• | Revenue of $188.5 million, an increase of 5.1% year-over-year |
• | Net income of $8.2 million, an increase of 7.1% year-over-year |
• | Net income per diluted share of $0.18 |
• | Revenue of $728.2 million, an increase of 17.8% year-over-year |
• | Net income of $34.7 million, an increase of 20.9% year-over-year |
• | Net income per diluted share of $0.78 |
• | Revenue generated from backlog was $597.8 million for the full year 2011, an increase of 17.9% year-over-year. All other revenue was $130.4 million, an increase of 17.5% year-over-year. |
• | Operating cash flows were $43.8 million for the fourth quarter of 2011, compared to $27.2 million for the fourth quarter of 2010, an increase of 60.7% year-over-year. Full year 2011 operating cash flows were $32.0 million, compared to $20.8 million for full year 2010, an increase of 53.7% year-over-year. |
• | Total construction backlog was $1.22 billion as of December 31, 2011 and consisted of: |
• | $478.2 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 |
• | $741.2 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. |
• | The Company continues to expand organically as well as through acquisitions. In addition to opening six new offices in 2011, we also made three acquisitions. Applied Energy Group enhances our service offerings to utilities. APS Energy Services, now known as Ameresco Southwest, expands our footprint in the southwestern United States. The businesses we acquired from Energy and Power Solutions, Inc., xChangePoint® and energy projects, expand our service offerings for private sector commercial and industrial customers. |
• | The Company continues to develop Ameresco owned and operated small scale renewable energy power plants, with two in construction and four in the design phase as of year-end 2011. The Company is also expanding its experience in developing small scale renewable energy power plants for customers, with four such projects currently in the design or construction phases. |
• | In December 2011, our marquee project at the Savannah River Site Biomass Cogeneration Facility in Aiken, SC received its Final Acceptance Certificate from the U.S. Department of Energy Savannah River Operations Office for the completion of construction of the facility installed under the ESPC awarded to Ameresco in May 2009. |
December 31, | |||||||
2010 | 2011 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 44,691,021 | $ | 18,980,244 | |||
Restricted cash | 9,197,447 | 12,372,356 | |||||
Accounts receivable, net | 68,584,304 | 109,296,773 | |||||
Accounts receivable retainage | 18,452,777 | 26,089,216 | |||||
Costs and estimated earnings in excess of billings | 35,556,425 | 69,251,022 | |||||
Inventory, net | 6,780,092 | 8,635,633 | |||||
Prepaid expenses and other current assets | 8,471,628 | 8,992,963 | |||||
Income tax receivable | 2,511,542 | 7,771,055 | |||||
Deferred income taxes | 9,908,240 | 6,456,671 | |||||
Project development costs | 7,556,345 | 6,027,689 | |||||
Total current assets | 211,709,821 | 273,873,622 | |||||
Federal ESPC receivable | 193,551,495 | 110,212,186 | |||||
Property and equipment, net | 5,406,387 | 7,086,164 | |||||
Project assets, net | 145,147,475 | 177,854,734 | |||||
Deferred financing fees, net | 3,412,186 | 2,994,692 | |||||
Goodwill | 20,580,995 | 47,881,346 | |||||
Intangible assets, net | — | 12,727,528 | |||||
Other assets | 4,598,980 | 3,778,357 | |||||
372,697,518 | 362,535,007 | ||||||
$ | 584,407,339 | $ | 636,408,629 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Current portion of long-term debt | $ | 4,722,118 | $ | 11,563,983 | |||
Accounts payable | 95,302,897 | 93,506,089 | |||||
Accrued expenses and other current liabilities | 12,517,671 | 8,917,723 | |||||
Billings in excess of cost and estimated earnings | 27,555,894 | 26,982,858 | |||||
Income taxes payable | 2,488,672 | — | |||||
Total current liabilities | 142,587,252 | 140,970,653 | |||||
Long-term debt, less current portion | 202,409,484 | 196,401,588 | |||||
Deferred income taxes | 12,013,799 | 29,953,103 | |||||
Deferred grant income, net | 4,200,929 | 6,024,099 | |||||
Other liabilities | 28,144,144 | 28,529,867 | |||||
$ | 246,768,356 | $ | 260,908,657 | ||||
December 31, | |||||||
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 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, 30,713,837 shares issued and 25,880,553 outstanding at December 31, 2011 | 2,793 | 3,071 | |||||
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 2011 | 1,800 | 1,800 | |||||
Additional paid-in capital | 74,069,087 | 84,176,136 | |||||
Retained earnings | 126,609,101 | 161,335,621 | |||||
Accumulated other comprehensive income (loss) | 3,551,521 | (1,868,352 | ) | ||||
Minority interest in foreign subsidiary | — | 63,614 | |||||
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 | 234,529,319 | |||||
$ | 584,407,339 | $ | 636,408,629 |
Three Months Ended December 31, | |||||||
2010 | 2011 | ||||||
(Unaudited) | |||||||
Revenue: | |||||||
Energy efficiency revenue | $ | 131,751,118 | $ | 132,626,090 | |||
Renewable energy revenue | 47,591,019 | 55,868,948 | |||||
179,342,137 | 188,495,038 | ||||||
Direct expenses: | |||||||
Energy efficiency expenses | 110,589,160 | 102,463,531 | |||||
Renewable energy expenses | 37,484,158 | 50,975,158 | |||||
148,073,318 | 153,438,689 | ||||||
Gross profit | 31,268,819 | 35,056,349 | |||||
Operating expenses: | |||||||
Salaries and benefits | 8,827,730 | 11,513,950 | |||||
Project development costs | 5,783,237 | 3,442,006 | |||||
General, administrative and other | 4,155,289 | 7,999,039 | |||||
18,766,256 | 22,954,995 | ||||||
Operating income | 12,502,563 | 12,101,354 | |||||
Other expenses, net | (998,129 | ) | (1,428,385 | ) | |||
Income before provision for income taxes | 11,504,434 | 10,672,969 | |||||
Income tax provision | (3,804,551 | ) | (2,425,442 | ) | |||
Net income | 7,699,883 | 8,247,527 | |||||
Other comprehensive income (loss): | |||||||
Unrealized gain (loss) from interest rate hedge, net of tax | 1,363,788 | (2,457,112 | ) | ||||
Foreign currency translation adjustment | 963,633 | 406,579 | |||||
Comprehensive income | $ | 10,027,304 | $ | 6,196,994 | |||
Net income per share attributable to common shareholders: | |||||||
Basic | $ | 0.19 | $ | 0.19 | |||
Diluted | $ | 0.17 | $ | 0.18 | |||
Weighted average common shares outstanding: | |||||||
Basic | 41,086,998 | 43,514,982 | |||||
Diluted | 46,147,728 | 46,038,358 | |||||
OTHER NON-GAAP DISCLOSURES | |||||||
Gross margins: | |||||||
Energy efficiency revenue | 16.1 | % | 22.7 | % | |||
Renewable energy revenue | 21.2 | % | 8.8 | % | |||
Total | 17.4 | % | 18.6 | % | |||
Operating expenses as a percent of revenue | 10.5 | % | 12.2 | % | |||
Adjusted Earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA): | |||||||
Operating income | $ | 12,502,563 | $ | 12,101,354 | |||
Depreciation, amortization and impairment | 2,560,922 | 4,453,451 | |||||
Stock-based compensation | 740,157 | 838,506 | |||||
Adjusted EBITDA | $ | 15,803,642 | $ | 17,393,311 | |||
Adjusted EBITDA margin | 8.8 | % | 9.2 | % | |||
Construction backlog: | |||||||
Awarded | $ | 482,878,178 | $ | 741,219,444 | |||
Fully-contracted | 651,232,855 | 478,165,860 | |||||
Total construction backlog | $ | 1,134,111,033 | $ | 1,219,385,304 |
Years Ended December 31, | |||||||
2010 | 2011 | ||||||
(Unaudited) | |||||||
Revenue: | |||||||
Energy efficiency revenue | $ | 455,329,696 | $ | 551,323,840 | |||
Renewable energy revenue | 162,896,963 | 176,876,478 | |||||
618,226,659 | 728,200,318 | ||||||
Direct expenses: | |||||||
Energy efficiency expenses | 378,084,610 | 446,962,891 | |||||
Renewable energy expenses | 129,439,629 | 146,191,280 | |||||
507,524,239 | 593,154,171 | ||||||
Gross profit | 110,702,420 | 135,046,147 | |||||
Operating expenses: | |||||||
Salaries and benefits | 30,721,486 | 40,746,280 | |||||
Project development costs | 13,676,795 | 18,281,729 | |||||
General, administrative and other | 20,311,842 | 25,847,142 | |||||
64,710,123 | 84,875,151 | ||||||
Operating income | 45,992,297 | 50,170,996 | |||||
Other expenses, net | (5,080,546 | ) | (4,677,304 | ) | |||
Income before provision for income taxes | 40,911,751 | 45,493,692 | |||||
Income tax provision | (12,185,635 | ) | (10,767,172 | ) | |||
Net income | 28,726,116 | 34,726,520 | |||||
Other comprehensive income (loss): | |||||||
Unrealized loss from interest rate hedge, net of tax | (933,879 | ) | (4,448,989 | ) | |||
Foreign currency translation adjustment | 1,653,430 | (970,884 | ) | ||||
Comprehensive income | $ | 29,445,667 | $ | 29,306,647 | |||
Net income per share attributable to common shareholders: | |||||||
Basic | $ | 1.12 | $ | 0.82 | |||
Diluted | $ | 0.69 | $ | 0.78 | |||
Weighted average common shares outstanding: | |||||||
Basic | 25,728,314 | 42,587,818 | |||||
Diluted | 41,513,482 | 44,770,880 | |||||
OTHER NON-GAAP DISCLOSURES | |||||||
Gross margins: | |||||||
Energy efficiency revenue | 17.0 | % | 18.9 | % | |||
Renewable energy revenue | 20.5 | % | 17.3 | % | |||
Total | 17.9 | % | 18.5 | % | |||
Operating expenses as a percent of revenue | 10.5 | % | 11.7 | % | |||
Adjusted Earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA): | |||||||
Operating income | $ | 45,992,297 | $ | 50,170,996 | |||
Depreciation, amortization and impairment | 11,419,186 | 14,008,737 | |||||
Stock-based compensation | 2,498,660 | 2,865,706 | |||||
Adjusted EBITDA | $ | 59,910,143 | $ | 67,045,439 | |||
Adjusted EBITDA margin | 9.7 | % | 9.2 | % |
Three Months Ended December 31, | |||||||
2010 | 2011 | ||||||
(Unaudited) | |||||||
Cash flows from operating activities: | |||||||
Net income | $ | 7,699,883 | $ | 8,247,527 | |||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Depreciation of project assets | 2,011,041 | 2,574,782 | |||||
Depreciation of property and equipment | 549,880 | 627,197 | |||||
Amortization of deferred financing fees | 92,369 | 749,351 | |||||
Amortization of intangible assets | — | 1,251,472 | |||||
Provision for bad debts | 126,219 | — | |||||
Gain on asset sales | — | (514,828 | ) | ||||
Stock-based compensation expense | 740,157 | 838,506 | |||||
Deferred income taxes | (253,975 | ) | 12,599,213 | ||||
Excess tax benefits from stock-based compensation arrangements | (2,010,221 | ) | 4,887,568 | ||||
Changes in operating assets and liabilities: | |||||||
(Increase) decrease in: | |||||||
Restricted cash draws | 42,086,566 | 39,802,985 | |||||
Accounts receivable | 23,731,488 | 34,977,928 | |||||
Accounts receivable retainage | (827,561 | ) | (7,206,397 | ) | |||
Federal ESPC receivable | (49,933,020 | ) | (4,231,126 | ) | |||
Inventory | (1,470,915 | ) | (265,060 | ) | |||
Costs and estimated earnings in excess of billings | (2,651,040 | ) | (13,851,665 | ) | |||
Prepaid expenses and other current assets | 5,197,329 | 1,270,265 | |||||
Project development costs | 1,716,435 | 2,440,432 | |||||
Other assets | (606,409 | ) | 2,328,774 | ||||
Increase (decrease) in: | |||||||
Accounts payable and accrued expenses and other accrued liabilities | (2,824,187 | ) | (30,477,986 | ) | |||
Billings in excess of cost and estimated earnings | (3,569,795 | ) | (4,641,993 | ) | |||
Other liabilities | 6,774,884 | (3,635,189 | ) | ||||
Income taxes payable | 666,161 | (3,975,523 | ) | ||||
Net cash provided by operating activities | 27,245,289 | 43,796,233 | |||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (1,251,391 | ) | (780,161 | ) | |||
Purchases of project assets | (12,230,199 | ) | (16,899,490 | ) | |||
Proceeds from sales of assets held for sale | — | 7,800,000 | |||||
Acquisitions, net of cash received | (164,065 | ) | (5,279,260 | ) | |||
Net cash used in investing activities | (13,645,655 | ) | (15,158,911 | ) | |||
Cash flows from financing activities: | |||||||
Excess tax benefits from stock-based compensation arrangements | 2,010,221 | (4,887,568 | ) | ||||
Payments of financing fees | (73,113 | ) | (21,075 | ) | |||
Proceeds from exercises of options and warrants | 10,380 | 1,500,159 | |||||
Proceeds from senior secured credit facility | — | (39,428,571 | ) | ||||
(Payments) proceeds from long-term debt financing | (65,036 | ) | 7,481,602 | ||||
Minority interest in foreign subsidiary | — | 63,614 | |||||
Restricted cash | (342,555 | ) | (5,011,484 | ) | |||
Payments on long-term debt | (422,058 | ) | (1,075,784 | ) | |||
Net cash provided by (used in) financing activities | 1,117,839 | (41,379,107 | ) | ||||
Effect of exchange rate changes on cash | 707,547 | (12,720 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 15,425,020 | (12,754,505 | ) | ||||
Cash and cash equivalents, beginning of period | 29,266,001 | 31,734,749 | |||||
Cash and cash equivalents, end of year | $ | 44,691,021 | $ | 18,980,244 |
Years Ended December 31, | |||||||
2010 | 2011 | ||||||
(Unaudited) | |||||||
Cash flows from operating activities: | |||||||
Net income | $ | 28,726,116 | $ | 34,726,520 | |||
Adjustments to reconcile net income to cash used in operating activities: | |||||||
Depreciation of project assets | 9,634,891 | 9,701,399 | |||||
Depreciation of property and equipment | 1,784,295 | 2,554,866 | |||||
Amortization of deferred financing fees | 566,772 | 1,061,782 | |||||
Amortization of intangible assets | — | 1,752,472 | |||||
Provision for bad debts | 126,219 | 24,374 | |||||
Gain on asset sales | — | (514,828 | ) | ||||
Write-down of long-term receivable | 2,111,000 | — | |||||
Unrealized loss on interest rate swaps | 133,591 | — | |||||
Stock-based compensation expense | 2,498,660 | 2,865,706 | |||||
Deferred income taxes | (253,975 | ) | 19,842,638 | ||||
Excess tax benefits from stock-based compensation arrangements | (2,010,221 | ) | (833,817 | ) | |||
Changes in operating assets and liabilities: | |||||||
(Increase) decrease in: | |||||||
Restricted cash draws | 151,022,923 | 138,485,364 | |||||
Accounts receivable | (305,665 | ) | (22,861,989 | ) | |||
Accounts receivable retainage | (8,319,286 | ) | (7,786,995 | ) | |||
Federal ESPC receivable | (160,455,751 | ) | (99,781,156 | ) | |||
Inventory | (2,542,183 | ) | (1,808,348 | ) | |||
Costs and estimated earnings in excess of billings | (19,311,505 | ) | (22,452,016 | ) | |||
Prepaid expenses and other current assets | (321,074 | ) | (542,485 | ) | |||
Project development costs | 925,531 | 1,816,884 | |||||
Other assets | 5,975,610 | 569,954 | |||||
Increase (decrease) in: | |||||||
Accounts payable and accrued expenses and other accrued liabilities | 3,925,716 | (13,480,285 | ) | ||||
Billings in excess of cost and estimated earnings | (1,258,620 | ) | (452,802 | ) | |||
Other liabilities | 8,476,965 | (3,537,261 | ) | ||||
Income taxes payable | (280,200 | ) | (7,311,938 | ) | |||
Net cash provided by operating activities | 20,849,809 | 32,038,039 | |||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (2,613,267 | ) | (3,449,940 | ) | |||
Purchases of project assets | (37,825,750 | ) | (48,457,910 | ) | |||
Grant awards received on project assets | 812,489 | 6,695,711 | |||||
Additional purchase price paid on 2010 acquisition | — | (1,956,366 | ) | ||||
Proceeds from sales of assets held for sale | — | 7,800,000 | |||||
Acquisitions, net of cash received | (6,303,006 | ) | (66,232,848 | ) | |||
Net cash used in investing activities | (45,929,534 | ) | (105,601,353 | ) | |||
AMERESCO, INC. | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS — (Continued) | |||||||
Years Ended December 31, | |||||||
2010 | 2011 | ||||||
(Unaudited) | |||||||
Cash flows from financing activities: | |||||||
Excess tax benefits from stock-based compensation arrangements | 2,010,221 | 833,817 | |||||
Payments of financing fees | (1,373,171 | ) | (644,288 | ) | |||
Proceeds from exercises of options and issuance of warrants | 60,073,139 | 6,407,804 | |||||
Repurchase of stock | (768,970 | ) | — | ||||
Proceeds from senior secured credit facility | (19,915,218 | ) | 42,142,858 | ||||
Proceeds from long-term debt financing | 747,362 | 12,981,691 | |||||
Minority interest in foreign subsidiary | — | 63,614 | |||||
Restricted cash | (6,298,988 | ) | (7,823,912 | ) | |||
Repayment of subordinated debt | (2,998,750 | ) | — | ||||
Payments on long-term debt | (10,970,656 | ) | (5,074,411 | ) | |||
Net cash provided by financing activities | 20,504,969 | 48,887,173 | |||||
Effect of exchange rate changes on cash | 1,338,237 | (1,034,636 | ) | ||||
Net decrease in cash and cash equivalents | (3,236,519 | ) | (25,710,777 | ) | |||
Cash and cash equivalents, beginning of year | 47,927,540 | 44,691,021 | |||||
Cash and cash equivalents, end of year | $ | 44,691,021 | $ | 18,980,244 |