Ameresco, Inc. (NYSE:AMRC), a leading energy efficiency and renewable
energy company, today announced financial results for the first quarter
ended March 31, 2013. 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.
Total revenue for the first quarter of 2013 decreased to $110.1 million
from $146.6 million, or 25%, for the same period in 2012. First quarter
operating income decreased from $3.4 million for 2012 to an operating
loss of $2.1 million for 2013. First quarter adjusted EBITDA, a non-GAAP
financial measure, decreased from $9.1 million for 2012 to $4.3 million
for 2013. First quarter net income decreased from $1.7 million for 2012
to a net loss of $1.9 million for 2013. First quarter 2013 net loss per
diluted share was $0.04, compared to net income per diluted share of
$0.04 for 2012.
“We had anticipated a more challenging quarter than the typical first
quarter seasonality of our business. While revenue was below our
expectations, stronger than expected gross profit led to bottom line
results ahead of plan,” stated George P. Sakellaris, President and Chief
Executive Officer of Ameresco. “We remain encouraged by the continued
demand for our energy efficiency solutions as evidenced by an increase
in total construction backlog in the first quarter, driven by a 34%
year-over-year improvement in awarded projects. We are reaffirming our
2013 guidance based upon our current expectations for revenue growth and
profitability in the second half of the year.”
Additional First Quarter 2013 Operating Highlights:
-
Revenue generated from backlog was $65.4 million for the first quarter
of 2013, a decrease of 37% year-over-year.
-
All other revenue was $44.7 million for the first quarter of 2013, an
increase of 3% year-over-year.
-
Total construction backlog was $1.51 billion as of March 31, 2013 and
consisted of:
-
$343.8 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
-
$1,164.9 million of awarded projects, representing projects in
development for which we do not have signed contracts.
Historically, awarded projects have converted to signed contracts
over 6-12 months on average. However, we have been experiencing an
unusually sustained lengthening of conversion times of awarded
projects to signed contracts, a trend we expect to continue.
FY 2013 Guidance
Ameresco is reaffirming our guidance for the fiscal year ending December
31, 2013. We continue to expect to earn total revenue in the range of
$620 million to $670 million. We also expect net income for 2013 to be
in the range of $18 million to $22 million. Our 2013 guidance is based
upon the following assumptions: a challenging first half of 2013; that a
seasoned backlog along with a continued focus on converting awarded
projects to signed contracts begins to yield results later in the second
quarter; a more meaningful improvement in fully-contracted backlog in
the second half of 2013; modest to strong revenue growth within a few
regions; a gradual improvement in market conditions; 10% year-over-year
revenue growth from our all other offerings; and maintaining operating
expenses at the current run rate.
Webcast Reminder
Ameresco will hold its earnings conference call today, May 9, at 8:30
a.m. Eastern Time with President and Chief Executive Officer, George
Sakellaris, and Vice President and Chief Financial Officer, Andrew
Spence, to discuss details regarding the Company’s first quarter 2013
results, business outlook and strategy. Participants may access it by
dialing domestically 888.713.4214 or internationally 617.213.4866. The
passcode is 68829544. Participants are advised to dial into the call at
least ten minutes prior to the call 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.
If you are unable to listen to the live call, the webcast will be
archived on the Company’s website shortly after the call and be
available for one year.
Pre-Registration for the call is also available at: https://www.theconferencingservice.com/prereg/key.process?key=PTL74X3RY.
Pre-registrants will be issued a pin number to use when dialing into the
live call which will provide faster access to the conference by
bypassing the operator upon connection.
Use of Non-GAAP Financial Measures
This press release and the accompanying tables include references to
adjusted EBITDA, which is a non-GAAP financial measure. For a
description of this non-GAAP financial measure, including the reasons
management uses this measure, please see the section following the
accompanying tables titled “Exhibit A: Non-GAAP Financial Measures”. For
a reconciliation of adjusted EBITDA to operating income, the most
directly comparable financial measure prepared in accordance with GAAP,
please see Other Non-GAAP Disclosure in the accompanying tables.
Prior Period Financial Results
Certain prior period financial information included in this press
release and the accompanying tables have been revised from amounts
previously reported to reflect our previously reported restatement. See
note 2 to our consolidated financial statements included in our Annual
Report on Form 10-K filed with the Securities and Exchange Commission on
March 18, 2013 for further discussion.
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 66 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 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; 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, 2012, filed with the U.S. Securities and
Exchange Commission on March 18, 2013. 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
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2013
|
|
|
2012
|
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
20,963,260
|
|
|
|
$
|
63,347,645
|
|
Restricted cash
|
|
|
25,749,304
|
|
|
|
26,358,908
|
|
Accounts receivable, net
|
|
|
88,298,744
|
|
|
|
84,124,627
|
|
Accounts receivable retainage
|
|
|
22,151,086
|
|
|
|
23,197,784
|
|
Costs and estimated earnings in excess of billings
|
|
|
43,528,591
|
|
|
|
62,096,284
|
|
Inventory, net
|
|
|
11,494,463
|
|
|
|
9,502,289
|
|
Prepaid expenses and other current assets
|
|
|
8,639,804
|
|
|
|
9,600,619
|
|
Income tax receivable
|
|
|
6,586,390
|
|
|
|
5,385,242
|
|
Deferred income taxes
|
|
|
6,254,639
|
|
|
|
5,190,718
|
|
Project development costs
|
|
|
10,684,119
|
|
|
|
9,038,725
|
|
Total current assets
|
|
|
244,350,400
|
|
|
|
297,842,841
|
|
Federal ESPC receivable
|
|
|
92,979,544
|
|
|
|
91,854,808
|
|
Property and equipment, net
|
|
|
9,735,841
|
|
|
|
9,387,218
|
|
Project assets, net
|
|
|
214,349,626
|
|
|
|
207,274,982
|
|
Deferred financing fees, net
|
|
|
5,943,326
|
|
|
|
5,746,177
|
|
Goodwill
|
|
|
50,379,564
|
|
|
|
48,968,390
|
|
Intangible assets, net
|
|
|
9,423,283
|
|
|
|
9,742,878
|
|
Other assets
|
|
|
3,731,411
|
|
|
|
4,654,709
|
|
|
|
|
386,542,595
|
|
|
|
377,629,162
|
|
|
|
|
$
|
630,892,995
|
|
|
|
$
|
675,472,003
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
Current liabilities:
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
|
$
|
10,742,963
|
|
|
|
$
|
12,452,678
|
|
Accounts payable
|
|
|
66,404,098
|
|
|
|
101,007,455
|
|
Accrued expenses and other current liabilities
|
|
|
9,540,592
|
|
|
|
13,157,024
|
|
Billings in excess of cost and estimated earnings
|
|
|
23,200,163
|
|
|
|
22,271,655
|
|
Total current liabilities
|
|
|
109,887,816
|
|
|
|
148,888,812
|
|
Long-term debt, less current portion
|
|
|
197,670,955
|
|
|
|
201,922,172
|
|
Deferred income taxes
|
|
|
25,593,697
|
|
|
|
24,888,229
|
|
Deferred grant income
|
|
|
7,892,402
|
|
|
|
7,590,730
|
|
Other liabilities
|
|
|
28,380,724
|
|
|
|
30,362,869
|
|
|
|
|
$
|
259,537,778
|
|
|
|
$
|
264,764,000
|
|
|
|
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, no
shares issued and outstanding at March 31, 2013 and December 31, 2012
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
Class A common stock, $0.0001 par value, 500,000,000 shares
authorized, 32,267,938 shares issued and 27,434,654 outstanding at
March 31, 2013, 32,019,982 shares issued and 27,186,698 outstanding
at December 31, 2012
|
|
|
3,227
|
|
|
|
3,202
|
|
Class B common stock, $0.0001 par value, 144,000,000 shares
authorized, 18,000,000 shares issued and outstanding at March 31,
2013 and December 31, 2012
|
|
|
1,800
|
|
|
|
1,800
|
|
Additional paid-in capital
|
|
|
94,806,437
|
|
|
|
93,141,432
|
|
Retained earnings
|
|
|
175,245,645
|
|
|
|
177,169,717
|
|
Accumulated other comprehensive income
|
|
|
685,747
|
|
|
|
713,194
|
|
Non-controlling interest
|
|
|
(92,884
|
)
|
|
|
(27,583
|
)
|
Less - treasury stock, at cost, 4,833,284 shares
|
|
|
(9,182,571
|
)
|
|
|
(9,182,571
|
)
|
Total stockholders’ equity
|
|
|
261,467,401
|
|
|
|
261,819,191
|
|
|
|
|
$
|
630,892,995
|
|
|
|
$
|
675,472,003
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERESCO, INC.
|
CONSOLIDATED STATEMENTS OF (LOSS) INCOME
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2013
|
|
|
2012
|
|
|
|
(Unaudited)
|
|
|
(Unaudited and Restated)
|
Revenue:
|
|
|
|
|
|
|
Energy efficiency revenue
|
|
|
$
|
69,820,479
|
|
|
|
$
|
113,382,670
|
|
Renewable energy revenue
|
|
|
40,315,044
|
|
|
|
33,190,699
|
|
|
|
|
110,135,523
|
|
|
|
146,573,369
|
|
Direct expenses:
|
|
|
|
|
|
|
Energy efficiency expenses
|
|
|
55,455,258
|
|
|
|
89,619,775
|
|
Renewable energy expenses
|
|
|
33,161,394
|
|
|
|
27,729,784
|
|
|
|
|
88,616,652
|
|
|
|
117,349,559
|
|
Gross profit
|
|
|
21,518,871
|
|
|
|
29,223,810
|
|
Operating expenses:
|
|
|
|
|
|
|
Salaries and benefits
|
|
|
11,013,301
|
|
|
|
14,369,212
|
|
Project development costs
|
|
|
4,281,165
|
|
|
|
4,216,352
|
|
General, administrative and other
|
|
|
8,306,902
|
|
|
|
7,213,456
|
|
|
|
|
23,601,368
|
|
|
|
25,799,020
|
|
Operating (loss) income
|
|
|
(2,082,497
|
)
|
|
|
3,424,790
|
|
Other expenses, net
|
|
|
464,313
|
|
|
|
1,107,739
|
|
(Loss) income before (benefit) provision for income taxes
|
|
|
(2,546,810
|
)
|
|
|
2,317,051
|
|
Income tax (benefit) provision
|
|
|
(622,738
|
)
|
|
|
581,887
|
|
Net (loss) income
|
|
|
$
|
(1,924,072
|
)
|
|
|
$
|
1,735,164
|
|
Net (loss) income per share attributable to common shareholders:
|
|
|
|
|
|
|
Basic
|
|
|
$
|
(0.04
|
)
|
|
|
$
|
0.04
|
|
Diluted
|
|
|
$
|
(0.04
|
)
|
|
|
$
|
0.04
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
45,327,237
|
|
|
|
44,145,093
|
|
Diluted
|
|
|
46,220,748
|
|
|
|
46,128,417
|
|
|
|
|
|
|
|
|
OTHER NON-GAAP DISCLOSURES
|
|
|
|
|
|
|
Gross margins:
|
|
|
|
|
|
|
Energy efficiency revenue
|
|
|
20.6
|
%
|
|
|
21.0
|
%
|
Renewable energy revenue
|
|
|
17.7
|
%
|
|
|
16.5
|
%
|
Total
|
|
|
19.5
|
%
|
|
|
19.9
|
%
|
Operating expenses as a percent of revenue
|
|
|
21.4
|
%
|
|
|
17.6
|
%
|
Adjusted Earnings before interest, taxes, depreciation and
amortization (Adjusted EBITDA):
|
|
|
|
|
|
|
Operating (loss) income
|
|
|
$
|
(2,082,497
|
)
|
|
|
$
|
3,424,790
|
|
Depreciation and amortization of intangible assets
|
|
|
5,698,018
|
|
|
|
4,939,247
|
|
Stock-based compensation
|
|
|
671,101
|
|
|
|
781,453
|
|
Adjusted EBITDA
|
|
|
$
|
4,286,622
|
|
|
|
$
|
9,145,490
|
|
Adjusted EBITDA margin
|
|
|
3.9
|
%
|
|
|
6.2
|
%
|
Construction backlog:
|
|
|
|
|
|
|
Awarded
|
|
|
$
|
1,164,907,290
|
|
|
|
$
|
871,462,874
|
|
Fully-contracted
|
|
|
343,828,596
|
|
|
|
412,676,044
|
|
Total construction backlog
|
|
|
$
|
1,508,735,886
|
|
|
|
$
|
1,284,138,918
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Awarded represents estimated future revenues from projects that
have been awarded, though the contracts have not yet been signed.
AMERESCO, INC.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2013
|
|
|
2012
|
|
|
|
(Unaudited)
|
|
|
(Unaudited and Restated)
|
Cash flows from operating activities:
|
|
|
|
|
|
|
Net (loss) income
|
|
|
$
|
(1,924,072
|
)
|
|
|
$
|
1,735,164
|
|
Adjustments to reconcile net (loss) income to cash (used in)
provided by operating activities:
|
|
|
|
|
|
|
Depreciation of project assets
|
|
|
4,010,435
|
|
|
|
2,605,030
|
|
Depreciation of property and equipment
|
|
|
796,546
|
|
|
|
677,973
|
|
Amortization of deferred financing fees
|
|
|
84,148
|
|
|
|
133,287
|
|
Amortization of intangible assets
|
|
|
891,037
|
|
|
|
1,656,244
|
|
Provision for bad debts
|
|
|
42,339
|
|
|
|
53,636
|
|
Unrealized gain on interest rate swap
|
|
|
(389,087
|
)
|
|
|
(229,866
|
)
|
Stock-based compensation expense
|
|
|
671,101
|
|
|
|
781,453
|
|
Deferred income taxes
|
|
|
(1,049,325
|
)
|
|
|
(550,328
|
)
|
Excess tax benefits from stock-based compensation arrangements
|
|
|
(138,780
|
)
|
|
|
(1,202,597
|
)
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
(Increase) decrease in:
|
|
|
|
|
|
|
Restricted cash draws
|
|
|
7,518,821
|
|
|
|
10,082,814
|
|
Accounts receivable
|
|
|
(4,186,325
|
)
|
|
|
24,537,183
|
|
Accounts receivable retainage
|
|
|
1,201,598
|
|
|
|
5,692,808
|
|
Federal ESPC receivable
|
|
|
(9,673,735
|
)
|
|
|
(14,070,137
|
)
|
Inventory
|
|
|
(1,992,174
|
)
|
|
|
(140,865
|
)
|
Costs and estimated earnings in excess of billings
|
|
|
18,619,861
|
|
|
|
17,780,552
|
|
Prepaid expenses and other current assets
|
|
|
875,763
|
|
|
|
2,825,403
|
|
Project development costs
|
|
|
(1,644,638
|
)
|
|
|
(831,959
|
)
|
Other assets
|
|
|
153,721
|
|
|
|
(174,600
|
)
|
Increase (decrease) in:
|
|
|
|
|
|
|
Accounts payable, accrued expenses and other current liabilities
|
|
|
(38,098,250
|
)
|
|
|
(20,527,498
|
)
|
Billings in excess of cost and estimated earnings
|
|
|
961,897
|
|
|
|
897,751
|
|
Other liabilities
|
|
|
(1,368,603
|
)
|
|
|
870,642
|
|
Income taxes payable
|
|
|
(1,065,754
|
)
|
|
|
606,671
|
|
Net cash (used in) provided by operating activities
|
|
|
(25,703,476
|
)
|
|
|
33,208,761
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(1,094,380
|
)
|
|
|
(1,276,533
|
)
|
Purchases of project assets
|
|
|
(12,855,786
|
)
|
|
|
(10,002,946
|
)
|
Grant awards and rebates received on project assets
|
|
|
1,290,934
|
|
|
|
3,838,766
|
|
Acquisition, net of cash received
|
|
|
(1,808,085
|
)
|
|
|
—
|
|
Net cash used in investing activities
|
|
|
(14,467,317
|
)
|
|
|
(7,440,713
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
|
Excess tax benefits from stock-based compensation arrangements
|
|
|
138,780
|
|
|
|
1,202,597
|
|
Book overdraft
|
|
|
—
|
|
|
|
(7,297,122
|
)
|
Payments of financing fees
|
|
|
(40,218
|
)
|
|
|
(20,325
|
)
|
Proceeds from exercises of options
|
|
|
855,149
|
|
|
|
1,063,432
|
|
Payments of senior secured credit facility
|
|
|
—
|
|
|
|
(6,428,571
|
)
|
Non-controlling interest
|
|
|
(65,301
|
)
|
|
|
7,700
|
|
Restricted cash
|
|
|
(639,472
|
)
|
|
|
(1,430,592
|
)
|
Payments on long-term debt
|
|
|
(3,805,781
|
)
|
|
|
(807,464
|
)
|
Net cash used in financing activities
|
|
|
(3,556,843
|
)
|
|
|
(13,710,345
|
)
|
Effect of exchange rate changes on cash
|
|
|
1,343,251
|
|
|
|
100,293
|
|
Net (decrease) increase in cash and cash equivalents
|
|
|
(42,384,385
|
)
|
|
|
12,157,996
|
|
Cash and cash equivalents, beginning of year
|
|
|
63,347,645
|
|
|
|
26,277,366
|
|
Cash and cash equivalents, end of period
|
|
|
$
|
20,963,260
|
|
|
|
$
|
38,435,362
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit A: Non-GAAP Financial Measures
We define adjusted EBITDA as operating income before depreciation,
amortization of intangible assets, impairment and share-based
compensation expense. Adjusted EBITDA is a non-GAAP financial measure
and should not be considered as an alternative to operating income or
any other measure of financial performance calculated and presented in
accordance with GAAP. For a reconciliation of adjusted EBITDA to
operating income, the most directly comparable financial measure
prepared in accordance with GAAP, please see Other Non-GAAP Disclosure
in the tables above.
We believe adjusted EBITDA is useful to investors in evaluating its
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, and share-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.
We understand that, although measures similar to adjusted EBITDA are
frequently used by investors and securities analysts in their evaluation
of companies, adjusted EBITDA has limitations as an analytical tool, and
investors should not consider it in isolation or as a substitute for
GAAP operating income or an analysis of our results of operations as
reported under GAAP. Some of these limitations are: adjusted EBITDA does
not reflect the Company’s cash expenditures or future requirements for
capital expenditures or other contractual commitments; adjusted EBITDA
does not reflect changes in, or cash requirements for, our working
capital needs; adjusted EBITDA does not reflect stock-based compensation
expense; adjusted EBITDA does not reflect cash requirements for income
taxes; adjusted EBITDA does not reflect net interest income (expense);
although depreciation, amortization and impairment are non-cash charges,
the assets being depreciated, amortized or impaired will often have to
be replaced in the future, and adjusted EBITDA does not reflect any cash
requirements for these replacements; and other companies in our industry
may calculate adjusted EBITDA differently than we do, limiting its
usefulness as a comparative measure.
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. Please refer
to the above reconciliation of adjusted EBITDA to operating income, the
most directly comparable GAAP measure.
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