Ameresco Reports First Quarter 2011 Financial Results

    --  First quarter revenue of $146.4 million, an increase of 39%
    --  First quarter net income of $5.3 million, an increase of 314%
    --  First quarter net income per diluted share of $0.12, an increase of 231%

FRAMINGHAM, Mass.--(BUSINESS WIRE)-- Ameresco, Inc. (NYSE:AMRC) a leading energy efficiency and renewable energy company, today announced financial results for the fiscal quarter ended March 31, 2011. The Company has also furnished prepared remarks in conjunction with this press release in a Current Report on Form 8-K. These prepared remarks, including a supplemental document containing non-financial metrics frequently reported with quarterly results, have been posted to the "Investor Relations" section of the Company's website at

Total revenue for the first quarter of 2011 was $146.4 million compared to $105.6 million for the same period in 2010, an increase of 39% year-over-year. Operating income for the first quarter of 2011 was $8.3 million compared to $2.6 million in the first quarter of 2010, an increase of 224% year-over-year. First quarter 2011 EBITDA was $11.8 million compared to $5.1 million for the same period in 2010, an increase of 130% year-over-year. Net income for the first quarter of 2011 was $5.3 million compared to $1.3 million in the same period of 2010, an increase of 314% year-over-year. First quarter 2011 net income per diluted share was $0.12 compared to $0.03 per diluted share for the first quarter of 2010.

"Ameresco continued to execute our strategic plan, delivering unseasonably strong first quarter results. Continued momentum from installation activity, recurring revenue from our higher margin offerings, and increased operational efficiencies helped drive our earnings," stated George P. Sakellaris, president and chief executive officer of Ameresco. "We believe that in today's environment of increasing energy costs, budgetary constraints, aging infrastructure, and a greater awareness of the benefits of energy efficiency, the demand for budget-neutral energy savings projects and renewable energy solutions that lower operating costs and reduce carbon footprints should continue to grow, positioning Ameresco well for the future."

Additional First Quarter 2011 Operating Highlights:

    --  Revenue generated from backlog was $118.4 million for the first quarter
        of 2011, an increase of 41% year-over-year.
    --  All other revenue was $28.0 million for the first quarter of 2011, an
        increase of 30% year-over-year.
    --  Total construction backlog was $1.17 billion as of March 31, 2011 and
        consisted of:
        o $588.7 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
        o $577.2 million of awarded projects, which represents estimated future
          revenue for projects that are expected to be signed over the next 6-12
          months on average.

FY 2011 Guidance

Ameresco reiterates guidance for the fiscal year ending December 31, 2011. Ameresco continues to expect that it will earn total revenue in the range of $690 million to $705 million, that EBITDA will be in the range of $67 million to $70 million, and that net income will be in the range of $35 million to $37 million. The Company also expects that net income per diluted share for 2011 will be in the range of $0.75 to $0.79.

Webcast Reminder

Ameresco will hold its earnings conference call today, May 4, at 8:30 a.m. Eastern Time with President and CEO, George Sakellaris, and Vice President and Chief Financial Officer, Andrew Spence, to discuss details regarding the Company's first quarter 2011 results, business outlook and strategy. Participants may access it by dialing domestically 888.713.4216 or internationally 617.213.4868. The passcode is 15136768. Participants are advised to dial-in at least ten minutes prior to the call to register. Those who wish to listen only to the conference call webcast may visit the "Investor Relations" section of the Company's website at

Pre-Registration for the call is also available at: Pre-registrants will be issued a pin number to use when dialing into the live call which will provide quick 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 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 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.

About Ameresco, Inc.

Ameresco, Inc. was incorporated in Delaware in April 2000 and is a leading independent provider of comprehensive energy efficiency and renewable energy solutions for facilities throughout North America. Ameresco's solutions include upgrades to a facility's energy infrastructure, and the development, construction, and operation of renewable energy plants. With corporate headquarters located in Framingham, MA, Ameresco has 56 offices in 29 states and five Canadian provinces. For more information, visit

Safe Harbor Statement

Any statements in this press release about future expectations, plans and prospects for Ameresco, Inc., including statements about backlog, estimated future revenues, EBITDA and net income, as well as 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 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 timing of work Ameresco does on projects where it recognizes revenue on a percentage of completion basis; 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, 2010, filed with the U.S. Securities and Exchange Commission on March 31, 2011. 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.



                                               December 31,     March 31,

                                               2010             2011



Current assets:

Cash and cash equivalents                      $ 44,691,021     $ 29,349,636

Restricted cash                                  9,197,447        9,060,696

Accounts receivable, net                         68,584,304       76,775,498

Accounts receivable retainage                    18,452,777       17,263,504

Costs and estimated earnings in excess of        35,556,425       41,842,664

Inventory, net                                   6,780,092        8,413,306

Prepaid expenses and other current assets        8,471,628        8,545,105

Income tax receivable                            2,511,542        7,171,748

Deferred income taxes                            9,908,240        12,178,736

Project development costs                        7,556,345        6,640,028

Total current assets                             211,709,821      217,240,921

Federal ESPC receivable financing                193,551,495      216,131,523

Property and equipment, net                      5,406,387        5,863,820

Project assets, net                              145,147,475      143,021,635

Deferred financing fees, net                     3,412,186        3,351,942

Goodwill                                         20,580,995       20,580,995

Other assets                                     4,598,980        4,013,591

                                                 372,697,518      392,963,506

                                               $ 584,407,339    $ 610,204,427


Current liabilities:

Current portion of long-term debt              $ 4,722,118      $ 11,044,064

Accounts payable                                 95,302,897       72,434,421

Accrued liabilities                              12,517,671       12,910,913

Billings in excess of cost and estimated         27,555,894       23,192,383

Income taxes payable                             2,488,672        1,719,555

Total current liabilities                        142,587,252      121,301,336

Long-term debt, less current portion             202,409,484      231,937,832

Deferred income taxes                            12,013,799       16,585,132

Deferred grant income                            4,200,929        6,280,019

Other liabilities                                28,144,144       30,098,408

                                                 246,768,356      284,901,391

Stockholders' equity:

Preferred stock, $0.0001 par value, 5,000,000
shares authorized, no shares issued

and outstanding at December 31, 2010 and March   -                -
31, 2011

Class A common stock, $0.0001 par value,
500,000,000 shares authorized,

27,925,649 shares issued and 23,092,365
outstanding at December 31, 2010;                2,793            2,862
28,619,649 shares issued and 23,786,365
outstanding at March 31, 2011

Class B common stock, $0.0001 par value,
144,000,000 shares authorized,

18,000,000 shares issued and outstanding at
December 31, 2010 and                            1,800            1,800
March 31, 2011

Additional paid-in capital                       74,069,087       76,735,456

Retained earnings                                126,609,101      131,897,386

Accumulated other comprehensive income           3,551,521        4,546,767

Less - treasury stock, at cost, 4,833,284        (9,182,571  )    (9,182,571  )
shares and 4,833,284 shares, respectively

Total stockholders' equity                       195,051,731      204,001,700

                                               $ 584,407,339    $ 610,204,427



                                            Three Months Ended March 31,

                                            2010               2011



Energy efficiency revenue                   $ 74,887,569       $ 106,193,265

Renewable energy revenue                      30,741,017         40,226,504

                                              105,628,586        146,419,769

Direct expenses:

Energy efficiency expenses                    62,524,147         86,361,423

Renewable energy expenses                     24,705,410         32,075,313

                                              87,229,557         118,436,736

Gross profit                                  18,399,029         27,983,033

Operating expenses:

Salaries and benefits                         8,157,029          10,084,732

Project development costs                     3,129,437          4,401,577

General, administrative and other             4,549,938          5,193,334

                                              15,836,404         19,679,643

Operating income                              2,562,625          8,303,390

Other income (expenses), net                  (855,689      )    (900,437      )

Income before provision for income taxes      1,706,936          7,402,953

Income tax provision                          (429,258      )    (2,114,668    )

Net income                                    1,277,678          5,288,285

Other comprehensive income (loss):

Unrealized (loss) gain from interest rate     (320,227      )    239,848
hedge, net of tax gain

Foreign currency translation adjustment       993,899            755,398

Comprehensive income                        $ 1,951,350        $ 6,283,531

Net income per share attributable to common

Basic                                       $ 0.10             $ 0.13

Diluted                                     $ 0.03             $ 0.12

Weighted average common shares outstanding:

Basic                                         13,282,284         41,322,276

Diluted                                       36,587,847         45,823,090


Gross margins:

Energy efficiency revenue                     16.5          %    18.7          %

Renewable energy revenue                      19.6          %    20.3          %

Total                                         17.4          %    19.1          %

Operating expenses as a percent of revenue    15.0          %    13.4          %

Earnings before interest, taxes,
depreciation and amortization (EBITDA):

Operating income                            $ 2,562,625        $ 8,303,390

Depreciation and impairment                   2,142,663          2,682,401

Stock-based compensation                      439,086            859,050

EBITDA                                      $ 5,144,374        $ 11,844,841

EBITDA margin                                 4.9           %    8.1           %

Construction backlog:

Awarded                                     $ 618,380,156      $ 577,192,000

Fully-contracted                              635,462,592        588,661,000

Total construction backlog                  $ 1,253,842,748    $ 1,165,853,000

Note: Awarded represents estimated future revenues from projects that have been
awarded, though the contracts have not yet been signed.



                                              Three Months Ended March 31,

                                              2010             2011


Cash flows from operating activities:

Net income                                    $ 1,277,678      $ 5,288,285

Adjustment to reconcile net income to cash
used in investing activities:

Depreciation of project assets                  1,755,132        2,210,612

Depreciation of property and equipment          387,531          471,789

Amortization of deferred financing fees         70,350           110,833

Provision for bad debts                         17,834           24,186

Unrealized loss on interest rate swaps          (133,591    )    -

Stock-based compensation expense                439,086          859,050

Deferred income taxes                           1,602,408        2,692,134

Excess tax benefits from stock-based            -                (391,297    )
compensation arrangements

Changes in operating assets and liabilities:

(Increase) decrease in:

Restricted cash draws                           214,939          40,912,909

Accounts receivable                             10,914,236       (7,620,850  )

Accounts receivable retainage                   (3,294,743  )    1,439,552

Federal ESPC receivable financing               1,850,132        (36,506,536 )

Inventory                                       (543,415    )    (1,633,214  )

Costs and estimated earnings in excess of       (2,704,612  )    (6,143,202  )

Prepaid expenses and other current assets       (3,516,043  )    (21,209     )

Project development costs                       132,260          921,076

Other assets                                    1,199,776        619,317

Increase (decrease) in:

Accounts payable and accrued expenses           (28,098,390 )    (23,204,150 )

Billings in excess of cost and estimated        (705,848    )    (4,546,509  )

Other liabilities                               933,533          4,342,540

Income taxes payable                            266,389          (5,446,587  )

Net cash used in operating activities           (17,935,358 )    (25,621,271 )

Cash flows from investing activities:

Purchases of property and equipment             (424,376    )    (895,230    )

Purchases of project assets                     (5,874,481  )    (6,591,203  )

Grant awards received on project assets         -                6,695,711

Net cash used in investing activities           (6,298,857  )    (790,722    )

Cash flows from financing activities:

Excess tax benefits from stock-based            -                391,297
compensation arrangements

Payments of financing fees                      (186,078    )    (50,589     )

Proceeds from exercises of options              -                1,416,091

Proceeds from senior secured credit facility    5,017,004        5,000,000

Proceeds from long-term debt financing          812,398          5,500,089

Restricted cash                                 (4,309,781  )    (587,567    )

Payments on long-term debt                      (1,342,551  )    (911,878    )

Net cash (used in) provided by financing        (9,008      )    10,757,443

Effect of exchange rate changes on cash         677,162          313,165

Net decrease in cash and cash equivalents       (23,566,061 )    (15,341,385 )

Cash and cash equivalents, beginning of year    47,927,540       44,691,021

Cash and cash equivalents, end of period      $ 24,361,479     $ 29,349,636

Exhibit A: Non-GAAP Financial Measures

Ameresco defines EBITDA as operating income before depreciation and impairment expense and share-based compensation expense. EBITDA is a non-GAAP financial measure and should not be considered as an alternative to operating income or any other measure of financial performance calculated and presented in accordance with GAAP.

The Company believes EBITDA is useful to investors in evaluating its operating performance for the following reasons: 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 EBITDA and similar non-GAAP measures as supplemental measures to evaluate the overall operating performance of companies; and by comparing Ameresco's 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 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 EBITDA are frequently used by investors and securities analysts in their evaluation of companies, 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: EBITDA does not reflect the Company's cash expenditures or future requirements for capital expenditures or other contractual commitments; EBITDA does not reflect changes in, or cash requirements for, Ameresco's working capital needs; EBITDA does not reflect stock-based compensation expense; EBITDA does not reflect cash requirements for income taxes; 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 EBITDA does not reflect any cash requirements for these replacements; and other companies in Ameresco's industry may calculate 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 EBITDA to operating income, the most directly comparable GAAP measure.

    Source: Ameresco, Inc.