Q1 2024 Supplemental
ameresco.com
© 2024
Safe Harbor
Forward Looking Statements
Any statements in this presentation about future expectations, plans and prospects for Ameresco, Inc., including statements about market conditions, pipeline, visibility, and backlog, as well as estimated future revenues, net income, adjusted EBITDA, Non-GAAP EPS, gross margin, effective tax rate, capital investments, other financial guidance and longer term outlook, statements about our financing plans including the status of discussion related to raising subordinated debt and our ability to finalize such a debt financing, the impact the IRA, supply chain disruptions, shortage and cost of materials and labor, and other macroeconomic and geopolitical challenges; our expectations related to our agreement with SCE including the impact of delays and any requirement to pay liquidated damages, and other statements containing the words "projects," "believes," "anticipates," "plans," "expects," "will" and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward looking statements as a result of various important factors, including: demand for our energy efficiency and renewable energy solutions; the timing of, and ability to, enter into contracts for awarded projects on the terms proposed or at all; the timing of work we do on projects where we recognize revenue on a percentage of completion basis; the ability to perform under signed contracts without delay and in accordance with their terms and related liquidated and other damages we may be subject to; the fiscal health of the government and the risk of government shutdowns; our ability to complete and operate our projects on a profitable basis and as committed to our customers; our cash flows from operations and our ability to arrange financing to fund our operations and projects our customers' ability to finance their projects and credit risk from our customers; our ability to comply with covenants in our existing debt agreements including the requirement to raise additional subordinated debt; the impact of macroeconomic challenges, weather related events and climate change on our business; our reliance on third parties for our construction and installation work; availability and cost of labor and equipment particularly given global supply chain challenges and global trade conflicts; global supply chain challenges, component shortages and inflationary pressures; changes in federal, state and local government policies and programs related to energy efficiency and renewable energy; the ability of customers to cancel or defer contracts included in our backlog; the output and performance of our energy plants and energy projects; cybersecurity incidents and breaches; regulatory and other risks inherent to constructing and operating energy assets the effects of our acquisitions and joint ventures; seasonality in construction and in demand for our products and services; a customer's decision to delay our work on, or other risks involved with, a particular project; the addition of new customers or the loss of existing customers; market price of our Class A Common stock prevailing from time to time; the nature of other investment opportunities presented to our Company from time to time; risks related to our international operation and international growth strategy; and other factors discussed in our most recent Annual Report on Form 10-K. The forward-looking statements included in this presentation represent our views as of the date of this presentation. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this presentation.
Use of Non-GAAP Financial Measures
This presentation and the accompanying tables include references to adjusted EBITDA, Non-GAAP EPS, Non-GAAP net income and adjusted cash from operations, which are Non-GAAP financial measures. For a description of these Non-GAAP financial measures, including the reasons management uses these measures, please see the section in the back of this presentation titled "Non-GAAP Financial Measures". For a reconciliation of these Non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP, please see the table at the end of this presentation titled "GAAP to Non-GAAP Reconciliation."
2
Sources of Revenue - Q1 2024
$204.3M | $68.5M | $25.6M |
Projects | Recurring | Other |
Energy efficiency and | Energy & incentive revenue | Services, software and |
renewable energy projects | from owned energy assets; plus | integrated PV |
recurring O&M from projects |
3
85% of Adjusted EBITDA Came From Recurring Lines of Business
Q1 2024 | * Adjusted EBITDA percentages allocate corporate expenses according to revenue share |
23%
Other | 85% |
9% |
Other
5% Projects
Recurring
O&M | Recurring |
9% |
O&M
16%
10%
Assets | $298M |
14% | |
Revenue | |
Projects | |
68% |
$31M
Adjusted
EBITDA*
Assets
69%
4
Energy Asset Portfolio - 3/31/2024
Biogas: Non-RNG 18% | |
Biogas: RNG 9% | |
Operating | |
Energy | |
Assets | Solar: 63% |
518 MWe |
Other: 10%
518 MWe of Energy Assets in operation. 92 MW of non-RNG biogas, 49 MW of RNG, Solar is 325 MW, Other is 53 MW
Numbers may not sum due to rounding
Ameresco's Ownership
Biogas: 18%
Solar: 30%
Energy Assets
in Development
& Construction,
756 MWe
Battery: 34%
EaaS*: 18%
762 MWe of total assets in development.
756 MWe of Ameresco-owned capacity after minority interest
*$5M of our anticipated Assets in Development spending is for Energy as a Service assets which do not include generation assets that can be measured in MWe. This metric also includes Puuloa and Ukiu Energy engine plants.
5
Energy Asset Balance Sheet - 3/31/2024
Operating
82% advance rate | |||||||
Energy | $866M | $708M | |||||
Total | |||||||
Asset Debt | |||||||
Debt | $1.3B | ||||||
Development & | |||||||
$1.6B | |||||||
Construction | |||||||
$923M | 62% advance rate | ||||||
Corporate Debt | $574M | ||||||
$0.3B | 3.0x* leverage | ||||||
Energy Asset Book Value | Energy Asset Debt |
$1.3B of the $1.6B** of total debt on our balance sheet is debt associated with our energy assets ("Energy Asset Debt").
$708M** of our Energy Asset Debt is associated with operating energy assets.
$574M** of our Energy Asset Debt is associated with energy assets
still in development & construction.
*Debt to EBITDA, as calculated under our Sr. Secured Credit agreement **Net of unamortized debt discount and debt issuance costs of $0.6M on Corporate Debt and $19.9M on Energy Debt
6
Adjusted Cash from Operations Trend
millions
8-Quarter Rolling Average Adjusted Cash from Operations
$35.0 $30.0 $25.0 $20.0 $15.0 $10.0
$5.0 $0.0 ($5.0)
($10.0) ($15.0) ($20.0)
7
Tremendous Forward Visibility: Backlog & Recurring Revenue Business
Awarded Project
Backlog
Contracted Project
Backlog
~ 12-24 months to contract
~ 12-36 months of revenue | $1.5 billion1 |
$2.6 billion1
Operating Energy
Assets
O&M Backlog
$0
14 year weighted average | Additional estimated revenue | $2.3 billion | ||
PPA remaining 2 | $1.3B | from market price RNG 3 | $1B | |
16 year weighted average lifetime | $1.2 billion | |||
$500,000,000 | $1,000,000,000 | $1,500,000,000 | $2,000,000,000 | $2,500,000,000 |
- Project backlog after minority interests
- Estimated contracted revenue and incentives during PPA period
- Estimated additional revenue from operating RNG assets over a 20-year period, assuming RINs at $1.50/gallon and brown gas at $3.50/MMBtu with $3.00/MMBtu for LCFS on certain projects
8
Sustainable & Profitable Business Model
Expected to Expand Earnings at a Faster Rate than Revenue by Growing Higher Margin Recurring Lines of Business
FY 2024 guidance, as reaffirmed May 7, 2024
Revenue ($M) | 2024 Guidance | ||||||
• High-End 14.4% CAGR | |||||||
• Low-End 13.0% CAGR | |||||||
$1,700 | |||||||
$1,600 | |||||||
$1,824 | |||||||
$1,216 | $1,375 | ||||||
$867 | $1,032 | ||||||
2019 | 2020 | 2021 | 2022 | 2023 | 2024 | ||
Guidance |
Adjusted EBITDA ($M) | 2024 Guidance | |
• | High-End 21.4% CAGR | |
• | Low-End 18.2% CAGR |
$240
$210
$205
$153$163
$91 $118
2019 2020 2021 2022 2023 2024 Guidance
9
Destination: Net Zero
Since 2010, Ameresco's renewable energy assets & customer projects delivered a Carbon Emission Reduction equivalent to:
110+ Million Metric Tons of CO2
Ameresco's 2023 Carbon Emission Reduction of approximately 16M Metric Tons of CO2 is equal to one of…
Carbon dioxide emissions from… 41 billion miles driven by
an average passenger vehicle
or
Carbon sequestered by… 19 million acres of U.S. forests in one year
Note: Annual figures rounded from historic reporting. These preliminary data estimates are derived from a methodology that leverages data captured on Ameresco assets owned and operating and customer projects. | 10 | 10 |
The annual carbon impact is calculated using these Ameresco inputs and source GHG emission factors published by the US EPA eGrid database to calculate the avoided carbon emissions of any given asset or project.
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Ameresco Inc. published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 20:48:04 UTC.