Ameresco, Inc. (AMRC) Bundle
A Brief History of Ameresco, Inc.
Company Overview
Ameresco, Inc. is a leading energy efficiency and renewable energy company, providing a range of services including energy efficiency, infrastructure upgrades, asset sustainability, and renewable energy solutions. The company has a significant presence in North America and Europe.
Financial Performance
As of September 30, 2024, Ameresco reported total revenues of $1,237.3 million, a 32.6% increase from $933.3 million in the same period of 2023. The increase was primarily driven by a $265.6 million rise in project revenues, attributed to the timing of revenue recognition based on costs incurred relative to total expected costs on active projects.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) | Year-Over-Year Change |
|---|---|---|---|
| Revenues | $1,237.3 million | $933.3 million | $303.996 million (32.6%) |
| Cost of Revenues | $1,047.96 million | $761.01 million | $286.948 million (37.7%) |
| Gross Profit | $189.3 million | $172.3 million | $17.048 million (9.9%) |
| Net Income | $16.03 million | $30.81 million | $(14.78 million) (-48.0%) |
Operating Expenses
For the nine months ended September 30, 2024, Ameresco's selling, general and administrative expenses (SG&A) totaled $125.9 million, slightly up from $125.5 million in 2023. Operating income increased by 33.2% to $64.1 million.
Debt and Financing
Ameresco’s total debt and financing lease liabilities stood at $1,697.3 million as of September 30, 2024, compared to $1,514.3 million at the end of 2023. The breakdown of the debt includes:
| Debt Type | Amount (September 30, 2024) | Amount (December 31, 2023) |
|---|---|---|
| Senior Secured Revolving Credit Facility | $106.5 million | $140.0 million |
| Senior Secured Term Loans | $71.3 million | $139.9 million |
| Second Lien Term Loan | $100.0 million | $0.0 million |
| Energy Asset Construction Facilities | $327.4 million | $470.2 million |
| Total Debt | $1,697.3 million | $1,514.3 million |
Market Position and Future Outlook
Ameresco continues to enhance its market position through strategic acquisitions and expanding its project portfolio. The company's backlog of contracted projects was reported at $3.27 billion as of September 30, 2024, with approximately 33% expected to be recognized as revenue within the next twelve months.
A Who Owns Ameresco, Inc. (AMRC)
Major Shareholders
As of September 30, 2024, the ownership structure of Ameresco, Inc. consists of various institutional and individual shareholders. The following table details the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| BlackRock, Inc. | 10.2% | Institutional |
| The Vanguard Group, Inc. | 9.5% | Institutional |
| Wellington Management Group LLP | 8.1% | Institutional |
| State Street Corporation | 7.3% | Institutional |
| Directors and Officers | 4.5% | Insider |
| Other Institutional Investors | 14.6% | Institutional |
| Retail Investors | 46.8% | Individual |
Stock Performance
As of September 30, 2024, Ameresco, Inc. (AMRC) has experienced significant stock price fluctuations. The stock is currently trading at $28.45 per share, with a market capitalization of approximately $1.5 billion. The following data highlights the stock performance over the past year:
| Date | Closing Price (USD) | Market Capitalization (USD) |
|---|---|---|
| September 30, 2024 | 28.45 | 1,500,000,000 |
| June 30, 2024 | 32.00 | 1,700,000,000 |
| March 31, 2024 | 30.15 | 1,600,000,000 |
| December 31, 2023 | 25.75 | 1,400,000,000 |
| September 30, 2023 | 24.50 | 1,350,000,000 |
Financial Overview
For the nine months ended September 30, 2024, Ameresco reported total revenues of $1,237.3 million, representing a year-over-year increase of 32.6% compared to $933.3 million for the same period in 2023. Below is a summary of key financial metrics:
| Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Total Revenues (USD) | 1,237,261,000 | 933,265,000 |
| Net Income (USD) | 16,030,000 | 30,812,000 |
| Earnings Per Share (Basic) | 0.37 | 0.55 |
| Gross Profit (USD) | 189,301,000 | 172,253,000 |
| Operating Income (USD) | 64,105,000 | 48,143,000 |
Debt and Financing
As of September 30, 2024, Ameresco's total debt and financing lease liabilities amounted to approximately $1.7 billion. Key components of the debt structure include:
| Debt Type | Amount (USD) |
|---|---|
| Senior Secured Revolving Credit Facility | 106,500,000 |
| Senior Secured Term Loans | 71,250,000 |
| Second Lien Term Loan | 100,000,000 |
| Energy Asset Construction Facilities | 327,365,000 |
| Energy Asset Term Loans | 708,437,000 |
Ameresco, Inc. (AMRC) Mission Statement
Ameresco, Inc. aims to provide comprehensive energy efficiency and renewable energy solutions to help businesses and government entities reduce their carbon footprints, lower energy costs, and enhance their sustainability efforts. The company focuses on innovative technologies and services that enable customers to achieve their energy goals efficiently and effectively.
Financial Overview
As of September 30, 2024, Ameresco reported a total revenue of $1,237,261 thousand, reflecting a 32.6% increase compared to the same period in 2023. The gross profit for the same period was $189,301 thousand, leading to a gross profit margin of 15.3%.
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue (in thousands) | $1,237,261 | $933,265 | +32.6% |
| Gross Profit (in thousands) | $189,301 | $172,253 | +9.9% |
| Net Income (in thousands) | $16,030 | $30,812 | -48.0% |
| Earnings Per Share (Basic) | $0.37 | $0.55 | -32.7% |
Backlog and Performance Obligations
As of September 30, 2024, Ameresco reported a total project backlog of $4,508,856 thousand, which includes:
- Fully-contracted backlog: $1,852,774 thousand
- Awarded, not yet signed customer contracts: $2,656,082 thousand
- 12-month project backlog: $976,530 thousand
Debt and Financing
Ameresco's total debt and financing lease liabilities as of September 30, 2024, amounted to $1,697,317 thousand, with key components as follows:
| Debt Type | Amount (in thousands) |
|---|---|
| Senior Secured Revolving Credit Facility | $106,500 |
| Senior Secured Term Loans | $71,250 |
| Second Lien Term Loan | $100,000 |
| Energy Asset Construction Facilities | $327,365 |
| Energy Asset Term Loans | $708,437 |
| Sale-Leasebacks | $370,344 |
Recent Acquisitions and Investments
In January 2024, Ameresco completed the acquisition of BCE for a total adjusted purchase price of $48,035 thousand, of which $9,839 thousand was paid in cash and $32,500 thousand was financed through a seller’s note. This acquisition is part of Ameresco's strategy to expand its renewable energy and energy efficiency capabilities.
Market Trends and Strategic Initiatives
Ameresco continues to adapt to market trends favoring sustainable energy solutions, leveraging its technological innovations to enhance operational efficiencies and meet growing customer demand for renewable energy. The company is committed to advancing its mission of sustainability through ongoing investments in energy efficiency projects.
How Ameresco, Inc. (AMRC) Works
Business Model
Ameresco, Inc. operates primarily in the renewable energy sector, focusing on energy efficiency and sustainability solutions. The company develops, constructs, and operates renewable energy plants, providing services to both government and commercial clients. The business model is structured around two main segments: Energy Asset Development and Energy Efficiency Solutions.
Financial Performance
For the nine months ended September 30, 2024, Ameresco reported the following financial metrics:
| Metric | 2024 (9 months) | 2023 (9 months) | Year-over-Year Change |
|---|---|---|---|
| Revenues | $1,237,261,000 | $933,265,000 | $303,996,000 (32.6%) |
| Cost of Revenues | $1,047,960,000 | $761,012,000 | $286,948,000 (37.7%) |
| Gross Profit | $189,301,000 | $172,253,000 | $17,048,000 (9.9%) |
| Operating Income | $64,105,000 | $48,143,000 | $15,962,000 (33.2%) |
| Net Income | $16,030,000 | $30,812,000 | ($14,782,000) (48.0%) |
Revenue Breakdown
For the three months ended September 30, 2024, the breakdown of revenues by segment was as follows:
| Segment | Revenue | Percentage of Total Revenue |
|---|---|---|
| North America Regions | $500,873,000 | 49.4% |
| U.S. Federal | $165,724,000 | 16.1% |
| Europe | $165,724,000 | 16.1% |
| Alternative Fuels | $43,537,000 | 4.3% |
| All Other | $23,999,000 | 2.4% |
Project Financing
Ameresco funds its projects through various financing arrangements. As of September 30, 2024, the company had the following debt and financing lease liabilities:
| Type of Debt | Amount |
|---|---|
| Senior Secured Revolving Credit Facility | $106,500,000 |
| Senior Secured Term Loans | $71,250,000 |
| Second Lien Term Loan | $100,000,000 |
| Energy Asset Construction Facilities | $327,365,000 |
| Energy Asset Term Loans | $708,437,000 |
| Sale-Leasebacks | $370,344,000 |
| Financing Lease Liabilities | $13,421,000 |
| Total Debt and Financing Lease Liabilities | $1,697,317,000 |
Cash Flow Analysis
For the nine months ended September 30, 2024, Ameresco's cash flow from various activities was as follows:
| Cash Flow Activity | 2024 | 2023 | Change |
|---|---|---|---|
| Operating Activities | $99,222,000 | ($40,421,000) | $139,643,000 |
| Investing Activities | ($355,392,000) | ($465,193,000) | $109,801,000 |
| Financing Activities | $305,058,000 | $532,401,000 | ($227,343,000) |
| Total Net Cash Flows | $50,715,000 | $25,807,000 | $24,908,000 |
Backlog and Future Contracts
As of September 30, 2024, Ameresco reported a contracted backlog of:
| Backlog Category | Amount | Percentage Expected to be Recognized in the Next 12 Months |
|---|---|---|
| Contracted Backlog | $3,273,978,000 | 33% |
Market Position
Ameresco continues to expand its market presence through acquisitions and strategic partnerships. Recent acquisitions include:
- Phase 1 acquisition of an energy asset project for $87,964,000, financed through a seller's note and construction loan.
- Phase 2 acquisition of BCE for $48,035,000, with a mix of cash and financing arrangements.
Investment Tax Credits
In June 2024, Ameresco sold investment tax credits for four energy assets, generating proceeds of:
| Asset | Proceeds |
|---|---|
| Energy Asset 1 | $23,667,000 |
| Energy Asset 2 | $23,867,000 |
| Energy Asset 3 | $23,628,000 |
Conclusion
Ameresco, Inc. continues to solidify its position as a leader in the renewable energy sector through robust financial performance, strategic project financing, and effective management of its backlog of projects.
How Ameresco, Inc. (AMRC) Makes Money
Revenue Sources
Ameresco, Inc. generates revenue primarily through several key segments: project revenue, operation and maintenance (O&M) revenue, and energy asset revenue.
| Revenue Segment | Q3 2024 Revenue (in $ thousands) | Q3 2023 Revenue (in $ thousands) | YTD 2024 Revenue (in $ thousands) | YTD 2023 Revenue (in $ thousands) |
|---|---|---|---|---|
| Project Revenue | 385,377 | 242,684 | 920,424 | 654,801 |
| O&M Revenue | 28,425 | 22,772 | 79,930 | 68,048 |
| Energy Assets Revenue | 59,130 | 44,259 | 155,700 | 135,037 |
| Other Revenue | 27,941 | 25,434 | 81,207 | 68,276 |
| Total Revenue | 500,873 | 335,149 | 1,237,261 | 933,265 |
Cost Structure
The cost of revenues for Ameresco primarily consists of direct costs associated with project execution, including labor, materials, and overheads. For the nine months ended September 30, 2024, the cost of revenues was $1,047,960, which represented 84.7% of total revenues.
Gross Profit and Operating Income
Ameresco's gross profit for the nine months ended September 30, 2024, was $189,301, reflecting a gross margin of 15.3%. Operating income for the same period was reported at $64,105, which is an increase from $48,143 in the previous year.
| Financial Metrics | Q3 2024 (in $ thousands) | Q3 2023 (in $ thousands) | YTD 2024 (in $ thousands) | YTD 2023 (in $ thousands) |
|---|---|---|---|---|
| Gross Profit | 77,139 | 63,656 | 189,301 | 172,253 |
| Operating Income | 35,159 | 21,430 | 64,105 | 48,143 |
| Net Income | 17,014 | 20,842 | 16,030 | 30,812 |
Debt and Financing
As of September 30, 2024, Ameresco had substantial financing arrangements in place, including a term loan of $100 million due in 2029. The company has utilized project financings and term loans to fund construction and ownership of renewable energy projects, totaling $301.4 million in net proceeds for the nine months ended September 30, 2024.
Performance Obligations and Backlog
Ameresco's remaining performance obligations, or backlog, stood at $3,273,978 as of September 30, 2024. Approximately 33% of this backlog is expected to be recognized as revenue within the next twelve months, predominantly from energy efficiency and renewable energy projects.
Income Tax Considerations
For the nine months ended September 30, 2024, Ameresco reported an income tax benefit of $3,324, reflecting the complexities of their tax structure, which is influenced by various federal and state regulations. The effective tax rate is anticipated to be higher in 2024 compared to 2023 due to changes in tax credits and earnings.
Market Trends and Strategic Positioning
Ameresco operates in the renewable energy sector, capitalizing on the growing demand for energy efficiency solutions and sustainable energy sources. Their diversified revenue streams and strong backlog position them favorably in a market increasingly focused on sustainability.
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Resources:
- Ameresco, Inc. (AMRC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Ameresco, Inc. (AMRC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Ameresco, Inc. (AMRC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.