Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 28, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-34811 | |
Entity Registrant Name | Ameresco, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 04-3512838 | |
Entity Address, Address Line One | 111 Speen Street | |
Entity Address, Address Line Two | Suite 410 | |
Entity Address, City or Town | Framingham | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01701 | |
City Area Code | 508 | |
Local Phone Number | 661-2200 | |
Title of 12(b) Security | Class A Common Stock, par value $0.0001 per share | |
Trading Symbol | AMRC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001488139 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 34,200,760 | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 18,000,000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Current assets: | |||
Cash and cash equivalents | [1] | $ 48,999 | $ 115,534 |
Restricted cash | [1] | 39,137 | 20,782 |
Accounts receivable, net of allowance | [1] | 123,361 | 174,009 |
Accounts receivable retainage, net | 37,803 | 38,057 | |
Costs and estimated earnings in excess of billings | [1] | 575,113 | 576,363 |
Inventory, net | 14,127 | 14,218 | |
Prepaid expenses and other current assets | [1] | 58,874 | 38,617 |
Income tax receivable | 7,497 | 7,746 | |
Project development costs, net | 16,956 | 16,025 | |
Total current assets | [1] | 921,867 | 1,001,351 |
Federal ESPC receivable | 499,250 | 509,507 | |
Property and equipment, net | [1] | 16,888 | 15,707 |
Energy assets, net | [1] | 1,417,690 | 1,181,525 |
Deferred income tax assets, net | 3,594 | 3,045 | |
Goodwill, net | 77,846 | 70,633 | |
Intangible assets, net | 8,142 | 4,693 | |
Operating lease assets | [1] | 38,833 | 38,224 |
Restricted cash, non-current portion | [1] | 13,677 | 13,572 |
Other assets | [1] | 43,223 | 38,564 |
Total assets | [1] | 3,041,010 | 2,876,821 |
Current liabilities: | |||
Current portions of long-term debt and financing lease liabilities | [1] | 332,999 | 331,479 |
Accounts payable | [1] | 290,284 | 349,126 |
Accrued expenses and other current liabilities | [1] | 81,008 | 89,166 |
Current portions of operating lease liabilities | [1] | 5,935 | 5,829 |
Billings in excess of cost and estimated earnings | 40,459 | 34,796 | |
Income taxes payable | 1,564 | 1,672 | |
Total current liabilities | [1] | 752,249 | 812,068 |
Long-term debt and financing lease liabilities, net of current portion, unamortized discount and debt issuance costs | [1] | 784,266 | 568,635 |
Federal ESPC liabilities | 464,566 | 478,497 | |
Deferred income tax liabilities, net | 7,971 | 9,181 | |
Deferred grant income | 7,319 | 7,590 | |
Long-term operating lease liabilities, net of current portion | [1] | 32,487 | 31,703 |
Other liabilities | [1] | 70,175 | 49,493 |
Commitments and contingencies (Note 10) | |||
Redeemable non-controlling interests, net | 47,994 | 46,623 | |
Stockholders’ equity: | |||
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, no shares issued and outstanding at June 30, 2023 and December 31, 2022 | 0 | 0 | |
Additional paid-in capital | 317,228 | 306,314 | |
Retained earnings | 540,964 | 533,549 | |
Accumulated other comprehensive loss, net | (2,884) | (4,051) | |
Treasury stock, at cost, 2,101,795 shares at June 30, 2023 and December 31, 2022 | (11,788) | (11,788) | |
Stockholders’ equity before non-controlling interest | 843,525 | 824,029 | |
Non-controlling interests | 30,458 | 49,002 | |
Total stockholders’ equity | 873,983 | 873,031 | |
Total liabilities, redeemable non-controlling interests and stockholders’ equity | 3,041,010 | 2,876,821 | |
Class A Common Stock | |||
Stockholders’ equity: | |||
Common stock | 3 | 3 | |
Class B Common Stock | |||
Stockholders’ equity: | |||
Common stock | $ 2 | $ 2 | |
[1]Includes restricted assets of consolidated variable interest entities (“VIEs”) at June 30, 2023 and December 31, 2022 of $275,589 and $213,913, respectively. Includes non-recourse liabilities of consolidated VIEs at June 30, 2023 and December 31, 2022 of $153,715 and $50,729, respectively. See Note 13. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Accounts receivable, allowance for credit loss, current | $ 903 | $ 911 | |
Total VIE assets | [1] | $ 3,041,010 | $ 2,876,821 |
Preferred stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 | |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 | |
Preferred stock, shares issued (in shares) | 0 | 0 | |
Preferred stock, shares outstanding (in shares) | 0 | 0 | |
Treasury stock (in shares) | 2,101,795 | 2,101,795 | |
Class A Common Stock | |||
Common stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 | |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | |
Common stock, shares issued (in shares) | 36,302,405 | 36,050,157 | |
Common stock, shares outstanding (in shares) | 34,200,610 | 33,948,362 | |
Class B Common Stock | |||
Common stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 | |
Common stock, shares authorized (in shares) | 144,000,000 | 144,000,000 | |
Common stock, shares issued (in shares) | 18,000,000 | 18,000,000 | |
Common stock, shares outstanding (in shares) | 18,000,000 | 18,000,000 | |
Variable Interest Entity, Primary Beneficiary | |||
Total VIE assets | $ 275,589 | $ 213,913 | |
Total VIE liabilities | $ 153,715 | $ 50,729 | |
[1]Includes restricted assets of consolidated variable interest entities (“VIEs”) at June 30, 2023 and December 31, 2022 of $275,589 and $213,913, respectively. Includes non-recourse liabilities of consolidated VIEs at June 30, 2023 and December 31, 2022 of $153,715 and $50,729, respectively. See Note 13. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenues | $ 327,074 | $ 577,397 | $ 598,116 | $ 1,051,399 |
Cost of revenues | 268,425 | 496,094 | 489,519 | 901,718 |
Gross profit | 58,649 | 81,303 | 108,597 | 149,681 |
Earnings from unconsolidated entities | 380 | 352 | 830 | 989 |
Selling, general and administrative expenses | 41,413 | 38,601 | 82,714 | 78,930 |
Operating income | 17,616 | 43,054 | 26,713 | 71,740 |
Other expenses, net | 9,198 | 5,249 | 17,241 | 12,330 |
Income before income taxes | 8,418 | 37,805 | 9,472 | 59,410 |
Income tax provision (benefit) | 5 | 4,932 | (498) | 7,239 |
Net income | 8,413 | 32,873 | 9,970 | 52,171 |
Net income attributable to non-controlling interests and redeemable non-controlling interests | (2,045) | (657) | (2,500) | (2,571) |
Net income attributable to common shareholders | $ 6,368 | $ 32,216 | $ 7,470 | $ 49,600 |
Net income per share attributable to common shareholders: | ||||
Basic (in usd per share) | $ 0.12 | $ 0.62 | $ 0.14 | $ 0.96 |
Diluted (in usd per share) | $ 0.12 | $ 0.61 | $ 0.14 | $ 0.93 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 52,127 | 51,818 | 52,045 | 51,781 |
Diluted (in shares) | 53,211 | 53,173 | 53,232 | 53,407 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 8,413 | $ 32,873 | $ 9,970 | $ 52,171 |
Other comprehensive income (loss): | ||||
Unrealized (loss) gain from interest rate hedges, net of tax | 820 | 1,565 | (48) | 4,276 |
Foreign currency translation adjustments | 943 | (2,030) | 1,226 | (1,963) |
Total other comprehensive income (loss) | 1,763 | (465) | 1,178 | 2,313 |
Comprehensive income | 10,176 | 32,408 | 11,148 | 54,484 |
Net income | (2,045) | (657) | (2,500) | (2,571) |
Foreign currency translation adjustments | (2) | 0 | (10) | 0 |
Comprehensive income attributable to non-controlling interests and redeemable non-controlling interests | (2,047) | (657) | (2,510) | (2,571) |
Comprehensive income attributable to common shareholders | $ 8,129 | $ 31,751 | $ 8,638 | $ 51,913 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Redeemable Non-Controlling Interests and Stockholders' Equity - USD ($) $ in Thousands | Total | Class A Common Stock | Class B Common Stock | Common Stock Class A Common Stock | Common Stock Class B Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Non-controlling Interests |
Redeemable non-controlling interests, beginning balance at Dec. 31, 2021 | $ 46,182 | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||
Distributions to redeemable non-controlling interests | (651) | |||||||||
Accretion of tax equity financing fees | 54 | |||||||||
Investment fund call option exercise | (238) | |||||||||
Net income | 2,571 | |||||||||
Redeemable non-controlling interests, ending balance at Jun. 30, 2022 | 47,918 | |||||||||
Beginning balance (in shares) at Dec. 31, 2021 | 33,716,309 | 18,000,000 | ||||||||
Treasury stock, beginning balance (in shares) at Dec. 31, 2021 | 2,101,795 | |||||||||
Beginning balance at Dec. 31, 2021 | 704,264 | $ 3 | $ 2 | $ 283,982 | $ 438,732 | $ (6,667) | $ (11,788) | $ 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Exercise of stock options (in shares) | 100,588 | |||||||||
Exercise of stock options | 1,866 | 1,866 | ||||||||
Stock-based compensation expense | 7,206 | 7,206 | ||||||||
Employee stock purchase plan (in shares) | 16,996 | |||||||||
Employee stock purchase plan | 948 | 948 | ||||||||
Unrealized gain (loss) from interest rate hedges, net | 4,276 | 4,276 | ||||||||
Foreign currency translation adjustment | (1,963) | (1,963) | ||||||||
Accretion of tax equity financing fees | (54) | (54) | ||||||||
Investment fund call option exercise | 238 | 238 | ||||||||
Contributions from non-controlling interests | 15,186 | 15,186 | ||||||||
Net income | 49,600 | 49,600 | ||||||||
Ending balance (in shares) at Jun. 30, 2022 | 33,833,893 | 18,000,000 | ||||||||
Treasury stock, ending balance (in shares) at Jun. 30, 2022 | 2,101,795 | |||||||||
Ending balance at Jun. 30, 2022 | 781,567 | $ 3 | $ 2 | 294,240 | 488,278 | (4,354) | $ (11,788) | 15,186 | ||
Redeemable non-controlling interests, beginning balance at Mar. 31, 2022 | 47,438 | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||
Distributions to redeemable non-controlling interests | (204) | |||||||||
Accretion of tax equity financing fees | 27 | |||||||||
Net income | 657 | |||||||||
Redeemable non-controlling interests, ending balance at Jun. 30, 2022 | 47,918 | |||||||||
Beginning balance (in shares) at Mar. 31, 2022 | 33,808,964 | 18,000,000 | ||||||||
Treasury stock, beginning balance (in shares) at Mar. 31, 2022 | 2,101,795 | |||||||||
Beginning balance at Mar. 31, 2022 | 736,211 | $ 3 | $ 2 | 289,459 | 456,089 | (3,889) | $ (11,788) | 6,335 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Exercise of stock options (in shares) | 7,933 | |||||||||
Exercise of stock options | 158 | 158 | ||||||||
Stock-based compensation expense | 3,675 | 3,675 | ||||||||
Employee stock purchase plan | 948 | 948 | ||||||||
Unrealized gain (loss) from interest rate hedges, net | 1,565 | 1,565 | ||||||||
Foreign currency translation adjustment | (2,030) | (2,030) | ||||||||
Accretion of tax equity financing fees | (27) | (27) | ||||||||
Contributions from non-controlling interests | 8,851 | 8,851 | ||||||||
Net income | 32,216 | 32,216 | ||||||||
Ending balance (in shares) at Jun. 30, 2022 | 33,833,893 | 18,000,000 | ||||||||
Treasury stock, ending balance (in shares) at Jun. 30, 2022 | 2,101,795 | |||||||||
Ending balance at Jun. 30, 2022 | 781,567 | $ 3 | $ 2 | 294,240 | 488,278 | (4,354) | $ (11,788) | 15,186 | ||
Redeemable non-controlling interests, beginning balance at Dec. 31, 2022 | 46,623 | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||
Distributions to redeemable non-controlling interests | (335) | |||||||||
Accretion of tax equity financing fees | 55 | |||||||||
Investment fund call option exercise | 195 | |||||||||
Net income | 1,456 | |||||||||
Redeemable non-controlling interests, ending balance at Jun. 30, 2023 | $ 47,994 | |||||||||
Beginning balance (in shares) at Dec. 31, 2022 | 33,948,362 | 18,000,000 | 33,948,362 | 18,000,000 | ||||||
Treasury stock, beginning balance (in shares) at Dec. 31, 2022 | 2,101,795 | 2,101,795 | ||||||||
Beginning balance at Dec. 31, 2022 | $ 873,031 | $ 3 | $ 2 | 306,314 | 533,549 | (4,051) | $ (11,788) | 49,002 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Exercise of stock options (in shares) | 216,600 | |||||||||
Exercise of stock options | 2,093 | 2,093 | ||||||||
Stock-based compensation expense | 7,999 | 7,999 | ||||||||
Employee stock purchase plan (in shares) | 24,833 | |||||||||
Employee stock purchase plan | 1,017 | 1,017 | ||||||||
Restricted stock units released (in shares) | 10,815 | |||||||||
Unrealized gain (loss) from interest rate hedges, net | (48) | (48) | ||||||||
Foreign currency translation adjustment | 1,226 | 1,215 | 11 | |||||||
Accretion of tax equity financing fees | (55) | (55) | ||||||||
Investment fund call option exercise | (195) | (195) | ||||||||
Contributions from non-controlling interests | 922 | 922 | ||||||||
Distributions to non-controlling interest | (20,521) | (20,521) | ||||||||
Net income | $ 8,514 | 7,470 | 1,044 | |||||||
Ending balance (in shares) at Jun. 30, 2023 | 34,200,610 | 18,000,000 | 34,200,610 | 18,000,000 | ||||||
Treasury stock, ending balance (in shares) at Jun. 30, 2023 | 2,101,795 | 2,101,795 | ||||||||
Ending balance at Jun. 30, 2023 | $ 873,983 | $ 3 | $ 2 | 317,228 | 540,964 | (2,884) | $ (11,788) | 30,458 | ||
Redeemable non-controlling interests, beginning balance at Mar. 31, 2023 | 46,700 | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||
Distributions to redeemable non-controlling interests | (157) | |||||||||
Accretion of tax equity financing fees | 28 | |||||||||
Net income | 1,423 | |||||||||
Redeemable non-controlling interests, ending balance at Jun. 30, 2023 | 47,994 | |||||||||
Beginning balance (in shares) at Mar. 31, 2023 | 34,030,362 | 18,000,000 | ||||||||
Treasury stock, beginning balance (in shares) at Mar. 31, 2023 | 2,101,795 | |||||||||
Beginning balance at Mar. 31, 2023 | 894,772 | $ 3 | $ 2 | 310,726 | 534,624 | (4,645) | $ (11,788) | 65,850 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Exercise of stock options (in shares) | 134,600 | |||||||||
Exercise of stock options | 1,523 | 1,523 | ||||||||
Stock-based compensation expense | 3,962 | 3,962 | ||||||||
Employee stock purchase plan (in shares) | 24,833 | |||||||||
Employee stock purchase plan | 1,017 | 1,017 | ||||||||
Restricted stock units released (in shares) | 10,815 | |||||||||
Unrealized gain (loss) from interest rate hedges, net | 820 | 820 | ||||||||
Foreign currency translation adjustment | 943 | 941 | 2 | |||||||
Accretion of tax equity financing fees | (28) | (28) | ||||||||
Contributions from non-controlling interests | 812 | 812 | ||||||||
Distributions to non-controlling interest | (36,828) | (36,828) | ||||||||
Net income | $ 6,990 | 6,368 | 622 | |||||||
Ending balance (in shares) at Jun. 30, 2023 | 34,200,610 | 18,000,000 | 34,200,610 | 18,000,000 | ||||||
Treasury stock, ending balance (in shares) at Jun. 30, 2023 | 2,101,795 | 2,101,795 | ||||||||
Ending balance at Jun. 30, 2023 | $ 873,983 | $ 3 | $ 2 | $ 317,228 | $ 540,964 | $ (2,884) | $ (11,788) | $ 30,458 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 9,970 | $ 52,171 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation of energy assets, net | 27,725 | 23,978 |
Depreciation of property and equipment | 1,607 | 1,404 |
Increase (decrease) in contingent consideration | 155 | (320) |
Accretion of ARO liabilities | 130 | 72 |
Amortization of debt discount and debt issuance costs | 2,364 | 2,036 |
Amortization of intangible assets | 991 | 1,020 |
Provision for bad debts | 579 | 244 |
Loss on write-off of long-lived assets | 18 | 0 |
Earnings from unconsolidated entities | (830) | (989) |
Net (gain) loss from derivatives | (261) | 555 |
Stock-based compensation expense | 7,999 | 7,206 |
Deferred income taxes, net | (3,177) | 3,606 |
Unrealized foreign exchange loss | 38 | 467 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 60,028 | (44,334) |
Accounts receivable retainage | 354 | (458) |
Federal ESPC receivable | (88,072) | (113,478) |
Inventory, net | 91 | (2,080) |
Costs and estimated earnings in excess of billings | 15,664 | (358,603) |
Prepaid expenses and other current assets | 1,312 | (1,629) |
Project development costs | (2,825) | (1,332) |
Other assets | (1,867) | (10,020) |
Accounts payable, accrued expenses and other current liabilities | (80,555) | 126,783 |
Billings in excess of cost and estimated earnings | 13,462 | 4,073 |
Other liabilities | 1,240 | 18 |
Income taxes receivable, net | 11 | 1,767 |
Cash flows from operating activities | (33,849) | (307,843) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (2,662) | (2,525) |
Capital investment in energy assets | (261,547) | (124,924) |
Capital investment in major maintenance of energy assets | (5,810) | (4,838) |
Acquisitions, net of cash received | (9,184) | 0 |
Loans to joint venture investments | (39) | 0 |
Cash flows from investing activities | (279,242) | (132,287) |
Cash flows from financing activities: | ||
Payments of debt discount and debt issuance costs | (5,074) | (2,756) |
Proceeds from exercises of options and ESPP | 3,110 | 2,814 |
(Payments on) proceeds from senior secured revolving credit facility, net | (80,000) | 120,000 |
Proceeds from long-term debt financings | 343,923 | 307,911 |
Proceeds from Federal ESPC projects | 76,699 | 121,731 |
Net proceeds from energy asset receivable financing arrangements | 8,114 | 4,651 |
Contributions from non-controlling interests | 499 | 12,919 |
Distributions to non-controlling interest | (20,521) | 0 |
Distributions to redeemable non-controlling interests, net | (338) | (561) |
Payments on long-term debt and financing leases | (61,335) | (101,035) |
Cash flows from financing activities | 265,077 | 465,674 |
Effect of exchange rate changes on cash | (61) | (1,291) |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (48,075) | 24,253 |
Cash, cash equivalents, and restricted cash, beginning of period | 149,888 | 87,054 |
Cash, cash equivalents, and restricted cash, end of period | 101,813 | 111,307 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 31,778 | 13,672 |
Cash paid for income taxes | 2,500 | 2,829 |
Non-cash Federal ESPC settlement | 91,379 | 0 |
Accrued purchases of energy assets | 80,519 | 37,683 |
Non-cash contributions from non-controlling interest | $ 422 | $ 2,039 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The accompanying condensed consolidated financial statements of Ameresco, Inc. (including its subsidiaries, the “Company,” “Ameresco,” “we,” “our,” or “us”) are unaudited, according to certain rules and regulations of the Securities and Exchange Commission, and include, in our opinion, normal recurring adjustments necessary for a fair presentation in conformity with accounting principles generally accepted in the United States (“GAAP”) of the results for the periods indicated. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of results which may be expected for the full year. The December 31, 2022 consolidated balance sheet data was derived from audited financial statements, but certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. The interim condensed consolidated financial statements and accompanying notes should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended December 31, 2022, included in our annual report on Form 10-K (“2022 Form 10-K”) filed with the Securities and Exchange Commission on February 28, 2023. Reclassification Certain prior period amounts were reclassified to conform to the presentation in the current period. Significant Risks and Uncertainties Global factors have continued to result in global supply chain disruptions, certain governmental trav el and other restrictions, and inflationary pressures. We have considered the impact of general global economic conditions on the assumptions and estimates used, which may change in response to this evolving situation. Results of future operations and liquidity could be adversely impacted by a number of factors including supply chain disruptions, varying levels of inflation, payments of outstanding receivable amounts beyond normal payment terms, workforce disruptions, and uncertain demand. As of the date of issuance of these condensed consolidated financial statements, we cannot reasonably estimate the extent to which macroeconomic conditions may impact our financial condition, liquidity, or results of operations in the foreseeable future. The ultimate impact of the pandemic and general global economic conditions on our business is highly uncertain and will depend on future developments, and such impacts could exist for an extended period of time, even after the pandemic subsides. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Our accounting policies are set forth in Note 2 to the consolidated financial statements contained in our 2022 Form 10-K . We have included certain updates to those policies below. Accounts Receivable and Allowance for Credit Losses Changes in the allowance for credit losses are as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Allowance for credit losses, beginning of period $ 971 $ 2,265 $ 911 $ 2,263 Provision for bad debts 486 7 579 244 Account write-offs and other (554) (10) (587) (245) Allowance for credit losses, end of period $ 903 $ 2,262 $ 903 $ 2,262 Accounts Receivable Factoring Ameresco’s wholly-owned subsidiary in Italy entered into factoring agreements to sell certain receivables to unrelated third-party financial institutions on a non-recourse basis. These transactions are accounted for in accordance with ASC Topic 860, Transfers and Servicing and result in a reduction in accounts receivable because the agreements transfer effective control over the receivables, and related risk, to the buyers. Our Italian subsidiary does not retain any interest in the underlying accounts receivable once sold. Trade accounts receivables balances sold are removed from the condensed consolidated balance sheets, and cash received is reflected in operating activities in the condensed consolidated statements of cash flows. Factoring fees during the three months ended June 30, 2023 were $1,252 and are included in other expense, net in the condensed consolidated statements of income. See Note 18. Other Expenses, Net. Recent Accounting Pronouncements Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04, as amended by ASU 2021-01 in January 2021, directly addressing the effects of reference rate reform on financial reporting as a results of the cessation of the publication of certain London interbank offered rate (“LIBOR”) rates beginning December 31, 2021, with complete elimination of the publication of the LIBOR rates by June 30, 2023. The guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform by virtue of referencing LIBOR or another reference rate expected to be discontinued. This guidance became effective on March 12, 2020, and then amended by ASU 2022-06 in December 2022, extending the adoption date to no later than December 31, 2024, with early adoption permitted. We adopted this guidance beginning January 1, 2023 upon entering amendments to credit agreements which introduced the secured overnight financing rate as administrated by the Federal Reserve Bank of New York to replace LIBOR as the benchmark. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements. Derivatives and Hedging In March 2022, the FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method, which expands the current single-layer method to allow multiple hedged layers of a single closed portfolio to be hedged under the method. ASU 2022-01 is effective for our fiscal year ending beginning after December 15, 2022. We adopted this accounting standard as of January 1, 2023 and the adoption did not have an impact on our condensed consolidated financial statements. Fair Value Measurement In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, which clarifies the measurement criteria for equity securities and refines the disclosure requirements for equity securities subject to contractual sale restrictions. ASU 2022-03 is effective for our fiscal year ending beginning after December 15, 2023. We are currently evaluating the impact that adopting this new accounting standard would have on our condensed consolidated financial statements. Investments - Equity Method and Joint Ventures In March 2023, the FASB issued ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, which defines consistent accounting for equity investments for the purpose of receiving income tax credits and other income tax benefits. ASU 2023-02 is effective for our fiscal year ending beginning after December 15, 2023. We are currently evaluating the impact that adopting this new accounting standard would have on our condensed consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenue Our reportable segments for the three and six months ended June 30, 2023 and 2022 were U.S. Regions, U.S. Federal, Canada, Alternative Fuels and All Other. The following table presents our revenue disaggregated by line of business and reportable segment for the three months ended June 30, 2023: U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total Project revenue $ 113,502 $ 63,904 $ 11,082 $ — $ 40,399 $ 228,887 O&M revenue 6,309 13,901 53 2,295 460 23,018 Energy assets 18,057 2,164 1,334 28,021 430 50,006 Integrated-PV — — — — 11,486 11,486 Other 1,117 50 2,726 — 9,784 13,677 Total revenues $ 138,985 $ 80,019 $ 15,195 $ 30,316 $ 62,559 $ 327,074 The following table presents our revenue disaggregated by line of business and reportable segment for the three months ended June 30, 2022: U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total Project revenue $ 378,646 $ 85,850 $ 10,160 $ — $ 14,464 $ 489,120 O&M revenue 5,457 13,365 11 2,122 95 21,050 Energy assets 12,253 2,074 1,487 27,070 39 42,923 Integrated-PV — — — — 12,267 12,267 Other 1,029 139 2,803 — 8,066 12,037 Total revenues $ 397,385 $ 101,428 $ 14,461 $ 29,192 $ 34,931 $ 577,397 The following table presents our revenue disaggregated by line of business and reportable segment for the six months ended June 30, 2023: U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total Project revenue $ 217,822 $ 109,453 $ 25,993 $ — $ 58,849 $ 412,117 O&M revenue 11,838 26,601 63 5,981 793 45,276 Energy assets 31,708 3,240 2,096 52,674 1,060 90,778 Integrated-PV — — — — 23,430 23,430 Other 1,986 281 5,454 — 18,794 26,515 Total revenues $ 263,354 $ 139,575 $ 33,606 $ 58,655 $ 102,926 $ 598,116 The following table presents our revenue disaggregated by line of business and reportable segment for the six months ended June 30, 2022: U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total Project revenue $ 677,278 $ 148,067 $ 24,111 $ — $ 33,068 $ 882,524 O&M revenue 10,537 25,662 22 4,896 186 41,303 Energy assets 22,271 3,164 2,248 53,557 111 81,351 Integrated-PV — — — — 23,623 23,623 Other 1,819 181 5,252 — 15,346 22,598 Total revenues $ 711,905 $ 177,074 $ 31,633 $ 58,453 $ 72,334 $ 1,051,399 The following table presents information related to our revenue recognized over time: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Percentage of revenue recognized over time 95% 97% 94% 97% The remainder of our revenue is for products and services transferred at a point in time, at which point revenue is recognized. We attribute revenues to customers based on the location of the customer. The following table presents information related to our revenues by geographic area : Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 United States $ 270,957 $ 548,880 $ 504,041 $ 987,271 Canada 13,566 13,025 30,800 29,013 Other 42,551 15,492 63,275 35,115 Total revenues $ 327,074 $ 577,397 $ 598,116 $ 1,051,399 The following tables provide information about receivables, contract assets and contract liabilities from contracts with customers: June 30, 2023 December 31, 2022 Accounts receivable, net $ 123,361 $ 174,009 Accounts receivable retainage, net $ 37,803 $ 38,057 Contract Assets: Costs and estimated earnings in excess of billings $ 575,113 $ 576,363 Contract Liabilities: Billings in excess of cost and estimated earnings $ 40,459 $ 34,796 Billings in excess of cost and estimated earnings, non-current (1) 15,659 7,617 Total contract liabilities $ 56,118 $ 42,413 June 30, 2022 December 31, 2021 Accounts receivable, net $ 207,990 $ 161,970 Accounts receivable retainage, net $ 43,444 $ 43,067 Contract Assets: Costs and estimated earnings in excess of billings $ 663,798 $ 306,172 Contract Liabilities: Billings in excess of cost and estimated earnings $ 39,787 $ 35,918 Billings in excess of cost and estimated earnings, non-current (1) $ 6,175 $ 6,481 Total contract liabilities $ 45,962 $ 42,399 (1) Performance obligations that are expected to be completed beyond the next twelve months and are included in other liabilities in the condensed consolidated balance sheets. The decrease in contract assets for the six months ended June 30, 2023 was primarily due to billings of $436,030 offset by revenue recognized of $413,181. Contract assets are also affected by reclassifications, primarily from contract liabilities as a result of timing of customer payments. The increase in contract liabilities was primarily driven by the receipt of advance payments from customers, and related billings, as well as reclassifications from contract assets as a result of timing of customer payments. The advance payments and reclassifications exceeded the recognition of revenue as performance obligations were satisfied. For the six months ended June 30, 2023, we recognized revenue of $73,585 and billed $80,774 to customers that had balances which were included in contract liabilities at December 31, 2022. The increase in contract assets for the six months ended June 30, 2022 was primarily due to revenue recognized of $845,211 offset by billings of $492,820. Contract assets also increased due to reclassifications, primarily from contract liabilities as a result of timing of customer payments. The increase in contract liabilities was primarily driven by the receipt of advance payments from customers, and related billings, as well as reclassifications from contract assets as a result of timing of customer payments. In addition, the advance payments and reclassifications exceeded the recognition of revenue as performance obligations were satisfied. For the six months ended June 30, 2022, we billed customers $59,453 and recognized revenue of $64,145 that was previously included in the beginning balance of contract liabilities. Performance Obligations Our remaining performance obligations (“backlog”) represent the unrecognized revenue value of our contract commitments. At June 30, 2023, we had contracted backlog of $2,328,660 of which approximately 36% is anticipated to be recognized as revenue in the next twelve months. The remaining performance obligations primarily relate to the energy efficiency and renewable energy construction projects, including long-term operations and maintenance (“O&M”) services related to these projects. The long-term services have varying initial contract terms, up to 25 years. Project Development Costs Project development costs of $3,605 and $1,771 were recognized in the condensed consolidated statements of income on projects that converted to customer contracts during the three months ended June 30, 2023 and 2022, respectively. Project development costs of $6,217 and $5,980 were recognized in the condensed consolidated statements of income on projects that converted to customer contracts during the six months ended June 30, 2023 and 2022, respectively. No impairment charges in connection with our project development costs were recorded during the three or six months ended June 30, 2023 and 2022. |
Business Acquisitions and Relat
Business Acquisitions and Related Transactions | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Acquisitions and Related Transactions | BUSINESS ACQUISITIONS AND RELATED TRANSACTIONS We account for acquisitions using the acquisition method in accordance with ASC 805, Business Combinations. The purchase price for each acquisition is allocated to the assets based on their estimated fair values at the date of acquisition. The excess purchase price over the estimated fair value of the net assets acquired, which is calculated using level 3 inputs per the fair value hierarchy as defined in Note 11, is recorded as goodwill. Intangible assets, if identified, are also recorded. See Note 5 for additional information. On February 24, 2023, we signed a definitive purchase and sale agreement to acquire Enerqos Energy Solutions S.r.l. (“Enerqos”), a renewable energy and energy efficiency company headquartered in Milan, Italy. The acquisition closed on March 30, 2023 and the total purchase consideration was $13,445, of which $9,535 has been paid. There is no contingent consideration related to this acquisition. Cash acquired was $353, debt assumed was $3,951, and a deferred tax liability, net of $931 was recorded. The transaction costs, pro-forma effects of this acquisition on our operations, and contribution to revenue and net income the three and six months ended June 30, 2023 were not material. The estimated goodwill of $6,855 from the Enerqos acquisition consists largely of expected benefits, including the combined entities experience and the acquired workforce. This goodwill is not deductible for income tax purposes. The estimated fair value of tangible and intangible assets acquired and liabilities assumed are based on management's estimates and assumptions that are preliminary and subject to adjustments. Any measurement period adjustments made within one year from acquisition date, are recorded as adjustments to goodwill. Any adjustments made beyond the measurement period will be included in our condensed consolidated statements of income. The results of the acquisition since the date of the acquisition have been included in our operations as presented in the accompanying condensed consolidated statements of income, condensed consolidated statements of comprehensive income and condensed consolidated statements of cash flows. We did not complete any acquisitions during the year ended December 31, 2022. A summary of the cumulative consideration paid and allocation of the purchase price for the Enerqos acquisition are presented in the table below: March 30, 2023 Cash and cash equivalents $ 190 Accounts receivable 6,230 Costs and estimated earnings in excess of billings 8,985 Prepaid expenses and other current assets 16,504 Project development costs 5,140 Property and equipment and energy assets 1,234 Goodwill 6,855 Intangible assets 4,438 Long-term restricted cash 163 Accounts payable (15,480) Accrued expenses and other current liabilities (4,510) Current portions of long-term debt (15,165) Deferred income tax liabilities, net (931) Other liabilities (208) Purchase price $ 13,445 Purchase price, net of cash acquired $ 13,092 Long-term debt assumed, net of current portions $ 3,951 Total fair value of consideration $ 13,445 Cash paid $ 9,535 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | GOODWILL AND INTANGIBLE ASSETS, NET The changes in the carrying value of goodwill balances by reportable segment were as follows: U.S. Regions U.S. Federal Canada Alternative Fuels Other Total Carrying Value of Goodwill Balance, December 31, 2022 $ 39,593 $ 3,981 $ 3,236 $ — $ 23,823 $ 70,633 Goodwill acquired during the year — — — 6,855 6,855 Currency effects — — 74 — 284 358 Balance, June 30, 2023 $ 39,593 $ 3,981 $ 3,310 $ — $ 30,962 $ 77,846 Definite-lived intangible assets, net consisted of the following: As of June 30, 2023 As of December 31, 2022 Gross carrying amount $ 37,050 32,277 Less - accumulated amortization (28,908) (27,584) Intangible assets, net $ 8,142 $ 4,693 The table below sets forth amortization expense: Three Months Ended June 30, Six Months Ended June 30, Asset type Location 2023 2022 2023 2022 Customer contracts Cost of revenues $ — $ 137 $ — $ 321 All other intangible assets Selling, general and administrative expenses 689 305 991 699 Total amortization expense $ 689 $ 442 $ 991 $ 1,020 |
Energy Assets, Net
Energy Assets, Net | 6 Months Ended |
Jun. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Energy Assets, Net | ENERGY ASSETS, NET Energy assets, net consisted of the following: June 30, 2023 December 31, 2022 Energy assets (1) $ 1,758,599 $ 1,493,913 Less - accumulated depreciation and amortization (340,909) (312,388) Energy assets, net $ 1,417,690 $ 1,181,525 (1) Includes financing lease assets (see Note 7), capitalized interest and asset retirement obligations (“ARO”) assets (see tables below). The following table sets forth our depreciation and amortization expense on energy assets, net of deferred grant amortization: Three Months Ended June 30, Six Months Ended June 30, Location 2023 2022 2023 2022 Cost of revenues (2) $ 14,384 $ 12,172 $ 27,725 $ 23,978 (2) Includes depreciation and amortization on financing lease assets (see Note 7). The following table presents the interest costs relating to construction financing during the period of construction, which were capitalized as part of energy assets, net: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Capitalized interest $ 9,642 $ 2,064 $ 16,018 $ 3,908 The following tables sets forth information related to our ARO assets and ARO liabilities: Location June 30, 2023 December 31, 2022 ARO assets, net Energy assets, net $ 3,559 $ 2,359 ARO liabilities, non-current Other liabilities $ 4,487 $ 3,052 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Depreciation expense of ARO assets $ 53 $ 36 $ 108 $ 73 Accretion expense of ARO liabilities $ 64 $ 36 $ 130 $ 72 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | LEASES The table below sets forth supplemental condensed consolidated balance sheet information related to our leases: June 30, 2023 December 31, 2022 Operating Leases: Operating lease assets $ 38,833 $ 38,224 Current portions of operating lease liabilities $ 5,935 $ 5,829 Long-term portions of operating lease liabilities 32,487 31,703 Total operating lease liabilities $ 38,422 $ 37,532 Weighted-average remaining lease term 13 years 13 years Weighted-average discount rate 6.1 % 6.0 % Financing Leases: Energy assets $ 28,314 $ 29,365 Current portions of financing lease liabilities $ 1,631 $ 1,992 Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs 13,504 14,068 Total financing lease liabilities $ 15,135 $ 16,060 Weighted-average remaining lease term 14 years 14 years Weighted-average discount rate 12.1 % 12.1 % The costs related to our leases were as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Operating Leases: Operating lease costs $ 2,316 $ 2,063 $ 4,436 $ 4,354 Financing Leases: Amortization expense 525 532 1,051 887 Interest on lease liabilities 433 536 877 1,095 Total lease costs $ 3,274 $ 3,131 $ 6,364 $ 6,336 Supplemental cash flow information related to our leases was as follows: Six Months Ended June 30, 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 3,792 $ 3,814 Right-of-use assets (“ROU”) obtained in exchange for new operating lease liabilities $ 3,486 $ 1,712 The table below sets forth our estimated minimum future lease obligations under our leases: Operating Leases Financing Leases Year ended December 31, 2023 $ 4,344 $ 1,832 2024 7,475 2,565 2025 6,187 2,213 2026 3,990 2,054 2027 3,072 1,922 Thereafter 31,317 17,891 Total minimum lease payments 56,385 28,477 Less: interest 17,963 13,342 Present value of lease liabilities $ 38,422 $ 15,135 We have a future lease commitment for a ground lease which does not yet meet the criteria for recording a ROU asset or ROU liability. The net present value of this commitment totals $10,500 as of June 30, 2023 and relates to lease payments to be made over a 20-year period. We are in process of modifying the terms of this agreement such that the criteria to record a ROU asset and ROU liability may not be met. August 2018 Master Sale-leaseback We enter into amendments to our August 2018 master lease and participation agreement from to time to time, which may extend the maturity date, increase the availability, or modify other covenants. We sold and leased back four energy assets for $80,384 in cash proceeds under this facility during the six months ended June 30, 2023. As of June 30, 2023, a majority of the total commitment of $350,000 remained available under this lending commitment. Net gains from amortization expense recognized in cost of revenues relating to deferred gains and losses in connection with our sale-leaseback agreements were $57 and $114 for the three and six months ended June 30, 2023 and 2022. December 2020 Master Sale-leaseback We enter into amendments to our December 2020 master lease and participation agreement from to time to time, which may extend the maturity date, increase the availability, or modify other covenants. |
Leases | LEASES The table below sets forth supplemental condensed consolidated balance sheet information related to our leases: June 30, 2023 December 31, 2022 Operating Leases: Operating lease assets $ 38,833 $ 38,224 Current portions of operating lease liabilities $ 5,935 $ 5,829 Long-term portions of operating lease liabilities 32,487 31,703 Total operating lease liabilities $ 38,422 $ 37,532 Weighted-average remaining lease term 13 years 13 years Weighted-average discount rate 6.1 % 6.0 % Financing Leases: Energy assets $ 28,314 $ 29,365 Current portions of financing lease liabilities $ 1,631 $ 1,992 Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs 13,504 14,068 Total financing lease liabilities $ 15,135 $ 16,060 Weighted-average remaining lease term 14 years 14 years Weighted-average discount rate 12.1 % 12.1 % The costs related to our leases were as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Operating Leases: Operating lease costs $ 2,316 $ 2,063 $ 4,436 $ 4,354 Financing Leases: Amortization expense 525 532 1,051 887 Interest on lease liabilities 433 536 877 1,095 Total lease costs $ 3,274 $ 3,131 $ 6,364 $ 6,336 Supplemental cash flow information related to our leases was as follows: Six Months Ended June 30, 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 3,792 $ 3,814 Right-of-use assets (“ROU”) obtained in exchange for new operating lease liabilities $ 3,486 $ 1,712 The table below sets forth our estimated minimum future lease obligations under our leases: Operating Leases Financing Leases Year ended December 31, 2023 $ 4,344 $ 1,832 2024 7,475 2,565 2025 6,187 2,213 2026 3,990 2,054 2027 3,072 1,922 Thereafter 31,317 17,891 Total minimum lease payments 56,385 28,477 Less: interest 17,963 13,342 Present value of lease liabilities $ 38,422 $ 15,135 We have a future lease commitment for a ground lease which does not yet meet the criteria for recording a ROU asset or ROU liability. The net present value of this commitment totals $10,500 as of June 30, 2023 and relates to lease payments to be made over a 20-year period. We are in process of modifying the terms of this agreement such that the criteria to record a ROU asset and ROU liability may not be met. August 2018 Master Sale-leaseback We enter into amendments to our August 2018 master lease and participation agreement from to time to time, which may extend the maturity date, increase the availability, or modify other covenants. We sold and leased back four energy assets for $80,384 in cash proceeds under this facility during the six months ended June 30, 2023. As of June 30, 2023, a majority of the total commitment of $350,000 remained available under this lending commitment. Net gains from amortization expense recognized in cost of revenues relating to deferred gains and losses in connection with our sale-leaseback agreements were $57 and $114 for the three and six months ended June 30, 2023 and 2022. December 2020 Master Sale-leaseback We enter into amendments to our December 2020 master lease and participation agreement from to time to time, which may extend the maturity date, increase the availability, or modify other covenants. |
Leases | LEASES The table below sets forth supplemental condensed consolidated balance sheet information related to our leases: June 30, 2023 December 31, 2022 Operating Leases: Operating lease assets $ 38,833 $ 38,224 Current portions of operating lease liabilities $ 5,935 $ 5,829 Long-term portions of operating lease liabilities 32,487 31,703 Total operating lease liabilities $ 38,422 $ 37,532 Weighted-average remaining lease term 13 years 13 years Weighted-average discount rate 6.1 % 6.0 % Financing Leases: Energy assets $ 28,314 $ 29,365 Current portions of financing lease liabilities $ 1,631 $ 1,992 Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs 13,504 14,068 Total financing lease liabilities $ 15,135 $ 16,060 Weighted-average remaining lease term 14 years 14 years Weighted-average discount rate 12.1 % 12.1 % The costs related to our leases were as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Operating Leases: Operating lease costs $ 2,316 $ 2,063 $ 4,436 $ 4,354 Financing Leases: Amortization expense 525 532 1,051 887 Interest on lease liabilities 433 536 877 1,095 Total lease costs $ 3,274 $ 3,131 $ 6,364 $ 6,336 Supplemental cash flow information related to our leases was as follows: Six Months Ended June 30, 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 3,792 $ 3,814 Right-of-use assets (“ROU”) obtained in exchange for new operating lease liabilities $ 3,486 $ 1,712 The table below sets forth our estimated minimum future lease obligations under our leases: Operating Leases Financing Leases Year ended December 31, 2023 $ 4,344 $ 1,832 2024 7,475 2,565 2025 6,187 2,213 2026 3,990 2,054 2027 3,072 1,922 Thereafter 31,317 17,891 Total minimum lease payments 56,385 28,477 Less: interest 17,963 13,342 Present value of lease liabilities $ 38,422 $ 15,135 We have a future lease commitment for a ground lease which does not yet meet the criteria for recording a ROU asset or ROU liability. The net present value of this commitment totals $10,500 as of June 30, 2023 and relates to lease payments to be made over a 20-year period. We are in process of modifying the terms of this agreement such that the criteria to record a ROU asset and ROU liability may not be met. August 2018 Master Sale-leaseback We enter into amendments to our August 2018 master lease and participation agreement from to time to time, which may extend the maturity date, increase the availability, or modify other covenants. We sold and leased back four energy assets for $80,384 in cash proceeds under this facility during the six months ended June 30, 2023. As of June 30, 2023, a majority of the total commitment of $350,000 remained available under this lending commitment. Net gains from amortization expense recognized in cost of revenues relating to deferred gains and losses in connection with our sale-leaseback agreements were $57 and $114 for the three and six months ended June 30, 2023 and 2022. December 2020 Master Sale-leaseback We enter into amendments to our December 2020 master lease and participation agreement from to time to time, which may extend the maturity date, increase the availability, or modify other covenants. |
Debt and Financing Lease Liabil
Debt and Financing Lease Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt and Financing Lease Liabilities | DEBT AND FINANCING LEASE LIABILITIES Our debt and financing lease liabilities are comprised of the following: June 30, 2023 December 31, 2022 Senior secured revolving credit facility (1) $ 102,900 $ 182,900 Senior secured term loans 295,000 295,000 Non-recourse construction revolvers (4) 127,457 45,391 Non-recourse term loans (4) 377,468 255,403 Non-recourse long-term financing facilities (2) 201,836 120,923 Non-recourse financing lease liabilities (3) 15,135 16,060 Non-recourse project financing (5) 18,680 — Total debt and financing lease liabilities 1,138,476 915,677 Less: current maturities 332,999 331,479 Less: unamortized discount and debt issuance costs 21,211 15,563 Long-term debt and financing lease liabilities, net of current portion, unamortized discount and debt issuance costs $ 784,266 $ 568,635 (1) At June 30, 2023, funds of $20,710 were available for borrowing under this facility. (2) These facilities are accounted for as failed sale leasebacks and are classified as long-term financing facilities. See Note 7 for additional disclosures. (3) Financing lease liabilities are sale-leaseback arrangements under previous guidance. See Note 7 for additional disclosures. (4) Most of these agreements are now using the Secured Overnight Financing Rate (“SOFR”) as the primary reference rate used to calculate interest. (5) Debt acquired in connection with the acquisition of Enerqos. See Note 4 for additional information. Senior Secured Credit Facility - Revolver and Term Loans On March 17, 2023, we entered into amendment number two to the fifth amended and restated senior secured credit facility with five banks to increase the total funded debt to EBITDA covenant ratio from a maximum of 3.50 to 4.00 for the quarters ending March 31, 2023 and June 30, 2023, and 3.5 thereafter. Non-recourse Term Shelf Notes, 5.99%, due December 31, 2047 On March 28, 2023, three senior secured notes (“Shelf Notes”) due December 31, 2047 were issued under our shelf facility, with gross proceeds of $22,625. The Shelf Notes bear interest at a fixed rate of 5.99% per annum and are payable quarterly commencing June 30, 2023. At closing, we incurred $282 in lender fees and debt issuance costs. In connection with the Shelf Notes, we recorded a derivative instrument for make-whole provisions with an initial value of $3,123, which was recorded as a debt discount. Non-recourse Variable Rate Term Loan, 6.38%, due March 28, 2028 On March 30, 2023, we entered into an amended and restated financing agreement (“Amended Agreement”) with the existing bank that extended the maturity date of the loan from March 30, 2023 to March 28, 2028. The Amended Agreement consists of a term loan of $14,084, an incremental term loan of $359 and a letter of credit of $899. The term loan bears interest at a variable rate, with interest payments due in quarterly installments. The rate at March 31, 2023 was 6.38% per annum. The remaining principal balance and unpaid interest is due March 28, 2028. As a result of this refinancing, we entered into a new interest rate swap contract with an initial notional amount of $14,084 and termination date of December 31, 2040. See Note 12 Derivative Instruments and Hedging Activities for additional information on this new swap contract. Non-recourse Fixed Rate Note, 6.38%, due May 2038 (formerly 6.50%, due October 2037) On March 31, 2023, we drew down $30,000 under this facility and on May 31, 2023, we entered into the first amendment to the loan agreement that increased the original commitment of $125,000 by an additional $90,000 to $215,000 and at closing we drew down the $90,000. As of June 30, 2023, $204,891 was outstanding under this facility, net of unamortized debt discount and issuance costs. The first amendment also contained the following amended terms: • The loan bears interest on the unpaid principal amount thereof from the date made through repayment at an interest rate of 6.38% per annum compared to the original rate of 6.50%. • The loan maturity date was changed from October 26, 2037 to May 31, 2038 Non-recourse Construction Credit Facility, 2.00% On March 31, 2023, we entered into a credit agreement for a construction facility with a total commitment of CAD$100,000 which has an availability period of five years. As of June 30, 2023, no funds were drawn under this facility. During the availability period the loans will bear interest at a fixed rate of 2.00% and during the operating period the rate will range from 1.00% to 3.00% as set forth in the agreement. The maturity date is the earlier of twenty years from project commencement date or one year prior to the termination date of the last remaining energy services agreements. Non-recourse Construction Credit Facility, 6.54%, due July 31, 2024 On April 18, 2023, one of our consolidated joint venture subsidiaries (“JV”) entered into a construction loan agreement with two lenders for a principal amount of up to $140,844 under a non-recourse credit facility. At the closing, the JV drew down $90,921 for construction of an energy asset and drew down an additional $15,113 in May and June 2023. Monthly payments of interest only on the loan will be due and payable in accordance with the provisions as set forth in the agreement. Any outstanding principal of the loan shall be paid in full no later than the maturity date (or in any event upon acceleration of the loan), together with all accrued and unpaid interest on such amount. The loan will be repaid after the energy asset project achieves provisional acceptance, through a sale-leaseback financing under lease agreements to be entered into between the same parties, the form of which were included in the closing documents. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES We recorded a provision for income taxes of $5 and $4,932 for the three months ended June 30, 2023 and 2022, respectively. The estimated effective annualized tax rate impacted by the period discrete items is an expense of 0.1% for the three months ended June 30, 2023, compared to an expense of 13.0% of estimated effective annualized tax rate for the three months ended June 30, 2022. We recorded a benefit for income taxes of $498 and provision of $7,239 for the six months ended June 30, 2023 and 2022, respectively. The estimated effective annualized tax rate impacted by the period discrete items is a benefit of 5.3% for the six months ended June 30, 2023 , compared to an expense of 12.2% of estimated effective annualized tax rate for the six months ended June 30, 2022 . The principal reasons for the difference between the statutory rate and the estimated annual effective rate for 2023 were the effects of investment tax credits which we are entitled from solar and storage plants placed into service or are forecasted to be placed into service during 2023, stock plan compensation deductions and deductions related to the Section 179D. Under GAAP accounting rules deferred taxes are shown on a net basis in the condensed consolidated financial statements based on taxing jurisdiction. Under the guidance, we have recorded long term deferred tax assets and deferred tax liabilities based on the underlying jurisdiction in the accompanying condensed consolidated balance sheets. The following table sets forth the total amounts of gross unrecognized tax benefits: Gross Unrecognized Balance, December 31, 2022 $ 900 Balance, June 30, 2023 $ 900 The amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in any future periods was $450 at June 30, 2023 and December 31, 2022 (net of the federal benefit on state amounts). |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES From time to time, we issue letters of credit and performance bonds with our third-party lenders, to provide collateral. Legal Proceedings We are involved in a variety of other claims and other legal proceedings generally incidental to our normal business activities. While the outcome of any of these proceedings cannot be accurately predicted, we do not believe the ultimate resolution of any of these existing matters would have a material adverse effect on our financial condition or results of operations. Commitments as a Result of Acquisitions In August 2018, we completed an acquisition which provided for a revenue earn-out contingent upon the acquired business meeting certain cumulative revenue targets over 4 years from the acquisition date. The fair value remained consistent at $358 at December 31, 2022 and June 30, 2023. At December 31, 2022 it was included in other liabilities and at June 30, 2023 it was included in accrued expenses and other current liabilities on the condensed consolidated balance sheets. The contingent consideration will be paid no later than May 2024. No payments have been made to date. In December 2021, we completed our acquisition of Plug Smart which provided for an earn-out based on future EBITDA targets beginning with EBITDA performance for the month of December 2021 and each fiscal year thereafter, over a five-year period through December 31, 2026. The maximum cumulative earn-out is $5,000 and we evaluated financial forecasts of the acquired business and concluded that the fair value of this earn-out was approximately $3,800 upon acquisition and as of December 31, 2022. At June 30, 2023, the fair value of the contingent consideration decreased to $915 and is included in accrued expenses and other current liabilities, and other liabilities on the condensed consolidated balance sheets. The decrease is due to payments of $3,040 made during the six months ended June 30, 2023, partially offset by a $155 increase in fair value. See Note 11 for additional information. |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | FAIR VALUE MEASUREMENT We recognize our financial assets and liabilities at fair value on a recurring basis. Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Three levels of inputs that may be used to measure fair value are as follows: Level 1: Inputs are based on unadjusted quoted prices for identical instruments traded in active markets. Level 2: Inputs are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. The following table presents the input level used to determine the fair values of our financial instruments measured at fair value on a recurring basis: Fair Value as of Level June 30, 2023 December 31, 2022 Assets: Interest rate swap instruments 2 $ 5,004 $ 5,202 Total assets $ 5,004 $ 5,202 Liabilities: Interest rate swap instruments 2 $ — $ 9 Make-whole provisions 2 8,096 5,348 Contingent consideration 3 1,273 4,158 Total liabilities $ 9,369 $ 9,515 The following table sets forth a summary of changes in the fair value of contingent consideration liability classified as level 3: Fair Value as of June 30, 2023 December 31, 2022 Contingent consideration liability balance at the beginning of period $ 4,158 $ 2,838 Changes in fair value included in earnings 155 (19) Payment of contingent consideration (3,040) 1,614 Remeasurement period adjustment — (275) Contingent consideration liability balance at the end of period $ 1,273 $ 4,158 The following table sets forth the fair value and the carrying value of our long-term debt, excluding financing leases: As of June 30, 2023 As of December 31, 2022 Fair Value Carrying Value Fair Value Carrying Value Long-term debt (Level 2) $ 1,089,390 $ 1,102,130 $ 869,771 $ 884,054 The fair value of our long-term debt was estimated using discounted cash flows analysis, based on our current incremental borrowing rates for similar types of borrowing arrangements which are considered to be level two inputs. There have been no transfers in or out of level two or three financial instruments for the six months ended June 30, 2023 and the year ended December 31, 2022. We are also required to periodically measure certain other assets at fair value on a nonrecurring basis, including long-lived assets, goodwill and other intangible assets. We calculated the fair value used in our annual goodwill impairment analysis utilizing a discounted cash flow analysis and determined that the inputs used were level 3 inputs. There were no assets recorded at fair value on a non-recurring basis as of June 30, 2023 or December 31, 2022. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIESDuring the six months ended June 30, 2023, we adopted ASU 2020-04, Reference Rate Reform, for six interest rate swap contracts with the transition from LIBOR to SOFR as the reference rate. In March 2023, we dedesignated one interest rate swap contract for a previous loan facility and entered into a new interest rate swap contract to hedge $14,084 of the extended loan facility. The new interest rate swap was designated as a cash flow hedge. In June 2023, we prepaid one loan facility and terminated the related swap prior to its maturity date. The following table presents information about the fair value amounts of our cash flow derivative instruments: Derivatives as of June 30, 2023 December 31, 2022 Balance Sheet Location Fair Value Fair Value Derivatives Designated as Hedging Instruments: Interest rate swap contracts Other assets $ 1,676 $ 1,748 Interest rate swap contracts Other liabilities $ — $ 9 Derivatives Not Designated as Hedging Instruments: Interest rate swap contracts Other assets $ 3,328 $ 3,454 Make-whole provisions Other liabilities $ 8,096 $ 5,348 As of June 30, 2023 and December 31, 2022, all but two of our freestanding derivatives were designated as hedging instruments. The following table presents information about the effects of our derivative instruments on our condensed consolidated statements of income and condensed consolidated statements of comprehensive income: Amount of Loss (Gain) Recognized in Net Income Location of Loss (Gain) Recognized in Net Income Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Derivatives Designated as Hedging Instruments: Interest rate swap contracts Other expenses, net $ (222) $ 360 $ (211) $ 841 Derivatives Not Designated as Hedging Instruments: Interest rate swap contracts Other expenses, net $ (338) $ (759) $ 182 $ (2,021) Commodity swap contracts Other expenses, net $ — $ (92) — 2,514 Make-whole provisions Other expenses, net $ (86) $ (216) (443) 62 The following table presents the changes in Accumulated Other Comprehensive Loss (“AOCL”), net of taxes, from our hedging instruments: Six Months Ended June 30, 2023 Derivatives Designated as Hedging Instruments: Accumulated gain in AOCL at the beginning of the period $ 1,284 Unrealized loss recognized in AOCL 163 Loss reclassified from AOCL to other expenses, net (211) Loss on derivatives (48) Accumulated gain in AOCL at the end of the period $ 1,236 The following tables present all of our active derivative instruments as of June 30, 2023: Active Interest Rate Swaps Effective Date Expiration Date Initial Notional Status 11-Year, 5.77% Fixed October 2018 October 2029 $ 9,200 Designated 15-Year, 5.24% Fixed June 2018 June 2033 $ 10,000 Designated 10-Year, 4.74% Fixed June 2017 December 2027 $ 14,100 Designated 8-Year, 3.49% Fixed March 2020 June 2028 $ 14,643 Designated 8-Year, 3.49% Fixed March 2020 June 2028 $ 10,734 Designated 13-Year, 0.72% Fixed May 2020 March 2033 $ 9,505 Not Designated 13-Year, 0.72% Fixed May 2020 March 2033 $ 6,968 Not Designated 7.75-Year, 3.16% Fixed March 2023 December 2040 $ 14,084 Designated Other Derivatives Classification Effective Date Expiration Date Fair Value ($) Make-whole provisions Liability June/August 2018 December 2038 $ 566 Make-whole provisions Liability August 2016 April 2031 $ 76 Make-whole provisions Liability April 2017 February 2034 $ 59 Make-whole provisions Liability November 2020 December 2027 $ 51 Make-whole provisions Liability October 2011 May 2028 $ 16 Make-whole provisions Liability May 2021 April 2045 $ 144 Make-whole provisions Liability July 2021 March 2046 $ 2,963 Make-whole provisions Liability June 2022 March 2042 $ 1,157 Make-whole provisions Liability March 2023 December 2047 $ 3,064 |
Variable Interest Entities And
Variable Interest Entities And Equity Method Investments | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities And Equity Method Investments | VARIABLE INTEREST ENTITIES AND EQUITY METHOD INVESTMENTS Variable Interest Entities The table below presents a summary of amounts related to our consolidated investment funds and joint ventures, which we determined meet the definition of a variable interest entity (“VIE”), as of: June 30, December 31, 2023 (1) 2022 (1) Cash and cash equivalents $ 7,472 $ 10,107 Restricted cash — 799 Accounts receivable, net — 590 Costs and estimated earnings in excess of billings 22,595 952 Prepaid expenses and other current assets 2,374 14,322 Total VIE current assets 32,441 26,770 Property and equipment, net 379 89 Energy assets, net 236,759 182,050 Operating lease assets 5,851 4,901 Restricted cash, non-current portion 73 73 Other assets 86 30 Total VIE assets $ 275,589 $ 213,913 Current portions of long-term debt and financing lease liabilities $ 2,185 $ 2,087 Accounts payable 19,493 8,055 Accrued expenses and other current liabilities 4,012 12,559 Current portions of operating lease liabilities 215 117 Total VIE current liabilities 25,905 22,818 Long-term debt and financing lease liabilities, net of current portion, unamortized discount and debt issuance costs 120,989 19,177 Long-term operating lease liabilities, net of current portion 6,085 5,159 Other liabilities 736 3,575 Total VIE liabilities $ 153,715 $ 50,729 (1) The amounts in the above table are reflected in Note 1 on our condensed consolidated balance sheets. See Note 14 for additional information on the call and put options related to our investment funds. Non-controlling Interests Non-controlling interests represents the equity owned by the other joint venture members of consolidated joint ventures. During the six months ended June 30, 2023, joint venture members contributed $922 to joint ventures. One JV member was refunded $20,521, net of adjustments, from debt proceeds received from the JV’s Non-recourse Construction Credit Facility, 6.54%, due July 2024. Our joint ventures generated $622 and $1,044, in earnings during the three and six months ended June 30, 2023, respectively. Equity Method Investments Unconsolidated joint ventures are accounted for under the equity method. For these unconsolidated joint ventures, our investment balances are included in other assets on the condensed consolidated balance sheets and our pro rata share of net income or loss is included in earnings from unconsolidated entities on the condensed consolidated statements of income. The following table provides information about our equity method investments in joint ventures: As of June 30, 2023 December 31, 2022 Equity method investments $ 11,900 $ 10,855 |
Redeemable Non-controlling Inte
Redeemable Non-controlling Interests | 6 Months Ended |
Jun. 30, 2023 | |
Noncontrolling Interest [Abstract] | |
Redeemable Non-controlling Interests | REDEEMABLE NON-CONTROLLING INTERESTS Our subsidiaries with membership interests in the investment funds we formed have the right to elect to require the non-controlling interest holder to sell all of its membership units to our subsidiaries, a call option. Our investment funds also include rights for the non-controlling interest holder to elect to require our subsidiaries to purchase all of the non-controlling membership interests in the fund, a put option. The call options are exercisable beginning on the date that specified conditions are met for each respective fund. The put options for the investment funds are exercisable beginning on the date that specified conditions are met for each respective fund. We initially record our redeemable non-controlling interests at fair value on the date of acquisition and subsequently adjust to redemption value. At both June 30, 2023 and December 31, 2022 redeemable non-controlling interests were reported at their carrying values, as the carrying value at each reporting period was greater than the estimated redemption value. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Earnings Per Share The following is a reconciliation of the numerator and denominator for the computation of basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, (In thousands, except per share data) 2023 2022 2023 2022 Numerator: Net income attributable to common shareholders $ 6,368 $ 32,216 $ 7,470 $ 49,600 Adjustment for accretion of tax equity financing fees (28) (27) (55) (54) Income attributable to common shareholders $ 6,340 $ 32,189 $ 7,415 $ 49,546 Denominator: Basic weighted-average shares outstanding 52,127 51,818 52,045 51,781 Effect of dilutive securities: Stock options 1,084 1,355 1,187 1,626 Diluted weighted-average shares outstanding 53,211 53,173 53,232 53,407 Net income per share attributable to common shareholders: Basic $ 0.12 $ 0.62 $ 0.14 $ 0.96 Diluted $ 0.12 $ 0.61 $ 0.14 $ 0.93 Potentially dilutive shares (1) 1,961 2,798 1,939 2,232 (1) Potentially dilutive shares attributable to stock options were excluded from the computation of diluted earnings per share as the effect would have been anti-dilutive. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION We recorded stock-based compensation expense, including expense related to our employee stock purchase plan, as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Stock-based compensation expense $ 3,962 $ 3,675 $ 7,999 $ 7,206 Our stock-based compensation expense is included in selling, general and administrative expenses in the condensed consolidated statements of income. As of June 30, 2023, there was $43,239 of unrecognized compensation expense related to non-vested stock option awards that is expected to be recognized over a weighted-average period of 2.5 years. Stock Option and Restricted Stock Units (“RSUs”) Grants |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Business Segment Information | BUSINESS SEGMENT INFORMATION Our reportable segments for the three and six months ended June 30, 2023 were U.S. Regions, U.S. Federal, Canada, Alternative Fuels and All Other. Our U.S. Regions, U.S. Federal and Canada segments offer energy efficiency products and services which include the design, engineering and installation of equipment and other measures to improve the efficiency and control the operation of a facility’s energy infrastructure, renewable energy solutions and services and the development and construction of small-scale plants that Ameresco owns or develops for customers that produce electricity, gas, heat or cooling from renewable sources of energy and O&M services. Our Alternative Fuels segment sells electricity and processed renewable natural gas (“RNG”) derived from biomethane from small-scale plants that we own and operate, and provides O&M services for customer-owned small-scale RNG plants. The “All Other” category includes enterprise energy management services, other than the U.S.-based portion; consulting services, energy efficiency products and services outside of the U.S. and Canada; and the sale of solar PV energy products and systems which we refer to as integrated-PV. These segments do not include results of other activities, such as corporate operating expenses not specifically allocated to the segments. Certain reportable segments are an aggregation of operating segments. The tables below present our business segment information recast for the prior-year period and a reconciliation to the condensed consolidated financial statements: U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total Consolidated Three Months Ended June 30, 2023 Revenues $ 138,985 $ 80,019 $ 15,195 $ 30,316 $ 62,559 $ 327,074 (Gain) loss on derivatives (125) 66 39 (404) — (424) Interest expense, net of interest income 1,715 288 182 3,436 630 6,251 Depreciation and amortization of intangible assets 6,704 1,234 409 6,205 1,037 15,589 Unallocated corporate activity — — — — — (17,131) Income before taxes, excluding unallocated corporate activity 10,284 8,887 1,189 3,110 2,079 25,549 U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total Consolidated Three Months Ended June 30, 2022 Revenues $ 397,385 $ 101,428 $ 14,461 $ 29,192 $ 34,931 $ 577,397 (Gain) loss on derivatives (261) — 45 (851) — (1,067) Interest expense, net of interest income 1,883 315 313 2,193 (18) 4,686 Depreciation and amortization of intangible assets 5,298 1,213 430 5,651 259 12,851 Unallocated corporate activity — — — — — (17,673) Income before taxes, excluding unallocated corporate activity 32,840 12,011 1,012 6,476 3,139 55,478 U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total Consolidated Six months ended June 30, 2023 Revenues $ 263,354 $ 139,575 $ 33,606 $ 58,655 $ 102,926 $ 598,116 (Gain) loss on derivatives (428) 4 47 116 — (261) Interest expense, net of interest income 3,118 586 364 5,787 749 10,604 Depreciation and amortization of intangible assets 12,753 2,459 814 12,073 1,341 29,440 Unallocated corporate activity — — — — — (35,974) Income before taxes, excluding unallocated corporate activity 18,240 14,099 1,921 6,625 4,561 45,446 U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total Consolidated Six Months Ended June 30, 2022 Revenues $ 711,905 $ 177,074 $ 31,633 $ 58,453 $ 72,334 $ 1,051,399 (Gain) loss on derivatives (34) — 96 493 — 555 Interest expense, net of interest income 3,525 621 535 3,983 (25) 8,639 Depreciation and amortization of intangible assets 10,576 2,458 877 11,067 530 25,508 Unallocated corporate activity — — — — — (33,582) Income before taxes, excluding unallocated corporate activity 51,058 20,897 1,291 13,898 5,848 92,992 See Note 3 for additional information about our revenues by product line. |
Other Expenses, Net
Other Expenses, Net | 6 Months Ended |
Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Other Expenses, Net | OTHER EXPENSES, NET The following table presents the components of other expenses, net: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (Gain) loss on derivatives $ (424) $ (1,067) $ (261) $ 555 Interest expense, net of interest income 7,222 6,558 14,415 11,047 Amortization of debt discount and debt issuance costs 1,575 1,184 2,365 2,036 Foreign currency transaction loss (gain) 150 598 (7) 714 Government incentives (577) (2,024) (523) (2,022) Factoring fees 1,252 — 1,252 — Other expenses, net $ 9,198 $ 5,249 $ 17,241 $ 12,330 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income attributable to common shareholders | $ 6,368 | $ 32,216 | $ 7,470 | $ 49,600 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 shares | Jun. 30, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Jennifer Miller [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | The following table describes contracts, instructions or written plans for the sale or purchase of Company securities adopted by our directors and officers during the quarterly period covered by this report/fourth quarter of 2023 that are intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) (a “Rule 10b5-1 trading arrangement”): Name (Title) Action Taken (Date of Action) Duration of Trading Arrangement Aggregate Number of Securities Jennifer Miller, Director Adoption: 5/22/2023 Until February 11, 2025 or such earlier date upon which all transactions are completed or expire without execution Sale of up to 40,000 shares | |
Name | Jennifer Miller | |
Title | Director | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | 5/22/2023 | |
Arrangement Duration | 631 days | |
Aggregate Available | 40,000 | 40,000 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATIONThe accompanying condensed consolidated financial statements of Ameresco, Inc. (including its subsidiaries, the “Company,” “Ameresco,” “we,” “our,” or “us”) are unaudited, according to certain rules and regulations of the Securities and Exchange Commission, and include, in our opinion, normal recurring adjustments necessary for a fair presentation in conformity with accounting principles generally accepted in the United States (“GAAP”) of the results for the periods indicated. |
Reclassification | Reclassification Certain prior period amounts were reclassified to conform to the presentation in the current period. |
Accounts Receivable Factoring | Accounts Receivable Factoring Ameresco’s wholly-owned subsidiary in Italy entered into factoring agreements to sell certain receivables to unrelated third-party financial institutions on a non-recourse basis. These transactions are accounted for in accordance with ASC Topic 860, Transfers and Servicing and result in a reduction in accounts receivable because the agreements transfer effective control over the receivables, and related risk, to the buyers. Our Italian subsidiary does not retain any interest in the underlying accounts receivable once sold. Trade accounts receivables balances sold are removed from the condensed consolidated balance sheets, and |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04, as amended by ASU 2021-01 in January 2021, directly addressing the effects of reference rate reform on financial reporting as a results of the cessation of the publication of certain London interbank offered rate (“LIBOR”) rates beginning December 31, 2021, with complete elimination of the publication of the LIBOR rates by June 30, 2023. The guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform by virtue of referencing LIBOR or another reference rate expected to be discontinued. This guidance became effective on March 12, 2020, and then amended by ASU 2022-06 in December 2022, extending the adoption date to no later than December 31, 2024, with early adoption permitted. We adopted this guidance beginning January 1, 2023 upon entering amendments to credit agreements which introduced the secured overnight financing rate as administrated by the Federal Reserve Bank of New York to replace LIBOR as the benchmark. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements. Derivatives and Hedging In March 2022, the FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method, which expands the current single-layer method to allow multiple hedged layers of a single closed portfolio to be hedged under the method. ASU 2022-01 is effective for our fiscal year ending beginning after December 15, 2022. We adopted this accounting standard as of January 1, 2023 and the adoption did not have an impact on our condensed consolidated financial statements. Fair Value Measurement In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, which clarifies the measurement criteria for equity securities and refines the disclosure requirements for equity securities subject to contractual sale restrictions. ASU 2022-03 is effective for our fiscal year ending beginning after December 15, 2023. We are currently evaluating the impact that adopting this new accounting standard would have on our condensed consolidated financial statements. Investments - Equity Method and Joint Ventures In March 2023, the FASB issued ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, which defines consistent accounting for equity investments for the purpose of receiving income tax credits and other income tax benefits. ASU 2023-02 is effective for our fiscal year ending beginning after December 15, 2023. We are currently evaluating the impact that adopting this new accounting standard would have on our condensed consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Accounts Receivable, Allowance for Credit Loss | Changes in the allowance for credit losses are as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Allowance for credit losses, beginning of period $ 971 $ 2,265 $ 911 $ 2,263 Provision for bad debts 486 7 579 244 Account write-offs and other (554) (10) (587) (245) Allowance for credit losses, end of period $ 903 $ 2,262 $ 903 $ 2,262 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregation of Revenue | The following table presents our revenue disaggregated by line of business and reportable segment for the three months ended June 30, 2023: U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total Project revenue $ 113,502 $ 63,904 $ 11,082 $ — $ 40,399 $ 228,887 O&M revenue 6,309 13,901 53 2,295 460 23,018 Energy assets 18,057 2,164 1,334 28,021 430 50,006 Integrated-PV — — — — 11,486 11,486 Other 1,117 50 2,726 — 9,784 13,677 Total revenues $ 138,985 $ 80,019 $ 15,195 $ 30,316 $ 62,559 $ 327,074 The following table presents our revenue disaggregated by line of business and reportable segment for the three months ended June 30, 2022: U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total Project revenue $ 378,646 $ 85,850 $ 10,160 $ — $ 14,464 $ 489,120 O&M revenue 5,457 13,365 11 2,122 95 21,050 Energy assets 12,253 2,074 1,487 27,070 39 42,923 Integrated-PV — — — — 12,267 12,267 Other 1,029 139 2,803 — 8,066 12,037 Total revenues $ 397,385 $ 101,428 $ 14,461 $ 29,192 $ 34,931 $ 577,397 The following table presents our revenue disaggregated by line of business and reportable segment for the six months ended June 30, 2023: U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total Project revenue $ 217,822 $ 109,453 $ 25,993 $ — $ 58,849 $ 412,117 O&M revenue 11,838 26,601 63 5,981 793 45,276 Energy assets 31,708 3,240 2,096 52,674 1,060 90,778 Integrated-PV — — — — 23,430 23,430 Other 1,986 281 5,454 — 18,794 26,515 Total revenues $ 263,354 $ 139,575 $ 33,606 $ 58,655 $ 102,926 $ 598,116 The following table presents our revenue disaggregated by line of business and reportable segment for the six months ended June 30, 2022: U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total Project revenue $ 677,278 $ 148,067 $ 24,111 $ — $ 33,068 $ 882,524 O&M revenue 10,537 25,662 22 4,896 186 41,303 Energy assets 22,271 3,164 2,248 53,557 111 81,351 Integrated-PV — — — — 23,623 23,623 Other 1,819 181 5,252 — 15,346 22,598 Total revenues $ 711,905 $ 177,074 $ 31,633 $ 58,453 $ 72,334 $ 1,051,399 The following table presents information related to our revenue recognized over time: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Percentage of revenue recognized over time 95% 97% 94% 97% The remainder of our revenue is for products and services transferred at a point in time, at which point revenue is recognized. We attribute revenues to customers based on the location of the customer. The following table presents information related to our revenues by geographic area : Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 United States $ 270,957 $ 548,880 $ 504,041 $ 987,271 Canada 13,566 13,025 30,800 29,013 Other 42,551 15,492 63,275 35,115 Total revenues $ 327,074 $ 577,397 $ 598,116 $ 1,051,399 |
Summary of Contract with Customer, Asset and Liability | The following tables provide information about receivables, contract assets and contract liabilities from contracts with customers: June 30, 2023 December 31, 2022 Accounts receivable, net $ 123,361 $ 174,009 Accounts receivable retainage, net $ 37,803 $ 38,057 Contract Assets: Costs and estimated earnings in excess of billings $ 575,113 $ 576,363 Contract Liabilities: Billings in excess of cost and estimated earnings $ 40,459 $ 34,796 Billings in excess of cost and estimated earnings, non-current (1) 15,659 7,617 Total contract liabilities $ 56,118 $ 42,413 June 30, 2022 December 31, 2021 Accounts receivable, net $ 207,990 $ 161,970 Accounts receivable retainage, net $ 43,444 $ 43,067 Contract Assets: Costs and estimated earnings in excess of billings $ 663,798 $ 306,172 Contract Liabilities: Billings in excess of cost and estimated earnings $ 39,787 $ 35,918 Billings in excess of cost and estimated earnings, non-current (1) $ 6,175 $ 6,481 Total contract liabilities $ 45,962 $ 42,399 (1) Performance obligations that are expected to be completed beyond the next twelve months and are included in other liabilities in the condensed consolidated balance sheets. |
Business Acquisitions and Rel_2
Business Acquisitions and Related Transactions (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | A summary of the cumulative consideration paid and allocation of the purchase price for the Enerqos acquisition are presented in the table below: March 30, 2023 Cash and cash equivalents $ 190 Accounts receivable 6,230 Costs and estimated earnings in excess of billings 8,985 Prepaid expenses and other current assets 16,504 Project development costs 5,140 Property and equipment and energy assets 1,234 Goodwill 6,855 Intangible assets 4,438 Long-term restricted cash 163 Accounts payable (15,480) Accrued expenses and other current liabilities (4,510) Current portions of long-term debt (15,165) Deferred income tax liabilities, net (931) Other liabilities (208) Purchase price $ 13,445 Purchase price, net of cash acquired $ 13,092 Long-term debt assumed, net of current portions $ 3,951 Total fair value of consideration $ 13,445 Cash paid $ 9,535 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Carrying Value of Goodwill Attributable to Each Reportable Segment | The changes in the carrying value of goodwill balances by reportable segment were as follows: U.S. Regions U.S. Federal Canada Alternative Fuels Other Total Carrying Value of Goodwill Balance, December 31, 2022 $ 39,593 $ 3,981 $ 3,236 $ — $ 23,823 $ 70,633 Goodwill acquired during the year — — — 6,855 6,855 Currency effects — — 74 — 284 358 Balance, June 30, 2023 $ 39,593 $ 3,981 $ 3,310 $ — $ 30,962 $ 77,846 |
Schedule of Gross Carrying Amount and Accumulated Amortization of Intangible Assets | Definite-lived intangible assets, net consisted of the following: As of June 30, 2023 As of December 31, 2022 Gross carrying amount $ 37,050 32,277 Less - accumulated amortization (28,908) (27,584) Intangible assets, net $ 8,142 $ 4,693 |
Schedule of Amortization Expense | The table below sets forth amortization expense: Three Months Ended June 30, Six Months Ended June 30, Asset type Location 2023 2022 2023 2022 Customer contracts Cost of revenues $ — $ 137 $ — $ 321 All other intangible assets Selling, general and administrative expenses 689 305 991 699 Total amortization expense $ 689 $ 442 $ 991 $ 1,020 |
Energy Assets, Net (Tables)
Energy Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Energy Assets | Energy assets, net consisted of the following: June 30, 2023 December 31, 2022 Energy assets (1) $ 1,758,599 $ 1,493,913 Less - accumulated depreciation and amortization (340,909) (312,388) Energy assets, net $ 1,417,690 $ 1,181,525 (1) Includes financing lease assets (see Note 7), capitalized interest and asset retirement obligations (“ARO”) assets (see tables below). |
Schedule of Depreciation and Amortization Expense of Energy Assets | The following table sets forth our depreciation and amortization expense on energy assets, net of deferred grant amortization: Three Months Ended June 30, Six Months Ended June 30, Location 2023 2022 2023 2022 Cost of revenues (2) $ 14,384 $ 12,172 $ 27,725 $ 23,978 (2) Includes depreciation and amortization on financing lease assets (see Note 7). |
Schedule of Capitalized Interest | The following table presents the interest costs relating to construction financing during the period of construction, which were capitalized as part of energy assets, net: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Capitalized interest $ 9,642 $ 2,064 $ 16,018 $ 3,908 |
Schedule Of Asset And Liabilities Retirement Obligations | The following tables sets forth information related to our ARO assets and ARO liabilities: Location June 30, 2023 December 31, 2022 ARO assets, net Energy assets, net $ 3,559 $ 2,359 ARO liabilities, non-current Other liabilities $ 4,487 $ 3,052 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Depreciation expense of ARO assets $ 53 $ 36 $ 108 $ 73 Accretion expense of ARO liabilities $ 64 $ 36 $ 130 $ 72 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of Assets and Liabilities, Lessee | The table below sets forth supplemental condensed consolidated balance sheet information related to our leases: June 30, 2023 December 31, 2022 Operating Leases: Operating lease assets $ 38,833 $ 38,224 Current portions of operating lease liabilities $ 5,935 $ 5,829 Long-term portions of operating lease liabilities 32,487 31,703 Total operating lease liabilities $ 38,422 $ 37,532 Weighted-average remaining lease term 13 years 13 years Weighted-average discount rate 6.1 % 6.0 % Financing Leases: Energy assets $ 28,314 $ 29,365 Current portions of financing lease liabilities $ 1,631 $ 1,992 Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs 13,504 14,068 Total financing lease liabilities $ 15,135 $ 16,060 Weighted-average remaining lease term 14 years 14 years Weighted-average discount rate 12.1 % 12.1 % |
Schedule of Other Lease Cost Details | The costs related to our leases were as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Operating Leases: Operating lease costs $ 2,316 $ 2,063 $ 4,436 $ 4,354 Financing Leases: Amortization expense 525 532 1,051 887 Interest on lease liabilities 433 536 877 1,095 Total lease costs $ 3,274 $ 3,131 $ 6,364 $ 6,336 Supplemental cash flow information related to our leases was as follows: Six Months Ended June 30, 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 3,792 $ 3,814 Right-of-use assets (“ROU”) obtained in exchange for new operating lease liabilities $ 3,486 $ 1,712 |
Schedule of Operating Lease Liability Maturity | The table below sets forth our estimated minimum future lease obligations under our leases: Operating Leases Financing Leases Year ended December 31, 2023 $ 4,344 $ 1,832 2024 7,475 2,565 2025 6,187 2,213 2026 3,990 2,054 2027 3,072 1,922 Thereafter 31,317 17,891 Total minimum lease payments 56,385 28,477 Less: interest 17,963 13,342 Present value of lease liabilities $ 38,422 $ 15,135 |
Schedule of Finance Lease Liability Maturity | The table below sets forth our estimated minimum future lease obligations under our leases: Operating Leases Financing Leases Year ended December 31, 2023 $ 4,344 $ 1,832 2024 7,475 2,565 2025 6,187 2,213 2026 3,990 2,054 2027 3,072 1,922 Thereafter 31,317 17,891 Total minimum lease payments 56,385 28,477 Less: interest 17,963 13,342 Present value of lease liabilities $ 38,422 $ 15,135 |
Debt and Financing Lease Liab_2
Debt and Financing Lease Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Our debt and financing lease liabilities are comprised of the following: June 30, 2023 December 31, 2022 Senior secured revolving credit facility (1) $ 102,900 $ 182,900 Senior secured term loans 295,000 295,000 Non-recourse construction revolvers (4) 127,457 45,391 Non-recourse term loans (4) 377,468 255,403 Non-recourse long-term financing facilities (2) 201,836 120,923 Non-recourse financing lease liabilities (3) 15,135 16,060 Non-recourse project financing (5) 18,680 — Total debt and financing lease liabilities 1,138,476 915,677 Less: current maturities 332,999 331,479 Less: unamortized discount and debt issuance costs 21,211 15,563 Long-term debt and financing lease liabilities, net of current portion, unamortized discount and debt issuance costs $ 784,266 $ 568,635 (1) At June 30, 2023, funds of $20,710 were available for borrowing under this facility. (2) These facilities are accounted for as failed sale leasebacks and are classified as long-term financing facilities. See Note 7 for additional disclosures. (3) Financing lease liabilities are sale-leaseback arrangements under previous guidance. See Note 7 for additional disclosures. (4) Most of these agreements are now using the Secured Overnight Financing Rate (“SOFR”) as the primary reference rate used to calculate interest. (5) Debt acquired in connection with the acquisition of Enerqos. See Note 4 for additional information. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Gross Unrecognized Tax Benefits | The following table sets forth the total amounts of gross unrecognized tax benefits: Gross Unrecognized Balance, December 31, 2022 $ 900 Balance, June 30, 2023 $ 900 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Changes in Fair Value by Balance Sheet Grouping | The following table presents the input level used to determine the fair values of our financial instruments measured at fair value on a recurring basis: Fair Value as of Level June 30, 2023 December 31, 2022 Assets: Interest rate swap instruments 2 $ 5,004 $ 5,202 Total assets $ 5,004 $ 5,202 Liabilities: Interest rate swap instruments 2 $ — $ 9 Make-whole provisions 2 8,096 5,348 Contingent consideration 3 1,273 4,158 Total liabilities $ 9,369 $ 9,515 |
Schedule of Changes in Fair Value of Contingent Liabilities Classified as Level 3 | The following table sets forth a summary of changes in the fair value of contingent consideration liability classified as level 3: Fair Value as of June 30, 2023 December 31, 2022 Contingent consideration liability balance at the beginning of period $ 4,158 $ 2,838 Changes in fair value included in earnings 155 (19) Payment of contingent consideration (3,040) 1,614 Remeasurement period adjustment — (275) Contingent consideration liability balance at the end of period $ 1,273 $ 4,158 |
Schedule of Fair Value and Carrying Value of Long-Term Debt | The following table sets forth the fair value and the carrying value of our long-term debt, excluding financing leases: As of June 30, 2023 As of December 31, 2022 Fair Value Carrying Value Fair Value Carrying Value Long-term debt (Level 2) $ 1,089,390 $ 1,102,130 $ 869,771 $ 884,054 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Instruments | The following table presents information about the fair value amounts of our cash flow derivative instruments: Derivatives as of June 30, 2023 December 31, 2022 Balance Sheet Location Fair Value Fair Value Derivatives Designated as Hedging Instruments: Interest rate swap contracts Other assets $ 1,676 $ 1,748 Interest rate swap contracts Other liabilities $ — $ 9 Derivatives Not Designated as Hedging Instruments: Interest rate swap contracts Other assets $ 3,328 $ 3,454 Make-whole provisions Other liabilities $ 8,096 $ 5,348 |
Schedule of Derivative Effect on Consolidated Statements of Income (Loss) | The following table presents information about the effects of our derivative instruments on our condensed consolidated statements of income and condensed consolidated statements of comprehensive income: Amount of Loss (Gain) Recognized in Net Income Location of Loss (Gain) Recognized in Net Income Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Derivatives Designated as Hedging Instruments: Interest rate swap contracts Other expenses, net $ (222) $ 360 $ (211) $ 841 Derivatives Not Designated as Hedging Instruments: Interest rate swap contracts Other expenses, net $ (338) $ (759) $ 182 $ (2,021) Commodity swap contracts Other expenses, net $ — $ (92) — 2,514 Make-whole provisions Other expenses, net $ (86) $ (216) (443) 62 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in Accumulated Other Comprehensive Loss (“AOCL”), net of taxes, from our hedging instruments: Six Months Ended June 30, 2023 Derivatives Designated as Hedging Instruments: Accumulated gain in AOCL at the beginning of the period $ 1,284 Unrealized loss recognized in AOCL 163 Loss reclassified from AOCL to other expenses, net (211) Loss on derivatives (48) Accumulated gain in AOCL at the end of the period $ 1,236 |
Schedule of Active Derivative Instruments | The following tables present all of our active derivative instruments as of June 30, 2023: Active Interest Rate Swaps Effective Date Expiration Date Initial Notional Status 11-Year, 5.77% Fixed October 2018 October 2029 $ 9,200 Designated 15-Year, 5.24% Fixed June 2018 June 2033 $ 10,000 Designated 10-Year, 4.74% Fixed June 2017 December 2027 $ 14,100 Designated 8-Year, 3.49% Fixed March 2020 June 2028 $ 14,643 Designated 8-Year, 3.49% Fixed March 2020 June 2028 $ 10,734 Designated 13-Year, 0.72% Fixed May 2020 March 2033 $ 9,505 Not Designated 13-Year, 0.72% Fixed May 2020 March 2033 $ 6,968 Not Designated 7.75-Year, 3.16% Fixed March 2023 December 2040 $ 14,084 Designated Other Derivatives Classification Effective Date Expiration Date Fair Value ($) Make-whole provisions Liability June/August 2018 December 2038 $ 566 Make-whole provisions Liability August 2016 April 2031 $ 76 Make-whole provisions Liability April 2017 February 2034 $ 59 Make-whole provisions Liability November 2020 December 2027 $ 51 Make-whole provisions Liability October 2011 May 2028 $ 16 Make-whole provisions Liability May 2021 April 2045 $ 144 Make-whole provisions Liability July 2021 March 2046 $ 2,963 Make-whole provisions Liability June 2022 March 2042 $ 1,157 Make-whole provisions Liability March 2023 December 2047 $ 3,064 |
Variable Interest Entities An_2
Variable Interest Entities And Equity Method Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The table below presents a summary of amounts related to our consolidated investment funds and joint ventures, which we determined meet the definition of a variable interest entity (“VIE”), as of: June 30, December 31, 2023 (1) 2022 (1) Cash and cash equivalents $ 7,472 $ 10,107 Restricted cash — 799 Accounts receivable, net — 590 Costs and estimated earnings in excess of billings 22,595 952 Prepaid expenses and other current assets 2,374 14,322 Total VIE current assets 32,441 26,770 Property and equipment, net 379 89 Energy assets, net 236,759 182,050 Operating lease assets 5,851 4,901 Restricted cash, non-current portion 73 73 Other assets 86 30 Total VIE assets $ 275,589 $ 213,913 Current portions of long-term debt and financing lease liabilities $ 2,185 $ 2,087 Accounts payable 19,493 8,055 Accrued expenses and other current liabilities 4,012 12,559 Current portions of operating lease liabilities 215 117 Total VIE current liabilities 25,905 22,818 Long-term debt and financing lease liabilities, net of current portion, unamortized discount and debt issuance costs 120,989 19,177 Long-term operating lease liabilities, net of current portion 6,085 5,159 Other liabilities 736 3,575 Total VIE liabilities $ 153,715 $ 50,729 (1) The amounts in the above table are reflected in Note 1 on our condensed consolidated balance sheets. |
Schedule of Equity Method Investments | The following table provides information about our equity method investments in joint ventures: As of June 30, 2023 December 31, 2022 Equity method investments $ 11,900 $ 10,855 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following is a reconciliation of the numerator and denominator for the computation of basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, (In thousands, except per share data) 2023 2022 2023 2022 Numerator: Net income attributable to common shareholders $ 6,368 $ 32,216 $ 7,470 $ 49,600 Adjustment for accretion of tax equity financing fees (28) (27) (55) (54) Income attributable to common shareholders $ 6,340 $ 32,189 $ 7,415 $ 49,546 Denominator: Basic weighted-average shares outstanding 52,127 51,818 52,045 51,781 Effect of dilutive securities: Stock options 1,084 1,355 1,187 1,626 Diluted weighted-average shares outstanding 53,211 53,173 53,232 53,407 Net income per share attributable to common shareholders: Basic $ 0.12 $ 0.62 $ 0.14 $ 0.96 Diluted $ 0.12 $ 0.61 $ 0.14 $ 0.93 Potentially dilutive shares (1) 1,961 2,798 1,939 2,232 (1) Potentially dilutive shares attributable to stock options were excluded from the computation of diluted earnings per share as the effect would have been anti-dilutive. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation Expense | We recorded stock-based compensation expense, including expense related to our employee stock purchase plan, as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Stock-based compensation expense $ 3,962 $ 3,675 $ 7,999 $ 7,206 |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Operational Results by Business Segments | The tables below present our business segment information recast for the prior-year period and a reconciliation to the condensed consolidated financial statements: U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total Consolidated Three Months Ended June 30, 2023 Revenues $ 138,985 $ 80,019 $ 15,195 $ 30,316 $ 62,559 $ 327,074 (Gain) loss on derivatives (125) 66 39 (404) — (424) Interest expense, net of interest income 1,715 288 182 3,436 630 6,251 Depreciation and amortization of intangible assets 6,704 1,234 409 6,205 1,037 15,589 Unallocated corporate activity — — — — — (17,131) Income before taxes, excluding unallocated corporate activity 10,284 8,887 1,189 3,110 2,079 25,549 U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total Consolidated Three Months Ended June 30, 2022 Revenues $ 397,385 $ 101,428 $ 14,461 $ 29,192 $ 34,931 $ 577,397 (Gain) loss on derivatives (261) — 45 (851) — (1,067) Interest expense, net of interest income 1,883 315 313 2,193 (18) 4,686 Depreciation and amortization of intangible assets 5,298 1,213 430 5,651 259 12,851 Unallocated corporate activity — — — — — (17,673) Income before taxes, excluding unallocated corporate activity 32,840 12,011 1,012 6,476 3,139 55,478 U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total Consolidated Six months ended June 30, 2023 Revenues $ 263,354 $ 139,575 $ 33,606 $ 58,655 $ 102,926 $ 598,116 (Gain) loss on derivatives (428) 4 47 116 — (261) Interest expense, net of interest income 3,118 586 364 5,787 749 10,604 Depreciation and amortization of intangible assets 12,753 2,459 814 12,073 1,341 29,440 Unallocated corporate activity — — — — — (35,974) Income before taxes, excluding unallocated corporate activity 18,240 14,099 1,921 6,625 4,561 45,446 U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total Consolidated Six Months Ended June 30, 2022 Revenues $ 711,905 $ 177,074 $ 31,633 $ 58,453 $ 72,334 $ 1,051,399 (Gain) loss on derivatives (34) — 96 493 — 555 Interest expense, net of interest income 3,525 621 535 3,983 (25) 8,639 Depreciation and amortization of intangible assets 10,576 2,458 877 11,067 530 25,508 Unallocated corporate activity — — — — — (33,582) Income before taxes, excluding unallocated corporate activity 51,058 20,897 1,291 13,898 5,848 92,992 |
Other Expenses, Net (Tables)
Other Expenses, Net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Expenses, Net | The following table presents the components of other expenses, net: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (Gain) loss on derivatives $ (424) $ (1,067) $ (261) $ 555 Interest expense, net of interest income 7,222 6,558 14,415 11,047 Amortization of debt discount and debt issuance costs 1,575 1,184 2,365 2,036 Foreign currency transaction loss (gain) 150 598 (7) 714 Government incentives (577) (2,024) (523) (2,022) Factoring fees 1,252 — 1,252 — Other expenses, net $ 9,198 $ 5,249 $ 17,241 $ 12,330 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accounting Policies [Abstract] | ||||
Factoring fees | $ 1,252 | $ 0 | $ 1,252 | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit losses, beginning of period | $ 971 | $ 2,265 | $ 911 | $ 2,263 |
Provision for bad debts | 486 | 7 | 579 | 244 |
Account write-offs and other | (554) | (10) | (587) | (245) |
Allowance for credit losses, end of period | $ 903 | $ 2,262 | $ 903 | $ 2,262 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 327,074 | $ 577,397 | $ 598,116 | $ 1,051,399 |
Percentage of revenue recognized over time | 95% | 97% | 94% | 97% |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 270,957 | $ 548,880 | $ 504,041 | $ 987,271 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 13,566 | 13,025 | 30,800 | 29,013 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 42,551 | 15,492 | 63,275 | 35,115 |
Project revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 228,887 | 489,120 | 412,117 | 882,524 |
O&M revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 23,018 | 21,050 | 45,276 | 41,303 |
Energy assets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 50,006 | 42,923 | 90,778 | 81,351 |
Integrated-PV | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 11,486 | 12,267 | 23,430 | 23,623 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 13,677 | 12,037 | 26,515 | 22,598 |
U.S. Regions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 138,985 | 397,385 | 263,354 | 711,905 |
U.S. Regions | Project revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 113,502 | 378,646 | 217,822 | 677,278 |
U.S. Regions | O&M revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,309 | 5,457 | 11,838 | 10,537 |
U.S. Regions | Energy assets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 18,057 | 12,253 | 31,708 | 22,271 |
U.S. Regions | Integrated-PV | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
U.S. Regions | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,117 | 1,029 | 1,986 | 1,819 |
U.S. Federal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 80,019 | 101,428 | 139,575 | 177,074 |
U.S. Federal | Project revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 63,904 | 85,850 | 109,453 | 148,067 |
U.S. Federal | O&M revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 13,901 | 13,365 | 26,601 | 25,662 |
U.S. Federal | Energy assets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,164 | 2,074 | 3,240 | 3,164 |
U.S. Federal | Integrated-PV | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
U.S. Federal | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 50 | 139 | 281 | 181 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 15,195 | 14,461 | 33,606 | 31,633 |
Canada | Project revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 11,082 | 10,160 | 25,993 | 24,111 |
Canada | O&M revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 53 | 11 | 63 | 22 |
Canada | Energy assets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,334 | 1,487 | 2,096 | 2,248 |
Canada | Integrated-PV | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Canada | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,726 | 2,803 | 5,454 | 5,252 |
Alternative Fuels | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 30,316 | 29,192 | 58,655 | 58,453 |
Alternative Fuels | Project revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Alternative Fuels | O&M revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,295 | 2,122 | 5,981 | 4,896 |
Alternative Fuels | Energy assets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 28,021 | 27,070 | 52,674 | 53,557 |
Alternative Fuels | Integrated-PV | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Alternative Fuels | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
All Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 62,559 | 34,931 | 102,926 | 72,334 |
All Other | Project revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 40,399 | 14,464 | 58,849 | 33,068 |
All Other | O&M revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 460 | 95 | 793 | 186 |
All Other | Energy assets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 430 | 39 | 1,060 | 111 |
All Other | Integrated-PV | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 11,486 | 12,267 | 23,430 | 23,623 |
All Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 9,784 | $ 8,066 | $ 18,794 | $ 15,346 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Contract Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | ||
Revenue from Contract with Customer [Abstract] | ||||||
Accounts receivable, net | $ 123,361 | [1] | $ 174,009 | [1] | $ 207,990 | $ 161,970 |
Accounts receivable retainage, net | 37,803 | 38,057 | 43,444 | 43,067 | ||
Contract Assets: | ||||||
Costs and estimated earnings in excess of billings | 575,113 | [1] | 576,363 | [1] | 663,798 | 306,172 |
Contract Liabilities: | ||||||
Billings in excess of cost and estimated earnings | 40,459 | 34,796 | 39,787 | 35,918 | ||
Billings in excess of cost and estimated earnings, non-current | 15,659 | 7,617 | 6,175 | 6,481 | ||
Total contract liabilities | $ 56,118 | $ 42,413 | $ 45,962 | $ 42,399 | ||
[1]Includes restricted assets of consolidated variable interest entities (“VIEs”) at June 30, 2023 and December 31, 2022 of $275,589 and $213,913, respectively. Includes non-recourse liabilities of consolidated VIEs at June 30, 2023 and December 31, 2022 of $153,715 and $50,729, respectively. See Note 13. |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Contract with customer, asset, reclassified to receivable | $ 436,030,000 | $ 492,820,000 | ||
Contract with customer, asset, revenue recognized | 413,181,000 | 845,211,000 | ||
Revenue recognized | 73,585,000 | 64,145,000 | ||
Contract with customer, liability, billings | 80,774,000 | 59,453,000 | ||
Revenue, remaining performance obligation | $ 2,328,660,000 | $ 2,328,660,000 | ||
Contract term | 25 years | |||
Capitalized contract cost, project development costs | 3,605,000 | $ 1,771,000 | $ 6,217,000 | 5,980,000 |
Capitalized contract cost, impairment loss | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue, remaining performance obligation, percentage | 36% | 36% | ||
Revenue, remaining performance obligation, remaining satisfaction | 12 months | 12 months |
Business Acquisitions and Rel_3
Business Acquisitions and Related Transactions - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 77,846,000 | $ 70,633,000 | |
Enerqos | |||
Business Acquisition [Line Items] | |||
Business combination, consideration price | $ 13,445,000 | ||
Cash paid | $ 9,535,000 | ||
Contingent consideration | 0 | ||
Cash acquired | 353,000 | ||
Long-term debt assumed, net of current portions | 3,951,000 | ||
Deferred tax liability | 931,000 | ||
Goodwill | $ 6,855,000 |
Business Acquisitions and Rel_4
Business Acquisitions and Related Transactions - Consideration Paid and the Allocation of the Purchase Price (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 77,846 | $ 77,846 | $ 70,633 | ||
Purchase price, net of cash acquired | $ 9,184 | $ 0 | |||
Enerqos | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 190 | ||||
Accounts receivable | 6,230 | ||||
Costs and estimated earnings in excess of billings | 8,985 | ||||
Prepaid expenses and other current assets | 16,504 | ||||
Project development costs | 5,140 | ||||
Property and equipment and energy assets | 1,234 | ||||
Goodwill | 6,855 | ||||
Intangible assets | 4,438 | ||||
Long-term restricted cash | 163 | ||||
Accounts payable | (15,480) | ||||
Accrued expenses and other current liabilities | (4,510) | ||||
Current portions of long-term debt | (15,165) | ||||
Deferred income tax liabilities, net | (931) | ||||
Other liabilities | (208) | ||||
Purchase price | 13,445 | ||||
Purchase price, net of cash acquired | 13,092 | ||||
Long-term debt assumed, net of current portions | 3,951 | ||||
Total fair value of consideration | $ 13,445 | ||||
Cash paid | $ 9,535 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Carrying Value of Goodwill | |
Beginning Balance | $ 70,633 |
Goodwill acquired during the year | 6,855 |
Currency effects | 358 |
Ending Balance | 77,846 |
U.S. Regions | |
Carrying Value of Goodwill | |
Beginning Balance | 39,593 |
Goodwill acquired during the year | |
Currency effects | 0 |
Ending Balance | 39,593 |
U.S. Federal | |
Carrying Value of Goodwill | |
Beginning Balance | 3,981 |
Goodwill acquired during the year | 0 |
Currency effects | 0 |
Ending Balance | 3,981 |
Canada | |
Carrying Value of Goodwill | |
Beginning Balance | 3,236 |
Goodwill acquired during the year | 0 |
Currency effects | 74 |
Ending Balance | 3,310 |
Alternative Fuels | |
Carrying Value of Goodwill | |
Beginning Balance | 0 |
Goodwill acquired during the year | 0 |
Currency effects | 0 |
Ending Balance | 0 |
Other | |
Carrying Value of Goodwill | |
Beginning Balance | 23,823 |
Goodwill acquired during the year | 6,855 |
Currency effects | 284 |
Ending Balance | $ 30,962 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Gross carrying amount | $ 37,050 | $ 32,277 |
Less - accumulated amortization | (28,908) | (27,584) |
Intangible assets, net | $ 8,142 | $ 4,693 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net - Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 689 | $ 442 | $ 991 | $ 1,020 |
Customer contracts | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 0 | 137 | 0 | 321 |
All other intangible assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 689 | $ 305 | $ 991 | $ 699 |
Energy Assets, Net - Energy Ass
Energy Assets, Net - Energy Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||
Energy assets, net | [1] | $ 1,417,690 | $ 1,181,525 |
Energy Assets | |||
Property, Plant and Equipment [Line Items] | |||
Energy assets | 1,758,599 | 1,493,913 | |
Less - accumulated depreciation and amortization | (340,909) | (312,388) | |
Energy assets, net | $ 1,417,690 | $ 1,181,525 | |
[1]Includes restricted assets of consolidated variable interest entities (“VIEs”) at June 30, 2023 and December 31, 2022 of $275,589 and $213,913, respectively. Includes non-recourse liabilities of consolidated VIEs at June 30, 2023 and December 31, 2022 of $153,715 and $50,729, respectively. See Note 13. |
Energy Assets, Net - Additional
Energy Assets, Net - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | |||||
Cost of revenues | $ 14,384 | $ 12,172 | $ 27,725 | $ 23,978 | |
Capitalized interest | 9,642 | 2,064 | 16,018 | 3,908 | |
ARO assets, net | 3,559 | 3,559 | $ 2,359 | ||
ARO liabilities, non-current | 4,487 | 4,487 | $ 3,052 | ||
Depreciation expense of ARO assets | 1,607 | 1,404 | |||
Accretion expense of ARO liabilities | 64 | 36 | 130 | 72 | |
ARO Assets | |||||
Business Acquisition [Line Items] | |||||
Depreciation expense of ARO assets | $ 53 | $ 36 | $ 108 | $ 73 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Operating Leases: | |||
Operating lease assets | [1] | $ 38,833 | $ 38,224 |
Current portions of operating lease liabilities | [1] | 5,935 | 5,829 |
Long-term portions of operating lease liabilities | [1] | 32,487 | 31,703 |
Total operating lease liabilities | $ 38,422 | $ 37,532 | |
Weighted-average remaining lease term | 13 years | 13 years | |
Weighted-average discount rate | 6.10% | 6% | |
Financing Leases: | |||
Energy assets | $ 28,314 | $ 29,365 | |
Current portions of financing lease liabilities | 1,631 | 1,992 | |
Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs | 13,504 | 14,068 | |
Total financing lease liabilities | $ 15,135 | $ 16,060 | |
Weighted-average remaining lease term | 14 years | 14 years | |
Weighted-average discount rate | 12.10% | 12.10% | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Energy assets, net | Energy assets, net | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current portions of long-term debt and financing lease liabilities | Current portions of long-term debt and financing lease liabilities | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt and financing lease liabilities, net of current portion, unamortized discount and debt issuance costs | Long-term debt and financing lease liabilities, net of current portion, unamortized discount and debt issuance costs | |
[1]Includes restricted assets of consolidated variable interest entities (“VIEs”) at June 30, 2023 and December 31, 2022 of $275,589 and $213,913, respectively. Includes non-recourse liabilities of consolidated VIEs at June 30, 2023 and December 31, 2022 of $153,715 and $50,729, respectively. See Note 13. |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Operating Leases: | ||||
Operating lease costs | $ 2,316 | $ 2,063 | $ 4,436 | $ 4,354 |
Financing Leases: | ||||
Amortization expense | 525 | 532 | 1,051 | 887 |
Interest on lease liabilities | 433 | 536 | 877 | 1,095 |
Total lease costs | $ 3,274 | $ 3,131 | $ 6,364 | $ 6,336 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flows (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 3,792 | $ 3,814 |
Right-of-use assets (“ROU”) obtained in exchange for new operating lease liabilities | $ 3,486 | $ 1,712 |
Leases - Minimum Future Lease O
Leases - Minimum Future Lease Obligations (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Operating Leases | ||
2023 | $ 4,344 | |
2024 | 7,475 | |
2025 | 6,187 | |
2026 | 3,990 | |
2027 | 3,072 | |
Thereafter | 31,317 | |
Total minimum lease payments | 56,385 | |
Less: interest | 17,963 | |
Present value of lease liabilities | 38,422 | $ 37,532 |
Financing Leases | ||
2023 | 1,832 | |
2024 | 2,565 | |
2025 | 2,213 | |
2026 | 2,054 | |
2027 | 1,922 | |
Thereafter | 17,891 | |
Total minimum lease payments | 28,477 | |
Less: interest | 13,342 | |
Present value of lease liabilities | $ 15,135 | $ 16,060 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) project | Jun. 30, 2022 USD ($) | |
Lessee, Lease, Description [Line Items] | ||||
Commitment for future lease payments for leases that do not yet meet the criteria of a ROU asset or liability | $ 10,500 | $ 10,500 | ||
Lease payments to be made over a period | 20 years | 20 years | ||
Net amortization expense | $ 57 | $ 114 | $ 57 | $ 114 |
August 2018 Long Term Finance Liability | Solar Photovoltaic Projects | ||||
Lessee, Lease, Description [Line Items] | ||||
Solar PV projects sold | project | 4 | |||
Investment fund call option exercise | $ 80,384 | |||
August 2018 Long Term Finance Liability | Solar Photovoltaic Projects | Revolving Credit Facility | Line of Credit | ||||
Lessee, Lease, Description [Line Items] | ||||
Available funding under lending commitment | $ 350,000 | $ 350,000 | ||
December 2020 Long Term Finance Liability | Solar Photovoltaic Projects | ||||
Lessee, Lease, Description [Line Items] | ||||
Solar PV projects sold | project | 3 | |||
Investment fund call option exercise | $ 9,201 |
Debt and Financing Lease Liab_3
Debt and Financing Lease Liabilities - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Financing lease liabilities | $ 15,135 | $ 16,060 | |
Total debt and financing lease liabilities | 1,138,476 | 915,677 | |
Less: current maturities | 332,999 | 331,479 | |
Less: unamortized discount and debt issuance costs | 21,211 | 15,563 | |
Long-term debt and financing lease liabilities, net of current portion, unamortized discount and debt issuance costs | [1] | 784,266 | 568,635 |
Enerqos | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 18,680 | 0 | |
Secured Debt | Senior secured term loans | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 295,000 | 295,000 | |
Secured Debt | Non-recourse term loans | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 377,468 | 255,403 | |
Financing Facility | Non-recourse long-term financing facilities | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 201,836 | 120,923 | |
Revolving Senior Secured Credit Facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 102,900 | 182,900 | |
Revolving Credit Facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Funds available for borrowing | 20,710 | ||
Revolving Credit Facility | Line of Credit | Non-recourse construction revolvers | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 127,457 | $ 45,391 | |
[1]Includes restricted assets of consolidated variable interest entities (“VIEs”) at June 30, 2023 and December 31, 2022 of $275,589 and $213,913, respectively. Includes non-recourse liabilities of consolidated VIEs at June 30, 2023 and December 31, 2022 of $153,715 and $50,729, respectively. See Note 13. |
Debt and Financing Lease Liab_4
Debt and Financing Lease Liabilities - Additional Information (Details) | 2 Months Ended | |||||||||
Jun. 30, 2023 USD ($) | May 31, 2023 USD ($) | Apr. 18, 2023 USD ($) lender | Mar. 31, 2023 USD ($) | Mar. 17, 2023 bank | Jun. 30, 2023 USD ($) | Mar. 31, 2023 CAD ($) | Mar. 30, 2023 USD ($) | Mar. 28, 2023 USD ($) note | Mar. 16, 2023 | |
Interest rate swap instruments | Designated | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notional amount | $ 14,084,000 | $ 14,084,000 | ||||||||
None-recourse Term Shelf Notes Due December 2047 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed interest rate, percentage | 5.99% | |||||||||
Number of notes | note | 3 | |||||||||
Original principal amount | $ 22,625,000 | |||||||||
Debt issuance costs | 282,000 | |||||||||
Debt discount | $ 3,123,000 | |||||||||
Term Loan Due March 28, 2028 | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed interest rate, percentage | 6.38% | 6.38% | ||||||||
Maximum borrowing capacity | 14,084,000 | |||||||||
Term Loan Due March 28, 2028 | Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | 899,000 | |||||||||
Term Loan Due March 28, 2028 | Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 359,000 | |||||||||
Revolving Credit Facility | Senior Secured Credit Facility, Revolver And Term Loans | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, number of banks | bank | 5 | |||||||||
Total funded debt to EBITDA covenant ratio, maximum | 4 | 3.50 | ||||||||
Debt service coverage ratio | 3.5 | |||||||||
Revolving Credit Facility | Non-recourse Fixed Rate Note Due May, 2038 | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed interest rate, percentage | 6.38% | 6.38% | ||||||||
Revolving Credit Facility | Non-recourse Fixed Rate Note Due October, 2037 | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed interest rate, percentage | 6.50% | 6.50% | ||||||||
Maximum borrowing capacity | $ 215,000,000 | $ 125,000,000 | ||||||||
Proceeds from lines of credit | 90,000,000 | $ 30,000,000 | ||||||||
Line of credit facility, additional borrowing capacity | $ 90,000,000 | |||||||||
Line of credit | $ 204,891,000 | $ 204,891,000 | ||||||||
Revolving Credit Facility | Non-recourse construction revolvers | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed interest rate, percentage | 2% | 2% | 2% | 2% | ||||||
Maximum borrowing capacity | $ 100,000,000 | |||||||||
Line of credit | $ 0 | $ 0 | ||||||||
Line of credit facility, availability period | 5 years | |||||||||
Revolving Credit Facility | Non-recourse construction revolvers | Line of Credit | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed interest rate, percentage | 1% | 1% | ||||||||
Debt instrument term | 1 year | |||||||||
Revolving Credit Facility | Non-recourse construction revolvers | Line of Credit | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed interest rate, percentage | 3% | 3% | ||||||||
Debt instrument term | 20 years | |||||||||
Revolving Credit Facility | Non-recourse Construction Credit Facility, Due July 2024 | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed interest rate, percentage | 6.54% | 6.54% | ||||||||
Revolving Credit Facility | Non-recourse Construction Credit Facility, Due July 2024 | Line of Credit | Corporate Joint Venture | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 140,844,000 | |||||||||
Proceeds from lines of credit | $ 90,921,000 | $ 15,113,000 | ||||||||
Number of lenders | lender | 2 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||||
Income tax provision (benefit) | $ 5 | $ 4,932 | $ (498) | $ 7,239 | |
Effective tax rate, percentage | 0.10% | 13% | (5.30%) | 12.20% | |
Unrecognized tax benefits | $ 450 | $ 450 | $ 450 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Gross Unrecognized Tax Benefits | |
Beginning balance | $ 900 |
Ending balance | $ 900 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 59 Months Ended | |||
Dec. 31, 2021 | Aug. 31, 2018 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | |
Loss Contingencies [Line Items] | ||||||
Increase (decrease) in contingent consideration | $ 155,000 | $ (320,000) | ||||
Chelsea Group Limited | ||||||
Loss Contingencies [Line Items] | ||||||
Contingent consideration, liability, revenue earn-outs, payment period (in years) | 4 years | |||||
Contingent consideration, liability, fair value at date of acquisition | 358,000 | $ 358,000 | $ 358,000 | |||
Payments of contingent consideration | 0 | |||||
Plug Smart | ||||||
Loss Contingencies [Line Items] | ||||||
Contingent consideration, liability, revenue earn-outs, payment period (in years) | 5 years | |||||
Payments of contingent consideration | 3,040,000 | |||||
Maximum cumulative earn-out | $ 5,000 | |||||
Contingent consideration, liability | $ 3,800,000 | 915,000 | $ 915,000 | $ 3,800,000 | ||
Increase (decrease) in contingent consideration | $ 155,000 |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Value of Assets and Liabilities Measured on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Total assets | $ 5,004 | $ 5,202 |
Liabilities: | ||
Total liabilities | 9,369 | 9,515 |
Level 2 | Interest rate swap instruments | ||
Assets: | ||
Total assets | 5,004 | 5,202 |
Liabilities: | ||
Liability derivatives | 0 | 9 |
Level 2 | Make-whole provisions | ||
Liabilities: | ||
Liability derivatives | 8,096 | 5,348 |
Level 3 | ||
Liabilities: | ||
Contingent consideration | $ 1,273 | $ 4,158 |
Fair Value Measurement - Change
Fair Value Measurement - Changes in Contingent Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Contingent consideration liability balance at the beginning of period | $ 4,158 | $ 2,838 |
Changes in fair value included in earnings | 155 | (19) |
Payment of contingent consideration | (3,040) | 1,614 |
Remeasurement period adjustment | 0 | (275) |
Contingent consideration liability balance at the end of period | $ 1,273 | $ 4,158 |
Fair Value Measurement - Fair_2
Fair Value Measurement - Fair Value and Carrying Value of Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt (Level 2) | $ 1,089,390 | $ 869,771 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt (Level 2) | $ 1,102,130 | $ 884,054 |
Fair Value Measurement - Narrat
Fair Value Measurement - Narrative (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value disclosure, nonrecurring | $ 0 | $ 0 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Details) $ in Thousands | Jun. 30, 2023 loan_facility contract | Mar. 31, 2023 USD ($) contract | Mar. 30, 2023 USD ($) | Dec. 31, 2022 contract |
Interest rate swap instruments | ||||
Derivative [Line Items] | ||||
Number of instruments held | 6 | |||
Number of instruments dedesignated | 1 | |||
Number of instruments prepaid | loan_facility | 1 | |||
Designated | Interest rate swap instruments | ||||
Derivative [Line Items] | ||||
Notional amount | $ | $ 14,084 | $ 14,084 | ||
Not Designated | ||||
Derivative [Line Items] | ||||
Number of instruments held | 2 | 2 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Fair Value of Derivative Instruments on the Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Derivatives Designated as Hedging Instruments | Interest rate swap contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | $ 1,676 | $ 1,748 |
Derivatives Designated as Hedging Instruments | Interest rate swap contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | 0 | 9 |
Derivatives Not Designated as Hedging Instruments | Interest rate swap contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 3,328 | 3,454 |
Derivatives Not Designated as Hedging Instruments | Make-whole provisions | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | $ 8,096 | $ 5,348 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Effects on Statements of Income (Loss) and Consolidated Statements of Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Loss (Gain) Recognized in Net Income | $ (424) | $ (1,067) | $ (261) | $ 555 |
Derivatives Designated as Hedging Instruments | Other expenses, net | Interest rate swap contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Loss (Gain) Recognized in Net Income | (222) | 360 | (211) | 841 |
Derivatives Not Designated as Hedging Instruments | Other expenses, net | Interest rate swap contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Loss (Gain) Recognized in Net Income | (338) | (759) | 182 | (2,021) |
Derivatives Not Designated as Hedging Instruments | Other expenses, net | Commodity swap contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Loss (Gain) Recognized in Net Income | 0 | (92) | 0 | 2,514 |
Derivatives Not Designated as Hedging Instruments | Other expenses, net | Make-whole provisions | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Loss (Gain) Recognized in Net Income | $ (86) | $ (216) | $ (443) | $ 62 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Effects of Derivative Instruments in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 894,772 | $ 736,211 | $ 873,031 | $ 704,264 |
Total other comprehensive income (loss) | 1,763 | (465) | 1,178 | 2,313 |
Ending balance | 873,983 | $ 781,567 | 873,983 | $ 781,567 |
Accumulated Gain (Loss), Net, Cash Flow Hedge | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 1,284 | |||
Unrealized loss recognized in AOCL | 163 | |||
Loss reclassified from AOCL to other expenses, net | (211) | |||
Total other comprehensive income (loss) | (48) | |||
Ending balance | $ 1,236 | $ 1,236 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Schedule of Active Derivative Instruments (Details) | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Designated | Interest Rate Swap October 2029 | |
Derivative [Line Items] | |
Term of contract, years | 11 years |
Fixed interest rate, percentage | 5.77% |
Initial Notional Amount ($) | $ 9,200,000 |
Designated | Interest Rate Swap June 2033 | |
Derivative [Line Items] | |
Term of contract, years | 15 years |
Fixed interest rate, percentage | 5.24% |
Initial Notional Amount ($) | $ 10,000,000 |
Designated | Interest Rate Swap - December 2027 | |
Derivative [Line Items] | |
Term of contract, years | 10 years |
Fixed interest rate, percentage | 4.74% |
Initial Notional Amount ($) | $ 14,100,000 |
Designated | Interest Rate Swap - June 2028 | |
Derivative [Line Items] | |
Term of contract, years | 8 years |
Fixed interest rate, percentage | 3.49% |
Initial Notional Amount ($) | $ 14,643,000 |
Designated | Interest Rate Swap - June 2028 | |
Derivative [Line Items] | |
Term of contract, years | 8 years |
Fixed interest rate, percentage | 3.49% |
Initial Notional Amount ($) | $ 10,734,000 |
Designated | Interest Rate Swap - December 2040 | |
Derivative [Line Items] | |
Term of contract, years | 7 years 9 months |
Fixed interest rate, percentage | 3.16% |
Initial Notional Amount ($) | $ 14,084,000 |
Not Designated | Interest Rate Swap March 2033 | |
Derivative [Line Items] | |
Term of contract, years | 13 years |
Fixed interest rate, percentage | 0.72% |
Initial Notional Amount ($) | $ 9,505,000 |
Not Designated | Interest Rate Swap March 2033 | |
Derivative [Line Items] | |
Term of contract, years | 13 years |
Fixed interest rate, percentage | 0.72% |
Initial Notional Amount ($) | $ 6,968,000 |
Not Designated | Make-whole Provisions December 2038 | Other liabilities | |
Derivative [Line Items] | |
Liability derivatives, fair value | 566,000 |
Not Designated | Make-whole Provisions April 2031 | Other liabilities | |
Derivative [Line Items] | |
Liability derivatives, fair value | 76,000 |
Not Designated | Make-whole Provisions February 2034 | Other liabilities | |
Derivative [Line Items] | |
Liability derivatives, fair value | 59,000 |
Not Designated | Make-whole Provision December 2027 | Other liabilities | |
Derivative [Line Items] | |
Liability derivatives, fair value | 51,000 |
Not Designated | Make-whole Provision May 2028 | Other liabilities | |
Derivative [Line Items] | |
Liability derivatives, fair value | 16,000 |
Not Designated | Make-whole Provision April 2045 | Other liabilities | |
Derivative [Line Items] | |
Liability derivatives, fair value | 144,000 |
Not Designated | Make-whole Provision March 2046 | Other liabilities | |
Derivative [Line Items] | |
Liability derivatives, fair value | 2,963,000 |
Not Designated | Make-whole Provision March 2042 | Other liabilities | |
Derivative [Line Items] | |
Liability derivatives, fair value | 1,157,000 |
Not Designated | Make-whole Provision December 2047 | Other liabilities | |
Derivative [Line Items] | |
Liability derivatives, fair value | $ 3,064,000 |
Variable Interest Entities An_3
Variable Interest Entities And Equity Method Investments - Schedule of Variable Interest Entity Financial Information (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |||
Current assets: | |||||||
Cash and cash equivalents | [1] | $ 48,999 | $ 115,534 | ||||
Restricted cash | [1] | 39,137 | 20,782 | ||||
Accounts receivable, net | 123,361 | [1] | 174,009 | [1] | $ 207,990 | $ 161,970 | |
Costs and estimated earnings in excess of billings | 575,113 | [1] | 576,363 | [1] | $ 663,798 | $ 306,172 | |
Prepaid expenses and other current assets | [1] | 58,874 | 38,617 | ||||
Total current assets | [1] | 921,867 | 1,001,351 | ||||
Property and equipment, net | [1] | 16,888 | 15,707 | ||||
Energy assets, net | [1] | 1,417,690 | 1,181,525 | ||||
Operating lease assets | [1] | 38,833 | 38,224 | ||||
Restricted cash, non-current portion | [1] | 13,677 | 13,572 | ||||
Other assets | [1] | 43,223 | 38,564 | ||||
Total assets | [1] | 3,041,010 | 2,876,821 | ||||
Current liabilities: | |||||||
Current portions of long-term debt and financing lease liabilities | [1] | 332,999 | 331,479 | ||||
Accounts payable | [1] | 290,284 | 349,126 | ||||
Accrued expenses and other current liabilities | [1] | 81,008 | 89,166 | ||||
Current portions of operating lease liabilities | [1] | 5,935 | 5,829 | ||||
Total current liabilities | [1] | 752,249 | 812,068 | ||||
Long-term debt and financing lease liabilities, net of current portion, unamortized discount and debt issuance costs | [1] | 784,266 | 568,635 | ||||
Long-term operating lease liabilities, net of current portion | [1] | 32,487 | 31,703 | ||||
Other liabilities | [1] | 70,175 | 49,493 | ||||
Variable Interest Entity, Primary Beneficiary | |||||||
Current assets: | |||||||
Cash and cash equivalents | 7,472 | 10,107 | |||||
Restricted cash | 0 | 799 | |||||
Accounts receivable, net | 0 | 590 | |||||
Costs and estimated earnings in excess of billings | 22,595 | 952 | |||||
Prepaid expenses and other current assets | 2,374 | 14,322 | |||||
Total current assets | 32,441 | 26,770 | |||||
Property and equipment, net | 379 | 89 | |||||
Energy assets, net | 236,759 | 182,050 | |||||
Operating lease assets | 5,851 | 4,901 | |||||
Restricted cash, non-current portion | 73 | 73 | |||||
Other assets | 86 | 30 | |||||
Total assets | 275,589 | 213,913 | |||||
Current liabilities: | |||||||
Current portions of long-term debt and financing lease liabilities | 2,185 | 2,087 | |||||
Accounts payable | 19,493 | 8,055 | |||||
Accrued expenses and other current liabilities | 4,012 | 12,559 | |||||
Current portions of operating lease liabilities | 215 | 117 | |||||
Total current liabilities | 25,905 | 22,818 | |||||
Long-term debt and financing lease liabilities, net of current portion, unamortized discount and debt issuance costs | 120,989 | 19,177 | |||||
Long-term operating lease liabilities, net of current portion | 6,085 | 5,159 | |||||
Other liabilities | 736 | 3,575 | |||||
Total VIE liabilities | $ 153,715 | $ 50,729 | |||||
[1]Includes restricted assets of consolidated variable interest entities (“VIEs”) at June 30, 2023 and December 31, 2022 of $275,589 and $213,913, respectively. Includes non-recourse liabilities of consolidated VIEs at June 30, 2023 and December 31, 2022 of $153,715 and $50,729, respectively. See Note 13. |
Variable Interest Entities An_4
Variable Interest Entities And Equity Method Investments - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 USD ($) joint_venture | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) joint_venture | Jun. 30, 2022 USD ($) | |
Variable Interest Entity [Line Items] | ||||
Distributions to redeemable non-controlling interests, net | $ 338 | $ 561 | ||
Earnings from unconsolidated entities | $ 380 | $ 352 | $ 830 | $ 989 |
Non-recourse Construction Credit Facility, Due July 2024 | Line of Credit | Revolving Credit Facility | ||||
Variable Interest Entity [Line Items] | ||||
Fixed interest rate, percentage | 6.54% | 6.54% | ||
Corporate Joint Venture | ||||
Variable Interest Entity [Line Items] | ||||
Distributions to redeemable non-controlling interests, net | $ 922 | |||
Number of JV | joint_venture | 1 | 1 | ||
Distributions to non-controlling interest | $ 20,521 | |||
Earnings from unconsolidated entities | $ 622 | $ 1,044 |
Variable Interest Entities An_5
Variable Interest Entities And Equity Method Investments - Investment in Joint Ventures (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Equity method investments | $ 11,900 | $ 10,855 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator: | ||||
Net income attributable to common shareholders | $ 6,368 | $ 32,216 | $ 7,470 | $ 49,600 |
Adjustment for accretion of tax equity financing fees | (28) | (27) | (55) | (54) |
Income attributable to common shareholders | $ 6,340 | $ 32,189 | $ 7,415 | $ 49,546 |
Denominator: | ||||
Basic weighted-average shares outstanding (in shares) | 52,127 | 51,818 | 52,045 | 51,781 |
Effect of dilutive securities: | ||||
Stock options (in shares) | 1,084 | 1,355 | 1,187 | 1,626 |
Diluted weighted-average shares outstanding (in shares) | 53,211 | 53,173 | 53,232 | 53,407 |
Net income per share attributable to common shareholders: | ||||
Basic (in usd per share) | $ 0.12 | $ 0.62 | $ 0.14 | $ 0.96 |
Diluted (in usd per share) | $ 0.12 | $ 0.61 | $ 0.14 | $ 0.93 |
Potentially dilutive shares (in shares) | 1,961 | 2,798 | 1,939 | 2,232 |
Stock-Based Compensation - Comp
Stock-Based Compensation - Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||||
Stock-based compensation expense | $ 3,962 | $ 3,675 | $ 7,999 | $ 7,206 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) shares in Thousands, $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested stock options unrecognized compensation expense | $ | $ 43,239 |
2020 Stock Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options granted in period (in shares) | 100 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-average period | 2 years 6 months |
Stock Options | 2020 Stock Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options, contractual period | 10 years |
Stock options, vesting period | 5 years |
Restricted Stock Units (RSUs) | 2020 Stock Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards granted in period (in shares) | 66 |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 327,074 | $ 577,397 | $ 598,116 | $ 1,051,399 |
(Gain) loss on derivatives | (424) | (1,067) | (261) | 555 |
Interest expense, net of interest income | 6,251 | 4,686 | 10,604 | 8,639 |
Depreciation and amortization of intangible assets | 15,589 | 12,851 | 29,440 | 25,508 |
Income before taxes, excluding unallocated corporate activity | 25,549 | 55,478 | 45,446 | 92,992 |
U.S. Regions | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 138,985 | 397,385 | 263,354 | 711,905 |
U.S. Federal | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 80,019 | 101,428 | 139,575 | 177,074 |
Canada | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 15,195 | 14,461 | 33,606 | 31,633 |
Alternative Fuels | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 30,316 | 29,192 | 58,655 | 58,453 |
All Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 62,559 | 34,931 | 102,926 | 72,334 |
Operating Segments | U.S. Regions | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 138,985 | 397,385 | 263,354 | 711,905 |
(Gain) loss on derivatives | (125) | (261) | (428) | (34) |
Interest expense, net of interest income | 1,715 | 1,883 | 3,118 | 3,525 |
Depreciation and amortization of intangible assets | 6,704 | 5,298 | 12,753 | 10,576 |
Income before taxes, excluding unallocated corporate activity | 10,284 | 32,840 | 18,240 | 51,058 |
Operating Segments | U.S. Federal | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 80,019 | 101,428 | 139,575 | 177,074 |
(Gain) loss on derivatives | 66 | 0 | 4 | 0 |
Interest expense, net of interest income | 288 | 315 | 586 | 621 |
Depreciation and amortization of intangible assets | 1,234 | 1,213 | 2,459 | 2,458 |
Income before taxes, excluding unallocated corporate activity | 8,887 | 12,011 | 14,099 | 20,897 |
Operating Segments | Canada | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 15,195 | 14,461 | 33,606 | 31,633 |
(Gain) loss on derivatives | 39 | 45 | 47 | 96 |
Interest expense, net of interest income | 182 | 313 | 364 | 535 |
Depreciation and amortization of intangible assets | 409 | 430 | 814 | 877 |
Income before taxes, excluding unallocated corporate activity | 1,189 | 1,012 | 1,921 | 1,291 |
Operating Segments | Alternative Fuels | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 30,316 | 29,192 | 58,655 | 58,453 |
(Gain) loss on derivatives | (404) | (851) | 116 | 493 |
Interest expense, net of interest income | 3,436 | 2,193 | 5,787 | 3,983 |
Depreciation and amortization of intangible assets | 6,205 | 5,651 | 12,073 | 11,067 |
Income before taxes, excluding unallocated corporate activity | 3,110 | 6,476 | 6,625 | 13,898 |
Operating Segments | All Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 62,559 | 34,931 | 102,926 | 72,334 |
(Gain) loss on derivatives | 0 | 0 | 0 | 0 |
Interest expense, net of interest income | 630 | (18) | 749 | (25) |
Depreciation and amortization of intangible assets | 1,037 | 259 | 1,341 | 530 |
Income before taxes, excluding unallocated corporate activity | 2,079 | 3,139 | 4,561 | 5,848 |
Unallocated corporate activity | ||||
Segment Reporting Information [Line Items] | ||||
Unallocated corporate activity | $ (17,131) | $ (17,673) | $ (35,974) | $ (33,582) |
Other Expenses, Net (Details)
Other Expenses, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Other Income and Expenses [Abstract] | ||||
(Gain) loss on derivatives | $ (424) | $ (1,067) | $ (261) | $ 555 |
Interest expense, net of interest income | 7,222 | 6,558 | 14,415 | 11,047 |
Amortization of debt discount and debt issuance costs | 1,575 | 1,184 | 2,365 | 2,036 |
Foreign currency transaction loss (gain) | 150 | 598 | (7) | 714 |
Government incentives | (577) | (2,024) | (523) | (2,022) |
Factoring fees | 1,252 | 0 | 1,252 | 0 |
Other expenses, net | $ 9,198 | $ 5,249 | $ 17,241 | $ 12,330 |