Exhibit 99.1
amtagrgba02a08.jpg
FOR IMMEDIATE RELEASE
Contact:
Media Relations
 
CarolAnn Hibbard, 508.661.2264, news@ameresco.com
 
Investor Relations
 
John Granara, 508.661.2215, ir@ameresco.com

 
 
 
Gary Dvorchak, CFA, The Blue Shirt Group, 323.240.5796,
 
 
 
ir@ameresco.com
Ameresco Reports Fourth Quarter and Full Year 2017 Financial Results

Full Year 2017 Financial Highlights (year over year):
Revenues of $717.2 million, compared to $651.2 million, up 10%
Net income attributable to common shareholders of $37.5 million, compared to $12.0 million
Net income per diluted share of $0.82, compared to $0.26
Net income includes a benefit of $14 million or $0.30 per diluted share related to the Tax Cuts
and Jobs Act
Adjusted EBITDA of $63.3 million, compared to $56.2 million, up 13%
Non-GAAP EPS of $0.76, compared to $0.36
Record high project backlog of $1.77 billion, compared to $1.49 billion up 19%

FRAMINGHAM, MA - March 6, 2018 - Ameresco, Inc. (NYSE:AMRC), a leading energy efficiency and renewable energy company, today announced financial results for the fiscal quarter and year ended December 31, 2017. The Company has also furnished supplemental information in conjunction with this press release in a Current Report on Form 8-K. The supplemental information includes non-GAAP financial metrics, and has been posted to the “Investor Relations” section of the Company’s website at www.ameresco.com.

Management Commentary

“We had a great 2017 and enter 2018 with exceptional business momentum,” said George P. Sakellaris, President and Chief Executive Officer of Ameresco. “Our earnings growth accelerated in 2017, and we anticipate more acceleration in the year ahead. Business is strong because we have a focused, effective strategy in place, and we are executing well against it.”

Sakellaris continued, “Increased investment in the efficiency project pipeline resulted in outstanding backlog growth, giving us great visibility. Growth is supported by our success in penetrating new regions across the US, and from initial success in the UK. Finally, we are strengthening our business model through the continued expansion of our energy asset portfolio. This high margin, recurring revenue is becoming a significant contributor to profit, and is set to grow meaningfully in 2018 and beyond.”


Financial Results
(All financial result comparisons made are against the prior year period unless otherwise






noted.)

Fourth Quarter 2017

Revenues were $211.1 million, compared to $174.2 million. Net income was $23.8 million, compared to $3.3 million in 2016. Net income included $3.3 million of income attributable to redeemable non-controlling interest in 2017 and $0.1 million of expense attributable to redeemable non-controlling interest in 2016. Adjusted EBITDA, a non-GAAP financial measure, was $21.1 million, compared to $14.4 million.

Fourth quarter net income includes a benefit of $14 million or $0.30 per diluted share related to the impact of the re-measurement of the Company's deferred income tax balances because of the Tax Cuts and Jobs Act enacted in December 2017. Net income per diluted share was $0.52, compared to $0.07 in 2016. Non-GAAP EPS was $0.48, compared to $0.08.

Full Year 2017
Revenues were $717.2 million, compared to $651.2 million. Net income attributable to Ameresco, Inc. was $37.5 million, compared to net income of $12.0 million. Adjusted EBITDA was $63.3 million, compared to $56.2 million. Non-GAAP net income was $35.0 million, compared to $16.8 million.

Net income for Full Year 2017 includes a benefit of $14 million or $0.30 per diluted share related to the impact of the re-measurement of the Company's deferred income tax balances because of the Tax Cuts and Jobs Act enacted in December 2017. Net income per basic and diluted share was $0.82, compared to $0.26. Non-GAAP EPS was $0.76, compared to $0.36.

Additional Full Year 2017 Operating Highlights:
Cash flows used in operating activities, which excludes proceeds from Federal ESPC projects, were $136.6 million, compared to $58.1 million in the prior period, and adjusted cash from operations, a non-GAAP financial measure, was $28.5 million, compared to $32.0 million.
Total project backlog was $1.77 billion and consisted of:
$572.5 million of fully-contracted backlog, representing signed customer contracts for installation or construction of projects, which we expect to convert into revenue over the next two to four years, on average; and
$1.2 billion of awarded projects, representing projects in development for which we do not have signed contracts.
Energy Assets in development were $165.8 million or 78 MWe.

FY 2018 Guidance
Ameresco expects to earn total revenue in the range of $765 million to $800 million in 2018. The Company also expects adjusted EBITDA for 2018 to be in the range of $75 million to $85 million and net income per diluted share to be in the range of $0.55 to $0.65 for 2018. This guidance excludes the impact of any non-controlling interest activity and any additional charges relating to our restructuring activities, as well as any related tax impact.







Share Repurchase Program

Through the end of 2017, the Company repurchased 1,873,266 shares of its Class A common stock for $9.7 million. The Company has approximately $5.3 million of remaining authorization under the share repurchase program it announced in May 2016.


Webcast Reminder

The Company will host a conference call today at 8:30 a.m. ET today to discuss results.
The conference call will be available via the following dial in numbers:
U.S. Participants: Dial 1-877-359-9508 (Access Code: 4085048)
International Participants: Dial 1-224-357-2393 (Access Code: 4085048)
Participants are advised to dial into the call at least ten minutes prior to register.
A live, listen-only webcast of the conference call will also be available over the Internet. Individuals wishing to listen can access the call through the “Investor Relations” section of the Company’s website at www.ameresco.com.
An archived webcast will be available on the Company’s website for one year.

Use of Non-GAAP Financial Measures

This press release and the accompanying tables include references to adjusted EBITDA, non-GAAP EPS, non-GAAP net income and adjusted cash from operations, which are non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses these measures, please see the section following the accompanying tables titled “Exhibit A: Non-GAAP Financial Measures”. For a reconciliation of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP, please see Other Non-GAAP Disclosures and Non-GAAP Financial Guidance in the accompanying tables.

About Ameresco, Inc.

Founded in 2000, Ameresco, Inc. (NYSE:AMRC) is a leading independent provider of comprehensive services, energy efficiency, infrastructure upgrades, asset sustainability and renewable energy solutions for businesses and organizations throughout North America and Europe. Ameresco’s sustainability services include upgrades to a facility’s energy infrastructure and the development, construction and operation of renewable energy plants. Ameresco has successfully completed energy saving, environmentally responsible projects with federal, state and local governments, healthcare and educational institutions, housing authorities, and commercial and industrial customers. With its corporate headquarters in Framingham, MA, Ameresco has more than 1,000 employees providing local expertise in the United States, Canada, and the United Kingdom. For more information, visit www.ameresco.com.
 
Safe Harbor Statement







Any statements in this press release about future expectations, plans and prospects for Ameresco, Inc., including statements about market conditions, pipeline and backlog, as well as estimated future revenues and net income, and other statements containing the words projects, believes, anticipates, plans, expects, will and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the timing of, and ability to, enter into contracts for awarded projects on the terms proposed; the timing of work we do on projects where we recognize revenue on a percentage of completion basis, including the ability to perform under recently signed contracts without unusual delay; demand for our energy efficiency and renewable energy solutions; our ability to arrange financing for our projects; changes in federal, state and local government policies and programs related to energy efficiency and renewable energy; the ability of customers to cancel or defer contracts included in our backlog; the effects of our recent acquisitions and restructuring activities; seasonality in construction and in demand for our products and services; a customers decision to delay our work on, or other risks involved with, a particular project; availability and costs of labor and equipment; the addition of new customers or the loss of existing customers; market price of the Company's stock prevailing from time to time; the nature of other investment opportunities presented to the Company from time to time; the Company's cash flows from operations; and other factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2016, filed with the U.S. Securities and Exchange Commission on March 3, 2017. In addition, the forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.


AMERESCO, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)


 
December 31,
 
2017
 
2016
 
(Unaudited)
 
 
ASSETS
Current assets:
 
 
 
Cash and cash equivalents
$
24,262

 
$
20,607

Restricted cash
15,751

 
12,299

Accounts receivable, net
85,121

 
85,354

Accounts receivable retainage, net
17,484

 
17,465

Costs and estimated earnings in excess of billings
104,852

 
56,914

Inventory, net
8,139

 
12,104

Prepaid expenses and other current assets
14,037

 
11,732

Income tax receivable
6,053

 
406

Project development costs
11,379

 
9,180

Total current assets
287,078

 
226,061

Federal ESPC receivable
248,917

 
158,209

Property and equipment, net
5,303

 
5,018

Energy assets, net
356,443

 
319,758

Goodwill
56,135

 
57,976

Intangible assets, net
2,440

 
3,931

Other assets
27,635

 
26,328

Total assets
$
983,951

 
$
797,281

LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND STOCKHOLDERS' EQUITY
Current liabilities:
 

 
 

Current portions of long-term debt and capital lease liabilities
$
22,375

 
$
19,292

Accounts payable
135,881

 
126,583

Accrued expenses and other current liabilities
23,260

 
22,763

Billings in excess of cost and estimated earnings
19,871

 
21,189

Income taxes payable
755

 
775

Total current liabilities
202,142

 
190,602

Long-term debt and capital lease liabilities, less current portions and net of deferred financing fees
173,237

 
140,593

Federal ESPC liabilities
235,088

 
133,003

Deferred income taxes, net
584

 
9,037

Deferred grant income
7,188

 
7,739

Other liabilities
18,754

 
15,154

 
 
 
 
Redeemable non-controlling interests
10,338

 
6,847

 
 
 
 
Stockholders' equity:
 

 
 

Preferred stock, $0.0001 par value, 5,000,000 shares authorized, no shares issued and outstanding at December 31, 2017 and 2016

 

Class A common stock, $0.0001 par value, 500,000,000 shares authorized, 29,406,315 shares issued and 27,533,049 shares outstanding at December 31, 2017, 29,005,284 shares issued and 27,706,866 shares outstanding at December 31, 2016
3

 
3

Class B common stock, $0.0001 par value, 144,000,000 shares authorized, 18,000,000 shares issued and outstanding at December 31, 2017 and 2016
2

 
2



AMERESCO, INC.
CONSOLIDATED BALANCE SHEETS - (Continued)
(in thousands, except share and per share amounts)


 
December 31,
 
2017
 
2016
 
(Unaudited)
 
 
Additional paid-in capital
116,196

 
112,926

Retained earnings
235,844

 
194,353

Accumulated other comprehensive loss, net
(5,626
)
 
(6,591
)
Less - treasury stock, at cost, 1,873,266 shares at December 31, 2017, and 1,298,418 shares at December 31, 2016
(9,799
)
 
(6,387
)
Total stockholder's equity
336,620

 
300,693

Total liabilities, redeemable non-controlling interests and stockholder's equity
$
983,951

 
$
803,668



AMERESCO, INC.
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands, except per share amounts)



 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
2017
 
2016
 
2017
 
2016
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
 
Revenues
$
211,133

 
$
174,225

 
$
717,152

 
$
651,227

Cost of revenues
169,674

 
138,208

 
572,994

 
516,883

Gross profit
41,459

 
36,017

 
144,158

 
134,344

Selling, general and administrative expenses
27,406

 
28,688

 
107,570

 
110,568

Operating income
14,053

 
7,329

 
36,588

 
23,776

Other expenses, net
2,639

 
2,448

 
7,871

 
7,409

Income before provision for income taxes
11,414

 
4,881

 
28,717

 
16,367

Income tax (benefit) provision
(9,087
)
 
1,498

 
(4,791
)
 
4,370

Net income
20,501

 
3,383

 
33,508

 
11,997

Net (income) loss attributable to redeemable non-controlling interest
3,310

 
(114
)
 
3,983

 
35

Net income attributable to common shareholders
$
23,811

 
$
3,269

 
$
37,491

 
$
12,032

Net income per share attributable to common shareholders:
 
 
 
 
 
 
 
Basic
$
0.52

 
$
0.07

 
$
0.82

 
$
0.26

Diluted
$
0.52

 
$
0.07

 
$
0.82

 
$
0.26

Weighted average common shares outstanding:
 
 
 
 
 
 
 
Basic
45,537
 
45,811
 
45,509
 
46,409
Diluted
45,957
 
45,907
 
45,748
 
46,493


AMERESCO, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)


 
Year Ended December 31,
 
2017
 
2016
 
(Unaudited)
 
 
Cash flows from operating activities:
 
 
 
Net income
$
33,508

 
$
11,997

Adjustments to reconcile net income to cash flows from operating activities:
 
 
 
Depreciation of energy assets
21,648

 
19,377

Depreciation of property and equipment
2,394

 
3,020

Amortization of deferred financing fees
1,620

 
1,503

Amortization of intangible assets
1,451

 
2,358

Provision for bad debts
77

 
5,392

Gain on sale of assets
(103
)
 

Unrealized gain on interest rate swaps
(271
)
 
(279
)
Stock-based compensation expense
1,293

 
1,462

Deferred income taxes
(4,527
)
 
2,867

Excess tax benefits from stock-based compensation arrangements

 
(99
)
Unrealized foreign exchange (gain) loss
(1,406
)
 
167

Changes in operating assets and liabilities:
 
 
 
Restricted cash
(818
)
 
(5,423
)
Accounts receivable
1,870

 
(12,002
)
Accounts receivable retainage
1,279

 
3,875

Federal ESPC receivable
(157,538
)
 
(116,753
)
Inventory, net
3,966

 
1,118

Costs and estimated earnings in excess of billings
(46,730
)
 
31,170

Prepaid expenses and other current assets
(2,471
)
 
(98
)
Project development costs
(3,007
)
 
4,162

Other assets
(60
)
 
(525
)
Accounts payable, accrued expenses and other current liabilities
19,652

 
(2,798
)
Billings in excess of cost and estimated earnings
(2,168
)
 
(6,974
)
Other liabilities
(540
)
 
(3,578
)
Income taxes payable
(5,678
)
 
1,988

Cash flows from operating activities
(136,559
)
 
(58,073
)
Cash flows from investing activities:
 
 
 
Purchases of property and equipment
(2,851
)
 
(2,807
)
Purchases of energy assets
(86,264
)
 
(73,234
)
Proceeds from sale of assets of a business
2,777

 

Acquisitions, net of cash received
(2,409
)
 
(3,575
)
Cash flows from investing activities
(88,747
)
 
(79,616
)
Cash flows from financing activities:
 
 
 
Excess tax benefits from stock-based compensation arrangements

 
99

Payments of financing fees
(2,877
)
 
(1,908
)
Proceeds from exercises of options
1,977

 
1,054

Repurchase of common stock
(3,412
)
 
(6,387
)
Proceeds from senior secured credit facility, net
12,547

 
3,822

 
 
 
 


AMERESCO, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS - (Continued)
(in thousands)


 
Year Ended December 31,
 
2017
 
2016
 
(Unaudited)
 
 
Proceeds from long-term debt financing
48,483

 
38,004

Proceeds from Federal ESPC projects
165,013

 
90,039

Proceeds from Federal ESPC energy assets
3,993

 

Proceeds from sale-leaseback financing
51,204

 
17,045

Proceeds from investment by non-controlling interests, net
7,473

 
6,392

Restricted cash
(2,149
)
 
3,155

Payments on long-term debt
(53,459
)
 
(14,014
)
Cash flows from financing activities
228,793

 
137,303

Effect of exchange rate changes on cash
168

 
(650
)
Net increase (decrease) in cash and cash equivalents
3,655

 
(1,036
)
Cash and cash equivalents, beginning of period
20,607

 
21,645

Cash and cash equivalents, end of period
$
24,262

 
$
20,609







Non-GAAP Financial Measures (in thousands)
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
2017
 
2016
 
2017
 
2016
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
 
Adjusted EBITDA:
 
 
 
 
 
 
 
Net income attributable to common shareholders
$
23,811

 
$
3,269

 
$
37,491

 
$
12,032

Impact from redeemable non-controlling interest
(3,310
)
 
114

 
(3,983
)
 
(35
)
Plus (less): Income tax (benefit) provision
(9,087
)
 
1,498

 
(4,791
)
 
4,370

Plus: Other expenses, net
2,639

 
2,448

 
7,871

 
7,409

Plus: Depreciation and amortization of intangible assets
6,658

 
6,523

 
25,493

 
24,755

Plus: Stock-based compensation
317

 
376

 
1,293

 
1,462

Plus (less): Restructuring and other charges
50

 
147

 
(111
)
 
6,206

Adjusted EBITDA
$
21,078

 
$
14,375

 
$
63,263

 
$
56,199

Adjusted EBITDA margin
10.0
%
 
8.3
%
 
8.8
%
 
8.6
%
 
 
 
 
 
 
 
 
Non-GAAP net income and EPS:
 
 
 
 
 
 
 
Net income attributable to common shareholders
$
23,811

 
$
3,269

 
$
37,491

 
$
12,032

Impact from redeemable non-controlling interest
(3,310
)
 
114

 
(3,983
)
 
(35
)
Plus (less): Restructuring and other charges
50

 
147

 
(111
)
 
6,206

Plus (less): Income tax effect of non-GAAP adjustments
1,534

 

 
1,578

 
(1,430
)
Non-GAAP net income
$
22,085

 
$
3,530

 
$
34,975

 
$
16,773

 
 
 
 
 
 
 
 
Diluted net income per common share
$
0.52

 
$
0.07

 
$
0.82

 
$
0.26

Effect of adjustments to net income
(0.04
)
 
0.01

 
(0.06
)
 
0.10

Non-GAAP EPS
$
0.48

 
$
0.08

 
$
0.76

 
$
0.36

Weighted average common shares outstanding - diluted
45,957,000

 
45,907,120

 
45,748,000

 
46,493,000

 
 
 
 
 
 
 
 
Adjusted cash from operations:
 
 
 
 
 
 
 
Cash flows from operating activities
$
(45,803
)
 
$
(10,697
)
 
$
(136,559
)
 
$
(58,073
)
Plus: Proceeds from Federal ESPC projects
42,673

 
24,964

 
165,013

 
90,039

Adjusted cash from operations
$
(3,130
)
 
$
14,267

 
$
28,454

 
$
31,966

 
 
 
 
 
 
 
 
 
 
 
 
 
December 31,
 
 
 
 
 
2017
 
2016
 
 
 
 
 
(Unaudited)
 
(Unaudited)
Construction backlog:
 
 
 
 
 
 
 
Awarded(1)
 
 
 
 
$
1,199,000

 
$
957,594

Fully-contracted
 
 
 
 
573,000

 
534,082

Total project backlog


 


 
$
1,772,000

 
$
1,491,676

Energy assets in development(2)
 
 
 
 
$
165,800

 
$
228,300

 
Three Months Ended December 31
 
Twelve Months Ended December 31
 
2017
 
2016
 
2017
 
2016
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
New contracts and awards:
 
 
 
 
 
 
 
New contracts
$
102,000

 
$
214,000

 
$
542,000

 
$
596,800

New awards(1)
$
204,000

 
$
117,000

 
$
784,000

 
$
598,600

(1) Represents estimated future revenues from projects that have been awarded, though the contracts have not yet been signed.






(2) Estimated total construction value of all energy assets in construction and development
Non-GAAP Financial Guidance
Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA):
(in thousands)
Year Ended December 31, 2018
 
Low
High
Operating income
$
44,000

$
52,000

Depreciation and amortization of intangible assets
30,000

31,000

Stock-based compensation
1,000

2,000

Adjusted EBITDA
$
75,000

$
85,000







Exhibit A: Non-GAAP Financial Measures
We use the non-GAAP financial measures defined and discussed below to provide investors and others with useful supplemental information to our financial results prepared in accordance with GAAP. These non-GAAP financial measures should not be considered as an alternative to any measure of financial performance calculated and presented in accordance with GAAP. For a reconciliation of these non-GAAP measures to the most directly comparable financial measures prepared in accordance with GAAP, please see Other Non-GAAP Disclosure and Non-GAAP Financial Guidance in the tables above.
We understand that, although measures similar to these non-GAAP financial measures are frequently used by investors and securities analysts in their evaluation of companies, they have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for the most directly comparable GAAP financial measures or an analysis of our results of operations as reported under GAAP. To properly and prudently evaluate our business, we encourage investors to review our GAAP financial statements included above, and not to rely on any single financial measure to evaluate our business.
Adjusted EBITDA and Adjusted EBITDA Margin
We define adjusted EBITDA as operating income before depreciation, amortization of intangible assets, stock-based compensation expense, restructuring charges, loss related to a significant non-core project in Canada and charges related to a significant customer bankruptcy. We believe adjusted EBITDA is useful to investors in evaluating our operating performance for the following reasons: adjusted EBITDA and similar non-GAAP measures are widely used by investors to measure a company's operating performance without regard to items that can vary substantially from company to company depending upon financing and accounting methods, book values of assets, capital structures and the methods by which assets were acquired; securities analysts often use adjusted EBITDA and similar non-GAAP measures as supplemental measures to evaluate the overall operating performance of companies; and by comparing our adjusted EBITDA in different historical periods, investors can evaluate our operating results without the additional variations of depreciation and amortization expense, stock-based compensation expense, restructuring charges and loss related to a significant non-core project in Canada. We define adjusted EBITDA margin as adjusted EBITDA stated as a percentage of revenue.
Our management uses adjusted EBITDA and adjusted EBITDA margin as measures of operating performance, because they do not include the impact of items that we do not consider indicative of our core operating performance; for planning purposes, including the preparation of our annual operating budget; to allocate resources to enhance the financial performance of the business; to evaluate the effectiveness of our business strategies; and in communications with the board of directors and investors concerning our financial performance.
During the first quarter of 2016, we changed our calculation and presentation of adjusted EBITDA to exclude restructuring charges and losses related to a significant non-core project in Canada and during the third quarter of 2016, we changed our calculation and presentation of adjusted EBITDA in order to exclude charges related to a significant customer bankruptcy. We do not consider these items indicative of our core operating performance. Adjusted EBITDA and adjusted EBITDA margin for the prior periods have been recalculated to be presented on a comparable basis.








Non-GAAP Net Income and EPS
We define non-GAAP net income and earnings per share ("EPS") to exclude certain discrete items that management does not consider representative of our ongoing operations, including restructuring charges, loss related to a significant non-core project in Canada, impact from redeemable non-controlling interest and charges related to a significant customer bankruptcy. We consider non-GAAP net income and non-GAAP EPS to be important indicators of our operational strength and performance of our business because they eliminate the effects of events that are not part of the Company's core operations.
Adjusted Cash From Operations
We define adjusted cash from operations as cash flows from operating activities plus proceeds from Federal ESPC projects. Cash received in payment of Federal ESPC projects is treated as a financing cash flow under GAAP due to the unusual financing structure for these projects. These cash flows, however, correspond to the revenue generated by these projects. Thus we believe that adjusting operating cash flow to include the cash generated by our Federal ESPC projects provides investors with a useful measure for evaluating the cash generating ability of our core operating business. Our management uses adjusted cash from operations as a measure of liquidity because it captures all sources of cash associated with our revenue generated by operations.