Ameresco Reports Third Quarter 2024 Financial Results
Total Revenue Growth of 49% Led by 59% Increase in Project Revenue
Total Project Backlog up 22% Y/Y to
Record 209 MWe Energy Assets Placed into Operation YTD Exceeding FY Guidance
Reaffirming 2024 Guidance
Third Quarter 2024 Financial Highlights:
-
Revenues of
$500.9 million -
Net income attributable to common shareholders of
$17.6 million -
GAAP EPS of
$0.33 -
Non-GAAP EPS of
$0.32 -
Adjusted EBITDA of
$62.2 million
CEO
Third Quarter Financial Results
(All financial result comparisons made are against the prior year period unless otherwise noted.)
(in millions) |
Q3 2024 |
Q3 2023 |
||||
|
Revenue |
Net Income (1) |
Adj. EBITDA |
Revenue |
Net Income (1) |
Adj. EBITDA |
Projects |
|
|
|
|
|
|
Energy Assets |
|
|
|
|
|
|
O&M |
|
|
|
|
|
|
Other |
|
|
|
|
|
|
Total (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Net Income represents net income attributable to common shareholders. |
||||||
(2) Numbers in table may not sum due to rounding. |
Total revenue increased 49.4% to
Net income attributable to common shareholders was
Adjusted EBITDA of
Balance Sheet and Cash Flow Metrics
($ in millions) |
|
Total Corporate Debt (1) |
|
Corporate Debt Leverage Ratio (2) |
2.8X |
|
|
Total Energy Asset Debt (3) |
|
Energy Asset Book Value (4) |
|
Energy Debt Advance Rate (5) |
74% |
|
|
Q3 Cash Flows from Operating Activities |
|
Plus: Q3 Proceeds from Federal ESPC Projects |
|
Equals: Q3 Adjusted Cash from Operations |
|
|
|
8-quarter rolling average Cash Flows from Operating Activities |
( |
Plus: 8-quarter rolling average Proceeds from Federal ESPC Projects |
|
Equals: 8-quarter rolling average Adjusted Cash from Operations |
|
|
|
(1) Subordinated Debt, term loans and drawn amounts on the revolving line of credit |
|
(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 the quarter with
($ in millions) |
|
At |
Awarded Project Backlog (1) |
|
|
Contracted Project Backlog |
|
|
Total Project Backlog |
|
|
12-month Contracted Backlog (2) |
|
|
|
|
|
O&M Revenue Backlog |
|
|
12-month O&M Backlog |
|
|
Energy Asset Visibility (3) |
|
|
Operating Energy Assets |
|
715 MWe |
|
|
589 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 |
||
(4) Net MWe capacity includes only our share of any jointly owned assets |
- Ameresco’s Assets in Development ended the quarter at 595 MWe. After subtracting Ameresco’s partners’ minority interests, Ameresco’s owned capacity of Assets in Development at quarter end was 589 MWe.
-
Ameresco brought 42 MWe of Energy Assets into operation, including the 11.7 MWe Keller Canyon RNG plant and 27 MWe battery storage at the remaining 3United Power sites.
Subsequent Events
Today
-
Michael Bakas has been appointed President -Renewable Fuels . Michael will continue to focus on the expansion of our renewable fuels asset class, which includes one of the most robust pipelines of plants in the country. -
Nicole Bulgarino has been appointed President - Federal and Utility Infrastructure. In this role, Nicole will continue to oversee our expanding Federal business while also driving the development of emerging utility infrastructure opportunities. -
Peter Christakis has been appointed President -East USA ,Greece & Project Risk. In this capacity, Peter will manage our East region while also expanding our pipeline of solar projects. Additionally, Peter will lead our centralized procurement and corporate risk initiatives to provide significant corporate support across the organization. -
Louis Maltezos has been appointed President –Central & Western USA ,Canada . Louis will continue unifying these regions and concentrating on our core markets. He and his team will also work on expanding ourSmart Solutions portfolio by promoting new building controls, efficiency initiatives, and advanced water metering offerings across our customer base.
Summary and Outlook
“With our record project backlog, expanding portfolio of operating Energy Assets and growing base of long-term O&M contracts,
FY 2024 Guidance Ranges |
||
Revenue |
|
|
Gross Margin |
16.0% |
16.5% |
Adjusted EBITDA |
|
|
Interest Expense & Other |
|
|
Non-GAAP EPS |
|
|
The Company’s Adjusted EBITDA and Non-GAAP EPS guidance excludes the impact of redeemable non-controlling interest activity, one-time charges, asset 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
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
Founded in 2000,
Safe Harbor Statement
Any statements in this press release about future expectations, plans and prospects for
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share amounts) |
||||||
|
|
|||||
2024 |
2023 |
|||||
(unaudited) |
||||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents |
$ |
113,502 |
$ |
79,271 |
||
Restricted cash |
|
71,868 |
|
62,311 |
||
Accounts receivable, net |
|
230,298 |
|
153,362 |
||
Accounts receivable retainage, net |
|
43,466 |
|
33,826 |
||
Costs and estimated earnings in excess of billings |
|
572,804 |
|
636,163 |
||
Inventory, net |
|
11,973 |
|
13,637 |
||
Prepaid expenses and other current assets |
|
155,353 |
|
123,391 |
||
Income tax receivable |
|
4,468 |
|
5,775 |
||
Project development costs, net |
|
20,819 |
|
20,735 |
||
Total current assets |
|
1,224,551 |
|
1,128,471 |
||
Federal ESPC receivable |
|
565,964 |
|
609,265 |
||
Property and equipment, net |
|
16,777 |
|
17,395 |
||
Energy assets, net |
|
1,882,588 |
|
1,689,424 |
||
Deferred income tax assets, net |
|
36,607 |
|
26,411 |
||
|
|
75,922 |
|
75,587 |
||
Intangible assets, net |
|
5,387 |
|
6,808 |
||
Operating lease assets |
|
77,609 |
|
58,586 |
||
Restricted cash, non-current portion |
|
19,021 |
|
12,094 |
||
Other assets |
|
77,812 |
|
89,735 |
||
Total assets |
$ |
3,982,238 |
$ |
3,713,776 |
||
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Current portions of long-term debt and financing lease liabilities, net |
$ |
343,247 |
$ |
322,247 |
||
Accounts payable |
|
399,244 |
|
402,752 |
||
Accrued expenses and other current liabilities |
|
101,259 |
|
108,831 |
||
Current portions of operating lease liabilities |
|
12,242 |
|
13,569 |
||
Billings in excess of cost and estimated earnings |
|
108,020 |
|
52,903 |
||
Income taxes payable |
|
655 |
|
1,169 |
||
Total current liabilities |
|
964,667 |
|
901,471 |
||
Long-term debt and financing lease liabilities, net of current portion, unamortized discount and debt issuance costs |
|
1,317,517 |
|
1,170,075 |
||
Federal ESPC liabilities |
|
520,497 |
|
533,054 |
||
Deferred income tax liabilities, net |
|
2,601 |
|
4,479 |
||
Deferred grant income |
|
6,806 |
|
6,974 |
||
Long-term operating lease liabilities, net of current portion |
|
58,007 |
|
42,258 |
||
Other liabilities |
|
102,645 |
|
82,714 |
||
Redeemable non-controlling interests, net |
|
42,761 |
|
46,865 |
||
Stockholders' equity: | ||||||
Preferred stock, |
|
- |
|
- |
||
Class A common stock, |
|
3 |
|
3 |
||
Class B common stock, |
|
2 |
|
2 |
||
Additional paid-in capital |
|
336,425 |
|
320,892 |
||
Retained earnings |
|
615,503 |
|
595,911 |
||
Accumulated other comprehensive loss, net |
|
(2,803) |
|
(3,045) |
||
|
|
(11,788) |
|
(11,788) |
||
Stockholders' equity before non-controlling interest |
|
937,342 |
|
901,975 |
||
Non-controlling interests |
|
29,395 |
|
23,911 |
||
Total stockholders’ equity |
|
966,737 |
|
925,886 |
||
Total liabilities, redeemable non-controlling interests and stockholders' equity |
$ |
3,982,238 |
$ |
3,713,776 |
||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) (Unaudited) |
||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||
Revenues |
$ |
500,873 |
$ |
335,149 |
$ |
1,237,261 |
$ |
933,265 |
||||
Cost of revenues |
|
423,734 |
|
271,493 |
|
1,047,960 |
|
761,012 |
||||
Gross profit |
|
77,139 |
|
63,656 |
|
189,301 |
|
172,253 |
||||
Earnings from unconsolidated entities |
|
159 |
|
526 |
|
724 |
|
1,356 |
||||
Selling, general and administrative expenses |
|
42,139 |
|
42,752 |
|
125,920 |
|
125,466 |
||||
Operating income |
|
35,159 |
|
21,430 |
|
64,105 |
|
48,143 |
||||
Other expenses, net |
|
21,469 |
|
10,642 |
|
51,399 |
|
27,883 |
||||
Income before income taxes |
|
13,690 |
|
10,788 |
|
12,706 |
|
20,260 |
||||
Income tax benefit |
|
(3,324) |
|
(10,054) |
|
(3,324) |
|
(10,552) |
||||
Net income |
|
17,014 |
|
20,842 |
|
16,030 |
|
30,812 |
||||
Net loss (income) attributable to non-controlling interests and redeemable non-controlling interests |
|
585 |
|
423 |
|
3,642 |
|
(2,077) |
||||
Net income attributable to common shareholders |
$ |
17,599 |
$ |
21,265 |
$ |
19,672 |
$ |
28,735 |
||||
Net income per share attributable to common shareholders: | ||||||||||||
Basic |
$ |
0.34 |
$ |
0.41 |
$ |
0.37 |
$ |
0.55 |
||||
Diluted |
$ |
0.33 |
$ |
0.40 |
$ |
0.37 |
$ |
0.54 |
||||
Weighted average common shares outstanding: | ||||||||||||
Basic |
|
52,413 |
|
52,209 |
|
52,352 |
|
52,104 |
||||
Diluted |
|
53,243 |
|
53,300 |
|
53,098 |
|
53,259 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited) |
||||||
Nine Months Ended |
||||||
2024 |
2023 |
|||||
Cash flows from operating activities: | ||||||
Net income |
$ |
16,030 |
$ |
30,812 |
||
Adjustments to reconcile net income to net cash flows from operating activities: | ||||||
Depreciation of energy assets, net |
|
57,352 |
|
42,847 |
||
Depreciation of property and equipment |
|
3,699 |
|
2,849 |
||
Increase in contingent consideration |
|
87 |
|
705 |
||
Accretion of ARO liabilities |
|
243 |
|
194 |
||
Amortization of debt discount and debt issuance costs |
|
3,764 |
|
3,407 |
||
Amortization of intangible assets |
|
1,615 |
|
1,681 |
||
Provision for bad debts |
|
1,292 |
|
637 |
||
Loss on disposal of assets |
|
515 |
|
18 |
||
Non-cash project revenue related to in-kind leases |
|
(2,971) |
|
- |
||
Earnings from unconsolidated entities |
|
(724) |
|
(1,356) |
||
Net gain from derivatives |
|
(267) |
|
(3,306) |
||
Stock-based compensation expense |
|
10,368 |
|
12,318 |
||
Deferred income taxes, net |
|
(3,914) |
|
(13,089) |
||
Unrealized foreign exchange (gain) loss |
|
(898) |
|
1,148 |
||
Changes in operating assets and liabilities: | ||||||
Accounts receivable |
|
(64,045) |
|
58,135 |
||
Accounts receivable retainage |
|
(9,753) |
|
4,589 |
||
Federal ESPC receivable |
|
(110,841) |
|
(143,647) |
||
Inventory, net |
|
1,664 |
|
570 |
||
Costs and estimated earnings in excess of billings |
|
126,694 |
|
5,260 |
||
Prepaid expenses and other current assets |
|
15,112 |
|
(10,925) |
||
Income taxes receivable, net |
|
798 |
|
590 |
||
Project development costs |
|
(4,456) |
|
(4,638) |
||
Other assets |
|
(4,664) |
|
(2,080) |
||
Accounts payable, accrued expenses and other current liabilities |
|
13,511 |
|
(38,444) |
||
Billings in excess of cost and estimated earnings |
|
42,215 |
|
10,104 |
||
Other liabilities |
|
6,796 |
|
1,200 |
||
Cash flows from operating activities |
|
99,222 |
|
(40,421) |
||
Cash flows from investing activities: | ||||||
Purchases of property and equipment |
|
(3,053) |
|
(4,597) |
||
Capital investments in energy assets |
|
(341,794) |
|
(445,540) |
||
Capital investments in major maintenance of energy assets |
|
(13,597) |
|
(8,024) |
||
Net proceeds from equity method investments |
|
13,091 |
|
- |
||
Asset acquisition, net of cash acquired |
|
- |
|
6,206 |
||
Contributions to equity method investments |
|
(10,442) |
|
(3,489) |
||
Grant award received on energy asset |
|
403 |
|
- |
||
Acquisitions, net of cash received |
|
- |
|
(9,183) |
||
Loans to joint venture investments |
|
- |
|
(566) |
||
Cash flows from investing activities |
|
(355,392) |
|
(465,193) |
||
Cash flows from financing activities: | ||||||
Payments of debt discount and debt issuance costs |
|
(10,114) |
|
(8,635) |
||
Proceeds from exercises of options and ESPP |
|
1,899 |
|
3,384 |
||
Payments on senior secured revolving credit facility, net |
|
(33,400) |
|
(115,000) |
||
Proceeds from long-term debt financings |
|
663,598 |
|
728,600 |
||
Proceeds from Federal ESPC projects |
|
129,399 |
|
107,303 |
||
Net proceeds from energy asset receivable financing arrangements |
|
5,216 |
|
12,514 |
||
Contributions from non-controlling interests |
|
33,789 |
|
499 |
||
Distributions to non-controlling interest |
|
(1,367) |
|
(20,521) |
||
Distributions to redeemable non-controlling interests, net |
|
(418) |
|
(494) |
||
Payment on seller's promissory note |
|
(41,941) |
|
(12,500) |
||
Payments on debt and financing leases |
|
(441,603) |
|
(162,749) |
||
Cash flows from financing activities |
|
305,058 |
|
532,401 |
||
Effect of exchange rate changes on cash |
|
1,827 |
|
(980) |
||
Net increase in cash, cash equivalents, and restricted cash |
|
50,715 |
|
25,807 |
||
Cash, cash equivalents, and restricted cash, beginning of period |
|
153,676 |
|
149,888 |
||
Cash, cash equivalents, and restricted cash, end of period |
$ |
204,391 |
$ |
175,695 |
||
Non-GAAP Financial Measures (Unaudited, in thousands) |
|||||||||||||||
|
Three Months Ended |
||||||||||||||
Adjusted EBITDA: |
Projects |
Energy Assets |
O&M |
Other |
Consolidated |
||||||||||
Net income attributable to common shareholders |
$ |
9,865 |
|
$ |
2,686 |
|
$ |
3,801 |
|
$ |
1,247 |
|
$ |
17,599 |
|
Impact from redeemable non-controlling interests |
|
— |
|
|
(911 |
) |
|
— |
|
|
— |
|
|
(911 |
) |
Plus (less): Income tax provision (benefit) |
|
2,859 |
|
|
(7,383 |
) |
|
596 |
|
|
604 |
|
|
(3,324 |
) |
Plus: Other expenses, net |
|
3,993 |
|
|
16,983 |
|
|
163 |
|
|
330 |
|
|
21,469 |
|
Plus: Depreciation and amortization |
|
864 |
|
|
21,516 |
|
|
320 |
|
|
753 |
|
|
23,453 |
|
Plus: Stock-based compensation |
|
2,842 |
|
|
426 |
|
|
201 |
|
|
195 |
|
|
3,664 |
|
Plus: Contingent consideration, restructuring and other charges |
|
218 |
|
|
17 |
|
|
5 |
|
|
4 |
|
|
244 |
|
Adjusted EBITDA |
$ |
20,641 |
|
$ |
33,334 |
|
$ |
5,086 |
|
$ |
3,133 |
|
$ |
62,194 |
|
Adjusted EBITDA margin |
|
5.4 |
% |
|
56.4 |
% |
|
17.9 |
% |
|
11.2 |
% |
|
12.4 |
% |
|
Three Months Ended |
||||||||||||||
Adjusted EBITDA: |
Projects |
Energy Assets |
O&M |
Other |
Consolidated |
||||||||||
Net income (loss) attributable to common shareholders |
$ |
13,465 |
|
$ |
5,454 |
|
$ |
2,393 |
|
$ |
(47 |
) |
$ |
21,265 |
|
Impact from redeemable non-controlling interests |
|
— |
|
|
(587 |
) |
|
— |
|
|
— |
|
|
(587 |
) |
(Less) plus: Income tax (benefit) provision |
|
(6,953 |
) |
|
(3,766 |
) |
|
717 |
|
|
(52 |
) |
|
(10,054 |
) |
Plus: Other expenses, net |
|
5,042 |
|
|
4,970 |
|
|
227 |
|
|
403 |
|
|
10,642 |
|
Plus: Depreciation and amortization |
|
1,134 |
|
|
14,902 |
|
|
311 |
|
|
707 |
|
|
17,054 |
|
Plus: Stock-based compensation |
|
3,128 |
|
|
570 |
|
|
293 |
|
|
328 |
|
|
4,319 |
|
Plus: Contingent consideration, restructuring and other charges |
|
595 |
|
|
14 |
|
|
4 |
|
|
52 |
|
|
665 |
|
Adjusted EBITDA |
$ |
16,411 |
|
$ |
21,557 |
|
$ |
3,945 |
|
$ |
1,391 |
|
$ |
43,304 |
|
Adjusted EBITDA margin |
|
6.8 |
% |
|
48.7 |
% |
|
17.3 |
% |
|
5.5 |
% |
|
12.9 |
% |
|
|
|
|
|
|
|
Nine Months Ended |
||||||||||||||
Adjusted EBITDA: |
Projects |
Energy Assets |
O&M |
Other |
Consolidated |
||||||||||
Net income attributable to common shareholders |
$ |
1,415 |
|
$ |
5,082 |
|
$ |
10,601 |
|
$ |
2,574 |
|
$ |
19,672 |
|
Impact from redeemable non-controlling interests |
|
— |
|
|
(3,766 |
) |
|
— |
|
|
— |
|
|
(3,766 |
) |
Plus (less): Income tax provision (benefit) |
|
2,859 |
|
|
(7,383 |
) |
|
596 |
|
|
604 |
|
|
(3,324 |
) |
Plus: Other expenses, net |
|
15,032 |
|
|
33,819 |
|
|
1,003 |
|
|
1,545 |
|
|
51,399 |
|
Plus: Depreciation and amortization |
|
2,897 |
|
|
56,605 |
|
|
956 |
|
|
2,208 |
|
|
62,666 |
|
Plus: Stock-based compensation |
|
7,713 |
|
|
1,305 |
|
|
670 |
|
|
680 |
|
|
10,368 |
|
Plus: Contingent consideration, restructuring and other charges |
|
930 |
|
|
100 |
|
|
15 |
|
|
96 |
|
|
1,141 |
|
Adjusted EBITDA |
$ |
30,846 |
|
$ |
85,762 |
|
$ |
13,841 |
|
$ |
7,707 |
|
$ |
138,156 |
|
Adjusted EBITDA margin |
|
3.4 |
% |
|
55.1 |
% |
|
17.3 |
% |
|
9.5 |
% |
|
11.2 |
% |
|
Nine Months Ended |
||||||||||||||
Adjusted EBITDA: |
Projects |
Energy Assets |
O&M |
Other |
Consolidated |
||||||||||
Net income attributable to common shareholders |
$ |
12,114 |
|
$ |
11,659 |
|
$ |
3,820 |
|
$ |
1,142 |
|
$ |
28,735 |
|
Impact from redeemable non-controlling interests |
|
— |
|
|
869 |
|
|
— |
|
|
— |
|
|
869 |
|
(Less) plus: Income tax (benefit) provision |
|
(8,405 |
) |
|
(3,920 |
) |
|
1,336 |
|
|
437 |
|
|
(10,552 |
) |
Plus: Other expenses, net |
|
10,127 |
|
|
16,150 |
|
|
559 |
|
|
1,047 |
|
|
27,883 |
|
Plus: Depreciation and amortization |
|
2,901 |
|
|
42,150 |
|
|
923 |
|
|
1,403 |
|
|
47,377 |
|
Plus: Stock-based compensation |
|
8,629 |
|
|
1,783 |
|
|
904 |
|
|
1,002 |
|
|
12,318 |
|
Plus: Contingent consideration, restructuring and other charges |
|
1,147 |
|
|
48 |
|
|
15 |
|
|
211 |
|
|
1,421 |
|
Adjusted EBITDA |
$ |
26,513 |
|
$ |
68,739 |
|
$ |
7,557 |
|
$ |
5,242 |
|
$ |
108,051 |
|
Adjusted EBITDA margin |
|
4.0 |
% |
|
50.9 |
% |
|
11.1 |
% |
|
7.0 |
% |
|
11.6 |
% |
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||
Non-GAAP net income and EPS: |
|
|
|
|
||||||||
Net income attributable to common shareholders |
$ |
17,599 |
|
$ |
21,265 |
|
$ |
19,672 |
|
$ |
28,735 |
|
Adjustment for accretion of tax equity financing fees |
|
(26 |
) |
|
(26 |
) |
|
(80 |
) |
|
(81 |
) |
Impact from redeemable non-controlling interests |
|
(911 |
) |
|
(587 |
) |
|
(3,766 |
) |
|
869 |
|
Plus: Contingent consideration, restructuring and other charges |
|
244 |
|
|
665 |
|
|
1,141 |
|
|
1,421 |
|
Less: Income tax effect of Non-GAAP adjustments |
|
(63 |
) |
|
(173 |
) |
|
(296 |
) |
|
(369 |
) |
Non-GAAP net income |
|
16,843 |
|
|
21,144 |
|
|
16,671 |
|
|
30,575 |
|
|
|
|
|
|
||||||||
Diluted net income per common share |
$ |
0.33 |
|
$ |
0.40 |
|
$ |
0.37 |
|
$ |
0.54 |
|
Effect of adjustments to net (loss) income |
|
(0.01 |
) |
|
— |
|
|
(0.05 |
) |
|
0.03 |
|
Non-GAAP EPS |
$ |
0.32 |
|
$ |
0.40 |
|
$ |
0.32 |
|
$ |
0.57 |
|
|
|
|
|
|
||||||||
Adjusted cash from operations: |
|
|
|
|
||||||||
Cash flows from operating activities |
$ |
25,091 |
|
$ |
(6,572 |
) |
$ |
99,222 |
|
$ |
(40,421 |
) |
Plus: proceeds from Federal ESPC projects |
|
9,271 |
|
|
30,604 |
|
|
129,399 |
|
|
107,303 |
|
Adjusted cash from operations |
$ |
34,362 |
|
$ |
24,032 |
|
$ |
228,621 |
|
$ |
66,882 |
|
Other Financial Measures (Unaudited, in thousands |
||||||||
|
Three Months Ended |
Nine Months Ended |
||||||
|
2024 |
2023 |
2024 |
2023 |
||||
New contracts and awards: |
|
|
|
|
||||
New contracts |
$ |
585,824 |
$ |
341,140 |
$ |
1,433,940 |
$ |
799,380 |
New awards (1) |
$ |
479,425 |
$ |
708,470 |
$ |
1,534,824 |
$ |
1,673,625 |
(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 |
||
|
Low |
High |
Operating income (1) |
|
|
Depreciation and amortization |
|
|
Stock-based compensation |
|
|
Restructuring and other charges |
|
|
Adjusted EBITDA |
|
|
(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, contingent consideration expense, stock-based compensation expense, energy asset impairment, 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, contingent consideration expense, stock-based compensation expense, impact from redeemable non-controlling interests, 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 impairment, 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.
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