Ameresco Reports Third Quarter 2010 Financial Results
Framingham, MA -
Ameresco Reports Third Quarter 2010 Financial Results
Third Quarter 2010 Financial Highlights:
• Third quarter revenues increased 45% year-over-year to $191.9 million
• Third quarter net income increased 47% year-over-year to $12.0 million
• Net income per diluted share was $0.28 in the third quarter of 2010 compared to $0.23 per diluted share in the third quarter of 2009
Nine Month Year-to-Date 2010 Performance:
• Nine month revenues increased 49% year-over-year to $438.9 million
• Nine month net income increased 103% year-over-year to $21.0 million
• Net income per diluted share was $0.53 for the first nine months of 2010, a 79% increase over the $0.30 per diluted share earned during the same period in 2009
Ameresco, Inc. (NYSE:AMRC) a leading energy efficiency and renewable energy company, today announced financial results for the quarter ended September 30, 2010. Ameresco had revenues of $191.9 million in the third quarter of 2010, compared to $132.3 million in the third quarter of 2009, an increase of 45%. Net income for the third quarter of 2010 was $12.0 million, compared to $8.2 million in the third quarter of 2009, an increase of 47%. Net income per diluted share was $0.28 in the third quarter of 2010, compared to $0.23 per diluted share in the same quarter of 2009. The third quarter 2009 results included non-recurring gains from derivative activity totaling $2.8 million. Excluding the effect of these items, the increase in net income from 2009 would have been 91%.
“Ameresco produced strong third quarter financial performance by effectively executing on our existing projects and continuing to successfully implement our 2010 business plan,” said George Sakellaris, president and chief executive officer of Ameresco. “We made significant progress on many of our marquee projects. We continue to win business across North America, and this quarter won a bid with the U.S. Navy to improve energy efficiency for two of their facilities in Italy. We are pleased that demand for our solutions remains strong and that organizations are realizing the need for implementing energy efficiency and renewable energy solutions that produce financial as well as social returns.”
Ameresco’s third quarter results were driven by strong market demand for energy solutions, increased revenues, improved gross profit margins, particularly from renewable energy projects, and increased operating leverage.
For the nine months ended September 30, 2010, Ameresco reported total revenues of $438.9 million, compared to $295.1 million for the same period in 2009, an increase of 49%. Net income for the first nine months of 2010 was $21.0 million, or $0.53 per diluted share, compared with $10.3 million, or $0.30 per diluted share for the first nine months of 2009. Net income for the period increased 103%. Excluding the effects of the derivative activity noted above, the increase in net income would have been 149%.
• EBITDA for the third quarter of 2010 increased by 67% over the third quarter of 2009 to $24.4 million.
• EBITDA for the first nine months of 2010 increased 112% over the first nine months of 2009 to $44.1 million.
• Operating cash flows were $9.1 million for the third quarter of 2010.
• Total backlog of contracted, and awarded but not yet contracted, projects remains strong at $1.12 billion.
Some Key Highlights for Q3 2010
Acquisition of Quantum Energy, Renton WA. On August 31, Ameresco acquired Quantum Engineering and Development, an ESCO that provides energy and water auditing, engineering, construction and commissioning services to public, commercial and industrial clients in the western U.S. Since 1999, Quantum has delivered over $63 million in projects to public and private clients.
Ninety-seven contracts were executed for the quarter with good representation across all regions. Some marquee initiatives include:
• U.S. Navy facilities in Naples and Sigonella, Italy. Ameresco was awarded a $13.5 million ESPC for two US Navy locations. The ESPC is a mix of measures that includes energy efficient lighting, chillers and controls.
• The Department of Veterans Affairs, Veterans Administration Medical Center (VAMC). Ameresco was awarded a $6.6 million contract to design and build a solar photovoltaic system for the VAMC in Salt Lake City, Utah. The roof top systems, ranging from 35 to 100 kW, will be installed on seven campus facilities, and the ground-mounted system is expected to generate approximately 550 kW once completed.
• The U.S. Bureau of Land Management (BLM). BLM enlisted the AMERESCO AXIS® invoice and data management product to establish a Bureau-wide energy management information system to help reduce its energy costs, consumption, and carbon footprint in facilities throughout the Western U.S. This is the first Federal contract for AXIS, affording an opportunity to demonstrate its capabilities and value for this market that has some of the largest users of electricity in the country.
• The Massachusetts State Department of Energy Resources (DOER). Ameresco worked with the MA DOER to sign agreements to design, construct, finance, own, and operate solar power systems on five state facilities—two Massport Logan Airport terminals, Bridgewater State College, Worcester State College and the Canton Housing Authority. Under 20-year Power Purchase Agreements (PPAs), the state facilities will receive solar-generated electricity at a discount to their current electricity bills, thereby cutting their energy budgets. These agreements are under the first of multiple phases of PPA projects, positioning Ameresco within communities for when they embrace and move towards PPAs.
Ameresco expects that for the year ending December 31, 2010, it will earn total revenues in the range of $585 million to $595 million, EBITDA will be in the range of $55 million to $57 million, and net income will be in the range of $27 million to $28 million. The company also expects that net income per diluted share for 2010 will be in the range of $0.65 to $0.68.
Ameresco will hold its earnings conference call today, October 29, at 10:30 a.m. Eastern Time with President and CEO, George Sakellaris, and Vice President and Chief Financial Officer, Andrew Spence, to discuss details regarding the company’s third quarter 2010 results, business outlook and strategy. Participants may access it by dialing domestically (888) 713-4209 or internationally (617) 213-4863. The passcode is 86670561. Those who wish to listen only to the conference call webcast may visit the "Investor Relations" section of the Company's website at www.ameresco.com. Participants are advised to dial-in at least ten minutes prior to the call to register.
Pre-Registration for the call is available at: https://cossprereg.btci.com/prereg/key.process?key=PGL4K9YVW
Pre-registrants will be issued a pin number to use when dialing into the live call which will provide quick access to the conference by bypassing the operator upon connection.
The webcast will be available on the Company’s website shortly after the call.
Use of Non-GAAP Financial Measures
This press release and the accompanying tables reflect EBITDA, which is a non-GAAP financial measure. For a description of this non-GAAP financial measure, including the reasons management uses this measure and a reconciliation of EBITDA to operating income, the most directly comparable financial measure prepared in accordance with GAAP; please see the section of the accompanying tables titled "Non-GAAP Financial Measures" in Exhibit A.
About Ameresco, Inc.
Ameresco, Inc. was incorporated in Delaware in April 2000 and is a leading independent provider of comprehensive energy efficiency and renewable energy solutions for facilities throughout North America. Ameresco’s solutions include upgrades to a facility’s energy infrastructure, and the development, construction, and operation of renewable energy plants. With corporate headquarters located in Framingham, MA, Ameresco has 55 offices in 29 states and four Canadian provinces. 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 backlog, estimated future revenues and projects, as well as other statements containing the words “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; our ability to arrange financing our projects; changes in federal, state and local government policies and programs related to energy efficiency and renewable energy; the timing of work we do on projects where we recognize revenue on a percentage of completion basis; 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 Ameresco’s Quarterly Report on Form 10-Q, filed with the U.S. Securities and Exchange Commission on September 7, 2010. 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.
Release Date: 10/29/2010