NYSE$AMRC

Ameresco Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported exceptional revenue and profit growth, driven by high utilization and expense control.

Ameresco reported a strong third quarter in 2020, with a 33% increase in revenues to $282.5 million and a 126% increase in net income to $20.0 million. The company's performance was driven by strong execution in the Federal Solutions Group and continued expense controls, leading to significant operating leverage. Due to these strong results, Ameresco is raising its full year 2020 guidance.

  • Revenues increased by 33% to $282.5 million compared to the previous year.
  • Net income increased by 126% to $20.0 million, with GAAP EPS at $0.41.
  • Adjusted EBITDA increased by 54% to $36.8 million.
  • Non-GAAP EPS increased by 111% to $0.38.

Headline financials

Total Revenue

$283M

Previous: $212M+33.2%
EPS (adj)

$0.38

Previous: $0.18+111.1%
Capital Expenditures

-$1.97M

Previous: -$6.19M+68.2%
Free Cash Flow

$18M

Previous: $2.68M+572.4%
Net Income

$20M

Previous: $8.87M+125.5%
Operating Income

$24.5M

Previous: $13.5M+82.1%
Gross Profit

$51.4M

Previous: $44.7M+14.9%
Cash & Equivalents

$45.4M

Previous: $34.1M+33.0%
Total Assets

$1.58B

Previous: $1.17B+35.4%
Stock-Based Comp

$521K

Previous: $413K+26.2%

Revenue & EPS history

Ameresco · Revenue · Quarterly

$283M

Q3 2020+33.2%vs Q3 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Ameresco · $335M total across 4 segments · Q3 2023

  • Projects
    $243M-31.0%
  • Energy Assets
    $44.3M+6.2%
  • Other
    $25.4M-3.1%
  • O&M
    $22.8M+4.1%

Forward guidance

Ameresco is raising its full year 2020 guidance, expecting revenues of $960 million to $1 billion, Adjusted EBITDA of $107 million to $115 million, and non-GAAP EPS of $0.94 to $1.00.

Tailwinds

  • Revenue between $960 million and $1 billion.
  • Gross Margin between 18% and 19%.
  • Adjusted EBITDA between $107 million and $115 million.
  • Interest Expense & Other between $17 million and $19 million.
  • Non-GAAP EPS between $0.94 and $1.00.

Headwinds

  • Guidance adjustment assumes the same level of access to work sites.
  • Results are variable from quarter to quarter.
  • 2019 Q4 results were exceptionally strong due to contract timing.
  • Customers will face more challenges than ever given the long-term budgetary impacts of the COVID-19 pandemic.
  • Seeing the push for low to no carbon energy solutions and the rapidly evolving field of new distributed energy resources.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+1.2%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+7.3%

Avg return

30 days after

57%

37 / 65 earnings

Positive

+28.1%

Q3 2018

Best reaction

-35.6%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.3%-4.5%+6.0%
Q4 2025-9.9%-17.0%-20.5%
Q3 2025-10.2%-11.8%-14.8%
Q1 2025+11.4%+14.9%+27.7%
Q4 2024-35.6%-45.8%-32.6%
Q3 2024-17.6%-17.7%-13.6%
Q2 2024+4.8%-2.5%+6.9%
Q1 2024+18.7%+21.7%+56.5%
Q4 2023+3.0%-11.0%+18.6%
Q3 2023-24.0%-25.2%+1.4%
Q2 2023-8.3%-12.9%-24.5%
Q1 2023+7.9%+3.4%+3.6%
Q4 2022-12.5%-9.0%-8.7%
Q3 2022-14.0%-12.5%+8.1%
Q2 2022+11.8%+15.2%+20.3%
Q1 2022+15.6%+11.5%+15.5%
Q4 2021+9.9%+8.2%+39.7%
Q3 2021+13.9%+18.7%+7.0%
Q2 2021-9.5%-5.7%+1.6%
Q1 2021-4.8%+3.2%+7.5%
Q4 2020-0.7%-24.7%-14.9%
Q3 2020+13.3%+12.0%+15.8%
Q2 2020+11.5%+9.6%+13.2%
Q1 2020+12.4%+14.9%+31.0%
Q4 2019-0.2%-4.7%-29.2%
Q3 2019+1.6%+2.5%+6.7%
Q2 2019+8.8%+7.5%+6.3%
Q1 2019-9.3%-8.5%-9.1%
Q4 2018-1.1%-10.0%-8.4%
Q3 2018+28.1%+22.6%+23.7%
Q2 2018+0.3%-1.4%-4.2%
Q1 2018-4.6%-3.4%+0.8%
Q4 2017+19.2%+28.7%+55.1%
Q3 2017+1.9%+0.6%+9.0%
Q2 2017+9.6%+12.0%+16.0%
Q1 2017+2.3%+7.0%+6.3%
Q4 2016+15.4%+14.4%+26.0%
Q3 2016+11.5%+3.1%+25.0%
Q2 2016+3.0%+4.7%+8.3%
Q1 2016+14.5%
Q4 2015-16.6%
Q3 2015+0.9%
Q2 2015+3.8%
Q1 2015-1.1%
Q4 2014+11.7%
Q3 2014-2.3%
Q2 2014+12.4%
Q1 2014-5.7%
Q4 2013-23.9%
Q3 2013-12.8%
Q2 2013-5.8%
Q1 2013+0.0%
Q4 2012-6.9%
Q3 2012-1.3%
Q2 2012-3.4%
Q1 2011-0.2%
Q1 2012-3.1%
Q4 2011+5.5%
Q2 2011+5.5%
Q4 2009+5.5%
Q3 2011+1.1%
Q3 2010+1.1%
Q1 2010+9.2%
Q2 2010+9.2%
Q4 2010+9.2%

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