Ameresco Reports Second Quarter 2014 Financial Results
Ameresco, Inc. (NYSE:AMRC), a leading energy efficiency and renewable energy company, announced financial results for the fiscal quarter ended June 30, 2014. The Company has also furnished prepared remarks in conjunction with this press release in a Current Report on Form 8-K. The prepared remarks contain supplemental information, including non-GAAP financial metrics, and have been posted to the 'Investor Relations' section of the Company's website at www.ameresco.com.
'We remain encouraged by the positive trends that continued into the second quarter,' stated George P. Sakellaris, President and Chief Executive Officer of Ameresco. 'Revenues and net income for the quarter exceeded our expectations, while contracted backlog increased 23% year-over-year. We continue to be cautiously optimistic regarding conversion of awarded projects and remain on track to achieve our 2014 guidance.'
Revenues for the second quarter of 2014 were $142.6 million, compared to $126.3 million in 2013, or an increase of 13%. Second quarter 2014 operating income was $3.8 million, compared to an operating loss of $1.9 million in 2013. Second quarter 2014 adjusted EBITDA, a non-GAAP financial measure, was $10.3 million, compared to $3.3 million in 2013. Second quarter 2014 net income was $2.7 million, compared to a net loss of $1.8 million in 2013. Second quarter 2014 net income per diluted share was $0.06, compared to a net loss per share of $0.04 in 2013.
For the year-to-date ended June 30, 2014, revenues were $243.3 million, compared to $236.4 million in 2013, or an increase of 3%. The year-to-date 2014 operating loss was $3.0 million, compared to an operating loss of $4.0 million in 2013. Year-to-date 2014 adjusted EBITDA was $9.4 million, compared to $7.6 million in 2013. The year-to-date 2014 net loss was $5.6 million, compared to a net loss of $3.7 million in 2013. Year-to-date 2014 net loss per basic and diluted share was $0.12, compared to a net loss per share of $0.08 in 2013.
Additional Second Quarter 2014 Operating Highlights:
- Project revenues were $90.3 million for the second quarter of 2014, an increase of 13% year-over-year.
- Revenues from other service offerings was $52.3 million for the second quarter of 2014, an increase of 13% year-over-year.
- Total construction backlog was $1.39 billion as of June 30, 2014 and consisted of: ' $399.4 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
- $995.0 million of awarded projects representing projects in development for which we do not have signed contracts.
FY 2014 Guidance
Ameresco is reaffirming our revenue guidance for the fiscal year ending December 31, 2014. We continue to expect to earn revenues in the range of $560 million to $600 million in 2014 and net income in the range of $8 million to $14 million. Our guidance assumptions for the second half of 2014 are as follows: project revenues from contracted backlog of approximately $195 million; project revenues from awarded projects and proposals in the range of $30 million to $55 million; the remainder of revenues from all other service offerings; gross margin in the range of 18-20%; and an effective income tax rate in the range of 1-3%.
Use of Non-GAAP Financial Measures
This press release and the accompanying tables include references to adjusted EBITDA and adjusted free cash flow, 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 Other Non-GAAP Disclosures in the accompanying tables.
Prior Period Financial Results
Certain prior period cash flow information included in the accompanying tables has been revised from amounts previously reported to reflect a change in the manner that we present the amounts to be paid by various U.S. federal government agencies for work performed and earned by us under specific energy savings performance contracts on the consolidated statements of cash flows. We previously classified the advances from the investors in these projects as operating cash flows; however, we concluded during the fourth quarter of 2013 that these advances would be better classified as financing cash flows. The use of the cash received under these arrangements to pay project costs continues to be classified as operating cash flows. For more information, see the prepared remarks posted to the 'Investor Relations' section of the Company's website and furnished with the Company's Current Report on Form 8-K dated July 31, 2014.
About Ameresco, Inc.
Founded in 2000, Ameresco, Inc. (NYSE:AMRC) is a leading independent provider of comprehensive services, energy efficiency, infrastructure upgrades, asset sustainability and renewable energy solutions for facilities throughout North America. Ameresco's 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, MA, Ameresco provides local expertise through its 69 offices in 34 states, five Canadian provinces and the United Kingdom. Ameresco has more than 900 employees. 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 and backlog, as well as estimated future revenues and net income, 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 the timing of, and ability to, enter into contracts for awarded projects on the terms proposed; the timing of work we do on projects where we recognize revenue on a percentage of completion basis, including the ability to perform under recently signed contracts without unusual delay; demand for our energy efficiency and renewable energy solutions; our ability to arrange financing for our projects; 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 effects of our recent acquisitions; 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; availability and costs of labor and equipment; the addition of new customers or the loss of existing customers; and other factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2013, filed with the U.S. Securities and Exchange Commission on March 17, 2014. In addition, 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.
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Suzanne Messere, Investor Relations
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