- Robust Revenue and Profit Growth Across
all Business Lines - - Gross Margin Improvement Driven by
Recurring Revenue Growth - - Placed 33 MWe of Energy Assets
into Operation -
Second Quarter 2021 Financial Highlights:
- Revenues of $273.9 million, up 23% year-over-year
- Net Income of $13.7 million, up 213%
- GAAP EPS of $0.26, up 189%
- Non-GAAP EPS of $0.34, up 79%
- Adjusted EBITDA of $34.4 million, up 42%
Ameresco, Inc. (NYSE:AMRC), a leading cleantech
integrator specializing in energy efficiency and renewable energy,
today announced financial results for the fiscal quarter ended June
30, 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.
“We are very pleased with our strong second quarter results.
These results highlight the strength of our diversified business
model as all business lines experienced outstanding growth,” said
George P. Sakellaris, President and Chief Executive Officer. “We
grew our portfolio of operating Energy Assets by 33 megawatt
equivalents (MWe) during the quarter, continuing the expansion of
this higher margin, recurring revenue business, which provides
great long-term visibility. Our Projects business continued to
benefit from the ongoing shift to more comprehensive projects that
utilize a broad portfolio of advanced clean energy technologies in
which Ameresco has substantial expertise providing us a competitive
advantage. We also are gaining traction in our Energy-as-a-Service
(EaaS) offering. Our recent EaaS win at Northwestern University
highlights the growing interest in these “no up-front capital”
solutions that address deferred maintenance, escalating energy
costs, resiliency and customer commitments to lowering their carbon
footprints. We are all seeing a heightened awareness of the
importance of resiliency and sustainability across all markets, and
we believe this is not only impacting our business in the
short-term, but that it is paving the way for outstanding long-term
growth.”
Second Quarter Financial Results
(All financial result comparisons made are against the prior
year period unless otherwise noted.)
Total revenue increased 23% to $273.9 million, compared to
$223.0 million driven by broad strength across all our business
lines. The Projects business grew 23%, with contributions across a
number of geographies and markets. Energy Assets revenue was up
28%, reflecting the continued growth of our operating portfolio.
Additionally, we continued to benefit from strong renewable natural
gas (RNG) production and favorable pricing on renewable
identification numbers (RINs). Ameresco added 33 MWe of assets to
its operating portfolio in the second quarter while adding 23 MWe
of new Energy Assets into our Assets in Development. Gross margin
of 19.5% increased 90 basis-points sequentially and 180
basis-points year-over-year as revenue mix continued to shift
towards the Company’s higher margin Energy Assets business.
Operating income increased 66% to $21.4 million and operating
margin was 7.8%. Net income attributable to common shareholders
increased to $13.7 million and GAAP EPS increased to $0.26. The
GAAP results for 2021 and 2020 reflect a non-cash downward
adjustment of $4.2 million and $4.5 million, respectively, related
to non-controlling interest activities. Excluding these
adjustments, 2021 Non-GAAP net income was $18.0 million compared to
$9.0 million. Adjusted EBITDA, a Non-GAAP financial measure,
increased 42% to $34.4 million, and Non-GAAP EPS was $0.34 compared
to $0.19.
(in millions)
2Q 2021
2Q 2020
Revenue
Net Income
Adj. EBITDA
Revenue
Net Income (Loss)
Adj. EBITDA
Projects
$196.3
$10.4
$11.3
$159.9
$4.5
$6.5
Energy Assets
$36.9
$1.1
$20.3
$28.7
$(0.7)
$15.6
O&M
$19.6
$1.9
$2.4
$17.3
$1.0
$1.9
Other
$21.1
$0.2
$0.3
$17.0
$(0.4)
$0.2
Total (1)
$273.9
$13.7
$34.4
$223.0
$4.4
$24.1
(1) Numbers in table may not foot due to
rounding.
(in millions)
At June 30, 2021
Awarded Project Backlog
$1,430
Contracted Project Backlog
$781
Total Project Backlog
$2,211
O&M Revenue Backlog
$1,121
Energy Asset Visibility *
$1,016
Operating Energy Assets
315 MWe
Assets in Development
376 MWe
* estimated contracted revenue and
incentives throughout PPA term on our operating energy assets
Project Highlights
In the second quarter of 2021:
- Our Federal Solutions Group added three new contracts:
- $21.6 million project at Fort Hunter Liggett in southern
Monterey County, CA that will bolster the Army base's work toward
its goal of reaching net-zero energy use by 2022.
- $19 million Energy Savings Performance Contract (ESPC) with
Cannon Air Force Base (AFB) in Curry County, New Mexico to enhance
the AFB’s operational efficiency and provide on-site energy
generation.
- $29 million Design Build project at Fort Totten in Bayside, New
York, for a full facility revitalization.
- Our EaaS offering in the higher education market continues to
gain traction with the recent signing of an EaaS agreement with
Northwestern University. This partnership will provide ongoing
energy management, capital improvements, and related operations and
maintenance – all under a long-term service agreement.
Asset Highlights
In the second quarter of 2021:
- Ameresco brought 33 MWe into operation while adding 23 MWe
(gross) to our development backlog, bringing our total to 376
MWe.
- Projects placed in operation during the quarter included the
11.7 MWe McCarty Road RNG asset as well as four solar installations
totaling 19 MWe.
Summary and Outlook
“Our strong second quarter performance represented excellent
execution and demonstrated the substantial demand for Ameresco’s
energy efficiency and renewable energy services. Total project
backlog was stable at $2.2 billion while our 12-month contract
backlog also remained at a healthy level of $606.5 million.
Subsequent to the end of the second quarter, we converted $98
million from awarded to contracted project backlog. Furthermore,
proposal activity for both our projects business and energy assets
opportunities are at record levels and support our confidence in
Ameresco’s future growth prospects,” Mr. Sakellaris noted.
Based on visibility from our project backlog and our increased
levels of recurring revenues, the Company reaffirms its 2021
guidance ranges detailed in the table below, representing
year-over-year revenue and adjusted EBITDA growth of 10% and 23%,
respectively, at the midpoints, and Non-GAAP EPS growth of 20% at
the midpoint, excluding the impact of approximately $0.13 of
one-time tax benefits realized in 2020. The Company anticipates
commissioning a further 22 MWe to 42 MWe of energy assets and plans
to invest approximately $115 million to $165 million in additional
energy asset capital expenditures during the remainder of 2021, the
majority of which will be funded with project finance debt.
FY 2021 Guidance
Ranges
Revenue
$1.11 billion
$1.16 billion
Gross Margin
18.5%
19.5%
Adjusted EBITDA
$140 million
$150 million
Interest Expense & Other
$20 million
$22 million
Effective Tax Rate
12%
18%
Non-GAAP EPS
$1.22
$1.30
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:
2779293)
- International Participants: Dial +1 (224) 357-2393 (Access
Code: 2779293)
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
Non-GAAP Financial Measures 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, net income, adjusted EBITDA, non-GAAP EPS, other
financial guidance 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 COVID-19 (and its variants)
pandemic 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 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.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except share
amounts)
June 30,
December 31,
2021
2020
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
58,807
$
66,422
Restricted cash
23,672
22,063
Accounts receivable, net
115,462
125,010
Accounts receivable retainage, net
36,485
30,189
Costs and estimated earnings in excess of
billings
195,027
185,960
Inventory, net
8,798
8,575
Prepaid expenses and other current
assets
25,389
26,854
Income tax receivable
5,688
9,803
Project development costs
14,508
15,839
Total current assets
483,836
490,715
Federal ESPC receivable
512,737
396,725
Property and equipment, net
8,826
8,982
Energy assets, net
798,609
729,378
Deferred income tax assets, net
3,972
3,864
Goodwill, net
58,901
58,714
Intangible assets, net
769
927
Operating lease assets
40,608
39,151
Restricted cash, non-current portion
11,363
10,352
Other assets
19,069
15,307
Total assets
$
1,938,690
$
1,754,115
LIABILITIES, REDEEMABLE NON-CONTROLLING
INTERESTS AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt and
financing lease liabilities
$
79,778
$
69,362
Accounts payable
193,373
230,916
Accrued expenses and other current
liabilities
40,108
41,748
Current portion of operating lease
liabilities
5,995
6,106
Billings in excess of cost and estimated
earnings
26,561
33,984
Income taxes payable
—
981
Total current liabilities
345,815
383,097
Long-term debt and financing lease
liabilities, net of current portion and deferred financing fees
305,351
311,674
Federal ESPC liabilities
506,680
440,223
Deferred income taxes, net
7,159
6,227
Deferred grant income
8,075
8,271
Long-term portions of operating lease
liabilities, net of current
36,731
35,300
Other liabilities
37,300
37,660
Commitments and contingencies
Redeemable non-controlling interests,
net
$
46,003
$
38,850
Stockholders' equity:
Preferred stock, $0.0001 par value,
5,000,000 shares authorized, no shares issued and outstanding at
June 30, 2021 and December 31, 2020
—
—
Class A common stock, $0.0001 par value,
500,000,000 shares authorized, 35,484,126 shares issued and
33,382,331 shares outstanding at June 30, 2021, 32,326,449 shares
issued and 30,224,654 shares outstanding at December 31, 2020
3
3
Class B common stock, $0.0001 par value,
144,000,000 shares authorized, 18,000,000 shares issued and
outstanding at June 30, 2021 and December 31, 2020
2
2
Additional paid-in capital
270,955
145,496
Retained earnings
393,158
368,390
Accumulated other comprehensive loss,
net
(6,754
)
(9,290
)
Treasury stock, at cost, 2,101,795 shares
at June 30, 2021 and December 31, 2020
(11,788
)
(11,788
)
Total stockholders’ equity
645,576
492,813
Total liabilities, redeemable
non-controlling interests and stockholders' equity
$
1,938,690
$
1,754,115
AMERESCO, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(In thousands, except per
share amounts) (Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Revenues
$
273,920
$
223,036
$
526,122
$
435,449
Cost of revenues
220,598
183,528
425,891
357,495
Gross profit
53,322
39,508
100,231
77,954
Selling, general and administrative
expenses
31,882
26,620
60,483
55,544
Operating income
21,440
12,888
39,748
22,410
Other expenses, net
5,450
4,052
9,122
9,441
Income before income taxes
15,990
8,836
30,626
12,969
Income tax (benefit) provision
(1,896
)
—
309
(2,503
)
Net income
17,886
8,836
30,317
15,472
Net income attributable to redeemable
non-controlling interests
(4,231
)
(4,471
)
(5,488
)
(4,906
)
Net income attributable to common
shareholders
$
13,655
$
4,365
$
24,829
$
10,566
Net income per share attributable to
common shareholders:
Basic
$
0.27
$
0.09
$
0.49
$
0.22
Diluted
$
0.26
$
0.09
$
0.48
$
0.22
Weighted average common shares
outstanding:
Basic
51,315
47,488
50,158
47,500
Diluted
52,570
48,519
51,475
48,571
AMERESCO, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended June
30,
2021
2020
Cash flows from operating activities:
Net income
$
30,317
$
15,472
Adjustments to reconcile net income to
cash flows from operating activities:
Depreciation of energy assets, net
20,136
18,949
Depreciation of property and equipment
1,637
1,659
Accretion of ARO liabilities
57
43
Amortization of debt discount and debt
issuance costs
1,477
1,176
Amortization of intangible assets
161
356
Provision for (recoveries of) bad
debts
6
(80
)
Net loss from derivatives
1,225
517
Stock-based compensation expense
2,115
859
Deferred income taxes
335
4,619
Unrealized foreign exchange (gain)
loss
(32
)
201
Changes in operating assets and
liabilities:
Accounts receivable
15,230
12,125
Accounts receivable retainage
(6,211
)
(2,222
)
Federal ESPC receivable
(125,146
)
(89,761
)
Inventory, net
(224
)
235
Costs and estimated earnings in excess of
billings
(8,893
)
6,410
Prepaid expenses and other current
assets
2,445
1,857
Project development costs
760
(2,758
)
Other assets
(3,691
)
516
Accounts payable, accrued expenses and
other current liabilities
(22,941
)
(45,256
)
Billings in excess of cost and estimated
earnings
(8,174
)
8,569
Other liabilities
(207
)
316
Income taxes payable
3,135
(7,396
)
Cash flows from operating activities
(96,483
)
(73,594
)
Cash flows from investing activities:
Purchases of property and equipment
(1,484
)
(1,355
)
Capital investment in energy assets
(104,267
)
(77,218
)
Contributions to equity investment
—
(127
)
Cash flows from investing activities
(105,751
)
(78,700
)
Cash flows from financing activities:
Proceeds from equity offering, net of
offering costs
120,081
—
Payments of financing fees
(1,162
)
(2,198
)
Proceeds from exercises of options and
ESPP
3,263
5,078
Repurchase of common stock
—
(6
)
(Payments on) proceeds from senior secured
credit facility, net
(28,073
)
16,000
Proceeds from long-term debt
financings
64,854
14,232
Proceeds from Federal ESPC projects
70,159
133,598
(Payments on) proceeds for energy assets
from Federal ESPC
(117
)
1,488
Proceeds from redeemable non-controlling
interests, net
1,583
74
Payments on long-term debt
(33,664
)
(25,860
)
Cash flows from financing activities
196,924
142,406
Effect of exchange rate changes on
cash
315
(457
)
Net decrease in cash, cash equivalents,
and restricted cash
(4,995
)
(10,345
)
Cash, cash equivalents, and restricted
cash, beginning of period
98,837
77,264
Cash, cash equivalents, and restricted
cash, end of period
$
93,842
$
66,919
Non-GAAP Financial Measures (In thousands)
(Unaudited)
Three Months Ended June 30,
2021
Adjusted EBITDA:
Projects
Energy Assets
O&M
Other
Consolidated
Net income attributable to common
shareholders
$
10,379
$
1,146
$
1,932
$
198
$
13,655
Impact from redeemable non-controlling
interests
—
4,231
—
—
4,231
Less: Income tax benefit
(1,080
)
(422
)
(73
)
(321
)
(1,896
)
Plus: Other expenses, net
316
5,172
5
(43
)
5,450
Plus: Depreciation and amortization
624
9,938
433
340
11,335
Plus: Stock-based compensation
966
182
97
104
1,349
Plus: Restructuring and other charges
133
25
12
64
234
Adjusted EBITDA
$
11,338
$
20,272
$
2,406
$
342
$
34,358
Adjusted EBITDA margin
5.8
%
54.9
%
12.3
%
1.6
%
12.5
%
Three Months Ended June 30,
2020
Adjusted EBITDA:
Projects
Energy Assets
O&M
Other
Consolidated
Net income (loss) attributable to common
shareholders
$
4,486
$
(749
)
$
1,001
$
(373
)
$
4,365
Impact from redeemable non-controlling
interests
—
4,471
—
—
4,471
Plus: Other expenses, net
631
3,229
171
21
4,052
Plus: Depreciation and amortization
896
8,608
673
476
10,653
Plus: Stock-based compensation
308
55
34
33
430
Plus: Restructuring and other charges
153
11
6
4
174
Adjusted EBITDA
$
6,474
$
15,625
$
1,885
$
161
$
24,145
Adjusted EBITDA margin
4.0
%
54.3
%
10.9
%
0.9
%
10.8
%
Six Months Ended June 30,
2021
Adjusted EBITDA:
Projects
Energy Assets
O&M
Other
Consolidated
Net income attributable to common
shareholders
$
14,471
$
6,737
$
3,208
$
413
$
24,829
Impact from redeemable non-controlling
interests
—
5,488
—
—
5,488
(Less) Plus: Income tax (benefit)
provision
(134
)
(86
)
138
391
309
Plus: Other expenses, net
1,378
7,521
30
193
9,122
Plus: Depreciation and amortization
1,200
19,116
922
696
21,934
Plus: Stock-based compensation
1,515
282
153
165
2,115
Plus: Restructuring and other charges
153
30
34
65
282
Adjusted EBITDA
$
18,583
$
39,088
$
4,485
$
1,923
$
64,079
Adjusted EBITDA margin
4.9
%
55.7
%
11.8
%
4.7
%
12.2
%
Six Months Ended June 30,
2020
Adjusted EBITDA:
Projects
Energy Assets
O&M
Other
Consolidated
Net income attributable to common
shareholders
$
4,292
$
4,315
$
1,835
$
124
$
10,566
Impact from redeemable non-controlling
interests
—
4,906
—
—
4,906
Less: Income tax benefit
(803
)
(1,700
)
—
—
(2,503
)
Plus: Other expenses, net
1,983
6,695
690
73
9,441
Plus: Depreciation and amortization
1,676
16,954
1,425
909
20,964
Plus: Stock-based compensation
600
113
70
76
859
Plus: Restructuring and other charges
875
30
65
180
1,150
Adjusted EBITDA
$
8,623
$
31,313
$
4,085
$
1,362
$
45,383
Adjusted EBITDA margin
2.8
%
55.0
%
11.5
%
3.5
%
10.4
%
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Non-GAAP net income and EPS:
Net income attributable to common
shareholders
$
13,655
$
4,365
$
24,829
$
10,566
Adjustment for accretion of tax equity
financing fees
(30
)
—
(61
)
—
Impact from redeemable non-controlling
interests
4,231
4,471
5,488
4,906
Plus: Restructuring and other charges
234
174
282
1,150
Less: Income tax effect of Non-GAAP
adjustments
(61
)
—
(73
)
(212
)
Non-GAAP net income
$
18,029
$
9,010
$
30,465
$
16,410
Diluted net income per common share
$
0.26
$
0.09
$
0.48
$
0.22
Effect of adjustments to net income
0.08
0.10
0.11
0.12
Non-GAAP EPS
$
0.34
$
0.19
$
0.59
$
0.34
Adjusted cash from operations:
Cash flows from operating activities
$
(57,759
)
$
(21,954
)
$
(96,483
)
$
(73,594
)
Plus: proceeds from Federal ESPC
projects
36,639
72,400
70,159
133,598
Adjusted cash from operations
$
(21,120
)
$
50,446
$
(26,324
)
$
60,004
Other Financial Measures (In thousands) (Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
New contracts and awards:
New contracts
$
188,000
$
127,000
$
261,000
$
213,000
New awards (1)
$
97,000
$
198,000
$
372,000
$
253,000
(1) Represents estimated future revenues from projects that have
been awarded, though the contracts have not yet been signed
Non-GAAP Financial Guidance
Adjusted earnings before
interest, taxes, depreciation and amortization (adjusted
EBITDA):
Year Ended December 31,
2021
Low
High
Operating income(1)
$89 million
$97 million
Depreciation and amortization
$47 million
$48 million
Stock-based compensation
$4 million
$5 million
Adjusted EBITDA
$140 million
$150 million
(1) Although net income is the most
directly comparable GAAP measure, this table reconciles adjusted
EBITDA to operating income because we are not able to calculate
forward-looking net income without unreasonable efforts due to
significant uncertainties with respect to the impact of accounting
for our redeemable non-controlling interests and taxes.
Exhibit A: Non-GAAP Financial
Measures
We use the Non-GAAP financial measures defined and discussed
below to provide investors and others with useful supplemental
information to our financial results prepared in accordance with
GAAP. These Non-GAAP financial measures should not be considered as
an alternative to any measure of financial performance calculated
and presented in accordance with GAAP. For a reconciliation of
these Non-GAAP measures to the most directly comparable financial
measures prepared in accordance with GAAP, please see Non-GAAP
Financial Measures and Non-GAAP Financial Guidance in the tables
above.
We understand that, although measures similar to these Non-GAAP
financial measures are frequently used by investors and securities
analysts in their evaluation of companies, they have limitations as
analytical tools, and investors should not consider them in
isolation or as a substitute for the most directly comparable GAAP
financial measures or an analysis of our results of operations as
reported under GAAP. To properly and prudently evaluate our
business, we encourage investors to review our GAAP financial
statements included above, and not to rely on any single financial
measure to evaluate our business.
Adjusted EBITDA and Adjusted EBITDA Margin
We define adjusted EBITDA as operating income before
depreciation, amortization of intangible assets, accretion of asset
retirement obligations, contingent consideration expense,
stock-based compensation expense, restructuring and asset
impairment charges. We believe adjusted EBITDA is useful to
investors in evaluating our 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
our adjusted EBITDA in different historical periods, investors can
evaluate our operating results without the additional variations of
depreciation and amortization expense, accretion of asset
retirement obligations, contingent consideration expense,
stock-based compensation expense, impact from redeemable
non-controlling interests, restructuring and asset impairment
charges. We define adjusted EBITDA margin as adjusted EBITDA stated
as a percentage of revenue.
Our management uses adjusted EBITDA and adjusted EBITDA margin
as measures of operating performance, because they do not include
the impact of items that we do not consider indicative of our core
operating performance; for planning purposes, including the
preparation of our annual operating budget; to allocate resources
to enhance the financial performance of the business; to evaluate
the effectiveness of our business strategies; and in communications
with the board of directors and investors concerning our financial
performance.
Non-GAAP Net Income and EPS
We define Non-GAAP net income and earnings per share (EPS) to
exclude certain discrete items that management does not consider
representative of our ongoing operations, including restructuring
and asset impairment charges and impact from redeemable
non-controlling interest. We consider Non-GAAP net income and
Non-GAAP EPS to be important indicators of our operational strength
and performance of our business because they eliminate the effects
of events that are not part of the Company's core operations.
Adjusted Cash from Operations
We define adjusted cash from operations as cash flows from
operating activities plus proceeds from Federal ESPC projects. Cash
received in payment of Federal ESPC projects is treated as a
financing cash flow under GAAP due to the unusual financing
structure for these projects. These cash flows, however, correspond
to the revenue generated by these projects. Thus we believe that
adjusting operating cash flow to include the cash generated by our
Federal ESPC projects provides investors with a useful measure for
evaluating the cash generating ability of our core operating
business. Our management uses adjusted cash from operations as a
measure of liquidity because it captures all sources of cash
associated with our revenue generated by operations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210802005691/en/
Media Relations Leila Dillon, 508.661.2264,
news@ameresco.com
Investor Relations Eric Prouty, AdvisIRy Partners,
212.750.5800, eric.prouty@advisiry.com Lynn Morgen, AdvisIRy
Partners, 212.750.5800, lynn.morgen@advisiry.com
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