Ameresco announces Q3 results, opens Calif. landfill gas project

By Katie Fletcher | December 01, 2014

A grand opening celebration was held last month for Ameresco’s 4.3 MW landfill gas-to-energy (LFGTE) project at the Foothill Landfill in Linden, California. The project is expected to generate clean energy to power nearly 2,600 local homes annually.

Ameresco partnered with the City of Palo Alto, 35 miles south of San Francisco, to provide the residents with the produced energy at affordable prices, according to a statement. The project will generate approximately 125,000 MWh annually and remove nearly 66,000 tons of carbon dioxide per year or 83 million gallons of gasoline consumed by cars each year.

This project joins over 170 MW of biogas facilities across the U.S. that Ameresco has designed and built. Some of those projects were highlighted in Ameresco’s third quarter earnings call. September was a strong month for the company with signed contracts. Three larger than average projects totaled more than $74 million including a $42 million project for the Federal Bureau of Prisons, a $7 million energy efficiency project for a county in Indiana and a $25 million project for the Metropolitan Airports Commission at the Minneapolis-St. Paul International Airport. This project is comprised of 3 MW of building-mounted solar, the replacement of 7,700 light fixtures with energy saving light emitting diode technology and four electric vehicle charging stations.

Ameresco also disclosed the acquisition of Energyexcel, an independent energy services provider in Central London. “The acquisition expands our capabilities and value-added services for local and multinational commercial industrial customers while also further enhancing Ameresco’s value proposition,” said George Sakellaris, founder, chairman, CEO and president of Ameresco.

Revenues for the third quarter of 2014 were $168.9 million, compared to $161.6 million in 2013, an increase of 4.5 percent. Third quarter revenues increased 37 percent year-over-year in the U.S. federal segment. Small-scale infrastructure, including small-scale renewable energy plants—LFG, wastewater-to-energy and solar facilities—increased by 43 percent year-over-year. The increase is attributed to new renewable energy plants placed into operation during the first half of 2014 and the sale of Renewable Energy Certificates from assets Ameresco owns. Gross margin for the third quarter was 20.7 percent compared to 18.6 percent for the same quarter last year.

Third quarter 2014 adjusted EBITDA, a non-GAAP financial measure, was $15.8 million compared to $13.6 million in 2013. Year-to-date 2014 adjusted EBITDA was $25.3 million in comparison to $21.2 million in 2013.

Ameresco invested $5.6 million in renewable energy project assets during the third quarter, $16.5 million year-to-date that they plan to own and/or operate. The company expects to invest $20 million to $25 million in new assets in 2014, and has invested $13.9 million in acquisitions for 2014.

The company narrowed its fourth quarter revenue guidance range. Ameresco is now expecting revenues in the range of $570 million to $600 million with net income in the range of $8 million to $14 million. Project revenues from awarded projects and proposals is in the range of $5 to $15 million. Gross margin is estimated to be in the range of 18 to 20 percent for the end of the year.