Ameresco, Inc. (NYSE:AMRC), a leading energy efficiency and renewable
energy company, today announced that it is postponing the release of its
financial results for the fourth quarter and full year 2012, as well as
its related conference call, because it is evaluating the designation of
an interest rate swap used in its hedging strategy to manage interest
rate risk.
The Company maintains a portfolio of eight interest rate swaps used to
hedge exposure to adverse changes in short-term market rates related
primarily to renewable energy project financings. Each of the interest
rate swaps has been designated as a fair value hedge using hedge
accounting under ASC 815-20-25. Seven of the interest rate swaps have
been designated as hedges using the “long-haul” method; one was entered
into and designated as a hedge in March 2010 using the “short cut”
method. Based on a review of its swaps conducted in connection with
entering into new swaps in the fourth quarter of 2012, the Company has
retrospectively determined that designation of this particular interest
rate swap using the “short cut” method was not appropriate.
Under ASC 815-20-25, for interest rate swaps designated as hedges using
either of the “short cut” or “long-haul” methods, the fair value of the
swap is recorded in the consolidated balance sheet and any changes in
fair value of the swap are recorded as adjustments to other
comprehensive income (loss). The analysis underlying the determination
to rely upon the “short-cut” method is complex and subject to
interpretation. If an interest rate swap designated using the “short
cut” is retrospectively determined not to have qualified for that
method, then hedge accounting treatment for prior periods is not
appropriate. In that event, any changes in fair value would be recorded,
as a non-cash item, in other income (expense) in the consolidated
statements of income for any periods during which the swap does not
qualify as a hedge.
The Company is conducting, but has not completed, an analysis of the
materiality of the change in accounting treatment for the interest rate
swap entered into in March 2010 for its 2010, 2011 and 2012 financial
results and whether any prior period adjustments would be necessary. It
also has not completed its analysis of whether any prior period
adjustments, if necessary, would require filing amended periodic reports
with the Securities and Exchange Commission.
As a result of its retrospective determination that the interest rate
swap did not qualify for the “short-cut” method, the Company expects it
will redesignate the swap using the “long-haul” method in the first
quarter of 2013. In that case, the swap would be subject to periodic
effectiveness testing and qualify, prospectively, for hedge accounting
treatment.
Once the Company has completed its analyses, it expects to announce the
date that it will release fourth quarter and full year 2012 financial
results and host an earnings conference call.
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
facilities throughout North America. Ameresco’s 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 provides local expertise through its 63 offices in 34 states
and five Canadian provinces. Ameresco has more than 900 employees. 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 the ongoing
evaluation of Ameresco’s current and historical accounting treatment of
interest rate swaps and the outcome and timing of such evaluation, as
well as 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 impact of the
announced postponement in Ameresco’s earnings release and the material
weakness in Ameresco’s internal control, as well other factors discussed
in Ameresco’s Annual Report on Form 10-K for the year ended December 31,
2011, filed with the U.S. Securities and Exchange Commission on March
15, 2012 and in its quarterly reports on Form 10-Q. In addition, the
forward-looking statements included in this press release represent
Ameresco’s views as of the date of this press release. Ameresco
anticipates that subsequent events and developments will cause its views
to change. However, while Ameresco may elect to update these
forward-looking statements at some point in the future, it specifically
disclaims any obligation to do so. These forward-looking statements
should not be relied upon as representing Ameresco’s views as of any
date subsequent to the date of this press release.
![](http://cts.businesswire.com/ct/CT?id=bwnews&sty=20130228006604r1&sid=ntxv4&distro=nx)