AMRC - Earnings call transcript Q3 2019

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Operator

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

Third Quarter 2019 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time.

conference being this reminder, a call recorded. is As

turn over Vice to would may Marketing now host conference to like begin. you Dillon, Dillon, I your the Mrs. Communications. Mr. and President, Leila

Leila Dillon

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

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

to events like a over contains of to beliefs. future you George, regarding predictions statements caution Before remarks. brief financial that We I turn forward-looking are or would statement based the call forward-looking I information and performance make This management's call upon expectations such company. regarding the future the current

as results our of in that important result documents to may filings. Actual company's assume risks to discuss cause We statements you materially from revise statements. to call. any results to pertain company's made release no or to differ the those and We obligation SEC uncertainties forward-looking factors forward-looking materially differ press morning refer the today's projections on business. that our These could this actual and contained issued a

this be non-GAAP referring In not addition, we will non-GAAP financial call. measures financial in with to Generally Principles. during accordance These prepared are measures Accepted Accounting

and our can website. release explanation use which of the from press our as the non-GAAP the behind Our is to an as measures available reconciliation downloaded GAAP in well non-GAAP appendix be financial slides in of

to George. turn George? over I'll now the call

George Sakellaris

everyone. Leila, Thank morning, you, and good

backlog. resulting Solutions in by marked were Third quarter results Energy Smart awards, record project total record

of in Ameresco record contracts backlog. asset [indiscernible] pipeline, in out shifting million the also resulting expected significant delayed, development quarter. We asset were $XX revenue growth approximately the of of had in QX a

I since number XX. have out signed that of September been point the contracts already these will

in strong. business We expect importantly, remained the close trends most in the And overall our to remainder very QX.

pipeline base customers’ allow coming than time, double address our technical assets. development complexity and our megawatts in earnings. will asset in recurring to have we us At our same more build of and our Our of increasing robust the increasing the projects expertise to operation company-owned revenues significantly continued to years, the

have made As in controls, smart other domain order indicated, the battery energy we of grids, last year, micro we advanced during knowledge develop investments significant such all areas regions. technologies have to in our across storage, as and

awards. the success resulting As strategy of record our in see, you can is this

at than platform We are our in business much higher our asset leveraging also the rate expanded past. Ameresco a to grow

all regions We advanced are contribute the at this to have and point compete where markets. are to to capable begun

of into developed capabilities assets Company's out all expanded have now the were The our regions. offices, we traditionally local Northeast

Energy ownership for Smart Our competitive XX us North Solutions a unique opportunities. America, plus advantage offered work traditional and asset in offices

At the total quarter's QX, by development end. than assets reaching end megawatts more of in XXX doubled year-on-year,

expect We to continue the development operation. in megawatts exceed number of our assets in

are Our more increasingly getting and opportunities larger asset complex. development

in solar largest energy in the Illinois. will multiple return the help expected benefits, summer a recently to DePue, is it local fact, income project community goals, megawatt of as time same its renewable begin providing Illinois course In while XXXX. XX announced at highlights of good Construction we to assets a installation of energy Ameresco. the the and state meet for This our plant

using store for and of energy company-owned system the in lead are battery and the grid has of our confident ribbon cutting ceremony grid-tie grid storage greater quarter, megawatts the an supply energy back first are wider Ameresco. to And stability. projects held opportunities These access team high. power, nature our will system. intermittent Ontario deliver for success that when such is been adoption integral the we hour demand systems renewable The of given types generation, XX the it of to part [ph] During used Canadian a into much

Ameresco are have relevant you customers over aware, resilient distribution potential are business. along have PG&E his which has that Its as impacted shutting We losses block as Smart today our to millions wildfires. largest numerous estimated of $X.X utility of outs to and cost demand historic As outs integrated asset to resources, facilities. been our with municipal, California's territory prevent in off that economic for institutional state. billion large to well the Solutions portions are energy events unprecedented Energy these distributed block believe It's the and solar business, power residential manufacturing creating

grid quarters, we for systems many towers, into local supporting applications For such operations. storage and pumps energy cellular standalone have as California utility off and been water solar electric selling the

always will Years and of proactive utility years technologies believes issue. eligible in where resiliency. technologies spread are has investment believe volatility and for will We such more up the power frequent will environmental growing growing take become other that will for this become it energy under in increase been the blackouts geographic itself address eligible and to advanced to California California their areas. likelihood now XX that benefits. PG renewables that to

The by adoption, and urgency appointed should lead in of will such as economic positioned emerging well they not This this deployment more state become and increase benefit to country as believe customers only is recently use make We to California, of bring which sense. the SB accepted and much exceptionally market. XXXX around the these from to more technologies begin Ameresco microgrids. governor [indiscernible], passed technology across certainty more but

incorporated that our past, discussed As customers we requiring have being in projects. are into more resiliency the

are the CHP the in programs such clients universities, base hospitals resiliency institutional municipalities, federal core and as of charge government, leading other storage. microgrids, investing in and Our battery client

is Lynwood latest continuous in critical an gas systems. part A great as grid a engine, It's our power fired in system with in X.X by and project advanced This operate controls, megawatt powered of Utilizing microgrid example functioning such providing recovery utilizes mission installation the energy project. emission completed advanced technologies. of can recently or a system. for That's mode. heat the controls, island natural

with customers to work. existing additional Our continue provide us

United year. our States Service Postal signed third For example, this contract we

of One solar. energy distributed which generation with includes

two were built, due build a other focused the brought acquisition. part, to Ameresco modernization. The recently design expertise completed built-in wins from The in are to design in

potential optimistic existing of built for revenue an are our We work as base. the customer from design additional complimentary stream

continue acquisitions. will to We pursue similar complimentary

XXXX strong. confidence XXXX growth supporting In finish summary, And believe and solid very very for excellent, beyond. and strong in are market conditions position our is our to we a

to turn over I will Doran now to the the Doran? call financials. review

Doran Hole

good morning, you, and Thank everyone. George,

to release and the complete third press information. supplemental I review performance, I please for more ask slides financial Company's quarter As refer financial that you our

complex strategic and growth awards The our advanced to the quarter solid we We decided part year. to record and the record increasingly reflecting and technology resources year-over-year, the pipeline awards spoke in highlight in of project another assets XX% of that this make about successes in investments project in the achieved up earlier. large quarter George million, third early XXX adding projects of

Energy at comprised contracted backlog, quarter Solutions X.X of billion awarded backlog billion project Our end and XXX projects. in was Smart X.X million in

XXX a to stage The our twice the third our few been to quarter. this were awards have Company's the pipeline, Illinois megawatts. of opportunities. year-to-date the ability record year-to-date QX, project growth, reached XXX into quarters. number placed and footprint, our RNG more George the the solar, DePue, our that relationships added leverage asset earlier rapid asset win third for technical end plant than geographic we including megawatts additional The rest total development X talking customer XX size knowledge the asset and last another bringing the of end to at pipeline large at that This XX% reflects of including pipeline We quarter. of of year's Our assets We in mentioned. of a represented about megawatts Ameresco growth service business was Ameresco megawatts

development given XX transferred awards. more megawatts purchase into that strategy systems customer a these large third project capital. the are During tax during projects cost agreement outright of metric into where in with versus sense quarter, decided account, of owning the power assets national made its a Ameresco our solar for corporate and entering These development, out we

While a based that want remind to the energy we and have our we and the to build own needs. do are pivot on organization everyone sheet customer offerings savings first resources balance to have we customer flexibility assets, we

are marquee new We this it about pleased account, national with to business future. be C&I we'll our book of and talking in the be developing more

of XXX was million, reflecting revenue modest quarter Third across our of all growth business. lines

conversions approximately contract a While the results by XX of push impacted project out comparison, revenue year-on-year several positive million.

start you been schedules quarter already these one know, awarded are can function from dates projects As slip to Ameresco, client have of another. and but a

and in per non-GAAP came diluted Net was are X.X These income in representing expect net Non-GAAP figures, million. XXXX and of we attributable anticipated people $X.XX. technology XXXX million very investment shareholders common income comparable at was that the metrics and in was share a what had Net to support X.X income be to strong EPS XXXX. $X.XX. below we increased the for

operations EBITDA was used were XX.X million financial million. flows activities XX.X in And million. operating generated non-GAAP cash quarter. Adjusted XX.X and was Cash during adjusted from measure the

on a remains recycle build ability proceeds is out to and Our non-recourse generated, and combination positioned to The execute asset monetize well opportunities. hand, the into cash its debt, cash existing through liquidity strong. assets of company the on additional

signed the shortly, XXX range third million $X.XX. income share the quarter, per Based are to we to reaffirming to on full the outlook. guidance, our adjusted of million, net to be of million diluted and EBITDA end those year our Turning XXX and namely, after to in be contracts revenue $X.XX million, XXX to XXXX expected XX of signed

tax be XXXX. to we XX year. into We expect megawatts this And approximately and operations expect assets rate of XX% our for XX% now place between to

to back closing turn like comments. to I over would call George, the for

George Sakellaris

Doran. will three with I you, summarize points. Thank

to First, quarter. fourth an have we expect outstanding

growing forward we of We Second, strong from third, expect conferences. people backlog. platforms. Thanks to fast substantial already in we to to many investor and a pipeline, have seeing have And results at you tangible we contracted investments made that asset are XXXX. development look our project our the and seeing upcoming

open we questions. would to call the And now Chris, like to

Operator

[Operator comes of line first question Horn Instructions] Chris with the Van FBR. from Riley And B. our

now Your line open. is

Chris Van Horn

for Good Thanks morning, taking everyone. my call.

George Sakellaris

morning, Good Chris.

Chris Van Horn

where really into you know, are more see of to an coming? curious be And investment the bat do going And terms you of some those award in go right thinking XXXX kind XXXX? translated activity. into you know, what's And that, you investments? year. that? was obviously it's you your I'm you Do they So, mentioned, around know, robust off

George Sakellaris

opportunities. that right markets to shot, for company the I size the will particular Basically, in made one much call I want otherwise we plan the done XXXX, market say because what will Yes. we we that with of basically for units essentially the an investment pretty that all are was advanced address, that

go us faster want think the see we be bottom and additional talent, what to at line grow forecast a we top trying I to forward, rate line. you it more As past. add to will but what in opportunities did than we at will be We matching the

forward. with the the done carefully So we we investment be to that operating more much make. monitor And expenditures, will wanted pretty going we

that one a for I deal shot For will part. XXXX what call better

seeing southwest we results, that talent We has as we will group started successes, in federal the early the – you the the it's Canada. in that's know, the in not the northeast some brought only why but in aboard well and impact, basically

very feel good we So are. we where

Chris Van Horn

And a And little you top EBITDA, detail adjusted elaborate expansion, growth, growth accelerated able outlook, entering you mentioned or great? bit Would there you be it. be terms that? XXXX. got you then in know would talking EBITDA in more on any of line to your are Okay,

George Sakellaris

that, announcement. backlog. that year, call, we as year today. will before contracts, the today, next Yeah, the it's we maybe at bit of based note we on project But fourth record and after a important basically of contracted have level the where will a think a on by to where guidance even will end I give be that we the think record are the we Otherwise, are little

year. why be strong that that's very to year So going a very feel next strong I is

the have of will chunk we a that assets year. so that, pipeline to a good we have, great addition into play In in or development next come us

So will contribute a The that operation looks lot. maintenance very good.

last giving very, think digits, five actual line doable. historical to not going though growing XX% otherwise even the is with close EBITDA single top are we to historical doable. line trend at high our it’s a trend the as very again, And I the guidance the So years, for very

be gives which that you will we fact a hope I color, in will bit but backlog, contracted little a So, the end record project, year shape. that more good with the

Chris Van Horn

if emerge and players competitive you guys rising me, players award landscape? of lot you just last of share seeing activity And from are a seeing this taking about maybe? of from mind. competitors it. you’re I’m or you’re and don’t Can of and competitive lack seeing talk because small for the Got more one to curious you’re what kind you a maybe standpoint, benefiting or starting all in space more just just the the Obviously,

George Sakellaris

I the market on share and performance broad we share on Technical and the expertise the be because us largest X the a have are I from have contracts. like broader the a below more lot engineering will will [indiscernible] little is see million focus guys. strategy they say we take contracts and these that smaller do all you across mechanical advanced you and contracts contractors we say bit picked of and small the some the solution let local the so made of our technologies, we fact from big scale, that approach a own helping that own they deep. to customer where the we system or But we the some the from perspective. investments years flexibility, firms, the would the system, one last the customer competitors this And have over picking

the And focus that some technologies they challenges focusing comprehensive have our some on the they less wins. and more on broader of where contracts. the units units some complex the great they contracts projects, smaller and have They

Chris Van Horn

great. Okay,

George Sakellaris

few well think years fact on pivot advantage over The projects. we of very company very, last evolving markets, the are larger that take is market, the positioned. I emerging And overall to market the these the the we

market the landscape other want helping on was the a going may be we bit The might otherwise now when Doran XX you especially that into solar thing the below, – plus in I to is country so the competitive are on. in a municipality business which to and XXX us and ownership, asset megawatts on local comment units can that to little lot have want we the over addition develop this that, the projects. fact the in solar one across these the developers And a is addressed client

We have relationships.

us. helps it again, So,

Doran Hole

traditional I the competitive energy in landscape is different solar business. think obviously the than efficiency

furthermore, as we flexibility local competitive And so really simply penetration to the around the I think, earlier, to develop the advantage call and and country. or in business. clients the the assets allow projects the as plus that allow George mentioned in to the advantage. got the own local before, a to then that, us to is us own gives the the XX then capabilities about just addition assets offices We’ve It’s a technical presence, in very competitive actually regions talked just to

to So, have it’s necessary that.

Chris Van Horn

for Okay, got much the thanks it. that so you color, Thank and for time.

Operator

question Noah comes line of you. Thank our next Oppenheimer. in And Kaye a with

is line Your open. now

Noah Kaye

the questions. Hi, good taking morning. Thanks for

George Sakellaris

Good morning, Noah.

Noah Kaye

us happens? Housekeeping you per to segments? help perspective, XX revenue understand of million a where start with. can share From Which segment that

George Sakellaris

of $XX but the project. about expense these very very, projects, is million chunk to mature. are $XX already contracts have million And on is know we basically million this money, to development in I with close basically, as all $XX Yeah, invested particular on

out. So, when say top signed, quarter statement. that gets the revenue that And that might process quarter. And on you line, why shifted, hits particular the impact it by it the had going all gets a that’s your major income

Noah Kaye

was on where question regions, happen? my sorry, federal I’m did which Canada, it segments,

Doran Hole

Noah, of to federal and most Yeah, it’s mostly awards. federal, is related that

Noah Kaye

us maybe you softness, the to mentioned? I connect help this Can the a that’s Can timing large large quarter, dots potentially projects, a awards connect and it here bit? kind up of us in know, the you kind with expiring. timing, some there’s of some of that there Okay, federal issues for little on DoD been authorization you related

George Sakellaris

XX, And the Some can one. very contracts be something confident feel of I very December have those add they and mean particular – which this – sign. and to to you prior good is very, will to that good very signed idea visibility we

Mark Chiplock

as cycle certainly ends. development the and I but the the Yeah, pretty said think both in these sales on we mature past, in Noah, are and think, overall I really asset,

So, will expect we before possibly And pretty the come confident sign we we get as although didn’t sign QX, we’ve it’s, in signed already, George of expiration rest mentioned, the one to – expected those the some IDIQ. in coming the had didn’t that that in the and weeks.

Doran Hole

And I’ll quarter-on-quarter… just add the in

Noah Kaye

go ahead. Sorry,

Doran Hole

Yeah, I add, in was the just the going to business. quarter-on-quarter federal slip

end, a lot XX a get September done right, year year where fiscal had these perspective also practical impact have plate an contracts frankly, from where, the fiscal to before side on end. the their just people You other their on of of

these And so things result, a slip. as

Noah Kaye

would So, – to fourth can you fourth to high I sales do point quarter, think level previous about you’d the XXX that guidance, at be and quarter end your with have low midpoint your guidance hit mark. well sales. the previous your of Again, mark that be would conviction for talk XXX I above revenue quarter? this million your of guess million XX% in do than to the your at higher for the

close at you’ve So, within XQ what’s where these for driving much of from point? it record just end at but is bias to just about the visibility affirmed you the year expectations your it this how coming And $XX have quarter through? your talk recognizing this or the get maybe a and to to but guidance, of maybe XQ this point million pretty part range

Mark Chiplock

this Yeah, hey is Noah, Mark.

PV. confident sources, comes so revenue I we’re contracted our contracted the or other is from XX% think QX feel integrated that revenue revenue backlog streams, things either so streams, the we of from why expecting or recurring in

as confident, the is sign contracted that confident the as the the from again, that sources. then rest coming And highly will sign. well of feel not always that in mentioned, given we in QX awards just visibility pretty from expected the we XX% feel awards. And get ones as we so And QX we revenue,

very like to feel a visibility revenue. there’s strong we So, our QX

Noah Kaye

Okay.

that was rest Is essentially So, take that XXX, is if and what midpoint of back then through in it the correct quarter, I implies is million the to comes that numerically? XXX that. fourth for the just

Mark Chiplock

feel contracted good about. The from sources, revenue we pretty

correct. your yeah, is math So

comes confident executing, can I our we’re as that. backlog, recognize very in to move it’s from that. The contract about just long because, And as think we feel rest good awards. feel we we once

Noah Kaye

us any you give you Can development project Excellent. on asset this quarter? pipeline to that the RNG added color the

George Sakellaris

working year. I by put the be our backlog the we another not it. California converting good electric an add existing a plant. we was we our its been but have thing we in woodland the And them add working gas from down plant it that up not an that to them be into fact for other it it’s the time. And We’ve be are have wanted about and we I very otherwise, it other some right Yeah, have have the close will to for And wouldn’t gone excess plant sides gas, we so talking And and we of pipeline, because plant. large to the the end early It have they green landfill it’s feel conversion six a of size, probably we still a the on development, in taking have they plants landfill site plant But that electricity not we about would additional there in surprise very are now. been plat. that very, owner. and on other And stages plant good of existing five, couple an them. it’s away, is the

by schedule. into the ones signed, and half have schedule, in in one late now second that, just said, a to will other it’s no to year. XXXX. end that XXXX we’re for get any And construction couple delays, we have the next go the operation we’re Again, plants year, the of of the the and And new trying on we more on we probably two, to that addition that

We to have XXXX. a better visibility the as

Noah Kaye

Are to sector? you augment that you about utility demand RNG indications that from continuing starting to transportation the some into the to terrific impacting have maybe and RNG pipe we is broadly? might back this actually the the seeing down We’ve which bit talk see to you’re little market. sector say. your pipeline think a gas you the some is projects for opportunity? utility environment Do seen Can So, broaden for that

Mark Chiplock

the making is No is particular several some and And way about we because it’s your contracts question the with they will call reduce said, that to about we many it. only utilities, this states have worthy green emergence time you at better utilities I potential there reduce the this talking see road No, beginning can with and where regulators And footprint. gas that now utilities I will say, And right term gas. just this now market that’s it long a great actually, with I us surprise to term long contracts the the are they better The is point. fact feel what is carbon segment. be we’re great down credit customers. him. And this wouldn’t

contracts. XXX% and gas. have of want carbon way In they accomplish become sign might that, couple colleges, we might a neutral. many be, to colleges term talking they that accounts, plants addition the to be that are able only they other green a long The by whatever whereby or generation to to will we coal institutional And and case universities will that

these buy of will some We outputs.

want And looking know Doran, at…? you’ve you add I something. to been

Doran Hole

terms. contracts would Yeah, contracts no. that, price improves of typically these for fixed like clearly visibility allows say term, looking better they our nature they’re long and financing revenue the are that only it I look,

in feasibility improvement believe an the, projects of what of we and clearly economic these stability economic So, like. for terms that’s us looks

Noah Kaye

thank that comments. follow-up you your with very Okay, but much I’ll for offline,

Doran Hole

Thank you,

Operator

Moore question you. with next of the line comes our Chip Thank from Canaccord. And

Your line is now open.

Chip Moore

Morning. Hey, thanks.

George Sakellaris

Morning, Chip.

Chip Moore

we needs us what to the there? then, QX, still And to push a get puts follow-up. on you’re XX if you ballpark thinking million and takes there? if go just Any to just this we could as give back of think signed Wondering seasonality about typical and on out,

George Sakellaris

contracts say it is I something. the the the that to administrative. contract. of it’s because fact of then September federal would hundred dollars’ issues or million the contracts pointed close was several these add deadline the primarily about of – and Yeah, And Primarily about Mark government. couple want fiscal out And might XX, Doran worth delays the

In on only addition but other other contracts people they on it. to working that – but side, not many companies, And they’re that, us the have the we feel very good.

why money the and in sits on substantial bring we The this signed a them our time balance a them. since particular to we couple very which complicated, to September spent schedule. these the site fact in have actually development have feel we that visibility, to expands? are XX, of We of timing this great that schedule order projects And of us have since point. The project given amount $XX good and very the have about the that million of a and the and government develop

that, got are the to They motivated. these to addition they government, side, moving. other have want they and think desperate. a to projects are of spent In do you time They lot get on the

and something that confident. that, need. from energy great Mark, if they was site These will the to that delays And that save add want and we just is you is them why the other give that’s feel project not something to or projects government The infrastructure, resiliency the all capitalist from something the them upgrades incentive just are the – So, very the it’s the there.

Mark Chiplock

you that. hit think I on

the And converted, that certainly we about a peace, I with the we to feel hit but to think, still back we’re those to visibility feel visibility, execute. feel we’ll contract based on that needs level to that, happen. but in at comes that again we we so. like, need then those control numbers we’ll We and our good like to very awards the it feel position confidence get

Chip Moore

Understood and thanks.

there? about know You talk very you here, you about you positioning but the days biggest any investments off west, make? how And shut broader need public post may think power What at opportunities? are we’re to can early

George Sakellaris

of municipalities. about and concerned Look, have we well will the what’s on. concerned and universities. going are and ability power, microgrid – battery to see talking are industrial lines, compete are edges. I’ve the been plants, submission power and the talking central they long large generation an long to time a and They days And plants are mode. our to combined you has the the the acceptable what distributed a commercial controllers. to heat power emission. they for and solar storage, basically, as economics that central now old measure colleges with various they as island customers And And And of we the have point happened

it So, the the it’s competes invest that mean, in I solar they but or lot or thing we – liquidity with economics. of say some customer Apple, only resiliency, give the because a that Google, not first carbon they it’s talking the are XXX% prices. of footprint. they But

not sense, makes great just a investment. it’s it’s environmental So, great great investment,

some of order microgrid. They storage. need kind is take they battery not the some solar of all gap Now, in some up. kind of a that because They to have datacenters bridge the time the the need

we the have the California. battery in road. utilities, all are So, us for down at And microgrid, of them talking in storage in started a people the huge and the California we already located hired they opportunity the see that some to we of

federal government. with started the look, So, it

New storms The of Hampshire on. very we and the Philadelphia now or in we ice installation. the And four with we get Kaiser at we we’ve of one and do they afford Shipyard have microgrid, have did so have, interruption federal them they which Permanente, Naval in then because up is And five first we been one successful. during some them cannot a clients that base government, that of the now in England in and the our that Portsmouth, New

look back and to we they they’re now at this have resiliency issue. Now, coming okay, say,

it’s to why in get traction beginning That’s So up. the it marketplace. I brought

I –we would think the on going but right existing the what’s now with it marketplace in investment call that, it’s I the the what in brought past made customers, segment. market in

Doran Hole

couple me let just things. touch a let on me Yeah, of

and the storage George so investments battery some expertise this made that microgrids So, already. those of stuff, on the were mentioned, year the we

that So, coverage and on. things. necessarily opportunities from into this demand perspective processing we two opportunity need further. categorize don’t Certainly to But a would that goes I expand sales potentially the there, some

they little longer that thinking money have proposition microgrid that One lost actually And whether going down not be to is, to plus into able all They’re we communicate, have of a economy individuals of customers now, able shut take economic the about microgrids money work, to by being it’s the they’re going is and to offs thinking bit not the to applicability. happened. utilities term, account effectively the being be put worthwhile because when something going these work to value a to even being differently, together. deciding shut spend the them to when able not about to those

piece second got already phone our towers immediate. of distribution you’ve The can is a been the those. has happening. more are shipped irrigation cell can site business farming use And, variety which on that that solar There’s service applications kits there. integrated be off that’s There’s These and community.

a bit that’s think And so more I near little term.

Chip Moore

a Thanks helpful. lot. that’s Okay,

Operator

Irwin comes Craig question with of Partners. Thank you. And Capital last from our line Roth the

Your now open. line is

Craig Irwin

are going you, you to about things the bug particular in gas this construction Great. in the green is and guess business year, questions landfill I My one to guess. and the Obviously, these only I’m George. the maintaining business California. Hi, Thank happen. the I and So, gas be quarter not about

come quite these So, years. look long right. a of years, two over the businesses we at few my prices, peak, increased clients the But they’ve last many at of been potentially EBITDA the Ameresco term bit looking off off when RIN have driver next

into We’re for discuss the maybe in XX% down from Can your be do now lock of you how around to your you you as roughly locking peak. do sharing RINs, far this $X.XX of RIN comfortable at prices us P&L? What sort How away? for kind approach to agreements? much RIN typically we much exposure as through would see And projects? volatility your looking minimum translate

George Sakellaris

it. Texas are today to the development some then the all prices, even say the want might add first that about three in Each The look question construction. the will right that’s I other then color numbers the We in have at we will other projects in that in handle Yeah, now one I make forward. see to of they part, especially good economic you try own. them the we better sense, talk assets and RIN they one going and the and at every Doran and to California than when that and Mark better more

then look RIN by I LCFS, took has However, up substantially. pointed if at out, and just as we the that you not gone the itself, market

us from that surprised see some we’re the plans of will we’ve And new considerably. on about. California of So, I talking that been long you benefit that contracts plants, execute wouldn’t be will going forward some common the the

So we sufficiently have.

green the gas, the As contract. ones, portfolio, RIN prices, merchant. existing have output hedge better then far as total the that a that X% as take portion is step at if our the And asset one on the even on look of long overall it term down you we you of only

new market the this economic will offers term larger a the not the low price think it’s revenues. us minimal particular transportation. on up more I this with the where in the So, would exposure on for year, and I RINs, coming only ones us the place be in say what for for the also And outside predictability on but of a that long possibility strategy

way the even as a better. but returns the be Doran like take will the have You financing other were little the you stability lower when up return as more earlier, it and prices on would out pointed well return on might high as and bit RIN there, the hand,

the though, thing – I now. say, right I mean, to are Doran prices where they RIN Craig, on other want The

As know, set up over you probably see are the see considerably, RIN the will everybody’s XXX, be waiting for you on RVO then what to prices will if that which at. time. And that some working people go set new

the so any, transactions reflect people very, now not some if the market very Most small, do they they doing. what sales. are is any back holding right So, of they’re very,

You Doran? something, want to add

Doran Hole

well. you it I think summarized

I year expect have that gave here at guidance the and is material RIN line. think for the a we that we in impact this the our it pricing, don’t situation, on current that’s point that bottom to least

Mark Chiplock

every go each one they forward, and then of and projects, Yeah going the very well.

Craig Irwin

long every annual your in have reset you sharing a or usually just agreements point Are multiyear to some of RIN lock How year they do for? agreements you And and agreements? clarification. that resign of these

George Sakellaris

No, go through recall least next they they don’t at that in year. expire know we And the when I one have exact right the I now, date multiyear but the contracts.

Craig Irwin

and California. LCFS mentioned you plants in Then three your Excellent. Okay.

really a is these you in driven. obviously, guess for supporting Do XXX prices to us of de translates and as minimis economics is close with, I of the an doing on a prices? RIN It’s importance other there see versus just and focus maybe green the Can maybe confirm LCFS more well LCFS stage So, plants? LCFS carbon the to ton. LCFS on opportunity fuels you RIN That bucks into clean gas. for California And development? pipeline relative great contribution

Mark Chiplock

now, of even much Yeah. say prizes then No. I and LCFS. want that to to the weighted we thing point would on they so more say bit ship right take I plant, the San advantage maybe is based other contribution is well. And we LCFS between where would it California I this Antonio too, LCFS gas and the are out, to RIN as green Craig,

Craig Irwin

in if – When and gas plants then total And ground potentially Excellent. online? plant question come on break update fleet expect us last development? of to Can I you those the we green may. of

George Sakellaris

color. little Yeah, I bit gave a

that’s now project breaking and – have – We coming we infrastructure are three on schedule One right the the give that one those. the get be and ground could We outside actually McCarty you Texas, Houston, permitted will Houston. in those this the month. permits of we

of – to coming see of have it’s five of will XXXX, So, fourth in I in do development the least second just when we’d And you remaining, probably the come be the California plant a say year. by development the XXXX. the end of two the more at that would the we to would out have and be mid And now that right year, year. the announced – fourth in might color. third now plans half have then by we be couple them on this the I quarter six up you we of right the end give that like goal. would of six Then three sometimes we next up that more become XXXX XXXX. on to But in show able – XXXX. And of will That

two after of year year, the that. work three next been plan trying one the year and we’ve on that the That’s So after. to

Craig Irwin

Congratulations on there. progress the

Mark Chiplock

you. Thank

George Sakellaris

Thanks, Craig.

Operator

for Thank Thank you you. And ladies conference and gentlemen, this today’s call. participating. concludes

may disconnect. You now

Ameresco (AMRC) 5 Nov 192019 Q3 Earnings call transcript