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Ameresco, Inc.
8/5/2024
everyone. We appreciate you joining us for today's call. Joining me here are George Saccolaris, Amoresco's Chairman, President, and Chief Executive Officer. Doran Hull, Executive Vice President and Chief Financial Officer. Nicole Bulgarino, Executive Vice President and General Manager, Federal and Utility Solutions. Mike Backus, Executive Vice President, Renewable Natural Gas. and Mark Shiplock, Senior Vice President and Chief Accounting Officer. Before I turn the call over to George, I would like to make a brief statement regarding forward-looking remarks. Today's earnings materials contain forward-looking statements, including statements regarding our expectations. All forward-looking statements are subject to risks and uncertainties. Please refer to today's earnings materials, the Safe Harbor language on slide two of our supplemental information, and our SEC filings for a discussion of the major risk factors that could cause our actual results to differ from those in our forward-looking statements. In addition, we use several non-GAAP measures when presenting our financial results. We have included the reconciliations to these measures in our supplemental information. I will now turn the call over to George.
George? Thank you, Lila, and good afternoon, everyone. Before I get started on the Q2 results, I would like to address the statement captured in our earnings release. Toron Hall has resigned as Chief Financial Officer to pursue other opportunities. We greatly appreciate Doran's contributions over the last five years and wish him the best in his future endeavors. Doran will continue to serve as Chief Financial Officer until August 30, at which time Mark Chiplatt could be promoted to the Chief Financial Officer. Mark has been with Maresco for over 10 years and has served in multiple roles with increasing responsibility. I am thrilled. to have Mark step into this role as a seasoned MRESCO leader. In addition, Josh Barabo will assume an expanded role as a Senior Vice President of Finance. I believe our deep bench of seasoned executives will skillfully navigate this transition. And now on to the results. Our momentum continues into the second quarter as the MRESCO team again delivers strong revenue growth across all four of our business lines, led by an impressive 45% growth in projects revenue. At the same time, we continue to build on our excellent long-term visibility, increasing total backlog by 36% year-over-year to a record $4.4 billion, while also bringing a record 655 megawatts of energy assets into operation. And we still have 635 megawatts of assets in development. Demand of our renewables, energy efficiency and resiliency offerings continues to be very strong as our customers see. Clean technology solutions that yield more cost savings and increased reliability. MRSCO's technology-aggressive platform and depth of engineering expertise allows us to stay at the forefront of the energy transition. While our market environment continues to be very strong, we do understand that there is a lot of uncertainty around the upcoming elections. MRSCO was established almost 25 years ago, that has not only grown but thrived under a variety of administrations. The foundation of our business is helping customers, including the government, achieve cost savings and improve their energy infrastructure in a capital-efficient manner. I have asked two key members of our executive team, Nicole Bolgarino and Mike Backus, to join us to discuss their business. Nicole?
Thank you, George, and good afternoon, everyone. As George just mentioned, we are excited for the outlook of both our federal and utility businesses as we expect continued demand for resilient clean energy projects for many years to come. Over the last two decades, while we have seen policy and messaging shift from one administration to another, the key drivers for our business have remained consistent. Our government agency and military customers continue to be focused on mission-critical projects that deliver secure and resilient power to support their bases, ports, facilities, office buildings, and military housing communities. We are uniquely positioned to help our customers achieve these objectives by reducing load through the latest energy efficiency upgrades and by deploying distributed generation solutions. Across multiple administrations, we have delivered large, highly successful, comprehensive energy solutions for the Department of Defense and other government agencies. We have a very strong pipeline of additional projects and assets integrating domestically sourced solutions using third-party financing. For our utility business, our customers are focused on providing cost-effective, reliable electricity while also transitioning to clean energy. In addition, they need to increase capacity to address the load growth driven by electrification and data center development. More recently, utility customers have been utilizing battery energy storage solutions for resiliency and grid stability, providing critical power during peak demand periods and allowing the grid to better handle an increased amount of intermittent renewable energy. We are already experiencing rapid growth of our utility business, as seen by the meaningful increase in the number of significant announcements made in just the last few years. The battery storage systems we recently celebrated with the United Power Team in Colorado last week are a perfect example of this work, as is the large Capenna solar and battery storage system we brought online in June, which is a great example of an integrated solution serving both our federal and our utility customers at the same time. As you can see, our strong reputation for technology expertise and execution places us in a prime position to capitalize on the expanding opportunities in both the federal and utility markets. Our projects save money, enhance efficiency, provide clean, resilient, reliable power while creating jobs and supporting local and national policies. This great value proposition is in high demand regardless of changes in Washington. I will now turn the call over to Mike. Mike.
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