fwp
Filed Pursuant to Rule 433
Issuer Free Writing Prospectus dated August 22, 2010
Relating to Prospectus dated July 21, 2010
Registration No. 333-165821
This free writing prospectus consists of a press release issued by Ameresco, Inc. (the “Company”) on August 12, 2010 and relates only to the securities described in, and should be read together with, the prospectus dated July 21, 2010 (the “Prospectus”) contained in the Registration Statement on Form S-1 (Registration No. 333-165821) originally filed by the Company on March 31, 2010. To review a filed copy of the Prospectus, please visit http://www.sec.gov/Archives/edgar/data/1488139/000095012310067046/b79273b4e424b4.htm.
     
(AMERESCO LOGO)
  FOR IMMEDIATE RELEASE
         
Contact:
  Media Relations:   CarolAnn Hibbard, (508) 661-2264, news@ameresco.com
 
  Investor Relations:   Andrew Spence, (508) 661-2212, ir@ameresco.com
Ameresco Reports Second Quarter 2010 Financial Results
Second Quarter 2010 Financial Highlights
    Second quarter revenues increased 58% year-over-year to $141.4 million
 
    Second quarter net income increased 348% year-over-year to $7.7 million
 
    Net income per diluted share was $0.21 in the second quarter of 2010 compared to $0.05 per diluted share in the second quarter of 2009
 
    Provides revenues and earnings guidance for full-year 2010
FRAMINGHAM, MA — August 12, 2010 — Ameresco, Inc. (NYSE:AMRC) a leading provider of comprehensive energy solutions, today announced financial results for the quarter ended June 30, 2010. Ameresco had revenues of $141.4 million in the second quarter of 2010, compared to $89.5 million in the second quarter of 2009, an increase of 58%. Net income for the second quarter of 2010 was $7.7 million, compared to $1.7 million in second quarter of 2009, an increase of 348%. Net income per diluted share was $0.21 in the second quarter of 2010, compared to $0.05 per diluted share in the same quarter of 2009.
“Ameresco achieved strong growth in the second quarter as we continued to successfully implement our 2010 business plan,” said George Sakellaris, president and chief executive officer of Ameresco. “In the second quarter, we continued to execute on our strategy of signing more projects across regions, including Massachusetts, Maryland and California, in our energy efficiency business. In addition, we signed the Grand Erie District School Board project which represents our largest solar project to-date in Canada in our renewable energy business. With strong operating results, continued market expansion, and the capital provided from our recent IPO, we believe that Ameresco is well positioned to continue to deliver top-quality customer-driven solutions, while creating value for our shareholders.”
With greater market demand for energy solutions, Ameresco’s second quarter results were driven by stronger overall revenues, improved gross profit margins particularly from renewable energy projects, and by increased operating leverage.
For the six months ended June 30, 2010, Ameresco reported total revenues of $247.0 million, compared to $162.8 million for the same period in 2009, an increase of 52%. Net income for the first six months of 2010 was $9.0 million, or $0.24 per diluted share, compared with $2.1 million,

 


 

or $0.06 per diluted share for the first six months of 2009. Net income for the period increased 320%.
Operating Highlights
    EBITDA for the second quarter of 2010 increased by 278% over the second quarter of 2009 to $14.6 million.
 
    EBITDA for the first six months of 2010 increased 216% over the first six months of 2009 to $19.7 million.
 
    Operating cash flows were $2.5 million for the second quarter of 2010.
 
    Total backlog of contracted, and awarded but not yet contracted, projects remains strong at $1.1 billion.
Some Key Project Highlights for Q2 2010
    City of Lowell, MA — Ameresco signed a 20-year energy savings performance contract for $21.1 million which includes 28 energy conservation measures to be implemented city wide.
 
    NASA Goddard Space Flight Center, MD — Ameresco signed a $4.5 million, 11 year, energy savings performance contract with NASA’s Goddard Space Flight Center, Maryland, where Ameresco will comprehensively retro-commission several buildings and implement site-wide energy efficient retrofits.
 
    San Francisco Housing Authority, CA — Ameresco signed an $11.7 million contract with the SFHA covering three developments and 455 units of housing. This contract is funded with the U.S. Department of Housing and Urban Development Capital Fund Recovery Competition Grants as part of the American Recovery and Reinvestment Act stimulus funding that HUD received.
 
    Grand Erie District School Board, Ontario — This project, the company’s largest solar project to-date, involves 22 schools in Canada. Ameresco will install 3.2 MW of solar rooftop PV under the OPA standard offer program.
Outlook
Ameresco expects that for the year ending December 31, 2010, it will earn total revenues in the range of $575 million to $585 million, EBITDA will be in the range of $52 million to $54 million, and net income will be in the range of $26.5 million to $27.2 million. The company also expects that net income per diluted share for 2010 will be in the range of $0.62 to $0.65.
Webcast Reminder
Ameresco will hold its earnings conference call today, August 12, at 10:30 a.m. Eastern Time with president and CEO, George Sakellaris, and vice president and chief financial officer, Andrew Spence, to discuss details regarding the company’s second quarter 2010 results, business outlook

 


 

and strategy. Participants may access it by dialing domestically (888) 679-8034 or internationally (617) 213-4847. The passcode is 26427295. Those who wish to listen only to the conference call webcast may visit the “Investor Relations” section of the Company’s website at www.ameresco.com. Participants are advised to dial-in at least ten minutes prior to the call to register.
Pre-Registration for the call is available at: https://www.theconferencingservice.com/prereg/key.process?key=PYPFH9J34. Pre-registrants will be issued a pin number to use when dialing into the live call which will provide quick access to the conference by bypassing the operator upon connection.
The webcast will be available on the Company’s website shortly after the call.
Use of Non-GAAP Financial Measures
This press release and the accompanying tables reflect EBITDA, which is a non-GAAP financial measure. For a description of this non-GAAP financial measure, including the reasons management uses this measure and a reconciliation of EBITDA to operating income, the most directly comparable financial measure prepared in accordance with GAAP, please see the section of the accompanying tables titled “Non-GAAP Financial Measures” in Exhibit A.
About Ameresco, Inc.
Ameresco, Inc. was incorporated in Delaware in April 2000 and is a leading independent provider of comprehensive energy efficiency solutions for facilities throughout North America. Ameresco’s solutions include upgrades to a facility’s energy infrastructure, and the development, construction, and operation of renewable energy plants. With corporate headquarters located in Framingham, MA, Ameresco has 54 offices in 29 states and four Canadian provinces. For more information, visit www.ameresco.com.
Safe Harbor Statement
Any statements in this press release about future expectations, plans and prospects for Ameresco, Inc., including statements about backlog, estimated future revenues and projects, as well as other statements containing the words “believes,” “anticipates,” “plans,” “expects,” “will” and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including demand for our energy efficiency and renewable energy solutions; our ability to arrange financing for our projects; changes in federal, state and local government policies and programs related to energy efficiency and renewable energy; the timing of work we do on projects where we recognize revenue on a percentage of completion basis; seasonality in construction and in demand for our products and services; a customer’s decision to delay our work on, or other risks involved with, a particular project; availability and costs of labor and equipment the addition of new customers or the loss of existing customers; and other factors discussed in Ameresco’s final prospectus related to its initial public offering, filed with the U.S. Securities and Exchange Commission on July 22, 2010, as well as in its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, which will be filed with the SEC. In addition, the forward-looking statements included in this press release represent Ameresco’s views as of the date of this press release. Ameresco anticipates that subsequent events and developments will cause its views to change. However, while Ameresco may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Ameresco’s views as of any date subsequent to the date of this press release.
A registration statement relating to Ameresco’s Class A common stock has been filed with, and declared effective by, the Securities and Exchange Commission. The offering of these securities may be made only by means of a prospectus. A copy of the final prospectus relating to the offering may be obtained from BofA Merrill Lynch at 4 World Financial Center, New York, NY 10080, Attn: Prospectus Department, or by emailing dg.prospectus_requests@baml.com. It may also be obtained from the Securities and Exchange Commission website at http://www.sec.gov/Archives/edgar/data/1488139/000095012310067046/b79273b4e424b4.htm. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

 


 

AMERESCO, INC.
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2009 AND JUNE 30, 2010
                 
    2009     2010  
            (Unaudited)  
ASSETS
Current assets:
               
Cash and cash equivalents
  $ 47,927,540     $ 21,134,396  
Restricted cash
    9,249,885       12,678,202  
Accounts receivable, net
    61,279,515       61,796,173  
Accounts receivable retainage
    9,242,288       11,467,635  
Costs and estimated earnings in excess of billings
    14,009,076       21,694,313  
Inventory, net
    4,237,909       5,332,967  
Prepaid expenses and other current assets
    8,077,761       11,748,800  
Deferred income taxes
    9,279,473       10,071,666  
Project development costs
    8,468,974       8,386,250  
 
           
Total current assets
    171,772,421       164,310,402  
 
           
Federal ESPC receivable financing
    51,397,347       110,087,030  
Property and equipment, net
    4,373,256       4,204,292  
Project assets, net
    117,637,990       126,439,662  
Deferred financing fees, net
    3,582,560       4,311,988  
Goodwill
    16,132,429       16,132,429  
Other assets
    10,648,605       8,627,293  
 
           
 
    203,772,187       269,802,694  
 
           
 
  $ 375,544,608     $ 434,113,096  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
               
Current portion of long-term debt
  $ 8,093,016     $ 9,304,492  
Accounts payable
    75,578,378       64,795,981  
Accrued expenses
    18,362,674       9,815,128  
Billings in excess of cost and estimated earnings
    28,166,364       31,737,557  
Incomes taxes payable
    2,129,529       3,705,988  
 
           
Total current liabilities
    132,329,961       119,359,146  
 
           
Long-term debt, less current portion
    102,807,203       163,411,373  
Subordinated debt
    2,998,750       2,998,750  
Deferred income taxes
    11,901,645       11,901,645  
Deferred grant income
    4,158,508       4,049,541  
Other liabilities
    18,578,754       21,628,116  
 
           
 
    140,444,860       203,989,425  
 
           
Stockholders’ equity:
               
Series A convertible preferred stock, $0.0001 par value, 3,500,000 shares authorized, 3,210,000 shares issued and outstanding
    321       321  
Common stock, $0.0001 par value, 60,000,000 shares authorized, 17,998,168 shares issued and 13,282,284 outstanding at 12/31/2009, 19,044,060 shares issued and 14,210,776 outstanding at 6/30/2010
    1,800       1,904  
Additional paid-in capital
    10,466,312       11,986,225  
Retained earnings
    97,882,985       106,868,301  
Accumulated other comprehensive income
    2,831,970       1,090,345  
Less — treasury stock, at cost, 4,715,884 shares and 4,833,284 shares, respectively
    (8,413,601 )     (9,182,571 )
 
           
Total stockholders’ equity
    102,769,787       110,764,525  
 
           
 
               
Total liabilities and stockholders’ equity
  $ 375,544,608     $ 434,113,096  
 
           

 


 

AMERESCO, INC.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED JUNE 30, 2009 AND 2010
                 
    Three Months Ended June 30,  
    2009     2010  
    (Unaudited)  
Revenue:
               
Energy efficiency revenue
  $ 77,258,254     $ 100,827,659  
Renewable energy revenue
    12,199,224       40,526,848  
 
           
 
    89,457,478       141,354,507  
 
           
Direct expenses:
               
Energy efficiency expenses
    64,100,331       83,064,955  
Renewable energy expenses
    10,011,218       32,135,716  
 
           
 
    74,111,549       115,200,671  
 
           
Gross Profit
    15,345,929       26,153,836  
 
           
Operating expenses:
               
Salaries and benefits
    5,387,395       5,327,713  
Project development costs
    2,857,289       2,047,505  
General, administrative and other
    5,331,328       6,765,107  
 
           
 
    13,576,012       14,140,325  
 
           
Operating income
    1,769,917       12,013,511  
 
           
Other income (expense), net
    612,798       (1,216,698 )
 
           
Income before provision for income taxes
    2,382,715       10,796,813  
Income tax provision
    662,266       3,089,175  
 
           
Net income
    1,720,449       7,707,638  
 
           
Other comprehensive income (loss):
               
Unrealized loss from interest rate hedge, net of tax
          (1,231,352 )
Foreign currency translation adjustment
    402,628       (1,183,944 )
 
           
Comprehensive income:
  $ 2,123,077     $ 5,292,342  
 
           
Net income per share attributable to common shareholders:
               
Basic
  $ 0.18     $ 0.56  
Diluted
  $ 0.05     $ 0.21  
Weighted average common shares outstanding:
               
Basic
    9,549,427       13,742,472  
Diluted
    34,926,267       38,412,419  
 
               
Non-GAAP Financials Measures
               
Other non-GAAP Disclosures
               
Gross Margins
               
Energy efficiency revenue
    17.0 %     17.6 %
Renewable energy revenue
    17.9 %     20.7 %
 
           
Total
    17.2 %     18.5 %
 
               
Operating expenses as a percent of revenue
    15.2 %     10.0 %
 
               
Earnings before interest, taxes, depreciation and amortization (EBITDA)
               
Operating income
  $ 1,769,917     $ 12,013,511  
Depreciation and impairment
    1,479,307       1,919,581  
Stock-based compensation
    616,386       668,065  
 
           
EBITDA
  $ 3,865,610     $ 14,601,157  
 
           
EBITDA margin
    4.3 %     10.3 %
 
               
Construction backlog
               
Awarded
  $ 711,026,718     $ 464,968,041  
 
               
Fully-contracted
    457,394,099       668,106,767  
 
           
 
               
Total constuction backlog
  $ 1,168,420,817     $ 1,133,074,808  
 
           
 
Note:   Awarded represents estimated future revenues from projects that have been awarded, though the contracts have not yet been signed.

 


 

AMERESCO, INC.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 2009 AND 2010
                 
    Six Months Ended June 30,  
    2009     2010  
    (Unaudited)  
Revenue:
               
Energy efficiency revenue
  $ 134,486,311     $ 175,715,228  
Renewable energy revenue
    28,358,248       71,267,865  
 
           
 
    162,844,559       246,983,093  
 
           
Direct expenses:
               
Energy efficiency expenses
    110,870,599       145,589,102  
Renewable energy expenses
    22,935,046       56,841,126  
 
           
 
    133,805,645       202,430,228  
 
           
Gross Profit
    29,038,914       44,552,865  
 
           
Operating expenses:
               
Salaries and benefits
    11,453,135       13,484,742  
Project development costs
    5,594,996       5,176,942  
General, administrative and other
    9,553,489       11,315,045  
 
           
 
    26,601,620       29,976,729  
 
           
Operating income
    2,437,294       14,576,136  
 
           
Other income (expense), net
    588,357       (2,072,387 )
 
           
Income before provision for income taxes
    3,025,651       12,503,749  
Income tax provision
    887,293       3,518,433  
 
           
Net income
    2,138,358       8,985,316  
 
           
Other comprehensive income (loss):
               
Unrealized loss from interest rate hedge, net of tax
          (1,551,579 )
Foreign currency translation adjustment
    (261,110 )     (190,045 )
 
           
Comprehensive income:
  $ 1,877,248     $ 7,243,692  
 
           
Net income per share attributable to common shareholders:
               
Basic
  $ 0.22     $ 0.66  
Diluted
  $ 0.06     $ 0.24  
Weighted average common shares outstanding:
               
Basic
    9,585,190       13,513,649  
Diluted
    34,962,030       38,115,517  
 
               
Non-GAAP Financial Measures
               
Other non-GAAP Disclosures
               
Gross Margins
               
Energy efficiency revenue
    17.6 %     17.1 %
Renewable energy revenue
    19.1 %     20.2 %
 
           
Total
    17.8 %     18.0 %
 
               
Operating expenses as a percent of revenue
    16.3 %     12.1 %
 
               
Earnings before interest, taxes, depreciation and amortization (EBITDA)
               
Operating income
  $ 2,437,294     $ 14,576,136  
Depreciation and impairment
    2,585,908       4,062,244  
Stock-based compensation
    1,232,986       1,107,151  
 
           
EBITDA
  $ 6,256,188     $ 19,745,531  
 
           
EBITDA margin
    3.8 %     8.0 %

 


 

AMERESCO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JUNE 30, 2009 AND 2010
                 
    Three Months Ended June 30,  
    2009     2010  
    (Unaudited)  
Cash flows from operating activities:
               
Net income
  $ 1,720,449     $ 7,707,638  
Adjustments to reconcile net income to cash provided by operating activities:
               
Depreciation of project assets
    1,249,390       1,661,726  
Depreciation of property and equipment
    229,917       257,855  
Amortization of deferred financing fees
    37,444       97,655  
Provision for bad debts
          2,111,000  
Unrealized (gain) loss on interest rate swaps
    1,306,578       2,861,794  
Stock-based compensation expense
    616,386       668,065  
Deferred income taxes
    (1,667,352 )     (2,394,601 )
Changes in operating assets and liabilities:
               
(Increase) decrease in:
               
Restricted cash draws
    5,746,160       55,536,045  
Accounts receivable
    (18,419,853 )     (13,865,733 )
Accounts receivable retainage
    2,279,034       1,007,235  
Federal ESPC receivable financing
    (6,352,109 )     (60,539,815 )
Inventory
    893,238       (551,643 )
Costs and estimated earnings in excess of billings
    (3,862,955 )     (5,096,250 )
Prepaid expenses and other current assets
    (2,373,616 )     (185,082 )
Project development costs
    (1,127,285 )     (50,222 )
Other assets
    4,714,428       821,536  
Increase (decrease) in:
               
Accounts payable and accrued expenses
    213,592       8,907,545  
Billings in excess of cost and estimated earnings
    5,752,093       4,358,402  
Other liabilities
    1,903,822       (2,163,890 )
Income taxes payable
    601,670       1,329,064  
 
           
Net cash provided by (used in) operating activities
    (6,538,969 )     2,478,324  
 
           
Cash flows from investing activities:
               
Purchases of property and equipment
    (545,590 )     (59,719 )
Purchases of project assets
    (7,440,852 )     (6,492,890 )
 
           
Net cash provided by (used in) investing activities
    (7,986,442 )     (6,552,609 )
 
           
Cash flows from financing activities:
               
Payments of financing fees
          (711,355 )
Issuance of stock
          412,866  
Repurchase of stock
          (768,970 )
Proceeds from (repayments of) senior secured credit facility
    4,746,895       6,418,897  
Proceeds from long-term debt financing
    11,628,546        
Restricted cash
    (1,052,492 )     (509,477 )
Payments on long-term debt
    (295,308 )     (3,450,145 )
 
           
Net cash provided by (used in) financing activities
    15,027,641       1,391,816  
 
           
Effect of exchange rate changes on cash
    1,423,105       (544,614 )
 
           
Net increase (decrease) in cash and cash equivalents
    1,925,335       (3,227,083 )
Cash and cash equivalents, beginning of year
    6,930,067       24,361,479  
 
           
Cash and cash equivalents, end of year
  $ 8,855,402     $ 21,134,396  
 
           

 


 

AMERESCO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2009 AND 2010
                 
    Six Months Ended June 30,  
    2009     2010  
    (Unaudited)  
Cash flows from operating activities:
               
Net income
  $ 2,138,358     $ 8,985,316  
Adjustments to reconcile net income to cash provided by operating activities:
               
Depreciation of project assets
    2,052,797       3,416,858  
Depreciation of property and equipment
    533,111       645,386  
Amortization of deferred financing fees
    102,646       168,005  
Provision for bad debts
          2,111,000  
Unrealized (gain) loss on interest rate swaps
    1,988,945       2,728,203  
Stock-based compensation expense
    1,232,986       1,107,151  
Deferred income taxes
    733,141       (792,193 )
Changes in operating assets and liabilities:
               
(Increase) decrease in:
               
Restricted cash draws
    7,934,602       55,750,984  
Accounts receivable
    (8,081,111 )     (2,933,663 )
Accounts receivable retainage
    1,522,245       (2,287,508 )
Federal ESPC receivable financing
    (8,296,695 )     (58,689,683 )
Inventory
    308,353       (1,095,058 )
Costs and estimated earnings in excess of billings
    (12,121,185 )     (7,800,862 )
Prepaid expenses and other current assets
    (1,618,440 )     (3,701,125 )
Project development costs
    (1,643,651 )     82,038  
Other assets
    6,118,743       2,021,312  
Increase (decrease) in:
               
Accounts payable and accrued expenses
    (10,120,902 )     (19,190,845 )
Billings in excess of cost and estimated earnings
    1,991,911       3,652,554  
Other liabilities
    (9,360,668 )     (1,230,357 )
Income taxes payable
    (1,607,697 )     1,595,453  
 
           
Net cash provided by (used in) operating activities
    (26,192,511 )     (15,457,034 )
 
           
Cash flows from investing activities:
               
Purchases of property and equipment
    (922,138 )     (484,095 )
Purchases of project assets
    (16,928,569 )     (12,367,371 )
 
           
Net cash provided by (used in) investing activities
    (17,850,707 )     (12,851,466 )
 
           
Cash flows from financing activities:
               
Payments of financing fees
    (70,063 )     (897,433 )
Issuance of stock
          412,866  
Repurchase of stock
    (874,948 )     (768,970 )
Proceeds from (repayments of) senior secured credit facility
    10,612,791       11,435,901  
Proceeds from long-term debt financing
    26,722,299       812,398  
Restricted cash
    (1,282,874 )     (4,819,258 )
Payments on long-term debt
    (1,448,529 )     (4,792,696 )
 
           
Net cash provided by (used in) financing activities
    33,658,676       1,382,808  
 
           
Effect of exchange rate changes on cash
    1,090,799       132,548  
 
           
Net increase (decrease) in cash and cash equivalents
    (9,293,743 )     (26,793,144 )
Cash and cash equivalents, beginning of year
    18,149,145       47,927,540  
 
           
Cash and cash equivalents, end of year
  $ 8,855,402     $ 21,134,396  
 
           

 


 

Non-GAAP Financial Measures
Ameresco defines EBITDA as operating income before depreciation and impairment expense and share-based compensation expense. EBITDA is a non-GAAP financial measure and should not be considered as an alternative to operating income or any other measure of financial performance calculated and presented in accordance with GAAP.
The Company believes EBITDA is useful to investors in evaluating its operating performance for the following reasons: EBITDA and similar non-GAAP measures are widely used by investors to measure a company’s operating performance without regard to items that can vary substantially from company to company depending upon financing and accounting methods, book values of assets, capital structures and the methods by which assets were acquired; securities analysts often use EBITDA and similar non-GAAP measures as supplemental measures to evaluate the overall operating performance of companies; and by comparing our EBITDA in different historical periods, our investors can evaluate our operating results without the additional variations of depreciation and amortization expense, and share-based compensation expense.
Ameresco’s management uses EBITDA: as a measure of operating performance, because it does not include the impact of items that management does not consider indicative of our core operating performance; for planning purposes, including the preparation of the annual operating budget; to allocate resources to enhance the financial performance of the business; to evaluate the effectiveness of Ameresco’s business strategies; and in communications with the board of directors and investors concerning Ameresco’s financial performance.
The Company understands that, although measures similar to EBITDA are frequently used by investors and securities analysts in their evaluation of companies, EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for GAAP operating income or an analysis of Ameresco’s results of operations as reported under GAAP. Some of these limitations are: EBITDA does not reflect the Company’s cash expenditures or future requirements for capital expenditures or other contractual commitments; EBITDA does not reflect changes in, or cash requirements for, Ameresco’s working capital needs; EBITDA does not reflect stock-based compensation expense; EBITDA does not reflect cash requirements for income taxes; EBITDA does not reflect net interest income (expense); although depreciation, amortization and impairment are non-cash charges, the assets being depreciated, amortized or impaired will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for these replacements; and other companies in Ameresco’s industry may calculate EBITDA differently than we do, limiting its usefulness as a comparative measure.
To properly and prudently evaluate Ameresco’s business, we encourage you to review our GAAP financial statements included above, and not to rely on any single financial measure to evaluate the business. Please refer to the above reconciliation of EBITDA to operating income, the most comparable GAAP measure.
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