Ameresco (AMRC) Misses Q3 EPS by 7c, Revenues Miss; Offers FY19 EPS/Revenue Mid-Point Guidance Above Consensus

November 5, 2019 6:16 AM EST

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Ameresco (NYSE: AMRC) reported Q3 EPS of $0.19, $0.07 worse than the analyst estimate of $0.26. Revenue for the quarter came in at $212 million versus the consensus estimate of $235.4 million.

Third Quarter 2019 Financial Highlights:

  • Revenues of $212.0 million
  • Net income attributable to common shareholders of $8.9 million
  • Net income per diluted share of $0.19
  • Adjusted EBITDA of $23.9 million
  • Total project backlog of $2.2 billion
  • Record high project awards of $343 million
  • Ameresco Assets in development added 37 MWe
  • Record Smart Energy Solutions Awards
  • Significant Growth of Ameresco Assets in Development
  • Timing Issues Impact Smart Energy Solutions Revenue
  • -Reaffirms Full Year 2019 Guidance

“As we stated at the beginning of the year, 2019 was going to be an investment year. We decided to invest in our advanced technology portfolio, bringing in top talent and engineering excellence to accelerate the growth of the distributed energy generation business. This strategy proved effective, as we had a record high quarter for project awards. We also executed effectively on our long-term strategy of growing our recurring revenue with continuing growth of the Ameresco assets business,” said George P. Sakellaris, President and Chief Executive Officer.

"Third quarter results largely reflected timing issues in our Smart Energy Solutions project business as several large contracts were not signed before quarter’s end. These represent contracts that Ameresco has been awarded, but the timing of project commencement can be pushed out according to client schedules."

“Recent events in California demonstrate the growing need for resiliency, as public and private organizations can no longer count on the existing grid for uninterrupted power. In particular, we expect to see increased demand for our advanced technology portfolio including onsite energy generation, energy storage and microgrids. Ameresco’s investment in these complex technologies places us in a strong competitive position to deliver these solutions to our customers.”

GUIDANCE:

Ameresco sees FY2019 EPS of $0.77-$0.85, versus the consensus of $0.79. Ameresco sees FY2019 revenue of $845-885 million, versus the consensus of $851.64 million.

While third quarter results were below the Company’s expectations, Ameresco reaffirms its full year 2019 guidance for net income per diluted share of $0.77 to $0.85, adjusted EBITDA of $95 million to $103 million, and total revenue of $845 million to $885 million.

Ameresco ended the third quarter with a substantial project backlog and large energy asset development pipeline, which support Company expectations for a strong finish to 2019 and accelerated growth entering 2020.

Full year 2019 guidance excludes the impact of the $2.2 million gain during the first quarter from the deconsolidation of a variable interest entity, any non-controlling interest activity, restructuring activities, as well as any related tax impact. Also 2019 guidance does not assume any benefit from IRC Section 179D deductions, which in 2018 provided a benefit of $5.8 million, and have since expired.

For earnings history and earnings-related data on Ameresco (AMRC) click here.



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