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Sep 30, 2020

Ameresco Q3 2020 Earnings Report

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

Key Takeaways

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.

Total Revenue
$283M
Previous year: $212M
+33.2%
EPS
$0.38
Previous year: $0.18
+111.1%
Gross Profit
$51.4M
Previous year: $44.7M
+14.9%
Cash and Equivalents
$45.4M
Previous year: $34.1M
+33.0%
Free Cash Flow
-$10.8M
Previous year: -$14.8M
-27.2%
Total Assets
$1.58B
Previous year: $1.17B
+35.4%

Ameresco

Ameresco

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.

Positive Outlook

  • 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.

Challenges Ahead

  • 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.