)
(210
)
(237
)
(2,000
)
Plus: Asset impairment charges
2,222
1,609
—
—
3,831
Plus: Restructuring and other charges
76
21
2
56
155
Adjusted EBITDA
$
26,354
$
23,357
$
3,351
$
1,877
$
54,939
Adjusted EBITDA margin
7.6
%
53.3
%
13.7
%
7.1
%
12.4
%
Three Months Ended December
31, 2022
Adjusted EBITDA:
Projects
Energy Assets
O&M
Other
Consolidated
Net income attributable to common
shareholders
$
7,791
$
6,972
$
2,040
$
1,132
$
17,935
Impact from redeemable non-controlling
interests
90
618
—
—
708
Plus (less): Income tax provision
(benefit)
538
(5,131
)
573
294
(3,726
)
Plus: Other expenses, net
2,402
4,563
173
259
7,397
Plus: Depreciation and amortization
710
12,568
247
323
13,848
Plus: Stock-based compensation
3,137
496
274
302
4,209
Plus: Restructuring and other charges
859
26
2
13
900
Adjusted EBITDA
$
15,527
$
20,112
$
3,309
$
2,323
$
41,271
Adjusted EBITDA margin
6.3
%
51.5
%
15.3
%
9.7
%
12.4
%
Year Ended December 31,
2023
Adjusted EBITDA:
Projects
Energy Assets
O&M
Other
Consolidated
Net income attributable to common
shareholders
$
39,263
$
12,992
$
7,965
$
2,250
$
62,470
Impact from redeemable non-controlling
interests
—
570
—
—
570
(Less) plus: Income tax (benefit)
provision
(15,717
)
(10,642
)
345
379
(25,635
)
Plus: Other expenses, net
14,257
27,701
669
1,322
43,949
Plus: Depreciation and amortization
4,103
58,455
1,218
2,135
65,911
Plus: Stock-based compensation
7,516
1,343
694
765
10,318
Plus: Asset impairment charges
2,222
1,609
—
—
3,831
Plus: Restructuring and other charges
1,223
69
17
267
1,576
Adjusted EBITDA
$
52,867
$
92,097
$
10,908
$
7,118
$
162,990
Adjusted EBITDA margin
5.3
%
51.5
%
11.8
%
7.0
%
11.9
%
Year Ended December 31,
2022
Adjusted EBITDA:
Projects
Energy Assets
O&M
Other
Consolidated
Net income attributable to common
shareholders
$
49,646
$
32,555
$
8,765
$
3,960
$
94,926
Impact from redeemable non-controlling
interests
90
3,533
—
—
3,623
Plus (less): Income tax provision
(benefit)
15,853
(13,168
)
2,798
1,687
7,170
Plus: Other expenses, net
10,592
15,499
528
654
27,273
Plus: Depreciation and amortization
3,029
48,589
1,160
1,500
54,278
Plus: Stock-based compensation
12,073
1,398
740
835
15,046
Plus: Restructuring and other charges
2,102
5
16
73
2,196
Adjusted EBITDA
$
93,385
$
88,411
$
14,007
$
8,709
$
204,512
Adjusted EBITDA margin
6.3
%
54.5
%
16.5
%
9.1
%
11.2
%
Three Months Ended December
31,
Year Ended December
31,
2023
2022
2023
2022
Non-GAAP net income and EPS:
Net income attributable to common
shareholders
$
33,735
$
17,935
$
62,470
$
94,926
Adjustment for accretion of tax equity
financing fees
(27
)
(27
)
(108
)
(116
)
Impact from redeemable non-controlling
interests
(299
)
708
570
3,623
Plus: Goodwill impairment
2,222
—
2,222
—
Plus: Energy asset impairment
1,609
—
1,609
—
Plus: Contingent consideration,
restructuring and other charges
155
900
1,576
2,196
Income tax effect of Non-GAAP
adjustments
(649
)
(645
)
(1,018
)
(983
)
Non-GAAP net income
$
36,746
$
18,871
$
67,321
$
99,646
Diluted net income per common share
$
0.64
$
0.34
$
1.17
$
1.78
Effect of adjustments to net income
0.05
0.01
0.09
0.09
Non-GAAP EPS
$
0.69
$
0.35
$
1.26
$
1.87
Adjusted cash from operations:
Cash flows from operating activities
$
(29,570
)
$
(55,952
)
$
(69,991
)
$
(338,288
)
Plus: proceeds from Federal ESPC
projects
47,035
45,031
154,338
238,360
Adjusted cash from operations
$
17,465
$
(10,921
)
$
84,347
$
(99,928
)
Other Financial Measures (In thousands)
(Unaudited)
Three Months Ended December
31,
Year Ended December
31,
2023
2022
2023
2022
New contracts and awards:
New contracts
$
477,280
$
315,250
$
1,276,660
$
973,050
New awards (1)
$
519,600
$
260,400
$
2,193,225
$
1,068,940
(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,
2024
Low
High
Operating income (1)
$113 million
$141 million
Depreciation and amortization
$85 million
$86 million
Stock-based compensation
$14 million
$15 million
Restructuring and other charges
$(2) million
$(2) million
Adjusted EBITDA
$210 million
$240 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, goodwill
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, goodwill 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/20240228345795/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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