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8-K - FORM 8-K - Ameresco, Inc. | b83238e8vk.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact:
|
Media Relations: | CarolAnn Hibbard, (508) 661-2264, news@ameresco.com | ||
Investor Relations: | Andrew Spence, (508) 661-2212, ir@ameresco.com |
Ameresco Reports Third Quarter 2010 Financial Results
Third Quarter 2010 Financial Highlights:
| Third quarter revenues increased 45% year-over-year to $191.9 million | ||
| Third quarter net income increased 47% year-over-year to $12.0 million | ||
| Net income per diluted share was $0.28 in the third quarter of 2010 compared to $0.23 per diluted share in the third quarter of 2009 |
Nine Month Year-to-Date 2010 Performance:
| Nine month revenues increased 49% year-over-year to $438.9 million | ||
| Nine month net income increased 103% year-over-year to $21.0 million | ||
| Net income per diluted share was $0.53 for the first nine months of 2010, a 79% increase over the $0.30 per diluted share earned during the same period in 2009 |
FRAMINGHAM, MA October 29, 2010 Ameresco, Inc. (NYSE:AMRC) a leading energy efficiency and
renewable energy company, today announced financial results for the quarter ended September 30,
2010. Ameresco had revenues of $191.9 million in the third quarter of 2010, compared to $132.3
million in the third quarter of 2009, an increase of 45%. Net income for the third quarter of 2010
was $12.0 million, compared to $8.2 million in the third quarter of 2009, an increase of 47%. Net
income per diluted share was $0.28 in the third quarter of 2010, compared to $0.23 per diluted
share in the same quarter of 2009. The third quarter 2009 results included non-recurring gains
from derivative activity totaling $2.8 million. Excluding the effect of these items, the increase
in net income from 2009 would have been 95%.
Ameresco produced strong third quarter financial performance by effectively executing on our
existing projects and continuing to successfully implement our 2010 business plan, said George
Sakellaris, president and chief executive officer of Ameresco. We made significant progress on
many of our marquee projects. We continue to win business across North America, and this quarter
won a bid with the U.S. Navy to improve energy efficiency for two of their facilities in Italy. We
are pleased that demand for our solutions remains strong and that organizations are realizing the
need for implementing energy efficiency and renewable energy solutions that produce financial as
well as social returns.
Amerescos third quarter results were driven by strong market demand for energy solutions,
increased revenues, improved gross profit margins, particularly from renewable energy projects,
and increased operating leverage.
For the nine months ended September 30, 2010, Ameresco reported total revenues of $438.9 million,
compared to $295.1 million for the same period in 2009, an increase of 49%. Net income for the
first nine months of 2010 was $21.0 million, or $0.53 per diluted share, compared with $10.3
million, or $0.30 per diluted share for the first nine months of 2009. Net income for the period
increased 103% excluding the effects of the derivative activity noted
above, would have been 153%.
Operating Highlights
| EBITDA for the third quarter of 2010 increased by 67% over the third quarter of 2009 to $24.4 million | ||
| EBITDA for the first nine months of 2010 increased 112% over the first nine months of 2009 to $44.1 million | ||
| Operating cash flows were $9.1 million for the third quarter of 2010 | ||
| Total backlog of contracted, and awarded but not yet contracted, projects remains strong at $1.12 billion |
Some Key Highlights for Q3 2010
| Acquisition of Quantum Energy, Renton WA. On August 31, Ameresco acquired Quantum Engineering and Development, an ESCO that provides energy and water auditing, engineering, construction and commissioning services to public, commercial and industrial clients in the western U.S. Since 1999, Quantum has delivered over $63 million in projects to public and private clients. | ||
| Over 97 contracts were executed for the quarter with good representation across all our regions. Some marquee initiatives include: |
| U.S. Navy at their facilities in Naples and Sigonella, Italy. Ameresco was awarded a $13.5 million ESPC for two US Navy locations. The ESPC is a mix of measures that includes energy efficient lighting, chillers, and controls. | ||
| The Department of Veterans Affairs, Veterans Administration Medical Center (VAMC). Ameresco was awarded a $6.6 million contract to design and build a solar photovoltaic system for the VAMC in Salt Lake City, Utah. The roof top systems, ranging from 35 to 100 kW, will be installed on seven campus facilities, and the ground-mounted system is expected to generate approximately 550 kW once completed. |
| The U.S. Bureau of Land Management (BLM). BLM enlisted the AMERESCO AXIS® invoice and data management product to establish a Bureau-wide energy management information system to help reduce its energy costs, consumption, and carbon footprint in facilities throughout the western U.S. This is the first Federal contract for AXIS, affording an opportunity to demonstrate its capabilities and value for this market that has some of the largest users of electricity in the country. | ||
| The Massachusetts State Department of Energy Resources (DOER). The MA DOER and Ameresco worked to sign agreements to design, construct, finance, own, and operate solar power systems on five state facilitiestwo Massport Logan Airport terminals, Bridgewater State College, Worcester State College and the Canton Housing Authority. Under 20-year Power Purchase Agreements (PPAs), the state facilities will receive solar-generated electricity at a discount to their current electricity bills, thereby cutting their energy budgets. These agreements are under the first of multiple phases of PPA projects, positioning Ameresco within communities for when they embrace and move towards PPAs. |
Outlook
Ameresco expects that for the year ending December 31, 2010, it will earn total revenues in the
range of $585 million to $595 million, EBITDA will be in the range of $55 million to $57 million,
and net income will be in the range of $27 million to $28 million. The company also expects that
net income per diluted share for 2010 will be in the range of $0.65 to $0.68.
Webcast Reminder
Ameresco will hold its earnings conference call today, October 29, at 10:30 a.m. Eastern Time with
President and CEO, George Sakellaris, and Vice President and Chief Financial Officer, Andrew
Spence, to discuss details regarding the companys third quarter 2010 results, business outlook and
strategy. Participants may access it by dialing domestically (888) 713-4209 or internationally
(617) 213-4863. The passcode is 86670561. Those who wish to listen only to the conference call
webcast may visit the Investor Relations section of the Companys website at www.ameresco.com.
Participants are advised to dial-in at least ten minutes prior to the call to register.
Pre-Registration for the call is available at:
https://cossprereg.btci.com/prereg/key.process?key=PGL4K9YVW
https://cossprereg.btci.com/prereg/key.process?key=PGL4K9YVW
Pre-registrants will be issued a pin number to use when dialing into the live call which will
provide quick access to the conference by bypassing the operator upon connection.
The webcast will be available on the Companys website shortly after the call.
Use of Non-GAAP Financial Measures
This press release and the accompanying tables reflect EBITDA, which is a non-GAAP financial
measure. For a description of this non-GAAP financial measure, including the reasons management
uses this measure and a reconciliation of EBITDA to operating income, the most directly comparable
financial measure prepared in accordance with GAAP; please see the section of the accompanying
tables titled Non-GAAP Financial Measures in Exhibit A.
About Ameresco, Inc.
Ameresco, Inc. was incorporated in Delaware in April 2000 and is a leading independent provider of
comprehensive energy efficiency and renewable energy solutions for facilities throughout North
America. Amerescos solutions include upgrades to a facilitys energy infrastructure, and the
development, construction, and operation of renewable energy plants. With corporate headquarters
located in Framingham, MA, Ameresco has 55 offices in 29 states and four Canadian provinces. 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 backlog, estimated future revenues and projects, as well as other
statements containing the words 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; our ability to arrange financing our projects;
changes in federal, state and local government policies and programs related to energy efficiency
and renewable energy; the timing of work we do on projects where we recognize revenue on a
percentage of completion basis; seasonality in construction and in demand for our products and
services; a customers decision to delay our work on, or other risks involved with, a particular
project; availability and costs of labor and equipment the addition of new customers or the loss of
existing customers; and other factors discussed in Amerescos Quarterly Report on Form 10-Q, filed
with the U.S. Securities and Exchange Commission on September 7, 2010. In addition, the
forward-looking statements included in this press release represent Amerescos views as of the date
of this press release. Ameresco anticipates that subsequent events and developments will cause its
views to change. However, while Ameresco may elect to update these forward-looking statements at
some point in the future, it specifically disclaims any obligation to do so. These forward-looking
statements should not be relied upon as representing Amerescos views as of any date subsequent to
the date of this press release.
AMERESCO, INC.
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2009 AND SEPTEMBER 30, 2010
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2009 AND SEPTEMBER 30, 2010
2009 | 2010 | |||||||
(Unaudited) | ||||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 47,927,540 | $ | 29,266,001 | ||||
Restricted cash |
9,249,885 | 10,617,362 | ||||||
Accounts receivable, net |
61,279,515 | 91,905,734 | ||||||
Accounts receivable retainage |
9,242,288 | 17,337,445 | ||||||
Costs and estimated earnings in excess of billings |
14,009,076 | 32,724,457 | ||||||
Inventory, net |
4,237,909 | 5,309,177 | ||||||
Prepaid expenses and other current assets |
8,077,761 | 13,649,918 | ||||||
Deferred income taxes |
9,279,473 | 10,819,900 | ||||||
Project development costs |
8,468,974 | 9,266,798 | ||||||
Total current assets |
171,772,421 | 220,896,792 | ||||||
Federal ESPC receivable financing |
51,397,347 | 161,920,078 | ||||||
Property and equipment, net |
4,373,256 | 4,661,471 | ||||||
Project assets, net |
117,637,990 | 134,995,537 | ||||||
Deferred financing fees, net |
3,582,560 | 3,431,442 | ||||||
Goodwill |
16,132,429 | 18,460,564 | ||||||
Other assets |
10,648,605 | 4,144,324 | ||||||
203,772,187 | 327,613,416 | |||||||
$ | 375,544,608 | $ | 548,510,208 | |||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Current portion of long-term debt |
$ | 8,093,016 | $ | 4,932,771 | ||||
Accounts payable |
75,578,378 | 94,671,536 | ||||||
Accrued liabilities |
18,362,674 | 13,361,057 | ||||||
Billings in excess of cost and estimated earnings |
28,166,364 | 30,870,614 | ||||||
Income taxes payable |
2,129,529 | 2,808,209 | ||||||
Total current liabilities |
132,329,961 | 146,644,187 | ||||||
Long-term debt: |
||||||||
Long-term debt, less current portion |
102,807,203 | 180,663,431 | ||||||
Subordinated debt |
2,998,750 | | ||||||
Deferred income taxes |
11,901,645 | 11,901,645 | ||||||
Deferred grant income |
4,158,508 | 3,995,058 | ||||||
Other liabilities |
18,578,754 | 23,042,218 | ||||||
140,444,860 | 219,602,352 | |||||||
Stockholders equity: |
||||||||
Series A convertible preferred stock, $0.0001 par value, 3,500,000 shares authorized, |
||||||||
3,210,000 shares issued and outstanding at 12/31/2009, no shares issued and
outstanding at 9/30/2010 |
321 | | ||||||
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, no shares issued and |
||||||||
outstanding at 12/31/2009 and 9/30/2010 |
| | ||||||
Common stock, $0.0001 par value, 60,000,000 shares authorized, 17,998,168 shares |
||||||||
issued and 13,282,284 outstanding at 12/31/2009, no shares issued and outstanding
at 9/30/2010 |
1,800 | | ||||||
Class A common stock, $0.0001 par value, 500,000,000 shares authorized, no shares |
||||||||
issued and outstanding at 12/31/2009, 27,919,449 shares issued and 23,086,165
shares outstanding at 9/30/2010 |
| 2,792 | ||||||
Class B common stock, $0.0001 par value, 144,000,000 shares authorized, no shares |
||||||||
issued and outstanding at 12/31/2009, 18,000,000 shares issued and outstanding
at 9/30/2010 |
| 1,800 | ||||||
Additional paid-in capital |
10,466,312 | 71,308,330 | ||||||
Retained earnings |
97,882,985 | 118,909,218 | ||||||
Accumulated other comprehensive income |
2,831,970 | 1,224,100 | ||||||
Less treasury stock, at cost, 4,715,884 shares and 4,833,284 shares, respectively |
(8,413,601 | ) | (9,182,571 | ) | ||||
Total stockholders equity |
102,769,787 | 182,263,669 | ||||||
$ | 375,544,608 | $ | 548,510,208 | |||||
AMERESCO, INC.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009 AND 2010
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009 AND 2010
Three Months Ended September 30, | ||||||||
2009 | 2010 | |||||||
(Unaudited) | ||||||||
Revenue: |
||||||||
Energy efficiency revenue |
$ | 106,803,997 | $ | 147,863,350 | ||||
Renewable energy revenue |
25,490,418 | 44,038,079 | ||||||
132,294,415 | 191,901,429 | |||||||
Direct expenses: |
||||||||
Energy efficiency expenses |
88,714,827 | 121,906,348 | ||||||
Renewable energy expenses |
19,662,420 | 35,114,345 | ||||||
108,377,247 | 157,020,693 | |||||||
Gross profit |
23,917,168 | 34,880,736 | ||||||
Operating expenses: |
||||||||
Salaries and benefits |
7,364,786 | 8,409,014 | ||||||
Project development costs |
1,267,986 | 2,716,616 | ||||||
General, administrative and other |
3,708,122 | 4,841,508 | ||||||
12,340,894 | 15,967,138 | |||||||
Operating income |
11,576,274 | 18,913,598 | ||||||
Other income (expenses), net |
924,031 | (2,010,030 | ) | |||||
Income before provision for income taxes |
12,500,305 | 16,903,568 | ||||||
Income tax provision |
4,305,830 | 4,862,651 | ||||||
Net income |
8,194,475 | 12,040,917 | ||||||
Other comprehensive income (loss): |
||||||||
Unrealized loss from interest rate hedge, net of tax |
| (746,087 | ) | |||||
Foreign currency translation adjustment |
3,530,723 | 879,842 | ||||||
Comprehensive income (loss) |
$ | 11,725,198 | $ | 12,174,672 | ||||
Net income per share attributable to common shareholders: |
||||||||
Basic |
$ | 0.86 | $ | 0.35 | ||||
Diluted |
$ | 0.23 | $ | 0.28 | ||||
Weighted average common shares outstanding: |
||||||||
Basic |
9,559,545 | 34,434,352 | ||||||
Diluted |
35,625,835 | 43,445,391 | ||||||
OTHER NON-GAAP DISCLOSURES |
||||||||
Gross margins: |
||||||||
Energy efficiency revenue |
16.9 | % | 17.6 | % | ||||
Renewable energy revenue |
22.9 | % | 20.3 | % | ||||
Total |
18.1 | % | 18.2 | % | ||||
Operating expenses as a percent of revenue |
9.3 | % | 8.3 | % | ||||
Earnings before interest, taxes, depreciation and amortization (EBITDA): |
||||||||
Operating income |
$ | 11,576,274 | $ | 18,913,598 | ||||
Depreciation and impairment |
2,376,444 | 4,796,021 | ||||||
Stock-based compensation |
611,414 | 651,352 | ||||||
EBITDA |
$ | 14,564,132 | $ | 24,360,970 | ||||
EBITDA margin |
11.0 | % | 12.7 | % | ||||
Construction backlog: |
||||||||
Awarded |
$ | 733,646,495 | $ | 530,572,308 | ||||
Fully-contracted |
379,997,559 | 592,745,083 | ||||||
Total construction backlog |
$ | 1,113,644,054 | $ | 1,123,317,391 | ||||
Note: Awarded represents estimated future revenues from projects that have been awarded, though the contracts have not yet been signed.
AMERESCO, INC.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2010
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2010
Nine Months Ended September 30, | ||||||||
2009 | 2010 | |||||||
(Unaudited) | ||||||||
Revenue: |
||||||||
Energy efficiency revenue |
$ | 241,290,308 | $ | 323,578,578 | ||||
Renewable energy revenue |
53,848,666 | 115,305,944 | ||||||
295,138,974 | 438,884,522 | |||||||
Direct expenses: |
||||||||
Energy efficiency expenses |
199,585,426 | 267,495,450 | ||||||
Renewable energy expenses |
42,597,466 | 91,955,471 | ||||||
242,182,892 | 359,450,921 | |||||||
Gross profit |
52,956,082 | 79,433,601 | ||||||
Operating expenses: |
||||||||
Salaries and benefits |
18,817,921 | 21,893,756 | ||||||
Project development costs |
6,862,982 | 7,893,558 | ||||||
General, administrative and other |
13,261,611 | 16,156,553 | ||||||
38,942,514 | 45,943,867 | |||||||
Operating income |
14,013,568 | 33,489,734 | ||||||
Other income (expenses), net |
1,512,388 | (4,082,417 | ) | |||||
Income before provision for income taxes |
15,525,956 | 29,407,317 | ||||||
Income tax provision |
5,193,123 | 8,381,084 | ||||||
Net income |
10,332,833 | 21,026,233 | ||||||
Other comprehensive income (loss): |
||||||||
Unrealized loss from interest rate hedge, net of tax |
| (2,297,667 | ) | |||||
Foreign currency translation adjustment |
3,269,613 | 689,797 | ||||||
Comprehensive income |
$ | 13,602,446 | $ | 19,418,363 | ||||
Net income per share attributable to common shareholders: |
||||||||
Basic |
$ | 1.08 | $ | 1.02 | ||||
Diluted |
$ | 0.30 | $ | 0.53 | ||||
Weighted average common shares outstanding: |
||||||||
Basic |
9,576,548 | 20,563,849 | ||||||
Diluted |
34,812,967 | 39,513,507 | ||||||
OTHER NON-GAAP DISCLOSURES |
||||||||
Gross Margins: |
||||||||
Energy efficiency revenue |
17.3 | % | 17.3 | % | ||||
Renewable energy revenue |
20.9 | % | 20.3 | % | ||||
Total |
17.9 | % | 18.1 | % | ||||
Operating expenses as a percent of revenue |
13.2 | % | 10.5 | % | ||||
Earnings before interest, taxes, depreciation and amortization (EBITDA): |
||||||||
Operating income |
$ | 14,013,568 | $ | 33,489,734 | ||||
Depreciation and impairment |
4,962,352 | 8,858,264 | ||||||
Stock-based compensation |
1,844,400 | 1,758,503 | ||||||
EBITDA |
$ | 20,820,320 | $ | 44,106,501 | ||||
EBITDA margin |
7.1 | % | 10.0 | % |
AMERESCO, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009 AND 2010
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009 AND 2010
Three Months Ended September 30, | ||||||||
2009 | 2010 | |||||||
(Unaudited) | ||||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 8,194,525 | $ | 12,040,917 | ||||
Adjustment to reconcile net income to cash provided by investing activities: |
||||||||
Depreciation of project assets |
1,876,182 | 4,206,992 | ||||||
Depreciation of property and equipment |
500,262 | 589,029 | ||||||
Amortization of deferred financing fees |
59,016 | 306,398 | ||||||
Write-down of long-term receivable |
| | ||||||
Unrealized gain on interest rate swaps |
(354,326 | ) | | |||||
Stock-based compensation expense |
611,414 | 651,352 | ||||||
Deferred income taxes |
(314,885 | ) | 792,193 | |||||
Changes in operating assets and liabilities: |
||||||||
(Increase) decrease in: |
||||||||
Restricted cash draws |
13,677,494 | 53,185,373 | ||||||
Accounts receivable |
(12,650,473 | ) | (21,103,490 | ) | ||||
Accounts receivable retainage |
(2,875,973 | ) | (5,204,217 | ) | ||||
Federal ESPC receivable financing |
(18,759,514 | ) | (51,833,048 | ) | ||||
Inventory |
1,371,016 | 23,790 | ||||||
Costs and estimated earnings in excess of billings |
2,411,481 | (8,859,603 | ) | |||||
Prepaid expenses and other current assets |
(845,316 | ) | (1,817,278 | ) | ||||
Project development costs |
(1,256,091 | ) | (872,942 | ) | ||||
Other assets |
88,416 | 4,560,707 | ||||||
Increase (decrease) in: |
||||||||
Accounts payable and accrued expenses |
14,543,943 | 25,940,748 | ||||||
Billings in excess of cost and estimated earnings |
10,110,040 | (1,341,379 | ) | |||||
Other liabilities |
4,044,968 | 337,826 | ||||||
Income taxes payable |
2,668,299 | (2,541,814 | ) | |||||
Net cash provided by operating activities |
23,100,478 | 9,061,554 | ||||||
Cash flows from investing activities: |
||||||||
Purchases of property and equipment |
(508,466 | ) | (877,781 | ) | ||||
Purchases of project assets |
2,341,325 | (12,415,691 | ) | |||||
Acquisitions, net of cash received |
(674,110 | ) | (6,138,941 | ) | ||||
Net cash provided by (used in) investing activities |
1,158,749 | (19,432,413 | ) | |||||
Cash flows from financing activities: |
||||||||
Payments of financing fees |
(9,842 | ) | (402,625 | ) | ||||
Proceeds from options and warrant exercises and issuance of stock |
| 59,649,893 | ||||||
Repurchase of stock |
| | ||||||
Proceeds from (payments on) senior secured credit facility |
(15,062,033 | ) | (31,351,119 | ) | ||||
Proceeds from long-term debt financing |
1,352,559 | | ||||||
Restricted cash |
(3,771,371 | ) | (1,137,175 | ) | ||||
Repayment of subordinated debt |
| (2,998,750 | ) | |||||
Payments on long-term debt |
(1,178,396 | ) | (5,755,902 | ) | ||||
Net cash (used in) provided by financing activities |
(18,669,083 | ) | 18,004,322 | |||||
Effect of exchange rate changes on cash |
1,021,999 | 498,142 | ||||||
Net increase in cash and cash equivalents |
6,612,143 | 8,131,605 | ||||||
Cash and cash equivalents, beginning of period |
8,855,402 | 21,134,396 | ||||||
Cash and cash equivalents, end of period |
$ | 15,467,545 | $ | 29,266,001 | ||||
AMERESCO, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2010
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2010
Nine Months Ended September 30, | ||||||||
2009 | 2010 | |||||||
(Unaudited) | ||||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 10,332,833 | $ | 21,026,233 | ||||
Adjustment to reconcile net income to cash provided by investing activities: |
||||||||
Depreciation of project assets |
3,928,979 | 7,623,850 | ||||||
Depreciation of property and equipment |
1,033,373 | 1,234,415 | ||||||
Amortization of deferred financing fees |
161,662 | 474,403 | ||||||
Provision for bad debts |
327,558 | | ||||||
Write-down of long-term receivable |
| 2,111,000 | ||||||
Unrealized gain (loss) on interest rate swaps |
1,634,619 | (133,591 | ) | |||||
Stock-based compensation expense |
1,844,400 | 1,758,503 | ||||||
Deferred income taxes |
418,256 | | ||||||
Changes in operating assets and liabilities: |
||||||||
(Increase) decrease in: |
||||||||
Restricted cash draws |
21,612,096 | 108,936,357 | ||||||
Accounts receivable |
(21,059,142 | ) | (24,037,153 | ) | ||||
Accounts receivable retainage |
(1,353,728 | ) | (7,491,725 | ) | ||||
Federal ESPC receivable financing |
(27,056,209 | ) | (110,522,731 | ) | ||||
Inventory |
1,679,369 | (1,071,268 | ) | |||||
Costs and estimated earnings in excess of billings |
(9,709,704 | ) | (16,660,465 | ) | ||||
Prepaid expenses and other current assets |
(2,463,756 | ) | (5,518,403 | ) | ||||
Project development costs |
(2,899,742 | ) | (790,904 | ) | ||||
Other assets |
6,207,159 | 6,582,019 | ||||||
Increase (decrease) in: |
||||||||
Accounts payable and accrued expenses |
4,423,091 | 6,749,903 | ||||||
Billings in excess of cost and estimated earnings |
12,101,951 | 2,311,175 | ||||||
Other liabilities |
(5,315,700 | ) | 1,969,263 | |||||
Income taxes payable |
1,060,602 | (946,361 | ) | |||||
Net cash used in operating activities |
(3,092,033 | ) | (6,395,480 | ) | ||||
Cash flows from investing activities: |
||||||||
Purchases of property and equipment |
(1,430,604 | ) | (1,361,876 | ) | ||||
Purchases of project assets |
(14,587,244 | ) | (24,783,062 | ) | ||||
Acquisitions, net of cash received |
(674,110 | ) | (6,138,941 | ) | ||||
Net cash used in investing activities |
(16,691,958 | ) | (32,283,879 | ) | ||||
Cash flows from financing activities: |
||||||||
Payments of financing fees |
(79,905 | ) | (1,300,058 | ) | ||||
Proceeds from options and warrant exercises and issuance of stock |
| 60,062,759 | ||||||
Repurchase of stock |
(874,948 | ) | (768,970 | ) | ||||
Proceeds from (payments on) senior secured credit facility |
(4,449,242 | ) | (19,915,218 | ) | ||||
Proceeds from long-term debt financing |
28,074,858 | 812,398 | ||||||
Restricted cash |
(5,054,245 | ) | (5,956,433 | ) | ||||
Repayment of subordinated debt |
| (2,998,750 | ) | |||||
Payments on long-term debt |
(2,626,925 | ) | (10,548,598 | ) | ||||
Net cash provided by financing activities |
14,989,593 | 19,387,130 | ||||||
Effect of exchange rate changes on cash |
2,112,798 | 630,690 | ||||||
Net decrease in cash and cash equivalents |
(2,681,600 | ) | (18,661,539 | ) | ||||
Cash and cash equivalents, beginning of year |
18,149,145 | 47,927,540 | ||||||
Cash and cash equivalents, end of period |
$ | 15,467,545 | $ | 29,266,001 | ||||
Exhibit A: Non-GAAP Financial Measures
Ameresco defines EBITDA as operating income before depreciation and impairment expense and
share-based compensation expense. EBITDA is a non-GAAP financial measure and should not be
considered as an alternative to operating income or any other measure of financial performance
calculated and presented in accordance with GAAP.
The Company believes EBITDA is useful to investors in evaluating its operating performance for the
following reasons: EBITDA and similar non-GAAP measures are widely used by investors to measure a
companys 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 EBITDA and similar
non-GAAP measures as supplemental measures to evaluate the overall operating performance of
companies; and by comparing our EBITDA in different historical periods, our investors can evaluate
our operating results without the additional variations of depreciation and amortization expense,
and share-based compensation expense.
Amerescos management uses EBITDA: as a measure of operating performance, because it does not
include the impact of items that management does not consider indicative of our core operating
performance; for planning purposes, including the preparation of the annual operating budget;
to allocate resources to enhance the financial performance of the business; to evaluate the
effectiveness of Amerescos business strategies; and in communications with the board of directors
and investors concerning Amerescos financial performance.
The Company understands that, although measures similar to EBITDA are frequently used by investors
and securities analysts in their evaluation of companies, EBITDA has limitations as an analytical
tool, and you should not consider it in isolation or as a substitute for GAAP operating income or
an analysis of Amerescos results of operations as reported under GAAP. Some of these limitations
are: EBITDA does not reflect the Companys cash expenditures or future requirements for capital
expenditures or other contractual commitments; EBITDA does not reflect changes in, or cash
requirements for, Amerescos working capital needs; EBITDA does not reflect stock-based
compensation expense; EBITDA does not reflect cash requirements for income taxes; EBITDA does not
reflect net interest income (expense); although depreciation, amortization and impairment are
non-cash charges, the assets being depreciated, amortized or impaired will often have to be
replaced in the future, and EBITDA does not reflect any cash requirements for these replacements;
and other companies in Amerescos industry may calculate EBITDA differently than we do, limiting
its usefulness as a comparative measure.
To properly and prudently evaluate Amerescos business, we encourage you to review our GAAP
financial statements included above, and not to rely on any single financial measure to evaluate
the business. Please refer to the above reconciliation of EBITDA to operating income, the most
comparable GAAP measure.
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