Ameresco(US:AMRC)2021-08-02 22:00Financial Data and Key Metrics Changes - The company achieved a 23% year-on-year growth in revenues, tripling net income compared to the same quarter last year, and growing adjusted EBITDA by 42% [7][14] - Gross margin increased to 19.5%, up 90 basis points sequentially and 180 basis points year-over-year [16] - GAAP EPS was $0.26 and non-GAAP EPS was $0.34, reflecting a 79% increase [16] Business Line Data and Key Metrics Changes - The energy assets business saw a 28% revenue growth, driven by increased efficiencies and favorable market prices for Renewable Identification Numbers (RINs) [14][15] - The projects business continued robust growth with an increase in larger, more complex projects as customers focus on holistic energy and water portfolios [15] Market Data and Key Metrics Changes - The company reported a record 33 megawatts of assets brought into operation during the quarter, including the McCarty Road RNG facility [9][18] - The company has a total of 315 megawatts of operating assets with approximately $1 billion in long-term contracted revenue [18] Company Strategy and Development Direction - The company is focusing on expanding its Energy as a Service offerings, which have seen significant customer interest, particularly in the higher education market [11] - The company is strategically looking to expand its presence in Europe, having gained traction and aiming for further growth in that market [50][52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth opportunities driven by favorable policy momentum and increased customer focus on reducing carbon footprints [22] - The company reaffirmed its 2021 financial guidance, citing strong visibility and business momentum [21] Other Important Information - The company appointed Claire Hughes Johnson as an independent director, bringing over two decades of experience in product innovation and business strategy [12] - The company emphasized its commitment to environmental, social, and governance (ESG) initiatives, including community volunteering opportunities and cybersecurity training [19][20] Q&A Session Summary Question: Activity levels in the Project business - Management noted that project activity is at record levels across various sectors, including schools and municipalities, driven by COVID-19 stimulus funds [25][26] Question: Energy as a Service appetite in C&I space - Management indicated that the Energy as a Service model is gaining traction in the corporate and industrial sectors, with increasing inquiries [29] Question: RNG market guidance and pricing - Management stated that guidance remains somewhat conservative regarding D3 RIN pricing, acknowledging market price fluctuations [32][33] Question: Cost inflation and mitigants - Management discussed efforts to lock in contractors and procurement before signing contracts to protect margins against inflation [37] Question: Interest in battery energy storage and microgrids - Management confirmed growing customer interest in battery storage and microgrid solutions, reflecting increased demand for power resiliency [68] Question: Timing of increased RFP activity - Management anticipates that increased RFP activity will translate into net new awards in the second half of next year [73]