On August 5, 2024, Ameresco Inc (AMRC, Financial) released its 8-K filing for the second quarter of 2024. Ameresco Inc, a leading provider of energy efficiency solutions in North America and Europe, reported significant financial achievements and challenges for the quarter ended June 30, 2024.
Company Overview
Ameresco Inc provides energy efficiency solutions for facilities in North America and Europe. The company focuses on projects that reduce energy and operational costs for governmental, educational, utility, healthcare, and other institutional, commercial, and industrial entities. Ameresco distributes solar energy products and systems, including PV panels, solar regulators, inverters, and other components. The company's segments include U.S. Regions, U.S. Federal, Canada, Alternative Fuels, Non-Solar DG, and All Other, with the majority of revenue derived from the U.S. Regions segment.
Q2 2024 Financial Performance
Ameresco Inc reported revenues of $438.0 million for Q2 2024, a 33.9% increase from the $327.1 million reported in Q2 2023. This growth was primarily driven by a 44.5% increase in Projects revenue. Energy Assets revenue grew by 6.8%, while O&M revenue increased by 13.7%. The company also reported a net income attributable to common shareholders of $5.0 million, down from $6.4 million in the same period last year, due to higher interest and depreciation expenses. GAAP EPS was $0.09, and Non-GAAP EPS was $0.10.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $438.0 million | $327.1 million |
| Net Income (Loss) | $5.0 million | $6.4 million |
| Adjusted EBITDA | $45.1 million | $37.4 million |
Challenges and Adjustments
Ameresco faced challenges with the Southern California Edison Company (SCE) projects, resulting in $6.6 million of cost budget revisions. These projects have extended longer than anticipated, impacting the company's gross margin, which stood at 14.9%. The year-to-date impact of the SCE cost budget revisions now totals approximately $7.3 million.
Balance Sheet and Cash Flow
Ameresco ended the quarter with $150.3 million in cash. Total corporate debt was $273.4 million, with a corporate leverage ratio of 2.9X. The company raised $100.0 million in subordinated debt with Nuveen Energy Infrastructure Credit. Adjusted Cash from Operations for the quarter was $153.9 million, with an 8-quarter rolling average of $45.6 million.
Project Backlog and Future Outlook
Ameresco's total Project Backlog reached a record $4.4 billion, a 36% increase from the previous year. The company placed a record 155 MWe of assets into operation during the quarter, bringing the year-to-date total to 168 MWe. The company has adjusted its full-year 2024 guidance, increasing the revenue range based on the financial performance for the first half of the year.
| FY 2024 Guidance Ranges | Low | High |
|---|---|---|
| Revenue | $1.70 billion | $1.80 billion |
| Gross Margin | 16.0% | 16.5% |
| Adjusted EBITDA | $210 million | $230 million |
| Non-GAAP EPS | $1.15 | $1.35 |
Commentary
"The second quarter was another quarter of substantial business achievements for Ameresco as we delivered excellent year-on-year revenue and Adjusted EBITDA growth of 34% and 21%, respectively, led by the exceptional strength of our projects business while also placing a record number of assets into operation," said CEO George Sakellaris.
Conclusion
Ameresco Inc's Q2 2024 financial results demonstrate strong revenue growth and a record project backlog, despite challenges with the SCE projects. The company's adjusted guidance for the full year reflects confidence in continued growth and profitability. For more detailed financial information, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Ameresco Inc for further details.
