amrc-20240630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


☑						QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024


☐						TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________.

Commission File Number: 001-34811

Ameresco, Inc.

(Exact name of registrant as specified in its charter)


Delaware						04-3512838
(State or Other Jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification No.)
111 Speen Street, Suite 410 Framingham, Massachusetts						01701
(Address of Principal Executive Offices)						(Zip Code)

(508) 661-2200

(Registrant’s Telephone Number, Including Area Code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol	Name of exchange on which registered
Class A Common Stock, par value $0.0001 per share	AMRC	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):


Large accelerated filer ☑	Accelerated Filer o	Non-accelerated filer o	Smaller reporting company ☐
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.


Class			Shares outstanding as of August 2, 2024
Class A Common Stock, $0.0001 par value per share			34,402,515
Class B Common Stock, $0.0001 par value per share			18,000,000

TABLE OF CONTENTS


						Page
PART I - FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements
Condensed Consolidated Balance Sheets at June 30, 2024 (Unaudited) and December 31, 2023						1
Condensed Consolidated Statements of Income for the three and six months ended June 30, 2024 and 2023 (Unaudited)						3
Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023 (Unaudited)						4
Condensed Consolidated Statements of Changes in Redeemable Non-Controlling Interests and Stockholders’ Equity for the three and six months ended June 30, 2024 and 2023 (Unaudited)						5
Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 (Unaudited)						7
Notes to Condensed Consolidated Financial Statements (Unaudited)						9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations						32
Item 3. Quantitative and Qualitative Disclosures About Market Risk						42
Item 4. Controls and Procedures						43

PART II - OTHER INFORMATION
Item 1. Legal Proceedings						43
Item 1A. Risk Factors						43
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds						43
Item 5. Other Information						43
Item 6. Exhibits						45
Signatures						46

Table of Contents

Part I - Financial Information

Item 1. Condensed Consolidated Financial Statements

AMERESCO, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)


	June 30, 2024		December 31, 2023
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents (1)	$	150,278	$	79,271
Restricted cash (1)	68,082		62,311
Accounts receivable, net of allowance of $2,060 and $903, respectively (1)	154,665		153,362
Accounts receivable retainage, net	39,225		33,826
Costs and estimated earnings in excess of billings (1)	651,748		636,163
Inventory, net	12,484		13,637
Prepaid expenses and other current assets (1)	134,375		123,391
Income taxes receivable	4,819		5,775
Project development costs, net	24,280		20,735
Total current assets (1)	1,239,956		1,128,471
Federal ESPC receivable	552,376		609,265
Property and equipment, net (1)	16,995		17,395
Energy assets, net (1)	1,813,649		1,689,424
Deferred income tax assets, net	29,512		26,411
Goodwill, net	75,245		75,587
Intangible assets, net	5,639		6,808
Operating lease assets (1)	68,194		58,586
Restricted cash, non-current portion (1)	14,740		12,094
Other assets (1)	148,796		89,735
Total assets (1)	$	3,965,102	$	3,713,776
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS, AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portions of long-term debt and financing lease liabilities, net (1)	$	523,832	$	322,247
Accounts payable (1)	497,026		402,752
Accrued expenses and other current liabilities (1)	100,198		108,831
Current portions of operating lease liabilities (1)	13,618		13,569
Billings in excess of cost and estimated earnings	97,493		52,903
Income taxes payable	220		1,169
Total current liabilities (1)	1,232,387		901,471
Long-term debt and financing lease liabilities, net of current portion, unamortized discount and debt issuance costs (1)	1,078,995		1,170,075
Federal ESPC liabilities	511,226		533,054
Deferred income tax liabilities, net	4,365		4,479
Deferred grant income	6,669		6,974
Long-term operating lease liabilities, net of current portion (1)	48,545		42,258
Other liabilities (1)	97,946		82,714
Commitments and contingencies (Note 10)
Redeemable non-controlling interests, net	43,777		46,865

(1) Includes restricted assets of consolidated variable interest entities (“VIEs”) at June 30, 2024 and December 31, 2023 of $196,379 and $312,701, respectively. Includes liabilities of consolidated VIEs at June 30, 2024 and December 31, 2023 of $43,071 and $199,063, respectively. See Note 13.

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AMERESCO, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts) (Continued)


	June 30, 2024		December 31, 2023
	(Unaudited)
Stockholders’ equity:
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, no shares issued and outstanding at June 30, 2024 and December 31, 2023	$	—	$	—
Class A common stock, $0.0001 par value, 500,000,000 shares authorized, 36,504,310 shares issued and 34,402,515 shares outstanding at June 30, 2024, 36,378,990 shares issued and 34,277,195 shares outstanding at December 31, 2023	3		3
Class B common stock, $0.0001 par value, 144,000,000 shares authorized, 18,000,000 shares issued and outstanding at June 30, 2024 and December 31, 2023	2		2
Additional paid-in capital	332,356		320,892
Retained earnings	597,930		595,911
Accumulated other comprehensive loss, net	(3,800)		(3,045)
Treasury stock, at cost, 2,101,795 shares at June 30, 2024 and December 31, 2023	(11,788)		(11,788)
Stockholders’ equity before non-controlling interest	914,703		901,975
Non-controlling interests	26,489		23,911
Total stockholders’ equity	941,192		925,886
Total liabilities, redeemable non-controlling interests, and stockholders’ equity	$	3,965,102	$	3,713,776

See notes to condensed consolidated financial statements.

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AMERESCO, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share and per share amounts) (Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Revenues	$	437,982	$	327,074	$	736,388	$	598,116
Cost of revenues	372,813		268,425		624,226		489,519
Gross profit	65,169		58,649		112,162		108,597
Earnings from unconsolidated entities	10		380		565		830
Selling, general and administrative expenses	44,226		41,413		83,781		82,714
Operating income	20,953		17,616		28,946		26,713
Other expenses, net	15,759		9,198		29,930		17,241
Income (loss) before income taxes	5,194		8,418		(984)		9,472
Income tax provision (benefit)	—		5		—		(498)
Net income (loss)	5,194		8,413		(984)		9,970
Net (income) loss attributable to non-controlling interests and redeemable non-controlling interests	(184)		(2,045)		3,057		(2,500)
Net income attributable to common shareholders	$	5,010	$	6,368	$	2,073	$	7,470

Net income attributable to common shareholders
Basic	$	0.10	$	0.12	$	0.04	$	0.14
Diluted	$	0.09	$	0.12	$	0.04	$	0.14
Weighted average common shares outstanding:
Basic	52,355		52,127		52,322		52,045
Diluted	53,113		53,211		53,016		53,232

See notes to condensed consolidated financial statements.

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AMERESCO, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands) (Unaudited)


	Three Months Ended June 30,
	2024		2023
Net income	$	5,194	$	8,413
Other comprehensive (loss) income:
Unrealized gain from interest rate hedges, net of tax	75		820
Foreign currency translation adjustments	(189)		943
Total other comprehensive (loss) income	(114)		1,763
Comprehensive income	5,080		10,176
Comprehensive (income) loss attributable to non-controlling interests and redeemable non-controlling interests:
Net income	(184)		(2,045)
Foreign currency translation adjustments	(94)		(2)
Comprehensive income attributable to non-controlling interests and redeemable non-controlling interests	(278)		(2,047)
Comprehensive income attributable to common shareholders	$	4,802	$	8,129

	Six Months Ended June 30,
	2024		2023
Net (loss) income	(984)		9,970
Other comprehensive (loss) income:
Unrealized gain (loss) from interest rate hedges, net of tax	614		(48)
Foreign currency translation adjustments	(1,351)		1,226
Total other comprehensive (loss) income	(737)		1,178
Comprehensive (loss) income	(1,721)		11,148
Comprehensive loss (income) attributable to non-controlling interests and redeemable non-controlling interests:
Net loss (income)	3,057		(2,500)
Foreign currency translation adjustments	(18)		(10)
Comprehensive loss (income) attributable to non-controlling interests and redeemable non-controlling interests	3,039		(2,510)
Comprehensive income attributable to common shareholders	$	1,318	$	8,638

See notes to condensed consolidated financial statements.

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AMERESCO, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE NON-CONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY

For the Three Months Ended June 30, 2024 and 2023

(In thousands, except share amounts) (Unaudited)


	Redeemable Non-controlling Interests (“RNCI”)		Class A Common Stock			Class B Common Stock			Additional Paid-in Capital				Accumulated Other Comprehensive Loss		Treasury Stock			Non-controlling Interests (“NCI”)		Total Stockholders’ Equity
			Shares	Amount		Shares	Amount				Retained Earnings				Shares	Amount
Balance, March 31, 2023	$	46,700	34,030,362	$	3	18,000,000	$	2	$	310,726	$	534,624	$	(4,645)	2,101,795	$	(11,788)	$	65,850	$	894,772
Exercise of stock options	—		134,600	—		—	—		1,523		—		—		—	—		—		1,523
Stock-based compensation expense	—		—	—		—	—		3,962		—		—		—	—		—		3,962
Employee stock purchase plan	—		24,833	—		—	—		1,017		—		—		—	—		—		1,017
Restricted stock units released	—		10,815	—		—	—		—		—		—		—	—		—		—
Unrealized gain from interest rate hedges, net	—		—	—		—	—		—		—		820		—	—		—		820
Foreign currency translation adjustment	—		—	—		—	—		—		—		941		—	—		2		943

Distributions to RNCI	(157)		—	—		—	—		—		—		—		—	—		—		—
Accretion of tax equity financing fees	28		—	—		—	—		—		(28)		—		—	—		—		(28)

Contributions from NCI	—		—	—		—	—		—		—		—		—	—		812		812
Distributions to NCI	—		—	—		—	—		—		—		—		—	—		(36,828)		(36,828)
Net income	1,423		—	—		—	—		—		6,368		—		—	—		622		6,990
Balance, June 30, 2023	$	47,994	34,200,610	$	3	18,000,000	$	2	$	317,228	$	540,964	$	(2,884)	2,101,795	$	(11,788)	$	30,458	$	873,983

Balance, March 31, 2024	$	43,908	34,320,161	$	3	18,000,000	$	2	$	327,367	$	592,947	$	(3,592)	2,101,795	$	(11,788)	$	25,224	$	930,163

Exercise of stock options	—		30,700	—		—	—		321		—		—		—	—		—		321
Stock-based compensation expense	—		—	—		—	—		3,678		—		—		—	—		—		3,678
Employee stock purchase plan	—		32,841	—		—	—		990		—		—		—	—		—		990
Restricted stock units released	—		18,813	—		—	—		—		—		—		—	—		—		—
Unrealized gain from interest rate hedges, net	—		—	—		—	—		—		—		75		—	—		—		75
Foreign currency translation adjustment	—		—	—		—	—		—		—		(283)		—	—		94		(189)

Distributions to RNCI	(158)		—	—		—	—		—		—		—		—	—		—		—
Accretion of tax equity financing fees	27		—	—		—	—		—		(27)		—		—	—		—		(27)

Contributions from NCI	—		—	—		—	—		—		—		—		—	—		1,928		1,928
Distributions to NCI	—		—	—		—	—		—		—		—		—	—		(941)		(941)

Net income	—		—	—		—	—		—		5,010		—		—	—		184		5,194
Balance, June 30, 2024	$	43,777	34,402,515	$	3	18,000,000	$	2	$	332,356	$	597,930	$	(3,800)	2,101,795	$	(11,788)	$	26,489	$	941,192

See notes to condensed consolidated financial statements.

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AMERESCO, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE NON-CONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY

For the Six Months Ended June 30, 2024 and 2023

(In thousands, except share amounts) (Unaudited)


	Redeemable Non-controlling Interests		Class A Common Stock			Class B Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock			Non-controlling Interests		Total Stockholders’ Equity
			Shares	Amount		Shares	Amount								Shares	Amount
Balance, December 31, 2022	$	46,623	33,948,362	$	3	18,000,000	$	2	$	306,314	$	533,549	$	(4,051)	2,101,795	$	(11,788)	$	49,002	$	873,031
Exercise of stock options	—		216,600	—		—	—		2,093		—		—		—	—		—		2,093
Stock-based compensation expense	—		—	—		—	—		7,999		—		—		—	—		—		7,999
Employee stock purchase plan	—		24,833	—		—	—		1,017		—		—		—	—		—		1,017
Restricted stock units released	—		10,815	—		—	—		—		—		—		—	—		—		—
Unrealized loss from interest rate hedges, net	—		—	—		—	—		—		—		(48)		—	—		—		(48)
Foreign currency translation adjustment	—		—	—		—	—		—		—		1,215		—	—		11		1,226

Distributions to RNCI	(335)		—	—		—	—		—		—		—		—	—		—		—
Accretion of tax equity financing fees	55		—	—		—	—		—		(55)		—		—	—		—		(55)
Investment fund call option exercise	195		—	—		—	—		(195)		—		—		—	—		—		(195)
Contributions from NCI	—		—	—		—	—		—		—		—		—	—		922		922
Distributions to NCI	—		—	—		—	—		—		—		—		—	—		(20,521)		(20,521)
Net income	1,456		—	—		—	—		—		7,470		—		—	—		1,044		8,514
Balance, June 30, 2023	$	47,994	34,200,610	$	3	18,000,000	$	2	$	317,228	$	540,964	$	(2,884)	2,101,795	$	(11,788)	$	30,458	$	873,983

Balance, December 31, 2023	$	46,865	34,277,195	$	3	18,000,000	$	2	$	320,892	$	595,911	$	(3,045)	2,101,795	$	(11,788)	$	23,911	$	925,886

Exercise of stock options	—		62,589	—		—	—		504		—		—		—	—		—		504
Stock-based compensation expense	—		—	—		—	—		6,704		—		—		—	—		—		6,704
Employee stock purchase plan	—		32,841	—		—	—		990		—		—		—	—		—		990
Restricted stock units released	—		29,890	—		—	—		—		—		—		—	—		—		—
Unrealized gain from interest rate hedges, net	—		—	—		—	—		—		—		614		—	—		—		614
Foreign currency translation adjustment	—		—	—		—	—		—		—		(1,369)		—	—		18		(1,351)

Distributions to RNCI	(287)		—	—		—	—		—		—		—		—	—		—		—
Accretion of tax equity financing fees	54		—	—		—	—		—		(54)		—		—	—		—		(54)

Contributions from NCI	—		—	—		—	—		3,040		—		—		—	—		27,752		30,792
Distributions to NCI	—		—	—		—	—		—		—		—		—	—		(1,004)		(1,004)
Purchase of shares from NCI	—		—	—		—	—		226		—		—		—	—		(23,986)		(23,760)
Net (loss) income	(2,855)		—	—		—	—		—		2,073		—		—	—		(202)		1,871
Balance, June 30, 2024	$	43,777	34,402,515	$	3	18,000,000	$	2	$	332,356	$	597,930	$	(3,800)	2,101,795	$	(11,788)	$	26,489	$	941,192

See notes to condensed consolidated financial statements.

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AMERESCO, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands) (Unaudited)


	Six Months Ended June 30,
	2024		2023
Cash flows from operating activities:
Net (loss) income	$	(984)	$	9,970
Adjustments to reconcile net (loss) income to net cash flows from operating activities:
Depreciation of energy assets, net	35,685		27,725
Depreciation of property and equipment	2,452		1,607
Increase in contingent consideration	—		155
Accretion of ARO liabilities	154		130
Amortization of debt discount and debt issuance costs	2,322		2,364
Amortization of intangible assets	1,076		991
Provision for credit losses	1,211		579
Loss on disposal of assets and impairment loss	382		18

Non-cash project revenue related to in-kind leases	(2,347)		—
Earnings from unconsolidated entities	(565)		(830)
Net gain from derivatives	(3,968)		(261)

Stock-based compensation expense	6,704		7,999
Deferred income taxes, net	687		(3,177)

Unrealized foreign exchange loss	1,027		38
Changes in operating assets and liabilities:
Accounts receivable	5,943		60,028
Accounts receivable retainage	(5,525)		354
Federal ESPC receivable	(85,788)		(88,072)
Inventory, net	1,153		91
Costs and estimated earnings in excess of billings	(27,779)		15,664
Prepaid expenses and other current assets	24,698		1,312
Income taxes receivable, net	21		11
Project development costs	(3,719)		(2,825)
Other assets	(3,118)		(1,867)
Accounts payable, accrued expenses and other current liabilities	72,777		(80,555)
Billings in excess of cost and estimated earnings	46,969		13,462
Other liabilities	4,663		1,240
Cash flows from operating activities	74,131		(33,849)
Cash flows from investing activities:
Purchases of property and equipment	(2,066)		(2,662)
Capital investments in energy assets	(227,383)		(261,547)
Capital investments in major maintenance of energy assets	(10,527)		(5,810)

Net proceeds from equity method investments	12,956		—
Contributions to equity method investments	(6,192)		—

Acquisitions, net of cash received	—		(9,184)
Loans to joint venture investments	—		(39)
Cash flows from investing activities	(233,212)		(279,242)


See notes to condensed consolidated financial statements.

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AMERESCO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands) (Unaudited) (Continued)

	Six Months Ended June 30,
	2024		2023
Cash flows from financing activities:

Payments of debt discount and debt issuance costs	$	(6,008)	$	(5,074)
Proceeds from exercises of options and ESPP	1,494		3,110

Payments on senior secured revolving credit facility, net	(34,900)		(80,000)
Proceeds from long-term debt financings	359,331		343,923
Proceeds from Federal ESPC projects	120,128		76,699
Net proceeds from energy asset receivable financing arrangements	5,280		8,114

Contributions from non-controlling interests	30,792		499
Distributions to non-controlling interest	(1,004)		(20,521)
Distributions to redeemable non-controlling interests, net	(263)		(338)
Payment on seller's promissory note	(29,441)		—
Payments on debt and financing leases	(206,974)		(61,335)
Cash flows from financing activities	238,435		265,077
Effect of exchange rate changes on cash	70		(61)
Net increase (decrease) in cash, cash equivalents, and restricted cash	79,424		(48,075)
Cash, cash equivalents, and restricted cash, beginning of period	153,676		149,888
Cash, cash equivalents, and restricted cash, end of period	$	233,100	$	101,813

Supplemental disclosures of cash flow information:
Cash paid for interest	$	52,528	$	31,778
Cash paid for income taxes	$	824	$	2,500
Non-cash Federal ESPC settlement	$	143,936	$	91,379
Accrued purchases of energy assets	$	89,593	$	80,519
Non-cash contributions from non-controlling interest	$	—	$	422
Non-cash financing for energy asset project acquisition	$	32,500	$	—

See notes to condensed consolidated financial statements.

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AMERESCO, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands) (Unaudited)

1. BASIS OF PRESENTATION

The accompanying condensed consolidated financial statements of Ameresco, Inc. (including its subsidiaries, the “Company,” “Ameresco,” “we,” “our,” or “us”) are unaudited, according to certain rules and regulations of the Securities and Exchange Commission, and include, in our opinion, normal recurring adjustments necessary for a fair presentation in conformity with accounting principles generally accepted in the United States (“GAAP”) of the results for the periods indicated.

The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of results which may be expected for the full year. The December 31, 2023 consolidated balance sheet data was derived from audited financial statements, but certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. The interim condensed consolidated financial statements and accompanying notes should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended December 31, 2023, included in our annual report on Form 10-K (“2023 Form 10-K”) filed with the Securities and Exchange Commission on February 29, 2024 as amended on March 11, 2024.

Reclassification and Rounding

Certain prior period amounts were reclassified to conform to the presentation in the current period. We round amounts in the condensed consolidated financial statements to thousands and calculate all percentages and per-share data from the underlying whole-dollar amounts. Thus, certain amounts may not foot, crossfoot, or recalculate based on reported numbers due to rounding.

Significant Risks and Uncertainties

Global factors have continued to result in global supply chain disruptions and inflationary pressures.

We have considered the impact of general global economic conditions on the assumptions and estimates used, which may change in response to this evolving situation. Results of future operations and liquidity could be adversely impacted by a number of factors including supply chain disruptions, varying levels of inflation, payments of outstanding receivable amounts beyond normal payment terms, workforce disruptions, and uncertain demand. As of the date of issuance of these condensed consolidated financial statements, we cannot reasonably estimate the extent to which macroeconomic conditions may impact our financial condition, liquidity, or results of operations in the foreseeable future. The ultimate impact of the pandemic and general global economic conditions on our business is highly uncertain and will depend on future developments, and such impacts could exist for an extended period of time, even after the pandemic subsides.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Our accounting policies are set forth in Note 2 to the consolidated financial statements contained in our 2023 Form 10-K. We have included certain updates to those policies below.

Accounts Receivable and Allowance for Credit Losses

Changes in the allowance for credit losses are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Allowance for credit losses, beginning of period	$	898	$	971	$	903	$	911
Charges to costs and expenses, net	1,210		486		1,211		579
Account write-offs and other	(48)		(554)		(54)		(587)
Allowance for credit losses, end of period	$	2,060	$	903	$	2,060	$	903

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist primarily of other receivables, deferred project costs, and other short-term prepaid expenditures that will be expensed within one year.

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AMERESCO, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands) (Unaudited) (Continued)

Prepaid expenses and other current assets comprised of the following:


	June 30, 2024		December 31, 2023
Other receivables	$	17,185	$	74,454
Deferred project costs	105,746		38,240
Prepaid expenses	11,444		10,697
Prepaid expenses and other current assets	$	134,375	$	123,391

Recent Accounting Pronouncements

Business Combinations— Joint Venture Formations

In August 2023, the FASB issued ASU 2023-05, Business Combinations— Joint Venture Formations (Subtopic 805-60) Recognition and Initial Measurement, which addresses the accounting for contributions made to a joint venture, upon formation, in a joint venture’s separate financial statements. ASU 2023-05 is effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. We are currently evaluating the impact that adopting this new accounting standard would have on our condensed consolidated financial statements.

Disclosure Improvements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative, which updates the disclosure or presentation requirements for a variety of topics in the codification. ASU 2023-06 is effective from the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K, with early adoption prohibited. We will monitor the removal of the requirements from the current regulations and adopt the related amendments, but we do not anticipate this new guidance will have a material impact on our condensed consolidated financial statements as we are currently subject to SEC requirements.

Segment Reporting (Topic 820) - Improvements to Reportable Segment Disclosures

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 820) - Improvements to Reportable Segment Disclosures, which improves reportable segment disclosures by requiring enhanced disclosures for significant segment expenses and other segment items. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We are currently evaluating the impact that adopting this new accounting standard would have on our condensed consolidated financial statements.

Income Taxes (Topic 740) - Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, to enhance the income tax disclosures, including disaggregation of information in the rate reconciliation table and disaggregated information related to income taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. We are currently evaluating the impact that adopting this new accounting standard would have on our condensed consolidated financial statements.

Compensation—Stock Compensation (Topic 718) - Scope Application of Profits Interest and Similar Awards

In March 2024, the FASB issued ASU 2024-01, Compensation—Stock Compensation (Topic 718) - Scope Application of Profits Interest and Similar Awards, to clarify how to determine if a profits interest or similar award is within the scope of ASC 718 or is not a share-based payment arrangement and is within the scope of other guidance. ASU 2024-01 is effective for fiscal years beginning after December 15, 2024. We are currently evaluating the impact that adopting this new accounting standard would have on our condensed consolidated financial statements.

Codification Improvements—Amendments to Remove References to the Concepts Statements

In March 2024, the FASB issued ASU 2024-02, Codification Improvements—Amendments to Remove References to the Concepts Statements, to remove references to various FASB Concepts Statements based on suggestions received from stakeholders on the Accounting Standards Codification and other incremental improvements to GAAP. ASU 2024-02 is effective for fiscal years beginning after December 15, 2024. We are currently evaluating the impact that adopting this new accounting standard would have on our condensed consolidated financial statements.

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AMERESCO, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands) (Unaudited) (Continued)

3. REVENUE FROM CONTRACTS WITH CUSTOMERS

Disaggregation of Revenue

Our reportable segments for the three and six months ended June 30, 2024 were North America Regions, U.S. Federal, Europe, Alternative Fuels and All Other. On January 1, 2024, we changed the structure of our internal organization, and our U.S. Regions and Canada are now included in North America Regions. Additionally, our Asset Sustainability Group was formerly included in Canada, but is now included in “All Other”. As a result, previously reported amounts have been reclassified for comparative purposes.

The following table presents our revenue disaggregated by line of business and reportable segment for the three months ended June 30, 2024:


	North America Regions		U.S. Federal		Europe		Alternative Fuels		All Other		Total
Project revenue	$	178,742	$	68,080	$	70,064	$	13,884	$	(7)	$	330,763
O&M revenue	8,511		14,628		895		2,136		—		26,170
Energy assets	19,746		3,724		189		29,728		29		53,416

Other	1,132		305		1,911		104		24,181		27,633
Total revenues	$	208,131	$	86,737	$	73,059	$	45,852	$	24,203	$	437,982

The following table presents our revenue disaggregated by line of business and reportable segment for the three months ended June 30, 2023:


	North America Regions		U.S. Federal		Europe		Alternative Fuels		All Other		Total
Project revenue	$	124,584	$	63,904	$	40,399	$	—	$	—	$	228,887
O&M revenue	6,362		13,901		460		2,295		—		23,018
Energy assets	19,391		2,164		452		28,021		(22)		50,006

Other	1,434		50		2,214		—		21,465		25,163
Total revenues	$	151,771	$	80,019	$	43,525	$	30,316	$	21,443	$	327,074

The following table presents our revenue disaggregated by line of business and reportable segment for the six months ended June 30, 2024:


	North America Regions		U.S. Federal		Europe		Alternative Fuels		All Other		Total
Project revenue	$	294,953	$	111,559	$	111,488	$	17,047	$	—	$	535,047
O&M revenue	15,444		29,906		1,642		4,513		—		51,505
Energy assets	33,500		5,653		360		57,028		29		96,570

Other	2,519		509		3,691		123		46,424		53,266
Total revenues	$	346,416	$	147,627	$	117,181	$	78,711	$	46,453	$	736,388

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AMERESCO, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands) (Unaudited) (Continued)

The following table presents our revenue disaggregated by line of business and reportable segment for the six months ended June 30, 2023:


	North America Regions		U.S. Federal		Europe		Alternative Fuels		All Other		Total
Project revenue	$	243,815	$	109,453	$	57,599	$	—	$	1,250	$	412,117
O&M revenue	11,901		26,601		793		5,981		—		45,276
Energy assets	33,798		3,240		971		52,674		95		90,778

Other	2,799		281		3,258		—		43,607		49,945
Total revenues	$	292,313	$	139,575	$	62,621	$	58,655	$	44,952	$	598,116

The following table presents informat