Ameresco(AMRC) - 2024 Q3 - Quarterly Report

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$500.9 million[169] - Project revenues increased by $142.7 million, or 59$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$271.5 million in 2023[169] - Cost of revenues for the nine months ended September 30, 2024, was $1.05 billion, a 37.7$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$1,772,000 (2.0%) year-over-year, driven by higher energy asset revenue[177] - Europe revenues rose by $12,113,000 (29.9$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]