Earnings call transcript Q4 2022

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Operator

Good day, and thank you for standing by. Welcome to the Q4 2022 Ameresco, Incorporated 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] Please be advised that today's conference is being recorded.

like Ms. the now your over would today, speaker I to conference hand to And Senior President Dillon, Leila Vice of Marketing. Ms. Dillon, please go ahead.

Leila Dillon

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

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

Please forward-looking a Today's over risks turn George, results I SEC are contain Safe make the Harbor filings earnings to to in our remarks. differ refer could forward-looking major language our discussion call statements to materials, a that including and our brief I the and regarding regarding Before from of those like statement X, forward-looking to today's statements statements. for expectations. risk statements, forward-looking earnings materials would uncertainties. actual on our All the factors Slide to subject cause

we financial measures use when In non-GAAP our presenting several addition, results.

to measures our We have these in information. included supplemental reconciliations the financial

I will the George? George. to over now call turn

George Sakellaris

revenue Thank afternoon, while our record great completed of This everyone. challenging Ameresco's to performance XX%. on results, of aligned growth EBITDA global adjusted We report portfolio reflected advanced how XXXX. issues. and market The We for and performance navigating fifth robust good Leila profits. achieved impressive Ameresco and consecutive XX% year year our this and revenue I’m of pleased full well demand. technology you, with growth are capabilities team delivered just

two RNG related chain and in supply was quarter issues our to push impacted facilities. at scheduling maintenance fourth by changes outs The the unplanned implementation, of

quarter XXXX. in and business into that we timing the But year. half these related normalize likely they of issues are first and second will the continue second of of Some short-term the that believe will

Southern and outs push this the large unusually will year comparisons, of we very the Edison light in contracts. California face this difficult from Even

is year-over-year EBITDA. a our diversified XXXX guided We clean growth in true be model. expected tech are very of to This our business growth adjusted pleased to validation

net and proposal demand activity high healthy with activity. Market conditions remain very

continue they are working support recently technologies projects. to as Inflation very of comprehensive Our type solution Reduction IRA their evaluate favors enacted Their by greatly customers provided Ameresco. the of range the to broad the timing and for providers, prioritize Act, such a and

We transformational believe come. a this deployments providing with for Bristol advanced more to including technology decarbonization award a affecting of legislation runway Europe, is XXXX industry of year U.K. our marked clean the long-term the City accomplishments the in years our in major for

also zero the thus, and Both large very joint Greece. being projects project, for to municipal contractor project PV Greek not only regional addition significantly of but these this geographies, the in largest of venture selected XXX respective also our the net contracts some our for Northern transformational raising In in was selected the megawatt Ameresco, represent for as profile.

footprint fourth Ireland. energy the acquisition an announced announce we farm resources, European acquisition X by we agreement ENERQOS, of In a services wind the Italian to excited adding further strengthens And quarter, today, an acquire local based This also commercial be of immediately are throughout expect company. Ameresco's strong to a megawatt have and of a customers new industrial as They ENERQOS we This work And history and pipeline to acquisition supports markets get this strategy of a C&I the accretive. portfolio growth for customers. Italy. profitability. our in

while our management acquire strong with long-term order merger in regarded and highly generally minimizing growth great for for teams, plan shareholders companies to value to risk. strategy Our acquisition and create a organic

self developing biogas to of Now, about experience I would over like renewable natural vertically integrated gas. years talk With XX plants. in

market customers RNG in for should push many by universities the space. very to players utilities, large of the the transportation leading in corporate one attractive institutions, plus We the years market and incentives Federal make come. are this

We equipment our and and we biogas plans, a in permitting With navigating competitive we franchise to will many plants agencies XX the significant RNG developing, believe driver fifth continue authorities these pipeline, in in suppliers. believe development operating be contribute advantages and shareholder in significant constructing have value. our assets

would I Southern like provide Now Arizona California a project. for to update quick the

also in XXXX, and we third regarding project noted relief. As force into the California, Arizona as XXXX. COVID-XX the of schedules we weather-related quarter distracted Southern majeure adjust discussions We're continuing

projects in to service be of anticipate to the summer prior the We XXXX.

very California, Southern be with continues Our relationship cooperative. Arizona to

the the expertise in gained and from stories, this knowledge and to one other we microbial berries, go have large us and of The industry. companies make projects

wins to look the areas in future. in these We announcing additional forward

well silver Finally, of remain to our proud and goals in employees, the place focus. customers stockholders. pleased serve, top as be corporate were environmental, awards. social winner and as we work a to in culture caring I named by best worried best our very and a company's at which of governance the in the biz We am communities our very programs for

will to Doran? the turn I to outlook. financial and our now performance over comment Doran on call

Doran Hole

Thank you, George, everyone. and good afternoon,

lines and the The were additional delivered another profitability. all solid team as refer closes record press financial Ameresco four please information, growth posted supplemental the to and financial today. that For results market our slides of our release experienced to website year after business of

complemented SoCal XX% as O&M of to assets, growth a on other our the was and other to growth we that Full lines, million. adjusted This strong the our led growth record business of by continue energy to performance XX% projects leading was by three EBITDA projects. execute of $XXX.X business year revenue

of the XXXX. We comparisons started projects year-over-year fourth business difficult to face during in quarter our

the Given QX that e-projects largest of XXXX. work commenced during on our

in difficult challenges revenue. over that comparisons through These third mentioned year George previously, expect declines XXXX. continue to together quarter this in resulted quarterly with of project year the the We

by due expected at Energy are two operating facilities asset now But maintenance QX. revenue in these output. was issues our at down year-on-year to of X% RNG unplanned plants their

with growth to as of continue the attach we On the quarter contracts O&M X% those business government. other projects, line hand, solid delivered federal especially our O&M to another our

had up line revenue double-digit of growth other our quarter another XX%. And

As $XX.X SoCal our as margin led as our XX.X%, the XXX total percent basis revenue generated of declined adjusted the we of the is ahead important EBITDA of projects gross higher-than-expected carry as that by prior of We mix. SE increased extension the quarter. to contract interest capital. note expected, lower expense was quarter in required million margin It to points the year a working impacted us substantial to

backlog we proposed discussing included in. conversion at awarded for backlog our contract the X% $X.X recovery Of Total healthy project projects of the additional Even continuing costs end interest the note, in light project compared to in been quarter. revenue. Our expense momentum And with allows the of of billion have was we cost that have a last build year, grew backlog future to release. revenue. for this substantial SoCal SCE to

Ameresco and expanded assets its of development end of the our portfolio owned XXX assets megawatts operating the at energy XXX megawatts was to and year.

our as reminder, the partners a after interest. forma we're disclosing total pro both adjusting a megawatt As for supplemental of development total our as in slides well net assets in equity

the Our group stage nationwide development front Greenfield of opportunities. its of solar up and continues pipeline build storage early meter to

these related to driven of volume incentives by assets. numerous IRA expect these grow opportunities the to We

financing the remained $XXX strong, Our project financing these as the our total additional year, up bringing we million quarter, million. energy finance assets for ability during secured in $XXX to to

contracted only of energy energy assets. us have previous and given future of In the from revenue we operating market estimated project model to quarters, over backlog, business unique forward Ameresco's billion believe a Together, these our reported $X business visibility, O&M backlog, revenues. and the substantial incentives combination lines pricing provide assets. contracted revenue and affords We our for in estimated path

As life our proposition, George we believe estimate started we RNG that help asset value complete noted To we’ve the RNG driver these of providing a stockholders. to an over of our RNG significant value franchise assets. expect our more to for uncontracted picture of generate revenues a show that the earlier, is

and RIN for where MMBtu. revenue of market operating assumptions per top $X.X of at per on at is all based $X pricing for LCFs be revenues per an from of these on applicable gas of revenues We This assets. brown projected Using $X.XX our RIMs. and the MMBtu $X.XX conservative operating revenue additional billion RNG estimate again, billion $X prices our from contracted gallon, merchant life to assets over just RNG asset

an of life years. assumed asset XX average We've

the additional value include in to and creating Of we enter course, visibility of I'll by revenue longer only assets still expected any XXX operating megawatts into have does we development term we assets not that doing and are feel option the relates our from so. that reiterate in uptake currently If construction. energy revenue contracts. are our to million $X.X

add those profile. assets significantly in begin revenue expect turn operating, more our to visibility to As we

The guiding the XXX difficult to growth, and and assets to impacted be SCE anticipate had equipment. longer service EBITDA growth we Guidance. of to projects. very anticipates Turning as adjusted times between RNG schedules pleased expected to permitting large megawatts continue be of midpoint. we energy comparisons at as were mechanically We're delays, by XXXX and XX lead certain by to XXXX end the to of even placing progress, of face complete on X% XXXX. types the during plants due We their three guidance this

these in have also expect additional year. three stages several plants operational we of forward, assets be we development. And to Looking RNG late this

or those five of will come during expected four online We XXXX.

which $XXX The to million Our we of million. with fund for debt. is XXXX expected asset CapEx to $XXX non-recourse expect majority

first the range we $XX quarter, million to $XX to EBITDA the to of million estimate look revenue of and in million we $XXX adjusted As $XXX to be million$.

GAAP We positive. EPS slightly be expect to non

we working on outs our impacted asset of noted, Furthermore, net related projects impacted be of normal carrying capital. of and costs continued George top a SCE the expect be push will by income As seasonality. couple project by QX large to on energy

of the remainder our year. XXXX We throughout normal expect follow improvement with the progressive to case

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

George Sakellaris

to of million positioning geopolitical We As around target growth. continues and the climate, Dillon. in invest budgetary enhance EBITDA, outside addressing our solutions, long-term to governments, solutions, our light an line for you, us adjusted XXXX provide to world the in Ameresco institutions maintain robust, Thank challenges. expertise excellent $XXX profitable

our to discussions institutional in to expanding investors Finally, being on presentations on will London welcoming focus we panels look plans Europe. and key feature growth expansion our XX. From including leadership forward Day continued May and held our our event Investor opportunities, team for executives. European in This by analysts

to questions the to like now. would call we open Operator,

Operator

first Our Instructions] question come Oppenheimer Co. & of Kaye Noah from [Operator will

line Your is open.

Noah Kaye

for Wonder of Obviously, hey by could bit the little terms development. I your timing get if the afternoon. mentioned first should the you permitting milestones that challenges thank degree taking you you. questions. some of on in color granular which know start a hit the top here bring resolved the of more don't us around being if projects -- mind sight line can scheduling chain. in we you RNG online. to Wonder half supply Thanks challenges the those giving Good but just Anything those key of to of to year. that to have consider and

George Sakellaris

though guess X cases, -- they permits months, building I got even we take had a took and stuck started we in And permits, delay. weeks, there like would permitting some some the we one environmental got these the things months. in that case, normally as issues. difficult as in we though was several And much

it The this the other major December lot, a we February example. equipment August. for the early one and got sides, And July late the in other delivery year, delivery happened turned that's for thing last we're of a couple example, for and expecting out

very the we by scrub advanced will carefully. that development construction completed good they forward, did schedule plants year. stages middle the plants, So the very, completed a And Actually, five of mechanically then that's year. this three going said or four right we why all other now. very, are And the part what have of we them, permitting the they're in to we

the with build about issues the up. way the anticipated bottoms we we [indiscernible]. So never by And it chain supply

wiped example, California, and rainstorms into sites forth. of [indiscernible]. we have one kinds Everything of done in the so some Another out built, excavations got all on, we've the so and

and our carefully want only to Doran the in any to guidance, more it, the in year colors if can't schedule, have well. not very know this it as next factor we year, we the don't I but scrubbed for add and numbers for So

Noah Kaye

development. RNG very of That's helpful. the Sticking with theme

You said you biogas talked in about development. I XX projects having, think

of are of more to You developments RNG, said for with policy assets, RNG. to perhaps biogas all biogas more beneficial landfill wondering perhaps I’m rather some that than supportive some gas electricity. just the

now thinking for yes. think clear year bureau you about your how assets? to Just bring an you're optionality I what pretty are it's online planning expecting for biogas this RNG,

George Sakellaris

one renewable EPA. site it natural We plants. had of to another and hearing we we're did subject We to sites, two the six optionality Actually that expand electric, was convert gas. when with last to going going comes it that we that through to now year it We to think to five gas. said renewable actually to what and one natural think stopped because plan go we're

we are electric. preliminary most the in Now will go stages likely

ones be be go four the that we have road. in that will economics we down will we the renewable we that the right So as gas have already four there to five, natural talked put now

I they ones to think landfill other turn some electricity. be might out a

Noah Kaye

Okay, great. -- many you. I'll over. turn X'll more, it but Thank

George Sakellaris

you. Thank

Operator

Thank you.

of question next Stifel. Our Gengaro come will from Stephen

is line Your open.

Stephen Gengaro

Good $XXX pretty EBITDA two start I'd for ramp. guess afternoon, I mentioned and confidence everybody. a steep with, on that's your What Thanks. some you me. George, million target,

path you talk there? the to little I think in 'XX about growth of 'XX. versus get could it's -- sort a bit you XX% Can

George Sakellaris

'XX, comfortable at in growth, very, the not of year. into, or but at number, you because that it get solar we much other jump The to we We line. so the for feel operation. you go X look XXXX it's XX% if very Yes. look Between basically from I but years, to we quick from the contracted assets building very the But battery project mean to and that at a XX% were we whether contribution not awarded 'XX up we carefully. a place we The it's in will it's RNG to the at we backlog, it way asset look look growth if contracted the that very it's very level, little and And bit which backlog. from it's past, it XXXX out have I a backlog including business, feel lumpy assets, only the though, XX% each is are on, it, comfortable. that and XXXX. storage backlog, it

Stephen Gengaro

just the George. as you, Thank your far about things in well ask other is just feels It thing the was Great. then And on wanted as side, like I pretty progressed general. to backlog have contracting concerned. sequentially

Just what line? the when these interest any rates, getting impediment you're across conversations there inflationary like? And the and been finish customers given are and have to to talking environment deals the

George Sakellaris

happened and of then a did go almost energy and couple this on price the finance, financing we then then the negotiate very in the one what facility, million $XXX remind we to Yes, jump, on business client financing. has detailed projects. scope within because push now, get rate so it [indiscernible] they that -- everybody a I'm large they them it's with the couple way a save process, outs actually and project. get overall interest a the audit, but out the them, in in of -- interest of the talking the the it couple impacted of have points the federal the And good of incident, the And we jump rate, then -- the the we the to project. we and example when

going the of drawing and so the project renegotiate scope to back we're board, the on. So

was a And got of of but And the to so one interest go other one, municipality, rate, out was and new the they because projects. reconsolidate the bid. higher that it

grow. and be to very comes the chunk wait But and of a to them their getting So the going said now, of waiting IRA. impacted. we request, out. activity from little would a of though, from growing bit timing it's they're business actually, the the and on is what's money IRA projects lot. feel much reason, That's But it's a money comfortable good the say, and we And think why my how I to getting see good the though, from bit that's activity, that until It'll IRA, the how for customers a projects little forward. we concern, get going a couple the going a pipeline and some see have I is the the everything the but comments, projects the will prioritize we're lately, why we because happened

Stephen Gengaro

you Very for good. color. the Thank

Operator

question. for please next moment One our you. Thank

Greg Our come Wasikowski & LLC. Webber Research will next question of Advisory from

Your line open. is

Greg Wasikowski

Greece, Europe expand Spain, into just additional does there. like Thanks. territories, Good kind probably the make our you about market thinking just more ask France, Does like areas? before the targeting a I Thanks talk existing for actively Was that with questions. Portugal, wanted have you to it guys. origination And thinking business easier in any about understand help Italy taking it Hey, those afternoon. you that of other to that trying were operations but any this? Could relationship. to of Enerqos. synergies

George Sakellaris

That's a very good question.

we recall countries the that of expand. as might one Italy we that You wanted have to targeted

we team did of and a we acquire, and so So very, over And will then had whole there, the we very are that market basically that in wanted similar there. I this good particular with a what meeting, are effort the then call management might on went make approach the then them what made meet doing. company identified had the met very, potential internal intensive went we and that we then Zoom to to And a we on. and they companies people and we arrangements team

I energy what and focused finally, more they Europe edges the do conscientious good to a higher C&I of program going get it, But of very something. customers cost, then them. that's about their to course, have Europe, happened C&I?" to actually we they are in and the are act the Because because said, focused together help in it's Then C&I on "Why are customer. on beginning in Basically, government exclusively ask almost company, an they're you the services the them, I

And other in with some partners are -- some have we And in companies. had a very have we that it's through other very that company. Italy been little very those traction some we we doing about. good good excited So and work

now, we gives pretty management So for company good something companies, this it a large us small announce in other [indiscernible] anything [indiscernible] talk the be in solid, great secret, surprised might Europe. team. platform world-class could a have us probably we And looking and not this we to don't are a And most one foundation. company, And what don't a have for as operates about though right to and about we like it's company, it's it else solid a like that we future. near even but

Greg Wasikowski

it. Got

I Thank you guidance. too guys if asking it's about much or worth EBITDA know George. can't this numbers, stake the perspective to Okay. expect you, on you be earnings but you say And an or And if in XXXX? if think accretive to

George Sakellaris

by close and be so accretive. our XXXX, time it's included guidance deal the going For to it's the it in we But not will on, now. slightly --

Greg Wasikowski

you All Okay. Got all it. Thank right. guys.

George Sakellaris

Thanks.

Operator

And you. question. for one Thank moment our next

next Our Gianarikas of Canaccord from come question will Genuity. George

open. line Your is

George Gianarikas

taking my for Hey, good question. afternoon. Thank you

So spent discussing last interest Doran, quarter, you time rate some exposure.

projects kind and that are remind First, capital impacting with again go deployment. it your rates your then and over of exactly your stack business us Can asset to how impacts balance you how regards Thank just how and and just it you. impacts sheet?

Doran Hole

Sure, we'll do about the our second, Thanks I'll in we think but with start assets on for we question. talk -- the the SCE Yes. speaking, broadly financing I piece what long-term. mean energy I is George. is, a

the I have there guys So haven't interest some despite of the overall end about the of on recent you've been short shift impactful of curve. the as looking curve purposes what And think we're end nearest the as exposure. seen, seen talking rate for you at volatility, longer maybe

So that's point kind one. of

the little the high outs. push a Ed talk interest did about bit expense SoCal We on

costs that's overall to that, to their element that it's of important folks in an to I ability have think related of we settlement change. recognize for include the the kind

discussions. as to we So that you doing that, might center the we're, calculations continue of is the expect, all those will front and from information and ensuring and monitor that perspective

rates all we guess of RNG I muted get we our exposure just up. to and related capital at that there. overall despite required of through particular market our capital think should ability development And beyond SOFR fact normalize expecting working that of financing kind hasn't unhedged we short-term to large anything of do the is year, short-term so or lender in the be is I much the on we more as last of the interest that loosened did That our transaction refinancing looking in rate piece for are assets, that the SCE, like the construction nonrecourse still in because invest that rest to hit the QX some debt.

equity we overall still are to sale tax long-term. be the to using able great impact We don't and leasebacks, expect get financing

George Gianarikas

that follow-up, and wondering I'm much you have permits if trying help as that handicapping And potentially in and talked 'XX you should your be is your there, us exposure EBITDA and you lot based understand and guidance volatility potential you. in index? a much RIN to And monitoring just 'XX discussing about what pricing. -- to to you. other Can help kind can you much -- understand a us guidance. your Thank delays then as also in and analyze on scrubbing we movement and 'XX think dedicated of Thank 'XX how much EBITDA how as

George Sakellaris

that the know XX% plan are you they we hedged. that the to generate for RINs year Well, of

when is be prices XX%, Doran, to right. to market, And think that them we we So anything are market guidance and we we as the we sell will right the in we other incorporated now. get feel the able the our on have add?

Doran Hole

in what's based on happening finalize do as of summer the to but for I might least. the the expect, at think unhedged be when they and happen you as the adjustments just portion feel you RBO, the our we've we you, engaged what eyes following on where will confident mean, in estimates established year And kind our EPA I made. will heavily we're like with as what

George Gianarikas

you. Thank

Operator

for question. our next you. Thank moment One

next Eric Stine Our will from Craig-Hallum. come of question

open. is line Your

Eric Stine

everyone. Hi,

George Sakellaris

Hi, Eric.

Eric Stine

but XXXX just Hey. to go the you want EBITDA clear. Maybe just to be reiterated we back outlook and can that, great just that

like from operating assets contracted, is that together, yet backlog got all about this the you plus -- So you've what take percentage not when you where you've yet your signed a or something buckets? awards if those feel visibility is not think that you're thinking we all that that of of Is about in? need still number Or 'XX? at high-level to stuff should are looking that -- is you you when into fill it I there how confidence? mean

George Sakellaris

very it's confidence in because it of say, Mark would we I his whatever high-level when does pretty the XX%, pipeline, are up the unless a it is at numbers, much. XX%, takes

we something control that feel established were If Now, that I pretty but to certainly bit out back, number able our possible, be think a feel we happen we is deliver good. Because pretty good when we'll that number. we conservative. way that little

We might have the bag. say, a little bit, in you

even number us, that's some to though had feel we so And stands and good things it. we happen about still why that

Eric Stine

Got then guess for last one it. And great me. I color. That is

a the your know that if you how more is growing in you've projects as guess much mentioned on that, in got don't willing Just I of a left? project, to SoCal of you're Edison discuss pipeline. number result I interested project But of that

maybe color big as some big Edison, maybe but not So as nonetheless. SoCal around those projects,

Doran Hole

just that in the they're me and front, -- proposal start by on I'll Let definitely large small. coming saying

any other we are SoCal they're know, one There of going projects see look that balance add contracts sizing other the when size proposal mix as like straight in as to a don't win that's Ed single for is we when you them sheet you at from very or SoCal projects. perspective, very, some owners. number maybe a And our like did we're types you competitive up We placed excess of of on asset of to utilities quite construction feel but of be Ed certainly SoCal it's a market. assets these good As activity. Ed, those well together, a all of for the well

there. I to So come think more there's

backlog, We we about. of about pulled into excited really, really discussions awarded get design are into a seeing some we're about move as think they them those will definitely projects toward being that build but I talk the

complete end XX%-plus by the probably we XX% of itself, SCE For XXXX. --

So the perspective, grid from practical to integration before as said, and a we focusing completion, substantial getting on summer.

Eric Stine

you. Thank Okay.

Operator

one moment next Again question. you. Thank our for

Riley. next Souther from Christopher will Our question of come B.

Your open. line is

Christopher Souther

the taking Thanks evolves other my Do kind Maybe you project through guys. just sheet where on on the what over that over kind well. markets balance they for acquiring? this curious there follow-up of then as Or if talk you're a Hey, time were market-by-market from of a Enerqos. of more questions assets have business? are that just projects to Thanks. is is helpful? here. ones perspective, foothold owning And gain you'd a acquisition be can most I'm

George Sakellaris

very design I growth those the marketing there's capabilities, We think this say, little as they solar look and any we But the buys a and now. sheet right do they additional we might the conduit they've our more have a O&M. build of got some they balance assets on And them. management their and And see Yes. not that let's a take bringing That's have, business. accelerate sheet customers basically, on then plant Also think that projects. potential we that of end can do to balance projects. some multi as the have of at O&M And some us they tremendous on balance of financing the why the assets the us for And with expand particular I business. day, well. sheet

we looking for what these has energy beginning where for are, a generation some the and company. this particular because us, been of of now customers. and some Europe, developed other that good are price institutional they And in with towns, the picking it's companies industrial commercial And the similar, management the in especially I accounts are similar distributed Europe, happened the cities governments think, And they the team in up. market is we the of companies

I can grow think we it.

Doran Hole

XXX% company, look no any geographies the you if of found at aren't are is kind landscape we're that this of our banker outreach focusing the there, particular this kind gone -- of expand business here, region. over our doing think we're where across outwards I There that process the time. own to we're having is, and looking

opportunistic. We are being

We can are like where tucked opportunities of the finding in. kind Enerqos be businesses

-- of the seen Italy. like in think Greece. the We activities I expansion our certainly you've

We able not to markets are are not going where to go compete. going into to we be

it's think think we more there opportunistic, there's out some opportunity -- -- again, I us. it's and going for certainly to some be

Christopher Souther

helpful. it. SCE the then Got maybe that's very just progress. on No, And

I called excess we it to sense $XX to costs that? had it estimated to like on focus wanted any be out billings you last came have of but kind number again. looks have you a in the look get quarter think around to normal XXXX of payments and like expect -- of earnings million a you that on if I I when again revenue, sense down a of that visibility if timing starts more wanted

Doran Hole

I perspective, mean is it bulk more less substantial or the talking an on about of completion. you're from unbilled

George Sakellaris

[indiscernible]. Admission

Doran Hole

That's right.

Doran Hole

Yes.

as So wise, we are looking these timing projects complete we -- the to we said, by summer.

you'd kind the when start going. I that's of invoices see think

Christopher Souther

then megawatt of Great. solar, this Okay. and and sense a you any XXX then equivalent And there, would the batteries hop additions between And year, Of mix cadence just I'll then to one. the give RNG? be XX maybe last for can in. helpful

Doran Hole

the get sorry, at looking to so numbers. are a we think give second I me --

between megawatts RNG, we talking mix of the out that, battery. XXX. it we're XX rest that to XX So think, and a And of about is out the of solar

Christopher Souther

All right.

Okay. Thanks guys.

Operator

our Thank you. next for moment please One question.

Mulrooney question come Next of William from Tim Blair. will

Your open. line is

Tim Mulrooney

RNG had XXXX. to you plant 'XX I X you think that question. apologies and XXXX, XXXX in But today, But to the one notes and XXXX. in X said my complete in X in in So simplistic to X X I for in X expected overly

Or pushed whole did my completion year? out incorrect? get So the timeline a notes RNG were essentially by

George Sakellaris

keep 'XX. them will then 'XX, mechanical originally we to to X But in And we X And on-- 'XX 'XX, going 'XX, X -- between we clear X in contemplating the The X them because came to actually the X beyond [indiscernible]. between plants the we're go X X ones work there -- X, and were that. complete likely you on there to that X conversions, because became the X to correct. going were got X now were was delay that natural renewable X and to delay in to doing the The stopped months -- X. most is that any to gas actual

to months delay. I X to X say, would So -- X

Tim Mulrooney

is think that probably and George. EBITDA back XXXX. between thinking coming of XX% is look EBITDA for given from I stepping operating Got X-year about things. that -- assets? XXXX much should it. XX% And growth -- a second way question, X-year timing better you and in the about Thanks, about of projects talked the to and projects timeframe coming the that my from about understand, how you CAGR how versus timeframe essentially that And talked we But energy at such

George Sakellaris

Yes.

as if other well. business, I to business a from were it the the 'XX last and grow than The think the asset project very take is XX then go O&M that year well, That's to to going And forward rather and is O&M. [indiscernible] CAGR, to you comes it taking XX after even -- the [indiscernible]. going from forward. growing from

Tim Mulrooney

it. Got

Okay. Thank you very much.

Operator

you. one moment. Thank Once again,

next question our -- question Harrison Piper will Kashy Sandler. of from next come Following

line open. Your is

Kashy Harrison

afternoon, for and question. you Good the taking everybody thank

guide. -- full XQ ramp wanted XQ XQ quick to question So $X.X the billion. the of just a revenues of on to I pretty a I million get $XXX and big year guess XQ, guide implies just into to

QX, share XQ, XX-month exactly the there on we backlog? some us much and what gives push can that And think details the on projects think XQ? how I confidence you of color then indicated by more already O&M are maybe outs is guide big some as in you some just the you behind of recovery about but revenue XQ, share secured maybe

Mark Chiplock

is mean -- this Mark. I Yes, Yes,

So backlog. guide from have that we visibility about from we anything our comes that I we've before, the the talked again, in think, confidence as

side, we total of we from are coming than more the revenue project consider from contracted have project XX% better On than the so or is from a revenues awarded. XX% And contracted then what sources. coming either perspective,

but throughout visibility -- think we to have line of how year. There's be. those some I opportunities the really going in So to going that what to pipeline, end ramp we're we of terms the are think from again, that's always achieve have good that amount to I come how of able sight decent will

end going that between year. QX to to the of and able in be the So fill we're

Kashy Harrison

And you. Helpful. my cash question as on follow-up, just a then flows. Thank quick

was ops from of flow million I'd the was project. cash adjusted by XXXX $XXX Edison cash. driven So use that imagine

in to on your go on could out wondering of you're midpoint just some looking based cash billings you color maybe the was the I how with the flow of 'XX summer us year, if adjusted guidance? give the So about thinking ops from in

Mark Chiplock

these build that. the expect Everything to we that able have right for. But the I is to a in been Doran revenue. date summer, mean, paid tied and we unbilled have we to wrap up of up lot saying, we as generally by haven't was been that projects now contractually, to guided

I are those should cash soon number. come after should to projects in would we which point flows expect adjusted improved think cash So completed, much mass a to [ph] directionally the

George Sakellaris

depending to I we we up. next the to as can operate wrap weather building we on about -- projects substantial completion Yes. mean talked there's these we -- important when get continue if California, being points, the in

might think the with beginning terms, you actually out. on of payment cash the in QX,depending when go coming see I some bills the flow

can't would a that we're around. say talking quarter that's the and I So timeframe be turn of you'll here, it about see kind that but specific

Tim Mulrooney

Thank it. Got you.

Operator

next our for please question. moment One you. Thank

Joseph question Our next Partners. come will Osha of from Guggenheim

Your line is open.

Joseph Osha

a is you. Thank It [indiscernible].

from what the mix in. this Following QX like. a out on there we higher we should Kashy EBITDA as bank at Is absorption? that considerably wondering rate XXXX to was about? looks Are rate, want what shifts terms the a of goes revenue mix walk comes run cost quarter-by-quarter on just-- in to I'm think QX EBITDA basis some about think straightforward understand of that which obviously just asking, I I a

Doran Hole

anything George of carried to don't there, preparation talked are costs really some I them The we for signing. signing, we that amount contract Joe. with and with push know that those things back have expecting, larger kind good of out share you in some projects recalculating a going of granular where about

a this not charge is go the quarter to bit revenue little get having where And just quarters of quarter push two outs we So one but from once to the next, maybe later. contracts one that get signed.

bit latter that execution that start that half and especially as year. ramp, of and explains on work as a those though. anything I some share you kind here to don't to We of there's in meaningful think really of are full of mix little the projects in the seeing far as

seasonality of progressively we the end of year we've just moving balance course got what kind typical be to QX to to the up the from see of back and a QX the year, For over where going our expect the to the ramp-up we're again, more QX.

George Sakellaris

speakers]. go not and time we to then which why especially got I might that's revenues statement takes two but some add that It construction mobilize, get to mobilize [multiple What and coming It projects of ones. you to on months it takes the quarters. of revenues the those months to then side. That’s the to -- some in a the say, said delayed, Yes. I made couple particular project, through only see X has you compounded projects happens a to that real large why lose they for I signed, --

Joseph Osha

Okay. a as then -- Thank you. okay. And

learned projects? talking with to of -- like round you to replaying projects wondering how storage differently additional products next How How your backlog SCE? how you we've for As sales approach a been what's that's source hopefully all contract? the happened what are with are you got you this avoid SCE changed future in Thank going follow-up, maybe that come from feel to you. lessons storage projects I'm some the about. obviously, you've and

Doran Hole

prepared really to I lessons learned shut shipping the well was for that actually will cetera. How chains [indiscernible] you we start Shanghai The well, a a how supply with well be or we in contract. event? et are done for majeure force that -- think [indiscernible] down well prepared are you

I So the the been delays. most that's think us causing what's of

to talked associated projects about desire SoCal's great the this into related is go other we As XXXX. with to delays sync those have in

of I no lesson call our customers. with theme valuable it's SoCal while the a important an -- relationship well, projects, future a our it one this than more but honest thing having lot and is of -- carry will very and your with that's through open open there's but -- there's the is, honest that we've beginning. to learned, got a nothing there I projects follows from a mean to has been company So actually solid, that Ed relationship with no

meetings. executive high-level continuous have We

that, think that's a critical importance. I

and important pieces at management executive manage the get get to is opportunities, sometimes on puzzle can know ensure what counterparties the new teams when us of So to smooth the on, projects. approaching ensure a we our that of are proposals, of to process new the be can that's management for early suppliers we involved one our large some team that

about So at of the way to working and mind adding resources was the the really end are its with the time proposals using projects. on we've day, that ensure resume, new the We a that to executed there's looking of I lot projects on approach share way at and of on are respect those feel the the we on forward built. and all contracting the to a that that that we lot worked feel that spending the our project we great a like think we're going working

George Sakellaris

why that call that signed what projects and contract on bringing might that's supply may several now And I become company the we XXXX, in have we lines issues it. have California we go but back that when to and remarks I we project, situation. unprecedented my come we add, into And everybody to those the Edison the we sorry, working we through, I'm I September opening up right contract. a along situation, recall, said similar a then thought Southern in you chain in of COVID-XX basically, in will executed out ended are

well. think did we pretty I

Joseph Osha

you Thank guys. Okay.

George Sakellaris

George. you, Thank

Operator

please moment One our question. for you. Thank next

EF Moore Chip next of Our will come Group. Hutton question from

open. is line Your

Chip Moore

then Hey, When do ask it everybody. maybe funding clarity do to relates outs push get customers for a risks for there of sort you to acceleration? as Thanks. in-cap IRA. on opportunities? Wanted or potential any you how visibility think potential on And question better

Mark Chiplock

acceleration. would in of frame push or context outs that know don't the I I it necessarily

their with do They -- control do customers comes guidance kind comes it as government of treasury out collectively as seems eager. jump in as the we immediately out, soon like okay, as as do guidance. guidance pace think I next? they're the of are the us advisers bated But and So out, on breath out soon our about, with waiting issue and they of it is actually contact the all what which our seem will with it come

e-mailing clients same -- guidance day go. were the the totally communities, the okay, income with treasure on out we low to us, And came had the ready

and et on likely time an guidance forth. we with number But to so going -- think think the we're project dynamic of realistic be customers is the and this as so we that some by timetables also to once ensure out. we but we Here certainty go. have execution cetera. apply about we pursue a comes IRA that's need times George our about execution, to interesting talked and think procure be to I going I supported is so and it's have equipment, on as and This where the that structure There's be scrambling, to

Chip Moore

[indiscernible]. for Thanks it. Got

Operator

coming Instructions] shortly. up you. Thank next Our be question [Operator will

Molchanov Raymond James. [Operator will Pavel Instructions]. question from come next of Our

Pavel Molchanov

Thanks question. for taking the

and asked like the higher you been also interest the several rates development? to of I'd affecting business higher times your about plant utility solar rates. about efficiency and how talk Thanks. that's power You've both side

George Sakellaris

But any we might rates of and rates. had and contract, into or asset whatever the current that said take prices. on that's interest ourselves, the it's made the project question back energy own though rather doing and impact We about use even baseline no expense we the that on old rates. than one, interest higher it. say, earlier us, that project [indiscernible] go on solar they're prices the account what renegotiate to that goes The on let's why higher contracts new we it's course, And I that we interest what why underwrite, that's performance the

gets But on the we gone the we into that though, the own, prices of the up, it other And on with take have hand because assets neutralized contract. account. performance energy

we much in the short-term shop, out, line. long-term long-term up capital what as rates impact rates go and use the gone So the us will and be, we rates the short-term on the see as the we haven't we working but that rate,

Doran Hole

there of up higher And lag in energy off with rates et those kind happen respect given same, do there's believe is the a long little of the will take development catching I expectation cycle the the same energy for to cetera, prices I elsewhere with contracts, where our purposes country thing going the of some the just are of but assets, the there. of bit think a

Operator

Thank you. One moment please for our next question.

question Kallo Next Ben of will come from Baird.

Your line open. is

Ben Kallo

next Hey, the no George year, will for EBITDA you ideas gave there then, IRA. guys. was

biggest could you. is, If second what's -- So and the sorry the ramp good for Thank it's big a for from the could you just versus the year to driver. year of And IRA And talk about maybe this name next are next not drivers year? what year biggest what's to EBITDA? just beneficial big next question from that? you question to EBITDA driver interrupt,

George Sakellaris

but number taken IRA. will from chunk placed the substantial It's the assets on that not of we again the have project potential any come operation. from good project. from a impact based execution, will in A come the We

the the number by and contribute this year we the will quarter, operation megawatts know help a in of vessels was we on in lot. contemplated, that And that well. will they the assets I operation will they we into in couple will a come -- XX as then, and they XXXX.So RNG of put year them, first For course, of example, last early of asset the in go go end number of but

to have and then if of don’t contributor though. add I they the working you projects battery we as can business, other a Mark. color, on. well. are business, other the they of And know, I don't that more a couple -- then good know lines we and help will So want become any

Mark Chiplock

it. says Thanks, No, I much think that George. pretty

George Sakellaris

Yes.

Operator

participating. call. And that conclude This Thank conference Q&A have the all we for the be time you. will you session. for all today's will also Thank

day. disconnect, a have You may now and pleasant

Ameresco (AMRC) 27 Feb 232022 Q4 Earnings call transcript