Ameresco, Inc. (AMRC) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $3.27 million, or $ 0.07 a share in the quarter, against a net loss of $1.14 million, or $0.02 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $3.53 million, or $0.08 a share compared with $4.21 million or $0.09 a share, a year ago.
Revenue during the quarter went up marginally by 0.26 percent to $174.22 million from $173.77 million in the previous year period. Gross margin for the quarter expanded 327 basis points over the previous year period to 20.67 percent. Operating margin for the quarter period stood at positive 4.21 percent as compared to a negative 1.88 percent for the previous year period.
Operating income for the quarter was $7.33 million, compared with an operating loss of $3.27 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $14.38 million compared with $13.12 million in the prior year period. At the same time, adjusted EBITDA margin improved 70 basis points in the quarter to 8.25 percent from 7.55 percent in the last year period.
"Ameresco executed on the growth strategy we outlined in 2016," said George Sakellaris, chairman and chief executive officer. "We invested in growing our share in new markets and increasing our penetration in existing markets. We continued to build our portfolio of energy-producing assets, and we realized the benefits of our restructuring and reorganization initiatives from the prior year."
For financial year 2017, Ameresco, Inc. expects revenue to be in the range of $665 million to $700 million. The company projects diluted earnings per share to be in the range of $0.37 to $0.43.
Operating cash flow remains negative
Ameresco, Inc. has spent $58.07 million cash to meet operating activities during the year as against cash outgo of $49.54 million in the last year.
The company has spent $79.62 million cash to meet investing activities during the year as against cash outgo of $51.83 million in the last year.
Cash flow from financing activities was $137.30 million for the year, up 36.34 percent or $36.60 million, when compared with the last year.
Cash and cash equivalents stood at $20.61 million as on Dec. 31, 2016, down 4.80 percent or $1.04 million from $21.64 million on Dec. 31, 2015.
Working capital drops significantly
Ameresco, Inc. has witnessed a decline in the working capital over the last year. It stood at $35.46 million as at Dec. 31, 2016, down 57.77 percent or $48.52 million from $83.97 million on Dec. 31, 2015. Current ratio was at 1.19 as on Dec. 31, 2016, down from 1.47 on Dec. 31, 2015.
Cash conversion cycle (CCC) has increased to 11 days for the quarter from 7 days for the last year period. Days sales outstanding went up to 27 days for the quarter compared with 26 days for the same period last year.
Days inventory outstanding was almost stable at 4 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went up to 42 days for the quarter from 37 for the same period last year.
Debt increases substantially
Ameresco, Inc. has witnessed an increase in total debt over the last one year. It stood at $159.88 million as on Dec. 31, 2016, up 40.35 percent or $45.97 million from $113.92 million on Dec. 31, 2015. Total debt was 20.05 percent of total assets as on Dec. 31, 2016, compared with 15.63 percent on Dec. 31, 2015. Debt to equity ratio was at 0.54 as on Dec. 31, 2016, up from 0.39 as on Dec. 31, 2015.
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