NYSE$AMRC

Ameresco Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported third quarter financial results, impacted by project delays and asset downtime, but highlighted by a record total project backlog.

Ameresco's Q3 2023 results were affected by supply chain delays, administrative bottlenecks, and greater than expected downtime at some Energy Asset plants. Despite these challenges, the company drove substantial year-on-year and sequential increases in its project backlog and assets in development. The company secured over $500 million in financing commitments and is resetting guidance to reflect continued industry headwinds.

  • Revenues were $335.1 million.
  • Net income attributable to common shareholders was $21.3 million.
  • GAAP EPS was $0.40.
  • Non-GAAP EPS was $0.40.

Headline financials

Total Revenue

$335M

Previous: $441M-24.1%
EPS (adj)

$0.40

Previous: $0.54-25.9%
Awarded Project Backlog

$2.51B

Previous: $1.69B+48.4%
Total Project Backlog

$3.7B

Previous: $2.63B+40.9%
O&M Revenue Backlog

$1.24B

Previous: $1.25B-0.6%
Capital Expenditures

-$4.6M

Previous: -$3.98M-15.5%
Free Cash Flow

$16.7M

Previous: $23.4M-28.8%
Net Income

$21.3M

Previous: $27.4M-22.4%
Operating Income

$21.4M

Previous: $38.9M-45.0%
Gross Profit

$63.7M

Previous: $79.6M-20.0%
Cash & Equivalents

$108M

Previous: $123M-12.0%
Total Assets

$3.46B

Previous: $3.04B+13.9%
Stock-Based Comp

$4.32M

Previous: $3.63M+18.9%

Revenue & EPS history

Ameresco · Revenue · Quarterly

$335M

Q3 2023-24.1%vs Q3 2022
Beat estimate in 12 of 15 quarters(80%)
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 adjusting its 2023 guidance to reflect industry issues such as project conversion and asset construction pushouts. The company expects to place between 120 and 130 MWe of energy assets in service for all of 2023. The 2024 Adjusted EBITDA target is expected to be approximately $250 million.

Tailwinds

  • Significant long term growth opportunity with over $7.2 billion in revenue visibility.
  • Almost 600 MW of assets in development and construction.
  • Market demand for renewable and clean tech solutions has never been greater.
  • Two of the three Southern California Edison projects are currently in commissioning and are expected to achieve substantial completion by the end of 2023.
  • A third RNG plant is expected to be at mechanical completion by the end of the year, and fully commissioned in early 2024.

Headwinds

  • Recent industry headwinds, including project conversion delays and push-outs in asset permitting along with labor and material shortages, will continue into 2024.
  • The third Southern California Edison project, which was significantly impacted by the heavy rainfall in California, is expected to reach substantial completion in the first half of 2024.
  • The company has requested an additional extension to the maturity date for the remaining principal amount of the delayed draw term loan A under our senior secured credit facility, which is scheduled to mature on December 15, 2023.
  • The remaining principal balance is $90 million down from the original balance of $220 million.
  • Full year 2023 guidance includes Revenue between $1.315 billion and $1.370 billion, Gross Margin between 18.5% and 19.0%, Adjusted EBITDA between $160 million and $170 million, Interest Expense & Other between $39 million and $40 million, Effective Tax Rate between -30% and -25%, and Non-GAAP EPS between $1.15 and $1.25.

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 2023

Historical avgQ3 2023

+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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