Ameresco Reports Second Quarter 2016 Financial Results

Second Quarter 2016 Financial Highlights

  • Revenues of $162.6 million, an increase of 7%
  • Net income of $2 million or $0.04 per diluted share
  • Adjusted EBITDA of $13.2 million
  • Non-GAAP EPS of $0.08
  • New awards of $270 million, up 43%
  • Total project backlog of $1.6 billion, up 16% year over year

FRAMINGHAM, MA – August 9, 2016 – Ameresco, Inc. (NYSE:AMRC), a leading energy efficiency and renewable energy company, today announced financial results for the fiscal quarter ended June 30, 2016. 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

Management Commentary

George P. Sakellaris, Chairman, President and Chief Executive Officer of Ameresco commented, “We started the year with a clear strategy to drive growth, and our performance this quarter demonstrates our ability to execute. Investment in project development drove outstanding backlog growth, both in our fastest growing segments such as U.S. Federal, and also in areas of the country in which we have been underrepresented historically. We added to our renewable energy portfolio by putting 5.2 MW into service and growing energy revenue over 8%. Finally, we progressed in resolving issues in the under-performing business units. In particular, we believe our Canadian operations are positioned to once again contribute to growth.”

Sakellaris continued, “Our execution against the growth strategy helped to further build momentum in our business. We had solid revenue growth and good profitability. More important was the acceleration we saw in business development activity. Awarded backlog was up 18%, and total backlog was up 16%. We had over $270 million of new awards, an amount that was 43% higher than the new awards we booked in the second quarter of 2015. The improving backlog visibility positions us for a strong 2017 and beyond.”

Financial Results
(All financial result comparisons made are against the prior year period unless otherwise noted.)

Second Quarter 2016

Revenues were $162.6 million, compared to $152.5 million, driven mainly by our Federal segment. Operating income was $4.7 million, compared to $5.1 million.

Net income was $2.0 million in both quarters, resulting in net income per diluted share of $0.04. Non-GAAP EPS was $0.08, compared to $0.04.

Adjusted EBITDA, a non-GAAP financial measure, was $13.2 million, compared to $11.5 million.

Additional Second Quarter 2016 Operating Highlights:

  • Project revenues were $113.6 million, an increase of 11%.
  • Revenues from other service offerings was slightly down at $49.0 million due to the anticipated decline in integrated-PV.
  • Cash flows from operating activities used $24.7 million, compared to $14.9 million, and adjusted cash from operations, a non-GAAP financial measure, was $(2.3) million, compared to $8.0 million both driven by strong construction activity in our Federal segment ahead of scheduled draws on our Federal ESPC agreements.
  • Total project backlog was $1,551.1 million as of June 30, 2016 and consisted of:
    • $435.1 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
    • $1,116.0 million of awarded projects, representing projects in development for which we do not have signed contracts.
  • Assets in development were $157.0 million or 66 MWe. We placed 5.2 MW of solar assets into service during the quarter.

FY 2016 Guidance
Ameresco is reaffirming its full year 2016 outlook. The Company expects to earn total revenue in the range of $645 million to $680 million in 2016. The Company also expects adjusted EBITDA for 2016 to be in the range of $51 million to $57 million and net income per diluted share to be in the range of $0.25 to $0.30 for 2016. Our guidance assumptions for the remainder of 2016 are as follows: project revenues from contracted backlog of approximately $195 million; project revenues from awarded projects and proposals in the range of $55 million to $90 million; the remainder of revenues from all other service offerings; gross margin in the range of 19-20%; operating expenses as a percentage of revenue of 15.5-16.5%; an effective income tax rate of 25% using the midpoint of our guidance range; and weighted average common shares outstanding of 48 million. This guidance excludes the impact of any non-controlling interest activity and any additional charges relating to the SunEdison bankruptcy and our restructuring activities.

Share Repurchase Program
During the second quarter, the Company repurchased 417,698 shares of its Class A common stock for an average per share price of $4.63. The Company has approximately $8 million of remaining authorization under the share repurchase program it announced in May 2016.

Webcast Reminder
The Company will host a conference call today at 8:30 a.m. ET today to discuss results. Participants may access the earnings conference call by dialing +1 (877) 359-9508 or internationally +1 (224) 357-2393. The passcode is 46433469. 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 An archived webcast will be available on the Company’s website for one year.

In conjunction with the conference call, the Company will provide management’s prepared remarks in the “Investor Relations” section of the Company’s website, as well as in a Current Report on Form 8-K filed with the SEC.

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

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, 2015, filed with the U.S. Securities and Exchange Commission on March 4, 2016 and in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, filed with the U.S. Securities and Exchange Commission on May 5, 2016. 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.

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Investor Relations: John Granara, 508.661.2215
Gary Dvorchak, CFA, The Blue Shirt Group, 323.240.5796, [email protected]

Ameresco: CarolAnn Hibbard, 508-661-2264, [email protected]