Company profile

Ticker
AMRC
Exchange
CEO
George Peter Sakellaris
Employees
Incorporated in
Location
Fiscal year end
SEC CIK
IRS number
43512838

AMRC stock data

(
)

Calendar

8 Aug 19
22 Sep 19
31 Dec 19

News

Company financial data Financial data

Quarter (USD) Jun 19 Mar 19 Dec 18 Sep 18
Revenue 198.18M 150.11M 217.37M 205.38M
Net income 9.22M 4.15M 11.59M 10.7M
Diluted EPS 0.19 0.09 0.24 0.23
Net profit margin 4.65% 2.76% 5.33% 5.21%
Operating income 13.06M 6.55M 19.56M 17.3M
Net change in cash 12.86M -35.91M -3.14M 36.59M
Cash on hand 38.34M 25.49M 61.4M 64.54M
Cost of revenue 155.04M 117.48M 168.17M 159.21M
Annual (USD) Dec 18 Dec 17 Dec 16 Dec 15
Revenue 787.14M 717.15M 651.23M 630.83M
Net income 37.98M 37.49M 12.03M 844K
Diluted EPS 0.81 0.82 0.26 0.02
Net profit margin 4.83% 5.23% 1.85% 0.13%
Operating income 59.1M 36.59M 23.78M 7.06M
Net change in cash 37.14M 3.66M -1.04M -2.12M
Cash on hand 61.4M 24.26M 20.61M 21.65M
Cost of revenue 613.53M 572.99M 516.88M 513.77M

Financial data from Ameresco earnings reports

Financial report summary

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Risks
  • If demand for our energy efficiency and renewable energy solutions does not develop as we expect, our revenues will suffer and our business will be harmed.
  • In order to secure contracts for new projects, we typically face a long and variable selling cycle that requires significant resource commitments and requires a long lead time before we realize revenues.
  • We may not recognize all revenues from our backlog or receive all payments anticipated under awarded projects and customer contracts.
  • Our business depends in part on federal, state, provincial and local government support for energy efficiency and renewable energy, and a decline in such support could harm our business.
  • A significant decline in the fiscal health of federal, state, provincial and local governments could reduce demand for our energy efficiency and renewable energy projects.
  • Provisions in our government contracts may harm our business, financial condition and operating results.
  • Our senior credit facility, project financing term loans and construction loans contain financial and operating restrictions that may limit our business activities and our access to credit.
  • The LIBOR calculation method may change and LIBOR is expected to be phased out after 2021.
  • The projects we undertake for our customers generally require significant capital, which our customers or we may finance through third parties, and such financing may not be available to our customers or to us on favorable terms, if at all.
  • Project development or construction activities may not be successful, and we may make significant investments without first obtaining project financing, which could increase our costs and impair our ability to recover our investments.
  • Our business is affected by seasonal trends and construction cycles, and these trends and cycles could have an adverse effect on our operating results.
  • We may have exposure to additional tax liabilities and our effective tax rate may increase or fluctuate, which could increase our income tax expense and reduce our net income.
  • Changes in the laws and regulations governing the public procurement of ESPCs could have a material impact on our business.
  • Failure of third parties to manufacture quality products or provide reliable services in a timely manner could cause delays in the delivery of our services and completion of our projects, which could damage our reputation, have a negative impact on our relationships with our customers and adversely affect our growth.
  • We may have liability to our customers under our ESPCs if our projects fail to deliver the energy use reductions to which we are committed under the contract.
  • We may assume responsibility under customer contracts for factors outside our control, including, in connection with some customer projects, the risk that fuel prices will increase.
  • Our business depends on experienced and skilled personnel and substantial specialty subcontractor resources, and if we lose key personnel or if we are unable to attract and integrate additional skilled personnel, it will be more difficult for us to manage our business and complete projects.
  • If we cannot obtain surety bonds and letters of credit, our ability to operate may be restricted.
  • We operate in a highly competitive industry, and our current or future competitors may be able to compete more effectively than we do, which could have a material adverse effect on our business, revenues, growth rates and market share.
  • We may be unable to complete or operate our projects on a profitable basis or as we have committed to our customers.
  • Our small-scale renewable energy plants may not generate expected levels of output.
  • We have not entered into long-term offtake agreements for a portion of the output from our small-scale renewable energy plants.
  • We plan to expand our business in part through future acquisitions, but we may not be able to identify or complete suitable acquisitions.
  • Any future acquisitions that we may make could disrupt our business, cause dilution to our stockholders and harm our business, financial condition or operating results.
  • We may be required to write-off or impair capitalized costs or intangible assets in the future or we may incur restructuring costs or other charges, each of which could harm our earnings.
  • We need governmental approvals and permits, and we typically must meet specified qualifications, in order to undertake our energy efficiency projects and construct, own and operate our small-scale renewable energy projects, and any failure to do so would harm our business.
  • Many of our small-scale renewable energy projects are, and other future projects may be, subject to or affected by U.S. federal energy regulation or other regulations that govern the operation, ownership and sale of the facility, or the sale of electricity from the facility.
  • Compliance with environmental laws could adversely affect our operating results.
  • International expansion is one of our growth strategies, and international operations will expose us to additional risks that we do not face in the United States, which could have an adverse effect on our operating results.
  • Changes in utility regulation and tariffs could adversely affect our business.
  • Our activities and operations are subject to numerous health and safety laws and regulations, and if we violate such regulations, we could face penalties and fines.
  • We are subject to various privacy and consumer protection laws.
  • If our subsidiaries default on their obligations under their debt instruments, we may need to make payments to lenders to prevent foreclosure on the collateral securing the debt.
  • We are exposed to the credit risk of some of our customers.
  • Fluctuations in foreign currency exchange rates can impact our results.
  • The trading price of our Class A common stock is volatile.
  • Holders of our Class A common stock are entitled to one vote per share, and holders of our Class B common stock are entitled to five votes per share. The lower voting power of our Class A common stock may negatively affect the attractiveness of our Class A common stock to investors and, as a result, its market value.
  • For the foreseeable future, Mr. Sakellaris or his affiliates will be able to control the selection of all members of our board of directors, as well as virtually every other matter that requires stockholder approval, which will severely limit the ability of other stockholders to influence corporate matters.
Management Discussion
  • Revenues increased $1.2 million, or 0.6%, to $198.2 million for the three months ended June 30, 2019 compared to the same period of 2018 primarily due to a $3.3 million increase in revenues from our Non-Solar DG segment and a $1.7 million increase in our All Other segment partially offset by a $3.2 million decrease in our U.S. Federal segment, a $0.6 million decrease in our U.S. Regions segment, and a $0.1 million decrease in our Canada segment.
  • Revenues decreased $16.1 million, or 4.4%, to $348.3 million for the six months ended June 30, 2019 compared to the same period of 2018 primarily due to a $19.7 million decrease in revenues from our U.S. Regions segment, a $7.9 million decrease in our U.S. Federal segment, a $1.8 million decrease in our Canada segment partially offset by a $6.8 million increase in our All Other segment and a $6.5 million increase in our Non-Solar DG segment.
  • Cost of revenues increased $0.8 million, or 0.5%, to $155.0 million and gross margin percentage increased slightly to 21.8%, from 21.7%, for the three months ended June 30, 2019 compared to the same period of 2018, respectively. The increase in cost of revenues is primarily due to the increase in revenue described above.
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