Ameresco to Report 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
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 http://www.ameresco.com.
“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.
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