Exhibit 99.1
amtagrgba02a12.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 First Quarter 2018 Financial Results

First Quarter 2018 Financial Highlights (year over year):
Revenues of $167.4 million, compared to $134.6 million, up 24%
Net income attributable to common shareholders of $7.0 million, compared to $(0.6) million
Net income per diluted share of $0.15, compared to $(0.01)
Adjusted EBITDA of $15.8 million, compared to $6.0 million, up 164%
Non-GAAP EPS of $0.16, compared to a loss of $(0.04)
Record high project backlog of $1.9 billion, up 15%


FRAMINGHAM, MA - May 1, 2018 - Ameresco, Inc. (NYSE:AMRC), a leading energy efficiency and renewable energy company, today announced financial results for the fiscal quarter ended March 31, 2018. 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
“First quarter results were outstanding, demonstrating the momentum in our business,” said George P. Sakellaris, President and Chief Executive Officer of Ameresco.  “All of our lines of business grew revenue meaningfully while expanding profitability.  Our recurring revenue streams grew over 20% and contributed the majority of our profit, a direct result of our strategic focus.  Efficiency project revenue was up over 30% with broad strength across the country complementing the continued momentum with the Federal government.  Looking ahead, we are expecting the momentum to continue, which could help drive growth for years to come.  Based on the strong first quarter results, we are reiterating the annual guidance we offered a few weeks ago, which reflects our confidence in the outlook for another year of accelerating growth.”














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

First Quarter 2018

Revenues were $167.4 million, compared to $134.6 million. Operating income was $8.3 million, compared to operating loss of $0.6 million.

Net income attributable to common shareholders was $7.0 million compared to a loss of $0.6 million, and net income per diluted share was $0.15 compared to a loss of $0.01. Non-GAAP EPS was $0.16, compared to a loss of $0.04.

Adjusted EBITDA, a non-GAAP financial measure, was $15.8 million, compared to $6.0 million.

Additional First Quarter 2018 Operating Highlights:
Cash flows used in operating activities were $37.1 million, compared to $32.0 million, and adjusted cash from operations, a non-GAAP financial measure, was $(0.5) million, compared to $3.2 million.
Total project backlog was $1.9 billion and consisted of:
$595.6 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
$1.3 billion of awarded projects, representing projects in development for which we do not have signed contracts.
Assets in development were $221.4 million or 90 MWe.

FY 2018 Guidance
Based on year to date performance and expectations for the remainder of 2018, Ameresco is revising its 2018 outlook. Ameresco expects net income per diluted share to be in the range of $0.60 to $0.70 for 2018. Ameresco reaffirms total revenue to be in the range of $765 million to $800 million and adjusted EBITDA to be in the range of $75 million to $85 million in 2018. This guidance excludes the impact of any non-controlling interest activity and our restructuring activities, as well as any related tax impact.

Share Repurchase Program

Through the end of the first quarter, the Company repurchased 2,085,397 shares of its Class A common stock for $11.5 million. The Company has approximately $3.5 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: 4396436)
International Participants: Dial 1-224-357-2393 (Access Code: 4396436)








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, 2017, filed with the U.S. Securities and Exchange Commission on March 7, 2018. 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)








 
March 31,
 
December 31,
 
2018
 
2017
 
(Unaudited)
 
 
ASSETS
Current assets:
 
 
 
Cash and cash equivalents
$
34,125

 
$
24,262

Restricted cash
16,894

 
15,751

Accounts receivable, net
93,622

 
85,121

Accounts receivable retainage, net
19,869

 
17,484

Costs and estimated earnings in excess of billings
64,064

 
104,852

Inventory, net
8,683

 
8,139

Prepaid expenses and other current assets
23,258

 
14,037

Income tax receivable
4,246

 
6,053

Project development costs
14,652

 
11,379

Total current assets
279,413

 
287,078

Federal ESPC receivable
254,349

 
248,917

Property and equipment, net
5,817

 
5,303

Energy assets, net
381,724

 
356,443

Deferred income tax
3,570

 

Goodwill
56,294

 
56,135

Intangible assets, net
2,231

 
2,440

Other assets
28,377

 
27,635

Total assets
$
1,011,775

 
$
983,951

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

 
 

Current portions of long-term debt and capital lease liabilities
$
26,253

 
$
22,375

Accounts payable
100,085

 
135,881

Accrued expenses and other current liabilities
23,818

 
23,260

Billings in excess of cost and estimated earnings
22,462

 
19,871

Income taxes payable
564

 
755

Total current liabilities
173,182

 
202,142

Long-term debt and capital lease liabilities, less current portions and net of deferred financing fees
218,398

 
173,237

Federal ESPC liabilities
244,341

 
235,088

Deferred income taxes, net

 
584

Deferred grant income
7,050

 
7,188

Other liabilities
17,784

 
18,754

 
 
 
 
Redeemable non-controlling interests
10,751

 
10,338

 
 
 
 
Stockholders' equity:
 

 
 

Preferred stock, $0.0001 par value, 5,000,000 shares authorized, no shares issued and outstanding at March 31, 2018 and December 31, 2017

 

Class A common stock, $0.0001 par value, 500,000,000 shares authorized, 29,552,750 shares issued and 27,467,353 shares outstanding at March 31, 2018, 29,406,315 shares issued and 27,533,049 shares outstanding at December 31, 2017
3

 
3

Class B common stock, $0.0001 par value, 144,000,000 shares authorized, 18,000,000 shares issued and outstanding at March 31, 2018 and December 31, 2017
2

 
2

Additional paid-in capital
117,242

 
116,196

Retained earnings
238,378

 
235,844

Accumulated other comprehensive loss, net
(3,786
)
 
(5,626
)
Less - treasury stock, at cost, 2,085,397 shares at March 31, 2018 and 1,873,266 shares at December 31, 2017
(11,570
)
 
(9,799
)
Total stockholders' equity
340,269

 
336,620

Total liabilities, redeemable non-controlling interests and stockholders' equity
$
1,011,775

 
$
983,951









AMERESCO, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share amounts)
 
Three Months Ended March 31,
 
2018
 
2017
 
(Unaudited)
 
(Unaudited)
Revenues
$
167,410

 
$
134,610

Cost of revenues
131,937

 
108,686

Gross profit
35,473

 
25,924

Selling, general and administrative expenses
27,204

 
26,487

Operating income (loss)
8,269

 
(563
)
Other expenses, net
3,544

 
1,826

Income (loss) before benefit for income taxes
4,725

 
(2,389
)
Income tax benefit
(2,779
)
 
(645
)
Net income (loss)
7,504

 
(1,744
)
Net (income) loss attributable to redeemable non-controlling interests
(516
)
 
1,100

Net income (loss) attributable to common shareholders
$
6,988

 
$
(644
)
Net income (loss) per share attributable to common shareholders:
 
 
 
Basic
$
0.15

 
$
(0.01
)
Diluted
$
0.15

 
$
(0.01
)
Weighted average common shares outstanding:
 
 
 
Basic
45,373,000

 
45,514,000

Diluted
45,994,000

 
45,514,000










AMERESCO, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
 
Three Months Ended March 31,
 
2018
 
2017
 
(Unaudited)
 
(Unaudited)
Cash flows from operating activities:
 
 
 
Net income (loss)
$
7,504

 
$
(1,744
)
Adjustments to reconcile net income (loss) to cash flows from operating activities:
 
 
 
Depreciation of energy assets
6,312

 
5,109

Depreciation of property and equipment
542

 
693

Amortization of deferred financing fees
419

 
397

Amortization of intangible assets
253

 
380

Provision for bad debts
64

 

Gain on sale of assets

 
(104
)
Unrealized gain on ineffectiveness of interest rate swaps
(102
)
 
(123
)
Stock-based compensation expense
355

 
343

Deferred income taxes
(2,920
)
 
(859
)
Unrealized foreign exchange gain (loss)
492

 
(185
)
Changes in operating assets and liabilities:
 
 
 
Accounts receivable
(1,837
)
 
30,478

Accounts receivable retainage
(2,453
)
 
(1,333
)
Federal ESPC receivable
(37,967
)
 
(34,418
)
Inventory, net
(544
)
 
1,154

Costs and estimated earnings in excess of billings
30,906

 
7,193

Prepaid expenses and other current assets
(4,578
)
 
(2,686
)
Project development costs
(2,325
)
 
(1,155
)
Other assets
(281
)
 
(23
)
Accounts payable, accrued expenses and other current liabilities
(33,227
)
 
(31,939
)
Billings in excess of cost and estimated earnings
565

 
(3,053
)
Other liabilities
135

 
65

Income taxes payable
1,617

 
(201
)
Cash flows from operating activities
(37,070
)
 
(32,011
)
Cash flows from investing activities:
 
 
 
Purchases of property and equipment
(1,015
)
 
(387
)
Purchases of energy assets
(12,818
)
 
(29,121
)
Proceeds from sale of assets of a business

 
2,777

Acquisitions, net of cash received
(21,343
)
 
(2,409
)
Cash flows from investing activities
(35,176
)
 
(29,140
)
Cash flows from financing activities:
 
 
 
Payments of financing fees
(575
)
 
(338
)
Proceeds from exercises of options
691

 
240

Repurchase of common stock
(1,771
)
 
(2,049
)
Proceeds from senior secured credit facility, net
17,404

 
18,000

Proceeds from long-term debt financings
33,501

 
12,878

Proceeds from Federal ESPC projects
36,581

 
35,167

Proceeds from Federal ESPC energy assets
717

 

Proceeds from sale-leaseback financings

 
8,783

Distributions from investment by redeemable non-controlling interests, net
(103
)
 
(62
)
Payments on long-term debt
(2,322
)
 
(8,010
)
Cash flows from financing activities
84,123

 
64,609

Effect of exchange rate changes on cash
(185
)
 
51

Net increase in cash, cash equivalents and restricted cash
11,692

 
3,509

Cash, cash equivalents and restricted cash, beginning of period
60,105

 
52,826

Cash, cash equivalents and restricted cash, end of period
$
71,797

 
$
56,335









Non-GAAP Financial Measures (in thousands)
 
Three Months Ended March 31,
 
2018
 
2017
 
(Unaudited)
 
(Unaudited)
Adjusted EBITDA:
 
 
 
Net income (loss) attributable to common shareholders
$
6,988

 
$
(644
)
Impact from redeemable non-controlling interests
516

 
(1,100
)
Plus: Income tax benefit
(2,779
)
 
(645
)
Plus: Other expenses, net
3,544

 
1,826

Plus: Depreciation and amortization of intangible assets
7,107

 
6,182

Plus: Stock-based compensation
355

 
343

Plus: Restructuring and other charges
32

 

Adjusted EBITDA
$
15,763

 
$
5,962

Adjusted EBITDA margin
9.4
%
 
4.4
%
 
 
 
 
Non-GAAP net income (loss) and EPS:
 
 
 
Net income (loss) attributable to common shareholders
$
6,988

 
$
(644
)
Impact from redeemable non-controlling interests
516

 
(1,100
)
Plus: Restructuring and other charges
32

 

Plus: Income Tax effect of non-GAAP adjustments
(27
)
 

Non-GAAP net income (loss)
$
7,509

 
$
(1,744
)
 
 
 
 
Diluted net income (loss) per common share
$
0.15

 
$
(0.01
)
Effect of adjustments to net income (loss)
0.01

 
(0.03
)
Non-GAAP EPS
$
0.16

 
$
(0.04
)
 
 
 
 
Adjusted cash from operations:
 
 
 
Cash flows from operating activities
$
(37,070
)
 
$
(32,011
)
Plus: proceeds from Federal ESPC projects
36,581

 
35,167

Adjusted cash from operations
$
(489
)
 
$
3,156

 
 
 
 
 
Three Months Ended March 31,
 
2018
 
2017
 
(Unaudited)
 
(Unaudited)
Construction backlog:
 
 
 
Awarded(1)
$
1,293,000

 
$
1,138,200

Fully-contracted
595,600

 
505,000

Total construction backlog
$
1,888,600

 
$
1,643,200

Energy assets in development(2)
$
221,400

 
$
206,600

 
Three Months Ended March 31
 
2018
 
2017
 
(Unaudited)
 
(Unaudited)
New contracts and awards:
 
 
 
New contracts
$
135,000

 
$
55,000

New awards(1)
$
229,000

 
$
236,000

(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

Restructuring and other charges


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.