Ameresco, Inc. (NYSE:AMRC) Q4 2022 Earnings Call Transcript

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Doran Hole: I think if you look at the landscape over there, having gone outwards and found this company, kind of no banker process here, this is kind of the outreach that we’re doing is, we’re looking to expand our own business across the region. There aren’t any particular geographies that are — where we’re focusing 100% of our time. We are being opportunistic. We are finding the opportunities where businesses like Enerqos can be kind of tucked in. I think the — you’ve seen the expansion of our activities in Greece. We certainly like Italy. We are not going to go into markets where we are not going to be able to compete. I think it’s — again, it’s opportunistic, and we think there’s certainly some — going to be some more opportunity out there for us.

Christopher Souther: Got it. No, that’s very helpful. And then maybe just on the SCE progress. I think you had called out $35 million last quarter that you expect it to be 2023 revenue, but I wanted to kind of focus on — it looks like the costs and estimated earnings in excess of billings came down again. I wanted to get a sense of timing around payments if we have a sense of when that starts to look like a more normal number again if you have any visibility on that?

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

George Sakellaris: Admission .

Doran Hole: That’s right.

Doran Hole: Yes. So we — as we said, timing wise, we are looking to complete these projects by the summer. I think that’s kind of when you’d see the invoices start going.

Christopher Souther: Okay. Great. And then maybe just last one. Of the 80 to 100 megawatt equivalent additions for this year, can you give a mix between solar, batteries and RNG? And then any sense of the cadence would be helpful there, and then I’ll hop in.

Doran Hole: I think we are looking at — so sorry, give me a second to get the numbers. So we think, out of that, the RNG, we’re talking about 22 megawatts out of that 80 to 100. And the rest of it is a mix between solar and battery.

Christopher Souther: All right. Okay. Thanks guys.

Operator: Thank you. One moment please for our next question. Next question will come from Tim Mulrooney of William Blair. Your line is open.

Tim Mulrooney: So apologies for the overly simplistic question. But I had in my notes that you expected to complete one RNG plant in 2021, 3 in 2022 and 5 to 6 in 2023. But today, I think you said 3 in ’23 and 5 to 6 in 2024. So did the whole RNG completion timeline essentially get pushed out by a year? Or were my notes incorrect?

George Sakellaris: The 1 in ’21, that was ’21, ’22 — that came in mechanical complete ’21. And the ones in ’22, there were 3, you got correct. And then there were 5 to 6 going beyond that. The delay — the actual delay is between 4 to 8 months on– between the 3 and the 5 to 6. But the 5 to 6 became 4 to 5 because actually 2 plants that we originally were contemplating to go to renewable natural gas and clear conversions, now we’re going to — we stopped doing any work on them because we will most likely keep them . So I would say, 6 to — 4 to 8 months delay.

Tim Mulrooney: Got it. Thanks, George. And you talked about — for my second question, you talked about that 20% — essentially 20% EBITDA CAGR between 2022 and 2024. And I understand, given the timing of projects and such that the 2-year timeframe is probably a better way to look at things. But stepping back and thinking about that 2-year timeframe how should we think about how much of that growth is coming from projects versus EBITDA coming in from the energy operating assets?

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