Ameresco Reports Fourth Quarter and Full Year 2017 Financial Results
Full Year 2017 Financial Highlights (year over year):
Revenues of $717.2 million, compared to $651.2 million, up 10%
Net income attributable to common shareholders of $37.5 million, compared to $12.0 million
Net income per diluted share of $0.82, compared to $0.26
Net income includes a benefit of $14 million or $0.30 per diluted share related to the Tax Cuts and Jobs Act
Adjusted EBITDA of $63.3 million, compared to $56.2 million, up 13%
Non-GAAP EPS of $0.76, compared to $0.36
Record high project backlog of $1.77 billion, compared to $1.49 billion up 19%
FRAMINGHAM, MA – March 6, 2018 – Ameresco, Inc. (NYSE:AMRC), a leading energy efficiency and renewable energy company, today announced financial results for the fiscal quarter and year ended December 31, 2017. The Company has also furnished supplemental information in conjunction with this press release in a Current Report on Form 8-K. The supplemental information includes non-GAAP financial metrics, and has been posted to the “Investor Relations” section of the Company’s website at www.ameresco.com.
“We had a great 2017 and enter 2018 with exceptional business momentum,” said George P. Sakellaris, President and Chief Executive Officer of Ameresco. “Our earnings growth accelerated in 2017, and we anticipate more acceleration in the year ahead. Business is strong because we have a focused, effective strategy in place, and we are executing well against it.”
Sakellaris continued, “Increased investment in the efficiency project pipeline resulted in outstanding backlog growth, giving us great visibility. Growth is supported by our success in penetrating new regions across the US, and from initial success in the UK. Finally, we are strengthening our business model through the continued expansion of our energy asset portfolio. This high margin, recurring revenue is becoming a significant contributor to profit, and is set to grow meaningfully in 2018 and beyond.”
(All financial result comparisons made are against the prior year period unless otherwise noted.)
Fourth Quarter 2017
Revenues were $211.1 million, compared to $174.2 million. Net income was $23.8 million, compared to $3.3 million in 2016. Net income included $3.3 million of income attributable to redeemable non-controlling interest in 2017 and $0.1 million of expense attributable to redeemable non-controlling interest in 2016. Adjusted EBITDA, a non-GAAP financial measure, was $21.1 million, compared to $14.4 million.
Fourth quarter net income includes a benefit of $14 million or $0.30 per diluted share related to the impact of the re-measurement of the Company’s deferred income tax balances because of the Tax Cuts and Jobs Act enacted in December 2017. Net income per diluted share was $0.52, compared to $0.07 in 2016. Non-GAAP EPS was $0.48, compared to $0.08.
Full Year 2017
Revenues were $717.2 million, compared to $651.2 million. Net income attributable to Ameresco, Inc. was $37.5 million, compared to net income of $12.0 million. Adjusted EBITDA was $63.3 million, compared to $56.2 million. Non-GAAP net income was $35.0 million, compared to $16.8 million.
Net income for Full Year 2017 includes a benefit of $14 million or $0.30 per diluted share related to the impact of the re-measurement of the Company’s deferred income tax balances because of the Tax Cuts and Jobs Act enacted in December 2017. Net income per basic and diluted share was $0.82, compared to $0.26. Non-GAAP EPS was $0.76, compared to $0.36.
Additional Full Year 2017 Operating Highlights:
Cash flows used in operating activities, which excludes proceeds from Federal ESPC projects, were $136.6 million, compared to $58.1 million in the prior period, and adjusted cash from operations, a non-GAAP financial measure, was $28.5 million, compared to $32.0 million.
Total project backlog was $1.77 billion and consisted of:
$572.5 million of fully-contracted backlog, representing signed customer contracts for installation or construction of projects, which we expect to convert into revenue over the next two to four years, on average; and
$1.2 billion of awarded projects, representing projects in development for which we do not have signed contracts.
Energy Assets in development were $165.8 million or 78 MWe.
FY 2018 Guidance
Ameresco expects to earn total revenue in the range of $765 million to $800 million in 2018. The Company also expects adjusted EBITDA for 2018 to be in the range of $75 million to $85 million and net income per diluted share to be in the range of $0.55 to $0.65 for 2018. This guidance excludes the impact of any non-controlling interest activity and any additional charges relating to our restructuring activities, as well as any related tax impact.
Share Repurchase Program
Through the end of 2017, the Company repurchased 1,873,266 shares of its Class A common stock for $9.7 million. The Company has approximately $5.3 million of remaining authorization under the share repurchase program it announced in May 2016.
The Company will host a conference call today at 8:30 a.m. ET today to discuss results.
The conference call will be available via the following dial in numbers:
S. Participants: Dial 1-877-359-9508 (Access Code: 4085048)
International Participants: Dial 1-224-357-2393 (Access Code: 4085048)
Participants are advised to dial into the call at least ten minutes prior 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.
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 Other Non-GAAP Disclosures and Non-GAAP Financial Guidance 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, asset sustainability and renewable energy solutions for businesses and organizations throughout North America and Europe. Ameresco’s sustainability 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 has more than 1,000 employees providing local expertise in the United States, Canada, and the United Kingdom. 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 and restructuring activities; 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; market price of the Company’s stock prevailing from time to time; the nature of other investment opportunities presented to the Company from time to time; the Company’s cash flows from operations; and other factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2016, filed with the U.S. Securities and Exchange Commission on March 3, 2017. 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.