Opening of Proposals - WWTP Solar Guaranteed Energy Savings Contract Proj. No. 124-015 - Ameresco

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Table of Contents See Notes 8 "Leases" and 9 "Debt and Financing Lease Liabilities" for additional information on these financing facilities. While we are required under GAAP to reflect these lease payments as liabilities on our consolidated balance sheets, they are generally non -recourse and not direct obligations of Ameresco Inc., except that we have guaranteed certain obligations relating to taxes and project warranties, operation, and maintenance. Federal ESPC Liabilities We have arrangements with certain third -parties to provide advances to us during the construction or installation of projects for certain customers, typically federal governmental entities, in exchange for our assignment to the lenders of our rights to the long-term receivables arising from the ESPCs related to such projects. These financings totaled $533.1 million in principal amounts as of December 31, 2023 and $478.5 million as of December 31, 2022. Under the terms of these financing arrangements, we are required to complete the construction or installation of the project in accordance with the contract with our customer, and the liability remains on our consolidated balance sheets until the completed project is accepted by the customer. We are the primary obligor for financing received, but only until final acceptance of the work by the customer. At this point recourse to us ceases and the ESPC receivables are transferred to the investor. The transfers of receivables under these agreements do not qualify for sales accounting until final customer acceptance of the work, so the advances from the investors are not classified as operating cash flows. Cash draws that we received under these ESPC agreements were $154.3 million during the year ended December 31, 2023 and are recorded as financing cash inflows. The use of the cash received under these arrangements is to pay project costs classified as operating cash flows and totaled $260.4 million during the year ended December 31, 2023. Due to the manner in which the ESPC contracts with the third -party investors are structured, our reported operating cash flows are materially impacted by the fact that operating cash flows only reflect the ESPC contract expenditure outflows and do not reflect any inflows from the corresponding contract revenues. Upon acceptance of the project by the federal customer the ESPC receivable and corresponding ESPC liability are removed from our consolidated balance sheets as a non -cash settlement. See Note 2, "Summary of Significant Accounting Policies", to our consolidated financial statements in this Report. Other We issue letters of credit and performance bonds, from time to time, with our third -party lenders, to provide collateral. Selected Measures of Liquidity and Capital Resources (In Thousands) Cash and cash equivalents Working capital Availability under revolving credit facility Cash Flows The following table summarizes our changes in cash, cash equivalents, and restricted cash: (In Thousands) Cash flows used in operating activities Cash flows used in investing activities Cash flows provided by financing activities Effect of exchange rate changes on cash Net increase (decrease) in cash, cash equivalents, and restricted cash December 31, 2023 2022 $ 79,271 $ 115,534 $ 227,000 $ 189,283 $ 37,489 $ 345 Year Ended December 31, 2023 2022 $ (69,991) $ (338,288) (566,943) (328,358) 640,803 730,227 $ 3,788 $ 62,834 Our service offering also includes the development, construction, and operation of small-scale renewable energy plants. Small-scale renewable energy projects, or energy assets, can either be developed for the portfolio of assets that we own and operate or designed and built for customers. Expenditures related to projects that we own are recorded as cash outflows from investing activities. Expenditures related to projects that we build for customers are recorded as cash outflows from operating activities as cost of revenues. 37