Ameresco Reports Third Quarter 2015 Financial Results
-
Revenues of $189.1 million, an increase of 12%
-
Gross margin of 19.2%
-
Operating income up 5%
-
Adjusted EBITDA of $16.1 million, up 1%
-
New awards of $208 million, up 33%
Ameresco, Inc. (NYSE:AMRC), a leading energy
efficiency and renewable
energy company, today announced financial results for the fiscal
quarter ended September 30, 2015. The Company has also furnished
prepared remarks in conjunction with this press release in a Current
Report on Form 8-K. The prepared remarks contain supplemental
information, including non-GAAP financial metrics, and have been posted
to the “Investor Relations” section of the Company’s website at www.ameresco.com.
“Our results reflect both strength in our core project business, and
solid contributions from our higher margin recurring revenue streams,”
said George P. Sakellaris, President and Chief Executive Officer of
Ameresco. “Our Federal revenue grew 29%, U.S. Regions grew 33%, and both
groups delivered solid profitability. We also improved our visibility on
future growth. New awards were up 33% to $208 million.”
Sakellaris continued, “This accelerating rate of growth is being driven
in part by larger project wins. During the quarter, we were awarded a
housing-related project that is one of Ameresco’s largest awards in our
corporate history. Our sales pipeline is quite robust, which leaves us
optimistic that our growth can continue in 2016.”
Third Quarter 2015 Results
Note: All figures refer to the third quarter of 2015 period unless
stated otherwise. All comparisons are to the third quarter of 2014,
unless stated otherwise.
Revenues were $189.1 million, an increase of 12%. The Company continued
to execute in its core project business, with revenue growth of 21% to
$138.8 million. That growth was driven by solid performance in the U.S.
Federal and U.S. Regions segments, which were up 29% and 33%,
respectively. These increases were partially offset by the decreases in
revenues from our Canadian and Integrated PV business units of 41% and
27%, respectively.
Operating income was $9.7 million, an increase of 5%. Net income was
$4.2 million, a decline of $3.1 million. Net earnings per diluted share
were $0.09, compared to $0.16 in the prior-year period. Prior year
earnings included a tax benefit of $0.5 million or a tax rate of (8%),
compared with 44% for the current quarter.
Adjusted EBITDA, a non-GAAP financial measure, was $16.1 million, up
slightly compared to last year. Adjusted cash from operations, a
non-GAAP financial measure, was $24.6 million versus $1 million in the
prior year.
Ameresco secured $208 million in new project awards in the quarter, a
33% increase. Total backlog increased 3% to over $1.4 billion.
Contracted backlog decreased 5% during the quarter to $379.3 million due
to the 21% increase in project revenues which continues to reflect the
strong execution by Ameresco’s implementation teams.
Assets in development were up 68% compared with prior year and up 22%
sequentially from prior quarter to $185.2 million.
FY 2015 Guidance
Based on year to date performance and expectations for the fourth
quarter of 2015, Ameresco is narrowing its guidance for fiscal year
2015. The guidance reflects anticipated results before restructuring,
asset impairment and other one-time charges the Company expects to incur
in the fourth quarter.
Ameresco expects to generate revenue in the range of $625 million to
$640 million, adjusted EBITDA in the range of $43 million to $46 million
and net income per diluted share to be in the range of $0.16 to $0.20.
The guidance assumptions for the fourth quarter of 2015 are as follows:
-
Gross margin of approximately 19%;
-
An effective income tax rate of 25%, which further assumes certain tax
legislation is passed by the end of the year; and
-
Weighted average common shares outstanding of 47 million.
In the fourth quarter, the Company expects to incur both cash and
non-cash charges in conjunction with the certain restructuring
activities. The Company has not completed all of the restructuring
activity, and cannot yet disclose a firm estimate of the likely charges.
However, the Company does expect to incur employee termination costs of
$1 million to $1.5 million, which would reduce net income per diluted
share to $0.14 to $0.17.
Third Quarter 2015 Results Conference Call and Webcast
The Company will host a conference call today at 8:30 a.m. ET today to
discuss results. Participants may access the earnings conference call by
dialing +1 (877) 359-9508 or internationally +1 (224) 357-2393. The
passcode is 47644018. Participants are advised to dial into the call at
least ten minutes prior to register. A live, listen-only webcast of the
conference call will also be available over the Internet. Individuals
wishing to listen can access the call through the “Investor Relations”
section of the Company’s website at www.ameresco.com.
An archived webcast will be available on the Company’s website for one
year.
In conjunction with the conference call, the Company will provide
management’s prepared remarks in the “Investor Relations” section of the
Company's website, as well as in a Current Report on Form 8-K filed with
the SEC.
Use of Non-GAAP Financial Measures
This press release and the accompanying tables include references to
adjusted EBITDA and adjusted cash from operations, which are non-GAAP
financial measures. For a description of these non-GAAP financial
measures, including the reasons management uses these measures, please
see the section following the accompanying tables titled “Exhibit A:
Non-GAAP Financial Measures”. For a reconciliation of these non-GAAP
financial measures to the most directly comparable financial measures
prepared in accordance with GAAP, please see Other Non-GAAP Disclosures
and Non-GAAP Financial Guidance in the accompanying tables.
About Ameresco, Inc.
Founded in 2000, Ameresco, Inc. (NYSE:AMRC) is a leading independent
provider of comprehensive services, energy efficiency, infrastructure
upgrades, asset sustainability and renewable energy solutions for
businesses and organizations throughout North America and Europe.
Ameresco’s sustainability services include upgrades to a facility’s
energy infrastructure and the development, construction and operation of
renewable energy plants. Ameresco has successfully completed energy
saving, environmentally responsible projects with Federal, state and
local governments, healthcare and educational institutions, housing
authorities, and commercial and industrial customers. With its corporate
headquarters in Framingham, MA, Ameresco has more than 1,000 employees
providing local expertise in the United States, Canada, and the United
Kingdom. For more information, visit www.ameresco.com.
Safe Harbor Statement
Any statements in this press release about future expectations, plans
and prospects for Ameresco, Inc., including statements about market
conditions, pipeline and backlog, as well as estimated future revenues
and net income, and other statements containing the words “projects,”
“believes,” “anticipates,” “plans,” “expects,” “will” and similar
expressions, constitute forward-looking statements within the meaning of
The Private Securities Litigation Reform Act of 1995. Actual results may
differ materially from those indicated by such forward-looking
statements as a result of various important factors, including the
timing of, and ability to, enter into contracts for awarded projects on
the terms proposed; the timing of work we do on projects where we
recognize revenue on a percentage of completion basis, including the
ability to perform under recently signed contracts without unusual
delay; our ability to place solar assets into service as planned; demand
for our energy efficiency and renewable energy solutions; our ability to
arrange financing for our projects; changes in federal, state and local
government policies and programs related to energy efficiency and
renewable energy; the ability of customers to cancel or defer contracts
included in our backlog; the effects of our recent acquisitions;
seasonality in construction and in demand for our products and services;
a customer’s decision to delay our work on, or other risks involved
with, a particular project; availability and costs of labor and
equipment; the addition of new customers or the loss of existing
customers; and other factors discussed in our Annual Report on Form 10-K
for the year ended December 31, 2014, filed with the U.S. Securities and
Exchange Commission on March 6, 2015. In addition, the forward-looking
statements included in this press release represent our views as of the
date of this press release. We anticipate that subsequent events and
developments will cause our views to change. However, while we may elect
to update these forward-looking statements at some point in the future,
we specifically disclaim any obligation to do so. These forward-looking
statements should not be relied upon as representing our views as of any
date subsequent to the date of this press release.
AMERESCO, INC.
|
CONSOLIDATED BALANCE SHEETS
|
(in thousands, except share and per share amounts)
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
2015
|
|
|
2014
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
21,256
|
|
|
|
$
|
23,762
|
|
Restricted cash
|
|
15,306
|
|
|
|
12,818
|
|
Accounts receivable, net
|
|
75,649
|
|
|
|
71,661
|
|
Accounts receivable retainage
|
|
20,407
|
|
|
|
15,968
|
|
Costs and estimated earnings in excess of billings
|
|
76,650
|
|
|
|
66,325
|
|
Inventory, net
|
|
12,214
|
|
|
|
8,896
|
|
Prepaid expenses and other current assets
|
|
12,939
|
|
|
|
8,666
|
|
Income tax receivable
|
|
—
|
|
|
|
3,525
|
|
Deferred income taxes
|
|
6,069
|
|
|
|
5,440
|
|
Project development costs
|
|
15,781
|
|
|
|
9,674
|
|
Total current assets
|
|
256,271
|
|
|
|
226,735
|
|
Federal ESPC receivable
|
|
103,589
|
|
|
|
79,167
|
|
Property and equipment, net
|
|
5,947
|
|
|
|
7,372
|
|
Project assets, net
|
|
239,119
|
|
|
|
217,772
|
|
Deferred financing fees, net
|
|
5,323
|
|
|
|
4,313
|
|
Goodwill
|
|
59,371
|
|
|
|
60,479
|
|
Intangible assets, net
|
|
7,983
|
|
|
|
11,238
|
|
Other assets
|
|
17,178
|
|
|
|
22,583
|
|
Total assets
|
|
$
|
694,781
|
|
|
|
$
|
629,659
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
Current liabilities:
|
|
|
|
|
|
Current portion of long-term debt and capital lease liabilities
|
|
$
|
12,391
|
|
|
|
$
|
12,255
|
|
Accounts payable
|
|
112,384
|
|
|
|
87,787
|
|
Accrued expenses and other current liabilities
|
|
31,785
|
|
|
|
26,944
|
|
Billings in excess of cost and estimated earnings
|
|
25,492
|
|
|
|
18,291
|
|
Income taxes payable
|
|
920
|
|
|
|
812
|
|
Total current liabilities
|
|
182,972
|
|
|
|
146,089
|
|
Long-term debt and capital lease liabilities, less current portion
|
|
83,240
|
|
|
|
90,037
|
|
Federal ESPC liabilities
|
|
106,401
|
|
|
|
70,875
|
|
Deferred income taxes
|
|
4,524
|
|
|
|
7,210
|
|
Deferred grant income
|
|
8,429
|
|
|
|
8,842
|
|
Other liabilities
|
|
21,981
|
|
|
|
20,300
|
|
Stockholders’ equity:
|
|
|
|
|
|
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, no
shares issued and outstanding at September 30, 2015 and December 31,
2014
|
|
—
|
|
|
|
—
|
|
Class A common stock, $0.0001 par value, 500,000,000 shares
authorized, 28,517,892 shares issued and outstanding at September
30, 2015, 28,351,792 shares issued and outstanding at December 31,
2014
|
|
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, 2015 and December 31, 2014
|
|
2
|
|
|
|
2
|
|
Additional paid-in capital
|
|
109,417
|
|
|
|
107,445
|
|
Retained earnings
|
|
183,458
|
|
|
|
181,477
|
|
Accumulated other comprehensive loss, net
|
|
(5,646
|
)
|
|
|
(2,620
|
)
|
Non-controlling interest
|
|
—
|
|
|
|
(1
|
)
|
Total stockholders’ equity
|
|
287,234
|
|
|
|
286,306
|
|
Total liabilities and stockholders’ equity
|
|
$
|
694,781
|
|
|
|
$
|
629,659
|
|
AMERESCO, INC.
|
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
|
(in thousands, except share and per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
Revenues
|
|
$
|
189,142
|
|
|
$
|
168,891
|
|
|
|
$
|
457,064
|
|
|
$
|
412,180
|
|
Cost of revenues
|
|
152,849
|
|
|
133,867
|
|
|
|
370,232
|
|
|
331,666
|
|
Gross profit
|
|
36,293
|
|
|
35,024
|
|
|
|
86,832
|
|
|
80,514
|
|
Selling, general and administrative expenses
|
|
26,623
|
|
|
25,800
|
|
|
|
76,506
|
|
|
74,293
|
|
Operating income
|
|
9,670
|
|
|
9,224
|
|
|
|
10,326
|
|
|
6,221
|
|
Other expenses, net
|
|
2,149
|
|
|
2,465
|
|
|
|
6,158
|
|
|
4,993
|
|
Income before provision (benefit) from income taxes
|
|
7,521
|
|
|
6,759
|
|
|
|
4,168
|
|
|
1,228
|
|
Income tax provision (benefit)
|
|
3,343
|
|
|
(532
|
)
|
|
|
2,187
|
|
|
(501
|
)
|
Net income
|
|
$
|
4,178
|
|
|
$
|
7,291
|
|
|
|
$
|
1,981
|
|
|
$
|
1,729
|
|
Net income per share attributable to common shareholders:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.09
|
|
|
$
|
0.16
|
|
|
|
$
|
0.04
|
|
|
$
|
0.04
|
|
Diluted
|
|
$
|
0.09
|
|
|
$
|
0.16
|
|
|
|
$
|
0.04
|
|
|
$
|
0.04
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
46,517,638
|
|
|
46,315,968
|
|
|
|
46,473,375
|
|
|
46,098,158
|
|
Diluted
|
|
47,672,944
|
|
|
46,987,522
|
|
|
|
47,243,793
|
|
|
46,636,529
|
|
AMERESCO, INC.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in thousands)
|
(Unaudited)
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
2015
|
|
|
2014
|
Cash flows from operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
1,981
|
|
|
|
$
|
1,729
|
|
Adjustments to reconcile net loss to cash flows from operating
activities:
|
|
|
|
|
|
Depreciation of project assets
|
|
12,115
|
|
|
|
11,162
|
|
Depreciation of property and equipment
|
|
2,349
|
|
|
|
2,495
|
|
Amortization of deferred financing fees
|
|
850
|
|
|
|
1,086
|
|
Amortization of intangible assets
|
|
3,041
|
|
|
|
3,266
|
|
Provision for bad debts
|
|
239
|
|
|
|
1,253
|
|
Unrealized gain on interest rate swaps
|
|
(277
|
)
|
|
|
(983
|
)
|
Stock-based compensation expense
|
|
1,367
|
|
|
|
2,108
|
|
Deferred income taxes
|
|
(2,920
|
)
|
|
|
3,343
|
|
Excess tax benefits from stock-based compensation arrangements
|
|
—
|
|
|
|
(2,496
|
)
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Restricted cash
|
|
(2,216
|
)
|
|
|
(182
|
)
|
Accounts receivable
|
|
(5,258
|
)
|
|
|
(11,282
|
)
|
Accounts receivable retainage
|
|
(1,501
|
)
|
|
|
6,392
|
|
Federal ESPC receivable
|
|
(50,555
|
)
|
|
|
(33,388
|
)
|
Inventory
|
|
(3,347
|
)
|
|
|
1,172
|
|
Costs and estimated earnings in excess of billings
|
|
(10,792
|
)
|
|
|
17,768
|
|
Prepaid expenses and other current assets
|
|
(4,039
|
)
|
|
|
1,266
|
|
Project development costs
|
|
(4,999
|
)
|
|
|
(812
|
)
|
Other assets
|
|
(2,807
|
)
|
|
|
(3,676
|
)
|
Accounts payable, accrued expenses and other current liabilities
|
|
22,396
|
|
|
|
(3,754
|
)
|
Billings in excess of cost and estimated earnings
|
|
7,329
|
|
|
|
1,403
|
|
Other liabilities
|
|
(573
|
)
|
|
|
(5,815
|
)
|
Income taxes payable
|
|
3,674
|
|
|
|
(4,148
|
)
|
Cash flows from operating activities
|
|
(33,943
|
)
|
|
|
(12,093
|
)
|
Cash flows from investing activities:
|
|
|
|
|
|
Purchases of property and equipment
|
|
(1,040
|
)
|
|
|
(1,553
|
)
|
Purchases of project assets
|
|
(29,932
|
)
|
|
|
(16,530
|
)
|
Grant awards received on project assets
|
|
—
|
|
|
|
3,727
|
|
Proceeds from sale of assets
|
|
852
|
|
|
|
—
|
|
Acquisitions, net of cash received
|
|
—
|
|
|
|
(13,903
|
)
|
Cash flows from investing activities
|
|
(30,120
|
)
|
|
|
(28,259
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
Excess tax benefits from stock-based compensation arrangements
|
|
—
|
|
|
|
2,496
|
|
Payments of financing fees
|
|
(1,894
|
)
|
|
|
(368
|
)
|
Proceeds from exercises of options
|
|
611
|
|
|
|
1,435
|
|
(Payments) proceeds from senior secured credit facility
|
|
(5,000
|
)
|
|
|
20,000
|
|
Proceeds from long-term debt financing
|
|
4,584
|
|
|
|
—
|
|
Proceeds from Federal ESPC projects
|
|
61,846
|
|
|
|
32,886
|
|
Proceeds from sale-leaseback financing
|
|
7,581
|
|
|
|
—
|
|
Non-controlling interest
|
|
(116
|
)
|
|
|
(7
|
)
|
Restricted cash
|
|
(74
|
)
|
|
|
2,758
|
|
Payments on long-term debt
|
|
(9,051
|
)
|
|
|
(13,881
|
)
|
Cash flows from financing activities
|
|
58,487
|
|
|
|
45,319
|
|
Effect of exchange rate changes on cash
|
|
3,070
|
|
|
|
1,348
|
|
Net (decrease) increase in cash and cash equivalents
|
|
(2,506
|
)
|
|
|
6,315
|
|
Cash and cash equivalents, beginning of period
|
|
23,762
|
|
|
|
17,171
|
|
Cash and cash equivalents, end of period
|
|
$
|
21,256
|
|
|
|
$
|
23,486
|
|
Non-GAAP Financial Measures (in thousands) (Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
9,670
|
|
|
$
|
9,224
|
|
|
$
|
10,326
|
|
|
$
|
6,221
|
|
Depreciation and amortization of intangible assets
|
|
6,010
|
|
|
5,938
|
|
|
17,505
|
|
|
16,923
|
|
Stock-based compensation
|
|
396
|
|
|
683
|
|
|
1,367
|
|
|
2,108
|
|
Adjusted EBITDA
|
|
$
|
16,076
|
|
|
$
|
15,845
|
|
|
$
|
29,198
|
|
|
$
|
25,252
|
|
Adjusted EBITDA margin
|
|
8.5
|
%
|
|
9.4
|
%
|
|
6.4
|
%
|
|
6.1
|
%
|
Adjusted cash from operations:
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
$
|
3,652
|
|
|
$
|
(18,027
|
)
|
|
$
|
(33,943
|
)
|
|
$
|
(12,093
|
)
|
Plus: proceeds from Federal ESPC projects
|
|
20,976
|
|
|
18,910
|
|
|
61,846
|
|
|
32,886
|
|
Adjusted cash from operations
|
|
$
|
24,628
|
|
|
$
|
883
|
|
|
$
|
27,903
|
|
|
$
|
20,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
|
|
|
|
2015
|
|
2014
|
Project backlog:
|
|
|
|
|
|
|
|
|
Awarded(1)
|
|
|
|
|
|
$
|
1,032,600
|
|
|
$
|
964,800
|
|
Fully-contracted
|
|
|
|
|
|
379,300
|
|
|
400,600
|
|
Total project backlog
|
|
|
|
|
|
$
|
1,411,900
|
|
|
$
|
1,365,400
|
|
Assets in development
|
|
|
|
|
|
$
|
185,200
|
|
|
$
|
110,500
|
|
(1) Represents estimated future revenues from projects that have been
awarded, though the contracts have not yet been signed.
Non-GAAP Financial Guidance
|
|
(in thousands)
|
Year Ended December 31, 2015
|
|
|
|
Low
|
High
|
Operating income
|
|
|
$
|
17,700
|
|
$
|
20,700
|
|
Depreciation and amortization of intangible assets
|
|
|
23,300
|
|
23,300
|
|
Stock-based compensation
|
|
|
2,000
|
|
2,000
|
|
Adjusted EBITDA
|
|
|
$
|
43,000
|
|
$
|
46,000
|
|
Adjusted EBITDA margin
|
|
|
6.9
|
%
|
7.2
|
%
|
Exhibit A: Non-GAAP Financial Measures
We use the non-GAAP financial measures defined and discussed below to
provide investors and others with useful supplemental information to our
financial results prepared in accordance with GAAP. These non-GAAP
financial measures should not be considered as an alternative to any
measure of financial performance calculated and presented in accordance
with GAAP. For a reconciliation of these non-GAAP measures to the most
directly comparable financial measures prepared in accordance with GAAP,
please see Other Non-GAAP Disclosure and Non-GAAP Financial Guidance in
the tables above.
We understand that, although measures similar to these non-GAAP
financial measures are frequently used by investors and securities
analysts in their evaluation of companies, they have limitations as
analytical tools, and investors should not consider them in isolation or
as a substitute for the most directly comparable GAAP financial measures
or an analysis of our results of operations as reported under GAAP. To
properly and prudently evaluate our business, we encourage investors to
review our GAAP financial statements included above, and not to rely on
any single financial measure to evaluate our business.
Adjusted EBITDA
We define adjusted EBITDA as operating income before depreciation,
amortization of intangible assets, impairment of goodwill and
stock-based compensation expense. 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, goodwill
impairment and stock-based compensation expense.
Our management uses adjusted EBITDA: as a measure of operating
performance, because it does 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.
Adjusted Cash From Operations
We define adjusted cash from operations as cash flows from operating
activities plus proceeds from Federal ESPC projects. Cash received in
payment of Federal ESPC projects is treated as a financing cash flow
under GAAP due to the unusual financing structure for these projects.
These cash flows, however, correspond to the revenue generated by these
projects. Thus we believe that adjusting operating cash flow to include
the cash generated by our Federal ESPC projects provides investors with
a useful measure for evaluating the cash generating ability of our core
operating business. Our management uses adjusted cash from operations as
a measure of liquidity because it captures all sources of cash
associated with our revenue generated by operations.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151105005297/en/ Copyright Business Wire 2015
Source: Business Wire
(November 5, 2015 - 6:00 AM EST)
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