Ameresco, Inc. (NYSE:AMRC) Q3 2019 Earnings Conference Call Transcript
Nov 05, 2019 • 08:30 am ET
Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Ameresco, Inc. Third Quarter 2019 Earnings Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. As a reminder, this conference call is being recorded.
I would now like to turn the conference over to your host, Ms. Leila Dillon, Vice President, Marketing and Communications. Ms. Dillon, you may begin.
Thank you, Chris and good morning, everyone. We appreciate you joining us for today's call. Joining me here are George Sakellaris, Ameresco's Chairman, President and Chief Executive Officer; Doran Hole, Senior Vice President and Chief Financial Officer; and Mark Chiplock, Vice President, Corporate Controller and Chief Accounting Officer.
Before I turn the call over to George, I would like to make a brief statement regarding forward-looking remarks. This call contains forward-looking information regarding future events and the future financial performance of the Company. We caution you that such statements are predictions based on management's current expectations or beliefs. Actual results may differ materially as a result of risks and uncertainties that pertain to our business. We refer you to the Company's press release issued this morning and to our SEC filings. These documents discuss important factors that could cause actual results to differ materially from those contained in the Company's projections or forward-looking statements. We assume no obligation to revise any forward-looking statements made on today's call.
In addition, we will be referring to non-GAAP financial measures during this call. These non-GAAP financial measures are not prepared in accordance with Generally Accepted Accounting Principles. A GAAP to non-GAAP reconciliation as well as an explanation behind the use of non-GAAP financial measures is available in our press release and in the appendix of the slides, which can be downloaded from our website.
I will now turn the call over to George. George?
George P. Sakellaris
Thank you, Leila and good morning everyone. Third quarter results were marked by record Smart Energy Solutions Awards resulting in record total project backlog. We also had significant growth in the Ameresco assets development pipeline resulting in a record asset backlog. Sample versions or awards to contracts expected in Q3 were delayed, shifting approximately $30 million of revenue out of the quarter. I will point out that the number of these contracts have already been signed since September 30. We expect the remainder to close in Q4, and most importantly, the overall trends in our business remain very strong.
Our robust asset development pipeline will allow us to more than double our megawatts in operation in the coming years, significantly increasing our base of recurring revenues and earnings. At the same time, we have continued to build our technical expertise to address the increasing complexity of our customers' projects and Company-owned assets.
As we have indicated during the last year, we have made investments in order to develop significant domain knowledge in areas such as battery storage, microgrids, smart controls and