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 www.ameresco.com.

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 www.ameresco.com. 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: https://www.theconferencingservice.com/prereg/key.process?key=PTL74X3RY. 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 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; 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.

AMERESCO, INC.

CONSOLIDATED BALANCE SHEETS

March 31,

December 31,

2013

2012

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

20,963,260

$

63,347,645

Restricted cash

25,749,304

26,358,908

Accounts receivable, net

88,298,744

84,124,627

Accounts receivable retainage

22,151,086

23,197,784

Costs and estimated earnings in excess of billings

43,528,591

62,096,284

Inventory, net

11,494,463

9,502,289

Prepaid expenses and other current assets

8,639,804

9,600,619

Income tax receivable

6,586,390

5,385,242

Deferred income taxes

6,254,639

5,190,718

Project development costs

10,684,119

9,038,725

Total current assets

244,350,400

297,842,841

Federal ESPC receivable

92,979,544

91,854,808

Property and equipment, net

9,735,841

9,387,218

Project assets, net

214,349,626

207,274,982

Deferred financing fees, net

5,943,326

5,746,177

Goodwill

50,379,564

48,968,390

Intangible assets, net

9,423,283

9,742,878

Other assets

3,731,411

4,654,709

386,542,595

377,629,162

$

630,892,995

$

675,472,003

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Current portion of long-term debt

$

10,742,963

$

12,452,678

Accounts payable

66,404,098

101,007,455

Accrued expenses and other current liabilities

9,540,592

13,157,024

Billings in excess of cost and estimated earnings

23,200,163

22,271,655

Total current liabilities

109,887,816

148,888,812

Long-term debt, less current portion

197,670,955

201,922,172

Deferred income taxes

25,593,697

24,888,229

Deferred grant income

7,892,402

7,590,730

Other liabilities

28,380,724

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, 2012

3,227

3,202

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, 2012

1,800

1,800

Additional paid-in capital

94,806,437

93,141,432

Retained earnings

175,245,645

177,169,717

Accumulated other comprehensive income

685,747

713,194

Non-controlling interest

(92,884

)

(27,583

)

Less - treasury stock, at cost, 4,833,284 shares

(9,182,571

)

(9,182,571

)

Total stockholders' equity

261,467,401

261,819,191

$

630,892,995

$

675,472,003

AMERESCO, INC.

CONSOLIDATED STATEMENTS OF (LOSS) INCOME

Three Months Ended March 31,

2013

2012

(Unaudited)

(Unaudited and
Restated)

Revenue:

Energy efficiency revenue

$

69,820,479

$

113,382,670

Renewable energy revenue

40,315,044

33,190,699

110,135,523

146,573,369

Direct expenses:

Energy efficiency expenses

55,455,258

89,619,775

Renewable energy expenses

33,161,394

27,729,784

88,616,652

117,349,559

Gross profit

21,518,871

29,223,810

Operating expenses:

Salaries and benefits

11,013,301

14,369,212

Project development costs

4,281,165

4,216,352

General, administrative and other

8,306,902

7,213,456

23,601,368

25,799,020

Operating (loss) income

(2,082,497

)

3,424,790

Other expenses, net

464,313

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:

Basic

$

(0.04

)

$

0.04

Diluted

$

(0.04

)

$

0.04

Weighted average common shares outstanding:

Basic

45,327,237

44,145,093

Diluted

46,220,748

46,128,417

OTHER NON-GAAP DISCLOSURES

Gross margins:

Energy efficiency revenue

20.6

%

21.0

%

Renewable energy revenue

17.7

%

16.5

%

Total

19.5

%

19.9

%

Operating expenses as a percent of revenue

21.4

%

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 assets

5,698,018

4,939,247

Stock-based compensation

671,101

781,453

Adjusted EBITDA

$

4,286,622

$

9,145,490

Adjusted EBITDA margin

3.9

%

6.2

%

Construction backlog:

Awarded

$

1,164,907,290

$

871,462,874

Fully-contracted

343,828,596

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.

AMERESCO, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended March 31,

2013

2012

(Unaudited)

(Unaudited
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 assets

4,010,435

2,605,030

Depreciation of property and equipment

796,546

677,973

Amortization of deferred financing fees

84,148

133,287

Amortization of intangible assets

891,037

1,656,244

Provision for bad debts

42,339

53,636

Unrealized gain on interest rate swap

(389,087

)

(229,866

)

Stock-based compensation expense

671,101

781,453

Deferred income taxes

(1,049,325

)

(550,328

)