Revenue during the quarter dropped 4.52 percent to $180.60 million from $189.14 million in the previous year period. Gross margin for the quarter expanded 229 basis points over the previous year period to 21.48 percent. Total expenses were 94.49 percent of quarterly revenues, down from 94.89 percent for the same period last year. This has led to an improvement of 39 basis points in operating margin to 5.51 percent.

Operating income for the quarter was $9.94 million, compared with $9.67 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $19.19 million compared with $16.10 million in the prior year period. At the same time, adjusted EBITDA margin improved 211 basis points in the quarter to 10.63 percent from 8.51 percent in the last year period.

George P. Sakellaris, chairman, president and chief executive officer of Ameresco commented, "Third quarter results were solid and built on the momentum we established in the first half of the year. Our focus is on growing earnings faster than revenue, as demonstrated by the significant improvement in both net income and adjusted EBITDA. We are confident in our outlook for continued growth in the years ahead. We continue to build our portfolio of distributed generation assets, increase our penetration in new and existing markets, and grow our contracted backlog. We believe our broad and deep technical expertise and innovative approach to energy efficiency and renewable energy projects will enable us to sustain our leadership position in the industry."

For financial year 2016, Ameresco, Inc. projects revenue to be in the range of $645 million to $660 million for financial year 2016. The company forecasts diluted earnings per share to be in the range of $0.25 to $0.30.

The company has spent $47.90 million cash to meet investing activities during the nine month period as against cash outgo of $30.12 million in the last year period.

Cash flow from financing activities was $92.84 million for the nine month period, up 58.73 percent or $34.35 million, when compared with the last year period.

Cash and cash equivalents stood at $18.36 million as on Sep. 30, 2016, down 13.64 percent or $2.90 million from $21.26 million on Sep. 30, 2015.

Working capital drops significantly
Ameresco, Inc. has witnessed a decline in the working capital over the last year. It stood at $54.56 million as at Sep. 30, 2016, down 25.56 percent or $18.74 million from $73.30 million on Sep. 30, 2015. Current ratio was at 1.30 as on Sep. 30, 2016, down from 1.40 on Sep. 30, 2015.

Cash conversion cycle (CCC) has increased to 15 days for the quarter from 7 days for the last year period. Days sales outstanding went up to 47 days for the quarter compared with 44 days for the same period last year.

Days inventory outstanding has decreased to 4 days for the quarter compared with 7 days for the previous year period. At the same time, days payable outstanding went up to 66 days for the quarter from 58 for the same period last year.