Ameresco Reports Third Quarter 2011 Financial Results
Third Quarter 2011 Financial Highlights:
• Revenue of $227.8 million, an increase of 18.7% year-over-year
• Net income of $12.4 million, an increase of 2.6% year-over-year
• Net income per diluted share of $0.27
9 Month Year-to-Date 2011 Financial Highlights:
• Revenue of $539.7 million, an increase of 23.0% year-over-year
• Net income of $26.5 million, an increase of 25.9% year-over-year
• Net income per diluted share of $0.58
FRAMINGHAM, MA – November 9, 2011 – Ameresco, Inc. (NYSE:AMRC) a leading energy efficiency and renewable energy company, today announced financial results for the fiscal quarter ended September 30, 2011. The Company has also furnished prepared remarks in conjunction with this press release in a Current Report on Form 8-K. These prepared remarks, including a supplemental document containing non-financial metrics frequently reported with quarterly results, have been posted to the “Investor Relations” section of the Company’s website at www.ameresco.com.
Total revenue for the third quarter of 2011 was $227.8 million compared to $191.9 million for the same period in 2010, an increase of 18.7% year-over-year. Excluding the impact of the two acquisitions, organic revenue increased 10.4%. Operating income for the third quarter of 2011 was $16.4 million compared to $18.9 million in the third quarter of 2010, a decrease of 13.2% year-over-year. Third quarter 2011 adjusted EBITDA, a non-GAAP number, was $20.9 million compared to $24.4 million for the same period in 2010, a decrease of 14.4% year-over-year. Operating income and adjusted EBITDA for the third quarter were both affected by approximately $1.2 million in one-time charges. Net income for the third quarter of 2011 was $12.4 million compared to $12.0 million in the same period of 2010, an increase of 2.6% year-over-year. Third quarter 2011 net income per diluted share was $0.27 compared to $0.28 per diluted share in the same period of 2010. Diluted weighted average shares outstanding increased from 43.4 million in the third quarter of 2010 to 46.3 million shares outstanding in the third quarter of 2011 due principally to our initial public offering in July of 2010.
“Ameresco produced solid third quarter results driven by organic topline growth in energy efficiency,” stated George P. Sakellaris, president and chief executive officer of Ameresco. “We continue to see strong demand for our budget neutral solutions in several regions and are investing in those regions where we believe the opportunity is forthcoming. We are also very encouraged by the year-over-year increase in awarded projects which resulted in a book-to-bill ratio of 1.34 for the quarter. We believe our current pipeline activity positions us well for continued future growth.”
For the nine months ended September 30, 2011, Ameresco reported total revenue of $539.7 million, compared to $438.9 million for the same period in 2010, an increase of 23.0%. Excluding the two acquisitions, organic revenue increased 19.3%. Operating income for the first nine months of 2011 was $38.1 million compared to $33.5 million in the first nine months of 2010, an increase of 13.7% year-over-year. Adjusted EBITDA for the first nine months of 2011 was $49.7 million compared to $44.1 million in the first nine months of 2010, an increase of 12.6% year-over-year. Net income for the first nine months of 2011 was $26.5 million compared to $21.0 million in the first nine months of 2010, an increase of 25.9% year-over-year. Net income per diluted share was $0.58 for the first nine months of 2011 compared to $0.53 during the first nine months of 2010.
Additional Third Quarter 2011 Operating Highlights:
• Revenue generated from backlog was $191.8 million for the third quarter of 2011, an increase of 16.2% year-over-year. Excluding acquisitions, organic revenue generated from backlog increased 10.4%.
• All other revenue was $36.0 million for the third quarter of 2011, an increase of 33.9% year-over-year. Excluding acquisitions, all other revenue increased 10.0% organically.
• Operating cash flows were $10.3 million for the third quarter of 2011.
• Total construction backlog was $1.22 billion as of September 30, 2011 and consisted of:
• $438.0 million of fully-contracted backlog, which represents signed customer contracts for installation or construction of projects that are expected to convert into revenue over the next 12-24 months on average; and
• $782.4 million of awarded projects, which represents estimated future revenue for projects that are expected to be signed over the next 6-12 months on average.
• The July 2011 acquisition of Applied Energy Group, a premier consulting company providing energy efficiency and demand side management services to utilities and government agencies in the Northeast, Mid-Atlantic, Midwest and other regions, strengthens Ameresco’s leadership position within energy efficiency while expanding the offering to utility customers.
• The August 2011 acquisition of APS Energy Services, a leading energy services company headquartered in Tempe, Arizona, which has been renamed Ameresco Southwest, strengthens Ameresco’s presence in the Southwest region.
FY 2011 Guidance
Due to the acquisitions, Ameresco is raising revenue guidance for the fiscal year ending December 31, 2011. Ameresco now expects to earn total revenue in the range of $722 million to $727 million. The Company continues to expect that adjusted EBITDA will be in the range of $67 million to $70 million, and that net income will be in the range of $35 million to $37 million. Ameresco also expects that net income per diluted share for 2011 will be in the range of $0.75 to $0.79.
Ameresco will hold its earnings conference call today, November 9th, 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 third quarter 2011 results, business outlook and strategy. Participants may access it by dialing domestically 888.713.4199 or internationally 617.213.4861. The passcode is 53021449. Participants are advised to dial-in at least ten minutes prior to the call to register. 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.
Pre-Registration for the call is also available at:
https://www.theconferencingservice.com/prereg/key.process?key=PBKJA3QT9. 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.
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.
About Ameresco, Inc.
Founded in 2000, Ameresco, Inc. (NYSE:AMRC) is a leading independent provider of comprehensive services, energy efficiency, infrastructure upgrades, 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 59 offices in 34 states and five Canadian provinces. Ameresco has more than 850 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 backlog, estimated future revenues, adjusted EBITDA, net income and net income per share, 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 demand for Ameresco’s energy efficiency and renewable energy solutions; the Company’s ability to arrange financing for its projects; changes in federal, state and local government policies and programs related to energy efficiency and renewable energy; the timing of work Ameresco does on projects where it recognizes revenue on a percentage of completion basis; the effects of our recent acquisitions; seasonality in construction and in demand for its products and services; a customer’s decision to delay the Company’s 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 Annual Report on Form 10-K for the year ended December 31, 2010, filed with the U.S. Securities and Exchange Commission on March 31, 2011. 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.