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Mar 31, 2023

Ameresco Q1 2023 Earnings Report

Ameresco's first quarter revenue was ahead and profits were in line with guidance, with total backlog increasing 13% sequentially.

Key Takeaways

Ameresco reported first quarter results in line with expectations, with revenue of $271.0 million, GAAP EPS of $0.02, and Non-GAAP EPS of $0.03. The company's total project backlog increased by 13% sequentially, driven by $472 million in new awards.

Revenues of $271.0 million

Net income attributable to common shareholders of $1.1 million

GAAP EPS of $0.02

Non-GAAP EPS of $0.03

Total Revenue
$271M
Previous year: $474M
-42.8%
EPS
$0.03
Previous year: $0.36
-91.7%
Total Project Backlog
$2.97B
Previous year: $3.1B
-4.0%
Gross Profit
$49.9M
Previous year: $68.4M
-27.0%
Cash and Equivalents
$179M
Previous year: $68.3M
+162.0%
Free Cash Flow
$57.1M
Previous year: -$277M
-120.6%
Total Assets
$2.97B
Previous year: $2.53B
+17.3%

Ameresco

Ameresco

Ameresco Revenue by Segment

Forward Guidance

Ameresco anticipates adjusted EBITDA growth of 5% at the midpoint for 2023. Second quarter revenue is estimated to be in the range of $280 million to $300 million, adjusted EBITDA between $30 million to $40 million, and Adjusted EPS between $0.10 to $0.20.

Positive Outlook

  • Expect to place between 80 and 100 MWe of energy assets in service in 2023 including three RNG plants.
  • Several additional RNG assets are in the late stages of development, and we expect that 4 or 5 of these will come online during 2024.
  • Our planned Capex for 2023 is $325 million to $375 million, the majority of which is expected to be funded with non-recourse debt.
  • The incentives associated with the IRA are expected to drive significant new customer investment over the coming years.
  • Secular growth drivers, together with the breadth of our technological expertise and our international expansion plans underpin our 2024 Adjusted EBITDA target of $300 million

Challenges Ahead

  • Second quarter revenue, adjusted EBITDA and Adjusted EPS to be in the range of $280 million to $300 million, $30 million to $40 million and $0.10 to $0.20, respectively.
  • The Company’s guidance excludes the impact of any redeemable non-controlling interest activity related to tax-equity partnerships, one-time charges, asset impairment charges, changes in contingent consideration, restructuring activities, as well as any related tax impact.
  • The macroeconomic environment is uncertain.
  • Global supply chain challenges and inflationary pressures may impact results.
  • Weather related events and climate change may impact our business.

Revenue & Expenses

Visualization of income flow from segment revenue to net income