Ameresco Reports Third Quarter 2019 Financial Results

– Record Smart Energy Solutions Awards –

– Significant Growth of Ameresco Assets in Development –

– Timing Issues Impact Smart Energy Solutions Revenue –

– Reaffirms Full Year 2019 Guidance


Third Quarter 2019 Financial Highlights:

  • Revenues of $212.0 million
  • Net income attributable to common shareholders of $8.9 million
  • Net income per diluted share of $0.19
  • Adjusted EBITDA of $23.9 million
  • Total project backlog of $2.2 billion
  • Record high project awards of $343 million
  • Ameresco Assets in development added 37 MWe

FRAMINGHAM, MA – November 5, 2019 – Ameresco, Inc. (NYSE:AMRC), a leading energy solutions provider today announced financial results for the fiscal quarter ended September 30, 2019. 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

“As we stated at the beginning of the year, 2019 was going to be an investment year.  We decided to invest in our advanced technology portfolio, bringing in top talent and engineering excellence to accelerate the growth of the distributed energy generation business.  This strategy

proved effective, as we had a record high quarter for project awards.  We also executed effectively on our long-term strategy of growing our recurring revenue with continuing growth of the Ameresco assets business,” said George P. Sakellaris, President and Chief Executive Officer.

“Third quarter results largely reflected timing issues in our Smart Energy Solutions project business as several large contracts were not signed before quarter’s end. These represent contracts that Ameresco has been awarded, but the timing of project commencement can be pushed out according to client schedules.”

“Recent events in California demonstrate the growing need for resiliency, as public and private organizations can no longer count on the existing grid for uninterrupted power. In particular, we expect to see increased demand for our advanced technology portfolio including onsite energy generation, energy storage and microgrids. Ameresco’s investment in these complex technologies places us in a strong competitive position to deliver these solutions to our customers.”

Third Quarter Financial Results

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

Revenues were $212.0 million, compared to $205.4 million last year, representing modest growth across our platform.  Operating income was $13.5 million, compared to $17.3 million. Net income attributable to common shareholders was $8.9 million, compared to $10.7 million.  Non-GAAP net income was $8.5 million, compared to $11.0 million. Net income per diluted share was $0.19, and non-GAAP EPS was $0.18 compared to $0.23 in the year ago quarter. Adjusted EBITDA, a non-GAAP financial measure, was $23.9 million, compared to $25.6 million. Cash flows used in operating activities were $11.5 million, compared to cash from operations of $25.1 million, and adjusted cash from operations, a non-GAAP financial measure, was $21.3 million, compared to adjusted cash from operations of $69.0 million.

Backlog and Awards

New awards during the quarter reached a record high of $343 million up 72% year over year.

Total project backlog at September 30, 2019 was $2.2 billion and was comprised of the following:

  • $787 million in contracted backlog representing signed customer contracts for installation or construction of projects, which we expect to convert into revenue over the next one to three years, on average; and
  • $1.4 billion of awarded projects, representing projects in development for which we do not have signed contracts.

Ameresco assets in development were $572 million or 287 MWe.

Third Quarter Project Update:

  • Ameresco completed the second phase of an energy efficiency project with Lynwood Unified School District, CA
  • Ameresco completed an energy resiliency project at the Middle School in the Town of Wayland, MA
  • Ameresco began phase two of an energy savings project at the Medical University of South Carolina
  • Ameresco was selected to complete a comprehensive building modernization project at the iconic James A. Farley building, a USPS facility in New York City
  • Ameresco completed a switch-flip ceremony at Hamilton Southeastern Schools, IN for two solar arrays comprised of 4,800 panels

Third Quarter Ameresco Assets Update:

  • Ameresco announced construction of a 2.1 MW solar project with Orange Unified School District, CA
  • Ameresco announced it will develop a 27 MW solar farm in the Village of DePue, IL
  • Ameresco completed a ribbon cutting of a 16 MWh battery energy storage project on behalf of Ontario’s Independent Electricity System Operator
  • Ameresco announced completion of the first shared clean energy facility in CT with a 2 MW solar project at Bloomfield, CT

Summary and Outlook

While third quarter results were below the Company’s expectations, Ameresco reaffirms its full year 2019 guidance for net income per diluted share of $0.77 to $0.85, adjusted EBITDA of $95 million to $103 million, and total revenue of $845 million to $885 million.

Ameresco ended the third quarter with a substantial project backlog and large energy asset development pipeline, which support Company expectations for a strong finish to 2019 and accelerated growth entering 2020.

Full year 2019 guidance excludes the impact of the $2.2 million gain during the first quarter from the deconsolidation of a variable interest entity, any non-controlling interest activity, restructuring activities, as well as any related tax impact.  Also 2019 guidance does not assume any benefit from IRC Section 179D deductions, which in 2018 provided a benefit of $5.8 million, and have since expired.

Conference Call/Webcast Information

The Company will host a conference call today at 8:30 a.m. ET to discuss results.  The conference call will be available via the following dial in numbers:

  • S. Participants: Dial 1-877-359-9508 (Access Code: 1390048)
  • International Participants: Dial 1-224-357-2393 (Access Code: 1390048)

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.

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; and other factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2018, filed with the U.S. Securities and Exchange Commission on March 8, 2019. 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.

Exhibit A: Non-GAAP Financial Measures

We use the non-GAAP financial measures defined and discussed below to provide investors and others with useful supplemental information to our financial results prepared in accordance with GAAP. These non-GAAP financial measures should not be considered as an alternative to any measure of financial performance calculated and presented in accordance with GAAP. For a reconciliation of these non-GAAP measures to the most directly comparable financial measures prepared in accordance with GAAP, please see Other Non-GAAP Disclosure and Non-GAAP Financial Guidance in the tables above.

We understand that, although measures similar to these non-GAAP financial measures are frequently used by investors and securities analysts in their evaluation of companies, they have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for the most directly comparable GAAP financial measures or an analysis of our results of operations as reported under GAAP. 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.

Adjusted EBITDA and Adjusted EBITDA Margin

We define adjusted EBITDA as operating income before depreciation, amortization of intangible assets, accretion of asset retirement obligations, contingent consideration expense, stock-based compensation expense, restructuring charges, and gain upon deconsolidation of a variable interest entity (“VIE”). We believe adjusted EBITDA is useful to investors in evaluating our 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, accretion of asset retirement obligations, contingent consideration expense, stock-based compensation expense, restructuring charges, and gain upon deconsolidation of a VIE. We define adjusted EBITDA margin as adjusted EBITDA stated as a percentage of revenue.

Our management uses adjusted EBITDA and adjusted EBITDA margin as measures of operating performance, because they do 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.

Non-GAAP Net Income and EPS

We define non-GAAP net income and earnings per share (“EPS”) to exclude certain discrete items that management does not consider representative of our ongoing operations, including restructuring charges, gain upon deconsolidation of a VIE and impact from redeemable non-controlling interest. We consider non-GAAP net income and non-GAAP EPS to be important indicators of our operational strength and performance of our business because they eliminate the effects of events that are not part of the Company’s core operations.

Adjusted Cash from Operations

We define adjusted cash from operations as cash flows from operating activities plus proceeds from Federal ESPC projects. Cash received in payment of Federal ESPC projects is treated as a financing cash flow under GAAP due to the unusual financing structure for these projects. These cash flows, however, correspond to the revenue generated by these projects. Thus we believe that adjusting operating cash flow to include the cash generated by our Federal ESPC projects provides investors with a useful measure for evaluating the cash generating ability of our core operating business. Our management uses adjusted cash from operations as a measure of liquidity because it captures all sources of cash associated with our revenue generated by operations.

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