Financial Performance - FY24 total revenue increased by 29% to $1,769.9 million, with Q4 revenue growing 20.7% to $532.7 million[5][6] - Adjusted EBITDA for Q4 was $87.2 million, reflecting a 58.7% increase compared to the previous year[6][9] - Net income attributable to common shareholders for Q4 was $37.1 million, a 14.6% increase year-over-year[6][9] - Revenues for Q4 2024 reached $532.67 million, a 20.7% increase from $441.37 million in Q4 2023[28] - Gross profit for the year ended December 31, 2024, was $256.09 million, compared to $246.43 million in 2023, reflecting a growth of 3.7%[28] - Net income attributable to common shareholders for the year ended December 31, 2024, was $56.76 million, down 9.1% from $62.47 million in 2023[28] - Net income for the year ended December 31, 2024, was $53,940,000, a decrease of 15.6% compared to $63,904,000 in 2023[30] - Adjusted EBITDA for the year ended December 31, 2024, was $225,341,000, reflecting a substantial increase from $54,939,000 in 2023[33] - Adjusted EBITDA for the year ended December 31, 2023, was $162,990,000, with an adjusted EBITDA margin of 11.9%[34] Project Backlog and Contracts - Total project backlog rose 24% year-over-year to $4.8 billion, with contracted project backlog reaching $2.5 billion, approximately double the levels of 2023[1][4][8] - Record Q4 contract conversions amounted to $1.1 billion, driving year-over-year contracted backlog up 92%[2][4] - New contracts awarded in 2024 totaled $2,527,854,000, significantly up from $1,276,660,000 in 2023[35] - The company recorded new awards of $2,246,669,000 for the year ended December 31, 2024, compared to $2,193,225,000 in 2023[35] Assets and Liabilities - Total assets increased to $4.16 billion in 2024 from $3.71 billion in 2023, representing a growth of 12.0%[23][26] - Current liabilities decreased to $889.01 million in 2024 from $901.47 million in 2023, a reduction of 1.4%[24] - Cash and cash equivalents rose to $108.52 million in 2024, up from $79.27 million in 2023, an increase of 36.8%[23] - The company’s energy assets net value increased to $1.92 billion in 2024 from $1.69 billion in 2023, a growth of 13.7%[23] - Cash, cash equivalents, and restricted cash at the end of 2024 totaled $198,378,000, up from $153,676,000 at the end of 2023[32] Capital Expenditures and Guidance - Anticipated capex for 2025 is projected to be between $350 million and $400 million, primarily funded through additional energy asset debt and tax equity[11][9] - The company expects 2025 revenue guidance between $1.85 billion and $1.95 billion, with adjusted EBITDA guidance of $225 million to $245 million[14][9] - The effective tax rate for 2025 is expected to range from (50)% to (35)%[14] Corporate Actions - The company successfully divested its AEG business unit, resulting in a gain of approximately $38.0 million, which improved its corporate debt leverage ratio[6][7] - The company reported a gain on the sale of business amounting to $38.01 million in Q4 2024[28] - The company recorded a gain on the sale of business amounting to $(38,007,000) in 2024, with no such gain reported in 2023[30] Cash Flow and Expenses - Cash flows from operating activities increased significantly to $117,598,000 in 2024, compared to a negative cash flow of $(69,991,000) in 2023[30] - Selling, general and administrative expenses increased to $173.76 million for the year ended December 31, 2024, compared to $162.14 million in 2023, a rise of 7.9%[28] - Payments on long-term corporate debt financings were $(127,000,000) in 2024, compared to $(155,000,000) in 2023[32] - The company experienced a net increase in cash of $44,702,000 in 2024, compared to an increase of $3,788,000 in 2023[32] - Stock-based compensation expense rose to $14,130,000 in 2024 from $10,318,000 in 2023[30] Impairments and Adjustments - The company reported an increase in energy asset impairment charges to $12,384,000 in 2024, compared to $1,609,000 in 2023[34]

Core Viewpoint - The article highlights the investment potential of Ameresco (AMRC), emphasizing its strong value metrics and favorable earnings outlook, suggesting it is currently undervalued in the market [4][7]. Company Analysis - Ameresco (AMRC) holds a Zacks Rank of 2 (Buy) and an A for Value, indicating strong investment potential [4]. - The stock has a P/E ratio of 13.70, significantly lower than the industry average of 22.30, suggesting it may be undervalued [4]. - Over the past 52 weeks, AMRC's Forward P/E has fluctuated between 10.26 and 24.71, with a median of 17.47 [4]. - AMRC's PEG ratio stands at 0.55, compared to the industry average of 1.50, indicating a favorable valuation relative to expected earnings growth [5]. - The PEG ratio has ranged from 0.46 to 0.99 over the last 12 months, with a median of 0.70 [5]. - The P/CF ratio for AMRC is 8.22, which is lower than the industry average of 8.72, further supporting the notion of undervaluation [6]. - AMRC's P/CF has varied between 7.25 and 15.14 in the past year, with a median of 10.60 [6]. - Overall, these metrics suggest that AMRC is an impressive value stock with a strong earnings outlook [7].

Project Backlog and Contracts - Fully-contracted project backlog increased to $1,852,774,000 as of September 30, 2024, compared to $1,188,460,000 in the previous year, representing a growth of 56%[163] - Total project backlog reached $4,508,856,000, up from $3,701,340,000, indicating a year-over-year increase of 22%[163] - Awarded, not yet signed customer contracts rose to $2,656,082,000, compared to $2,512,880,000, reflecting a growth of 6%[163] Financial Performance - Total revenues for the three months ended September 30, 2024, increased by $165.7 million, or 49.4%, compared to the same period in 2023, reaching $500.9 million[169] - Project revenues increased by $142.7 million, or 59%, attributed to the timing of revenue recognition based on costs incurred relative to total expected costs on active projects[171] - Gross profit for the three months ended September 30, 2024, was $77.1 million, representing 15.4% of revenues, a decrease from 19.0% in the prior year[169] - Net income attributable to common shareholders for the three months ended September 30, 2024, was $17.6 million, a decrease of $3.7 million, or 17.2%, compared to $21.3 million in 2023[171] - Total revenues for the nine months ended September 30, 2024, increased by $304.0 million, or 32.6%, reaching $1.24 billion[172] - Operating income for the nine months ended September 30, 2024, was $64.1 million, a 33.2% increase from $48.1 million in the prior year[172] - Basic and diluted earnings per share for the three months ended September 30, 2024, were $0.34 and $0.33, respectively, a decrease of $0.07 compared to the same period in 2023[171] Costs and Expenses - Cost of revenues for the three months ended September 30, 2024, rose to $423.7 million, a 56.1% increase from $271.5 million in 2023[169] - Cost of revenues for the nine months ended September 30, 2024, was $1.05 billion, a 37.7% increase from $761.0 million in 2023[172] - Stock-based compensation expense was $29,000,000 as of September 30, 2024, down from $30,100,000 at the end of 2023[160] Revenue Sources - The company’s revenues are primarily derived from energy efficiency projects, which include design, engineering, and installation of energy infrastructure improvements[146] - North America Regions revenues increased by $133,911,000 (84.9%) year-over-year, primarily due to higher project revenues[177] - U.S. Federal revenues increased by $1,772,000 (2.0%) year-over-year, driven by higher energy asset revenue[177] - Europe revenues rose by $12,113,000 (29.9%) year-over-year, attributed to higher project revenues in the United Kingdom[177] - Alternative Fuels revenues increased by $16,218,000 (59.4%) year-over-year, due to higher project revenues and increased production levels[177] Cash Flow and Financing - Cash flows from operating activities increased by $139.6 million to $99.2 million compared to a cash outflow of $40.4 million in the same period last year[202] - Financing activities generated net proceeds from long-term debt of $653.5 million for the nine months ended September 30, 2024[206] - The company expects to fund operations through cash flow, credit facilities, and potential equity financing, ensuring sufficient liquidity through at least November 2025[182] Investments and Acquisitions - The company plans to invest approximately $20 million to $75 million in additional capital expenditures for new renewable energy plants during the remainder of 2024[205] - The company entered into a purchase agreement to acquire Bright Canyon Energy Corporation for a total adjusted purchase price of $48,000,000, with $9,800,000 paid in cash at closing[188] Challenges and Market Conditions - The company expects ongoing supply chain challenges to impact operations and financial results, with increased costs for logistics and components[151] - The Inflation Reduction Act is anticipated to positively influence the renewable energy industry, although uncertainties regarding its applicability may affect project timelines[149] - The company is closely monitoring the impact of global conditions, including geopolitical factors and supply chain disruptions, on its operations[150] Asset Management - Assets in development were estimated at $2.3 billion as of September 30, 2024, compared to $1.8 billion in 2023, indicating growth in potential project value[166] - Cash draws received under ESPC agreements were $129.4 million, with $110.8 million used for project costs classified as operating cash flows[200] - The company sold and leased back three energy assets for $24.3 million in cash proceeds during the nine months ended September 30, 2024[197] - As of September 30, 2024, Federal ESPC liabilities totaled $520.5 million, reflecting advances for project construction[199]

Financial Data and Key Metrics Changes - Ameresco reported a total revenue growth of 49% to over $0.5 billion, with adjusted EBITDA increasing by 44% to a record $62.2 million [24][27][31] - The company’s total project backlog grew by 22% to $4.5 billion, while the contracted project backlog increased by 56% to a record $1.9 billion [7][24] - Energy asset revenue grew by 33%, with 42 megawatts of new assets brought into operation, totaling 715 megawatts of operating energy assets [25][27] Business Line Data and Key Metrics Changes - Revenue from the projects business grew nearly 60%, reflecting strong execution and backlog conversion [24][25] - The Operations and Maintenance (O&M) business saw a revenue increase of 25%, with a backlog now standing at over $1.4 billion, up 15% year-over-year [26] Market Data and Key Metrics Changes - The company emphasized its diversified customer base, which includes federal, utility, and municipal markets, showing strong demand for renewables and energy efficiency solutions [7][19] - Ameresco's geographical diversification includes operations in every U.S. state, Canada, the UK, and a growing presence in continental Europe [10] Company Strategy and Development Direction - The company announced a corporate structure optimization with key executive promotions to enhance operational efficiency and drive growth [5][6] - Ameresco is focusing on integrating comprehensive cleantech solutions to meet customer needs while maintaining budget-neutral cost-saving solutions [7][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience against changes in administration, citing strong bipartisan support for core efficiency solutions [8][10] - The company anticipates continued strong demand for energy resiliency solutions, particularly in federal and military markets [19][20] Other Important Information - The company reaffirmed its full-year guidance, projecting revenue and adjusted EBITDA growth of 27% and 35%, respectively, at the midpoints [31] - Ameresco's cash flow remained positive, with adjusted cash flow from operations of approximately $34 million [29] Q&A Session Summary Question: Impact of changes in Washington on RNG business - Management indicated that the RNG business remains strong despite changes in administration, with ongoing utility interest in long-term contracts [35][36][38] Question: Differences in federal contracting landscape between administrations - Management noted that performance contracts were significantly more prevalent during the Trump administration compared to the Biden administration [41][42] Question: International project developments, particularly in Greece - Management confirmed that Greece is now on par with the UK as a key operating area in Europe, with strong partnerships and project execution [43] Question: Q4 EBITDA expectations and revenue visibility - Management expects a strong revenue quarter in Q4, with improved gross margin profiles contributing to EBITDA growth [44][46] Question: Supply chain and labor market conditions - Management acknowledged some stabilization in supply chain issues but noted ongoing challenges, particularly with transformer availability [64] Question: Future capital allocation and project development strategy - Management emphasized a cautious approach to capital allocation, aiming for a 20% growth in the asset base while monetizing projects to maintain balance sheet health [57][58]

Q3 2024 Supplemental Information November 7, 2024 ameresco.com © 2024 Ameresco, Inc. All rights reserved. Safe Harbor 2 Forward Looking Statements Any statements in this presentation 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, and capital investments, as well ...

Core Viewpoint - Ameresco reported quarterly earnings of $0.32 per share, missing the Zacks Consensus Estimate of $0.51 per share, and showing a decline from $0.40 per share a year ago, resulting in an earnings surprise of -37.25% [1] Financial Performance - The company posted revenues of $500.87 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.90%, and showing an increase from year-ago revenues of $335.15 million [2] - Over the last four quarters, Ameresco has exceeded consensus revenue estimates four times [2] Stock Performance - Ameresco shares have increased approximately 1.5% since the beginning of the year, compared to the S&P 500's gain of 24.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.62 on revenues of $524.81 million, and for the current fiscal year, it is $1.15 on revenues of $1.75 billion [7] - The estimate revisions trend for Ameresco is mixed, which may change following the recent earnings report [6] Industry Context - The Alternative Energy - Other industry, to which Ameresco belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance - Total revenue increased by 49% year-over-year to $500.9 million, with project revenue growing by 59%[1] - Net income attributable to common shareholders was $17.6 million, down from $21.3 million in the same period last year[3] - Adjusted EBITDA reached a record $62.2 million, representing a 43.6% increase[4] - Total revenues for the three months ended September 30, 2024, were $500,873,000, a 49.4% increase from $335,149,000 for the same period in 2023[22] - Gross profit for the three months ended September 30, 2024, was $77,139,000, compared to $63,656,000 for the same period in 2023, reflecting a gross margin improvement[22] - Operating income for the three months ended September 30, 2024, was $35,159,000, compared to $21,430,000 for the same period in 2023, reflecting improved operational efficiency[22] - Adjusted EBITDA for the three months ended September 30, 2024, was $62,194, with an adjusted EBITDA margin of 12.4%[25] - Net income for the nine months ended September 30, 2024, decreased to $16,030, down 48% from $30,812 in the same period of 2023[23] - Adjusted EBITDA for the nine months ended September 30, 2024, reached $138,156, with a margin of 11.2%[27] Backlog and Contracts - Total project backlog grew by 22% year-over-year to $4.5 billion, with contracted backlog increasing by 56% to $1.9 billion[2] - New contracts awarded in the three months ended September 30, 2023, totaled $341,140 thousand, compared to $799,380 thousand in the same period of 2022, indicating a decline of approximately 57.3%[30] - New awards for the nine months ended September 30, 2024, reached $1,534,824 thousand, compared to $1,673,625 thousand in the same period of 2023, reflecting a decrease of approximately 8.3%[30] Cash and Liquidity - The company ended the quarter with $113.5 million in cash and an Adjusted Cash from Operations of $34.4 million[5] - Cash and cash equivalents increased to $113,502,000 as of September 30, 2024, from $79,271,000 as of December 31, 2023, indicating improved liquidity[20] - Cash flows from operating activities for the nine months ended September 30, 2024, were $99,222, compared to a negative cash flow of $40,421 in the same period of 2023[23] - Cash flows from operating activities for the three months ended September 30, 2023, were $25,091 thousand, a significant improvement from $(6,572) thousand in the same period of 2022[29] - Cash flows from investing activities for the nine months ended September 30, 2024, were $(355,392), an improvement from $(465,193) in 2023[23] Assets and Liabilities - Total current assets increased to $1,224,551,000 as of September 30, 2024, compared to $1,128,471,000 as of December 31, 2023, driven by higher accounts receivable and cash balances[20] - Total assets reached $3,982,238,000 as of September 30, 2024, up from $3,713,776,000 at the end of 2023, indicating strong growth in the asset base[21] - Current liabilities increased to $964,667,000 as of September 30, 2024, compared to $901,471,000 as of December 31, 2023, primarily due to higher accounts payable[20] Debt and Financial Ratios - Corporate debt was reported at $272.5 million, with a corporate leverage ratio of 2.8X, below the covenant level of 3.5X[5] - The company anticipates continued growth in revenues and profitability, driven by market expansion and new product developments[19] - The company reaffirmed its full-year 2024 guidance, expecting revenue growth of 27% and Adjusted EBITDA growth of 35% at midpoints[13] Other Financial Metrics - The company reported a net loss attributable to non-controlling interests of $585,000 for the three months ended September 30, 2024, compared to a net income of $423,000 in the same period of 2023[22] - The company experienced a significant increase in costs and estimated earnings in excess of billings, totaling $126,694 for the nine months ended September 30, 2024, compared to $5,260 in 2023[23] - Stock-based compensation expense for the nine months ended September 30, 2024, was $10,368, down from $12,318 in the same period of 2023[23] - The company reported a net gain from derivatives of $(267) for the nine months ended September 30, 2024, compared to a loss of $(3,306) in 2023[23] - Non-GAAP net income for the three months ended September 30, 2023, was $16,843 thousand, a decrease from $21,144 thousand in the same period of 2022, representing a decline of approximately 20.8%[29] - Diluted net income per common share for the three months ended September 30, 2023, was $0.33, down from $0.40 in the prior year, reflecting a decrease of 17.5%[29]

Core Viewpoint - Ameresco, Inc. has been recognized as the 2024 Company of the Year in the Energy Services industry by Frost & Sullivan, highlighting its leadership in providing innovative and cost-effective energy solutions that support decarbonization and infrastructure upgrades [1][6]. Company Overview - Ameresco is a cleantech integrator and renewable energy asset developer, offering a comprehensive portfolio of solutions aimed at reducing costs, achieving net-zero emissions, and enhancing energy resiliency [1][8]. - The company operates across the United States, Canada, the United Kingdom, and Europe, leveraging its project management capabilities to deliver energy solutions on time and within budget [2][8]. Innovation and Services - Ameresco's innovations include battery energy storage systems (BESS), microgrids, solar energy, renewable natural gas (RNG), electric vehicle (EV) charging infrastructure, and water management, which help clients meet their sustainability goals [3][4]. - The company emphasizes a customer-centric approach, aligning its energy services with clients' specific environmental and operational objectives [3][4]. Market Position and Strategy - Ameresco plans to expand geographically and technologically, focusing on emerging markets such as microgrid solutions and long-duration battery storage, which positions it for further market share growth [5]. - The company's strong execution capabilities and attention to detail foster long-lasting client relationships and create an ecosystem of trust with stakeholders [4][5]. Recognition and Awards - The Frost & Sullivan Company of the Year award recognizes organizations that demonstrate excellence in growth strategy, innovation, and customer value, underscoring Ameresco's leadership in the energy services sector [6][7].

Core Viewpoint - Investors in Ameresco, Inc. (AMRC) should closely monitor the stock due to significant movements in the options market, particularly the high implied volatility of the Sep 20, 2024 $22.50 Put option [1] Company Analysis - Ameresco is currently rated as Zacks Rank 3 (Hold) within the Alternative Energy - Other industry, which ranks in the bottom 29% of the Zacks Industry Rank [3] - Over the past 60 days, three analysts have raised their earnings estimates for the current quarter, while four have lowered theirs, resulting in a decrease of the Zacks Consensus Estimate from earnings of 51 cents per share to 50 cents [3] Options Market Insights - The high implied volatility in Ameresco's options suggests that traders are anticipating a significant price movement, which could indicate an upcoming event that may lead to a substantial rally or sell-off [2][3] - Options traders often seek to sell premium on options with high implied volatility, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected by expiration [3]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________. Commission File Number: 001-34811 Ameresco, Inc. (Exact name of registrant as specified in its charter) Delaware 04-3512838 (State ...