AMRC Ameresco Inc

FY24 Total Revenue Growth of 29%

Total Project Backlog up 24% Y/Y to $4.8 billion

Record Q4 Contract Conversions of $1.1 billion Drives Y/Y Contracted Backlog up 92%

Record 241 MWe Energy Assets Placed in Operation During 2024

Full Year and Fourth Quarter 2024 Financial Highlights:

• Revenues of $1,769.9 million and $532.7 million
• Net income attributable to common shareholders of $56.8 million and $37.1 million
• GAAP EPS of $1.07 and $0.70
• Non-GAAP EPS of $1.20 and $0.88
• Adjusted EBITDA of $225.3 million and $87.2 million

Ameresco, Inc. (NYSE: AMRC), a leading energy solutions provider dedicated to helping customers navigate the energy transition, today announced financial results for the fiscal quarter ended December 31, 2024. The Company also furnished supplemental information in conjunction with this press release in a Current Report on Form 8-K. The supplemental information, which includes Non-GAAP financial measures, has been posted to the “Investors” section of the Company’s website at www.ameresco.com. Reconciliations of Non-GAAP measures to the appropriate GAAP measures are included herein. All financial result comparisons made are against the prior year period unless otherwise noted.

CEO George Sakellaris commented, “The fourth quarter represented a strong and resilient finish to an excellent year for Ameresco. Our team continued to deliver solid results in a dynamic business environment while positioning the Company for future growth and adding to our multi-year visibility. Our record revenue performance was driven by growth across our business lines, reflecting robust demand for cost effective projects that provide energy savings and resilience. This was also a record quarter in project contract conversions with over $1 billion, bringing our contracted project backlog to over $2.5 billion at year-end, approximately twice 2023 levels. We also placed a record 241 MWe of energy assets into service during the year. These accomplishments have added considerably to our total multiyear revenue visibility which now stands at almost $10 billion. During the quarter, we also successfully divested our AEG business unit allowing us to remain focused on our core businesses and the exciting growth opportunities within our target markets.”

Fourth Quarter Financial Results

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

(in millions)

Q4 2024

Q4 2023

 

Revenue

Net Income (1)

Adj. EBITDA

Revenue

Net Income (1)

Adj. EBITDA

Projects

$418.3

$0.4

$13.7

$346.5

$27.2

$26.3

Energy Assets

$57.6

$8.9

$31.1

$43.9

$1.3

$23.3

O&M

$26.5

$1.7

$2.6

$24.4

$4.1

$3.4

Other

$30.2

$26.2

$39.8

$26.6

$1.1

$1.9

Total (2)

$532.7

$37.1

$87.2

$441.4

$33.7

$54.9

 

 

 

 

 

 

 

(1) Net Income represents net income attributable to common shareholders

(2) Numbers in table may not sum due to rounding.

Total revenue increased 20.7% to $532.7 million, with growth across all four of our business lines. Projects revenue grew 20.7% to $418.3 million, driven by our focus on project execution and the conversion of our awarded backlog to contracts. Energy Assets revenue increased 31.2% to $57.6 million, on the strength of record growth in assets placed in service. O&M revenue increased 8.6% to $26.5 million reflecting a solid attachment rate to our growing projects business. Other revenue increased 13.7% to $30.2 million. Gross margin of 12.5% for the quarter was significantly lower than expected. Unanticipated cost overruns on two of our large-scale legacy projects, negatively impacted gross profit by approximately $20 million, or 400 basis points. Operating income of $44.6 million, included a gain recognized on the sale of our AEG business unit of approximately $38.0 million, was partially offset by non-cash impairment charges of approximately $12.0 million taken on certain energy assets and higher depreciation expenses of $8.0 million. Interest and other expenses, net was $23.4 million, representing an increase of 45.7%. We continued to take advantage of clean energy tax incentives, resulting in an effective tax rate benefit of (58.9)% compared to a benefit of (67.0)% in 2023. Net income attributable to common shareholders was $37.1 million, increasing by 14.6%. Adjusted EBITDA of $87.2 million, increased 58.7%.

Balance Sheet and Cash Flow Metrics

($ in millions)

December 31, 2024

Total Corporate Debt (1)

$243.1

Corporate Debt Leverage Ratio (2)

3.2x

 

 

Total Energy Asset Debt (3)

$1,390.2

Energy Asset Book Value (4)

$1,915.3

Energy Debt Advance Rate (5)

73%

 

 

Q4 Cash Flows from Operating Activities

$18.4

Plus: Q4 Proceeds from Federal ESPC Projects

$35.4

Equals: Q4 Adjusted Cash from Operations

$53.8

 

 

8-quarter rolling average Cash Flows from Operating Activities

$6.0

Plus: 8-quarter rolling average Proceeds from Federal ESPC Projects

$39.9

Equals: 8-quarter rolling average Adjusted Cash from Operations

$45.8

 

 

(1) Subordinated debt, term loans, and drawn amounts on the revolving line of credit, net of debt discount and issuance costs

(2) Debt to EBITDA, as calculated under our Sr. Secured Credit Facility

(3) Term loans, sale-leasebacks and construction loan project financings for our Energy Assets in operations and in-construction and development

(4) Book Value of our Energy Assets in operations and in-construction and development

(5) Total Energy Asset Debt divided by Energy Asset Book Value

The Company ended 2024 with $108.5 million in cash. During the fourth quarter the Company executed the planned, strategic divestiture of our energy technology and advisory services business, AEG, which resulted in significant cash proceeds and a higher than expected gain of approximately $38.0 million. The Company used the net cash proceeds from the sale to pay down its corporate term loan, resulting in an improvement in the corporate debt leverage ratio as of December 31, 2024. Our total corporate debt including our subordinated debt, term loans and drawn amounts on our revolving line of credit declined to $243.1 million from $272.5 million. Subsequent to the year-end, we extended and increased this facility, providing further financial flexibility and increased capacity to help fund our growth. During the fourth quarter we successfully executed approximately $237.0 million in project financing commitments to help fund our Energy Asset business. Our Energy Asset Debt was $1.4 billion with an Energy Debt Advance rate of 73% on the Energy Asset Book Value. Our Adjusted Cash from Operations during the quarter was $53.8 million. Our 8-quarter rolling average Adjusted Cash from Operations was $45.8 million.

Project and Asset Highlights

($ in millions)

 

At December 31, 2024

Awarded Project Backlog (1)

 

$2,274

Contracted Project Backlog

 

$2,544

Total Project Backlog

 

$4,818

12-month Contracted Backlog (2)

 

$1,146

 

 

 

O&M Revenue Backlog

 

$1,378

Energy Asset Visibility (3)

 

$3,325

Operating Energy Assets

 

731 MWe

Ameresco's Net Assets in Development (4)

 

637 MWe

 

 

 

(1) Customer contracts that have not been signed yet

(2) We define our 12-month backlog as the estimated amount of revenues that we expect to recognize in the next twelve months from our fully-contracted backlog

(3) Estimated contracted revenue and incentives during PPA period plus estimated additional revenue from operating RNG assets over a 20-year period, assuming RINs at $1.50/gallon and brown gas at $3.50/MMBtu with $3.00/MMBtu for LCFS on certain projects

(4) Net MWe capacity includes only our share of any jointly owned assets

• Ameresco brought 31 MWe of Energy Assets into operation, including the 15.6 MWe Roxana RNG plant.
• Ameresco’s Assets in Development increased 48 MWe during the quarter to 637 MWe with the addition of a number of large battery and PV assets.
• The Southern California Edison projects continue to progress and we expect them to be finalized this year.

Summary and Outlook

“Entering 2025, Ameresco is well-positioned for continued long term profitable growth even in an evolving industry and political landscape. While we expect continued growth in our recurring energy assets and O&M businesses, our projects business, and specifically our federal projects, will be impacted as the new administration determines which projects align with its funding priorities. We expect there to be continued long-term demand for our budget-neutral, cost-saving solutions as energy demand and prices continue to increase. We also expect the growing need for resilient, reliable power and infrastructure upgrades to drive the continued growth of our energy solutions as these drivers align with the new administration's priorities. Additionally, we foresee growing contributions from our European business, with renewable projects driven by decarbonization and net-zero commitments. These critical market drivers and our proven tailored solutions will continue to bolster our status as a leading global market player.”

Given the current unpredictable political and regulatory environment, we have evaluated our federal government exposure in our 2025 guidance. We are guiding revenue of $1.9 billion and adjusted EBITDA $235 million at the midpoints of our ranges. We have reviewed risks related to project cancellations, pauses and re-scopes and factored that into our guidance. However, if these factors last longer than anticipated, our earnings could be impacted.

We anticipate placing approximately 100-120 MWe of energy assets in service, including 1-2 RNG plants. Our expected capex is $350 million to $400 million, the majority of which we expect to fund with additional energy asset debt, tax equity or tax credit sales.

We anticipate that first quarter revenue and Adjusted EBITDA will be similar to Q1 last year. Because the first quarter is our seasonally lowest revenue quarter, and due to the generally linear nature of depreciation and interest expenses, we expect to have negative EPS. With respect to the cadence of revenue, we expect revenues in the second half of the year to represent approximately 60% of our total revenue for 2025. This is consistent with our performance from the past couple of years.

Our 2025 guidance does not include the potential impact of a change in accounting principle related to sale-leaseback arrangements that is currently being assessed. If implemented, this change could result in lower annual interest and other expenses with an estimated impact of approximately $20 million in 2025.

FY 2025 Guidance Ranges

Revenue

$1.85 billion

$1.95 billion

Gross Margin

15.5%

16.0%

Adjusted EBITDA

$225 million

$245 million

Depreciation & Amortization

$103 million

$105 million

Interest Expense & Other

$85 million

$90 million

Effective Tax Rate

(50)%

(35)%

Income Attributable to Non-Controlling Interest

($5) million

($8) million

Non-GAAP EPS

$0.70

$0.90

The Company’s Adjusted EBITDA and Non-GAAP EPS guidance excludes the potential impact of redeemable non-controlling interest activity, one-time charges, energy asset and goodwill impairment charges, changes in contingent consideration, restructuring activities, as well as any related tax impact.

Conference Call/Webcast Information The Company will host a conference call today at 4:30 p.m. ET to discuss fourth quarter 2024 financial results, business and financial outlook, and other business highlights. To participate on the day of the call, dial 1-888-596-4144, or internationally 1-646-968-2525, and enter the conference ID: 4966851, approximately 10 minutes before the call. 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 “Investors” section of the Company’s website at www.ameresco.com. If you are unable to listen to the live call, 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 Non-GAAP Financial Measures and Non-GAAP Financial Guidance in the accompanying tables.

About Ameresco, Inc. Founded in 2000, Ameresco, Inc. (NYSE:AMRC) is a leading energy solutions provider dedicated to helping customers reduce costs, enhance resilience, and decarbonize to net zero in the global energy transition. Our comprehensive portfolio includes implementing smart energy efficiency solutions, upgrading aging infrastructure, and developing, constructing, and operating distributed energy resources. As a trusted full-service partner, Ameresco shows the way by reducing energy use and delivering diversified generation solutions to Federal, state and local governments, utilities, educational and healthcare institutions, housing authorities, and commercial and industrial customers. Headquartered in Framingham, MA, Ameresco has more than 1,500 employees providing local expertise in North America and Europe. 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, visibility, backlog, pending agreements, financial guidance including estimated future revenues, net income, adjusted EBITDA, Non-GAAP EPS, gross margin, effective tax rate, interest rate, depreciation, tax attributes and capital investments, as well as statements about our financing plans, the impact the IRA, the impact of policies and regulatory changes implemented by the new U.S. administration, supply chain disruptions, shortage and cost of materials and labor, and other macroeconomic and geopolitical challenges; the impact from a possible change in accounting principle; our expectations related to our agreement with SCE including the impact of delays and any requirement to pay liquidated damages, 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: demand for our energy efficiency and renewable energy solutions; the timing of, and ability to, enter into contracts for awarded projects on the terms proposed or at all; the timing of work we do on projects where we recognize revenue on a percentage of completion basis; the ability to perform under signed contracts without delay and in accordance with their terms and the potential for liquidated and other damages we may be subject to; the fiscal health of the government and the risk of government shutdowns and reductions in the federal workforce; our ability to complete and operate our projects on a profitable basis and as committed to our customers; our cash flows from operations and our ability to arrange financing to fund our operations and projects; our customers’ ability to finance their projects and credit risk from our customers; our ability to comply with covenants in our existing debt agreements; the impact of macroeconomic challenges, weather related events and climate change; our reliance on third parties for our construction and installation work; availability and cost of labor and equipment particularly given global supply chain challenges, tariffs and global trade conflicts; global supply chain challenges, component shortages and inflationary pressures; 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 output and performance of our energy plants and energy projects; cybersecurity incidents and breaches; regulatory and other risks inherent to constructing and operating energy assets; the effects of our acquisitions and joint ventures; seasonality in construction and in demand for our products and services; a customer’s decision to delay our work on, or other risks involved with, a particular project; the addition of new customers or the loss of existing customers; market price of our Class A Common stock prevailing from time to time; the nature of other investment opportunities presented to our Company from time to time; risks related to our international operation and international growth strategy; and other factors discussed in our most recent Annual Report on Form 10-K and our quarterly reports on Form 10-Q. 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 amounts)

 

 

 

December 31,

 

 

2024

 

2023

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

108,516

 

 

$

79,271

 

Restricted cash

 

 

69,706

 

 

 

62,311

 

Accounts receivable, net

 

 

256,961

 

 

 

153,362

 

Accounts receivable retainage

 

 

39,843

 

 

 

33,826

 

Unbilled revenue

 

 

644,105

 

 

 

636,163

 

Inventory

 

 

11,556

 

 

 

13,637

 

Prepaid expenses and other current assets

 

 

145,906

 

 

 

123,391

 

Income tax receivable

 

 

1,685

 

 

 

5,775

 

Project development costs, net

 

 

22,856

 

 

 

20,735

 

Total current assets

 

 

1,301,134

 

 

 

1,128,471

 

Federal ESPC receivable

 

 

609,128

 

 

 

609,265

 

Property and equipment, net

 

 

11,040

 

 

 

17,395

 

Energy assets, net

 

 

1,915,311

 

 

 

1,689,424

 

Goodwill, net

 

 

66,305

 

 

 

75,587

 

Intangible assets, net

 

 

8,814

 

 

 

6,808

 

Right-of-use assets, net

 

 

80,149

 

 

 

58,586

 

Restricted cash, non-current portion

 

 

20,156

 

 

 

12,094

 

Deferred income tax assets, net

 

 

56,523

 

 

 

26,411

 

Other assets

 

 

89,948

 

 

 

89,735

 

Total assets

 

$

4,158,508

 

 

$

3,713,776

 

 

LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY

Current liabilities:

 

 

 

 

Current portions of long-term debt and financing lease liabilities, net

 

$

149,363

 

 

$

322,247

 

Accounts payable

 

 

529,338

 

 

 

402,752

 

Accrued expenses and other current liabilities

 

 

107,293

 

 

 

108,831

 

Current portions of operating lease liabilities

 

 

10,536

 

 

 

13,569

 

Deferred revenue

 

 

91,734

 

 

 

52,903

 

Income taxes payable

 

 

744

 

 

 

1,169

 

Total current liabilities

 

 

889,008

 

 

 

901,471

 

Long-term debt and financing lease liabilities, net of current portion, unamortized discount and debt issuance costs

 

 

1,483,900

 

 

 

1,170,075

 

Federal ESPC liabilities

 

 

555,396

 

 

 

533,054

 

Deferred income tax liabilities, net

 

 

2,223

 

 

 

4,479

 

Deferred grant income

 

 

6,436

 

 

 

6,974

 

Long-term operating lease liabilities, net of current portion

 

 

59,479

 

 

 

42,258

 

Other liabilities

 

 

114,454

 

 

 

82,714

 

Commitments and contingencies

 

 

 

 

Redeemable non-controlling interests, net

 

$

2,463

 

 

$

46,865

 

Stockholders’ equity:

 

 

 

 

Preferred stock, $0.0001 par value, 5,000,000 shares authorized, no shares issued and outstanding at December 31, 2024 and 2023

 

 

—

 

 

 

—

 

Class A common stock, $0.0001 par value, 500,000,000 shares authorized, 36,603,048 shares issued and 34,501,213 shares outstanding at December 31, 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 December 31, 2024 and 2023

 

 

2

 

 

 

2

 

Additional paid-in capital

 

 

378,321

 

 

 

320,892

 

Retained earnings

 

 

652,561

 

 

 

595,911

 

Accumulated other comprehensive loss, net

 

 

(5,874

)

 

 

(3,045

)

Treasury stock, at cost, 2,101,835 shares at December 31, 2024 and 2,101,795 at December 31, 2023

 

 

(11,788

)

 

 

(11,788

)

Stockholders’ equity before non-controlling interest

 

 

1,013,225

 

 

 

901,975

 

Non-controlling interests

 

 

31,924

 

 

 

23,911

 

Total stockholders’ equity

 

 

1,045,149

 

 

 

925,886

 

Total liabilities, redeemable non-controlling interests and stockholders’ equity

 

$

4,158,508

 

 

$

3,713,776

 

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

   

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2024

 

2023

 

2024

 

2023

 

 

(Unaudited)

 

(Unaudited)

 

 

 

 

Revenues

 

$

532,667

 

 

$

441,368

 

 

$

1,769,928

 

 

$

1,374,633

 

Cost of revenues

 

 

465,877

 

 

 

367,192

 

 

 

1,513,837

 

 

 

1,128,204

 

Gross profit

 

 

66,790

 

 

 

74,176

 

 

 

256,091

 

 

 

246,429

 

Selling, general and administrative expenses

 

 

47,841

 

 

 

36,672

 

 

 

173,761

 

 

 

162,138

 

Gain on sale of business, net

 

 

38,007

 

 

 

—

 

 

 

38,007

 

 

 

—

 

Asset impairments

 

 

12,384

 

 

 

3,831

 

 

 

12,384

 

 

 

3,831

 

Earnings from unconsolidated entities

 

 

68

 

 

 

402

 

 

 

792

 

 

 

1,758

 

Operating income

 

 

44,640

 

 

 

34,075

 

 

 

108,745

 

 

 

82,218

 

Interest and other expenses, net

 

 

23,406

 

 

 

16,066

 

 

 

74,805

 

 

 

43,949

 

Income before income taxes

 

 

21,234

 

 

 

18,009

 

 

 

33,940

 

 

 

38,269

 

Income tax benefit

 

 

(16,676

)

 

 

(15,083

)

 

 

(20,000

)

 

 

(25,635

)

Net income

 

 

37,910

 

 

 

33,092

 

 

 

53,940

 

 

 

63,904

 

Net (income) loss attributable to non-controlling interests and redeemable non-controlling interests

 

 

(825

)

 

 

643

 

 

 

2,817

 

 

 

(1,434

)

Net income attributable to common shareholders

 

$

37,085

 

 

$

33,735

 

 

$

56,757

 

 

$

62,470

 

Net income per share attributable to common shareholders:

 

 

 

 

 

 

 

 

Basic

 

$

0.71

 

 

$

0.65

 

 

$

1.08

 

 

$

1.20

 

Diluted

 

$

0.70

 

 

$

0.64

 

 

$

1.07

 

 

$

1.17

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

52,463

 

 

 

52,247

 

 

 

52,380

 

 

 

52,140

 

Diluted

 

 

53,257

 

 

 

53,063

 

 

 

53,140

 

 

 

53,228

 

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

 

 

 

Year Ended December 31,

 

 

2024

 

2023

Cash flows from operating activities:

 

 

 

 

Net income

 

$

53,940

 

 

$

63,904

 

Adjustments to reconcile net income to net cash flows from operating activities:

 

 

 

 

Depreciation of energy assets, net

 

 

82,114

 

 

 

59,390

 

Depreciation of property and equipment

 

 

4,963

 

 

 

4,155

 

Amortization of debt discount and debt issuance costs

 

 

5,151

 

 

 

4,201

 

Amortization of intangible assets

 

 

2,134

 

 

 

2,366

 

Increase in contingent consideration

 

 

149

 

 

 

347

 

Accretion of ARO liabilities

 

 

332

 

 

 

258

 

Impairment of goodwill

 

 

—

 

 

 

2,222

 

Provision for bad debts

 

 

1,340

 

 

 

356

 

Impairment of long-lived assets / loss on disposal

 

 

12,815

 

 

 

1,710

 

Gain on sale of business, net of transaction costs

 

 

(38,007

)

 

 

—

 

Non-cash project revenue related to in-kind leases

 

 

(4,164

)

 

 

(3,164

)

Earnings from unconsolidated entities

 

 

(792

)

 

 

(1,758

)

Net gain from derivatives

 

 

(1,027

)

 

 

(1,108

)

Stock-based compensation expense

 

 

14,130

 

 

 

10,318

 

Deferred income taxes, net

 

 

(24,315

)

 

 

(27,602

)

Unrealized foreign exchange loss (gain)

 

 

2,216

 

 

 

(368

)

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

 

(96,867

)

 

 

52,647

 

Accounts receivable retainage

 

 

(14,342

)

 

 

4,337

 

Federal ESPC receivable

 

 

(158,937

)

 

 

(260,378

)

Inventory, net

 

 

2,081

 

 

 

581

 

Unbilled revenue

 

 

54,953

 

 

 

(13,211

)

Prepaid expenses and other current assets

 

 

22,576

 

 

 

(41,125

)

Project development costs

 

 

(3,255

)

 

 

(5,486

)

Other assets

 

 

(5,287

)

 

 

(6,896

)

Accounts payable, accrued expenses, and other current liabilities

 

 

143,776

 

 

 

53,238

 

Deferred revenue

 

 

50,738

 

 

 

26,202

 

Other liabilities

 

 

7,504

 

 

 

3,559

 

Income taxes receivable, net

 

 

3,679

 

 

 

1,314

 

Cash flows from operating activities

 

 

117,598

 

 

 

(69,991

)

Cash flows from investing activities:

 

 

 

 

Purchases of property and equipment

 

 

(4,291

)

 

 

(5,713

)

Capital investment in energy assets

 

 

(416,992

)

 

 

(538,418

)

Capital investment in major maintenance of energy assets

 

 

(17,063

)

 

 

(7,636

)

Grant award received on energy asset

 

 

400

 

 

 

—

 

Net proceeds from sale of business

 

 

54,249

 

 

 

—

 

Net proceeds from sale of equity investment

 

 

13,091

 

 

 

—

 

Acquisitions, net of cash received

 

 

—

 

 

 

(9,182

)

Contributions to equity and other investments

 

 

(11,757

)

 

 

(5,429

)

Loans to joint venture investments

 

 

—

 

 

 

(565

)

Purchases of subsurface land easements

 

 

(4,274

)

 

 

—

 

Cash flows from investing activities

 

 

(386,637

)

 

 

(566,943

)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

Payments on long-term corporate debt financings

 

 

(127,000

)

 

 

(155,000

)

Proceeds from long-term corporate debt financings

 

 

100,000

 

 

 

—

 

Payments on senior secured revolving credit facility, net

 

 

(4,900

)

 

 

(43,000

)

Proceeds from long-term energy asset debt financings

 

 

643,529

 

 

 

843,498

 

Payments on long-term energy asset debt and financing leases

 

 

(424,421

)

 

 

(148,057

)

Payment on seller's promissory note

 

 

(61,941

)

 

 

—

 

Payments of debt discount and debt issuance costs

 

 

(15,308

)

 

 

(9,315

)

Proceeds from Federal ESPC projects

 

 

164,779

 

 

 

154,338

 

Net proceeds from energy asset receivable financing arrangements

 

 

6,012

 

 

 

14,512

 

Proceeds from exercises of options and ESPP

 

 

2,763

 

 

 

4,455

 

Contributions from non-controlling interest

 

 

35,407

 

 

 

3,738

 

Distributions to non-controlling interest

 

 

(1,368

)

 

 

(21,842

)

Distributions to redeemable non-controlling interests, net

 

 

(422

)

 

 

(658

)

Investment fund call option exercise

 

 

(3,186

)

 

 

—

 

Payment of contingent consideration

 

 

—

 

 

 

(1,866

)

Cash flows from financing activities

 

 

313,944

 

 

 

640,803

 

Effect of exchange rate changes on cash

 

 

(203

)

 

 

(81

)

Net increase in cash, cash equivalents, and restricted cash

 

 

44,702

 

 

 

3,788

 

Cash, cash equivalents, and restricted cash, beginning of year

 

 

153,676

 

 

 

149,888

 

Cash, cash equivalents, and restricted cash, end of year

 

$

198,378

 

 

$

153,676

 

Non-GAAP Financial Measures (Unaudited, in thousands)

 

Three Months Ended December 31, 2024

Adjusted EBITDA:

Projects

Energy Assets

O&M

Other

Consolidated

Net income attributable to common shareholders

$

364

 

$

8,899

 

$

1,651

 

$

26,171

 

$

37,085

 

(Less) plus: Income tax (benefit) provision

 

(1,096

)

 

(26,787

)

 

(8

)

 

11,215

 

 

(16,676

)

Plus: Other expenses, net

 

10,203

 

 

11,896

 

 

508

 

 

799

 

 

23,406

 

Plus: Depreciation and amortization

 

1,032

 

 

24,245

 

 

276

 

 

992

 

 

26,545

 

Plus: Stock-based compensation

 

2,974

 

 

398

 

 

180

 

 

210

 

 

3,762

 

Plus: Energy asset impairment charges

 

—

 

 

12,384

 

 

—

 

 

—

 

 

12,384

 

Plus: Contingent Consideration, restructuring and other charges

 

232

 

 

15

 

 

4

 

 

428

 

 

679

 

Adjusted EBITDA

$

13,709

 

$

31,050

 

$

2,611

 

$

39,815

 

$

87,185

 

Adjusted EBITDA margin

 

3.3

%

 

53.9

%

 

9.8

%

 

131.7

%

 

16.4

%

 

Three Months Ended December 31, 2023

Adjusted EBITDA:

Projects

Energy Assets

O&M

Other

Consolidated

Net income attributable to common shareholders

$

27,149

 

$

1,333

 

$

4,145

 

$

1,108

 

$

33,735

 

Impact from redeemable non-controlling interests

 

—

 

 

(299

)

 

—

 

 

—

 

 

(299

)

Less: Income tax benefit

 

(7,312

)

 

(6,722

)

 

(991

)

 

(58

)

 

(15,083

)

Plus: Other expenses, net

 

4,130

 

 

11,551

 

 

110

 

 

275

 

 

16,066

 

Plus: Depreciation and amortization

 

1,202

 

 

16,304

 

 

295

 

 

733

 

 

18,534

 

Plus: Stock-based compensation

 

(1,113

)

 

(440

)

 

(210

)

 

(237

)

 

(2,000

)

Plus: Energy asset and goodwill impairment charges

 

2,222

 

 

1,609

 

 

—

 

 

—

 

 

3,831

 

Plus: Contingent Consideration, restructuring and other charges

 

76

 

 

21

 

 

2

 

 

56

 

 

155

 

Adjusted EBITDA

$

26,354

 

$

23,357

 

$

3,351

 

$

1,877

 

$

54,939

 

Adjusted EBITDA margin

 

7.6

%

 

53.3

%

 

13.7

%

 

7.1

%

 

12.4

%

 

Year Ended December 31, 2024

Adjusted EBITDA:

Projects

Energy Assets

O&M

Other

Consolidated

Net income attributable to common shareholders

$

1,779

 

$

13,981

 

$

12,252

 

$

28,745

 

$

56,757

 

Impact from redeemable non-controlling interests

 

—

 

 

(3,766

)

 

—

 

 

—

 

 

(3,766

)

Plus (less): Income tax provision (benefit)

 

1,762

 

 

(34,170

)

 

588

 

 

11,820

 

 

(20,000

)

Plus: Other expenses, net

 

25,235

 

 

45,715

 

 

1,511

 

 

2,344

 

 

74,805

 

Plus: Depreciation and amortization

 

3,929

 

 

80,849

 

 

1,232

 

 

3,201

 

 

89,211

 

Plus: Stock-based compensation

 

10,687

 

 

1,703

 

 

850

 

 

890

 

 

14,130

 

Plus: Energy asset impairment charges

 

—

 

 

12,384

 

 

—

 

 

—

 

 

12,384

 

Plus: Contingent Consideration, restructuring and other charges

 

1,162

 

 

116

 

 

19

 

 

523

 

 

1,820

 

Adjusted EBITDA

$

44,554

 

$

116,812

 

$

16,452

 

$

47,523

 

$

225,341

 

Adjusted EBITDA margin

 

3.3

%

 

54.8

%

 

15.5

%

 

42.6

%

 

12.7

%

 

Year Ended December 31, 2023

Adjusted EBITDA:

Projects

Energy Assets

O&M

Other

Consolidated

Net income attributable to common shareholders

$

39,263

 

$

12,992

 

$

7,965

 

$

2,250

 

$

62,470

 

Impact from redeemable non-controlling interests

 

—

 

 

570

 

 

—

 

 

—

 

 

570

 

(Less) plus: Income tax (benefit) provision

 

(15,717

)

 

(10,642

)

 

345

 

 

379

 

 

(25,635

)

Plus: Other expenses, net

 

14,257

 

 

27,701

 

 

669

 

 

1,322

 

 

43,949

 

Plus: Depreciation and amortization

 

4,103

 

 

58,455

 

 

1,218

 

 

2,135

 

 

65,911

 

Plus: Stock-based compensation

 

7,516

 

 

1,343

 

 

694

 

 

765

 

 

10,318

 

Plus: Energy asset and goodwill impairment charges

 

2,222

 

 

1,609

 

 

—

 

 

—

 

 

3,831

 

Plus: Contingent consideration, restructuring and other charges

 

1,223

 

 

69

 

 

17

 

 

267

 

 

1,576

 

Adjusted EBITDA

$

52,867

 

$

92,097

 

$

10,908

 

$

7,118

 

$

162,990

 

Adjusted EBITDA margin

 

5.3

%

 

51.5

%

 

11.8

%

 

7.0

%

 

11.9

%

 

 

Three Months Ended December 31,

Year Ended December 31,

 

 

2024

2023

2024

2023

Non-GAAP net income and EPS:

 

 

 

 

 

Net income attributable to common shareholders

 

$

37,085

 

$

33,735

 

$

56,757

 

$

62,470

 

Adjustment for accretion of tax equity financing fees

 

 

(27

)

 

(27

)

 

(107

)

 

(108

)

Impact from redeemable non-controlling interests

 

 

—

 

 

(299

)

 

(3,766

)

 

570

 

Plus: Goodwill impairment

 

 

—

 

 

2,222

 

 

—

 

 

2,222

 

Plus: Energy asset impairment

 

 

12,384

 

 

1,609

 

 

12,384

 

 

1,609

 

Plus: Contingent consideration, restructuring and other charges

 

 

679

 

 

155

 

 

1,820

 

 

1,576

 

Income tax effect of Non-GAAP adjustments

 

 

(3,396

)

 

(649

)

 

(3,692

)

 

(1,018

)

Non-GAAP net income

 

$

46,725

 

$

36,746

 

$

63,396

 

$

67,321

 

 

 

 

 

 

 

Diluted net income per common share

 

$

0.70

 

$

0.64

 

$

1.07

 

$

1.17

 

Effect of adjustments to net income

 

 

0.18

 

 

0.05

 

 

0.13

 

 

0.09

 

Non-GAAP EPS

 

$

0.88

 

$

0.69

 

$

1.20

 

$

1.26

 

 

 

 

 

 

 

Adjusted cash from operations:

 

 

 

 

 

Cash flows from operating activities

 

$

18,376

 

$

(29,570

)

$

117,598

 

$

(69,991

)

Plus: proceeds from Federal ESPC projects

 

 

35,380

 

 

47,035

 

 

164,779

 

 

154,338

 

Adjusted cash from operations

 

$

53,756

 

$

17,465

 

$

282,377

 

$

84,347

 

Other Financial Measures (In thousands) (Unaudited)

 

 

Three Months Ended December 31,

Year Ended December 31,

 

 

2024

2023

2024

2023

New contracts and awards:

 

 

 

 

 

New contracts

 

$

1,093,914

$

477,280

$

2,527,854

$

1,276,660

New awards (1)

 

$

711,845

$

519,600

$

2,246,669

$

2,193,225

 

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

Non-GAAP Financial Guidance

Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA):

Year Ended December 31, 2025

 

Low

High

Operating income (1)

$113 million

$132 million

Depreciation and amortization

$103 million

$105 million

Stock-based compensation

$14 million

$16 million

Income attributable to non-controlling interest

$(5) million

$(8) million

Adjusted EBITDA

$225 million

$245 million

(1) Although net income is the most directly comparable GAAP measure, this table reconciles adjusted EBITDA to operating income because we are not able to calculate forward-looking net income without unreasonable efforts due to significant uncertainties with respect to the impact of accounting for our redeemable non-controlling interests and taxes.

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 Non-GAAP Financial Measures 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 net income attributable to common shareholders, including impact from redeemable non-controlling interests, before income tax (benefit) provision, other expenses net, depreciation, amortization of intangible assets, accretion of asset retirement obligations, stock-based compensation expense, energy asset and goodwill impairment, contingent consideration, restructuring and other charges, gain or loss on sale of equity investment, and gain or loss upon deconsolidation of a variable interest entity. 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, accretion of asset retirement obligations, stock-based compensation expense, impact from redeemable non-controlling interests, contingent consideration, restructuring and asset impairment charges. 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.

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 energy asset and goodwill impairment, contingent consideration, restructuring and other charges, impact from redeemable non-controlling interest, gain or loss on sale of equity investment, and gain or loss upon deconsolidation of a variable interest entity. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250227433367/en/

Media Relations Leila Dillon, 508.661.2264, news@ameresco.com

Investor Relations Eric Prouty, AdvisIRy Partners, 212.750.5800, eric.prouty@advisiry.com

Lynn Morgen, AdvisIRy Partners, 212.750.5800, lynn.morgen@advisiry.com