Ameresco (AMRC) 1 Mar 222021 Q4 Earnings call transcript

Good day and thank you for standing by and welcome to the Q4 2021 Ameresco, Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. now today, hand Leila would to conference I speaker your Dillon. Instructions] like the to over [Operator Thank you. Please go ahead, madam.

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

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

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

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

Energy platform our business outstanding excellent operating results. increases The in employees very by good entire fourth difficult dedicated this a executed across strong for lines. And year and in environment as our Ameresco, afternoon, growth an record in We to Leila. you, growth achieved with quarter, cooperation customers and led Asset both Thank our profits of our capped projects quarter everyone. deliver

results, In project visibility of in over across these with XXXX confidence This $X a of total in XXX of coupled billion tremendous excellent lines trajectory. addition, entered megawatts business, to with development, supports we record including billion in backlog. $X of over revenue multiyear our have Ameresco’s our growth assets

continue to address solutions customers their as needs activity energy resiliency proposal up, costs, goals. picking that We see increasing and carbon seek reduction

doubling backlog Southern There the project, pursuing company. compared year. to the of XX% California Arizona California win we major sequentially and and Edison project the contracted requirements well year production waiting. our and addition complex the billion, last And $X.X other large the With ended that opportunities with was battery for increasing almost are Edison, several at a contract are Southern

XX%. business strong in Asset our got assets Our XX%. up Energy revenues quarter, base ended another operation, growing the with XXX We year with exceptionally of by megawatts

as demonstrated is Ameresco’s addressable offerings opportunities by and with financial technology continue our by to We to industry our driven market also trends to both our in partnership good energy coupled utilities. opportunities, megawatts. electric construction A new solution backfill, flexible continued aggressively is expanding The assets well and being addressable of in in investments clear solutions. acceleration expanding experts this development market related example and increased as bringing growth XXX in gas with

grid use through innovative to help them emerging in standard addition to the advance opportunities. position a At are in capture to invest Ameresco, to in electricity people portfolio their The clients of we strong Southern helping is and California energy a their the them Edison industry renewable in we now we are ensure to example. project, to storage the utility of history increase solutions resiliency renewable reach In these microgrids provide solutions. goals, also Ameresco’s technology continue that largest perfect

development, help us could plants depending completion course plants this could accelerate four For in biogas staff or in XXXX the and hiring RNG five senior to over as instance, an that XX business additional unit. on believe more the made we investment resources of we potentially as plants than in many in managers this XX from six doubling last our construction development months, Renewable With engineers opportunistic the in mechanical number of reach permitted. six in Gas Group,

these As a future it – and any continued do a provides foundation but plants in reminder, XXXX, from expect meaningful – visibility growth. we not revenue for

Over the years, we have built and acquisitions. through opportunistic Ameresco organically

existing seeking footprint. of future the customers Buildings automation strategy. sector. our by to Smart An environmental is integrating existing productivity, and with in solution great complete a is portfolio maximize our our to Buildings customers solutions to and Cleantech Solutions. We a building provide for costs our expands solutions Plug acquisition integrated a in opportunity this while pipeline of rapidly minimizing co and see of acquisition their This their recent Smart controls Smart example best Our smart employee the growing

and note vision energy cumulative aspects and to well market to shop And metric environmental carbon achievements Ameresco’s in of importantly, our all have needs. integrity. underway providing are more Our ESG the DNA. ESG ESG. report. further of want a tons to that goals. in goals also recently set I opportunities, for doing Building growing action, that Smart customer to we want our and of there corporate their continued Well, innovation, offset achieve many the in investment million projects great Ameresco’s XXXX public, attention our is some dioxide. to with company-wide we XX our Since large is customers highlight also addressable major going while out entitled, market delivered renewable by carbon published and I core efforts report, expands assets a paid good, doing one-stop XXXX,

expect the energy significantly service. the of a we efficiency We number placed deliver as solution and to grow in this result assets renewable we

net XXXX achieve X scope to operations pledged zero carbon X scope both have for also We by emissions. and

reductions green targets for by emissions goal targets to science-based initiative gas with establish through net certification. will greenhouse validate objective XXXX a zero – we Third,

FinTech Ameresco every committed of standards day highest the of attain makes in are corporate we We broad to to are impact and of the citizenship. proud providing solutions customers, of very the a that range quality

During of highlighting a recipient awards and the Ameresco the of the quarter, strength number team. recognitions, goes of the after Ameresco

now Our Storage some excellent call work Energy S&P the Platts and performance guidance. over was by to market. Storage highlighted and Global US which the Doran I Doran? accomplishments again to in strategies recognized the our comments Association by and Battery Energy on financial will provide turn Systems Ameresco’s

to slides to lines contributing our of our website release businesses been Please asset diversity resilient and additional uniquely actions robust posted and Ameresco afternoon, related And of quarter that of have all and O&M you, footprint financial growth. good our revenue our Thank geographic project George. supplemental our everyone. and of press business The demonstrated four for fourth our profit stability of chain impact the refer in information. issues. of with platform to handling and supply our makes profile and the capable with The coupled COVID clearly

team faced again others, many overcome results. our topnotch deliver these was to of to While able the record challenges once same as we

results record assets The allowing impressive business, with we projects XXXX visibility, us led revenue operating pursue revenue by important, year-over-year by from business, our the existing total reflected for increase business performance a our in in guidance. $X Asset was positioning another in prices. and front the as to SCE billion as in our new driven continued win the growth was large from well QX end including of in us to once RIN Just contract. our opportunities improved strong quarter and of our end revenue The Energy again year strength

We our continue development assets operating portfolio bringing asset online. additional to quarter grow in by each

in leverage helped the the adjusted long-term in growth business margin margin, SCE Despite a as completed Consolidated margin also operating project year-over-year O&M in strong impact ability gross is our attached gross the strong the dollars add demonstrating growth work. of other practice, lower given gross example SCE recurring a nominal without The we O&M the growth. of stream, prime contracts OpEx line with EBITDA. design/build contract had to project profit drive substantial of expectations, our contract. to this the profile revenue our of gross Our long-term was our quarter lower

our were backlog and Now, billion, are increased activity including SCE the to Customer our pursuing sequentially complex total bidding year-over-year we remained pleased backlog. to XX% project have very project. record in large many $X projects. move interest project a We XX% and other strong to

us We our This as one and customers have expertise. the integrators leading positions market. of the in Cleantech track a proven record recognize

of and also operation, quarter, into with assets batteries. XX megawatts, the our assets placed additional we in XX backfilling During development including both solar megawatts an while

$X.X our to have full XXXX visibility long-term have revenue also higher some as approximately assets continue Our margin on additional revenue XXX Together we megawatts I’ll $X.X our these our O&M quarterly of and considerable and contracted incentives. with now in provide detailed guidance turn billion press cadence release. color streams. to backlog, the long-term to in recurring year operating billion

year non-GAAP be and growing of EBITDA with growth adjusted XX%, at anticipated expect EPS, our unparalleled a to of the guidance. XXXX XX% We and XX% revenues, midpoints

into and service, with megawatts debt. of energy to which the of During fund $XXX capital, $XXX between assets million we in placing non-recourse we anticipate while megawatts expect XX investing to XXXX, XX majority million

here or we it comment is to While typically the contracts, we some quarterly not significant color contract feel necessary on to due results. our the do on performance provide of provide impact SCE expectations on do specific

approximately from that first contracts. the quarter, with With with back revenue anticipate to sequential and gross to hand, expected recognition consolidated on We be the quarter procurement closer sequentially the cadence will discuss SCE schedule total peak we XXXX revenue an for to from be more margin different during total will the is clarity the margin total driving quarterly for expected fourth XX.X%. meaningfully XX%. increase, before gross strong with contract revenue the our linear We the construction in be second in at finalizing flat Revenue November SCE approximately project pattern. quarter quarter, expect XX% historical

margin total similar be mix. due total to approximately the to project is expected revenue XX.X% look expected Third to quarter, to but quarter first gross is

We team Ameresco’s in this an SCE company. have tackle project internal, without and compromising best-in-class assembled execution the development capabilities execution to elsewhere business

to and issues, techniques are chain supply project as have that progressing the is planned. to allowed procurement us report navigate we Our pleased

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

I the Thank you, to, team XXXX. to take very during thank a and a entire challenging outstanding again, want execution for their Ameresco dedication closing, In moment Doran.

ongoing stockholders. I and support believe long-term also addressable We over that and prospects a the is in with history, XXXX expanding a market. rapidly visibility $X position customers our to have revenue and near-term better. long-term never billion our recognize in of want our entered both strongest We been

in Day City Investor remind Finally, I to will XXrd. be everyone March holding first in like New Ameresco person York do that its on

investors to look provide savings, Ameresco’s long-term person. like energy analysts in to the which our growth model. growth open broad event, at of interactive most cost partner will of and leadership events and business you we I now featuring by Operator, presentations opportunities integrated team. reduction. Discussions panels We will powerful questions. make Solutions. portfolio seeing on deeper to the nexus call resiliency, And designed innovative be The solutions would comprehensive the highlighting During Cleantech institutional a our understanding of with representation forward advanced the a to the there for of Ameresco, and opportunities – industry’s preferred complex key footprint focus carbon

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

lines Your open. are

everyone. questions, Thanks the for taking

You know contracting trend. want prepared ask environment to the remarks you underlying to and backlog follow-up your around

George know mentioned complex projects several large I requirements. you You with think

were – You’re I you you those. from winning think said

at as you’re second, a ex-SCE? And types that you think to do So be year? of you this us backlogs. the exit first, by technologies are flavor [technical here? of levels you referring of Are up kind this back mean sequentially applications – can ‘XX, can give by difficulty] you I apologies. they And underlying And or XXXX

several were questions there. There

Yeah, you know it’s there.

we’re technologies backlog? So at in should we, that we the the tackle first, looking I should mean,

Okay.

our bigger and storage, green gas more Smart announcements solutions made. play comprehensive of it’s Buildings portfolio, saw that – you bigger some batter some getting More hydrogen and Basically plants. a we microgrids

So call advanced basically, list what the technologies. comprehensive of we

a coming big in a I I been what we’ve what and George said, seeing. to awarded been seeing think that’s in concentration microgrids the mean, just with the the what’s of I think certainly if about echo conversions, part been on side and backlog certainly

well. street controls the part, you street The continues fairly got as there know efficiency an second coming we’ve lighting lighting piece, to is some projects important then, traditional energy be through, as involve And as which lighting, you especially, well. usual, per large know

know generation you to well. think and lot I these of – customers as as is in So, want typical a for fold they

you batteries know have coming the solar the along with we in. central plant – So

question. technology the that’s So

if next the So you’ll one, to move though.

can I It said difficulties. just have move on dropped. we He think the got he Operator, technical we to backlog. was the next question?

Sure, sir.

comes Your the Gengaro next from Stephen Stifel. line from question of

line Your now is open.

Thanks and good afternoon, everybody.

afternoon. Good

give Two things of as a you – know Energy where just couple you the next us go Can projects me. of Asset the through quick stands for on RNG the in update rollout portfolio years? your where we

had Yeah, as I year, three six. the and or we we and pointed out, the five year level completion increased we mechanical accelerated then this after to for

about fully going plants One year due that’s take But building can the we plants we get projects delayed, those have six other operational after that. with we substituted California permits. that plants, to and to get of some were them especially issues but we to building year. next and permits. an And that biggest the couple we – with permitting they are we excellent year to now job able the accelerating a us But couple the the in probably – did of to a team, with want about a get up team projects

Yes.

Steve here. those completion, know megawatts, rundown go the million through about with mechanical bit represent $X.X a can year. XX plants, the three you is expectation So, per you MMBtu reaching XXXX,

about a with depth California of down. of mentioned that is up building pull there But In up plants to know completion MMBtu get million mechanical breadth pipeline, based and George permitting. X.X As process to on ahead that’s had you MMBtu. you XXXX, the megawatts in actually permitting. of in expect pulled XXXX, plants you million we’re trying again, XX to things our were because others a the five the we on and team, actually permitting megawatts couple of to we the couple know development caught in – But to and additional slowing some know in X.X to depending where XX or six

think with you in inflationary the general. go been forward? Thank on B, prices just that’s in how dealing labor you’re high about think we the as contracting with know impact helpful. now tough. you of Great, you. there’s obviously also sorry know and your, curious as gas – inflation and of oil an we’re environment dealing and then And the we’re environment – and I’m impacts of has margin A, you new the the know about sort front we that projects how I

and trying impact of at, sense you’re – a get of Just kind be to for how should kind approaching about? we what how thinking

with business. the I’ll So start project on

point the here. contingency we that projects. pieces to right of in important practices business, is ensure amount – Ameresco’s that there’s of project hold on we So I’ll out some operating the One

is the to prior traditional sufficiently contracted from the that contracts process, cycle procurement is long. second awarded to The signing in because public going

allow margins. the us prior We to contract pre-negotiate have subcontracts protect signing and to of the procurement ability our to most to our

side. one that’s So

as the that because means, energy is energy energy The it expand. gone water, of on prices efficiency energy with going of energy attacking is it overall the might cost up. reducing that side, whatever units side, we focused origination up, have our the used, these gallons of second of And will measures our efficiency contracting side of we’re be, on the those value measures,

it’s that will Steve. increasing. Hopefully and origination is on And energy of more the certainly that sort from there is amount our fact side. work, a there’s answers you units talking – for to that So the the your savings help we’re – to the of there’s view of that question, actually customers the pursue a incentive the of that actually know an them about because beneficial

Exactly right.

mean, you’re proposition effectively, save value So saving greater. energy, is more here money, even right. you when in I – your the

– That – exactly proposition is It become right. The improves better. value much

Thank gentlemen you it. the Great. for color. thank you, appreciate yeah – I

Yeah.

Your William the next Blair. line from question of Tim from Mulrooney comes

open. now is line Your

afternoon. Good

– Good afternoon

Hi, there.

when you know exclude see And backlog for levels? California how from XXXX that Edison project on back So number was you on to the it That that the look question. expect basis? if does a project, potentially to backlog get question would backlog was excluding your now year-over-year Southern you

than the we and still we backlog. happened growth is wanted growth on year-to-date – fact the year. some watch Yeah, what’s They we’re – we the marketplace that our XX% awarded very carefully against to still a think contracted into for last that had

last think on for So top our we growth three year awarded mixed saw out, up. the a from I In turned much left for XX%. pick growth. – And years gets as the It on line our growth average three the XX%. pretty it were years’ good

Yep.

good. that’s Okay,

And we customers to as the proposal situation, pickup have And a was have quarter, that proposal is is usually quarter, that the winter out and up. is in quarter the saw activity. we did the COVID a access last we operated which trend picking even point to they as to other activity remind in And is ourselves were thing that could slowest we want not – we well we say though possibly one the continuing. But it have. is the this

a emerging because and are the – folks from seeing You’re pandemic pickup

tremendously, anywhere going And, it it’s is better. over our much, showed – up near of a bit, Yeah, that or becomes project, value part concerned had And doesn’t price better interphase energy proposition have the energy the better energy gone what costs. little is much the course, a we of is, people impact, impact it adverse coming an – us. the have for but up going even the correct. earlier, up about though It prices are has the improved and

next sense. that makes on And touched Yep, you my question. actually

can year, bit. increase expected as prop should mean, how know the your [technical about I I little me value that if a I we to just out flesh impacting this about let difficulty] think with see generally? interest think So rates you it

very basis been know basically impact I basis the a can what though would basis the able points. we’d we’ve cash rate small with could Its is energy you to points a project grew. the and updated like like of Otherwise, And – it’s afford have prices, week, use points, costs. – bit, the get a went up little that even but rates, couple so project an s this to example about far. interest positive reprice then rate we – to the XX energy do we to XX the we that energy basis, flow

I example rate mean, the anecdotal. – the energy think overall clear we locked the the and that’s in current you costs costs, know of reflective interest I example, revised grew. environment. then But based most that project energy It’s current But a calculations of the situation. a actually project rate on projected

focused we’re interest about So on It’s if energy missing the we’re right prices the for rates, really now. forest trees.

Yeah.

That’s Thank much. guys. you so Thanks, All right. great.

Thank you.

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

now line open. Your is

Thanks Hi, everyone. taking questions. the for

Hi, sure.

Hi, Eric.

storage, Hey, that the of what a know you so project. in high of league just Edison maybe in just mean, curious on interest contract SoCal the the you because different I has a of pipeline know growth big the you such one, it’s clearly or with does that terms profile meant kind put energy level,

and mix for or that more would smaller forward number this be size projects So know or in of greater we just them? curious contracts, think forward, you you maybe know about it but should know some be moving contracts we I of of mean, think the going you as you’d

That’s activity the gets considerably. not do the request a cooperatives out it various level by there, picked have and expertise, they smaller some the The of by also utilities, good up or question.

to and and capacity comes farms up to, so very term feel solar know battery And this see another it. those comfortable Now, projects competitors. have same is and not utilities on, more the we for And feel and as got the now surprised, in and and similar will I somehow, of play storage will on a love don’t love we our expertise, we where and around But to planned, us many is a XX/X. with short-term pool key similar, – storage, be means be that which they And fuels this plants, or battery wind pretty so to more you of quite that get a them contract we be look, you that we down it probably for we might we right whether and us size, will do lot as much its – that with build clean a electric about that will of this resources helped otherwise project size, like as EPC, smaller the road, on it, much, in run now, tackle say will see more more project much this it’s plans will market would different size, that project, backed from that, many have but few. EPC the other we more companies more good. them. the a renewable But execution

have three on, Some will them, know color because be ultimately, do working want to we them. of more we I we one them that of we’re any add – And, assets four to will but or you own, own they

the that’s It’s customers capacity, going and execution to how with flexibility can ability want have execute. as that’s to think the provide track that, we PPA, to customer both. an there’s to deals, either – on is they record you you, for get contract, respect stock, punch approach design/build balance our versus provide I the to our know, line, sheet that’s us is own what our know asset you contract

see backlog you the both. know we filling So, with with

you. Got

that taken just the what everyone me, And that you helpful. know some to You shortages deal industry? in last mean, that’s maybe one Okay, steps equipment forward? else’s the and you helpful? that agnostic I you fact curious is maybe that’s in how for just you’ve the that and know component terms of having something going you’re with just of And see very

to lot to advantages that the of don’t and a of captive, fact definitely that people out in of and we marketplace, has traction in. they because advantage. it No a that – some tremendous would other we brought more be other than can in technology the have Edison it’s want go flexibility much the are tie the table agnostic, project people to that’s competitive about they step one people, And we Southern Cal it. we question The

Got it. Thanks.

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

Your line is now open.

Hi. taking and my thanks Good questions. evening for

wanted your six I a doubled I ago ask George, green that of maybe project the development So to you gas size question. heard you had months group.

the people Now, is were to timeline these that base confirm added? little new true? about And experience [ph], about them talking And That’s maybe to the the resources actually a really time But for a positive you cetera? thing [that] bit projects execute that and make new the capture in et that you’re now. talk new good can gives productive when their and them seat. Group more it’s maybe

Yeah, know months. Senior and start last – add the them they And because last don’t go productive say people. added will they the I from them you And senior I color? of been will were want or – so, productive And the into they’ve months. I six more Executives month to some were any if and two all They end definitely, are all backwards. of

in legal No, And that side a are up these the and the got with familiar I of have side, think, you’ve just running. and in opportunistic. you last we’ve these the ground we, came on as the know lot you much course hit really so you month this market of a the or Craig folks development got engineering of mentioned, know store. folks And really you so finance George is and know And down. know projects

hear. That’s would to excellent. And – good excellent, I really Okay,

for maybe before – operating on one green want specifically, them. built to So developing I them, plants were financing working so and add them, so and gas in they and Yeah.

this engineers to why another not convert I that my in field that’s experts. try RNG to we them put field. And from it’s So remark,

lot there’s market. a startups flimsy of in Understood, the RNG

that So up I’m hard hear there. those some to talent know, happy steal it’s to probably of bulking you from you’re not

construction second a know SCE XX% are my construction that investors. is year, the contracting more they about than you’re percentage question typically companies projects but break know companies in of So completion typically now will revenue you have really project, company, for for I when of out the performance

monitor we basis. So this quarterly can a on

but give quarterly did on Thanks. to progression, And You you give costs going you you might could talk if cycle us little done no there. of cash us was if revenue color more then to flow about wondering extensively a you out the battery there. lot specific really little know. this you canceled project have useful be risk revenue what bit you’ve lot months, risk of in in manage storage know manage last I six would a in able bit there because a projects know how details complications been the the operating a Any to around up, this more other be market.

ahead. question, Good go Okay.

to end. the quarter-by-quarter here a cadence, through want why simply that because is we didn’t quarter specific fact complete quarterly the a go always percentage on there’s you reason basis the know on So of

have And on lost here little provide. And may you as the the get approach give equipment things in to a was we all can shift know you ranges that that sites the the give. deliveries we best activities you we So or there. approach a ultimately you and that we it the kind took thought quarter that know of discussed taking best information to might script across the you know bit you in know today

think I it we’ll that. at So leave

project, to and we pricing, involved locking is was executing the under both project, obligations taken. in in, we you suppliers SoCal dates satisfactory and you our for to followed or as And management. follow of we I otherwise, it, applied spotlight approach – accordingly. carry that’s knows because approach we’ve On the this, many we’re directly the means, risk this risk that we we delivery the think management holding That’s of the and which continue technical terms I that In through suppliers techniques and that subcontractors. to for do account know, exact and same contracts, this contingency, on on Ed their know other projects, other

That’s another on great. quarter. congrats great Hey,

much. Thank you very

you Thank much. very

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

Your line open. now is

ask one for Hey, level. first thanks to congrats look energy of you aberrations. generation, you just are going – it’s absent But taxes my want they’re guys, you guess, we that high only energy know at gone both like know I that question a just and directionally, question. my is taking intensity capital if high costs up primary the know I I level. such guess there’s short-term way

you’re of with to that context the you electrification efficiency? is trend so have that come accepting And that, the in how conversations going digitization And the terms of wondering customers, to then the up? a of I it follow-up. Is and many having have vector that know within terms relates I’m directionally fact with

Yeah, up. PPA Doran. are I beginning Because first then costs on energy to be and up that say follow customers electric to accept customer. to rates, and go agreement one going you take the that the the can rates might particular a the can The on are selling we

are up, went are realizing costs or we you going example, rates energy see say For And, solar selling course, because were can going were and $X.XX. average that of them everything rates up. But the corresponding up, they are capital up. creeping before let’s people $X.XX, at $X.XX

and they energy makes them and on beginning And prices up. a move. we to cent up going But there market. in that are are little are the bit fact them are understanding that they what XXX% So see though, a No. react, of going I the the gives where But what’s to, now, yet?

higher going feel bit I like So know you costs, was little like to right. planning with scenario opposed say solidly to going I feel of just as I a – it’s

think that geopolitical other mixed versus that they I scenario planning. they plan that of it’s There’s to and are starting for. lot scenario. inflation But the to certainly a it’s recognize uncertainty forces. it’s a need And there

and I another of decide would went large they did said, back, customer, of back, give a move we get that’s right put with years, you then years $X.XX, couple ahead. said that you can want We it say will particular what a happened here in renewal that now. we And didn’t move, [technical they I to likely update not example, us they They priced project course they out. and wow, and an now go said, the most have two was they what difficulty] but waited to take

know for Yeah, thanks. Analyst look any time your steady, you seems don’t a over moment want business But at seems rather to question, you that growth you because time, SoCal asked steal would a business, three-year I’m of the Edison. what of see from this in steady have the appropriate sure know and rather know a the contract apropos your because you you you you of look I how time of big if the And Day. of sort thunder know, at I versus this moment which very be with period you

that. you’ll I’m sure addressing be again, Here

field context side seen buying follow-up, of selling power – may I sort my Just or about focus backup in, of your of assets one kind seem to of the virtual your the the the turning the Is that if and will, not of you bring discussions be curious would assets the as-a-service may in either on know the this online? around, out on that – business, just be could like by I’m you to side in started would in having of something know of through process attractive new case customers virtualization, the that existing you if as sneak in terms is, utilities be business in generator, It something squeeze utility? out rate the for largest existing the of has or a plants having a to project generator equipment with with there. about faced there talked XX gigawatts that’s you of go energy are company the that’s that’s

I mean, buying it renewable we green plant are plant, down the ourselves, looking at for where some particular a virtual power gas plants. various road solar probably be will customers they plants power

looking see So it. into it question we about I evolving. are it, And no you think will

power that customers around they to basically develop We facilities country, plants and or of them. give have solar the will have we’ll we couple in commercial central location customers industrial

power scenario. virtual a So

can value, I the to the partner the the we And us a to approach customers. provide is kind I with they there thing associated where consistently to software with – DERs. I that we’re value mean add think parties approached number only the of economic add using markets looking relatively in of to would of by that solutions – want DERs

So that. considering course, of we’re,

on business that consults that, and Group. is in space piece utilities administration second The program Energy have the we a Applied their of certainly seeing for that an course, and software, they’re DER programs uptick that’s activity in

to Look Analyst Thanks, the Day. guys. forward

Thank you.

you. Thank

of line the from comes Gianarikas question George next Baird. from Your

line open. is now Your

Hey, guys. taking my for Thanks question.

Hey, George.

George. Hi,

a as the share a underneath to you’ve I’d disappointment. of like of signed your any little ask purchases think been momentum the – or – order? order I’m potential Biden in your the about a executive around curious But business whether seen I to there’s that Administration renewables. know could around regulatory surface, bit the any federal specifically you color of executive And lot You directive

the around activity about I on not they’re back past, see order. now interested a so we even without that. No, even more, efficiency, considerable and it plan more built executive that a associated it, pickup better doing renewables whether considerable so. and with mean, in we see resiliency mean, helped question And us but base that every have no only I energy would but

follow-up, Maybe go as a ahead. please

we that order capabilities for our opportunity. personnel It’s Basically had out, even those considerable the on pickup. the – people – to after considerable hand, other move, no of a it. executive before the It came time through a advantage uptick. takes order long-term, guys but but always increase to we question in take about some increased We

in and on sector. a been curious to you us refresh follow-up M&A. recent as there’s philosophy could some Thank whether your M&A And as know around then thoughts you. the And you maybe I’m

will done the did a only will – market in small and about a opportunity. taking Building I Smart which XX some. have and we But probably helps and we add and technologies, we but we then accretive, not Look, XX, with us expanded lot it is one start are Doran company, a that, acquisitions and XX advantage of that that us rates line we XX% don’t with have accretive XX%, around the one can but the know of top we EBITDA with looking acquisitions. the market. point at [ph] organically we win and going noted at that you which the any talk talked in that complement will you line them, [We’ll] will be I past around surprised several see

Yeah close it, I’ll just opportunistic. it’s

sense, make be make business strategy has for make clear the our sense. needs to The has of how part going to organization. we’re as know to story. to the to the story has make sense team it the management And You to Ameresco

you. Thank

question of of next Your from America. Julien comes line Bank the Dumoulin-Smith from

is line open. Your now

Hi, is this guys, Anya Julien. for stepping in

you’ve what updates expect So of my Analyst could at what first terms improve we Day? should historically? disclosures relative Specifically how in question the provided is, to

me want asking permission. you and George’s yeah – – this So I’m one take to

guidance Analyst intended we So we all did the Day, on that is along. do is Day plan today, – Analyst The more we focus to the of go XXXX inside like addressable markets, for what presenting the with a number little long-term company. analysts tackle investors bit face-to-face a and give view growth markets strategy, how to executives and than about we the actually better

start these see don’t to making about. not anticipate We That’s publishing they that it’s So day a numbers. can how folks what of tick. kind

– for into how factored that’s secondly you present follow-up, year And your what this hedged pricing of XXXX kind guidance? are R&D? then as is at a on Okay, then fair. And RNG EBITDA

hedged. So entering the year we’re right about XX%

Yes. Slightly –

meaningfully our prices conservative we’re those RINs. terms DX not determining yeah. from of guidance, away Okay, on current in market somewhat And but

Okay, you perfect. very much. Thank

Thank you, Anya.

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

line Your now open. is

for the taking question. Thanks

the asking a federal is US with about what think I the the see kind of specifically net to been on? dovetails zero Ameresco’s asked the you’re Corps White and were minutes Army already about I’m order. strategy House given one-third so work doing you’ve opportunities know little and one bit of you a you the in First few know ago, beyond with you what executive area still revenue, defense that sales. I’m going curious Marine

so surprised And It’s wouldn’t two But I it years to quantify that. to at sites have three to we will But tell if between so level. will them probably – other battery the take working energy because and to some solar very and it, doubles. on us on hand, that you, that be measures XXXX, forth. the get already couple zero, I by of net we’re it storage, hard on efficiency

they know the just base doable, amount solar land substantial where and sites colleges, they it’s many can whether the have battery and going So of because universities, we’ll every on take only to is are resiliency. said we’ll know as we further about storage all the of and base it’s right what’s you but going solar, take resiliency, excess we we the hospitals, now, the net what’s on put change. the whether wind. the a that out I And zero, climate talking not of all want before, with like And

get something to it it. the How about be I accept will accelerate. question that it’s sooner, them know kind say, it they some get it, to a no we in have on of quantify that to if recognize to and hand, several have of say to we some they So been want the early. means, the XXX% we’ve we their But they our into so because But doing And that with we backup in go market, do of market. I can as of other they them though, about want – but will, up it, capture well. we or the past. XX%, number that way are thing where that to good that contribute own And money, percentage we the will will good one much the

that. appreciate Yep,

electricity and as before developer, $XX both of is has gas no to potentially an efficiency displacing if had see been Atlantic. other in to if big if an me slice revenue. in know Even of Europe prices. you we Mcf – since began, gas brainer natural your I’m a the that prices $XX Let record the you war a never turn But from is RNG the that like record going uplift, side know standpoint seems context. you’re you’re curious contracting you – your

pickup. very, we for a for good. as it’s business, year. This There Even excellent, you are don’t up. they looking I No, traction we saw UK rearticulated, even very especially excellent a the separate But will have several to the European And much southeast as in prices had projects are going we tremendous the be and are last of And the question. we And great out. UK year, think say good that part backlog, to Europe. them in about I expand – they them cannot talk operations, an a yet. reason And can. is though energy I going the

Appreciate much. very it. you Thank

Yeah. Thanks, Pavel.

Your next question comes Gerham from from the line Chris of B.Riley.

now line Your open. is

projects in provide as for the standpoint on taking can win helpful. storage a what you be but us one necessarily you they’re the you development bidding give know my far or there pipeline you kind big that are know I pipeline, And either color of are solar SCE, looking there’s given that Energy Thanks question you guys just storage of the guys. of guys the for breakout on, the XXX know sounds Asset sense gigawatts’ you that battery the you curious know multiple with same was it size, here. not plus would you kind Hey, know could know one like standalone storage you are – know the or as at. you within any know you you megawatts

Sure.

first. piece, assets So development just to in tackle the

battery of So be got XX not hours. that’s Again to megawatts XXX megawatt And sometimes which megawatts, there, probably solar and clear, two in those standalone. of battery. there’s we’ve is about megawatts of hours XX because are

metric. cetera. proposals, important them some importantly, design/build you if of it’s in and the, project we’re a talk even know SoCal asset funnel to to of everything there’s point again measure know, in plus I goes is is that pipeline, service, small. metric, I’m working still that development when stage those that obviously stuff this the through in large And et about reticent measure. proposals that little proposal and come you talk make placed It in know with that’s and got some clear. the fours, XX% those is, you because our about a do think of in to always development bit and you where asset you know a that confidence are Some whatever before in the of you being project, don’t kind things site that’s are Like get we twos, something them the has nothing stage is we there. that’s huge, permitting them And award we

with So that we’d to I think as it’s stick important to that publishing measures. like far as point out

– if it’s George, a that know You that’s though, funnel, about talk you want the kind of of funnel. depth to I the mean big

It’s very large, backlog. it’s several development on we magnitudes what have of the

to it’s in the now screening Doran it’s gone, development. in assets all said, like the the give go have right to a several we But awarded pipeline, category. we in very EPC haven’t done specific hard Assets numbers, has development? not magnitudes than But the into larger what

of it that, stages – of these to negotiation early thing the last we’re battery. I battery discussion mentioned we I’ll projects, a ownership of as with the still in quite one bit is add there’s and Yeah, before,

in And with our know But doesn’t, us, the ownership backlog. so becomes our it if it if the then flows you sticks of then ultimately project development. battery into assets of just part it

in the working lines business same different that with two of sort technology. there’s So,

doing I’m increasing? in significantly sense of but has the Okay, you guys these is that you large what of little some Obviously average the a for that know the size a work. increasing and just some on an military know you project streetlight projects makes projects pretty the getting base know you you has that has of outlier, a been been sense. are on of now big size. And battery scope lot bit project guys the

something is well? and get far are starting as are tracking as know we a you know guys that? You Or as projects pipeline know to in lot more you small you trajectory that of the you the know awards

full in think to know, combined and microgrids, in I have and of count, range, increasing, right larger number, seven But storage measures. the The right. – strength because that It’s Overall, spectrum energy you the specific smaller more no unit project any? question I that don’t efficiency include do XX they increase are because it, getting into by a we’re plays still our of they’re projects complex battery probably and And power. projects larger. about because

these You markets you know almost in projects we of we’ve you just could – so one smaller less, just certain record are in establish $X technology. the we the know track there you sometimes, that the books take can on or some to call pilots even know where million we’ve get

of still we’re So – seeing kind we to you XX. seven know

That’s guys. Okay. Thanks helpful.

EF of next question Moore Chip comes line Your from from the Hutton.

Your line open. now is

Thanks. guys. Hi, Hi.

Chip. Hi,

the talking there will Investor regards of premature and obviously But right, but timing, to any just some sort how the those pickup level, of compare. Wanted a Day, way to visibility proposal tough too for And activity be something on there ‘XX about more think for sort of high in be of about to dynamics. might been and outlook. this you’ve follow-up

market stations and I think we the and are, it on what storage. battery the will focus so we’ll opportunities but, by more probably break charging on, down

in able now. right against achieve. our I to We where will stand extract competition. we be comment we position market is any don’t about what and giving effect. the we’ll might be think share good our marketplace we then So level, you think but from and are very But will little bit good what activity markets give I feel we can the specific And a a idea the that to that the how numbers going

there about be people executives. Again, Day. our and focusing we’re of anything into addressable qualitative guidance this just that just bit giving updates beyond at And Analyst XXXX market, the on clear won’t to Chip. guidance capabilities aspects – view like be the that any we’re before, I spoke coming a be the or a our But – to

And No just fair. can if that’s related. I supply Absolutely. in COVID one maybe chain just more sneak

million there outlook? caught Are and seen or think up the of Still in quarter. y’all I embedding $XX impact anything sort last out here you are there? so was pushed any

rather I a accelerated. the than I in Canada, – states access of pushed point had Yeah, out that the issues being revenues will the But we bit. in is these reemphasize COVID-XX, gets the business, they quarters. wherever with some in first with those know first say with our revenue the will some later see that, but it on more thing were get I fact we later they Northwestern the pushed out, typical because other quarters, we to couple but situation, want and that various same COVID facilities still, of accelerate a sometimes But of months you on the contracts, especially think quarter,

not some seen proposition losing out, business. doesn’t we’ve So but push the The value change.

the Well, All right. congrats Thanks. on you See New momentum. in York.

Thank you.

Thank you.

Webber Research. question comes of Greg Wasikowski the Your from next from line

now is open. line Your

good me Most Hey, mine for Thanks afternoon, been of answered. in. have guys. fitting

it to it labor SCE avoid around your business lines, constraints? sort of project deal, the particularly to particularly how any just there able one. talk about how the you So affect of thereof how keep bit lack I’ll each could Can or labor or to a it – constraints little it and a more in been you’ve just slippage as Thanks. relates has any

you internal labor. talk know our I the is which about will

Cal into the battery experts about as labor, it, pointed And our we I great, so he’s that project, will in to the doing and the good. RNG some experienced that and let far, we’re talent Doran out that’s great so talent as want. innovative have that day we The I storage, having Southern a projects, as the goes with immersed culture, fact got because able great, talk business, great company. especially far it, And other been Then the night. and in coming get we

know that size this we fact number yes, as Ameresco, differentiation with our perspective on you and estate, a manager, a is that then staff on compare been think like are and design/build has I’ll is right. talked fact to something piece just us the about George much that’s labor building a multiple of it issues is we we the of it, need, if Ed, infrastructure, what and about labor So infrastructure are intensive just a to the that requirements the of contract have projects. say, doesn’t construction real we’ve lot we subcontractors we – retain A as lot like think right, labor you SoCal people are a of cost our because a as others. that building, than attract as that know built lost project I has the And the laborers site project you you of be that with design/build of people from building think a from a able not require, because in about requires for that energy know, sometimes faced smaller that as on actually energy because that require industry, the broader force that site of dollar

fact, In for It’s to answer best the me probably it’s question. a fraction. that way

Yeah, Thanks that’s for helpful. All right. it.

question the Piper next comes Harrison from Your Kashy of from Sandler. line

Your line is now open.

for afternoon taking Good questions. thanks and much so the

Sure.

how maybe of of opportunities for know you was basis? long-term watt the know So us for to portfolio if to think think think I wondering the and know about development and about these most the category, appropriate on a via that to wondering you project assets had you capital how be long-term a indicated finally about was debt, CapEx but maybe you energy EBITDA just And on well. under Asset – know framework maybe you if that to ratio to you respect had then per more a would funded per construction, project you with as the by how on Energy I watt could refresh to

Yeah I let Yeah. Doran.

So, they – previous haven’t changed but much from numbers, the

kind To start figures. of CapEx with the

dollars RNG average battery also pricing of of watt, $X battery a is obviously watt and similar solar themselves. solar a kind to $X $X somewhere watt couple a know So, between around watt, you a

you there, ups to there’s indication. pricing So just general you know downs consider have battery but that’s of and that a

$X.X our for it’s now, years. billion four across five five that’s and development of development CapEx. you like years, cycle approximately asset That years four metric metric plus years asset So four talking entire between you’re maybe probably know updated in that’s in about

about to So think cadence. that’s the the way

on sort and XX% that debt. think I of we’re XX% between average

long-term. over it XX% about to XX% equity think So, as the

those nothing’s a – that’s giving our – the while. been sense same that’s for the So – that are those perspective, in from – numbers really changed we’ve are

contribution. In terms EBITDA of

range So about in solar are and the $XXX,XXX similar, per batteries batteries. kind year. EBITDA margin talking EBITDA for and to That’s of megawatt $XXX,XXX per solar of XX% probably

side, moving of On That’s late, which, XX% the course, the of higher the value to And, brown megawatt $X.X so margin. value attributes of between that, for megawatt, CapEx, probably as there’s a of around. matches of but something EBITDA RNG million you gas a the it’s higher moving reason per per wide know with range $XXX,XXX obviously around.

So you’re talking about Those figures $X.X kind the revenue million are to per per megawatt. million round of of $X megawatt.

TAM. you. That’s my super remaining Thank questions helpful. – are All question on

for to I’ll look the information. Thank that So you. of Analyst Day more get

further no at time. for are question There Thank participating. you This concludes conference today’s this call.

disconnect. You may now