Delaware | 001-34811 | 04-3512838 | ||
(State or Other Juris- diction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
111 Speen Street, Suite 410, Framingham, MA | 01701 | |
(Address of Principal Executive Offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1033 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | ||
Emerging growth company o | ||
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 |
AMERESCO, INC. | ||||
Date: May 2, 2017 | By: | /s/ John R. Granara, III | ||
John R. Granara, III | ||||
Vice President and Chief Financial Officer | ||||
Exhibit No. | Description | |
99.1 | Press Release issued by the Company on May 2, 2017 | |
99.2 | Prepared Remarks dated as of May 2, 2017 |
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 |
• | Revenues of $134.6 million |
• | Net loss of $0.6 million or $0.01 per diluted share |
• | Adjusted EBITDA of $6.0 million |
• | Non-GAAP loss per share of $0.04 |
• | Total project backlog of $1.6 billion, a Company record |
• | Fully contracted backlog of $505.0 million, up 40% year over year |
• | Cash flows used in operating activities were $31.8 million, compared to $15.1 million in the prior year, and adjusted cash from operations, a non-GAAP financial measure, was an inflow of $3.4 million, compared to an inflow of $1.3 million. |
• | Total project backlog was $1,643.2 million as of March 31, 2017 and consisted of: |
◦ | $505.0 million of fully-contracted backlog of signed customer contracts for installation or construction of projects, which we expect to convert into revenue over the next 12-24 months, on average; and |
◦ | $1,138.2 million of awarded projects, representing projects in development for which we do not have signed contracts. |
• | Assets in development were $206.6 million or 95 MWe. |
March 31, | December 31, | ||||||
2017 | 2016 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 24,453 | $ | 20,607 | |||
Restricted cash | 14,758 | 12,299 | |||||
Accounts receivable, net | 55,098 | 85,354 | |||||
Accounts receivable retainage, net | 18,802 | 17,465 | |||||
Costs and estimated earnings in excess of billings | 50,055 | 56,914 | |||||
Inventory, net | 10,951 | 12,104 | |||||
Prepaid expenses and other current assets | 14,450 | 11,732 | |||||
Income tax receivable | 521 | 406 | |||||
Project development costs | 10,195 | 9,180 | |||||
Total current assets | 199,283 | 226,061 | |||||
Federal ESPC receivable | 188,162 | 158,209 | |||||
Property and equipment, net | 4,452 | 5,018 | |||||
Project assets, net | 339,930 | 319,758 | |||||
Goodwill | 55,439 | 57,976 | |||||
Intangible assets, net | 3,373 | 3,931 | |||||
Other assets | 24,611 | 26,328 | |||||
Total assets | $ | 815,250 | $ | 797,281 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Current portions of long-term debt and capital lease liabilities | $ | 20,319 | $ | 19,292 | |||
Accounts payable | 89,577 | 126,583 | |||||
Accrued expenses and other current liabilities | 20,425 | 22,763 | |||||
Billings in excess of cost and estimated earnings | 18,145 | 21,189 | |||||
Income taxes payable | 699 | 775 | |||||
Total current liabilities | 149,165 | 190,602 | |||||
Long-term debt and capital lease liabilities, less current portions and net of deferred financing fees | 173,322 | 140,593 | |||||
Federal ESPC liabilities | 163,704 | 133,003 | |||||
Deferred income taxes, net | 4,236 | 9,037 | |||||
Deferred grant income | 7,602 | 7,739 | |||||
Other liabilities | 15,129 | 15,154 | |||||
Redeemable non-controlling interest | 5,685 | 6,847 | |||||
Stockholders' equity: | |||||||
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, no shares issued and outstanding at March 31, 2017 and December 31, 2016 | — | — | |||||
Class A common stock, $0.0001 par value, 500,000,000 shares authorized, 29,064,459 shares issued and 27,378,227 shares outstanding at March 31, 2017, 29,005,284 shares issued and 27,706,866 shares outstanding at December 31, 2016 | 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, 2017 and December 31, 2016 | 2 | 2 | |||||
Additional paid-in capital | 113,509 | 112,926 | |||||
Retained earnings | 197,709 | 194,353 | |||||
Accumulated other comprehensive loss, net | (6,380 | ) | (6,591 | ) | |||
Less - treasury stock, at cost, 1,686,232 shares at March 31, 2017 and 1,298,418 shares at December 31, 2016 | (8,436 | ) | (6,387 | ) | |||
Total equity | 296,407 | 294,306 | |||||
Total liabilities, redeemable non-controlling interest and equity | $ | 815,250 | $ | 797,281 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
(Unaudited) | (Unaudited) | ||||||
Revenues | $ | 134,610 | $ | 133,776 | |||
Cost of revenues | 108,686 | 106,100 | |||||
Gross profit | 25,924 | 27,676 | |||||
Selling, general and administrative expenses | 26,487 | 25,888 | |||||
Operating (loss) income | (563 | ) | 1,788 | ||||
Other expenses, net | 1,826 | 843 | |||||
(Loss) income before (benefit) provision for income taxes | (2,389 | ) | 945 | ||||
Income tax (benefit) provision | (645 | ) | 241 | ||||
Net (loss) income | (1,744 | ) | 704 | ||||
Net loss attributable to redeemable non-controlling interest | 1,100 | 350 | |||||
Net (loss) income attributable to Ameresco, Inc. | $ | (644 | ) | $ | 1,054 | ||
Net (loss) income per share attributable to common shareholders: | |||||||
Basic | $ | (0.01 | ) | $ | 0.02 | ||
Diluted | $ | (0.01 | ) | $ | 0.02 | ||
Weighted average common shares outstanding: | |||||||
Basic | 45,513,872 | 46,742,488 | |||||
Diluted | 45,513,872 | 46,860,344 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
(Unaudited) | (Unaudited) | ||||||
Cash flows from operating activities: | |||||||
Net (loss) income | $ | (1,744 | ) | $ | 704 | ||
Adjustments to reconcile net (loss) income to cash flows from operating activities: | |||||||
Depreciation of project assets | 5,109 | 4,543 | |||||
Depreciation of property and equipment | 693 | 772 | |||||
Amortization of deferred financing fees | 397 | 290 | |||||
Amortization of intangible assets | 380 | 604 | |||||
Provision for bad debts | — | 1,154 | |||||
Gain on sale of assets | (104 | ) | — | ||||
Unrealized gain on ineffectiveness of interest rate swaps | (123 | ) | (70 | ) | |||
Stock-based compensation expense | 343 | 367 | |||||
Deferred income taxes | (859 | ) | (1,160 | ) | |||
Unrealized foreign exchange gain | (185 | ) | (806 | ) | |||
Changes in operating assets and liabilities: | |||||||
Restricted cash | 391 | (1,455 | ) | ||||
Accounts receivable | 30,478 | 5,096 | |||||
Accounts receivable retainage | (1,333 | ) | (1,710 | ) | |||
Federal ESPC receivable | (34,418 | ) | (22,879 | ) | |||
Inventory, net | 1,154 | (325 | ) | ||||
Costs and estimated earnings in excess of billings | 7,193 | 33,816 | |||||
Prepaid expenses and other current assets | (2,686 | ) | (2,946 | ) | |||
Project development costs | (1,155 | ) | (2,093 | ) | |||
Other assets | (188 | ) | 55 | ||||
Accounts payable, accrued expenses and other current liabilities | (31,939 | ) | (25,260 | ) | |||
Billings in excess of cost and estimated earnings | (3,053 | ) | (3,042 | ) | |||
Other liabilities | 65 | (1,277 | ) | ||||
Income taxes payable | (201 | ) | 553 | ||||
Cash flows from operating activities | (31,785 | ) | (15,069 | ) | |||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (387 | ) | (497 | ) | |||
Purchases of project assets | (29,121 | ) | (8,598 | ) | |||
Proceeds from sale of assets of a business | 2,777 | — | |||||
Acquisitions, net of cash received | (2,409 | ) | — | ||||
Cash flows from investing activities | (29,140 | ) | (9,095 | ) | |||
Cash flows from financing activities: | |||||||
Payments of financing fees | (338 | ) | (397 | ) | |||
Proceeds from exercises of options | 240 | 326 | |||||
Repurchase of common stock | (2,049 | ) | — | ||||
Proceeds (repayments) from senior secured credit facility, net | 18,000 | (11,300 | ) | ||||
Proceeds from long-term debt financing | 12,878 | 3,049 | |||||
Proceeds from Federal ESPC projects | 35,167 | 16,385 | |||||
Proceeds from sale-leaseback financing | 8,783 | 3,541 | |||||
(Distributions to) proceeds from investment by redeemable non-controlling interest, net | (62 | ) | 6,582 | ||||
Restricted cash | 223 | 3,892 | |||||
Payments on long-term debt | (8,010 | ) | (2,584 | ) | |||
Cash flows from financing activities | 64,832 | 19,494 | |||||
Effect of exchange rate changes on cash | (61 | ) | 127 | ||||
Net increase (decrease) in cash and cash equivalents | 3,846 | (4,543 | ) | ||||
Cash and cash equivalents, beginning of period | 20,607 | 21,645 | |||||
Cash and cash equivalents, end of period | $ | 24,453 | $ | 17,102 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
(Unaudited) | (Unaudited) | ||||||
Adjusted EBITDA: | |||||||
Net (loss) income attributable to Ameresco, Inc. | $ | (644 | ) | $ | 1,054 | ||
Impact from redeemable non-controlling interest | (1,100 | ) | (350 | ) | |||
Plus: Income tax (benefit) provision | (645 | ) | 241 | ||||
Plus: Other expenses, net | 1,826 | 843 | |||||
Plus: Depreciation and amortization of intangible assets | 6,182 | 5,919 | |||||
Plus: Stock-based compensation | 343 | 367 | |||||
Plus: Restructuring and other charges | — | 1,369 | |||||
Adjusted EBITDA | $ | 5,962 | $ | 9,443 | |||
Adjusted EBITDA margin | 4.4 | % | 7.1 | % | |||
Non-GAAP net (loss) income and EPS: | |||||||
Net (loss) income attributable to Ameresco, Inc. | $ | (644 | ) | $ | 1,054 | ||
Impact from redeemable non-controlling interest | (1,100 | ) | (350 | ) | |||
Plus: Restructuring and other charges | — | 1,369 | |||||
Plus: Income Tax effect of non-GAAP adjustments | — | (280 | ) | ||||
Non-GAAP net (loss) income | $ | (1,744 | ) | $ | 1,793 | ||
Diluted net (loss) income per common share | $ | (0.01 | ) | $ | 0.02 | ||
Effect of adjustments to net (loss) income | (0.03 | ) | 0.02 | ||||
Non-GAAP EPS | $ | (0.04 | ) | $ | 0.04 | ||
Adjusted cash from operations: | |||||||
Cash flows from operating activities | $ | (31,785 | ) | $ | (15,069 | ) | |
Plus: proceeds from Federal ESPC projects | 35,167 | 16,385 | |||||
Adjusted cash from operations | $ | 3,382 | $ | 1,316 | |||
March 31, | |||||||
2017 | 2016 | ||||||
(Unaudited) | (Unaudited) | ||||||
Construction backlog: | |||||||
Awarded(1) | $ | 1,138,200 | $ | 1,033,700 | |||
Fully-contracted | 505,000 | 360,500 | |||||
Total construction backlog | $ | 1,643,200 | $ | 1,394,200 | |||
Assets in development | $ | 206,600 | $ | 174,000 |
Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA): | ||||||
(in thousands) | ||||||
Year Ended December 31, 2017 | ||||||
Low | High | |||||
Operating income | $ | 33,000 | $ | 37,000 | ||
Depreciation and amortization of intangible assets | 26,000 | 26,000 | ||||
Stock-based compensation | 1,000 | 2,000 | ||||
Restructuring and other charges | — | — | ||||
Adjusted EBITDA | $ | 60,000 | $ | 65,000 |
Performance by Segment (in thousands): | |||||||
Three Months Ended | |||||||
Revenues | Adjusted EBITDA(1) | ||||||
March 31, 2017 | |||||||
U.S. Regions | $ | 41,606 | $ | (2,507 | ) | ||
U.S. Federal | 47,924 | 6,391 | |||||
Canada | 9,501 | 155 | |||||
Small-Scale Infrastructure | 18,528 | 6,890 | |||||
All Other | 17,051 | 1,393 | |||||
Unallocated corporate activity | — | (6,360 | ) | ||||
Total Consolidated | $ | 134,610 | $ | 5,962 | |||
March 31, 2016 | |||||||
U.S. Regions | $ | 41,621 | $ | 1,350 | |||
U.S. Federal | 38,669 | 7,019 | |||||
Canada | 14,807 | 393 | |||||
Small-Scale Infrastructure | 20,693 | 7,427 | |||||
All Other | 17,986 | (11 | ) | ||||
Unallocated corporate activity | — | (6,735 | ) | ||||
Total Consolidated | $ | 133,776 | $ | 9,443 |
Line of Business Revenues By Segment for the three months ended March 31 (in thousands): | |||||||||||||||||||||||
U.S. Regions | U.S. Federal | Canada | Small-Scale Infrastructure | All Other | Total Consolidated | ||||||||||||||||||
2017 | |||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Project(1) | $ | 36,414 | $ | 37,958 | $ | 7,716 | $ | 2,471 | $ | 886 | $ | 85,445 | |||||||||||
Operating Assets(2) | 32 | 434 | 384 | 14,281 | 283 | 15,414 | |||||||||||||||||
O&M(3) | 4,032 | 9,161 | — | 1,542 | — | 14,735 | |||||||||||||||||
Integrated-PV(4) | — | — | — | — | 8,156 | 8,156 | |||||||||||||||||
Other Services | 1,128 | 371 | 1,401 | 234 | 7,726 | 10,860 | |||||||||||||||||
Total Revenues | $ | 41,606 | $ | 47,924 | $ | 9,501 | $ | 18,528 | $ | 17,051 | $ | 134,610 | |||||||||||
2016 | |||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Project(1) | $ | 37,161 | $ | 26,801 | $ | 12,818 | $ | 6,027 | $ | 2,295 | $ | 85,102 | |||||||||||
Operating Assets(2) | — | 612 | 293 | 13,432 | 306 | 14,643 | |||||||||||||||||
O&M(3) | 4,361 | 11,256 | 156 | 928 | — | 16,701 | |||||||||||||||||
Integrated-PV(4) | — | — | — | — | 7,359 | 7,359 | |||||||||||||||||
Other Services | 99 | — | 1,540 | 306 | 8,026 | 9,971 | |||||||||||||||||
Total Revenues | $ | 41,621 | $ | 38,669 | $ | 14,807 | $ | 20,693 | $ | 17,986 | $ | 133,776 |
Operating Asset Metrics (in thousands, except megawatt equivalents ("MWe")) | |||||||
Three Months Ended and As Of March 31, | |||||||
2017 | 2016 | ||||||
Operating Assets: | |||||||
Assets in Development | 206,600 | 174,000 | |||||
Assets in Development (MWe) | 94.7 | 75.2 | |||||
Total Assets in Operation (MWe) | 171.8 | 159.9 | |||||
Revenues | $ | 15,414 | $ | 14,643 | |||
Adjusted EBITDA | $ | 7,567 | $ | 7,196 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
(Unaudited) | (Unaudited) | ||||||
Adjusted EBITDA: | |||||||
Net (loss) income attributable to Ameresco, Inc. | $ | (644 | ) | $ | 1,054 | ||
Impact of redeemable non-controlling interest | (1,100 | ) | (350 | ) | |||
Plus: Income tax (benefit) provision | (645 | ) | 241 | ||||
Plus: Other expenses, net | 1,826 | 843 | |||||
Plus: Depreciation and amortization of intangible assets | 6,182 | 5,919 | |||||
Plus: Stock-based compensation | 343 | 367 | |||||
Plus: Restructuring and other charges | — | 1,369 | |||||
Adjusted EBITDA | $ | 5,962 | $ | 9,443 | |||
Adjusted EBITDA margin | 4.4 | % | 7.1 | % | |||
Non-GAAP net (loss) income and EPS: | |||||||
Net (loss) income attributable to Ameresco, Inc. | $ | (644 | ) | $ | 1,054 | ||
Impact of redeemable non-controlling interest | (1,100 | ) | (350 | ) | |||
Plus: Restructuring and other charges | — | 1,369 | |||||
Plus: Income Tax effect of non-GAAP adjustments | — | (280 | ) | ||||
Non-GAAP net (loss) income | $ | (1,744 | ) | $ | 1,793 | ||
Diluted net (loss) income per common share | $ | (0.01 | ) | $ | 0.02 | ||
Effect of adjustments to net (loss) income | (0.03 | ) | 0.02 | ||||
Non-GAAP EPS | $ | (0.04 | ) | $ | 0.04 | ||
Adjusted cash from operations: | |||||||
Cash flows from operating activities | $ | (31,785 | ) | $ | (15,069 | ) | |
Plus: proceeds from Federal ESPC projects | 35,167 | 16,385 | |||||
Adjusted cash from operations | $ | 3,382 | $ | 1,316 |
Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA): | ||||||
(in thousands) | ||||||
Year Ended December 31, 2017 | ||||||
Low | High | |||||
Operating income | $ | 33,000 | $ | 37,000 | ||
Depreciation and amortization of intangible assets | 26,000 | 26,000 | ||||
Stock-based compensation | 1,000 | 2,000 | ||||
Restructuring and other charges | — | — | ||||
Adjusted EBITDA | $ | 60,000 | $ | 65,000 |
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