Ameresco, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Business Segment Information

Business Segment Information

9 Months Ended

Sep. 30, 2019

BUSINESS SEGMENT INFORMATION

The Company reports results under ASC 280, Segment Reporting. The Company’s reportable segments are U.S. Regions, U.S. Federal, Canada and Non-Solar Distributed Generation (“DG”). The Company’s U.S. Regions, U.S. Federal and Canada segments offer energy efficiency products and services, which include the design, engineering and installation of equipment and other measures to improve the efficiency and control the operation of a facility’s energy infrastructure, renewable energy solutions and services, which include the construction of small-scale plants that the company owns or develops for customers that produce electricity, gas, heat or cooling from renewable sources of energy and O&M services. The Company’s Non-Solar DG segment sells electricity, processed renewable gas fuel, heat or cooling, produced from renewable sources of energy, other than solar, and generated by small-scale plants that the Company owns and O&M services for customer owned small-scale plants. The “All Other” category offers enterprise energy management services, consulting services and the sale of solar-PV energy products and systems which we refer to as integrated-PV.

These segments do not include results of other activities, such as corporate operating expenses not specifically allocated to the segments. Certain reportable segments are an aggregation of operating segments. The reports of the Company’s chief operating decision maker do not include assets at the operating segment level. The accounting policies are the same as those described in the summary of significant accounting policies in Note 2 included in the Company’s annual report on Form 10-K for the year ended December 31, 2018 filed with the Securities and Exchange Commission on March 8, 2019.

An analysis of the Company’s business segment information and reconciliation to the condensed consolidated financial statements is as follows:



	U.S. Regions		U.S. Federal		Canada			Non-Solar DG		All Other			Total Consolidated
Three Months Ended September 30, 2019
Revenues	$	84,079	$	71,258	$	12,665		$	21,875	$	22,149		$	212,026
Interest income	69		92		—			21		—			182
Interest expense	1,548		209		179			1,213		—			3,149
Depreciation and amortization of intangible assets	2,538		901		396			5,149		429			9,413
Unallocated corporate activity	—		—		—			—		—			(8,482		)
Income before taxes, excluding unallocated corporate activity	3,350		10,967		1,577			977		881			17,752
Three Months Ended September 30, 2018
Revenues	$	86,402	$	62,378	$	11,604		$	22,138	$	22,853		$	205,375
Interest income	2		36		—			38		—			76
Interest expense	1,403		225		480			1,681		(13		)	3,776
Depreciation and amortization of intangible assets	1,341		671		294			4,530		378			7,214
Unallocated corporate activity	—		—		—			—		—			(8,648		)
Income before taxes, excluding unallocated corporate activity	5,256		10,969		664			3,851		1,959			22,699
Nine Months Ended September 30, 2019
Revenues	$	227,896	$	169,337	$	27,696		$	66,370	$	69,022		$	560,321
Interest income	132		160		—			65		39			396
Interest expense	4,118		627		517			4,075		—			9,337
Depreciation and amortization of intangible assets	7,184		2,524		986			16,051		1,153			27,898
Unallocated corporate activity	—		—		—			—		—			(25,331		)
Income before taxes, excluding unallocated corporate activity	5,530		26,631		1,529			5,758		7,592			47,040
Nine Months Ended September 30, 2018
Revenues	$	249,871	$	168,377	$	28,466		$	60,176	$	62,877		$	569,767
Interest income	5		84		—			120		—			209
Interest expense	3,911		771		1,464			4,575		—			10,721
Depreciation and amortization of intangible assets	4,048		2,004		873			12,942		1,134			21,001
Unallocated corporate activity	—		—		—			—		—			(23,269		)
Income (loss) before taxes, excluding unallocated corporate activity	14,606		26,864		(1,983		)	8,796		3,771			52,054