Ameresco Reports Second Quarter 2016 Financial Results

8/9/16

FRAMINGHAM, Mass.--(BUSINESS WIRE)--Ameresco, Inc. (NYSE:AMRC), a leading energy efficiency and renewable energy company, today announced financial results for the fiscal quarter ended June 30, 2016. 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.

Management Commentary

George P. Sakellaris, Chairman, President and Chief Executive Officer of Ameresco commented, "We started the year with a clear strategy to drive growth, and our performance this quarter demonstrates our ability to execute. Investment in project development drove outstanding backlog growth, both in our fastest growing segments such as U.S. Federal, and also in areas of the country in which we have been underrepresented historically. We added to our renewable energy portfolio by putting 5.2 MW into service and growing energy revenue over 8%. Finally, we progressed in resolving issues in the under-performing business units. In particular, we believe our Canadian operations are positioned to once again contribute to growth.”

Sakellaris continued, “Our execution against the growth strategy helped to further build momentum in our business. We had solid revenue growth and good profitability. More important was the acceleration we saw in business development activity. Awarded backlog was up 18%, and total backlog was up 16%. We had over $270 million of new awards, an amount that was 43% higher than the new awards we booked in the second quarter of 2015. The improving backlog visibility positions us for a strong 2017 and beyond.”

Financial Results

(All financial result comparisons made are against the prior year period unless otherwise noted.)

Second Quarter 2016

Revenues were $162.6 million, compared to $152.5 million, driven mainly by our Federal segment. Operating income was $4.7 million, compared to $5.1 million.

Net income was $2.0 million in both quarters, resulting in net income per diluted share of $0.04. Non-GAAP EPS was $0.08, compared to $0.04.

Adjusted EBITDA, a non-GAAP financial measure, was $13.2 million, compared to $11.5 million.

Additional Second Quarter 2016 Operating Highlights:

  • Project revenues were $113.6 million, an increase of 11%.
  • Revenues from other service offerings was slightly down at $49.0 million due to the anticipated decline in integrated-PV.
  • Cash flows from operating activities used $24.7 million, compared to $14.9 million, and adjusted cash from operations, a non-GAAP financial measure, was $(2.3) million, compared to $8.0 million both driven by strong construction activity in our Federal segment ahead of scheduled draws on our Federal ESPC agreements.
  • Total project backlog was $1,551.1 million as of June 30, 2016 and consisted of:
    • $435.1 million of fully-contracted backlog of signed customer contracts for installation or construction of projects, which we expect to convert into revenue over the next 12-24 months, on average; and
    • $1,116.0 million of awarded projects, representing projects in development for which we do not have signed contracts.
  • Assets in development were $157.0 million or 66 MWe. We placed 5.2 MW of solar assets into service during the quarter.

FY 2016 Guidance

Ameresco is reaffirming its full year 2016 outlook. The Company expects to earn total revenue in the range of $645 million to $680 million in 2016. The Company also expects adjusted EBITDA for 2016 to be in the range of $51 million to $57 million and net income per diluted share to be in the range of $0.25 to $0.30 for 2016. Our guidance assumptions for the remainder of 2016 are as follows: project revenues from contracted backlog of approximately $195 million; project revenues from awarded projects and proposals in the range of $55 million to $90 million; the remainder of revenues from all other service offerings; gross margin in the range of 19-20%; operating expenses as a percentage of revenue of 15.5-16.5%; an effective income tax rate of 25% using the midpoint of our guidance range; and weighted average common shares outstanding of 48 million. This guidance excludes the impact of any non-controlling interest activity and any additional charges relating to the SunEdison bankruptcy and our restructuring activities.

Share Repurchase Program

During the second quarter, the Company repurchased 417,698 shares of its Class A common stock for an average per share price of $4.63. The Company has approximately $8 million of remaining authorization under the share repurchase program it announced in May 2016.

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.