Ameresco Reports First Quarter 2021 Financial Results
Ameresco reported strong financial results for Q1 2021, with total revenue rising by 19% to $252.2 million. The Projects business led growth with a 25% increase, especially in the Federal sector. Operating income surged 92% to $18.3 million, and net income soared 80% to $11.2 million, resulting in a GAAP EPS of $0.22. The company completed its first public equity offering since 2010, raising over $120 million to fuel growth, particularly in renewable natural gas (RNG). Their total project backlog now stands at $2.3 billion.
- Revenue increased 19% to $252.2 million year-over-year.
- Net income rose 80% to $11.2 million with a GAAP EPS of $0.22.
- Operating income jumped 92% to $18.3 million.
- Projects business grew 25%, particularly in the Federal group.
- Completed public equity offering, raising over $120 million.
- None.
Ameresco, Inc. (NYSE:AMRC), a leading cleantech integrator specializing in energy efficiency and renewable energy, today announced financial results for the fiscal quarter ended March 31, 2021. 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.
“Our first quarter results were excellent and exceeded our expectations across all major metrics,” said George P. Sakellaris, President and Chief Executive Officer. “Business conditions improved progressively throughout the period and our employees rose to overcome the challenges presented during the quarter. This was another strong quarter for the Projects business, particularly within our Federal group. Our Energy Asset business also posted a meaningful pickup in revenue and profit. We were also pleased to see a considerable increase in project and asset proposals during the quarter, indicating a return to a more normalized activity level post-COVID-19 and leading to significant sequential and year-over-year growth in our awarded backlog.”
“In the first quarter, we completed our first public equity offering since Ameresco’s IPO in 2010, raising over
First Quarter Financial Results
(All financial result comparisons made are against the prior year period unless otherwise noted.)
Total revenue increased
(in millions) |
1Q 2021 |
1Q 2020 |
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Revenue |
Net Income |
Adj. EBITDA |
Revenue |
Net Income (Loss) |
Adj. EBITDA |
Projects |
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Energy Assets |
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O&M |
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Other |
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Total |
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(in millions) |
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At March 31, 2021 |
Awarded Project Backlog |
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Contracted Project Backlog |
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Total Project Backlog |
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O&M Revenue Backlog |
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Energy Asset Visibility * |
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Operating Energy Assets |
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287 MWe |
Assets in Development |
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386 MWe |
* estimated contracted revenue and incentives throughout PPA term on our operating energy assets
Project Highlights
In the first quarter of 2021:
-
Our recently announced construction start of the Norfolk Naval Shipyard (NNSY) in Portsmouth, Virginia highlights our total solutions capabilities utilizing clean advanced technologies. The
$173 million project includes a new 17.3 megawatt (MW) combined heat and power (CHP) plant, a 3 MW battery energy storage system, and a microgrid control system. These will provide the site with long-term energy security while reducing the electricity imported from the grid by 68 percent and mission critical steam. After construction is completed in 2022, Ameresco will operate and maintain the CHP plant, IWTP (industrial waste water treatment plant), and microgrid until January 2044 providing a long-term recurring O&M revenue stream. - We anticipate continued demand from the C&I market as more forward-looking companies look to save money while also lowering their carbon footprint. Our recently announced solar project with Wells Fargo to develop and install approximately 30 MW of new, onsite solar generation assets at corporate and retail locations in seven states is a great example of the growing opportunities in the C&I market. Construction of the nearly 100 solar arrays will go into 2022.
Asset Highlights
In the first quarter of 2021:
- Ameresco brought 5 MWe into operation while adding 40 MWe to our development backlog, bringing our total to 386 MWe.
- Asset additions in the quarter included the award of Energy as a Service for a C&I customer and awards of distributed solar installations in our East, Central and West regions.
Summary and Outlook
“The first quarter represented a strong start to the year and has laid the foundation for 2021 to be another year of strong growth for Ameresco. Additionally, we see substantial opportunities ahead as our customers prioritize cost savings and resiliency, combined with reducing their carbon footprints. Ameresco’s services are well aligned with the new Administration’s overarching goal of decarbonizing the U.S. economy and its mandate that climate change be considered in major decisions across all government agencies,” Mr. Sakellaris noted.
Based on visibility from our project backlog and our increased levels of recurring revenues, the Company is increasing its 2021 guidance ranges detailed in the table below, representing year-over-year revenue and adjusted EBITDA growth of
FY 2021 Guidance Ranges |
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Revenue |
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Gross Margin |
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Adjusted EBITDA |
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Interest Expense & Other |
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Effective Tax Rate |
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Non-GAAP EPS |
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Conference Call/Webcast Information
The Company will host a conference call today at 4:30 p.m. ET to discuss results. The conference call will be available via the following dial in numbers:
- U.S. Participants: Dial +1 (877) 359-9508 (Access Code: 5664848)
- International Participants: Dial +1 (224) 357-2393 (Access Code: 5664848)
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 cleantech integrator and renewable energy asset developer, owner and operator. Our comprehensive portfolio includes energy efficiency, infrastructure upgrades, asset sustainability and renewable energy solutions delivered to clients throughout North America and the United Kingdom. Ameresco’s sustainability services in support of clients’ pursuit of Net Zero include upgrades to a facility’s energy infrastructure and the development, construction, and operation of distributed energy resources. 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, 2020, filed with the U.S. Securities and Exchange Commission (SEC) on March 2, 2021. Currently, one of the most significant factors, however, is the potential adverse effect of the current pandemic of the novel coronavirus, or COVID-19, on our financial condition, results of operations, cash flows and performance and the global economy and financial markets. The extent to which COVID-19 impacts us, suppliers, customers, employees and supply chains will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures, among others. Moreover, you should interpret many of the risks identified in our Annual Report and Quarterly Report as being heightened as a result of the ongoing and numerous adverse impacts of COVID-19. 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.
AMERESCO, INC. |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(In thousands, except share amounts) |
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|
March 31, |
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December 31, |
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|
2021 |
|
2020 |
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(Unaudited) |
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ASSETS |
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Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
80,971 |
|
|
$ |
66,422 |
|
Restricted cash |
24,869 |
|
|
22,063 |
|
||
Accounts receivable, net |
113,095 |
|
|
125,010 |
|
||
Accounts receivable retainage, net |
32,071 |
|
|
30,189 |
|
||
Costs and estimated earnings in excess of billings |
179,474 |
|
|
185,960 |
|
||
Inventory, net |
8,527 |
|
|
8,575 |
|
||
Prepaid expenses and other current assets |
26,753 |
|
|
26,854 |
|
||
Income tax receivable |
5,446 |
|
|
9,803 |
|
||
Project development costs |
14,573 |
|
|
15,839 |
|
||
Total current assets |
485,779 |
|
|
490,715 |
|
||
Federal ESPC receivable |
459,347 |
|
|
396,725 |
|
||
Property and equipment, net |
8,804 |
|
|
8,982 |
|
||
Energy assets, net |
765,122 |
|
|
729,378 |
|
||
Goodwill |
58,812 |
|
|
58,714 |
|
||
Intangible assets, net |
847 |
|
|
927 |
|
||
Operating lease assets |
41,484 |
|
|
39,151 |
|
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Restricted cash, non-current portion |
10,507 |
|
|
10,352 |
|
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Other assets |
18,047 |
|
|
15,307 |
|
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Total assets |
$ |
1,848,749 |
|
|
$ |
1,750,251 |
|
|
|
|
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LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND STOCKHOLDERS' EQUITY |
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Current liabilities: |
|
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Current portion of long-term debt and financing lease liabilities |
$ |
71,770 |
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|
$ |
69,362 |
|
Accounts payable |
202,123 |
|
|
230,916 |
|
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Accrued expenses and other current liabilities |
40,297 |
|
|
41,748 |
|
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Current portion of operating lease liabilities |
5,680 |
|
|
6,106 |
|
||
Billings in excess of cost and estimated earnings |
30,211 |
|
|
33,984 |
|
||
Income taxes payable |
1,501 |
|
|
981 |
|
||
Total current liabilities |
351,582 |
|
|
383,097 |
|
||
Long-term debt and financing lease liabilities, net of current portion and deferred financing fees |
268,411 |
|
|
311,674 |
|
||
Federal ESPC liabilities |
473,882 |
|
|
440,223 |
|
||
Deferred income taxes, net |
4,474 |
|
|
2,363 |
|
||
Deferred grant income |
8,167 |
|
|
8,271 |
|
||
Long-term portions of operating lease liabilities, net of current |
37,718 |
|
|
35,300 |
|
||
Other liabilities |
35,992 |
|
|
37,660 |
|
||
Redeemable non-controlling interests, net |
39,668 |
|
|
38,850 |
|
||
|
|
|
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Stockholders' equity: |
|
|
|
||||
Preferred stock, |
$ |
— |
|
|
$ |
— |
|
Class A common stock, |
3 |
|
|
3 |
|
||
Class B common stock, |
2 |
|
|
2 |
|
||
Additional paid-in capital |
267,864 |
|
|
145,496 |
|
||
Retained earnings |
379,533 |
|
|
368,390 |
|
||
Accumulated other comprehensive loss, net |
(6,759 |
) |
|
(9,290 |
) |
||
Treasury stock, at cost, 2,101,795 shares at March 31, 2021 and December 31, 2020 |
(11,788 |
) |
|
(11,788 |
) |
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Total stockholders’ equity |
628,855 |
|
|
492,813 |
|
||
Total liabilities, redeemable non-controlling interests and stockholders' equity |
$ |
1,848,749 |
|
|
$ |
1,750,251 |
|
AMERESCO, INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
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(In thousands, except per share amounts) (Unaudited) |
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Three Months Ended March 31, |
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|
2021 |
|
2020 |
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Revenues |
$ |
252,202 |
|
|
$ |
212,413 |
|
Cost of revenues |
205,293 |
|
|
173,967 |
|
||
Gross profit |
46,909 |
|
|
38,446 |
|
||
Selling, general and administrative expenses |
28,601 |
|
|
28,924 |
|
||
Operating income |
18,308 |
|
|
9,522 |
|
||
Other expenses, net |
3,672 |
|
|
5,389 |
|
||
Income before income taxes |
14,636 |
|
|
4,133 |
|
||
Income tax provision (benefit) |
2,205 |
|
|
(2,503 |
) |
||
Net income |
12,431 |
|
|
6,636 |
|
||
Net income attributable to redeemable non-controlling interests |
(1,257 |
) |
|
(435 |
) |
||
Net income attributable to common shareholders |
$ |
11,174 |
|
|
$ |
6,201 |
|
Net income per share attributable to common shareholders: |
|
|
|
||||
Basic |
$ |
0.23 |
|
|
$ |
0.13 |
|
Diluted |
$ |
0.22 |
|
|
$ |
0.13 |
|
Weighted average common shares outstanding: |
|
|
|
||||
Basic |
48,975 |
|
|
47,384 |
|
||
Diluted |
50,357 |
|
|
48,497 |
|
||
AMERESCO, INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(In thousands) (Unaudited) |
|||||||
|
Three Months Ended March 31, |
||||||
|
2021 |
|
2020 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
12,431 |
|
|
$ |
6,636 |
|
Adjustments to reconcile net income to cash flows from operating activities: |
|
|
|
||||
Depreciation of energy assets, net |
9,686 |
|
|
9,299 |
|
||
Depreciation of property and equipment |
833 |
|
|
833 |
|
||
Accretion of ARO liabilities |
24 |
|
|
21 |
|
||
Amortization of debt discount and debt issuance costs |
747 |
|
|
660 |
|
||
Amortization of intangible assets |
80 |
|
|
179 |
|
||
Provision for bad debts |
3 |
|
|
49 |
|
||
Net gain from derivatives |
(377 |
) |
|
(223 |
) |
||
Stock-based compensation expense |
766 |
|
|
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FAQ
What were Ameresco's Q1 2021 financial results for AMRC?
Ameresco reported Q1 2021 total revenue of $252.2 million, a 19% year-over-year increase, with net income rising 80% to $11.2 million.
How much did Ameresco raise in its recent public equity offering?
Ameresco raised over $120 million in its first public equity offering since 2010.
What is Ameresco's current project backlog status?
As of March 31, 2021, Ameresco's total project backlog amounts to $2.3 billion.
What is the GAAP EPS reported by Ameresco for Q1 2021?
Ameresco reported a GAAP EPS of $0.22 for Q1 2021, an increase of 69% year-over-year.
What business areas contributed to Ameresco's revenue growth?
Ameresco's revenue growth was led by the Projects business, which experienced a 25% increase, especially in the Federal sector, and an 18% increase in Energy Assets.
Ameresco, Inc.
NYSE:AMRCAMRC RankingsAMRC Latest NewsAMRC Stock Data
1.37B
31.93M
7.16%
100.14%
6.62%
Engineering & Construction
Construction - Special Trade Contractors
United States of America
FRAMINGHAM
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