• | Second quarter revenue of $126.3 million |
• | Revenue generated from backlog was $80.0 million for the second quarter of 2013, a decrease of 33% year-over-year. |
• | All other revenue was $46.3 million for the second quarter of 2013, an increase of 3% year-over-year. |
• | Operating cash flows were $6.9 million for the second quarter of 2013. |
• | Total construction backlog was $1.4 billion as of June 30, 2013 and consisted of: |
• | $324.0 million of fully-contracted backlog of signed customer contracts for installation or construction of projects, which we expect to convert into revenue over the next 12-24 months, on average; and |
• | $1.1 billion of awarded projects representing projects in development for which we do not have signed contracts. Historically, awarded projects have converted to signed contracts over 6-12 months on average. However, we have been experiencing an unusually sustained lengthening of conversion times of awarded projects to signed contracts, a trend we expect to continue. |
AMERESCO, INC. CONSOLIDATED BALANCE SHEETS | |||||||
June 30, | December 31, | ||||||
2013 | 2012 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 17,629,963 | $ | 63,347,645 | |||
Restricted cash | 26,239,829 | 26,358,908 | |||||
Accounts receivable, net | 76,760,410 | 84,124,627 | |||||
Accounts receivable retainage | 24,758,030 | 23,197,784 | |||||
Costs and estimated earnings in excess of billings | 52,564,885 | 62,096,284 | |||||
Inventory, net | 11,548,873 | 9,502,289 | |||||
Prepaid expenses and other current assets | 11,022,225 | 9,600,619 | |||||
Income tax receivable | 5,760,545 | 5,385,242 | |||||
Deferred income taxes | 4,480,218 | 5,190,718 | |||||
Project development costs | 11,458,555 | 9,038,725 | |||||
Total current assets | 242,223,533 | 297,842,841 | |||||
Federal ESPC receivable | 60,900,144 | 91,854,808 | |||||
Property and equipment, net | 9,422,097 | 9,387,218 | |||||
Project assets, net | 229,428,429 | 207,274,982 | |||||
Deferred financing fees, net | 6,103,850 | 5,746,177 | |||||
Goodwill | 55,239,777 | 48,968,390 | |||||
Intangible assets, net | 11,490,617 | 9,742,878 | |||||
Other assets | 5,140,628 | 4,654,709 | |||||
377,725,542 | 377,629,162 | ||||||
$ | 619,949,075 | $ | 675,472,003 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Current portion of long-term debt | $ | 13,921,986 | $ | 12,452,678 | |||
Accounts payable | 67,318,276 | 101,007,455 | |||||
Accrued expenses and other current liabilities | 10,667,868 | 13,157,024 | |||||
Billings in excess of cost and estimated earnings | 22,525,255 | 22,271,655 | |||||
Total current liabilities | 114,433,385 | 148,888,812 | |||||
Long-term debt, less current portion | 186,354,568 | 201,922,172 | |||||
Deferred income taxes | 23,273,100 | 24,888,229 | |||||
Deferred grant income | 7,864,941 | 7,590,730 | |||||
Other liabilities | 26,001,304 | 30,362,869 | |||||
$ | 243,493,913 | $ | 264,764,000 |
AMERESCO, INC. | |||||||
CONSOLIDATED BALANCE SHEETS — (Continued) | |||||||
June 30, | December 31, | ||||||
2013 | 2012 | ||||||
(Unaudited) | |||||||
Stockholders’ equity: | |||||||
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, no shares issued and outstanding at June 30, 2013 and December 31, 2012 | $ | — | $ | — | |||
Class A common stock, $0.0001 par value, 500,000,000 shares authorized, 32,384,648 shares issued and 27,551,364 outstanding at June 30, 2013, 32,019,982 shares issued and 27,186,698 outstanding at December 31, 2012 | 3,238 | 3,202 | |||||
Class B common stock, $0.0001 par value, 144,000,000 shares authorized, 18,000,000 shares issued and outstanding at June 30, 2013 and December 31, 2012 | 1,800 | 1,800 | |||||
Additional paid-in capital | 96,024,019 | 93,141,432 | |||||
Retained earnings | 173,464,894 | 177,169,717 | |||||
Accumulated other comprehensive income | 1,697,350 | 713,194 | |||||
Non-controlling interest | 13,047 | (27,583 | ) | ||||
Less - treasury stock, at cost, 4,833,284 shares | (9,182,571 | ) | (9,182,571 | ) | |||
Total stockholders’ equity | 262,021,777 | 261,819,191 | |||||
$ | 619,949,075 | $ | 675,472,003 |
Three Months Ended June 30, | |||||||
2013 | 2012 | ||||||
(Unaudited) | (Unaudited and Restated) | ||||||
Revenue: | |||||||
Energy efficiency revenue | $ | 85,251,138 | $ | 119,819,117 | |||
Renewable energy revenue | 41,001,556 | 44,280,788 | |||||
126,252,694 | 164,099,905 | ||||||
Direct expenses: | |||||||
Energy efficiency expenses | 69,753,489 | 97,873,272 | |||||
Renewable energy expenses | 33,116,629 | 35,068,772 | |||||
102,870,118 | 132,942,044 | ||||||
Gross profit | 23,382,576 | 31,157,861 | |||||
Operating expenses: | |||||||
Salaries and benefits | 10,774,591 | 11,558,732 | |||||
Project development costs | 5,039,217 | 3,830,866 | |||||
General, administrative and other | 9,477,788 | 7,509,639 | |||||
25,291,596 | 22,899,237 | ||||||
Operating (loss) income | (1,909,020 | ) | 8,258,624 | ||||
Other expenses, net | 448,732 | 1,412,744 | |||||
(Loss) income before (benefit) provision for income taxes | (2,357,752 | ) | 6,845,880 | ||||
Income tax (benefit) provision | (577,001 | ) | 2,026,630 | ||||
Net (loss) income | $ | (1,780,751 | ) | $ | 4,819,250 | ||
Net (loss) income per share attributable to common shareholders: | |||||||
Basic | $ | (0.04 | ) | $ | 0.11 | ||
Diluted | $ | (0.04 | ) | $ | 0.10 | ||
Weighted average common shares outstanding: | |||||||
Basic | 45,465,529 | 44,541,025 | |||||
Diluted | 45,465,529 | 46,359,323 | |||||
OTHER NON-GAAP DISCLOSURES | |||||||
Gross margins: | |||||||
Energy efficiency revenue | 18.2 | % | 18.3 | % | |||
Renewable energy revenue | 19.2 | % | 20.8 | % | |||
Total | 18.5 | % | 19.0 | % | |||
Operating expenses as a percent of revenue | 20.0 | % | 14.0 | % | |||
Adjusted Earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA): | |||||||
Operating (loss) income | $ | (1,909,020 | ) | $ | 8,258,624 | ||
Depreciation and amortization of intangible assets | 4,580,462 | 4,769,256 | |||||
Stock-based compensation | 664,759 | 892,607 | |||||
Adjusted EBITDA | $ | 3,336,201 | $ | 13,920,487 | |||
Adjusted EBITDA margin | 2.6 | % | 8.5 | % | |||
Construction backlog: | |||||||
Awarded | $ | 1,112,502,163 | $ | 909,644,256 | |||
Fully-contracted | 324,036,401 | 390,695,907 | |||||
Total construction backlog | $ | 1,436,538,564 | $ | 1,300,340,163 |
AMERESCO, INC. CONSOLIDATED STATEMENTS OF (LOSS) INCOME | |||||||
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
(Unaudited) | (Unaudited and Restated) | ||||||
Revenue: | |||||||
Energy efficiency revenue | $ | 155,071,617 | $ | 233,201,787 | |||
Renewable energy revenue | 81,316,600 | 77,471,487 | |||||
236,388,217 | 310,673,274 | ||||||
Direct expenses: | |||||||
Energy efficiency expenses | 125,208,747 | 187,493,047 | |||||
Renewable energy expenses | 66,278,023 | 62,798,556 | |||||
191,486,770 | 250,291,603 | ||||||
Gross profit | 44,901,447 | 60,381,671 | |||||
Operating expenses: | |||||||
Salaries and benefits | 21,787,892 | 25,927,944 | |||||
Project development costs | 9,320,382 | 8,047,218 | |||||
General, administrative and other | 17,784,690 | 14,723,095 | |||||
48,892,964 | 48,698,257 | ||||||
Operating (loss) income | (3,991,517 | ) | 11,683,414 | ||||
Other expenses, net | 913,045 | 2,520,483 | |||||
(Loss) income before (benefit) provision for income taxes | (4,904,562 | ) | 9,162,931 | ||||
Income tax (benefit) provision | (1,199,739 | ) | 2,608,517 | ||||
Net (loss) income | $ | (3,704,823 | ) | $ | 6,554,414 | ||
Net (loss) income per share attributable to common shareholders: | |||||||
Basic | $ | (0.08 | ) | $ | 0.15 | ||
Diluted | $ | (0.08 | ) | $ | 0.14 | ||
Weighted average common shares outstanding: | |||||||
Basic | 45,396,765 | 44,343,059 | |||||
Diluted | 45,396,765 | 46,143,932 | |||||
OTHER NON-GAAP DISCLOSURES | |||||||
Gross margins: | |||||||
Energy efficiency revenue | 19.3 | % | 19.6 | % | |||
Renewable energy revenue | 18.5 | % | 18.9 | % | |||
Total | 19.0 | % | 19.4 | % | |||
Operating expenses as a percent of revenue | 20.7 | % | 15.7 | % | |||
Adjusted Earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA): | |||||||
Operating (loss) income | $ | (3,991,517 | ) | $ | 11,683,414 | ||
Depreciation and amortization | 10,278,480 | 9,708,503 | |||||
Stock-based compensation | 1,335,860 | 1,674,060 | |||||
Adjusted EBITDA | $ | 7,622,823 | $ | 23,065,977 | |||
Adjusted EBITDA margin | 3.2 | % | 7.4 | % |
Three Months Ended June 30, | |||||||
2013 | 2012 | ||||||
(Unaudited) | (Unaudited and Restated) | ||||||
Cash flows from operating activities: | |||||||
Net (loss) income | $ | (1,780,751 | ) | $ | 4,819,250 | ||
Adjustments to reconcile net (loss) income to cash provided by operating activities: | |||||||
Depreciation of project assets | 2,868,716 | 2,850,977 | |||||
Depreciation of property and equipment | 813,708 | 603,501 | |||||
Amortization of deferred financing fees | 248,314 | 138,191 | |||||
Amortization of intangible assets | 898,038 | 1,314,778 | |||||
Provision for bad debts | 328,969 | 24,107 | |||||
Unrealized (gain) loss on interest rate swap | (294,047 | ) | 349,618 | ||||
Gain on sale of asset | — | (800,000 | ) | ||||
Stock-based compensation expense | 664,759 | 892,607 | |||||
Deferred income taxes | (1,821,364 | ) | 43,697 | ||||
Excess tax benefits from stock-based compensation arrangements | (158,231 | ) | (448,916 | ) | |||
Changes in operating assets and liabilities: | |||||||
(Increase) decrease in: | |||||||
Restricted cash draws | 10,486,117 | 14,069,843 | |||||
Accounts receivable | 11,042,004 | (11,967,540 | ) | ||||
Accounts receivable retainage | (2,774,172 | ) | (3,613,426 | ) | |||
Federal ESPC receivable | (4,110,910 | ) | (11,705,599 | ) | |||
Inventory | (54,410 | ) | (369,359 | ) | |||
Costs and estimated earnings in excess of billings | (8,688,672 | ) | (5,583,166 | ) | |||
Prepaid expenses and other current assets | (2,402,095 | ) | (4,504,563 | ) | |||
Project development costs | (785,712 | ) | (324,126 | ) | |||
Other assets | (912,456 | ) | (766,682 | ) | |||
Increase (decrease) in: | |||||||
Accounts payable, accrued expenses and other current liabilities | 1,912,268 | 11,766,758 | |||||
Billings in excess of cost and estimated earnings | (590,444 | ) | 7,346,139 | ||||
Other liabilities | 1,293,096 | (345,461 | ) | ||||
Income taxes payable | 700,716 | 2,476,787 | |||||
Net cash provided by operating activities | 6,883,441 | 6,267,415 | |||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (446,197 | ) | (1,105,037 | ) | |||
Purchases of project assets | (18,763,159 | ) | (9,695,695 | ) | |||
Grant awards received on project assets | 289,285 | — | |||||
Proceeds from sales of assets | 6,500 | — | |||||
Acquisition, net of cash received | (7,537,516 | ) | — | ||||
Net cash used in investing activities | (26,451,087 | ) | (10,800,732 | ) | |||
Cash flows from financing activities: | |||||||
Excess tax benefits from stock-based compensation arrangements | 158,231 | 448,916 | |||||
Payments of financing fees | (464,767 | ) | — | ||||
Proceeds from exercises of options | 394,603 | 735,839 | |||||
Proceeds from (payments of) senior secured credit facility | 15,000,000 | (1,428,571 | ) | ||||
Proceeds from long-term debt financing | 9,434,434 | — | |||||
Non-controlling interest | 105,931 | — | |||||
Restricted cash | (4,558,805 | ) | (3,367,515 | ) | |||
Payments on long-term debt | (2,934,948 | ) | (1,327,493 | ) | |||
Net cash provided by (used in) financing activities | 17,134,679 | (4,938,824 | ) | ||||
Effect of exchange rate changes on cash | (900,330 | ) | (53,234 | ) | |||
Net decrease in cash and cash equivalents | (3,333,297 | ) | (9,525,375 | ) | |||
Cash and cash equivalents, beginning of period | 20,963,260 | 38,435,362 | |||||
Cash and cash equivalents, end of period | $ | 17,629,963 | $ | 28,909,987 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
(Unaudited) | (Unaudited and Restated) | ||||||
Cash flows from operating activities: | |||||||
Net (loss) income | $ | (3,704,823 | ) | $ | 6,554,414 | ||
Adjustments to reconcile net (loss) income to cash (used in) provided by operating activities: | |||||||
Depreciation of project assets | 6,879,151 | 5,456,007 | |||||
Depreciation of property and equipment | 1,610,254 | 1,281,474 | |||||
Amortization of deferred financing fees | 332,462 | 271,478 | |||||
Amortization of intangible assets | 1,789,075 | 2,971,022 | |||||
Provision for bad debts | 371,308 | 77,743 | |||||
Unrealized (gain) loss on interest rate swap | (683,134 | ) | 119,752 | ||||
Gain on sale of asset | — | (800,000 | ) | ||||
Stock-based compensation expense | 1,335,860 | 1,674,060 | |||||
Deferred income taxes | (2,870,689 | ) | (506,631 | ) | |||
Excess tax benefits from stock-based compensation arrangements | (297,011 | ) | (1,651,513 | ) | |||
Changes in operating assets and liabilities: | |||||||
(Increase) decrease in: | |||||||
Restricted cash draws | 18,004,938 | 24,152,657 | |||||
Accounts receivable | 6,855,679 | 12,569,643 | |||||
Accounts receivable retainage | (1,572,574 | ) | 2,079,382 | ||||
Federal ESPC receivable | (13,784,645 | ) | (25,775,736 | ) | |||
Inventory | (2,046,584 | ) | (510,224 | ) | |||
Costs and estimated earnings in excess of billings | 9,931,189 | 12,197,386 | |||||
Prepaid expenses and other current assets | (1,526,332 | ) | (1,679,160 | ) | |||
Project development costs | (2,430,350 | ) | (1,156,085 | ) | |||
Other assets | (758,735 | ) | (941,282 | ) | |||
Increase (decrease) in: | |||||||
Accounts payable, accrued expenses and other current liabilities | (36,185,982 | ) | (8,760,740 | ) | |||
Billings in excess of cost and estimated earnings | 371,453 | 8,243,890 | |||||
Other liabilities | (75,507 | ) | 525,181 | ||||
Income taxes payable | (365,038 | ) | 3,083,458 | ||||
Net cash (used in) provided by operating activities | (18,820,035 | ) | 39,476,176 | ||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (1,540,577 | ) | (2,381,570 | ) | |||
Purchases of project assets | (31,618,945 | ) | (19,698,641 | ) | |||
Grant awards and rebates received on project assets | 1,580,219 | 3,838,766 | |||||
Proceeds from sales of assets | 6,500 | — | |||||
Acquisitions, net of cash received | (9,345,601 | ) | — | ||||
Net cash used in investing activities | (40,918,404 | ) | (18,241,445 | ) | |||
Cash flows from financing activities: | |||||||
Excess tax benefits from stock-based compensation arrangements | 297,011 | 1,651,513 | |||||
Book overdraft | — | (7,297,122 | ) | ||||
Payments of financing fees | (504,985 | ) | (20,325 | ) | |||
Proceeds from exercises of options | 1,249,752 | 1,799,271 | |||||
Proceeds from (payments of) senior secured credit facility | 15,000,000 | (7,857,142 | ) | ||||
Proceeds from long-term debt financing | 9,434,434 | — | |||||
Non-controlling interest | 40,630 | 7,700 | |||||
Restricted cash | (5,198,277 | ) | (4,798,107 | ) | |||
Payments on long-term debt | (6,740,729 | ) | (2,134,957 | ) | |||
Net cash provided by (used in) financing activities | 13,577,836 | (18,649,169 | ) | ||||
Effect of exchange rate changes on cash | 442,921 | 47,059 | |||||
Net (decrease) increase in cash and cash equivalents | (45,717,682 | ) | 2,632,621 | ||||
Cash and cash equivalents, beginning of year | 63,347,645 | 26,277,366 | |||||
Cash and cash equivalents, end of period | $ | 17,629,963 | $ | 28,909,987 |