- Record Q1 Revenue and Profit -
- Added Over $400 Million in New Project
Awards -
- Added 60 MWe to Energy Assets in
Development -
- Added Over $100 Million in Long-term
O&M Contracts -
- Reaffirms FY22 Guidance -
First Quarter 2022 Financial Highlights:
(All financial result comparisons made are against the prior
year period unless otherwise noted)
- Revenues of $474.0 million, up 88%
- Net income attributable to common shareholders of $17.4
million, up 56%
- GAAP EPS of $0.32, up 46%
- Non-GAAP EPS of $0.36, up 44%
- Adjusted EBITDA of $45.1 million, up 52%
Ameresco, Inc. (NYSE:AMRC), a leading cleantech integrator
specializing in energy efficiency and renewable energy, today
announced financial results for the fiscal quarter ended March 31,
2022. The Company also furnished supplemental information in
conjunction with this press release in a Current Report on Form
8-K. The supplemental information, which includes Non-GAAP
financial measures, has been posted to the “Investor Relations”
section of the Company’s website at www.ameresco.com. Reconciliations of Non-GAAP
measures to the appropriate GAAP measures are included herein.
“Excellent execution by all of our teams led to robust first
quarter revenue and profits, keeping us on track to achieve another
year of record results in 2022. Each of our lines of business
posted significant year-over-year growth. Even with record project
revenues, we continued to grow our total project backlog with
significant new awards, ending the quarter at $3.1 billion. Our
work on the three Southern California Edison (SCE) BESS projects
were a significant contributor to first quarter revenue growth as
we hit many key milestones ahead of our expectations.
Update on the SCE BESS projects
- The production of the majority of the battery components needed
for the projects is complete
- Construction, mobilization and the delivery of other major
equipment is proceeding at the SCE sites
- As we stated in our previous press release, we are expecting
delays in the delivery of certain batteries due to the COVID-19
lockdowns in several regions around China and newly implemented
Chinese transportation safety policies
- Under the SCE contract, Force Majeure events, including
COVID-related delays, result in extensions of required completion
deadlines without liquidated damages and the contract price may be
increased to account for the impact of the Force Majeure event
- Ameresco is engaged in continuing discussions with SCE
regarding the applicability and scope of any Force Majeure relief
relating to these circumstances
- We expect up to 300 MW of capacity to be online in August 2022,
with the remainder to be online this year
“We were excited to announce another transformative win during
the first quarter with the City of Bristol, UK in support of their
ambitious 2030 carbon neutrality goal. Just six months after
winning the SCE projects, Ameresco was awarded our second largest
project ever. Once contracted, this unique 20-year partnership is
designed to encompass a full range of advanced technologies, and
efficiency and renewable solutions involving Project work, O&M
as well as Energy Assets. We anticipate that this project will
serve as a blueprint for cities, campuses and corporations across
the US and Europe as they develop their net zero initiatives. The
comprehensive scope of this project once again highlights our core
capabilities to compete and win increasingly large and complex
projects.
“The Energy Asset group had several significant wins during the
quarter and our O&M business continued to add contracts as
well, building its contracted backlog to over $1.2 billion. These
sources of recurring revenue together with our project backlog
provide us with over $5 billion in revenue visibility,” commented
George P. Sakellaris, President and Chief Executive Officer.
First Quarter Financial Results
(All financial result comparisons made are against the prior
year period unless otherwise noted.)
Total revenue increased 88% with growth across all our lines of
business. Project revenue increased 118% as aspects of the SCE and
other projects progressed ahead of our expectations during the
quarter. The growth in our operating energy asset base, increased
performance of existing assets and strong RIN prices drove a 15.4%
growth in Energy Asset revenue with O&M and Other revenue
increasing 9.6% and 11.0%, respectively. Gross margin was 14.4%, in
line with our expectations given the impact from the lower gross
margin profile of the SCE design/build project. Revenue performance
combined with the Company’s strong operating leverage helped drive
net income to $17.4 million, a 56% increase, and Adjusted EBITDA to
$45.1 million, a 52% increase. Energy asset line of business net
income was negatively impacted by non-cash mark-to-market charges
on our commodity gas swaps that totaled approximately $2.5
million.
(in millions)
1Q 2022
1Q 2021
Revenue
Net Income (1)
Adj. EBITDA
Revenue
Net Income (1)
Adj. EBITDA
Projects
$393.4
$10.2
$18.5
$180.7
$4.4
$8.3
Energy Assets
$38.4
$3.9
$21.2
$33.3
$5.9
$18.7
O&M
$20.3
$2.6
$3.6
$18.5
$0.6
$1.8
Other
$21.9
$0.7
$1.8
$19.7
$0.2
$0.9
Total (1)
$474.0
$17.4
$45.1
$252.2
$11.2
$29.7
(1) Net Income (Loss) represents
net income (loss) attributable to common shareholders.
(2) Numbers in table may not foot
due to rounding.
($ in millions)
At March 31, 2022
Awarded Project Backlog (1)
$1,754
Contracted Project Backlog
$1,342
Total Project Backlog
$3,096
O&M Revenue Backlog
$1,212
Energy Asset Visibility (2)
$1,040
Operating Energy Assets
353 MWe
Assets in Development
464 MWe
(1) customer contracts that have
not been signed yet
(2) estimated contracted revenue
and incentives on our operating Energy Assets, which may vary with
actual production and future values of certain environmental
attributes
Project Highlights
In the first quarter of 2022:
- We were awarded a 20-year project to reduce energy costs and
decarbonize the City of Bristol by 2030 through a series of energy
and infrastructure investment opportunities, designed to attract
upwards of £1 billion of inward investment to be shared with us and
our partner Vattenfall.
- We announced a contract through our partnership at Joint Base
Pearl Harbor-Hickam (JBPHH) Air Force Base in Hawaii for a $102
million energy conservation project and accompanying $95 million
25-year O&M service agreement increasing energy efficiency,
reducing carbon emissions, and increasing the comfort of military
families on Hickam Air Force Base.
- We were awarded the 10-MW Slemon Park Microgrid project in
collaboration with PEI Energy Corporation incorporating a 10-MW
solar facility with direct current-coupled energy storage.
Asset Highlights
In the first quarter of 2022:
- Ameresco brought 10 MWe assets into operation while adding 60
MWe (gross) to our Assets in Development, bringing our total Assets
in Development to 464 MWe.
- Added a 50 MWe battery and medium RNG project into our Assets
into Development.
Summary and Outlook
“Ameresco’s first quarter performance demonstrates our
strong positioning in an expanding addressable market that is
benefiting from long term industry trends. These trends, together
with the breadth of our technological expertise and proven track
record position Ameresco to benefit from the growing number of
opportunities on the horizon,” Mr. Sakellaris noted.
“We are pleased to reaffirm our 2022 guidance for year-over-year
revenue growth of 52%, Adjusted EBITDA growth of 34% and Non-GAAP
EPS of 26% at the midpoints of our guidance ranges. During 2022, we
anticipate placing between 60 and 80 MWe of energy assets in
service, while investing approximately $225 million to $275 million
of capital, the majority of which we expect to fund with
non-recourse debt. In addition, we now expect Q2 revenue to be
about 10-15% higher than Q1. Q2 gross margins are still expected to
be approximately 14%. Q3 revenue is expected to be slightly greater
than Q4. We expect Q3 and Q4 gross margins to be approximately
18%,” Mr. Sakellaris concluded.
FY 2022 Guidance
Ranges
Revenue
$1.83 billion
$1.87 billion
Gross Margin
15.5%
16.5%
Adjusted EBITDA
$200 million
$210 million
Interest Expense & Other
$25 million
$27 million
Effective Tax Rate
13%
17%
Non-GAAP EPS
$1.85
$1.95
The Company’s guidance excludes the impact of any
non-controlling interest activity, one-time charges, asset
impairment charges, restructuring activities, as well as any
related tax impact.
Conference Call/Webcast Information
The Company will host a conference call today at 4:30 p.m. ET to
discuss first quarter financial results, business and financial
outlook and other business highlights. The conference call will be
available via the following dial in numbers:
- U.S. Participants: Dial +1 (877) 359-9508 (Access Code:
1647646)
- International Participants: Dial +1 (224) 357-2393 (Access
Code: 1647646)
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 Europe. 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 1,200 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, gross
margin, capital investments, other financial guidance, statements
about our agreement with SCE including the impact of any delays,
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 or at all; 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 delay; demand for our energy efficiency
and renewable energy solutions; our ability to complete and operate
our projects on a profitable basis and as committed to our
customers; our ability to arrange financing to fund our operations
and projects and to comply with covenants in our existing debt
agreements; changes in federal, state and local government policies
and programs related to energy efficiency and renewable energy and
the fiscal health of the government; the ability of customers to
cancel or defer contracts included in our backlog; the effects of
our acquisitions and joint ventures; 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 particularly
given global supply chain challenges; our reliance on third parties
for our construction and installation work; the addition of new
customers or the loss of existing customers including our reliance
on the agreement with SCE for a significant portion of our revenues
in 2022; the impact from Covid-19 on our business; global supply
chain challenges, component shortages and inflationary pressures;
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; cybersecurity incidents and breaches; and other factors
discussed in our Annual Report on Form 10-K for the year ended
December 31, 2021, filed with the U.S. Securities and Exchange
Commission (SEC) on March 1, 2022 and other SEC filings. 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)
March 31, December 31,
2022
2021
ASSETS (Unaudited) Current assets: Cash and cash
equivalents
$
68,288
$
50,450
Restricted cash
26,792
24,267
Accounts receivable, net
204,082
161,970
Accounts receivable retainage, net
40,555
43,067
Costs and estimated earnings in excess of billings
460,240
306,172
Inventory, net
9,720
8,807
Prepaid expenses and other current assets
19,025
25,377
Income tax receivable
4,337
5,261
Project development costs, net
12,162
13,214
Total current assets
845,201
638,585
Federal ESPC receivable
605,871
557,669
Property and equipment, net
13,063
13,117
Energy assets, net
908,006
856,531
Deferred income tax assets, net
3,722
3,703
Goodwill, net
71,334
71,157
Intangible assets, net
5,974
6,961
Operating lease assets
39,485
41,982
Restricted cash, non-current portion
13,323
12,337
Other assets
20,869
22,779
Total assets
$
2,526,848
$
2,224,821
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND
STOCKHOLDERS’ EQUITY Current liabilities: Current portions of
long-term debt and financing lease liabilities
$
80,191
$
78,934
Accounts payable
231,533
308,963
Accrued expenses and other current liabilities
43,784
43,311
Current portion of operating lease liabilities
6,134
6,276
Billings in excess of cost and estimated earnings
31,729
35,918
Income taxes payable
1,771
822
Total current liabilities
395,142
474,224
Long-term debt and financing lease liabilities, net of current
portion, unamortized discount and debt issuance costs
659,695
377,184
Federal ESPC liabilities
600,507
532,287
Deferred income tax liabilities, net
6,063
3,871
Deferred grant income
8,379
8,498
Long-term operating lease liabilities, net of current portion
32,854
35,135
Other liabilities
40,560
43,176
Commitments and contingencies Redeemable non-controlling interests,
net
47,438
46,182
Stockholders’ equity: Preferred stock, $0.0001 par value, 5,000,000
shares authorized, no shares issued and outstanding at March 31,
2022 and December 31, 2021
-
-
Class A common stock, $0.0001 par value, 500,000,000 shares
authorized, 35,910,759 shares issued and 33,808,964 shares
outstanding at March 31, 2022, 35,818,104 shares issued and
33,716,309 shares outstanding at December 31, 2021
3
3
Class B common stock, $0.0001 par value, 144,000,000 shares
authorized, 18,000,000 shares issued and outstanding at March 31,
2022 and December 31, 2021
2
2
Additional paid-in capital
289,459
283,982
Retained earnings
456,088
438,732
Accumulated other comprehensive loss, net
(3,889
)
(6,667
)
Treasury stock, at cost, 2,101,795 shares at March 31, 2022 and
December 31, 2021
(11,788
)
(11,788
)
Stockholder’s equity before non-controlling interest
729,875
704,264
Non-controlling interest
6,335
-
Total stockholder’s equity
736,210
704,264
Total liabilities, redeemable non-controlling interests and
stockholders’ equity
$
2,526,848
$
2,224,821
AMERESCO, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(In thousands, except per
share amounts) (Unaudited)
Three Months Ended March
31,
2022
2021
Revenues
$
474,002
$
252,202
Cost of revenues
405,624
205,293
Gross profit
68,378
46,909
Selling, general and administrative
expenses
39,692
28,601
Operating income
28,686
18,308
Other expenses, net
7,081
3,672
Income before income taxes
21,605
14,636
Income tax provision
2,307
2,205
Net income
19,298
12,431
Net income attributable to redeemable
non-controlling interests
(1,914
)
(1,257
)
Net income attributable to common
shareholders
$
17,384
$
11,174
Net income per share attributable to
common shareholders:
Basic
$
0.34
$
0.23
Diluted
$
0.32
$
0.22
Weighted average common shares
outstanding:
Basic
51,744
48,975
Diluted
53,636
50,357
AMERESCO, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended March
31,
2022
2021
Cash flows from operating activities:
Net income
$
19,298
$
12,431
Adjustments to reconcile net income to
cash flows from operating activities:
Depreciation of energy assets, net
11,806
9,686
Depreciation of property and equipment
734
833
Gain on contingent consideration
(320
)
—
Accretion of ARO liabilities
36
24
Amortization of debt discount and debt
issuance costs
852
747
Amortization of intangible assets
578
80
Provision for bad debts
237
3
Equity in (earnings) loss of
unconsolidated entity
(637
)
62
Net loss (gain) from derivatives
1,622
(377
)
Stock-based compensation expense
3,531
766
Deferred income taxes, net
1,284
1,410
Unrealized foreign exchange loss
132
19
Changes in operating assets and
liabilities:
Accounts receivable
(40,859
)
15,535
Accounts receivable retainage
2,582
(1,844
)
Federal ESPC receivable
(46,300
)
(65,973
)
Inventory, net
(914
)
48
Costs and estimated earnings in excess of
billings
(154,325
)
6,544
Prepaid expenses and other current
assets
2,813
(726
)
Project development costs
1,260
1,259
Other assets
105
(600
)
Accounts payable, accrued expenses and
other current liabilities
(77,163
)
(19,333
)
Billings in excess of cost and estimated
earnings
(4,309
)
(3,973
)
Other liabilities
(33
)
(226
)
Income taxes receivable, net
1,868
4,881
Cash flows from operating activities
(276,122
)
(38,724
)
Cash flows from investing activities:
Purchases of property and equipment
(889
)
(656
)
Capital investment in energy assets
(56,844
)
(55,823
)
Cash flows from investing activities
(57,733
)
(56,479
)
Cash flows from financing activities:
Proceeds from equity offering, net of
offering costs
—
120,216
Payments of debt discount and debt
issuance costs
(2,570
)
(850
)
Proceeds from exercises of options and
ESPP
1,708
1,386
Proceeds from (payments on) senior secured
revolving credit facility, net
76,000
(53,073
)
Proceeds from long-term debt
financings
286,744
30,811
Proceeds from Federal ESPC projects
64,788
33,520
Proceeds for (payments on) energy assets
from Federal ESPC
1,925
(59
)
Contributions from non-controlling
interest
4,594
—
Distributions to redeemable
non-controlling interests, net
(357
)
(495
)
Payments on long-term debt and financing
leases
(77,432
)
(19,073
)
Cash flows from financing activities
355,400
112,383
Effect of exchange rate changes on
cash
(196
)
330
Net increase in cash, cash equivalents,
and restricted cash
21,349
17,510
Cash, cash equivalents, and restricted
cash, beginning of period
87,054
98,837
Cash, cash equivalents, and restricted
cash, end of period
$
108,403
$
116,347
Non-GAAP Financial Measures (In thousands)
(Unaudited)
Three Months Ended March 31,
2022
Adjusted EBITDA:
Projects
Energy Assets
O&M
Other
Consolidated
Net income attributable to common
shareholders
$ 10,160
$ 3,870
$ 2,630
$ 724
$ 17,384
Impact from redeemable non-controlling
interests
—
1,914
—
—
1,914
Plus (less): Income tax provision
(benefit)
3,299
(1,784)
392
400
2,307
Plus: Other expenses, net
1,424
5,460
115
82
7,081
Plus: Depreciation and amortization
851
11,485
335
447
13,118
Plus: Stock-based compensation
2,934
286
153
158
3,531
(Less) plus: (Contingent consideration)
and restructuring and other charges
(155)
(26)
(14)
(14)
(209)
Adjusted EBITDA
$ 18,513
$ 21,205
$ 3,611
$ 1,797
$ 45,126
Adjusted EBITDA margin
4.7 %
55.2 %
17.8 %
8.2 %
9.5 %
Three Months Ended March 31,
2021
Adjusted EBITDA:
Projects
Energy Assets
O&M
Other
Consolidated
Net income attributable to common
shareholders
$ 4,426
$ 5,910
$ 617
$ 221
$ 11,174
Impact from redeemable non-controlling
interests
—
1,257
—
—
1,257
Plus: Income tax provision
1,119
981
82
23
2,205
Plus: Other expenses, net
1,193
2,068
177
235
3,673
Plus: Depreciation and amortization
1,012
8,405
828
354
10,599
Plus: Stock-based compensation
554
98
57
58
767
Plus: Restructuring and other charges
20
5
22
2
49
Adjusted EBITDA
$ 8,324
$ 18,724
$ 1,783
$ 893
$ 29,724
Adjusted EBITDA margin
4.6 %
56.3 %
9.6 %
4.5 %
11.8 %
Three Months Ended March
31,
2022
2021
Non-GAAP net income and EPS:
Net income attributable to common
shareholders
$
17,384
$
11,174
Adjustment for accretion of tax equity
financing fees
(28
)
(31
)
Impact from redeemable non-controlling
interests
1,914
1,257
(Less) Plus: (Contingent consideration)
and restructuring and other charges
(209
)
—
Less: Income tax effect of Non-GAAP
adjustments
54
(12
)
Non-GAAP net income
19,115
12,388
Diluted net income per common share
$
0.32
$
0.22
Effect of adjustments to net income
0.04
0.03
Non-GAAP EPS
$
0.36
$
0.25
Adjusted cash from operations:
Cash flows from operating activities
$
(276,122
)
$
(38,724
)
Plus: proceeds from Federal ESPC
projects
64,788
33,520
Adjusted cash from operations
$
(211,334
)
$
(5,204
)
Other Financial Measures (In thousands) (Unaudited)
Three Months Ended March
31,
2022
2021
New contracts and awards:
New contracts
$
226,700
$
73,000
New awards (1)
$
438,000
$
275,000
(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,
2022
Low
High
Operating income(1)
$137 million
$145 million
Depreciation and amortization
$52 million
$53 million
Stock-based compensation
$11 million
$12 million
Adjusted EBITDA
$200 million
$210 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 net income attributable to common
shareholders, including impact from redeemable non-controlling
interests, before income tax (benefit) provision, other expenses
net, depreciation, amortization of intangible assets, accretion of
asset retirement obligations, contingent consideration expense,
stock-based compensation expense, energy asset impairment,
restructuring and other charges, gain or loss on sale of equity
investment, and gain or loss upon deconsolidation of a variable
interest entity. 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 energy asset
impairment, restructuring and other charges, impact from redeemable
non-controlling interest, gain or loss on sale of equity
investment, and gain or loss upon deconsolidation of a variable
interest entity. 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/20220502005720/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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