• | Revenue of $227.8 million, an increase of 18.7% year-over-year |
• | Net income of $12.4 million, an increase of 2.6% year-over-year |
• | Net income per diluted share of $0.27 |
• | Revenue of $539.7 million, an increase of 23.0% year-over-year |
• | Net income of $26.5 million, an increase of 25.9% year-over-year |
• | Net income per diluted share of $0.58 |
• | Revenue generated from backlog was $191.8 million for the third quarter of 2011, an increase of 16.2% year-over-year. Excluding acquisitions, organic revenue generated from backlog increased 10.4%. |
• | All other revenue was $36.0 million for the third quarter of 2011, an increase of 33.9% year-over-year. Excluding acquisitions, all other revenue increased 10.0% organically. |
• | Operating cash flows were $10.3 million for the third quarter of 2011. |
• | Total construction backlog was $1.22 billion as of September 30, 2011 and consisted of: |
• | $438.0 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 |
• | $782.4 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. |
• | The July 2011 acquisition of Applied Energy Group, a premier consulting company providing energy efficiency and demand side management services to utilities and government agencies in the Northeast, Mid-Atlantic, Midwest and other regions, strengthens Ameresco's leadership position within energy efficiency while expanding the offering to utility customers. |
• | The August 2011 acquisition of APS Energy Services, a leading energy services company headquartered in Tempe, Arizona, which has been renamed Ameresco Southwest, strengthens Ameresco's presence in the Southwest region. |
December 31, | September 30, | ||||||
2010 | 2011 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 44,691,021 | $ | 31,734,749 | |||
Restricted cash | 9,197,447 | 12,687,929 | |||||
Accounts receivable, net | 68,584,304 | 143,856,513 | |||||
Accounts receivable retainage | 18,452,777 | 18,562,244 | |||||
Costs and estimated earnings in excess of billings | 35,556,425 | 55,093,772 | |||||
Inventory, net | 6,780,092 | 8,323,380 | |||||
Prepaid expenses and other current assets | 8,471,628 | 10,216,107 | |||||
Income tax receivable | 2,511,542 | 9,504,152 | |||||
Deferred income taxes | 9,908,240 | 12,668,142 | |||||
Project development costs | 7,556,345 | 8,170,697 | |||||
Total current assets | 211,709,821 | 310,817,685 | |||||
Federal ESPC receivable | 193,551,495 | 236,595,684 | |||||
Property and equipment, net | 5,406,387 | 6,684,625 | |||||
Project assets, net | 145,147,475 | 169,092,913 | |||||
Deferred financing fees, net | 3,412,186 | 3,722,968 | |||||
Goodwill | 20,580,995 | 41,907,853 | |||||
Intangible assets, net | — | 13,221,000 | |||||
Other assets | 4,598,980 | 6,390,885 | |||||
372,697,518 | 477,615,928 | ||||||
$ | 584,407,339 | $ | 788,433,613 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Current portion of long-term debt | $ | 4,722,118 | $ | 11,115,586 | |||
Accounts payable | 95,302,897 | 116,278,050 | |||||
Accrued expenses and other current liabilities | 12,517,671 | 12,260,683 | |||||
Billings in excess of cost and estimated earnings | 27,555,894 | 31,345,206 | |||||
Income taxes payable | 2,488,672 | 802,290 | |||||
Total current liabilities | 142,587,252 | 171,801,815 | |||||
Long-term debt, less current portion | 202,409,484 | 325,905,269 | |||||
Deferred income taxes | 12,013,799 | 24,125,829 | |||||
Deferred grant income | 4,200,929 | 6,109,406 | |||||
Other liabilities | 28,144,144 | 29,673,680 | |||||
$ | 246,768,356 | $ | 385,814,184 | ||||
December 31, | September 30, | ||||||
2010 | 2011 | ||||||
(Unaudited) | |||||||
Stockholders' equity: | |||||||
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, no shares issued and outstanding at December 31, 2010 and September 30, 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, 30,150,070 shares issued and 25,316,786 outstanding at September 30, 2011 | 2,793 | 3,015 | |||||
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 September 30, 2011 | 1,800 | 1,800 | |||||
Additional paid-in capital | 74,069,087 | 86,725,095 | |||||
Retained earnings | 126,609,101 | 153,088,094 | |||||
Accumulated other comprehensive income | 3,551,521 | 182,181 | |||||
Less - treasury stock, at cost, 4,833,284 shares and 4,833,284 shares, respectively | (9,182,571 | ) | (9,182,571 | ) | |||
Total stockholders' equity | 195,051,731 | 230,817,614 | |||||
$ | 584,407,339 | $ | 788,433,613 |
Three Months Ended September 30, | |||||||
2010 | 2011 | ||||||
(Unaudited) | |||||||
Revenue: | |||||||
Energy efficiency revenue | $ | 147,863,350 | $ | 188,718,434 | |||
Renewable energy revenue | 44,038,079 | 39,085,134 | |||||
191,901,429 | 227,803,568 | ||||||
Direct expenses: | |||||||
Energy efficiency expenses | 121,906,348 | 155,890,159 | |||||
Renewable energy expenses | 35,114,345 | 32,058,319 | |||||
157,020,693 | 187,948,478 | ||||||
Gross profit | 34,880,736 | 39,855,090 | |||||
Operating expenses: | |||||||
Salaries and benefits | 8,409,014 | 10,984,929 | |||||
Project development costs | 2,716,616 | 5,174,930 | |||||
General, administrative and other | 4,841,508 | 7,286,542 | |||||
15,967,138 | 23,446,401 | ||||||
Operating income | 18,913,598 | 16,408,689 | |||||
Other expenses, net | (2,010,030 | ) | (1,359,913 | ) | |||
Income before provision for income taxes | 16,903,568 | 15,048,776 | |||||
Income tax provision | (4,862,651 | ) | (2,690,196 | ) | |||
Net income | 12,040,917 | 12,358,580 | |||||
Other comprehensive income (loss): | |||||||
Unrealized loss from interest rate hedge, net of tax | (746,087 | ) | (1,775,890 | ) | |||
Foreign currency translation adjustment | 879,842 | (2,267,225 | ) | ||||
Comprehensive income | $ | 12,174,672 | $ | 8,315,465 | |||
Net income per share attributable to common shareholders: | |||||||
Basic | $ | 0.35 | $ | 0.29 | |||
Diluted | $ | 0.28 | $ | 0.27 | |||
Weighted average common shares outstanding: | |||||||
Basic | 34,434,352 | 43,116,861 | |||||
Diluted | 43,445,391 | 46,308,032 | |||||
OTHER NON-GAAP DISCLOSURES | |||||||
Gross margins: | |||||||
Energy efficiency revenue | 17.6 | % | 17.4 | % | |||
Renewable energy revenue | 20.3 | % | 18.0 | % | |||
Total | 18.2 | % | 17.5 | % | |||
Operating expenses as a percent of revenue | 8.3 | % | 10.3 | % | |||
Adjusted Earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA): | |||||||
Operating income | $ | 18,913,598 | $ | 16,408,689 | |||
Depreciation, amortization and impairment | 4,796,021 | 4,022,951 | |||||
Stock-based compensation | 651,352 | 432,624 | |||||
Adjusted EBITDA | $ | 24,360,971 | $ | 20,864,264 | |||
Adjusted EBITDA margin | 12.7 | % | 9.2 | % | |||
Construction backlog: | |||||||
Awarded | $ | 530,572,308 | $ | 782,358,080 | |||
Fully-contracted | 592,745,083 | 438,003,732 | |||||
Total construction backlog | $ | 1,123,317,391 | $ | 1,220,361,812 |
Nine Months Ended September 30, | |||||||
2010 | 2011 | ||||||
(Unaudited) | |||||||
Revenue: | |||||||
Energy efficiency revenue | $ | 323,578,578 | $ | 418,697,750 | |||
Renewable energy revenue | 115,305,944 | 121,007,530 | |||||
438,884,522 | 539,705,280 | ||||||
Direct expenses: | |||||||
Energy efficiency expenses | 267,495,450 | 344,499,360 | |||||
Renewable energy expenses | 91,955,471 | 95,216,122 | |||||
359,450,921 | 439,715,482 | ||||||
Gross profit | 79,433,601 | 99,989,798 | |||||
Operating expenses: | |||||||
Salaries and benefits | 21,893,756 | 29,232,330 | |||||
Project development costs | 7,893,558 | 14,839,723 | |||||
General, administrative and other | 16,156,553 | 17,848,103 | |||||
45,943,867 | 61,920,156 | ||||||
Operating income | 33,489,734 | 38,069,642 | |||||
Other expenses, net | (4,082,417 | ) | (3,248,919 | ) | |||
Income before provision for income taxes | 29,407,317 | 34,820,723 | |||||
Income tax provision | (8,381,084 | ) | (8,341,730 | ) | |||
Net income | 21,026,233 | 26,478,993 | |||||
Other comprehensive income (loss): | |||||||
Unrealized loss from interest rate hedge, net of tax | (2,297,667 | ) | (1,991,877 | ) | |||
Foreign currency translation adjustment | 689,797 | (1,377,463 | ) | ||||
Comprehensive income | $ | 19,418,363 | $ | 23,109,653 | |||
Net income per share attributable to common shareholders: | |||||||
Basic | $ | 1.02 | $ | 0.63 | |||
Diluted | $ | 0.53 | $ | 0.58 | |||
Weighted average common shares outstanding: | |||||||
Basic | 20,563,849 | 42,275,367 | |||||
Diluted | 39,513,507 | 45,377,104 | |||||
OTHER NON-GAAP DISCLOSURES | |||||||
Gross margins: | |||||||
Energy efficiency revenue | 17.3 | % | 17.7 | % | |||
Renewable energy revenue | 20.3 | % | 21.3 | % | |||
Total | 18.1 | % | 18.5 | % | |||
Operating expenses as a percent of revenue | 10.5 | % | 11.5 | % | |||
Adjusted Earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA): | |||||||
Operating income | $ | 33,489,734 | $ | 38,069,642 | |||
Depreciation, amortization and impairment | 8,858,265 | 9,555,286 | |||||
Stock-based compensation | 1,758,503 | 2,027,200 | |||||
Adjusted EBITDA | $ | 44,106,502 | $ | 49,652,128 | |||
Adjusted EBITDA margin | 10.0 | % | 9.2 | % |
Three Months Ended September 30, | |||||||
2010 | 2011 | ||||||
(Unaudited) | |||||||
Cash flows from operating activities: | |||||||
Net income | $ | 12,040,917 | $ | 12,358,580 | |||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Depreciation of project assets | 4,206,992 | 2,676,004 | |||||
Depreciation of property and equipment | 589,029 | 845,947 | |||||
Amortization of deferred financing fees | 306,398 | 106,776 | |||||
Amortization of intangible assets | — | 501,000 | |||||
Provision for bad debts | — | 154 | |||||
Stock-based compensation expense | 651,352 | 432,624 | |||||
Deferred income taxes | 792,193 | 4,097,831 | |||||
Excess tax benefits from stock-based compensation arrangements | — | (1,819,749 | ) | ||||
Changes in operating assets and liabilities: | |||||||
(Increase) decrease in: | |||||||
Restricted cash draws | 53,185,373 | 20,465,804 | |||||
Accounts receivable | (21,103,490 | ) | (45,257,456 | ) | |||
Accounts receivable retainage | (5,204,217 | ) | (915,906 | ) | |||
Federal ESPC receivable | (51,833,048 | ) | (21,910,697 | ) | |||
Inventory | 23,790 | 439,704 | |||||
Costs and estimated earnings in excess of billings | (8,859,603 | ) | 2,294,809 | ||||
Prepaid expenses and other current assets | (1,817,278 | ) | (1,149,248 | ) | |||
Project development costs | (872,942 | ) | (1,383,993 | ) | |||
Other assets | 4,560,707 | (1,554,165 | ) | ||||
Increase (decrease) in: | |||||||
Accounts payable and accrued expenses and other accrued liabilities | 25,940,748 | 38,898,718 | |||||
Billings in excess of cost and estimated earnings | (1,341,379 | ) | 4,517,219 | ||||
Other liabilities | 337,826 | (4,679,466 | ) | ||||
Income taxes payable | (2,541,814 | ) | 1,352,618 | ||||
Net cash provided by operating activities | 9,061,554 | 10,317,108 | |||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (877,781 | ) | (863,145 | ) | |||
Purchases of project assets | (12,415,691 | ) | (16,837,529 | ) | |||
Acquisitions, net of cash received | (6,138,941 | ) | (60,953,588 | ) | |||
Net cash used in investing activities | (19,432,413 | ) | (78,654,262 | ) | |||
Cash flows from financing activities: | |||||||
Excess tax benefits from stock-based compensation arrangements | — | 1,819,749 | |||||
Payments of financing fees | (402,625 | ) | (78,924 | ) | |||
Proceeds from exercises of options and issuance of stock | 59,649,893 | 905,557 | |||||
Proceeds from senior secured credit facility | (31,351,119 | ) | 41,571,429 | ||||
Restricted cash | (1,137,175 | ) | (1,136,862 | ) | |||
Repayment of subordinated debt | (2,998,750 | ) | — | ||||
Payments on long-term debt | (5,755,902 | ) | (1,444,018 | ) | |||
Net cash provided by financing activities | 18,004,322 | 41,636,931 | |||||
Effect of exchange rate changes on cash | 498,142 | (1,347,221 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 8,131,605 | (28,047,444 | ) | ||||
Cash and cash equivalents, beginning of period | 21,134,396 | 59,782,193 | |||||
Cash and cash equivalents, end of period | $ | 29,266,001 | $ | 31,734,749 |
Nine Months Ended September 30, | |||||||
2010 | 2011 | ||||||
(Unaudited) | |||||||
Cash flows from operating activities: | |||||||
Net income | $ | 21,026,233 | $ | 26,478,993 | |||
Adjustments to reconcile net income to cash used in operating activities: | |||||||
Depreciation of project assets | 7,623,850 | 7,126,617 | |||||
Depreciation of property and equipment | 1,234,415 | 1,927,669 | |||||
Amortization of deferred financing fees | 474,403 | 312,431 | |||||
Amortization of intangible assets | — | 501,000 | |||||
Provision for bad debts | — | 24,374 | |||||
Write-down of long-term receivable | 2,111,000 | — | |||||
Unrealized loss on interest rate swaps | 133,591 | — | |||||
Stock-based compensation expense | 1,758,503 | 2,027,200 | |||||
Deferred income taxes | — | 7,243,425 | |||||
Excess tax benefits from stock-based compensation arrangements | — | (5,721,385 | ) | ||||
Changes in operating assets and liabilities: | |||||||
(Increase) decrease in: | |||||||
Restricted cash draws | 108,936,357 | 98,682,379 | |||||
Accounts receivable | (24,037,153 | ) | (57,839,917 | ) | |||
Accounts receivable retainage | (7,491,725 | ) | (580,598 | ) | |||
Federal ESPC receivable | (110,522,731 | ) | (95,550,030 | ) | |||
Inventory | (1,071,268 | ) | (1,543,288 | ) | |||
Costs and estimated earnings in excess of billings | (16,660,465 | ) | (8,600,351 | ) | |||
Prepaid expenses and other current assets | (5,518,403 | ) | (1,812,750 | ) | |||
Project development costs | (790,904 | ) | (623,548 | ) | |||
Other assets | 6,582,019 | (1,758,820 | ) | ||||
Increase (decrease) in: | |||||||
Accounts payable and accrued expenses and other accrued liabilities | 6,749,903 | 15,041,335 | |||||
Billings in excess of cost and estimated earnings | 2,311,175 | 4,189,191 | |||||
Other liabilities | 1,702,081 | 97,928 | |||||
Income taxes payable | (946,361 | ) | (3,336,415 | ) | |||
Net cash used in operating activities | (6,395,480 | ) | (13,714,560 | ) | |||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (1,361,876 | ) | (2,669,779 | ) | |||
Purchases of project assets | (24,783,062 | ) | (31,558,420 | ) | |||
Grant awards received on project assets | — | 6,695,711 | |||||
Acquisitions, net of cash received | (6,138,941 | ) | (60,953,588 | ) | |||
Net cash used in investing activities | (32,283,879 | ) | (88,486,076 | ) | |||
Cash flows from financing activities: | |||||||
Excess tax benefits from stock-based compensation arrangements | — | 5,721,385 | |||||
Payments of financing fees | (1,300,058 | ) | (623,213 | ) | |||
Proceeds from exercises of options and issuance of stock | 60,062,759 | 4,907,645 | |||||
Repurchase of stock | (768,970 | ) | — | ||||
Proceeds from senior secured credit facility | (19,915,218 | ) | 81,571,429 | ||||
Proceeds from long-term debt financing | 812,398 | 5,500,089 | |||||
Restricted cash | (5,956,433 | ) | (2,812,428 | ) | |||
Repayment of subordinated debt | (2,998,750 | ) | — | ||||
Payments on long-term debt | (10,548,598 | ) | (3,998,627 | ) | |||
Net cash provided by financing activities | 19,387,130 | 90,266,280 | |||||
Effect of exchange rate changes on cash | 630,690 | (1,021,916 | ) | ||||
Net decrease in cash and cash equivalents | (18,661,539 | ) | (12,956,272 | ) | |||
Cash and cash equivalents, beginning of year | 47,927,540 | 44,691,021 | |||||
Cash and cash equivalents, end of period | $ | 29,266,001 | $ | 31,734,749 |