FRAMINGHAM – Ameresco, Inc., an energy solutions provider today, August 8, announced financial results for the fiscal quarter ended June 30, 2019.
The Framingham-based company has also furnished supplemental information in conjunction with this press release in a Current Report on Form 8-K.
“Second quarter results reflected solid execution in our smart energy solutions, while we continued to develop and place in operation an increasing number of energy assets,” said George P. Sakellaris, President and Chief Executive Officer. “We developed highly-complex projects for government and commercial clients, moved forward with the development of several large energy assets, and reached a milestone of over 100MW of Company-owned solar assets in operation during the quarter.
“Our recently-commissioned Parris Island project for the US Marine Corp highlights the increased demand for comprehensive smart energy solutions driven not only by cost savings, but also by reliability and resiliency requirements. We expect these types of projects, which involve advanced energy technology knowhow, to continue to drive Ameresco’s revenue opportunities as few companies have our level of expertise and experience in delivering the requisite solutions. Our regional teams are engaged in both winning smart energy projects and identifying additional distributed energy asset opportunities, enabling us to leverage our expertise across our entire geographic footprint. At the end of the second quarter, we had over 250MWe of energy assets in various stages of development across diversified geographies in the U.S. and Canada.
“Key first half 2019 metrics that provide visibility and support our long-term growth outlook were robust, namely contracted backlog, which increased 16% from year-ago levels, and energy assets in development, which more than doubled year-over-year.”
Second Quarter Financial Results
(All financial result comparisons made are against the prior year period unless otherwise noted.)
Revenues were $198.2 million, compared to $197.0 million last year, in line with our expectations of modest growth across our platforms.
Operating income was $13.1 million, compared to $14.0 million.
Net income attributable to common shareholders was $9.2 million, compared to $8.7 million, and non-GAAP net income was $8.6 million, compared to $8.4 million.
Net income per diluted share was $0.19 and non-GAAP EPS was $0.18, each flat year-over-year.
Adjusted EBITDA, a non-GAAP financial measure, was $23.6 million, compared to $21.4 million.
Cash flows used in operating activities were $51.2 million, compared to $20.1 million, and adjusted cash used in operations, a non-GAAP financial measure, was $8.0 million, compared to adjusted cash from operations of $13.0 million.
Backlog and Awards
Total project backlog at June 30, 2019 was $2.0 billion and was comprised of the following:
- $789 million in contracted backlog representing signed customer contracts for installation or construction of projects, which we expect to convert into revenue over the next one to three 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 $518 million or 258MWe.
Project updates in the second quarter of 2019:
- Ameresco completed a 10MWe distributed energy security ESPC project at Marine Corps Recruit Depot Parris Island
- Ameresco completed a solar array with NASA at Goddard Space Flight Center’s Wallops Flight Facility
- Ameresco completed the installation of a 2MW solar energy generation project for the University of Minnesota and advanced their goal to reduce emissions by 50% by 2020
Owned Energy Asset updates in the second quarter of 2019:
- Ribbon cutting for historic Phoenix RNG plant (biogas-to-renewable natural gas facility – largest in the US)
- Ribbon cutting to celebrate the completion of Sutter Santa Rosa Regional Hospital – 1.6MW solar energy generation project with Ameresco
- Ribbon cutting announcing the construction of solar array on closed landfill in Westport, MA – source of renewable energy and revenue for the town
Summary and Outlook
First half performance was in line with the Company’s expectations and represented effective execution in smart energy solutions and expanded recurring revenue from its energy asset portfolio and O&M operations. Ameresco ended the first half of 2019 with a substantial contracted backlog and large energy asset development pipeline, which support Company expectations for strong second half 2019 revenue and earnings comparisons and accelerated growth entering 2020.
Based on year-to-date performance and visibility into the remainder of 2019, the Company reaffirms its 2019 guidance for net income per diluted share of $0.77 to $0.85 and adjusted EBITDA of $95 million to $103 million. Ameresco also reaffirms total revenue guidance of $845 million to $885 million. This guidance excludes the impact of any non-controlling interest activity, restructuring activities, deconsolidation of a variable interest entity, as well as any related tax impact. Also 2019 guidance does not assume any benefit from IRC Section 179D deductions, which in 2018 provided a benefit of $5.8 million, and have since expired.
Founded in 2000, Ameresco, Inc. (NYSE:AMRC) is an 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, Ameresco has more than 1,000 employees providing local expertise in the United States, Canada, and the United Kingdom.