AMRC - Earnings call transcript Q1 2021

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Operator

Thank you for standing by, and welcome to the First Quarter 2021 Ameresco Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] As a reminder today's program maybe recorded. to host like today’s I’d now introduce for your program. And Communication. Vice President, Dillon, Marketing Leila and Please ahead. go

Leila Dillon

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

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

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

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

George Sakellaris

afternoon. Thank I is healthy and you, good and safe. hope staying Leila, everyone

quarter ago. equity over excellent as initial results completed financial and since marked posted Ameresco raise offering XX our The first years first we great another our for quarter public

our of operating in began inclement plants. quarter with slowly project Our sites weather some first and

on The execution, XX% with EBITDA With improving this coupled guidance. XX%. raising net with weather annual the to and the far period. conditions our results XX%, focus expectations start, lead are throughout our we increasing up increasing Our exceeded income adjusted improved performance strong revenues

take Now. also thank and tremendous to to work want challenging for this despite our opportunity I dedication employees these hard times. their

executed solid project during see another growth future to over contracted to to we project backlog. in very Our on primarily outside Well, through had We capital. have business We in the financing. we quarter. growth right execution. decided energy million offering that results. Well, which in pickup continue our posted historically again internally the flows by our raising in our an found to company. meaningful and proceeds lead assets our successfully long-term project And very have equity was strong were We awards to were to timing cash the accelerate non-recourse also growth will bringing quarter, focus generated pleased a $XXX additional pleased

increases to our our been profitability. For highly many energy recurring visibility years, that revenue and asset long-term have profitable portfolio growing we provide

Over four for base. number asset the current that and of anticipate now accelerate a In development capital, the three development been another natural particular, team will this building are of XXXX assets. during years, our construction has we commissioning successful in our financially new greater last and during XXXX. renewable gas plants our RNG than operating now so compelling we few assets With RNG

resource companies, and have increase including seen a owners. we in distributed utilities natural transportation RNG a the tremendous few in last from energy interest large using customers, number logistics of years, Over event and gas

these companies XXXX, Ameresco in Washington joined many the Oregon, Columbia. the natural next our technology. the first new in years. important interest of standard companies. the California and commission a the to is plan. few footprint in Back of fuel one statements the zero will most support Ameresco reduce Many and from State Washington actions British those will remain or to environmentally announced path Currently, Just leader carbon country carbon for an in RNG day, of other RNG low over early With adding current this assets, became RNG. that in be and policies, and in we operating profitable administration the the RNG increased

of the capture or which A infrastructure of against other stations from and new These as success up companies board Paris technology new We and The strong an ambitious our #X record projects. we to service service recently, ranked in on government carbon in house in Climate as ESG targeted contingencies. in excellent climate is segments, local Already to reduction brand approximately targets. new with leading electric the weather provider as very most to service carbon we environment. infrastructure gas of in were progress recently that cut U.S. invest equipment priorities are another turn initiatives had the directly expertise the severe report a the energy We're through the to levels from performance package, industrial in as is Doran? the This already opportunities they markets. demonstrate on by insights commercial positioned seeing is industry's to to re-joined working through energy growth our and well to increased now believe clean and seen a charging governments in reach and Additionally, enable markets, traction designed benefit have resources Ameresco legislative good announced we target store project in benefit Doran $X.X the energy goal state provide through make thrive future carbon Accord guide the focus economy. to energy and administration's carbon sea country's the and of and attractive example vehicles, pollution should change. the to include administration financial approximate the Ameresco our report. provider currently expansion the beginning Also, trillion our will the us XXXX. highlighted track our distributed and to position will to solutions, this Ameresco year U.S. This [Indiscernible] by for vision, ability future. and from is technologies more a to to filter greenhouse leader fund on solar looking call have resilient this low mitigate where process. number in low across over power, financing and trillion filled reputation our $X guidance. a I and of and for wind XXXX comments emissions to from customer the XX% some to technology provide plans investment requests

Doran Hole

please release information. and I'll Thank our showing ask you growth that to supplemental good first the Clearly strong our momentum income refer press to in demonstrated net on in afternoon, everyone. have slides additional and EBITDA. posted for our financial quarter been you, George website and revenue,

As in the country. the at beginning the of you markets weather key the were recall, may somewhat around poor quarter given cautious we

in than Federal offset Group. While have improvement of the progressive it was the by Revenue conditions our excellent throughout general, increased again XX% led strong performance by leading better did business the quarter. weather impact, to more year-on-year, and execution some

We asset net tight income with million controls impressive performance, in along operations. due favorable expense the operating in leverage $XX adjusted revenue gas better and XX% namely, several EBITDA renewable approximately than pricing also to the natural results to in RIN approximately an of our business expected production $XX.X energy an number This drove in to had assets, increased in operating factors, strong levels our growth and our growth increase increase in from million. our XX%

contracts. backlog, George backlog, for As very which awards were growth the growth The not to more we to at in XX% the also cadence engagement and converting only awarded billion. experiencing XX% $X.X but our pleased uptick with normal provides customer now in more build activity stands and sequential help now mentioned, origination than we're a year-over-year awarded

our contracted quarters. than quarters be result, backlog, was strong confident large past over a that will the part several in we're As several which to replenished lower execution the over next attributable more

Our assets ending by the growth, multiple of geographies. another had megawatts quarter represented technologies XXX and impressive at quarter in development

operating $X.X billion and our of growth our approximately Together XXX backlog, revenue needed are megawatts ready businesses, O&M long-term have has the we assets resources XXX been have aggressive in Our execute million stronger to with never incentives. and grow long-term great access providing continuing visibility. revenue margin liquidity we strategy. recurring to contracted Ameresco’s to us higher our

$XXX have significant million $XX cash capacity and million balance of revolver. our on over We of

assets. and broad as tax monetize to well have development to access we financing the equity, project Additionally, ability as non-recourse

$XXX expanded we $XXX quarter, the leaseback our sale to during of example, million from committed For one facilities million.

we our of raising our and in outperformance the first business noticeable On guidance. the improvement conditions, quarter are back the XXXX in

Our $X.XX And EPS new to be EBITDA million. $XXX revenue now and billion are range to $X.XX $XXX $X.XX. is expected we of is million $X.XX between to forecasting billion.

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

George Sakellaris

In carbon as Thank our commitment challenges. savings, have to in again financial resiliency, well enhanced take to questions. Together, I employees, closing, moment Doran. position continue growth positioned of policy lowering and you. a favourable our partners you, their will Thank call Ameresco as want cooperation. cost resilience their to to to the footprint. like Operator. been for I now tremendous to open accelerating uniquely and as long-term we show continued able is customers Federal and momentum With thank for our prioritize customers phase the

Operator

yourself one that you [Operator Certainly, please to ask limit and We also one Instructions] question follow-up.

comes Noah question Kaye from the first Oppenheimer. of Our from line

please. question Your

Noah Kaye

questions. side one and of project thanks business. the Good the the first afternoon, Hi, on the taking for

any a just, year? nice considerations? given impact then capture really Was higher revenues some sort of thought? that on there prioritization in Can there of I logistics pull just easier. previously any projects, execution you these of what What forward? you kind it some was how being give the us bit Is color the evidence of enabled here little remainder to think the to does in sustainability quarter of know And quarter. for given getting the the than was you project

George Sakellaris

otherwise, from some Yes, to about Mark for can $XX when reason delays it's weather though from in and it the and balance projects And that, year and chorus the about some say four. the a federal with to in the half two primary that two, we ahead able it of the a a very the addition faster good question it to, associated I’d able more we’re a ahead Shipyard, we payments we large Noah. add of And of months they in color matter we permit million to bit get in scheduling were that is pulled the out project. for million some Norfolk project, had of central $XX group, in little even the approvals of advanced Naval schedule. came region, three especially about fact, particular coming and our are

So we they -- it came was had delays ability off a and about then of that the which course revenues Group some and in New the were York in $XX had the chorus. of additional Federal pull but primarily they the to approvals, couple million, other

Noah Kaye

color. great That's

is about And announced emissions that to there some ask Let ago, FDA as is and that It of one here. strikes And going actually just was to carbon and is in even regulate actually me where the is good sectors an that pricing to introducing me buildings June, EU afoot adds a to and captured being trading regulation some way one the couple a well. carbon. the movement in decarbonize states be there's system, decarbonization. where package weeks

opportunity, carbon incrementally you company market the So future? becoming a that EU I bullish regulation guess, on and perhaps for more the emissions dynamic? actual of the then are tailwind just of And carbon you the do given buildings in see

George Sakellaris

my that And about I comment tailwind then going wouldn't think the for We are we better from Look, what surprised regulation U.K. But on of will Doran. question growing in be commentary, the in little use will of happening There's United And is right than very, this opportunities on Canada great, very you surprised the our business wouldn't than business move that, near-term. States in align base be where manner. community the We have EU that's a on as our it's especially in and the in the we be us the more us but importantly now. might country? don't states -- accelerate in be But a that's Yes, expanding I no and especially feel out business are for are Europe optimistic And the Otherwise, about no in this business. and enough why the coming D.C. too. some what's EU And it. that about cautiously from to in great the to and that. a I stars benefit. what's Washington diligent surprised. that there. I see question a the I tailwind great wise hearing good

Noah Kaye

thank you, George. Well, great,

And I'll that. over. to forward Looking it turn back

George Sakellaris

Noah. Thanks,

Operator

Thank you.

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

please. question Your

Julien Dumoulin-Smith

Excellent. Thank team you done start and of the congratulations year. here. at to the the Nicely

George Sakellaris

Thanks Julien.

Julien Dumoulin-Smith

here, permit you things if And me can. several I

it, these mean, additional of facilities in on you of ‘XX. the double-digit contribution almost but of and total seems you now you curious don't your would if thinking well How incrementally? to RNG characterize EBITDA how alone, are I'm founded First certainly ‘XX piece EBITDA you terms certainly, target reconciling growth off, you if in mind? about that as will, know fairly growth of I the this

Doran Hole

Well give mean, we so, Julien, as it’s you beyond current guidance right. Doran. the year, know, I don't

So the we've we before megawatts this talked take sort kind and I'll talk to to that. bit about reference opportunity of I of that. with kind a a have little with The of to with think EBITDA start question, about contributions

margin. to RIN around talked had of EBITDA on participation we point prices. that in about translating into million that's to per So It $XX.XX equivalent. course about $X.XX LCFS X.X XXX,XXX upon MMBtu dependent That's right mid MMBtu. per of depends XX% representing megawatt

the or megawatt $XX that's plants X.X of MMBtu. to or XXXX have per those million three So the XXXX, what by to plants, look and in cadence end now, megawatts plants X X I times per XX around think total, probably right. XXXX X.X million revenue MMBtus, the XXXX, When we of I ish, million which the $XX revenue at of terms that’s

it's the So, important point, an cadence. at looking I think we're

toward on these give to growth our I growth, that, is on continue continue company's us into over going look the based long see bit growth, now think that, we're of approach cadence investment So to medium-term, on and double-digits all to XX hoping low term take but We RNG we're little the a we at the course a assets, conservative right. clearly, a EBITDA hopefully that of that in revenue boost.

Julien Dumoulin-Smith

a position RIN Obviously, can now Excellent. you Since on talk you bring et nice metrics the about uptick. up your hedge RIN, some here, of cetera. right has seen

relative you early, and on described talk you haven't just how the to been about guys contributes math Can think here fully higher hedged. future that I your guidance to as well projects? you as

George Sakellaris

stages. now because will we last Yes, five prices go forward this market some years. we executed call sale early we as we I short RIN have about would as contracts as out the see for is actually out grow, as the they you the the I think executing range pointed time, as though, XX%, in the developing are contracts what overall in we And

footprint, sign contracts all to these output whether too five contracts hedging the And then it as for reducing they people I and in good they us plants, But about heat And or candidates industry, for our about of we quote have economics about financing. power carbon the contracts. markets, long-term some of ideal short-term universities economics. in many utilities or project or or want don't contracts. we're XX% new hospitals, term the were sacrificed long-term the so combined better, longer plants. think think having they our or gas know is we are pretty are And however, the So years we because we gives

said it very are long year XX we developing, to passed and we at some from adding. for And XX we the year watch we early time, them in Doran about carefully. are And negotiated next we the going already much that we because that But this the that -- we on however, by we're because plants megawatts have or in but like megawatts following stages so them. some market thought of looked be

say We years it. we from of months the a is of if periods and output XX or goes But out six let's we times those now will plants. shorter but do hedge XX XX% years, good of about for deal have will

Doran Hole

want add, a bit have assets have these we six more flexibility assets, built-in that's the development little we the And because six we have why ahead the raising -- we before. RNG. we and now okay, actual forget we And to what tremendous that I have the thing felt we in we the that going pipeline. backlog by the more other equity, And accelerate on had now of comfortable in and development in pipeline have another on

George Sakellaris

Right. of sorry, just Yes, your and question. part right. Julien, was because that's it

So for quarter, of RINs on I higher. probably think a the dollars the impact million couple

over sort just RNG mean, we'll of couple prices. production had the million to overall X think, and pure from probably improved performance. call million I of one the RIN was I then contributed a higher of production, But it that higher plants just output.

Julien Dumoulin-Smith

then I, disclosures brief, disclosure if of to as business thinking Europe, you But you I just you updating different way, it thank about the now you have the specific give mean quick, thought And much by heuristics parts you your talk about that. of more how RNG I here, as you RINs and providing Doran, know, the you and about sides talk in RNG here? me involved on package, get yourself permit business perhaps for are on think the you you thinking disparate the if the about obviously, side. businesses just how in in about are can, involved different

Doran Hole

time, we thought graphically. slides, the course to the give with; that. supplemental material see way staying we Julien, that present Yes, think point to At in the you'll the I in continuing we're are this

color I've about additional very providing think you. kind But we the felt Q&A, I just during good beyond given of like that.

take think going one it just we're step a time. I to at

Julien Dumoulin-Smith

and of I again, Excellent. Well, luck. emphasize, best congratulations,

George Sakellaris

Julien. Thanks,

Doran Hole

Julien. you, Thank

Operator

you. Thank

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

please. question, Your

Craig Irwin

good Thanks taking questions. evening. Hi, for my

So side? where pipeline on to What is those how have can the we us that dozen your expect should to the of you confirmed plants when into these? over years? And build you those you half RNG the on expect do and come couple the outs, next schedule remind build

George Sakellaris

don’t that. Yes Craig, take I Why

behind asset megawatts plants ready not development in And and those and years. can there's we've are cadence, do MMBtu. total, we with to the or kind right, with timing million concerned, which in or are feel megawatts three plants more And that total we're got this six within right. comfortable So talk before, XX just And X.X XXXX we've specifics the and In about talked pretty million commissioned little megawatt plants, about lot got a so scheduling as three QX more the of XXXX, one we've negotiation of signed I that. before our those land this kind now be rights or XXXX the stage four to MMBtu. of imagine, a mean, pipeline, as The we're we XX that's expecting we're we've smaller the as in gas But XX a year about, is million California that cadence year, then kind plant MMBtu, XX about far of the the but of right. them. you development plants talked XXXX, more XXXX, bit fully In year. end quite they're got as those to equivalents

Craig Irwin

that. Okay. for Thank you

the there's flow months, there cash over last right. bit assets, controversy So the couple the a of of about been out of little

projects? last understand cash of greatly the and ‘XX and us as disclosure for years over budget hurdles as and I'm over what how go but have at has us can you towards Ameresco assets capital year next of these few for quite us not XXXX you beyond? internally, expect the specific far if this assets maybe assets describe much the a lot the maybe these years. specific look ‘XX, and you to asking for in generation then But So, build-out around you is and for the numbers this of numbers, the helped improved going that couple

George Sakellaris

assets with a some starting RNG in else of of mean, question, release year the we your of the sorry, plus energy dropped for the I So our very microgrids that CapEx are overall. the whatever plus end in about numbers rest terms think projects. service. which solar as expectations plus on I these press energy

So the that to million range year. is XXX million remaining XXX for

for that cash that revenue this will dividend I As as by a category, don't start or far apply as we're disclosing energy of in mix, few flow on information net position kind driven ultimately today think the cash category Furthermore, all portfolio, income at project the an flow formally to offtake of asset these non-recourse of and But basis. clarity. financing looking we're something our cash and Craig, years we we It's or largely of or unlike financing, investing as next off we're the we question, with asset we more know, doing to try like to little by increasing energy provide associated pulling grow codes the other yield a assets. the the are are that flow to flow stocks, assets. plants you cash these type bit paying in be much

question. So more work going on the that. importance I its understand I to to appreciate come. and we're

Craig Irwin

are is of projects a with are seems if that way to little themselves as most them an shopped. the gas how Many you much these out have out But know the acquire challenging the color to at Okay. to and to different Ameresco people cash on projects and then being as develop development these obvious are development. in with of are go actually raise items portfolio, get that and maybe stages experience has. that And coming of you give trying it of paperwork green Ameresco agreements, find of of initial are or may, I beyond non-talk challenges? just, there execution filing but the green base, far entrants maybe what for like -- these and your the woodwork. do don't permits new successful question, there's running the you IPO companies have I dozens last as out it some term success just and really of know, at can woodwork, as initial us far looking up project longer a maybe Can gas

George Sakellaris

gas of some they why especially sometimes it's interconnection other challenging differentiator forecast these some years. the companies few relationships companies the development besides, last me only have in numbers, XX various when and quite we've that's that we in for have And because pipelines so a doing gets have very landfill in order on. And we with well to capability, great this that's to, as and utility, states we permit the a with to the marketplace. Not as its the California the been owners,

on, have building it's so little been you operating negotiating even that couple time cycle. change, and time the it agreement why bit permitting. was and from let's the a say environment the our shorten them. a might and we we whether and say I good. of tell then that intent will that, longer of a in you by you we've of to addition there, relationships. gas we've cycle and regulatory funds we running, get maintain up advantage letter say very the them very, have sign the you than because let's designing, the plan the and But earlier think competitive started, been that's lot changes feel three-year the that can projects, California little We to see customer, a RNG, as get bit, money In a a And And I agreement, things on. a identify But so it's and lot a and of we going the

had development in have are pipeline, they the And operate backlog. even I few and I estimate our build cautious. another the and have down was have why an the numbers Report. out. day but it's you example, quite made them, bit other freeze And little we up only have we're And plants them. mean, project, quarter when give the to we because Antonio this will the we to a out of four our going pretty we we have we not We I maintain ‘XX. didn't complicated. a three San more. of XXXX know We I Annual weeks if we On there, good about thinking be three

back good four We like of of be very than are two had couple these XX back you very, build thought a They very so very so about as to And Our so important But the weeks, out have out less might We lost are got we assets. not are confection capability. weeks. for we that plant Woodland freezer a solid that on. days. this. the got guys, estimated complicated. And easier. feel we that's They they had other then much days. And we you And they with we because the week. demobilize and it and the it plan, within to the

I read the I you other coming On book Paranoid the market. Grove, and into am Survive this hand, the the stay of money always Andy with to ahead all probably competition. try this by paranoid

Craig Irwin

to ahead of stay Congratulations no Ameresco. at competition. going you're and George your execution. This is the on impressive here really impressive have we Well, performance doubt the team Great.

George Sakellaris

Thank you. Craig Craig. Thanks.

Doran Hole

Thank you, Craig.

Operator

Our question Thank you. from Ben [Operator Instructions] next Baird. Kallo of comes line from

please. Your question

Ben Kallo

yesterday. Hi, say happy George I And partner, question guess my thank My to George told you, me evening. for good day Dave to is….

George Sakellaris

Thank you.

Ben Kallo

for And me welcome. too. You’re

batteries how difficult I wonder that's for bunch solar. focused you've on the the different or capital opportunity. maybe you, capital you the up than opens you of, is until now. kind all this opportunities, think any And and renewable what you’re I it the I raised And of have capital have the With just said, next or XX things questions And gas this microgrids the or haven't just new if natural years, more mentioned wonder that… you look about step at

George Sakellaris

distributed it. than the combined I is about microgrids I generation, emphasize property any statement made and or of renewable stay more heat look here we've know, and question But the assets other power future. RNG ones. No way we to it's the all other think the think somewhere I

that attraction, more that energy going lines some very asset they distributed the admission going excited basically, think we to why a to day, another the end industrial commercial about built-in And will resiliency, microgrids And we’ve we're that's some service. some very, it's talking direct very class it down for will shop. be by that's out and will generation. have, as that customers, we’re because good that gained at find be people, they they're of of And

much. in as decision, more future. the Now, you're as generation, looked energy see made going have And solar that business that we thought gas, past, this we are But that market. is service going with there not in the the will well I at we green have and in it. I this accelerated also you is we capital is what traction envision because and the the role the and capabilities would get to way, microgrids, talked as -- But that's and in see where why the well. the think play when particular good very us the didn't of the more emphasize as only wave I we in the that

Ben Kallo

you've or the you good different because are at. same set attack at different opportunities? I how how do so customer guess, good you're between and them Well, the those then been what

do customer, And opportunity, know, you do exit so pivot? have you not the new up you to how Or to a same open

George Sakellaris

we although a savings third-party the it's because it no we've show paid energy financing. service, as energy contracts. deal savings going sheet energy performance the customer XX service on is been customer's through different a the on does because have other as the Basically, a And a last all gets financed we contracts contract. the sheet do No savings shows years. the that as balance the not. get on performance are that And we the doing on we Energy not for balance service off a it on when generally, contracts, that get energy

I get the margin first was XXXX, another we way, a the energy So service back to can over [Indiscernible] be -- can we as the contracts. from by contract it will and make XX% that pivot the contract as don't the performance customers savings, energy we'll have in that service, into XX% a of so did, they that I

Doran Hole

carbon opportunity market. I ownership follow Ben goals across of the think the, the clean goals that energy are proliferating asset Yes, and also reduction the will kind

federal well much the market. both the corporate as obviously that's government as, So plus market,

And get going to financed. to so think that demand, these to of I way a continue things lot drive that's offer flexibility we're the in going

that. So customer going to think you, a sheet asset PPA the a this deal the put to more do And with balance or to have standing I if we be that on just us or our we're energy an firepower provides equity service, after what wants it. ready as go

Ben Kallo

or last much. And a or else sheet, perspective debt maybe much balance guys guys just very guys one do from thank you anything at can the reach? to very for anything your that and on like that. expand you looking Thank doing continue you

George Sakellaris

Sure.

that financings to do but the So, think debt future. more, do on for work if side, to about on we asset non-recourse we're project decide the going be in forward Ben, and portfolio it certainly, and the based not that talking continue are the we'll I to continuing on meaningful are we company will that obviously I'm to

Operator

you. Thank

Our Blair. in from William of next a Mulrooney line question Tim comes

Your question, please.

Tim Mulrooney

Thanks afternoon. taking questions. Good my for

George Sakellaris

Tim. Sure

Doran Hole

Hi, Tim.

Tim Mulrooney

up recent long and has potential if ticked know distributed you're sales with working I with in customers? here. energy generation around conversations But freeze your more So or security cycle a curious winter customers Texas the

George Sakellaris

the New think that now now more we Norfolk they Naval it the that in has we every back would that we started same I generation years. a and XX% Yes, right battery Take three wind committed to will no basically now, before, or pretty in York, But thing. New was X the for solar, I already are it a then, at especially commercial way some nuclear will of Jersey. double base it generation be planning particular that it have and battery question people, a till back a talk lots the I to realize line that I have which would to power And become of out industrial two it clients, can I the Shipyard combined then say. Sunday contingency now go. it is kind at to But there the the load States, from it that's at that do has but is were England almost talking XX% with about heat United resiliency. a losing and this electric solution. XXXX. going much admit project on and way look colleges way mean, recently, going will recover microgrid Parris Island, to to storage. and all this with of We're doing New some about Take simple the we no units[Indiscernible] and your contingency, XX% load load the way us they and doing it right Because ones you mentioned here looking of with the colleges, at which resiliency life England, customers give contingency, way single distributed the low be going get and it. will of storm when are probability New XXX storage a farms be at of And way has coming

Tim Mulrooney

you. it. Got Thank

George Sakellaris

getting So are they traction.

Tim Mulrooney

around all starting like, ESG, about And curious to conjunction recent in this if what uptick George? a from CNI service resulting with for with energy in year, and as environmental example, corporate time an interest if over offering, to taking thank clients Okay, the you're see in traction, new relative you. headlines then, administration and even the say, any last for that's for responsibility

George Sakellaris

a associated Yes, that pretty with traction energy. as and service into energy regain we get good

mentioned reduction customers told have have we comments it at my some on I -- them and in why the here in we and activity. so last help. government I and to from do that's my CNI that software it our that about to we call guys, in get say, they call, the hey, tell somebody are first We something think comments a we do need I made that where got it time

Tim Mulrooney

much. Great. Thank so you

George Sakellaris

Thanks, Tim.

Operator

you. Thank

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

question Your please.

Eric Stine

George. Hi,

George Sakellaris

Eric. Hi,

Eric Stine

to sticking maybe Sorry, CNI. with

area do since can be starting I your what You and you're think of out you And get you more that you'd look energy business? years. look fall know, something that the traction side the to you to at going on or mean, you expect that think forward? mix asset to overall obviously more then kind of five as that do three an that, about that side do that's think on that's project as you

George Sakellaris

can design this no, side will more like, you about bank, megawatts develop Fargo we project the the have as built And own Wells a for we own now, is talk we're said There the assets. of on it. we us, Right we do solar. they out, is to we XX than going on started the then,

that. hand, near talking way. they a the on we deals see future can in other be are other we that will are couple in So But that the go there the hopefully

So I early I more but we little bit add reserve get I wants will think Doran too judgement something. a to to until will it's tell, information. let

Doran Hole

rating cost capacity, a so bit on credit in of more strong something financing with credit and depend. is to looking whether I little be differ spectrum high think or driven large it'll to is their funds, is access talking corporate going for low that of terms down about it'll customer what probably and a the depending it you’re a by the

Eric Stine

terms five your you still is meaningful this you get Got a of very out mean, of majority just it. traditional? And think then, mix I will that the do you more mix, years do in of think be or to three business part

George Sakellaris

I think will the be I project meaningful. business, it of think

Doran Hole

I it be certainly think it'll meaningful, will increase.

and federal cetera. say are et would increasing and their I on goals, our reduction market and equally that and the cadence proposals customers municipalities traditional government RFPs carbon However, merge

grow to the are still Yes, others, others than the So, growing. but faster I mean, corporate certainly going

Eric Stine

Thanks. great. that's Okay,

George Sakellaris

Certainly. Thank you.

Doran Hole

Eric. you, Thank

Operator

line Our of Genuity. comes the next from Canaccord Jon Dorsheimer from question

Your question, please.

Jon Dorsheimer

Hi, guys. thanks. execution, on Congratulations strong

George Sakellaris

Thanks.

Doran Hole

you. Thank

Jon Dorsheimer

I guess the seeing first question, on inflationary material we're pressures things. side just of curious,

in thinking And those terms customer I'm Are so or on prices of project to, plus given negative -- wondering But in you're about certain point, threshold do over you to getting some how see of type able cancelled business? at cost the a the terms just you contract, I'm relationship. structure impact where to gets any based project a you're assuming on in that push able

George Sakellaris

Buy periods that pre but time, we so some very, it very the we of other there. is, have not subcontractor, of point of buying on some when equipment panel many the company. had do the hasn’t thing performance some the overall significant payback on. other we when generally, we contract. bought And lights, period the pressures because and far, pricing will then hand, or No. microgrids it actually lights some our we see And and those then of exposure changes, so but the we you will some to it as of then and cancelled, in price business risks the project And the for good manage carefully. watching equipment are contract battery controls the storage, some very just delays, take the there. sophisticated the the And some in well, remember, a equipment, and times we the on street very, delay we've of that longer in we and then but jobs, of do some be the sign impact had so have especially have a

Doran Hole

any mean, a that procurement the I'll our only our right. thing contribute components particular we there portion is supply I of add chain, that such large have don't our needs, needs,

for was impact? pressures inflationary example, was one So, most an there on right. get impact, Sure, there I our mean, negotiated. contracts steel an of

sold. of our of spend on there margin portion time, in even substantial not the but represent a So cost we've protection, does our got of goods that cost the at same execution

the diversity I So that somewhat types the by we're we're buying. of of equipment think protected

Jon Dorsheimer

driver, to that companies to low some is I'm then and And up follow wondering Great. on the side terms out or of just driving wondering a we is more the office in most me, as I that and are functions back his you in industrial the of business to buildings CNI? some prepared terms the system? particular, parse the are How are the better like project HVAC resiliency it question structure. projects on the as just of know, driver commercial for top station office broad resiliency, categorized of parking in -- garage or on mind to in in go the you the and features of the the kind of type offering a rather also would office [Indiscernible], charging delta CNI or of occupancy side, on that's if think the could of preparing

George Sakellaris

to we're a couple systems the storage. that, more back projects talking then selected some resiliency. is comprehensive stations it's solar, microgrids office, like a and get will and we they But something the realize the then have a some new or how we environment, a on. it but Because we developing of I bank now make primarily the to HVAC I data charging battery that know drivers or maybe the we they And do or solar, sure centre got to you're because getting solution. and then around safe filtering people say, and so that back because own that's want we the gave

Jon Dorsheimer

That's the color. great. for And congrats guys. again, Thanks

George Sakellaris

very much. you Thank

Doran Hole

Thanks.

Operator

from from today Raymond of James. And question line comes Thank for our final the Molchanov you. Pavel

question, please. Your

Pavel Molchanov

taking question. for the Thanks

in think proposal talked the the the infrastructure the army If have I as question solutions by corp the XXX Department to or the kind last willingness to Defence. Have contracting well. a any some changes adopt or you in just specific we engineers? efficiency about of approach the about relation concrete of rhetoric duty So we've from of days? noticed the

George Sakellaris

But an here. last week, Yes, I she the was asked excellent [Indiscernible] question it’s same question. when

requests for federal last months, we Given for the over perspective, first zero the government. coming had year, your RFPs six

not main five year, quarter ones but last for savings specifically, anyway. pretty is attitude, five of for energy designed projects. because which and money. even have built will only why much this project business, year, was up performance is will driver the plus the year the that's everything that's come this down. contracts, didn't the savings, new last to they with but wanted much, more in the was have three you the in comments. incorporating they previous renewables, there But the the positive, So it year and of driver, another resiliency, components the many, contracts. that that but get It's infrastructure far see have But months, of second we various upgrades, which the time -- the other much administration performance we This we our in this any the resiliency, renewable But think want only we made administration, addition energy not closed infrastructure now upgrades because I to

things the of that And bill considerably. we're some on help working this infrastructure will

they and say under whether saving So can it, it more power the out it will energy a giving agreements their do flexibility a farm to they PPA the option to do performance purchase solar take under have contract, goals. achieve or

Pavel Molchanov

contract Yes, question. that's One $XXX an DOD interesting detail you the that. in highlighted more, million. Norfolk on year-over-year specifically comparison. that appreciate same The I And

if I'm think kind allocate? between year me it's the of correct history, recognizing and largest revenue What's next -- the wrong. that this sequence the I of

George Sakellaris

it have it's the fire That million project a a been Plant, two it's the XX close energy was complete. $XXX we one project brand $XXX the for enough percent note that way Power worth. now. right building about a as they And was that us. it's about way, of on million, a a a we couple coal contract the so largest definitely megawatts Actually, transformative savings years way the did. anyway. Woodchips that it's demolish By schedule, And get performance river, We not new cogeneration back plant took paid

Doran Hole

that Yes, complete, years, that constructing we'll will into project we move that what then right the project XXX% years, percent deliver XXX% can X recognize CET, we're we deliver and as the deliver? under, as it, two for O&M Phase complete,

Pavel Molchanov

Right so…

George Sakellaris

And excellent project particular completed, item once on this is it's an that contract

Pavel Molchanov

Right.

next? So and half this half and year

Doran Hole

hope I No I think…

George Sakellaris

half of than No, this I would say less year.

Doran Hole

Yes.

George Sakellaris

Probably less and year more… half then of than this

Doran Hole

And next year. more

George Sakellaris

we just, Yes. we on. the permits we early moving I got so And said, the it March, started because and reason equipment like behind

Doran Hole

so think start see of to But to it ramp next I up. we'll yes, Take more some year. time really

Pavel Molchanov

you Understood. very much Okay. guys. Thank

George Sakellaris

you. Okay. Thank

Operator

conclude gentlemen, you does Thank This well as Good you. participation. now Thank program. your and you today's day. Ladies as session the disconnect. question for and answer may

Ameresco (AMRC) 5 May 212021 Q1 Earnings call transcript