Contact:
|
Media Relations: | CarolAnn Hibbard, (508) 661-2264, news@ameresco.com | ||
Investor Relations: | Andrew Spence, (508) 661-2212, ir@ameresco.com |
| Third quarter revenues increased 45% year-over-year to $191.9 million | ||
| Third quarter net income increased 47% year-over-year to $12.0 million | ||
| Net income per diluted share was $0.28 in the third quarter of 2010 compared to $0.23 per diluted share in the third quarter of 2009 |
| Nine month revenues increased 49% year-over-year to $438.9 million | ||
| Nine month net income increased 103% year-over-year to $21.0 million | ||
| Net income per diluted share was $0.53 for the first nine months of 2010, a 79% increase over the $0.30 per diluted share earned during the same period in 2009 |
| EBITDA for the third quarter of 2010 increased by 67% over the third quarter of 2009 to $24.4 million | ||
| EBITDA for the first nine months of 2010 increased 112% over the first nine months of 2009 to $44.1 million | ||
| Operating cash flows were $9.1 million for the third quarter of 2010 | ||
| Total backlog of contracted, and awarded but not yet contracted, projects remains strong at $1.12 billion |
| Acquisition of Quantum Energy, Renton WA. On August 31, Ameresco acquired Quantum Engineering and Development, an ESCO that provides energy and water auditing, engineering, construction and commissioning services to public, commercial and industrial clients in the western U.S. Since 1999, Quantum has delivered over $63 million in projects to public and private clients. | ||
| Over 97 contracts were executed for the quarter with good representation across all our regions. Some marquee initiatives include: |
| U.S. Navy at their facilities in Naples and Sigonella, Italy. Ameresco was awarded a $13.5 million ESPC for two US Navy locations. The ESPC is a mix of measures that includes energy efficient lighting, chillers, and controls. | ||
| The Department of Veterans Affairs, Veterans Administration Medical Center (VAMC). Ameresco was awarded a $6.6 million contract to design and build a solar photovoltaic system for the VAMC in Salt Lake City, Utah. The roof top systems, ranging from 35 to 100 kW, will be installed on seven campus facilities, and the ground-mounted system is expected to generate approximately 550 kW once completed. |
| The U.S. Bureau of Land Management (BLM). BLM enlisted the AMERESCO AXIS® invoice and data management product to establish a Bureau-wide energy management information system to help reduce its energy costs, consumption, and carbon footprint in facilities throughout the western U.S. This is the first Federal contract for AXIS, affording an opportunity to demonstrate its capabilities and value for this market that has some of the largest users of electricity in the country. | ||
| The Massachusetts State Department of Energy Resources (DOER). The MA DOER and Ameresco worked to sign agreements to design, construct, finance, own, and operate solar power systems on five state facilitiestwo Massport Logan Airport terminals, Bridgewater State College, Worcester State College and the Canton Housing Authority. Under 20-year Power Purchase Agreements (PPAs), the state facilities will receive solar-generated electricity at a discount to their current electricity bills, thereby cutting their energy budgets. These agreements are under the first of multiple phases of PPA projects, positioning Ameresco within communities for when they embrace and move towards PPAs. |
2009 | 2010 | |||||||
(Unaudited) | ||||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 47,927,540 | $ | 29,266,001 | ||||
Restricted cash |
9,249,885 | 10,617,362 | ||||||
Accounts receivable, net |
61,279,515 | 91,905,734 | ||||||
Accounts receivable retainage |
9,242,288 | 17,337,445 | ||||||
Costs and estimated earnings in excess of billings |
14,009,076 | 32,724,457 | ||||||
Inventory, net |
4,237,909 | 5,309,177 | ||||||
Prepaid expenses and other current assets |
8,077,761 | 13,649,918 | ||||||
Deferred income taxes |
9,279,473 | 10,819,900 | ||||||
Project development costs |
8,468,974 | 9,266,798 | ||||||
Total current assets |
171,772,421 | 220,896,792 | ||||||
Federal ESPC receivable financing |
51,397,347 | 161,920,078 | ||||||
Property and equipment, net |
4,373,256 | 4,661,471 | ||||||
Project assets, net |
117,637,990 | 134,995,537 | ||||||
Deferred financing fees, net |
3,582,560 | 3,431,442 | ||||||
Goodwill |
16,132,429 | 18,460,564 | ||||||
Other assets |
10,648,605 | 4,144,324 | ||||||
203,772,187 | 327,613,416 | |||||||
$ | 375,544,608 | $ | 548,510,208 | |||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Current portion of long-term debt |
$ | 8,093,016 | $ | 4,932,771 | ||||
Accounts payable |
75,578,378 | 94,671,536 | ||||||
Accrued liabilities |
18,362,674 | 13,361,057 | ||||||
Billings in excess of cost and estimated earnings |
28,166,364 | 30,870,614 | ||||||
Income taxes payable |
2,129,529 | 2,808,209 | ||||||
Total current liabilities |
132,329,961 | 146,644,187 | ||||||
Long-term debt: |
||||||||
Long-term debt, less current portion |
102,807,203 | 180,663,431 | ||||||
Subordinated debt |
2,998,750 | | ||||||
Deferred income taxes |
11,901,645 | 11,901,645 | ||||||
Deferred grant income |
4,158,508 | 3,995,058 | ||||||
Other liabilities |
18,578,754 | 23,042,218 | ||||||
140,444,860 | 219,602,352 | |||||||
Stockholders equity: |
||||||||
Series A convertible preferred stock, $0.0001 par value, 3,500,000 shares authorized, |
||||||||
3,210,000 shares issued and outstanding at 12/31/2009, no shares issued and
outstanding at 9/30/2010 |
321 | | ||||||
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, no shares issued and |
||||||||
outstanding at 12/31/2009 and 9/30/2010 |
| | ||||||
Common stock, $0.0001 par value, 60,000,000 shares authorized, 17,998,168 shares |
||||||||
issued and 13,282,284 outstanding at 12/31/2009, no shares issued and outstanding
at 9/30/2010 |
1,800 | | ||||||
Class A common stock, $0.0001 par value, 500,000,000 shares authorized, no shares |
||||||||
issued and outstanding at 12/31/2009, 27,919,449 shares issued and 23,086,165
shares outstanding at 9/30/2010 |
| 2,792 | ||||||
Class B common stock, $0.0001 par value, 144,000,000 shares authorized, no shares |
||||||||
issued and outstanding at 12/31/2009, 18,000,000 shares issued and outstanding
at 9/30/2010 |
| 1,800 | ||||||
Additional paid-in capital |
10,466,312 | 71,308,330 | ||||||
Retained earnings |
97,882,985 | 118,909,218 | ||||||
Accumulated other comprehensive income |
2,831,970 | 1,224,100 | ||||||
Less treasury stock, at cost, 4,715,884 shares and 4,833,284 shares, respectively |
(8,413,601 | ) | (9,182,571 | ) | ||||
Total stockholders equity |
102,769,787 | 182,263,669 | ||||||
$ | 375,544,608 | $ | 548,510,208 | |||||
Three Months Ended September 30, | ||||||||
2009 | 2010 | |||||||
(Unaudited) | ||||||||
Revenue: |
||||||||
Energy efficiency revenue |
$ | 106,803,997 | $ | 147,863,350 | ||||
Renewable energy revenue |
25,490,418 | 44,038,079 | ||||||
132,294,415 | 191,901,429 | |||||||
Direct expenses: |
||||||||
Energy efficiency expenses |
88,714,827 | 121,906,348 | ||||||
Renewable energy expenses |
19,662,420 | 35,114,345 | ||||||
108,377,247 | 157,020,693 | |||||||
Gross profit |
23,917,168 | 34,880,736 | ||||||
Operating expenses: |
||||||||
Salaries and benefits |
7,364,786 | 8,409,014 | ||||||
Project development costs |
1,267,986 | 2,716,616 | ||||||
General, administrative and other |
3,708,122 | 4,841,508 | ||||||
12,340,894 | 15,967,138 | |||||||
Operating income |
11,576,274 | 18,913,598 | ||||||
Other income (expenses), net |
924,031 | (2,010,030 | ) | |||||
Income before provision for income taxes |
12,500,305 | 16,903,568 | ||||||
Income tax provision |
4,305,830 | 4,862,651 | ||||||
Net income |
8,194,475 | 12,040,917 | ||||||
Other comprehensive income (loss): |
||||||||
Unrealized loss from interest rate hedge, net of tax |
| (746,087 | ) | |||||
Foreign currency translation adjustment |
3,530,723 | 879,842 | ||||||
Comprehensive income (loss) |
$ | 11,725,198 | $ | 12,174,672 | ||||
Net income per share attributable to common shareholders: |
||||||||
Basic |
$ | 0.86 | $ | 0.35 | ||||
Diluted |
$ | 0.23 | $ | 0.28 | ||||
Weighted average common shares outstanding: |
||||||||
Basic |
9,559,545 | 34,434,352 | ||||||
Diluted |
35,625,835 | 43,445,391 | ||||||
OTHER NON-GAAP DISCLOSURES |
||||||||
Gross margins: |
||||||||
Energy efficiency revenue |
16.9 | % | 17.6 | % | ||||
Renewable energy revenue |
22.9 | % | 20.3 | % | ||||
Total |
18.1 | % | 18.2 | % | ||||
Operating expenses as a percent of revenue |
9.3 | % | 8.3 | % | ||||
Earnings before interest, taxes, depreciation and amortization (EBITDA): |
||||||||
Operating income |
$ | 11,576,274 | $ | 18,913,598 | ||||
Depreciation and impairment |
2,376,444 | 4,796,021 | ||||||
Stock-based compensation |
611,414 | 651,352 | ||||||
EBITDA |
$ | 14,564,132 | $ | 24,360,970 | ||||
EBITDA margin |
11.0 | % | 12.7 | % | ||||
Construction backlog: |
||||||||
Awarded |
$ | 733,646,495 | $ | 530,572,308 | ||||
Fully-contracted |
379,997,559 | 592,745,083 | ||||||
Total construction backlog |
$ | 1,113,644,054 | $ | 1,123,317,391 | ||||
Nine Months Ended September 30, | ||||||||
2009 | 2010 | |||||||
(Unaudited) | ||||||||
Revenue: |
||||||||
Energy efficiency revenue |
$ | 241,290,308 | $ | 323,578,578 | ||||
Renewable energy revenue |
53,848,666 | 115,305,944 | ||||||
295,138,974 | 438,884,522 | |||||||
Direct expenses: |
||||||||
Energy efficiency expenses |
199,585,426 | 267,495,450 | ||||||
Renewable energy expenses |
42,597,466 | 91,955,471 | ||||||
242,182,892 | 359,450,921 | |||||||
Gross profit |
52,956,082 | 79,433,601 | ||||||
Operating expenses: |
||||||||
Salaries and benefits |
18,817,921 | 21,893,756 | ||||||
Project development costs |
6,862,982 | 7,893,558 | ||||||
General, administrative and other |
13,261,611 | 16,156,553 | ||||||
38,942,514 | 45,943,867 | |||||||
Operating income |
14,013,568 | 33,489,734 | ||||||
Other income (expenses), net |
1,512,388 | (4,082,417 | ) | |||||
Income before provision for income taxes |
15,525,956 | 29,407,317 | ||||||
Income tax provision |
5,193,123 | 8,381,084 | ||||||
Net income |
10,332,833 | 21,026,233 | ||||||
Other comprehensive income (loss): |
||||||||
Unrealized loss from interest rate hedge, net of tax |
| (2,297,667 | ) | |||||
Foreign currency translation adjustment |
3,269,613 | 689,797 | ||||||
Comprehensive income |
$ | 13,602,446 | $ | 19,418,363 | ||||
Net income per share attributable to common shareholders: |
||||||||
Basic |
$ | 1.08 | $ | 1.02 | ||||
Diluted |
$ | 0.30 | $ | 0.53 | ||||
Weighted average common shares outstanding: |
||||||||
Basic |
9,576,548 | 20,563,849 | ||||||
Diluted |
34,812,967 | 39,513,507 | ||||||
OTHER NON-GAAP DISCLOSURES |
||||||||
Gross Margins: |
||||||||
Energy efficiency revenue |
17.3 | % | 17.3 | % | ||||
Renewable energy revenue |
20.9 | % | 20.3 | % | ||||
Total |
17.9 | % | 18.1 | % | ||||
Operating expenses as a percent of revenue |
13.2 | % | 10.5 | % | ||||
Earnings before interest, taxes, depreciation and amortization (EBITDA): |
||||||||
Operating income |
$ | 14,013,568 | $ | 33,489,734 | ||||
Depreciation and impairment |
4,962,352 | 8,858,264 | ||||||
Stock-based compensation |
1,844,400 | 1,758,503 | ||||||
EBITDA |
$ | 20,820,320 | $ | 44,106,501 | ||||
EBITDA margin |
7.1 | % | 10.0 | % |
Three Months Ended September 30, | ||||||||
2009 | 2010 | |||||||
(Unaudited) | ||||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 8,194,525 | $ | 12,040,917 | ||||
Adjustment to reconcile net income to cash provided by investing activities: |
||||||||
Depreciation of project assets |
1,876,182 | 4,206,992 | ||||||
Depreciation of property and equipment |
500,262 | 589,029 | ||||||
Amortization of deferred financing fees |
59,016 | 306,398 | ||||||
Write-down of long-term receivable |
| | ||||||
Unrealized gain on interest rate swaps |
(354,326 | ) | | |||||
Stock-based compensation expense |
611,414 | 651,352 | ||||||
Deferred income taxes |
(314,885 | ) | 792,193 | |||||
Changes in operating assets and liabilities: |
||||||||
(Increase) decrease in: |
||||||||
Restricted cash draws |
13,677,494 | 53,185,373 | ||||||
Accounts receivable |
(12,650,473 | ) | (21,103,490 | ) | ||||
Accounts receivable retainage |
(2,875,973 | ) | (5,204,217 | ) | ||||
Federal ESPC receivable financing |
(18,759,514 | ) | (51,833,048 | ) | ||||
Inventory |
1,371,016 | 23,790 | ||||||
Costs and estimated earnings in excess of billings |
2,411,481 | (8,859,603 | ) | |||||
Prepaid expenses and other current assets |
(845,316 | ) | (1,817,278 | ) | ||||
Project development costs |
(1,256,091 | ) | (872,942 | ) | ||||
Other assets |
88,416 | 4,560,707 | ||||||
Increase (decrease) in: |
||||||||
Accounts payable and accrued expenses |
14,543,943 | 25,940,748 | ||||||
Billings in excess of cost and estimated earnings |
10,110,040 | (1,341,379 | ) | |||||
Other liabilities |
4,044,968 | 337,826 | ||||||
Income taxes payable |
2,668,299 | (2,541,814 | ) | |||||
Net cash provided by operating activities |
23,100,478 | 9,061,554 | ||||||
Cash flows from investing activities: |
||||||||
Purchases of property and equipment |
(508,466 | ) | (877,781 | ) | ||||
Purchases of project assets |
2,341,325 | (12,415,691 | ) | |||||
Acquisitions, net of cash received |
(674,110 | ) | (6,138,941 | ) | ||||
Net cash provided by (used in) investing activities |
1,158,749 | (19,432,413 | ) | |||||
Cash flows from financing activities: |
||||||||
Payments of financing fees |
(9,842 | ) | (402,625 | ) | ||||
Proceeds from options and warrant exercises and issuance of stock |
| 59,649,893 | ||||||
Repurchase of stock |
| | ||||||
Proceeds from (payments on) senior secured credit facility |
(15,062,033 | ) | (31,351,119 | ) | ||||
Proceeds from long-term debt financing |
1,352,559 | | ||||||
Restricted cash |
(3,771,371 | ) | (1,137,175 | ) | ||||
Repayment of subordinated debt |
| (2,998,750 | ) | |||||
Payments on long-term debt |
(1,178,396 | ) | (5,755,902 | ) | ||||
Net cash (used in) provided by financing activities |
(18,669,083 | ) | 18,004,322 | |||||
Effect of exchange rate changes on cash |
1,021,999 | 498,142 | ||||||
Net increase in cash and cash equivalents |
6,612,143 | 8,131,605 | ||||||
Cash and cash equivalents, beginning of period |
8,855,402 | 21,134,396 | ||||||
Cash and cash equivalents, end of period |
$ | 15,467,545 | $ | 29,266,001 | ||||
Nine Months Ended September 30, | ||||||||
2009 | 2010 | |||||||
(Unaudited) | ||||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 10,332,833 | $ | 21,026,233 | ||||
Adjustment to reconcile net income to cash provided by investing activities: |
||||||||
Depreciation of project assets |
3,928,979 | 7,623,850 | ||||||
Depreciation of property and equipment |
1,033,373 | 1,234,415 | ||||||
Amortization of deferred financing fees |
161,662 | 474,403 | ||||||
Provision for bad debts |
327,558 | | ||||||
Write-down of long-term receivable |
| 2,111,000 | ||||||
Unrealized gain (loss) on interest rate swaps |
1,634,619 | (133,591 | ) | |||||
Stock-based compensation expense |
1,844,400 | 1,758,503 | ||||||
Deferred income taxes |
418,256 | | ||||||
Changes in operating assets and liabilities: |
||||||||
(Increase) decrease in: |
||||||||
Restricted cash draws |
21,612,096 | 108,936,357 | ||||||
Accounts receivable |
(21,059,142 | ) | (24,037,153 | ) | ||||
Accounts receivable retainage |
(1,353,728 | ) | (7,491,725 | ) | ||||
Federal ESPC receivable financing |
(27,056,209 | ) | (110,522,731 | ) | ||||
Inventory |
1,679,369 | (1,071,268 | ) | |||||
Costs and estimated earnings in excess of billings |
(9,709,704 | ) | (16,660,465 | ) | ||||
Prepaid expenses and other current assets |
(2,463,756 | ) | (5,518,403 | ) | ||||
Project development costs |
(2,899,742 | ) | (790,904 | ) | ||||
Other assets |
6,207,159 | 6,582,019 | ||||||
Increase (decrease) in: |
||||||||
Accounts payable and accrued expenses |
4,423,091 | 6,749,903 | ||||||
Billings in excess of cost and estimated earnings |
12,101,951 | 2,311,175 | ||||||
Other liabilities |
(5,315,700 | ) | 1,969,263 | |||||
Income taxes payable |
1,060,602 | (946,361 | ) | |||||
Net cash used in operating activities |
(3,092,033 | ) | (6,395,480 | ) | ||||
Cash flows from investing activities: |
||||||||
Purchases of property and equipment |
(1,430,604 | ) | (1,361,876 | ) | ||||
Purchases of project assets |
(14,587,244 | ) | (24,783,062 | ) | ||||
Acquisitions, net of cash received |
(674,110 | ) | (6,138,941 | ) | ||||
Net cash used in investing activities |
(16,691,958 | ) | (32,283,879 | ) | ||||
Cash flows from financing activities: |
||||||||
Payments of financing fees |
(79,905 | ) | (1,300,058 | ) | ||||
Proceeds from options and warrant exercises and issuance of stock |
| 60,062,759 | ||||||
Repurchase of stock |
(874,948 | ) | (768,970 | ) | ||||
Proceeds from (payments on) senior secured credit facility |
(4,449,242 | ) | (19,915,218 | ) | ||||
Proceeds from long-term debt financing |
28,074,858 | 812,398 | ||||||
Restricted cash |
(5,054,245 | ) | (5,956,433 | ) | ||||
Repayment of subordinated debt |
| (2,998,750 | ) | |||||
Payments on long-term debt |
(2,626,925 | ) | (10,548,598 | ) | ||||
Net cash provided by financing activities |
14,989,593 | 19,387,130 | ||||||
Effect of exchange rate changes on cash |
2,112,798 | 630,690 | ||||||
Net decrease in cash and cash equivalents |
(2,681,600 | ) | (18,661,539 | ) | ||||
Cash and cash equivalents, beginning of year |
18,149,145 | 47,927,540 | ||||||
Cash and cash equivalents, end of period |
$ | 15,467,545 | $ | 29,266,001 | ||||