• | Revenue of $164.1 million |
• | Net income of $5.2 million |
• | Net income per diluted share of $0.11 |
• | Revenue of $310.7 million |
• | Net income of $6.7 million |
• | Net income per diluted share of $0.14 |
• | Revenue generated from backlog was $119.8 million for the second quarter of 2012, a decrease of 12.7% year-over-year. |
• | All other revenue was $44.8 million for the second quarter of 2012, an increase of 55.6% year-over-year. |
• | Operating cash flows were $6.3 million for the second quarter of 2012. |
• | Total construction backlog was $1.3 billion as of June 30, 2012 and consisted of: |
• | $390.7 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 |
• | $909.6 million of awarded projects, which represents estimated future revenue for projects for which contracts are expected to be signed over the next 6-12 months, on average. |
AMERESCO, INC. CONSOLIDATED BALANCE SHEETS | |||||||
December 31, | June 30, | ||||||
2011 | 2012 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 26,277,366 | $ | 28,909,987 | |||
Restricted cash | 12,372,356 | 15,030,844 | |||||
Accounts receivable, net | 109,296,773 | 96,645,375 | |||||
Accounts receivable retainage | 26,089,216 | 24,026,640 | |||||
Costs and estimated earnings in excess of billings | 69,251,022 | 57,044,768 | |||||
Inventory, net | 8,635,633 | 9,145,857 | |||||
Prepaid expenses and other current assets | 8,992,963 | 10,676,285 | |||||
Income tax receivable | 9,662,771 | 8,227,139 | |||||
Deferred income taxes | 6,456,671 | 6,456,671 | |||||
Project development costs | 6,027,689 | 7,183,871 | |||||
Total current assets | 283,062,460 | 263,347,437 | |||||
Federal ESPC receivable | 110,212,186 | 135,987,922 | |||||
Property and equipment, net | 7,086,164 | 8,185,920 | |||||
Project assets, net | 177,854,734 | 188,063,492 | |||||
Deferred financing fees, net | 2,994,692 | 2,743,539 | |||||
Goodwill | 47,881,346 | 47,878,130 | |||||
Intangible assets, net | 12,727,528 | 9,756,506 | |||||
Other assets | 3,778,357 | 4,712,843 | |||||
362,535,007 | 397,328,352 | ||||||
$ | 645,597,467 | $ | 660,675,789 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Current portion of long-term debt | $ | 11,563,983 | $ | 12,268,729 | |||
Accounts payable | 93,506,089 | 80,896,210 | |||||
Accrued expenses and other current liabilities | 8,917,723 | 11,970,730 | |||||
Book overdraft | 7,297,122 | — | |||||
Billings in excess of cost and estimated earnings | 26,982,858 | 35,223,966 | |||||
Total current liabilities | 148,267,775 | 140,359,635 | |||||
Long-term debt, less current portion | 196,401,588 | 207,831,163 | |||||
Deferred income taxes | 29,953,103 | 29,443,957 | |||||
Deferred grant income | 6,024,099 | 5,853,486 | |||||
Other liabilities | 28,529,867 | 28,640,685 | |||||
$ | 260,908,657 | $ | 271,769,291 | ||||
AMERESCO, INC. CONSOLIDATED BALANCE SHEETS - (Continued) | |||||||
December 31, | June 30, | ||||||
2011 | 2012 | ||||||
(Unaudited) | |||||||
Stockholders' equity: | |||||||
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, no shares issued and outstanding at December 31, 2011 and June 30, 2012 | $ | — | $ | — | |||
Class A common stock, $0.0001 par value, 500,000,000 shares authorized, 30,713,837 shares issued and 25,880,553 outstanding at December 31, 2011, 31,469,300 shares issued and 26,636,016 outstanding at June 30, 2012 | 3,071 | 3,147 | |||||
Class B common stock, $0.0001 par value, 144,000,000 shares authorized, 18,000,000 shares issued and outstanding at December 31, 2011 and June 30, 2012 | 1,800 | 1,800 | |||||
Additional paid-in capital | 86,067,852 | 91,192,620 | |||||
Retained earnings | 161,335,621 | 168,009,787 | |||||
Accumulated other comprehensive loss | (1,868,352 | ) | (1,549,234 | ) | |||
Minority interest | 63,614 | 71,314 | |||||
Less — treasury stock, at cost, 4,833,284 shares, respectively | (9,182,571 | ) | (9,182,571 | ) | |||
Total stockholders' equity | 236,421,035 | 248,546,863 | |||||
$ | 645,597,467 | $ | 660,675,789 |
Three Months Ended June 30, | |||||||
2011 | 2012 | ||||||
(Unaudited) | |||||||
Revenue: | |||||||
Energy efficiency revenue | $ | 123,786,051 | $ | 119,819,117 | |||
Renewable energy revenue | 41,695,892 | 44,280,788 | |||||
165,481,943 | 164,099,905 | ||||||
Direct expenses: | |||||||
Energy efficiency expenses | 102,247,778 | 97,873,272 | |||||
Renewable energy expenses | 31,082,490 | 35,068,772 | |||||
133,330,268 | 132,942,044 | ||||||
Gross profit | 32,151,675 | 31,157,861 | |||||
Operating expenses: | |||||||
Salaries and benefits | 8,162,669 | 11,558,732 | |||||
Project development costs | 5,263,216 | 3,830,866 | |||||
General, administrative and other | 5,368,227 | 7,509,639 | |||||
18,794,112 | 22,899,237 | ||||||
Operating income | 13,357,563 | 8,258,624 | |||||
Other expenses, net | (988,569 | ) | (1,063,126 | ) | |||
Income before provision for income taxes | 12,368,994 | 7,195,498 | |||||
Income tax provision | (3,536,866 | ) | (2,026,630 | ) | |||
Net income | $ | 8,832,128 | $ | 5,168,868 | |||
Net income per share attributable to common shareholders: | |||||||
Basic | $ | 0.21 | $ | 0.12 | |||
Diluted | $ | 0.19 | $ | 0.11 | |||
Weighted average common shares outstanding: | |||||||
Basic | 42,367,242 | 44,541,025 | |||||
Diluted | 45,907,748 | 46,359,323 | |||||
OTHER NON-GAAP DISCLOSURES | |||||||
Gross margins: | |||||||
Energy efficiency revenue | 17.4 | % | 18.3 | % | |||
Renewable energy revenue | 25.5 | % | 20.8 | % | |||
Total | 19.4 | % | 19.0 | % | |||
Operating expenses as a percent of revenue | 11.4 | % | 14.0 | % | |||
Adjusted Earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA): | |||||||
Operating income | $ | 13,357,563 | $ | 8,258,624 | |||
Depreciation and amortization | 2,849,934 | 4,769,256 | |||||
Stock-based compensation | 735,526 | 892,607 | |||||
Adjusted EBITDA | $ | 16,943,023 | $ | 13,920,487 | |||
Adjusted EBITDA margin | 10.2 | % | 8.5 | % | |||
Construction backlog: | |||||||
Awarded | $ | 648,110,662 | $ | 909,644,256 | |||
Fully-contracted | 507,285,241 | 390,695,907 | |||||
Total construction backlog | $ | 1,155,395,903 | $ | 1,300,340,163 |
AMERESCO, INC. CONSOLIDATED STATEMENTS OF INCOME | |||||||
Six Months Ended June 30, | |||||||
2011 | 2012 | ||||||
(Unaudited) | |||||||
Revenue: | |||||||
Energy efficiency revenue | $ | 229,979,316 | $ | 233,201,787 | |||
Renewable energy revenue | 81,922,396 | 77,471,487 | |||||
311,901,712 | 310,673,274 | ||||||
Direct expenses: | |||||||
Energy efficiency expenses | 188,609,201 | 187,493,047 | |||||
Renewable energy expenses | 63,157,803 | 62,798,556 | |||||
251,767,004 | 250,291,603 | ||||||
Gross profit | 60,134,708 | 60,381,671 | |||||
Operating expenses: | |||||||
Salaries and benefits | 18,247,401 | 25,927,944 | |||||
Project development costs | 9,664,793 | 8,047,218 | |||||
General, administrative and other | 10,561,561 | 14,723,095 | |||||
38,473,755 | 48,698,257 | ||||||
Operating income | 21,660,953 | 11,683,414 | |||||
Other expenses, net | (1,889,006 | ) | (2,400,731 | ) | |||
Income before provision for income taxes | 19,771,947 | 9,282,683 | |||||
Income tax provision | (5,651,534 | ) | (2,608,517 | ) | |||
Net income | $ | 14,120,413 | $ | 6,674,166 | |||
Net income per share attributable to common shareholders: | |||||||
Basic | $ | 0.34 | $ | 0.15 | |||
Diluted | $ | 0.31 | $ | 0.14 | |||
Weighted average common shares outstanding: | |||||||
Basic | 41,847,646 | 44,343,059 | |||||
Diluted | 45,285,650 | 46,143,932 | |||||
OTHER NON-GAAP DISCLOSURES | |||||||
Gross margins: | |||||||
Energy efficiency revenue | 18.0 | % | 19.6 | % | |||
Renewable energy revenue | 22.9 | % | 18.9 | % | |||
Total | 19.3 | % | 19.4 | % | |||
Operating expenses as a percent of revenue | 12.3 | % | 15.7 | % | |||
Adjusted Earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA): | |||||||
Operating income | $ | 21,660,953 | $ | 11,683,414 | |||
Depreciation and amortization | 5,532,335 | 9,708,503 | |||||
Stock-based compensation | 1,594,576 | 1,674,060 | |||||
Adjusted EBITDA | $ | 28,787,864 | $ | 23,065,977 | |||
Adjusted EBITDA margin | 9.2 | % | 7.4 | % |
Three Months Ended June 30, | |||||||
2011 | 2012 | ||||||
(Unaudited) | |||||||
Cash flows from operating activities: | |||||||
Net income | $ | 8,832,128 | $ | 5,168,868 | |||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Depreciation of project assets | 2,240,001 | 2,850,977 | |||||
Depreciation of property and equipment | 609,933 | 603,501 | |||||
Amortization of deferred financing fees | 94,822 | 138,191 | |||||
Amortization of intangible assets | — | 1,314,778 | |||||
Provision for bad debts | 34 | 24,107 | |||||
Gain on sale of asset | — | (800,000 | ) | ||||
Stock-based compensation expense | 735,526 | 892,607 | |||||
Deferred income taxes | 453,460 | 43,697 | |||||
Excess tax benefits from stock-based compensation arrangements | (3,510,339 | ) | (448,916 | ) | |||
Changes in operating assets and liabilities: | |||||||
(Increase) decrease in: | |||||||
Restricted cash draws | 37,303,666 | 14,069,843 | |||||
Accounts receivable | (4,961,611 | ) | (11,967,540 | ) | |||
Accounts receivable retainage | (1,104,244 | ) | (3,613,426 | ) | |||
Federal ESPC receivable | (37,132,797 | ) | (11,705,599 | ) | |||
Inventory | (349,778 | ) | (369,359 | ) | |||
Costs and estimated earnings in excess of billings | (4,751,958 | ) | (5,583,166 | ) | |||
Prepaid expenses and other current assets | (642,293 | ) | (4,504,563 | ) | |||
Project development costs | (160,631 | ) | (324,126 | ) | |||
Other assets | (823,972 | ) | (766,682 | ) | |||
Increase (decrease) in: | |||||||
Accounts payable, accrued expenses and other accrued liabilities | (653,233 | ) | 11,766,758 | ||||
Billings in excess of cost and estimated earnings | 4,218,481 | 7,346,139 | |||||
Other liabilities | 434,854 | (345,461 | ) | ||||
Income taxes payable | 757,554 | 2,476,787 | |||||
Net cash provided by operating activities | 1,589,603 | 6,267,415 | |||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (911,404 | ) | (1,105,037 | ) | |||
Purchases of project assets | (8,129,688 | ) | (9,695,695 | ) | |||
Net cash used in investing activities | (9,041,092 | ) | (10,800,732 | ) | |||
Cash flows from financing activities: | |||||||
Excess tax benefits from stock-based compensation arrangements | 3,510,339 | 448,916 | |||||
Payments of financing fees | (493,700 | ) | — | ||||
Proceeds from exercises of options | 2,585,997 | 735,839 | |||||
Proceeds from (payments on) senior secured credit facility | 35,000,000 | (1,428,571 | ) | ||||
Restricted cash | (1,087,999 | ) | (3,367,515 | ) | |||
Payments on long-term debt | (1,642,731 | ) | (1,327,493 | ) | |||
Net cash provided by (used in) financing activities | 37,871,906 | (4,938,824 | ) | ||||
Effect of exchange rate changes on cash | 12,140 | (53,234 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 30,432,557 | (9,525,375 | ) | ||||
Cash and cash equivalents, beginning of period | 29,349,636 | 38,435,362 | |||||
Cash and cash equivalents, end of period | $ | 59,782,193 | $ | 28,909,987 |
AMERESCO, INC. | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
Six Months Ended June 30, | |||||||
2011 | 2012 | ||||||
(Unaudited) | |||||||
Cash flows from operating activities: | |||||||
Net income | $ | 14,120,413 | $ | 6,674,166 | |||
Adjustments to reconcile net income to cash (used in) provided by operating activities: | |||||||
Depreciation of project assets | 4,450,613 | 5,456,007 | |||||
Depreciation of property and equipment | 1,081,722 | 1,281,474 | |||||
Amortization of deferred financing fees | 205,655 | 271,478 | |||||
Amortization of intangible assets | — | 2,971,022 | |||||
Provision for bad debts | 24,220 | 77,743 | |||||
Gain on sale of asset | — | (800,000 | ) | ||||
Stock-based compensation expense | 1,594,576 | 1,674,060 | |||||
Deferred income taxes | 3,145,594 | (506,631 | ) | ||||
Excess tax benefits from stock-based compensation arrangements | (3,901,636 | ) | (1,651,513 | ) | |||
Changes in operating assets and liabilities: | |||||||
(Increase) decrease in: | |||||||
Restricted cash draws | 78,216,575 | 24,152,657 | |||||
Accounts receivable | (12,582,461 | ) | 12,569,643 | ||||
Accounts receivable retainage | 335,308 | 2,079,382 | |||||
Federal ESPC receivable | (73,639,333 | ) | (25,775,736 | ) | |||
Inventory | (1,982,992 | ) | (510,224 | ) | |||
Costs and estimated earnings in excess of billings | (10,895,160 | ) | 12,197,386 | ||||
Prepaid expenses and other current assets | (663,502 | ) | (1,679,160 | ) | |||
Project development costs | 760,445 | (1,156,085 | ) | ||||
Other assets | (204,655 | ) | (941,282 | ) | |||
Increase (decrease) in: | |||||||
Accounts payable and accrued expenses and other accrued liabilities | (23,857,383 | ) | (8,760,740 | ) | |||
Billings in excess of cost and estimated earnings | (328,028 | ) | 8,243,890 | ||||
Other liabilities | 4,777,394 | 525,181 | |||||
Income taxes payable | (4,689,033 | ) | 3,083,458 | ||||
Net cash (used in) provided by operating activities | (24,031,668 | ) | 39,476,176 | ||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (1,806,634 | ) | (2,381,570 | ) | |||
Purchases of project assets | (14,720,891 | ) | (19,698,641 | ) | |||
Grant awards and rebates received on project assets | 6,695,711 | 3,838,766 | |||||
Net cash used in investing activities | (9,831,814 | ) | (18,241,445 | ) | |||
Cash flows from financing activities: | |||||||
Excess tax benefits from stock-based compensation arrangements | 3,901,636 | 1,651,513 | |||||
Book overdraft | — | (7,297,122 | ) | ||||
Payments of financing fees | (544,289 | ) | (20,325 | ) | |||
Proceeds from exercises of options | 4,002,088 | 1,799,271 | |||||
Proceeds from (payments on) senior secured credit facility | 40,000,000 | (7,857,142 | ) | ||||
Proceeds from long-term debt financing | 5,500,089 | — | |||||
Minority interest | — | 7,700 | |||||
Restricted cash | (1,675,566 | ) | (4,798,107 | ) | |||
Payments on long-term debt | (2,554,609 | ) | (2,134,957 | ) | |||
Net cash provided by (used in) financing activities | 48,629,349 | (18,649,169 | ) | ||||
Effect of exchange rate changes on cash | 325,305 | 47,059 | |||||
Net increase in cash and cash equivalents | 15,091,172 | 2,632,621 | |||||
Cash and cash equivalents, beginning of year | 44,691,021 | 26,277,366 | |||||
Cash and cash equivalents, end of period | $ | 59,782,193 | $ | 28,909,987 |