Ameresco (AMRC) 2 Nov 202020 Q3 Earnings call transcript

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Ameresco, Inc.

Third Quarter Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at the time.

conference being this reminder, a call recorded. is As turn over to would now host, conference to like I your the Ms. Leila Communications. Dillon, and Vice President, Marketing Ms. you Dillon, begin. may

you call. Nika, everyone. you, good joining appreciate us Thank for and today’s We afternoon,

Chief Joining me Sakellaris, Mark Chief Doran George here Chiplock, and Vice Senior President Officer; Chief Executive Accounting President Vice Officer. Ameresco’s Hole, Financial Officer; Chairman, are and and President and

pertain as call like contains factors turn We SEC company. revise actual result call to risks such information could and statements. to and refer any performance forward-looking this release over to would or obligation projections important made make today’s beliefs. on based a our our results the forward-looking We I press in call. regarding financial differ uncertainties from a are current I statements events business. assume forward-looking Before discuss remarks. on We to you of that future expectations Actual issued no documents that George, This forward-looking regarding future those company’s materially that the and or contained materially statement brief the may to afternoon company’s to results predictions statements management’s caution the cause filings. you These the of differ to

can turn George? to are over from GAAP website. will the prepared George. A our in slides, the available to of press addition, downloaded this generally explanation reconciliation non-GAAP in of measures release accounting our referring measures which in non-GAAP as be an principles. financial now appendix financial to not In call. accordance we the is will behind financial as and measures These during accepted the well with I non-GAAP call use non-GAAP be

hope staying Thank everyone you, and and afternoon. healthy safe. is I good Leila,

environment. like in who challenges ongoing to COVID-XX I of this manage facing us all our partners, employees, and continue thank costumers through difficult First, would to effectively the

given have with been indeed and not our a would growth this us performance quarter accelerating, cost-savings customers them. in A EBITDA. levels expense record transition And see crisis. remote healthy energy especially drive for infrastructure sources earnings This COVID-XX advanced resiliency, tight energy We to combine solutions performance with helped possible and the technologies. safe Our revenue that upgrades, low services without the demand for our excellent. controls, need XX% light our of was carbon increasing and of robust outstanding environments,

strong quarter, during backlog, group, execute contracted by Our solutions core third They exceptional and and in improved work sites the access work to continue access. which benefited job businesses contract to from led around COVID-XX our federal and to future well execute execution from our results uncertainties pull hard given sites.

revenue, during years which predictable our visibility a recovery renewable contracted Our of with continued to which incentives, billion maintenance operational this will backlog and assets the highly on times. provide over with uncertain two combined be revenue is These long-term especially economically important average. and Ameresco businesses next generated XX businesses support $X

excellent position an identify high and opportunities. renewable financial to return in asset profile, reputation put pursue industry Our and strong us a additional

quarter, we the system. RNG During various standalone including a storage of plant and megawatts new a added XX assets,

development XXX stand a in megawatts. currently assets at renewable Our healthy

for increase quarter. in remained we the pleased in the on sequential see we to consecutive particularly focused a total execution second our While project third quarter, backlog were project

awards our total with revenue backfill us new our to gives visibility execution strong ability as backlog $X.XX billion. to grew Our project excellent

look city proposal is more street global leverage series recent smart infrastructure solutions. for than as growth additional in effort upgrade. opportunities contracts municipalities activity, as in Interestingly, noteworthy customer geographic of made lights this across the sharing forward opportunities, are as see which embracing accepted now the city, of country Chicago and an long-term installation of XX are we how Heights, seeing days. The was our an deep this certified city footprint repeat business with anticipate similar retrofit They will project broad in Highlight drive project we customer control the smart proposal technologies. future. We the aging win customer relationships our the intelligent X,XXX involving to contract in with lighting numerous We showing the the Ameresco uptick We to in and you system, is savings over are with our core with with less LEDs. often base. to include

County areas had win received Hamilton Act, commodity the plumbing projects in that is facing help to contract Ohio. worked under stimulus our public in facilities. many United turn Another buildings staff the team Ameresco public will the long-term scarcity a that recent as Water is opportunistic longer available around quick efficiency customers regions of be including county world, example, used viewed which States County can identify at of their the turn valued the be over to restrooms large the safety faucet. by Also, funds touchless protect needed issues. quick and they fixtures reopen Hamilton with are a year-end. a as turn we water the and that include no CARES the

consumption the from more distribution or system, capture order a also promotes money significant and to been AMI municipalities automatic enhance costs. interest reading revenues. of transparency have efficient infrastructure a country effective deploy They manually The not an We meters. AMI save water amounts and to for customers advanced seeing municipalities will versus technologies. into sewer increased only allow lost meter systems and across water

storage, type partnership million Energy. including with good A this our Texas in project we projects contract expanding, such important advanced solutions, market of rapidly projects in services managing AMI area. Ameresco’s cybersecurity, addressable Water customer at of by for Fort in recent Bragg battery is are examples Woodlands demand great this lighting utility is with are and two and technologies, recent increasingly Gatesville Duke controls solar, advanced example as driven comprehensive of the City of more. Our $XX energy

the be service will felt energy most and will created generation battery ever renewable host a it’s the pressures this distribution no creates storage Ameresco Here, backdrop X.X to to for as with we upfront solutions come. our under benefit substantial and often savings conservation PV of energy improving certainly will implement This has economics. it energy has long-term increased resilience Again, from to a Ameresco returns our solutions a of is advanced service governments will cost rapidly but, technologies, interest technologies floating healthy the financial the system continue Energy and as world. end, structure In qualities a upfront X years large of their long-term deliver in costs. measures. impact a number be around efficiency the economic system. agreement That low-carbon of opportunity. health improvements, their energy infrastructure related ongoing our capital. stressed Ameresco megawatt and companies, the including for financial an this In under with customer and deploying megawatt structure. COVID-XX no against traditional and seeing and customers institutions providing growing directly market conservation provide and energy-related also innovative a measures,

the visible this recurring gains Our summary, another future. COVID-XX customers service in stream. to in Ameresco their challenges while highly continues environment. We maximizing In revenue near resources, Ameresco benefits contracts long-term by energy overcome to forward announcing look financial the difficult and upcoming

creatively Doran? our now our approach We I solutions serve call flexible comprehensive offerings will performance. are allowing spirit to maintain time, to to seek At expertise the customers. expanding to turn valued additional some our over customers great and same us for create provide comments financial Doran on and opportunities. we and the entrepreneurial our opportunistically out and our revenue

good achieved and Group. to I’m and operating the In pleased businesses the by our to with on for XX% across increased our Solutions to growth. financial financial exceptional accelerating Thank record you earnings press performance. the performance strong core third website company’s third we Federal double-digit refer and our growth review quarter led supplemental quarter, additional George, our information. slides grew growth EBITDA Please everyone. year-on-year levels leverage and release posted of afternoon Revenue revenue leading

strong forward at Gross projects the including to company’s was for leverage the share environment, and the history and scalable ended attributable permanent non-GAAP on from highly in rest these post-pandemic a to As we will access our benefit than to billion XX% per contracted and year-over-year and to were remained savings remain site million. EBITDA, travel and Net with the continue in more EBITDA expenses of revenue a over $XX.X replenish income income strong consistent a nature Revenue we projects doubled sequential some in new highest in levels, contracts, gross while earnings the financial SG&A our growth, an increase year. backlog. income of We anticipate future. with $X model. executed in our revenue, at locations. benefit in increase Even XX.X% and will believe contracted net investments representing common remained of was and Ameresco net Adjusted expenses we levels key the achieved as Non-GAAP of We project measure have the number $XX our of and also similar. related grow mix year-on-year. spending of operating pulled quarter our reduced the of existing business performance improved higher XXX%. portion And our continue performance. backlog X% utilization shareholders million, are our drivers we past a margin our was to margins year-to-date growth. many thanks of our

stands pandemic slowdown quarter now business at backlog in at new $X.XX billion the development end, project total Our activity. despite related

and down ended the line XX% flows long-term and challenges, Ameresco’s for our QX. EBITDA, credit. businesses, during further reduced with will liquidity incentives O&M to of years on recurring pandemic the quarter strong paying to We margin focus XX credit the to These available $XX XX execute hand billion annuity end ample cash high on collections development revenue contracted revenue cash cash revenue streams from year-to-date businesses million come. Our assets. DSO Despite provide cash for after quality at our have pipeline. us quarter our approximately remains with and our $X million on of continued between renewable with accounted in and the of asset which of our $XX days on

have we financing capital, In working equity, access development assets. addition also tax broad ability the to strong have monetize to we and and to project

recognition release, noted the from information request revenue for businesses. timing of concerning the we As SEC a in our in our SaaS received

and that businesses While seriously. time, whole, want these of to taking the our since we the contribute small amount stakeholders very revenue are short transparency counsel a emphasize an under to In received the as for sake we forensic to SEC this recognition found investigating effort, our Committee. business we a relatively time of request, we matter Audit accountant, errors. we have assessing all external our considerable outside of To-date, and revenue matters spent supervision these material, and the have no using

XX% of assumes $X. robust work pleased million turning in to and billion, access we discrete to estimate and growth the very full for of have to midpoint non-GAAP revised $XXX as our our to outlook, EPS. detailed increasing our adjusted EBITDA The XX% same Now not EBITDA of in revenues be and range in $XXX $X.XX our XX% we’re year $XXX sites press of account level our the non-GAAP does This items. to in revenue, guidance guidance very growth represents release. now of million, a to million now EPS We growth in $X adjusted will XXXX

fourth QX exceptionally evaluating that And We variable in report. our from were detailed QX, quarter-to-quarter. more timing. last year-over-year results keep will be our results strong outlook earnings quarter XXXX mind comparisons during our due contract our to are providing in year, a When

George comments. like to Now I’d to over call for back turn the closing

Thank you, Doran.

to business our to proposition customers years continue allow and will unique Ameresco model come. value Our for to to thrive

call family team Our project what us you growth The will profitability stream, your excellent you. Operator, questions. for revenue recurring to entire of visibility record give should now safe. stays like and the and hopes Ameresco open Thank into Ameresco and another to I year XXXX. be backlog in

Noah Oppenheimer. from [Operator the Instructions] comes Your line question Kaye of first from

now is line Your open.

be Good going you hand And certainly not you’ve XQ the afternoon, the timing. in to XQ revenue I had so on be dependent aware much of, good with to and strong year-over-year contract think results everyone. already mentioned into comps but it’s that

first question structure. the on that, with capital So is

year-to-date. here an produced on think adjusted flow strong you basis, really I cash free

most an have should Whereas finance how we profile – capital and for to optimal project that how CapEx be able you your flow. energy with time, financing about growth in want development, and forward? be been the recurring over cash at thinking You’ve of going you structure, flow you cash look energy the your leverage, target and the projects will operating EBITDA what mean to

I question. ask Good will that. on follow-up to Doran

Yes, thanks.

particular leverage with our So public track we as I have a any while specific making lot is have, think truth any our at about we’re the statements the not levels company plans, record a or and of disposal. tools we

We continue project creative financing. to pursue

And As finance the you to markets, M&A mentioned, us the monitor opportunities. and ideas expansion. has fund for to markets, that we’ll cash flow markets project capital strong tax continue allowed to equity continue

back Okay. development course future I’m That’s with nicely your view very helpful. over particularly RNG Lynn’s economics. Thinking side, the helps of here of about coming the the sure on project XXXX, certainly, it

bankability of current in the projects rent Just general, advantage you this the talk can at In prices? how you time? about RNG are increase taking of

Yes.

RNG to of the we relatively you have recall, hedged the for if XX% output are our prices, been And about the might year, aware, balance for of are the probably you $XXX. around they’ve hedged. year, and XX% $XXX the constant we As

thing for other that first next The that quarter the in year, plan is we going McCarty be next of to have early the the operation new Road year. done

of XX% long-term little And plan. output output more Antonio that of have of our the for will XX% of of I a contracts San plan. We and say bit Woodland about plan the the

for going get worthy XX% XXXX, we look that, good to hedged far actually are long-term working will we are So as output. say, credit And we contracts. of to I various close – with off-takers our beyond as

come and have service we probably will that into plants two indicated. the for So

But the So into we And XXXX operation, the evolving profitable, to looking much execute beyond, and is contract. return a have lot ones and projects, line long-term little and some even hopefully contracts bring rents these long-term worst else. that that next is into we longer I with might they bit the think, those very a in where from conditions, sacrifice to contract, than a then now we year to contracts. of where two return anybody we the right three get long-term order than are plants on the for are return plan equity, as better again, kind actually the have a to market of on under bottom plants

Sorry, George. ahead. go ahead, Go

have three-year it, as basis, course, it’s and unless X- all have far, we the executed. right project able a leverage, like to would so now, plants And that were we we we The finance as on of contracts, to finance get not they because good developed contracts. we are probably XX-year the ones

incentive contracts, of You Right? XXXX, thinking that the these along still or other in bundle ones contracts, future be the streams, think the able think whether revenue you’ll the you’re that it’s for is be about year some you streams how where with to they dis-aggregated? next those projects

very able long I to with feel comfortable will we financial that and will looking pretty in be terms good we as we’re up No, get bunch as, them and some that.

and of and to prices they the term that that to them it so And because be want right? to have longer are gas. quite us, natural this they them carbon with power is like can only contracts be them, do colleges to XXX% way up we are able many far replacing of not of We combined approaching few the even And have plants, universities because do. by stepped neutral. them, to they heat a will some we is execute gas The would but green talking they

their footprint. them, not that that coming to some talking utilities the to started announce contracts specific it’s and electric down carbon the yet. to can we again, utilities, next we are reduce originally with going utilities, the we where now we are it’s And the some of but And gas position be of gas evolution, pike in with the any a

Well, right. very questions. quarter. thanks Nice the much taking All for

you. Thank

very you Thank Noah. much,

Your line the of question next comes Eric Craig-Hallum. Stine from from

now is open. line Your

question. the taking for Thanks everyone. Hi,

Eric. Hey, Yes.

the obviously, pretty revenues, there RNG. your bit and mean with when longer of I that And quite landfill? projects term, the and better I’ll which think were higher looks CI that I’m would score your be dairy be to Maybe you thoughts may between I like stick the in on pipeline. some just breakdown component, just depending nice any guess curious California. pipeline in a getting versus LCFS I’m what on a the at and much about

them. development, No, the that’s right represent And And of they megawatts. nail RNG our that head. if XX a you very question. I pipeline on But good have we is now in chunk you think, the all that of a developing in plants hit very good the total plants,

be besides least but agreements of I at, do looking the road some in go of even at we don’t – have hydrogen them, And but landfill couple a be to have value. other and we you, but right we with might are able value. order not have discuss higher landfill, surprised the don’t We we into place agree these in yet now, I been other the them, thing, developing talk that have plants plants, that to sites, about higher a down the

Got it.

just are in know on your and conditions you guess quarter. up now? worsening with mean, the fourth curious But the guidance know tuned you’re what quarter. very third that. I about early guide, in good just mean, wave quarter, stays Okay. now conditions concerns I COVID about some it we’ll it thinking stay roughly seeing but was you Maybe another to I predicated and any is working that seeing areas, I took change a the on and I same,

position Look, it. I as site some some we’re have are, unless Yes. a they back and up a to some anticipate to it be days but did We started maybe the and are not I something we in for remember, our March, Doran on have up disruption, do down provide teams a colors, did add – some backlog, shutdowns and on want executing far seen we we week And when prolonged number than if of some we periods good you to where very but what or of good few us then the even will I as shutdown there more say well. in going it. shut clean total in that. the add sites, Based will past, a on of as again. time, was we and sites they very, will the might very

problems. I as to that add So why might we don’t a and would’ve question we lot that’s envision want any to something much think been possible. that’s And this great the And available third quarter. be as prepared for Doran, say a to and about try it last because sites

pushed, have some That’s as basis military the why much we to from to possibly quarter some accelerate we we we the So pulled quarter I fourth in had. and schools various especially well. sites, as as the revenue the access this because revenue believe

So opportunity. advantage we the of took

to one-month I and I quarter now will haven’t Doran, And well the any into continue we fourth to interruptions. do might seen say, that. take? We are you want

Yes.

monitoring operating thus any to all that us to where I can the the as as far. I But are being located, our are how allow you in to going over think where George And all anything arise. and in we’re it’s our projects said, haven’t will about to states able various seen situations from think imagine infection are react things rates year react country. and earlier the that the experience we which

Yes.

the couple of a last George, one that. me, then of was months, announced Thanks clearly number opportunity the that there here you. size right And and mentioned seeing would is of a last mean, do for about for just, military mean, think opportunity? awards big Okay. it driver opportunity? a to mean, trend what third I you I you I and how for very like seem that quarter. that any way is you’re now over sustainable

And I question why that’s – this about it. remark. made No the

only because Our some only carbon concerned kind are expanding. into go are resiliency, about but infrastructure about resiliency, reduction not and their upgrade, not of of market we and base each now, about expanding then every opportunities is footprint. more that The renewables, we

because microgrids, that’s distributed economics we talk driver projects or it’s that for generation, improvements in on. see, And soon, sense why pencil happening So been did and think on we make that’s combine amazement as the microgrids, place, what and a me, And Otherwise my client. more and biggest the why out. sustainable. administration that of of on you other have the a XX so. cost and the regardless solar, you I’ve they we and this reduction so we to distributed driving the they generation announced, very are of more the have we couple can and And that’s economic business business. for thing that’s in good seen. it so have years And best have technological the they solar is in And this

Yes.

a Thanks Okay. lot.

welcome. You’re

Thank you.

Your of Canaccord comes Dorsheimer Jon line Genuity. from next from question the

line Your open. is

Hi, thanks. Congratulations and strength. on the the quarter

you. Thank

couple questions. of A

the – end that curious see know You’re in there. in small that really your also I well But any I guess, activity welcome. execute relatively the and question just municipality is which side, yes, didn’t first I’m on of under seems I commercial now and pressure the business, portion you’d But in revenues. on from that universities. terms rate continued out you’ve anything to it noted military dynamic in of market an a start call first,

wanted get to approval beginning but it’s Actually, some No, didn’t call very get think to three, timely and in business. it’s a I feel we did one, fashion, move this market the about customers good question. because finally economic it, driven. wanted I not what actually That talk that’s beginning makes it’s to move, about very, but no, approval CNI me is to couple, a large they two, out. it I from good very

some this to to the been many can programs. beginning to I of a us that, In business good very long good time seeing I’ve carbon as And is that have reduction. next said is e-GSLV and we’re finally addition And happen this to know, major capitalist in you sustainability talk they implementation. move. to projects, CNIs the and them, they’re probably get

hand many them them. for other they us project, design the then the of On though the and them, we to project built that want develop

a bit, federal state squeeze all faster develop than they much the but And on the they we’ve financial service the can they it’s much have talk they have and successful. at the and other in some to different for deals. or of financing margins encouraging. the that’s contract future, we’ll able agreement because a be market as quick the announce say them, those thing, So sure, the many approached us move why the have of now. kind see will type us I you you that’s a turnaround some little and why been so some see said, constraints. us And That’s near they right of as And performance we energy as of

was terms ask in energy the question you second hit you, to going it. I that a Well, of service. the as Got

think that a business way of thinking to item focus line and CNI kind about of recognize of the this your that? at just kind but of be that may separate business. a we Is should start that on is it seems relatively as right separate small it’s thinking and like the So of stage, I’m side breakout? that I

I’ll jump in here.

a I financial about category also in is sure from think all structure not CNI a customer for coming the it’s bases. our it as probably I’m little of bit sure. the that desire Certainly, exclusive would development. for assets of energy service to more another like So the energy

with streams. going our that’ll be generate We’re exploring become situations are our Those recurring balance sheet the customers. on long-term assets to those revenue will that

Got helpful. That’s it.

way those. best So I probably think the about think that’s to

guess, the seems then carbon feel if what perfect you kind you on any I is that – home that well on if And you limitations George, Okay. do wondering, of with as the I as revenues mean to relates now business work like tax business? that has like have in pressure you Or as just there’s your footprint. this feel if are there’s for from focus there well as feel as a the created by you dynamic it I’m Do in your it reducing that And any the expand do to constraints storm ability is headcount well-balanced? you’re respect? as business? And

on that’s services I green down additional rest right of side, would and well now, the Well, as distributed gas there. But generation on, sense approached or on little we engineering especially fact large business been balanced. why there a technology looking the actually financing we than and the But the side, help bit large are the plants, we’d hydrogen from we the before, things for general the this said that, a and the the where very for have And then the leverage into customer. the good legal and a and I actually we was administrative bit accelerates, road agnostic lucky we are manufacturer, agnostic the side so makes we the is operations. we’ve and that little say extra independent are that business accounting, been more I get a with business doing in and utility we energy technology, room, side, think are like I the good. a say, past, non-affiliated would just a from solution from bit what of little and

us lot. independent, this we’re We have helped talent. it And the the the for fact business has to have a people passion and attract we’ve that able been that

queue. you. back Great. in I’ll jump Thank

you. Thank

comes Capital. Craig Your from line next Irwin of ROTH question from the

Your line is now open.

out park. Good really evening knocking congratulations on the of it really in strong the this quarter, performance

trying. We’re

succeeding. And

when come Do couple you are George, plants, next coming the Thank start remind you some you. approximate cellulosic on of those up? can cuttings firm maybe we those online, have us your how timing ribbon to expect dates?

was basically in of we some one storms getting not of storms on couple from as COVID-XX is that’s question. because little and down commissioning equipment, delivery a the by that but but and have Yes, of plan delayed months. bit the primarily a of this quarter the Macquarie, much Texas good that various down there, the

start will the the we year. year. next that that, plan of to to are of that addition next two in end first have quarter So start by plants Then in supposed

by them next of the year. of start will One definitely end

The other particular because one might fires but, primary understand, gaining and developing the in And it more bottleneck Craig, what’s right have everything pipelines in these the especially then you borrowed the course, with has else. then there and flip the permitting XXXX. for year plants ways quarter on, more, attention we to that And the of so process. of are first especially going valuable permitting the California, And in getting with but utilities three them. they the on what’s gas COVID-XX going of

Understood.

we’re matter to contracts. But where happen, waiting doing as be able to to that people, we hired we was it’s tunnel us want light and as be do And to until of And going long-term to year. much help in waiting we expedite local Because the it’s I we and we the have therefore time of really able more happen see to order up. plants. to are get those building at end local and California a to least actually we the talent we’re at will plants three a in build our can this,

EBITDA project Can you well project any your XX% So, almost on the talk specific we in contributing the prior X.X in then there? of EBITDA an peak plants up increased this quarter, it year-over-year items there, about performance at look million Is saw rings above what of as sequentially third the some basis. some business. That’s your maybe and we strength were that items to the the in any for both of debugging really there? by was sequentially

Doran?

mean, I Craig, when Federal the But quite a look quarter. operates the the business jump about performance we I Group start, leverage, that. Yes. I And talked might at actually think I’ll of as extraordinarily operating that’s was in that think efficiently. strong into Mark we

a stronger versus businesses. So the of our bit EBITDA other even is some contribution

items that actually I don’t could there. you? Mark, know So I any can particular isolate

project overall unusual, those revenue was Yes. real company. down in really across projects to I add, were it mix of much more no to think just federal the there’s don’t the the comes there

just contributions. mix there was it whether continued a the So stronger execution and

That’s excellent.

really business in that’s a quarter other that gave Or chunky closeouts $X any number. steady $X.X many many, and there particularly number or sequentially, million into that quarter maybe on Were number any just in over state is the project that lifted the big that was the in that of O&M years? projects was built up it that the million strength? runs-off book EBITDA, So items based strong a its has other again Ameresco

acquire it’s capital, it increase gearbox and a get savings a after require we And great that will business line. we any And we implement. contracts, on a I focused comes revenue when but company more. contracts And the say and O&M in that’s we our many small had O&M the That’s have XX-year that greater basically going contracts them, and we’ll we lumpy, will opportunity why for a are base that It’s recurring some and improve there, want us. of why grow player the we to XX-year to that It’s Yes. but once one business the agreements. energy love that’s doesn’t we maybe is the that or one bad. we they federal performance business mean our then it’s maybe fit quite lot, sticky. large find that a niche we

business to be in! great A

Yes.

offered the question properties, the value these definitely They’re of there I cellulosic one my actually we particularly for about And environment is now. the maybe plants last for the cheap investors potential in now? to several given So these surprised seem business understand sale pretty long-term valuation plants. be has last of a has but for that couple in Ameresco more equity that acquire are the should right a right are not if profit and than your understand to fair this plants years. given being much it market, chooses well

I out than And think I money. very, high. the all Craig. expectations make on And at other we know of that do cautious. But on very, street bit we’re and looking the very deals better are we little otherwise can will the kinds very us, If you know they the opportunities. to that, I they hand, Look, is it. there sense make right are like price

your cautious most your as the like investors. of I

another… on congratulations So

as aware. we On might the not are at other that other hand as expensive things But they are be. be some you the might there opportunities looking not are

might sense criteria, be wouldn’t economic I company our the we it’s and surprised but going key meet for So great something, that acquire to make fit. strategic

Would on, know up for to plants? didn’t you you who multiple really of go one bulge a transaction maybe portfolio was a the consider the of a bracket bank that would buying to consider that portfolios? There was sale butchered portfolio

prices – develop will beyond extremely last That’s are like helped of that little look, far. plants We crazy we people our these said, we us want you last it, that developer. own bit they but that it our there brought up strategy time assets, own a better our built assets. some I it. little it built we’re some look our bit because We than so we in we a operate I know some careful, to reach. at and a out has and We’ll And continue competitors.

On the be have landfill there’s XX they then And be I opportunistically, different in that have and to them, no we other hand, we’ll somewhat will we we continue. look, execute develop, the we gas, couple a opportunistic, shortage. so will say did plants want

on the That’s good to hear. progress. Congratulations

you much, very Thank Craig.

Thanks, Craig.

the comes next James. from question of Pavel from Your Raymond Molchanov line

Your line is now open.

development in XX% as your solar And for, makes does a way believe for aiming portfolio is or exactly solar the the in I either economics there the sense? XX%. operation Thanks megawatts. question. as my that taking you’re In mix of long not that’s it Is matter is portfolio,

Doran?

question. for thanks Pavel the Yes,

latter I think really. the more it’s

it’s sense to the about reward and talked we makes asset stage, started those like. and as see, returns risk down to proposal energy-as-a-service in what economically in appearing going developing all opportunities the be what You’ll look

finding Solar to that what’s in to At mean and continue that’s doesn’t months the grew substantially opportunities because time, XX happen. same the company, going the I to think deals. were we the pretty good necessarily XX last were available for months

customer What I offices, fact might on. all solar universities, manure colleges, schools, them, country that, add our there, one so now of are and the develop they advantages of accounts of course they and the the the plants some like of behind solar can the across is

plants, happening all what us gas they and So developing for X the lot. I’d does scale smallest item kilowatts say plants. the sites solar, that to there’s Where that we the country, see the have basically specialized you green more will have much X megawatts for across one group

as So limitations we capabilities why where do gas the and we that’s in have building on possible. plants, We solar up everybody bit whether side, plants. easier are they that to but can are there that do as will be the to will green and come that. – that little the company to us, hopefully accelerate develop much as And around able help

I emerge Yes. Pavel, in – also storage certainly add, solar a I mean, sorry, – our is just plus something starting guess pipeline I would here. lot development I’ll that’s to

there’s they actually get not there relatively talked You’re metric, have conservative as putting recorded that of projects certainly here. that this about reach our we’re before, I But seeing in before we’ve think of in well. milestones terms this in terms actually of in activity as things metric, plenty to

a day In election. the away that from context, since we’re

foot-off development drops next to take then So, projects in beyond? or of statutory and for solar possible to scenario, that XXXX. pull let’s at assume you’re XXXX end many that efforts, and fair that’s going the expires XX% the the as year as if your to in it Is perhaps suppose the ITC for for the accelerator into your solar

accelerator the a bit reaction. is extreme an little of Foot-off

other I in should XX to costs they’ll equipment Costs, know we any in terms be come of our developer, down all continue think will safe-harbor XX. and reasonable come we order desire to to down. as like that preserve

then, a the storage keep mind bring in do solar is we and have strive our of that increase and We to down lot project efficiencies that to business. in work to battery in continue balance systems. And

So, going as sector. to we’re down necessarily I think a in slow contractor the don’t

add. I what may Now,

drive, Solar is think or from away, from time, incentives all the years the C&I let’s go be here market at the they state. say that And will the now, mass even happening. by and it’s I if three whether

standard there that’s are you’re increases efficiency in is the of today Just think to you wattage be If going can to direction, module that solar ways module that versus deals the keep about seeing. get in make these going where pencil. pricing the that to modules, going

you guys. Thank

Thanks Pavel.

you. Thank

from Your last Christopher the of comes from B. Riley. line question Souther

Your line now open. is

be the and talking I opportunity addition when for storage point be guys, question to and piggyback color To system an you storage? Hey, you’re do just a to talk remarks, battery maybe? could about congrats quarter. you about on prepared in more also solar thanks think seems the have standalone on bit mix continuing sense of mentioned project, there, that that on my percent then last of the that that And within could a you provide the which what includes you a

kind solar that. state But if storage. the that, form say now, at the first sizes, as of the the XX%, there. as some couple applications, percentage, have maybe the far is now, the like now right Right will far say of ENGIE, out the some we percentage of couple basis, I basis, as where years I of we us every as have that say of done to – go many at just of and storage of we schools storage, small want of the various far if as want and battery the one of to the But storage put and a other ones back customers acceptability on They as concerned in that. very back. the them But costs installations did about and examples Massachusetts, military right I recently, will is evolving

storage. So we the had stages early of

Doran, might portion of So it And doesn’t portfolio. then our large add? represent a

looking those the I asset And and storage as contractor. No, talk disclose position more about further think of actually I development about are utility versus and standalone categories anything that. a think metric, rest the as a start don’t going it in about projects volumes is into assets. we’re the those, of how the talk to small we’ll the

projects which seems some and quarter popping projects the appreciate And last what access kind were or probably are new being the of disinfect UV guidance. up a a you how many the kinds be quarter, and then to with discussed sense to HVAC improved of of you I and color. COVID sites, saying? mentioned you the wanted an projects were just Understood Okay. to just this related projects strength quarter the get upgrades, the upgrades, of which delta allowed during had like types past these pull-forward then full-year on incremental of work

COVID-XX. because I It of though, the wasn’t they fact had catalyst we know say but incorporate to projects, the about that projects do COVID-XX was five I something we measures. that’s But would thing many the happening that had other that

and get to we us to talk So the get moving. customers

know to – one at catalyst projects will, some and least covered I of ended and up CARES at do mentioned in they them for money customer was of needed that moving the ahead they I the but the we out it’s Columbus, can cut something. Act So that

outbreak. earlier starting in here? other it. then should the which kind business seemed Is it kind federal on maybe seen strength update the business the or be an monitoring kind like diarist just Got of that slowdown of a back we to pandemic beyond come And are that some of hospital had any there of

did the we of we hospitals experience we on, No. them, business haven’t are early not moving full at are but in couple a any hospital all. And of I’d speed ahead doing lately. and And we slowdown some say. And seen institutions. Recently delays large

just seen that substantially the The the with hospital happened, the has even dropped And haven’t uptick. in COVID-XX any thing other we cases slowdowns.

That’s the hop in good here. I’ll Thanks. queue.

you. Thank

Thank you.

I any Thank for this concludes point questions. participating. conference gentlemen, call. don’t see you this Ladies further At and today’s

You may now disconnect.

Thank you.