AMRC - Earnings call transcript Q3 2018

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Operator

Good day, ladies and gentlemen, and welcome to the Q3 2018 Ameresco, Incorporated Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, today’s conference is being recorded. I would now like to turn the call over to Gary Dvorchak. begin. may you Sir,

Gary Dvorchak

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

Interim Joining Chairman, Executive Chiplock, President, here and Financial me are Chief Officer; George and Sakellaris, Ameresco's Chief Officer. Mark

financials that the review financial we and review and will George a of questions. deck operating quarter, Note First, the take information. have Mark highlights will the we will supplemental finally with

deck our that download from website. can Relations of the You section Investor

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

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

George Sakellaris

you, Thank and good everyone. morning Gary

to Vice our XXXX I begin John's introduce His of Mark with us want operations finance experience manage and him senior and with in after in the been our since quickly an we step to important familiarity role to team enabled financials President Mark. playing Finance as Before has Controller. quickly departure.

a we the search in permanent progress have search We CFO for forward to reporting look underway and ahead. the months a on

into and which control streetlight this Now especially focus grew exceed growing continued share We better outstanding Revenue as combined income of revenue growth were the margin equipment due contribution profits on very QX Net XX%. as The and let and than Nevertheless, operation up XX%. business growing project us and XX%. per of up from QX. development maintenance Chicago profitability project had quarter. enabled Earnings gross growing project, momentum a backlog. was only slightly the EBITDA of slippage with to adjusted well to revenue. shortage discuss the in results, also growth large up XX% was strong, mix a a for faster sales of energy

Our Total $X.X visibility backlog Awarded backlog is to to solid, to continued billion, grew XX%. XX% improve. project billion. up over up $X

million, While was of contracted high a $XXX up backlog XX%. record

we emphasize to the of things adding service. Performance our constantly also reflected quarter because business are XMW model. We this they development into to solar XXMWe and asset important grew energy portfolio two putting

and The our development, Complexity backlog. first energy is size of complexity to our and competitive and the strength the infrastructure projects plays design growing technical construction projects. in of in these financing

repeat thing business. second winning continued our success in The is

the operation with and business specifically recurring now model renewable years sales and with been revenue, energy emphasis driving we maintenance. several For have towards Ameresco

two I this that winning is in we In model. more exemplify to our infrastructure and quarter signed attractive highlight contracts addition, major business progress towards want Ameresco energy repeat business steadily this projects.

which call York New NYCHA. Housing The we project, City first is Phase X of the Authority

additional months Phase ESPC operation of Antonio and the in million revenue implementation revenue $XXX over San Base X Joint the will XX to XX with years. Ameresco over is second maintenance Project. next The NYCHA design over deliver and

consists as revenue As saving in X $X.X Managing of larger who record revenue and NYCHA with with successful annually. XX,XXX of in the of an average project critical needs NYCHA $XX produced Base deliver XMWH be generation, [life it Once will force complete residents, us backup $XXX This The million of will more installing be excellent assets will a is to have the year-end disruption and an as for base Ameresco. NYCHA. improvements substantially of of project opportunity subcontractors for over and is million aggregate, minimizing complete Army on-site this organizations phases generation ESPC for over be in XXMW customer even The The a any well XX Texas. resource infrastructure to security three and Joint project. X work bases track developments energy complex NYCHA number improvements while administered to betterness] battery will San Ameresco. project central impact two be complex position Phase to of air measures. and energy includes joint apartments by significant implemented energy residents. our close save Ameresco including security initial includes infrastructure of an as and Antonio repeat are the well million In employing storage. centrally has expected system. Phase future will to

revenue that $XXX In an measures should over million Defence. XX enhanced total, years this with Furthermore, the awarded Base another and as the business conservation year. and Department this us at Joint Marine system. control this project and Island central Ameresco. repeat of with for adding for many includes project IDIQ years plant upgraded storage maintenance the Antonio be energy the for system. enhanced This closed approximately control were produced capacity projects project an Depot XXX extended direct of be has across earlier there digital of This such of under conservation of the distribution will our controls, framework. Parris million and over Energy implemented implemented over X.X visibility. example XX thermal $XX Department [VA] control, great generate to recent next long-term operation will upgraded projects We systems of is XXX,XXX is framework All attractive include San measures integrated upgrades, the LED us buildings. managed via Other

Of two beyond course, these our repeat projects. business extends

business of winning as LED phase also project an third focused awarded the client, the second repeat were our are in regions [higher the strategic Texas, one education] We project. of In Southwest. streetlight just we well as with

According recently an of of were the streetlight awarded to that in X I On you beyond largest buy a project energy also trend report, Ameresco LED the am terms tell more We any to than Phase we United subject other as well. the more in is comprehensive non-utility purchaser U.S. to on more streetlights complicated company projects in States California. extends in the larger published report, and services based projects that proud streetlight U.S. The LED

in the [Complex] have National past, with million. getting gaining traction the valued at well. awarded are as a larger we United we projects Health project noted Those As in are Services $XX the Kingdom. We've recently

awarded are the million. initial the We Manchester of is City at additional the for that also phase has of phases. valued a potential with Manchester $XX project

first through our Health current project operation Services with UK portfolio to on building our National in implementation our sources. facility, the U.S. with secured our Consistent we [Western] are follow business UK. in with and project revenue focused the project both the we and a maintenance contracts on As

sales Enforcement renewable recurring of QX, XMW On X.XMW during Drug Fort for revenue, the into for which Texas. subject placed Facility located service of energy at we includes solar the Administration Bliss,

to not had operations projects. originally commence as year-end. of this we our delays, these are the Naturally type gas but plant renewable bit denounced for planned. in and operations at some Phoenix encountered in we we However, we issues delays a additional disappointed expect are administrative unusual now We these before

over This Our $XXX We assets of sales consists the contract produce estimate energy shape. in of revenue very period. the is incentives portfolio our of portfolio current million next XX years. from energy during that least asset number can plus at solid operating revenue

sell will not current not Furthermore, this Of any it yet contracted is future reflected which materially revenue as does the energy periods, development. expect to or under course, grow include estimate in beyond assets number. this we

In healthier. elaborate and me which our fact, healthy development pipeline, let is on getting

and During in XXXMWe the to months. the have XX next QX, XX pipeline be to we expect we added operational XXMWe now that to

anticipate Phoenix, green one project have we to in gas operations we start that addition to that In frame. time

financial in I We more projects of also in our various performance. that have call for stages on Mark? are now Mark to will our these that, not yet early the With over to five seven development comments metric. turn formal

Mark Chiplock

good you, morning, everyone. and George, Thank

we are factors are results. the I press all Our Instead, so I'm need, to figures the figures, say comparisons the analysis Keep QX going numbers. the slides all otherwise, all of contain and going repeat comparisons supplemental influence to focus that on year-over-year. the mind not in are you that we to unless release referring and and

was the profitability and mentioned, quarter Gross George As was expectations. margin excellent performance solid. exceeded

strengthened also balance We are to a set we up We the believe strong finish year. the for sheet.

variable strong performance energy income operating resulted In let's The continuing and in than margins the from than offset theme margin margin far higher they and mix to energy Similarly as The also quarter-to-quarter. O&M project OpEx, corporate gross in profit. are sales. execution Gross earnings revenue. grew will operating of was natural average controlled as recurring go closeouts. through strong long-term contrast, than from margin. revenue. revenue lines higher first. excellent energy was in and was Revenue flowed sales, the EPS bit grow project sales higher continue that time, slightly our to through net faster So which high to better adjusted give growing up a more O&M by profitability supported lift Over slower income, project some driven and of business statement EBITDA gross rock solid these project variability margin we by

Now, cash sheet the let's review flow, remain strong. quickly balance which and

most capital. optimize in doubled from than and we GAAP adjusted cash down more was was $XX impacted sequentially. balance The flow change which approximately cash Cash principal million. operating was regard to that while operating income Our million, meaningfully. ongoing cash $XX working was brought flow efforts by operations receivables,

construction gross we in development of paid Turning revolver including facility. for our sale of funding, and under two million $XX committed master the assets. ample assets, leaseback our to in energy corporate financing and transactions We raised first available down non-recourse brand-new have million QX our liquidity energy the to fund proceeds $XXX

outstanding issues Our project we future have confident no we in are and project financing. raising is team will finance

the now raising of $XXX adjusted anticipated million. of in We range earnings is XXXX Finally, range guidance. expect in our outlook, while should revenue the the million. range million $X.XX, of $XX the come to $XX to $X.XX to turning million full year still in in EPS are to we $XXX EBITDA

want to of I you couple give So a reminders.

we that First guidance requires begin convert some achieving to recognizing us our so revenue. awarded the backlog contracts can of annual to

fourth-quarter anticipate we to on to Second, revert of mix. anticipated historical around norm based XX% our our gross margin revenue

want shape While detailed how I on color not some year we based on XXXX providing at our up guidance point, current to are share forecast. the do should this

expect to We our grow than faster revenue compound somewhat average. recent

and We leverage to recurring high than revenue also committed the faster growing of operating contributions through business. from remain continued earnings lines margin

like the Q&A session. line to call your we the over Now, turn Mark, to for our I'll the back run would coordinator, open questions. to

Operator

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

Your line is open. now

Unidentified Analyst

This Hi, Noah. good is [indiscernible] morning. for

George Sakellaris

Good morning.

Unidentified Analyst

Hi.

better revenue drivers guidance are margin your better EBITDA the you help for your getting raising cost you the profit can where keeping are key on us the intact, understand outperformance line, control? outlook, You but

Mark Chiplock

Yes, sure.

on guidance the So, revenue first. the let me about talk

range that the So, and that need same, from still that. with we awarded keeping backlog sensitivities to convert we around the respect the to projects consider

into to QX. we Keep that much project Chicago QX. of equipment could in and and revenues had impacted QX be shortages revenue during our that the on by into mentioned streetlight to delays is in come going impacting were also consider we still are We how seasonality mind which recovered the play

So those revenue. sensitivities went into all for our of

our Additionally, to in had comes production. we plant, on to that time RNG QX, ramp anticipated in QX going Phoenix online up need which it once coming still is

have we in margin respect to would of revenue more felt as that some performance with Chicago is to QX. delay QX. changing to earnings those And came is we considered guess those a to across be we bit closeouts guidance, ranges. Part that So upside streetlighting strong project really the lower and certainly from we the closeouts some respect With on and out that into push the where saw QX. going we mentioned with came were revenue QX. I balanced QX expected comfortable

in. was expenses So, to come we where where some the ran as of operating see land well sensitivities see we mix could going revenue as to

raise to we ranges kind sensitivities ranges, some the with. again I strong the help the how to of that the came So that up use where think is temper got comfortable we we of and performance but some with I think of

Unidentified Analyst

Okay on another capacity you saw that sheet, service expect solar assets that of in how additions is balance can also update you are place project helpful the the fiscal and us XXXX? increase sizable we for megawatts this and thinking on in you about total year, to

George Sakellaris

and had install XXMW during new XMW sheet, installed would slipped far with can this start install quarter. about of associated we projects to we that XMW I so asset into that. the we Originally our we have that XXMW was the the XXMW of we plant and next Phoenix have original quarter but installed And we would estimated solar. the that plan that balance

constructed actually XXMW the to anticipate end by on they that particular XXMW XXMW interconnection of already In of the six we last to had interconnected that encountered We utility some months addition to the is about we will delays for the those year. the that, – in which have XXMW, be plans.

might the pretty range to out by remarks add of And have forward going in next we pipe of XX we Mark, to good I to will the you in And as to my the XX. then something pointed So year. have end it. actually year want

Mark Chiplock

to think into mean certainly put looking we expect I additional I equivalents as megawatt Yes. operations. forward we're some

but grow. that We haven't we certainly guidance set on specific expect that to

Unidentified Analyst

seeing movement Thanks ESPC rates? type with finance rates then the are lastly interest Okay. you tighter getting how project and much in

George Sakellaris

a have a bit very competing doesn’t any impacted we People particular are our little have sources rates finance Every The project it projects. good projects. going capital. to we're of gone time for up materially have the but

few a and million XXX get require they and it's forward, feel and in would a it if but our overall very-very have we they say materially good looking and in have we're not business million impacted come self-funded maybe down for at have will kinds maybe bucks been $XXX XXX order what let’s project Sometimes our or projects will looking we of backlog the that to shape. financing,

Unidentified Analyst

you very day. Good Thank Okay. much.

Operator

Partners. our of next And line from Irwin the ROTH of Craig comes question Capital

Your now open. line is

Craig Irwin

questions. thanks morning taking Good for my and

George Sakellaris

Good morning Craig.

Craig Irwin

Good morning.

projects different prepared gas you in of remarks state on five maybe you your in projects as George, the So supply us gas some agreements far give development. mentioned color additional green see any from these [landfills] Can status of a The move gas make sources. items versus these is projects or number other for other key potential no-go go to green over permitting on next that you the years? as

George Sakellaris

question. good Well,

dates takes specific us from particular five will months. plants which well And the are advanced where these We be we think of this take to the two understand can development. anywhere to it plants up up good they get have them they're XX addition mentioned seven. end are. say that to in awarded advanced year the Two we and giving before plants And are the how feel year. will backlog we five but primitive. projects in I probably and they are months we you the of to running the other get XX not why development them of permits running, will then California next I two as in that very early it see stage located we within entering I stage and see of and as one in Both That's of that that our to to are pretty long those

a coming year, impact So you would other it then another XXXX-XXXX next after. will the but you probably were year, on XXXX plan you get next will and Texas Otherwise running have see to we earnings probably plants year any your early behind. year business plant the material are won't up have and develop like if a they further XXXX two plants XXXX and late other next late the

we we and capital that reduced And be put various the to we solar will solar the requires we we wanted with the think and We of of of depreciation. people the over gas other excellent own a monetize much renewable the to a of the on especially of landfill we being amount has XX% lower will though up. develop term fixed say much contract much in business, the great I gas and rest years the pipeline able as because this In the as that past good prices if a green as the term be own far comes have such we have But you moved continues and on come will we prices but try balance. course will green business development present the the As the when and merger business. will probably the would will the, the in great otherwise is the that to-date a output course market we you know especially that you longer were prices they on solar. pretty to plants get more, the have of the I maximize relationships end contracts stand assets you sites next to it how to it's had in how for when where couple Woodland than put is California. even inversion. the and we possibly capital get is on of agreements, try very emerging side ITC what that It the this rim long balance, to rims would see term down with plant. we accelerated than would have getting where much [rims] we minimum get we to get in capital the in because in with We

the business is question pipeline very aspects. I hope healthy but I So development answered your

Craig Irwin

you helpful. very George. Thank was that Yes,

next shakedown my EBITDA in you brought your XX contribution? EBITDA of How color is plants Can is time. plants So that completed and on us in contribution much was plants efficiency these online. maybe the over understanding The September the that give quarter? June My the is the versus of green up. incrementally sequential The goes the your quarter have last gas on the question about the over increases months. contribution greater you operating EBITDA come plants

Mark Chiplock

Yes.

have we is the sequentially can So to QX that plant operations Craig million, we mean That QX. saw probably our QX. originally Phoenix happen. $X.X tick plant for spoke think $X in did incremental from we that think million that, I we not I Mark. come about I one green gas expected an QX up slide this had in answer to for to going about I online to That's

So I the million we million in saw one $X.X incremental pickup we have probably think that to the from quarter. about $X

Craig Irwin

– one smaller the historic historic that's the was that you that basically And other the have flat? much one

Mark Chiplock

Yes.

Craig Irwin

Okay.

George Sakellaris

That [indiscernible].

Craig Irwin

you. thank – then and you Thank

my years convert we shifting then Any maybe what last year higher color is on a update the as margin were trending looking I question far an couple us guess you've goes potential maybe a earnings the versus but on the at sort – you timeline character benefit. what some two sizes ago? the at ago? last then individual backlog of interesting is the has about how an you potential the talked of over now maybe or larger give Can where So a of years year as a dynamic the to backlog project risk see project two or as bit kind and versus of also little on see calls, that of could

George Sakellaris

complex in they would per the profitability because lower a project projects been profitability generally you have is, contribute two them though not and have development either for And per to expenditures projects so non-so-complex the complex on Otherwise, and I they they question it manager company no a maintenance, but larger; engineer for that overall get the margin margin about larger the less leverage. put put I and they those the I project category. a company the in we EBITDA the are but have than projects projects higher as put One classes. more the employee to per operation or operational measures, of both for on. complex Yes.

helps or far and in where the margin mix it to do forward backlog. minus overall substantially made plus think the the different will were for we point not say I it back and on doesn't the let's profit looking of that change too to normally and pivot XX%. even as project one the Maybe quarter have as it is company XX% leverage materially margin, it Mark fourth of XX%, his analysis have So we around the gross we but remark our we what

margin the more course overall changes revenues So higher to asset annuity that profit looks the larger the and company major from base then we anticipate primarily because our projects. the perspective. don't of margin of And better and gross the and complex the

Craig Irwin

Congratulations Great. the Thanks questions. on strong quarter. again for taking my

George Sakellaris

Thank very you much Craig.

Operator

[Operator Riley Instructions] Our FBR. next of the from question Carter of Driscoll line B. comes

Your open. now line is

Carter Driscoll

George, Mark. for Good questions. morning Thanks my taking

The is on side. maybe first solar on one the

returns of lot installers have So Are you that have obviously project price any those and pressure. steady. from a maybe return benefit seeing degradation solars seeing or from a bring then any and just to and resumption I couple fairly pressure then Are environment characterize down maybe been seeing of you component the we pricing are follow-ups.

George Sakellaris

group and ourselves. buy prices and like the are The we the came overall on will went XX. down but projects. cost those return have a And good hire we course in in the our being because as job we're we we [indiscernible] of execute subcontractors they up coming well to competitive course marketplace implementation helps I own we particular of bringing And think solar the doing down, plants, to pretty in the build sometimes panels the that order

back to is which XX very they down good. Now

those because why as And to for measured. in and and in that's way we the are are would projects the say of growing but they what and capital I this large that what good front down. balanced large, very very return good a but houses it's very bringing for from So competition it's looking returns business especially competitive is it's

change not returns will We houses go. where will we the to some the of large

limited a are the to us for wise that we have self investments of have for. to relationship. a got make It thereby and and good capital looking itself we returns projects amount We we Ameresco get across develop infrastructure customer have and going [claims] the but we're

Carter Driscoll

Yes.

no fundamental real returns to costs the pressure for with on change relatively at So down coming commensurate least side? the

George Sakellaris

are The that costs own higher means a you project will down have house the returns able from but coming the to is competition other on to out. which such but wanting side financial be hopefully if the the a competition little it bit asset themselves balances get

Carter Driscoll

Okay.

George Sakellaris

down hand now. On projects out the solar the is the other it though they does it expand market battery coming It pencil what out did pencil though. not before in do happens and storage expands market --

Carter Driscoll

on talk solar magnitude to the say reduction [micro-grid] drive you attach about really the battery prices opportunities? greater you see particularly Can of to need rates to for

George Sakellaris

In so and otherwise and they find depends and drop per are a a so part from say batter But and KW a per installations of for utility or between they installed out implication charges where storages. and people That's regulation of sense need pay demand or forth. demand on bigger for from are where frequency we getting installation and where the reduction incentives what without hour. the is utilities and X we will great will though XX% install us the to to I it for hand applications, of the other pencil where the are a they are some batteries contract be they now couple we are Y particularly but storage resiliency make of installation security. the bigger you particular because It looking there KW on some even better where they have other right on the what or battery amount would and want various that implications a pay in

Carter Driscoll

higher a level question. Maybe

the in in your obviously in and Is you that part at a business quantify slipped way when a I quarter project way variability it one subject to single range quarter natural If quantify just that's Is project? the just type of falls. look there quarter amount of of this two terms it's a that the, that? of there to maybe this mean our any to or whether maybe any some is type say size maybe little of by not backlog to variability

George Sakellaris

to by year-to-date board wasn't for some that it with get various reasons. lumpy had and can people us three we but because didn't to the quarter this on approved built-in go that agenda and had we guide then happened XX but available project very [indiscernible] and moved past months at construction were or because something least some and nothing to the this to It get particular you It's months. even at I tell under business. look delays projects it very tried do to access would three tell hard it's and the I you I supposed that's to-date meeting. for example why for months

are historical year-to-date So lumpy growth a I especially XX% X% that people so grown the and I quarters revenues revenue. and took a try year-to-date feel XX%. were our good certain that tell and revenue far the we business have to where the It's of that's we portion why but three very after over put

being not exactly it we on to to So able – the we're and know because impossible. lost it's dollars way normal delay determine but of a that the of amount we do

Carter Driscoll

Yes. I understand.

Mark Chiplock

average of projects. taking mean it's add is some still of longer. past to the can that to length terms there of anywhere months there. backlog even conversion larger of our kind of awarded take up projects XX as XX the about in months the in we've convert variability I these going to going We're about seeing in talked Yes, time and the be I’m

some again variability. So to that's create going

George Sakellaris

sometimes executor we fallen backlog we feel our to that's year moving the where short. right world that's the we category be we to That's award that point, with have $XXX because that now fact a why a [accent] we bring to were over we will and driver the very they the the have next and make estimate to contracted forecast I flip then they let's of good on that million the say backlog good we is why when And we for less shape. are contracted hopefully next the better up interesting today category When has in and contracts from when year been company good why the on for where we'll predict. contracted the very is difficult very quarter very we can depend and build the of various

Carter Driscoll

or extend you're different lead Are of terms natural times is forecasting. Maybe that extending shortages that built what your you to other ask any months seeing XX component there I in that or shortages whether longer part that could of way. maybe envision in slightly will contribute equipment you

George Sakellaris

the controls than street weeks XX at been and four the available had it's at then to in weeks it with Other not that resistors we now to delivery lighting delivery went do and were schedule. capacitors in and all getting job and

So basically transformers Other it's in to project. the extension quarter. the some schedule revenue fourth we of of we we some than impact That's of plants. going quarter on and the third particular solar that delivery the of why that stretch revenue have out the impacted the in step-up seen

Carter Driscoll

Okay.

George Sakellaris

months two has interconnections. actually been that those utility Massachusetts The XX is control mechanic I the for especially they're they've one eight utilities in other total we the and that now. and complete been in a And [our] overwhelmed it challenge have projects mentioned megawatts

Carter Driscoll

have just employees, any have have simply your been you I any, hiring, lost to market, job but employee key contracted a tight you pressures lost on pressure have any staff mean Any there? of not

George Sakellaris

Not really.

company people and pretty what call and the market opportunity good, doing advanced it's I engineers that because they fact technologies all development not on familiar get engineers We with and developers and so lights, them that the and change I relatively. on. actually and the the we well do grown is the get think our good so It's and but only turnover doing to and to than challenges challenged business chillers for has just boilers more are

we of job fun more a are do. trying it's yes So, that's to where and

harder get So and the but far it getting to your fingers harder good. good Cross so people. is

Carter Driscoll

for Appreciate my Thank all Yes. questions. you. taking

George Sakellaris

you. Thank

Operator

Canaccord. of from line comes question Chip next of Our Instructions] the Moore [Operator

open. now is line Your

Chip Moore

Thanks. Morning.

George Sakellaris

Good morning.

Chip Moore

you bit the were they're O&M maybe U.S. talk about trends in can positive and seen It for bit little about that a talking a activities there. the a here pipeline you've on maybe little the like George, project you similar the more Hey sounded UK. more about outlook in

George Sakellaris

for The good last new actually traction and us so in region. particular awards in it market a successful the very that took last and get that winning but brand developing are or name a in to months while months been very-very six we we've six

think various the this business five and but new tremendous do I and moving are performance to much United the you certain the we potential. getting Like agencies the qualifying for them because taking the frameworks able in There's we we structure have more States frameworks we O&M business those of there said and some States again to that to is yes. time to And the be contracts. under have think win towns in getting the all better. are contract [in with and contracts we it and in frameworks So the some the] the to series United potentially energy win a now about savings is long that that and won I is infrastructure UK [indiscernible]

took some to developing. right months for is good and It very the market beyond next the that. where feel we are we now XX time XX So and

Chip Moore

you you a maybe more bit little a recent think me [key talk offered about next and you outlook guys. of the should little That's from when Thanks just talk color on goal] more bit can one for year, I we a about about great that? how mean

George Sakellaris

get goal six our a look for we look have and they and I trying be better our annual about if target compound X% to than feel the that that to always closer is the to the faster mean said X% I grow rate I years the last and X% we you shoot. want would be competition growth that XX% to think that I the will we'll Yes.

range the and as higher X% to wanted growth. but EBITDA So I in that between that's close XX% what we're somewhere XX% talking to as possible get it to somewhere about

I are the for I it's foreseeable think where think future. doable we

George Sakellaris

guys. it Sure. Appreciate George. Thanks

George Sakellaris

Yes. you. Thank

Operator

this And to now to back I'm for further remarks. Sakellaris showing no time. call turn the I George closing would questions like at

George Sakellaris

finish the quarter are for momentum strong building strong conclude To set and this confirms our year. you. for Thank we us the a up results

projects in We are and technologies high give we backlog and due long a with revenue our are this storage. high Ameresco. assets causal for and much ratio, both and confident term. from and Thank the visibility very good accelerating micro-grids portion year strength business well-positioned very our healthy advanced margins trend good us confidence batteries growth more another day. of to projects in term prospects a model. complex We've for distribution in have the in long more to XXXX like you of With benefited updates growing There's infrastructure

Operator

Ladies This program participating have day. all today's Everyone may and disconnect. great thank conference. does a gentlemen the and in conclude you you for

Ameresco (AMRC) 30 Oct 182018 Q3 Earnings call transcript