Ameresco Reports First Quarter 2013 Financial Results

Ameresco Reports First Quarter 2013 Financial Results

  • First quarter revenue of $110.1 million
  • First quarter net loss of $1.9 million
  • First quarter net loss per diluted share of $0.04

FRAMINGHAM, Mass.--(BUSINESS WIRE)-- Ameresco, Inc. (NYS: AMRC) , a leading energy efficiency and renewable energy company, today announced financial results for the first quarter ended March 31, 2013. 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

Total revenue for the first quarter of 2013 decreased to $110.1 million from $146.6 million, or 25%, for the same period in 2012. First quarter operating income decreased from $3.4 million for 2012 to an operating loss of $2.1 million for 2013. First quarter adjusted EBITDA, a non-GAAP financial measure, decreased from $9.1 million for 2012 to $4.3 million for 2013. First quarter net income decreased from $1.7 million for 2012 to a net loss of $1.9 million for 2013. First quarter 2013 net loss per diluted share was $0.04, compared to net income per diluted share of $0.04 for 2012.

"We had anticipated a more challenging quarter than the typical first quarter seasonality of our business. While revenue was below our expectations, stronger than expected gross profit led to bottom line results ahead of plan," stated George P. Sakellaris, President and Chief Executive Officer of Ameresco. "We remain encouraged by the continued demand for our energy efficiency solutions as evidenced by an increase in total construction backlog in the first quarter, driven by a 34% year-over-year improvement in awarded projects. We are reaffirming our 2013 guidance based upon our current expectations for revenue growth and profitability in the second half of the year."

Additional First Quarter 2013 Operating Highlights:

  • Revenue generated from backlog was $65.4 million for the first quarter of 2013, a decrease of 37% year-over-year.
  • All other revenue was $44.7 million for the first quarter of 2013, an increase of 3% year-over-year.
  • Total construction backlog was $1.51 billion as of March 31, 2013 and consisted of:
    • $343.8 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
    • $1,164.9 million of awarded projects, representing projects in development for which we do not have signed contracts. Historically, awarded projects have converted to signed contracts over 6-12 months on average. However, we have been experiencing an unusually sustained lengthening of conversion times of awarded projects to signed contracts, a trend we expect to continue.

FY 2013 Guidance

Ameresco is reaffirming our guidance for the fiscal year ending December 31, 2013. We continue to expect to earn total revenue in the range of $620 million to $670 million. We also expect net income for 2013 to be in the range of $18 million to $22 million. Our 2013 guidance is based upon the following assumptions: a challenging first half of 2013; that a seasoned backlog along with a continued focus on converting awarded projects to signed contracts begins to yield results later in the second quarter; a more meaningful improvement in fully-contracted backlog in the second half of 2013; modest to strong revenue growth within a few regions; a gradual improvement in market conditions; 10% year-over-year revenue growth from our all other offerings; and maintaining operating expenses at the current run rate.

Webcast Reminder

Ameresco will hold its earnings conference call today, May 9, 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 first quarter 2013 results, business outlook and strategy. Participants may access it by dialing domestically 888.713.4214 or internationally 617.213.4866. The passcode is 68829544. Participants are advised to dial into the call at least ten minutes prior to the call 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 If you are unable to listen to the live call, the webcast will be archived on the Company's website shortly after the call and be available for one year.

Pre-Registration for the call is also available at: Pre-registrants will be issued a pin number to use when dialing into the live call which will provide faster 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.

Prior Period Financial Results

Certain prior period financial information included in this press release and the accompanying tables have been revised from amounts previously reported to reflect our previously reported restatement. See note 2 to our consolidated financial statements included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 18, 2013 for further discussion.

About Ameresco, Inc.

Founded in 2000, Ameresco, Inc. (NYS: AMRC) is a leading independent provider of comprehensive services, energy efficiency, infrastructure upgrades, asset sustainability 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 66 offices in 34 states and five Canadian provinces. Ameresco has more than 900 employees. 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; 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, 2012, filed with the U.S. Securities and Exchange Commission on March 18, 2013. 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.

  March 31,  December 31,
Current assets:
Cash and cash equivalents$20,963,260$63,347,645
Restricted cash25,749,30426,358,908
Accounts receivable, net88,298,74484,124,627
Accounts receivable retainage22,151,08623,197,784
Costs and estimated earnings in excess of billings43,528,59162,096,284
Inventory, net11,494,4639,502,289
Prepaid expenses and other current assets8,639,8049,600,619
Income tax receivable6,586,3905,385,242
Deferred income taxes6,254,6395,190,718
Project development costs10,684,119 9,038,725 
Total current assets244,350,400 297,842,841 
Federal ESPC receivable92,979,54491,854,808
Property and equipment, net9,735,8419,387,218
Project assets, net214,349,626207,274,982
Deferred financing fees, net5,943,3265,746,177
Intangible assets, net9,423,2839,742,878
Other assets3,731,411 4,654,709 
386,542,595 377,629,162 
$630,892,995 $675,472,003 
Current liabilities:
Current portion of long-term debt$10,742,963$12,452,678
Accounts payable66,404,098101,007,455
Accrued expenses and other current liabilities9,540,59213,157,024
Billings in excess of cost and estimated earnings23,200,163 22,271,655 
Total current liabilities109,887,816 148,888,812 
Long-term debt, less current portion197,670,955201,922,172
Deferred income taxes25,593,69724,888,229
Deferred grant income7,892,4027,590,730
Other liabilities28,380,724 30,362,869 
$259,537,778 $264,764,000 


Stockholders' equity:
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, no shares issued and outstanding at March 31, 2013 and December 31, 2012$$
Class A common stock, $0.0001 par value, 500,000,000 shares authorized, 32,267,938 shares issued and 27,434,654 outstanding at March 31, 2013, 32,019,982 shares issued and 27,186,698 outstanding at December 31, 20123,2273,202
Class B common stock, $0.0001 par value, 144,000,000 shares authorized, 18,000,000 shares issued and outstanding at March 31, 2013 and December 31, 20121,8001,800
Additional paid-in capital94,806,43793,141,432
Retained earnings175,245,645177,169,717
Accumulated other comprehensive income685,747713,194
Non-controlling interest(92,884)(27,583)
Less - treasury stock, at cost, 4,833,284 shares(9,182,571)(9,182,571)
Total stockholders' equity261,467,401 261,819,191 
$630,892,995 $675,472,003 



Three Months Ended March 31,
2013  2012

(Unaudited and

Energy efficiency revenue$69,820,479$113,382,670
Renewable energy revenue40,315,044 33,190,699 
110,135,523 146,573,369 
Direct expenses:
Energy efficiency expenses55,455,25889,619,775
Renewable energy expenses33,161,394 27,729,784 
88,616,652 117,349,559 
Gross profit21,518,871 29,223,810 
Operating expenses:
Salaries and benefits11,013,30114,369,212
Project development costs4,281,1654,216,352
General, administrative and other8,306,902 7,213,456 
23,601,368 25,799,020 
Operating (loss) income(2,082,497)3,424,790 
Other expenses, net464,313 1,107,739 
(Loss) income before (benefit) provision for income taxes(2,546,810)2,317,051
Income tax (benefit) provision(622,738)581,887 
Net (loss) income$(1,924,072)$1,735,164 
Net (loss) income per share attributable to common shareholders:
Weighted average common shares outstanding:
Gross margins:
Energy efficiency revenue20.6%21.0%
Renewable energy revenue17.7%16.5%
Operating expenses as a percent of revenue21.4%17.6%
Adjusted Earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA):
Operating (loss) income$(2,082,497)$3,424,790
Depreciation and amortization of intangible assets5,698,0184,939,247
Stock-based compensation671,101 781,453 
Adjusted EBITDA$4,286,622 $9,145,490 
Adjusted EBITDA margin3.9%6.2%
Construction backlog:
Fully-contracted343,828,596 412,676,044 
Total construction backlog$1,508,735,886 $1,284,138,918 

Note: Awarded represents estimated future revenues from projects that have been awarded, though the contracts have not yet been signed.

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Three Months Ended March 31,
2013  2012

and Restated)

Cash flows from operating activities:
Net (loss) income$(1,924,072)$1,735,164
Adjustments to reconcile net (loss) income to cash (used in) provided by operating activities:
Depreciation of project assets4,010,4352,605,030
Depreciation of property and equipment796,546677,973
Amortization of deferred financing fees84,148133,287
Amortization of intangible assets891,0371,656,244
Provision for bad debts42,33953,636
Unrealized gain on interest rate swap(389,087)(229,866)
Stock-based compensation expense671,101781,453
Deferred income taxes(1,049,325)(550,328)