Solid Execution with Growth Across All
Business Lines
45% Y/Y Growth in Contracted Backlog
Over 750 MWe Ameresco Owned Energy Assets in
Development
Reaffirms 2024 Guidance
First Quarter 2024 Financial Highlights:
- Revenues of $298.4 million
- Net loss attributable to common shareholders of $2.9
million
- GAAP EPS of ($0.06)
- Non-GAAP EPS of ($0.10)
- Adjusted EBITDA of $30.8 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 March 31,
2024. 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, “Ameresco’s strong execution
during the first quarter demonstrates the early results of the
actions we have taken to optimize our organization and platform to
capture the significant growth opportunities ahead of us. Our new
corporate structure has brought greater uniformity and scalability
across our geographies and enabled faster and better project
conversion and execution, which helped to drive stronger than
expected revenues in the first quarter. We are also seeing the
early results from our strategic focus on better win rates and
improved margins in our core Federal and MUSH markets.
“While compressing execution timelines remains a priority, we
continued to further build our substantial long-term visibility,
achieving record levels of Project Backlog and Assets in
Development and Construction in the first quarter. Our total
Project Backlog exceeded $4 billion at the end of the quarter, an
increase of 35% or over $1 billion from one year ago. Our success
in converting awards to contracts drove a 45% increase in our
contracted backlog. The Energy Asset business continued to add high
return assets to our development pipeline, ending the quarter with
a record 762 MWe, while also bringing 13 MWe into operation during
the quarter. These metrics, along with our strong and growing
O&M backlog, give the Company significant profitable revenue
visibility for years to come.”
First Quarter Financial Results
(All financial result comparisons made are against the prior
year period unless otherwise noted.)
(in millions)
Q1 2024
Q1 2023
Revenue
Net Income (Loss) (1)
Adj. EBITDA
Revenue
Net Income (Loss) (1)
Adj. EBITDA
Projects
$204.3
($6.0)
$3.2
$183.2
($1.3)
$4.0
Energy Assets
$43.2
($0.5)
$21.2
$40.8
$1.1
$19.9
O&M
$25.3
$3.7
$4.8
$22.3
$0.5
$1.5
Other
$25.6
($0.1)
$1.6
$24.8
$0.7
$1.9
Total (2)
$298.4
($2.9)
$30.8
$271.0
$1.1
$27.4
(1) Net Income (Loss) represents net
income (loss) attributable to common shareholders.
(2) Numbers in table may not sum due to
rounding.
Total revenue increased 10.1% to $298.4 million led by 11.5%
growth in Projects revenue, as faster implementation and contract
conversions allowed for continued execution on our growing
contracted backlog. Energy Asset revenue grew 5.9% driven by growth
in operating assets placed in service, improved production and
stronger RIN prices. O&M revenue increased 13.8% reflecting
timing of long-term O&M contracts. Other revenue increased 3.2%
primarily due to strength in our consulting business. Gross margin
of 15.7% was lower than expected as higher than normal project cost
adjustments during the quarter outweighed higher margins in our
O&M business. SG&A decreased 4.2% due to higher labor
utilization which also resulted in lower project development costs.
Net loss attributable to common shareholders was $2.9 million
compared to net income of $1.1 million during the same period last
year driven by higher interest expenses, with GAAP and Non-GAAP EPS
of ($0.06) and ($0.10), respectively. Adjusted EBITDA of $30.8
million increased 12.6%.
Balance Sheet and Cash Flow Metrics
($ in millions)
March 31, 2024
Total Corporate Debt (1)
$268.1
Corporate Debt Leverage Ratio (2)
3.0x
Total Energy Asset Debt (3)
$1,282.7
Energy Asset Book Value (4)
$1,788.6
Energy Debt Advance Rate (5)
72%
Q1 Cash Flows from Operating
Activities
$20.8
Plus: Q1 Proceeds
from Federal ESPC Projects
$19.6
Equals: Q1 Adjusted Cash from
Operations
$40.4
8-quarter rolling average Cash Flows from
Operating Activities
($13.9)
Plus: 8-quarter rolling average Proceeds
from Federal ESPC Projects
$43.4
Equals: 8-quarter rolling average Adjusted
Cash from Operations
$29.5
(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 $77.7 million in cash. Our
total corporate debt including our term loans and drawn amounts on
our revolving line of credit continued to decline to $268.1
million, with a corporate leverage ratio as calculated under our
Sr. Secured Credit Facility of 3.0x, below our 3.5x bank covenant
level. Our Energy Asset Debt was $1.3 billion with an Energy Debt
Advance rate of 72% on the Energy Asset Book Value. Our Adjusted
Cash from Operations during the quarter was $40.4 million. Our
8-quarter rolling average Adjusted Cash from Operations was $29.5
million. We are providing this number given the volatility of
quarterly Adjusted Cash from Operations as it better represents our
average implementation cycle. The Company’s access to attractive
capital remained very strong during the quarter highlighted by
numerous draws from our existing financings as well as an
investment by Republic Services in the Roxana RNG plant.
($ in millions)
At March 31, 2024
Awarded Project Backlog (1)
$2,560
Contracted Project Backlog
$1,460
Total Project Backlog
$4,020
12-month Contracted Backlog (2)
$775
O&M Revenue Backlog
$1,199
12-month O&M Backlog
$88
Energy Asset Visibility (3)
$2,300
Operating Energy Assets
518 MWe
Ameresco's Net Assets in Development
(4)
756 MWe
(1) Customer contracts that have
not been signed yet
(2) 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
(3) 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.
(4) Net MWe capacity includes
only our share of any jointly owned assets
- Ameresco’s Assets in Development ended the quarter at 762 MWe.
After subtracting Ameresco’s partners’ minority interests,
Ameresco’s owned capacity of Assets in Development at quarter end
was 756 MWe.
- Ameresco increased net assets in development by 45 MWe in the
first quarter driven by increased solar and BESS activity.
- Ameresco continued to drive significant asset activity in the
state of Hawaii with the award of a 40 MWe biofuel-powered facility
in Maui. This marks Ameresco’s fourth asset award with Hawaiian
Electric, building on the success of Kūpono Solar, a 42 MWe AC
solar and 42MWe/168MWh battery storage facility on Oahu expected to
come online in Q2 2024, Pu`uloa Energy, a 99 MWe firm renewable
generation facility on Oahu expected to come online in 2027, and
Pu`uloa Solar, a 6MWe solar and 6MWe/30MWh battery storage facility
on Oahu expected to come online in 2026.
- During the quarter Ameresco began operations of the 5.2 MWe RNG
plant at Republic Services’ Brickyard Landfill.
- The education market continued to show significant activity
driven by the numerous available state and federal grants and
incentives to provide comprehensive solutions including energy
efficiency, renewable energy and energy storage technologies.
Summary and Outlook
“Our robust first quarter results represented a strong start to
the year supporting our expectations for substantial growth in
2024. Demand for our solutions continues to be strong and broad
based across technologies and our diversified customer base.
Additionally, our strong projects backlog metrics, together with
our substantial asset portfolio and growing O&M backlog provide
Ameresco with multi-year visibility on profitable revenue growth,”
Mr. Sakellaris concluded.
Ameresco reaffirms its full year 2024 guidance which is included
in the table below and reflects an expected revenue and Adjusted
EBITDA growth of 20% and 38%, respectively, at the midpoints. 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.
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 have completed performance testing and are working closely
with Southern California Edison Company on the final checklist for
substantial completion for two of the three projects. Commissioning
activities have begun on 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 first quarter 2024 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 solutions that
help customers reduce costs, decarbonize to net zero, and build
energy resiliency while leveraging smart, connected technologies.
From implementing energy efficiency and infrastructure upgrades to
developing, constructing, and operating distributed energy
resources – we are a trusted sustainability partner. Ameresco has
successfully completed energy saving, environmentally responsible
projects with Federal, state and local governments, utilities,
healthcare and educational institutions, housing authorities, and
commercial and industrial customers. With its corporate
headquarters in Framingham, MA, Ameresco has more than 1,500
employees providing local expertise in North America 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.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except share
amounts)
March 31,
December 31,
2024
2023
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
77,681
$
79,271
Restricted cash
57,737
62,311
Accounts receivable, net
146,836
153,362
Accounts receivable retainage, net
32,158
33,826
Costs and estimated earnings in excess of
billings
652,428
636,163
Inventory, net
13,076
13,637
Prepaid expenses and other current
assets
118,813
123,391
Income tax receivable
4,836
5,775
Project development costs, net
22,907
20,735
Total current assets
1,126,472
1,128,471
Federal ESPC receivable
577,651
609,265
Property and equipment, net
17,170
17,395
Energy assets, net
1,788,569
1,689,424
Deferred income tax assets, net
25,677
26,411
Goodwill, net
75,311
75,587
Intangible assets, net
6,197
6,808
Operating lease assets
69,348
58,586
Restricted cash, non-current portion
12,553
12,094
Other assets
104,318
89,735
Total assets
$
3,803,266
$
3,713,776
LIABILITIES, REDEEMABLE NON-CONTROLLING
INTERESTS AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portions of long-term debt and
financing lease liabilities, net
$
539,201
$
322,247
Accounts payable
437,240
402,752
Accrued expenses and other current
liabilities
109,954
108,831
Current portions of operating lease
liabilities
14,220
13,569
Billings in excess of cost and estimated
earnings
61,267
52,903
Income taxes payable
398
1,169
Total current liabilities
1,162,280
901,471
Long-term debt and financing lease
liabilities, net of current portion, unamortized discount and debt
issuance costs
1,011,576
1,170,075
Federal ESPC liabilities
504,689
533,054
Deferred income tax liabilities, net
4,584
4,479
Deferred grant income
6,737
6,974
Long-term operating lease liabilities, net
of current portion
50,710
42,258
Other liabilities
88,619
82,714
Redeemable non-controlling interests,
net
$
43,908
$
46,865
Stockholders' equity:
Preferred stock, $0.0001 par value,
5,000,000 shares authorized, no shares issued and outstanding at
March 31, 2024 and December 31, 2023
—
—
Class A common stock, $0.0001 par value,
500,000,000 shares authorized, 36,421,956 shares issued and
34,320,161 shares outstanding at March 31, 2024, 36,378,990 shares
issued and 34,277,195 shares outstanding at December 31, 2023
3
3
Class B common stock, $0.0001 par value,
144,000,000 shares authorized, 18,000,000 shares issued and
outstanding at March 31, 2024 and December 31, 2023
2
2
Additional paid-in capital
327,367
320,892
Retained earnings
592,947
595,911
Accumulated other comprehensive loss,
net
(3,592
)
(3,045
)
Treasury stock, at cost, 2,101,795 shares
at March 31, 2024 and December 31, 2023
(11,788
)
(11,788
)
Stockholders' equity before
non-controlling interest
904,939
901,975
Non-controlling interests
25,224
23,911
Total stockholders’ equity
930,163
925,886
Total liabilities, redeemable
non-controlling interests and stockholders' equity
$
3,803,266
$
3,713,776
AMERESCO, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF (LOSS) INCOME
(In thousands, except per
share amounts) (Unaudited)
Three Months Ended March
31,
2024
2023
Revenues
$
298,406
$
271,042
Cost of revenues
251,413
221,094
Gross profit
46,993
49,948
Earnings from unconsolidated entities
555
450
Selling, general and administrative
expenses
39,555
41,301
Operating income
7,993
9,097
Other expenses, net
14,171
8,043
(Loss) income before income taxes
(6,178
)
1,054
Income tax provision (benefit)
—
(503
)
Net (loss) income
(6,178
)
1,557
Net loss (income) attributable to
non-controlling interests and redeemable non-controlling
interests
3,241
(455
)
Net (loss) income attributable to common
shareholders
$
(2,937
)
$
1,102
Net (loss) income per share attributable
to common shareholders:
Basic
$
(0.06
)
$
0.02
Diluted
$
(0.06
)
$
0.02
Weighted average common shares
outstanding:
Basic
52,289
51,963
Diluted
52,289
53,261
AMERESCO, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (in thousands) (Unaudited)
Three Months Ended March
31,
2024
2023
Cash flows from operating activities:
Net (loss) income
$
(6,178
)
$
1,557
Adjustments to reconcile net (loss) income
to net cash flows from operating activities:
Depreciation of energy assets, net
17,124
13,341
Depreciation of property and equipment
1,175
644
Increase in contingent consideration
—
121
Accretion of ARO liabilities
66
66
Amortization of debt discount and debt
issuance costs
982
790
Amortization of intangible assets
539
302
Provision for bad debts
1
93
Loss on write-off of long-lived assets
—
18
Non-cash project revenue related to
in-kind leases
(775
)
—
Earnings from unconsolidated entities
(555
)
(450
)
Net (gain) loss from derivatives
(2,359
)
163
Stock-based compensation expense
3,026
4,037
Deferred income taxes, net
687
(7,142
)
Unrealized foreign exchange loss
(gain)
806
(29
)
Changes in operating assets and
liabilities:
Accounts receivable
5,899
58,954
Accounts receivable retainage
1,580
2,439
Federal ESPC receivable
(26,395
)
(33,736
)
Inventory, net
561
608
Costs and estimated earnings in excess of
billings
(7,842
)
85,748
Prepaid expenses and other current
assets
104
929
Income taxes receivable, net
180
6,380
Project development costs
(1,728
)
(1,812
)
Other assets
(1,413
)
(1,903
)
Accounts payable, accrued expenses and
other current liabilities
23,849
(82,266
)
Billings in excess of cost and estimated
earnings
9,160
9,398
Other liabilities
2,323
522
Cash flows from operating activities
20,817
58,772
Cash flows from investing activities:
Purchases of property and equipment
(962
)
(1,657
)
Capital investment in energy assets
(105,633
)
(89,787
)
Capital investment in major maintenance of
energy assets
(5,355
)
(589
)
Net proceeds from equity method
investment
12,956
—
Contributions to equity method
investments
(4,776
)
—
Acquisitions, net of cash received
—
(9,182
)
Loans to joint venture investments
—
(38
)
Cash flows from investing activities
(103,770
)
(101,253
)
Cash flows from financing activities:
Payments of debt discount and debt
issuance costs
(590
)
(366
)
Proceeds from exercises of options and
ESPP
183
571
Proceeds from senior secured revolving
credit facility, net
20,100
—
Proceeds from long-term debt
financings
89,321
58,188
Proceeds from Federal ESPC projects
19,581
42,309
Net proceeds from energy asset receivable
financing arrangements
4,748
4,438
Contributions from non-controlling
interests
28,864
16,308
Distributions to non-controlling
interest
(63
)
—
Distributions to redeemable
non-controlling interests, net
(133
)
(161
)
Payment on seller's promissory note
(29,441
)
—
Payments on long-term debt and financing
leases
(55,196
)
(15,159
)
Cash flows from financing activities
77,374
106,128
Effect of exchange rate changes on
cash
(126
)
42
Net (decrease) increase in cash, cash
equivalents, and restricted cash
(5,705
)
63,689
Cash, cash equivalents, and restricted
cash, beginning of period
153,676
149,888
Cash, cash equivalents, and restricted
cash, end of period
$
147,971
$
213,577
Non-GAAP Financial Measures (Unaudited, in thousands)
Three Months Ended March 31,
2024
Adjusted EBITDA:
Projects
Energy Assets
O&M
Other
Consolidated
Net income (loss) attributable to common
shareholders
$
(5,965
)
$
(496
)
$
3,659
$
(135
)
$
(2,937
)
Impact from redeemable non-controlling
interests
—
(2,855
)
—
—
(2,855
)
Plus: Other expenses, net
5,656
7,246
545
724
14,171
Plus: Depreciation and amortization
995
16,847
322
674
18,838
Plus: Stock-based compensation
2,072
438
257
259
3,026
Plus: Contingent consideration,
restructuring and other charges
481
16
5
86
588
Adjusted EBITDA
$
3,239
$
21,196
$
4,788
$
1,608
$
30,831
Adjusted EBITDA margin
1.6
%
49.1
%
18.9
%
6.3
%
10.3
%
Three Months Ended March 31,
2023
Adjusted EBITDA:
Projects
Energy Assets
O&M
Other
Consolidated
Net income attributable to common
shareholders
$
(1,300
)
$
1,149
$
532
$
721
$
1,102
Impact from redeemable non-controlling
interests
—
32
—
—
32
Plus (less): Income tax provision
(benefit)
(884
)
72
127
182
(503
)
Plus: Other expenses, net
2,490
4,905
236
412
8,043
Plus: Depreciation and amortization
660
13,122
304
201
14,287
Plus: Stock-based compensation
2,729
607
332
369
4,037
Plus: Restructuring and other changes
337
20
7
7
371
Adjusted EBITDA
$
4,032
$
19,907
$
1,538
$
1,892
$
27,369
Adjusted EBITDA margin
2.2
%
48.8
%
6.9
%
7.6
%
10.1
%
Three Months Ended March
31,
2024
2023
Non-GAAP net (loss) income and
EPS:
Net (loss) income attributable to common
shareholders
$
(2,937
)
$
1,102
Adjustment for accretion of tax equity
financing fees
(27
)
(27
)
Impact from redeemable non-controlling
interests
(2,855
)
32
Plus: Contingent consideration,
restructuring and other charges
588
371
(Less) Plus: Income tax effect of Non-GAAP
adjustments
(153
)
(96
)
Non-GAAP net (loss) income
(5,384
)
1,382
Diluted net (loss) income per common
share
$
(0.06
)
$
0.02
Effect of adjustments to net (loss)
income
(0.04
)
0.01
Non-GAAP EPS
$
(0.10
)
$
0.03
Adjusted cash from operations:
Cash flows from operating activities
$
20,817
$
58,772
Plus: proceeds from Federal ESPC
projects
19,581
42,309
Adjusted cash from operations
$
40,398
$
101,081
Other Financial Measures (Unaudited, in thousands)
Three Months Ended March
31,
2024
2023
New contracts and awards:
New contracts
$
334,533
$
146,960
New awards (1)
$
339,798
$
472,100
(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,
restructuring and other charges, gain or loss on sale of equity
investment, and gain or loss upon deconsolidation of a variable
interest entity. We believe adjusted EBITDA is useful to investors
in evaluating our operating performance for the following reasons:
adjusted EBITDA and similar Non-GAAP measures are widely used by
investors to measure a company's operating performance without
regard to items that can vary substantially from company to company
depending upon financing and accounting methods, book values of
assets, capital structures and the methods by which assets were
acquired; securities analysts often use adjusted EBITDA and similar
Non-GAAP measures as supplemental measures to evaluate the overall
operating performance of companies; and by comparing our adjusted
EBITDA in different historical periods, investors can evaluate our
operating results without the additional variations of depreciation
and amortization expense, accretion of asset retirement
obligations, contingent consideration expense, stock-based
compensation expense, impact from redeemable non-controlling
interests, restructuring and asset impairment charges. We define
adjusted EBITDA margin as adjusted EBITDA stated as a percentage of
revenue.
Our management uses adjusted EBITDA and adjusted EBITDA margin
as measures of operating performance, because they do not include
the impact of items that we do not consider indicative of our core
operating performance; for planning purposes, including the
preparation of our annual operating budget; to allocate resources
to enhance the financial performance of the business; to evaluate
the effectiveness of our business strategies; and in communications
with the board of directors and investors concerning our financial
performance.
Non-GAAP Net Income and EPS
We define Non-GAAP net income and earnings per share (EPS) to
exclude certain discrete items that management does not consider
representative of our ongoing operations, including energy asset
impairment, restructuring and other charges, impact from redeemable
non-controlling interest, gain or loss on sale of equity
investment, and gain or loss upon deconsolidation of a variable
interest entity. We consider Non-GAAP net income and Non-GAAP EPS
to be important indicators of our operational strength and
performance of our business because they eliminate the effects of
events that are not part of the Company's core operations.
Adjusted Cash from Operations
We define adjusted cash from operations as cash flows from
operating activities plus proceeds from Federal ESPC projects. Cash
received in payment of Federal ESPC projects is treated as a
financing cash flow under GAAP due to the unusual financing
structure for these projects. These cash flows, however, correspond
to the revenue generated by these projects. Thus, we believe that
adjusting operating cash flow to include the cash generated by our
Federal ESPC projects provides investors with a useful measure for
evaluating the cash generating ability of our core operating
business. Our management uses adjusted cash from operations as a
measure of liquidity because it captures all sources of cash
associated with our revenue generated by operations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240507392519/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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