Additional First Quarter 2012 Operating Highlights:
- Revenue generated from backlog was $103.3 million for the first quarter of 2012, a decrease of 13% year-over-year.
- All other revenue was $43.2 million for the first quarter of 2012, an increase of 54% year-over-year.
- Total construction backlog was $1.28 billion as of March 31, 2012 and consisted of:
- $412.7 million of fully-contracted backlog, which represents signed customer contracts for installation or construction of projects that are expected to convert into revenue over the next 12-24 months, on average; and
- $871.5 million of awarded projects, which represents estimated future revenue for projects for which contracts are expected to be signed over the next 6-12 months, on average.
About Ameresco, Inc.
Founded in 2000, Ameresco, Inc. (NYSE:AMRC) is a leading independent provider of comprehensive services, energy efficiency, infrastructure upgrades, 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 62 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 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 Ameresco does on projects where it recognizes revenue on a percentage of completion basis, including the ability to perform under recently signed contracts without unusual delay; demand for Ameresco’s energy efficiency and renewable energy solutions; the Company’s ability to arrange financing for its 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 its products and services; a customer’s decision to delay the Company’s 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 Ameresco’s Annual Report on Form 10-K for the year ended December 31, 2011, filed with the U.S. Securities and Exchange Commission on March 15, 2012. In addition, the forward-looking statements included in this press release represent Ameresco’s views as of the date of this press release. Ameresco anticipates that subsequent events and developments will cause its views to change. However, while Ameresco may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Ameresco’s views as of any date subsequent to the date of this press release.AMERESCO, INC. | |||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||
December 31, | March 31, | ||||||||
2011 | 2012 | ||||||||
(Unaudited) | |||||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 26,277,366 | $ | 38,435,362 | |||||
Restricted cash | 12,372,356 | 12,587,427 | |||||||
Accounts receivable, net | 109,296,773 | 84,952,455 | |||||||
Accounts receivable retainage | 26,089,216 | 20,539,058 | |||||||
Costs and estimated earnings in excess of billings | 69,251,022 | 51,524,518 | |||||||
Inventory, net | 8,635,633 | 8,776,498 | |||||||
Prepaid expenses and other current assets | 8,992,963 | 6,183,681 | |||||||
Income tax receivable | 9,662,771 | 10,287,965 | |||||||
Deferred income taxes | 6,456,671 | 6,456,671 | |||||||
Project development costs | 6,027,689 | 6,860,433 | |||||||
Total current assets | 283,062,460 | 246,604,068 | |||||||
Federal ESPC receivable | 110,212,186 | 124,282,323 | |||||||
Property and equipment, net | 7,086,164 | 7,695,397 | |||||||
Project assets, net | 177,854,734 | 181,531,005 | |||||||
Deferred financing fees, net | 2,994,692 | 2,881,730 | |||||||
Goodwill | 47,881,346 | 47,922,855 | |||||||
Intangible assets, net | 12,727,528 | 11,071,284 | |||||||
Other assets | 3,778,357 | 3,989,931 | |||||||
362,535,007 | 379,374,525 | ||||||||
$ | 645,597,467 | $ | 625,978,593 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
Current liabilities: | |||||||||
Current portion of long-term debt | $ | 11,563,983 | $ | 12,370,976 | |||||
Accounts payable | 93,506,089 | 71,419,981 | |||||||
Accrued expenses and other current liabilities | 8,917,723 | 10,755,461 | |||||||
Book overdraft | 7,297,122 | - | |||||||
Billings in excess of cost and estimated earnings | 26,982,858 | 27,947,000 | |||||||
Total current liabilities | 148,267,775 | 122,493,418 | |||||||
Long-term debt, less current portion | 196,401,588 | 197,284,536 | |||||||
Deferred income taxes | 29,953,103 | 29,402,775 | |||||||
Deferred grant income | 6,024,099 | 5,938,793 | |||||||
Other liabilities | 28,529,867 | 28,138,625 | |||||||
260,908,657 | 260,764,729 | ||||||||
Stockholders’ equity: | |||||||||
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, no shares issued | |||||||||
and outstanding at December 31, 2011 and March 31, 2012 | - | - | |||||||
Class A common stock, $0.0001 par value, 500,000,000 shares authorized, | |||||||||
30,713,837 shares issued and 25,880,553 outstanding at December | |||||||||
31, 2011; 31,251,858 shares issued and 26,418,574 outstanding | |||||||||
at March 31, 2012 | 3,071 | 3,125 | |||||||
Class B common stock, $0.0001 par value, 144,000,000 shares authorized, | |||||||||
18,000,000 shares issued and outstanding at December 31, 2011 | |||||||||
and March 31, 2012 | 1,800 | 1,800 | |||||||
Additional paid-in capital | 86,067,852 | 89,115,280 | |||||||
Retained earnings | 161,335,621 | 162,840,919 | |||||||
Accumulated other comprehensive loss | (1,868,352 | ) | (129,421 | ) | |||||
Minority interest | 63,614 | 71,314 | |||||||
Less – treasury stock, at cost, 4,833,284 shares, respectively | (9,182,571 | ) | (9,182,571 | ) | |||||
Total stockholders’ equity | 236,421,035 | 242,720,446 | |||||||
$ | 645,597,467 | $ | 625,978,593 |
AMERESCO, INC. | |||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||
Three Months Ended March 31, | |||||||||
2011 | 2012 | ||||||||
(Unaudited) | |||||||||
Revenue: | |||||||||
Energy efficiency revenue | $ | 106,193,265 | $ | 113,382,670 | |||||
Renewable energy revenue | 40,226,504 | 33,190,699 | |||||||
146,419,769 | 146,573,369 | ||||||||
Direct expenses: | |||||||||
Energy efficiency expenses | 86,361,423 | 89,619,775 | |||||||
Renewable energy expenses | 32,075,313 | 27,729,784 | |||||||
118,436,736 | 117,349,559 | ||||||||
27,983,033 | 29,223,810 | ||||||||
Operating expenses: | |||||||||
Salaries and benefits | 10,084,732 | 14,369,212 | |||||||
Project development costs | 4,401,577 | 4,216,352 | |||||||
General, administrative and other | 5,193,334 | 7,213,456 | |||||||
19,679,643 | 25,799,020 | ||||||||
Operating income | 8,303,390 | 3,424,790 | |||||||
Other expenses, net | (900,437 | ) | (1,337,605 | ) | |||||
Income before provision for income taxes | 7,402,953 | 2,087,185 | |||||||
Income tax provision | (2,114,668 | ) | (581,887 | ) | |||||
Net income | 5,288,285 | 1,505,298 | |||||||
Net income per share attributable to common shareholders: | |||||||||
Basic | $ | 0.13 | $ | 0.03 | |||||
Diluted | $ | 0.12 | $ | 0.03 | |||||
Weighted average common shares outstanding: | |||||||||
Basic | 41,322,276 | 44,145,093 | |||||||
Diluted | 45,823,090 | 46,128,417 | |||||||
OTHER NON-GAAP DISCLOSURES | |||||||||
Gross margins: | |||||||||
Energy efficiency revenue | 18.7 | % | 21.0 | % | |||||
Renewable energy revenue | 20.3 | % | 16.5 | % | |||||
Total | 19.1 | % | 19.9 | % | |||||
Operating expenses as a percent of revenue | 13.4 | % | 17.6 | % | |||||
Earnings before interest, taxes, depreciation and amortization (EBITDA): | |||||||||
Operating income | $ | 8,303,390 | $ | 3,424,790 | |||||
Depreciation and amortization | 2,682,401 | 4,939,247 | |||||||
Stock-based compensation | 859,050 | 781,453 | |||||||
EBITDA | $ | 11,844,841 | $ | 9,145,490 | |||||
EBITDA margin | 8.1 | % | 6.2 | % | |||||
Construction backlog: | |||||||||
Awarded | $ | 577,192,000 | $ | 871,462,874 | |||||
Fully-contracted | 588,661,000 | 412,676,044 | |||||||
Total construction backlog | $ | 1,165,853,000 | $ | 1,284,138,918 | |||||
AMERESCO, INC. | |||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
Three Months Ended March 31, | |||||||||
2011 | 2012 | ||||||||
(Unaudited) | |||||||||
Cash flows from operating activities: | |||||||||
Net income | $ | 5,288,285 | $ | 1,505,298 | |||||
Adjustment to reconcile net income to cash (used in) provided | |||||||||
by operating activities: | |||||||||
Depreciation of project assets | 2,210,612 | 2,605,030 | |||||||
Depreciation of property and equipment | 471,789 | 677,973 | |||||||
Amortization of deferred financing fees | 110,833 | 133,287 | |||||||
Amortization of intangible assets | - | 1,656,244 | |||||||
Provision for bad debts | 24,186 | 53,636 | |||||||
Stock-based compensation expense | 859,050 | 781,453 | |||||||
Deferred income taxes | 2,692,134 | (550,328 | ) | ||||||
Excess tax benefits from stock-based compensation arrangements | (391,297 | ) | (1,202,597 | ) | |||||
Changes in operating assets and liabilities: | |||||||||
(Increase) decrease in: | |||||||||
Restricted cash draws | 40,912,909 | 10,082,814 | |||||||
Accounts receivable | (7,620,850 | ) | 24,537,183 | ||||||
Accounts receivable retainage | 1,439,552 | 5,692,808 | |||||||
Federal ESPC receivable financing | (36,506,536 | ) | (14,070,137 | ) | |||||
Inventory | (1,633,214 | ) | (140,865 | ) | |||||
Costs and estimated earnings in excess of billings | (6,143,202 | ) | 17,780,552 | ||||||
Prepaid expenses and other current assets | (21,209 | ) | 2,825,403 | ||||||
Project development costs | 921,076 | (831,959 | ) | ||||||
Other assets | 619,317 | (174,600 | ) | ||||||
Increase (decrease) in: | |||||||||
Accounts payable, accrued expenses and other liabilities | (23,204,150 | ) | (20,527,498 | ) | |||||
Billings in excess of cost and estimated earnings | (4,546,509 | ) | 897,751 | ||||||
Other liabilities | 4,342,540 | 870,642 | |||||||
Income taxes payable | (5,446,587 | ) | 606,671 | ||||||
Net cash (used in) provided by operating activities | (25,621,271 | ) | 33,208,761 | ||||||
Cash flows from investing activities: | |||||||||
Purchases of property and equipment | (895,230 | ) | (1,276,533 | ) | |||||
Purchases of project assets | (6,591,203 | ) | (10,002,946 | ) | |||||
Grant awards and rebates received on project assets | 6,695,711 | 3,838,766 | |||||||
Net cash used in investing activities | (790,722 | ) | (7,440,713 | ) | |||||
Cash flows from financing activities: | |||||||||
Excess tax benefits from stock-based compensation arrangements | 391,297 | 1,202,597 | |||||||
Book overdraft | - | (7,297,122 | ) | ||||||
Payments of financing fees | (50,589 | ) | (20,325 | ) | |||||
Proceeds from exercises of options | 1,416,091 | 1,063,432 | |||||||
Proceeds from (payments on) senior secured credit facility | 5,000,000 | (6,428,571 | ) | ||||||
Proceeds from long-term debt financing | 5,500,089 | - | |||||||
Minority interest | - | 7,700 | |||||||
Restricted cash | (587,567 | ) | (1,430,592 | ) | |||||
Payments on long-term debt | (911,878 | ) | (807,464 | ) | |||||
Net cash provided by (used in) financing activities | 10,757,443 | (13,710,345 | ) | ||||||
Effect of exchange rate changes on cash | 313,165 | 100,293 | |||||||
Net (decrease) increase in cash and cash equivalents | (15,341,385 | ) | 12,157,996 | ||||||
Cash and cash equivalents, beginning of year | 44,691,021 | 26,277,366 | |||||||
Cash and cash equivalents, end of period | $ | 29,349,636 | $ | 38,435,362 |
The Company believes adjusted EBITDA is useful to investors in evaluating its 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 Ameresco’s adjusted EBITDA in different historical periods, investors can evaluate its operating results without the additional variations of depreciation and amortization expense, and share-based compensation expense.
Ameresco’s management uses adjusted EBITDA as a measure of operating performance, because it does not include the impact of items that management does not consider indicative of our core operating performance; for planning purposes, including the preparation of the annual operating budget; to allocate resources to enhance the financial performance of the business; to evaluate the effectiveness of Ameresco’s business strategies; and in communications with the board of directors and investors concerning Ameresco’s financial performance. The Company understands that, although measures similar to adjusted EBITDA are frequently used by investors and securities analysts in their evaluation of companies, adjusted EBITDA has limitations as an analytical tool, and investors should not consider it in isolation or as a substitute for GAAP operating income or an analysis of Ameresco’s results of operations as reported under GAAP. Some of these limitations are: adjusted EBITDA does not reflect the Company’s cash expenditures or future requirements for capital expenditures or other contractual commitments; adjusted EBITDA does not reflect changes in, or cash requirements for, Ameresco’s working capital needs; adjusted EBITDA does not reflect stock-based compensation expense; adjusted EBITDA does not reflect cash requirements for income taxes; adjusted EBITDA does not reflect net interest income (expense); although depreciation, amortization and impairment are non-cash charges, the assets being depreciated, amortized or impaired will often have to be replaced in the future, and adjusted EBITDA does not reflect any cash requirements for these replacements; and other companies in Ameresco’s industry may calculate adjusted EBITDA differently than it does, limiting its usefulness as a comparative measure.To properly and prudently evaluate Ameresco’s business, the Company encourages investors to review its GAAP financial statements included above, and not to rely on any single financial measure to evaluate the business. Please refer to the above reconciliation of adjusted EBITDA to operating income, the most directly comparable GAAP measure.