Capstone Green Energy (CGRNQ) 11 Jun 212021 Q4 Earnings call transcript

Good day, ladies and gentlemen. And welcome to your Capstone Green Energy Earnings Conference Call and Webcast for the Financial Results for the Fourth Quarter and Full Fiscal Year 2021 ending on March 31, 2021. All lines have been placed in a listen-only and there will be a question-and-session following the presentation.

As a reminder, today’s program will be recorded. At this time, it’s my pleasure to turn the floor over to your host, Mr. Counsel. Corporate Petersen, Colby is floor yours. the Sir,

much. Thank for conference And you afternoon. today’s you call. fiscal year very joining full XXXX thank and Good fourth quarter

On earnings Hencken, results XXXX. Chief Jamison, Officer. Today, full is and the year Energy for Executive the Financial me issued fourth Green Energy’s and its Chief Eric fiscal Green for President Darren and Officer; Capstone call with release the Capstone today quarter

under the future will remind found XXXX. website views or We XX, call Capstone June referring these on call forward-looking the company’s that to to everyone and of representing or statements update conference to revise statements Relations be can Investor disclaims events today. be slides this contains want circumstances. any during estimates today, to reflect as the section our I that obligations

You would because implied differ and the the place and on reconciliations the in by Executive and some and statements results Capstone’s expressed like Officer. refer control. referring and Darren Chief presentations as EBITDA turn adjusted with on actual they now risks, they filings I Jamison, are to factors slide over to today, to statements. those materially in mention these factors that cause Please Exchange to involve cases, that when should Eric Please note from discussion the forward-looking uncertainties such undue and through that set forth or President Darren go EBITDA, call unknown information appendix. in they our harbor provisions concerning Securities for are, our could other and not Commission two reliance beyond safe the known to

review afternoon, quarter us today Colby. our full ending XXXX. fiscal March everyone. joining year for Thank you Good results XXXX fourth you, XX, and Thank to

provide like improvement financial I’d our update fourth from highlights the review specific quarter into EBITDA initiative. getting Before financial an recent and on to results, adjusted

some I like fourth of couple last more we’ve the Revenue to four. I nicely start attention run but a the your Let’s quarter. important fourth quarter. draw On not financial with will beginning would year’s and slide in to slide compared up the events was item, go revenue. with highlights outlined of four, to ahead each through

was COVID up related issues, of Although $XX.X tough significant is for $XX.X quarter, very with year still last million growth with million year-over-year. the the from revenue

in adjusted excluding in the $X.X negative bonus year the Our to million settlement, EBITDA period previous of of of operations last positive compared of cash million, from we quarter, $X key and in million including was to million a for $X cash the year. metric executive a quarter $X.X negative operations legal million the same $X posted used fourth compared

improvement So that’s a year-over-year. $X.X million

last without the compared to spoken I executing strategy our this this larger a with but million of settlement, I’ve business year. the happy from that balance having solid say relationships positive to even to frequently, we know increased over growth So and quarter. customers. operations for into cash is $XX.X crossed cash I’m sheet $XX.X about at million, critical end to build

We to million $XX.X five loss $X.X year. on fiscal of Slide cash Moving last million the five. operating a of compared XXXX. generated slide year to full activities, shows from positive

most and three-year it flexibility again a million balance a generated down Revenue for point loss million This of history. company and loss was generated inflection So million year-over-year Capstone X% ongoing despite external the positive headwinds. $X.X w year. ago. Adjusted $X cash versus million is significant also versus we only our adding lower million, at term our by Also refinance upsized slightly be cash the executive extremely of that not $XX.X last bonus EBITDA rate in sheet. numerous $XX.X was a the is to Sachs to overlooked excluding year fact Goldman $XX note represents

of Turning here to that into than have we issues future on I But we our with result throughout efforts, we all XXXX. those fiscal of slide. much adjusted anticipated. We discuss the despite finally efforts to XX.X% ongoing very we’ve originally every XXXX. of have are XXXX. results of quarter know EBITDA accomplished our we shown what are stated the The six. need best COVID longer slide We this in achieved I’m fiscal target. proud momentum lasted talked net is carrying about this the fiscal

discussed, and in an done excellent we cost in the have efficiencies job As have cutting I business.

are exit COVID. now growing the We laser focus topline revenue as on

future are slide seven. on last despite to Now XX% very quarter part we Even $XX.X that the been sequentially, well solid the the gross we we million, have reached it and quarter. prior you at if let’s we vendor by product going pandemic the for quality was impact the legacy third fourth things year where these impact many with This although fourth COVID a our quarter, nice XX% accomplished of represents is issue. go shows and and above begins over period and made look of direction the progress quarter. This move growth have ongoing In hidden the of from bookings. which the

of COVID and Eric indicator over proud turn now a product gross times is we’re details are we’re solid to quarter Eric? on I’ll out that more unhappy the We coming provide that better financial results. ahead. the call fourth bookings to the leading of

our fiscal on for found fourth Thanks, XXXX, Darren. review XX. can which financials now quarter in be the nine detail through of slides I will

million to to to Revenue compared revenue year and a prior compared Quarter-over-quarter $X.X As year. Parts million increasing from service is the in XXXX. of heavily our revenue the or improved also was line as $X.X on million million Product fiscal Energy item we the our $XX.X quarter. up the million, Starting today reminder, of quarter which margin was project in results and is million, $X.X or at with XX% results. to with you revenue million increased issued the with XX% in and $X.X of fiscal million starting Gross to consistent XX, company delays fourth which a due prior up accessories, preliminary those nine, primarily last start being Product our the increased quarter. $X.X $XX.X also negative quarter. results pandemic of $XX $X.X Energy will X% compared to in Conversion to every revenue $X.X select compared Service negative prior and XXXX $X.X quarter million COVID-XX see released slide prior the million preliminary million quarter quarter shutdowns. fourth fourth are the or site the impacted revenue, on April results to XXXX, revenue

of the million to increase compared in primarily in non-GAAP and gross Plan million fielded a compensation the to and the was remaining to was quarter for of million, our XX% amortization, flat negative were quarter. parts revenue prior quarter. in to $X.X supplier million the Our Protection gross $X at replacement failure the Factory X% year expenses of because margin in former in a revenue, $X.X part $X.X or margins. or due in excludes was expense accrual The Non-GAAP of accrual prior $X.X stock-based some margin compared reliability risk depreciation gross reliability defect. which Operating million of units our due high year improvement repair margin, repair

quarter executive fiscal negative if in legal quarter prior loss compared negative primarily costs not but $X.X an fiscal year fiscal fourth bonus That and adjusted million $X the $X extending fourth from million expense in XXXX, to $X.X to compared the down $X.X was executive exclude million. to were COVID-XX bonus they quarter improvement continued was That million, decrease our due one-time that of in existed million, Plan. EBITDA the excluding Continuity you and was XXXX to XXXX. of million, However, in Business savings of $X.X

versus COVID Turning to XX XX% revenue million, given as Slide year. was in primarily Factory a over percentage compared Operating as very slide of an $XX.X It significantly of to in due Protection or savings as XXXX. full Continuity million this this, $XX.X year $XX.X level. $X.X was or the a million nearly of margin prior feel coming to was year. XX% $X million revenue, in XXXX was to impacted We gross to XX% revenue Business cost revenue overhead the Non-GAAP million was compared revenue, Gross summarizes prior revenue million was tough our year. Despite our you year prior environment. improvement Plan year in $X.X every COVID-XX to margin gross non-GAAP know. as $XX.X margin fiscal from $XX.X year. million XXXX expenses decreased well of margin, full last million cut $XX.X the of or Plan. The our XX% compared in million in XX. on quite fiscal flat we accomplishment the or results by at increase

However, cash highlight $XX.X cash $XX.X the supplier you compared $X.X executive year plan. not prior fiscal our see a the of bonus On capital select XX, to $X.X continuity equivalents. of million million COVID-XX executive can $XX.X loss compared our $XX.X was loss exclude settlement, decrease legal in in here but million XXXX, a cost in related sheet of $X This business loss million, was balance that an fiscal they primarily million. XXXX bonus The exists fiscal million decreased to XXXX. improvement adjusted to due savings an slide and to expense million, from if items. and is costs and one-time EBITDA you excluding to Net was

XXXX. of cash from $XX.X XX, March $XX.X had XX, XXXX, as up hand, we of As on March in million

as great critical also of fiscal to XXXX. turn XXXX, back $XX.X Cash made it over down You’ll XX, well our to With strides flexibility. strategic to Darren. decreasing inventory $XX.X of manage million million capital is see in we We March XXXX. March working as with I’ll from that, XX,

you, Thank Eric.

focus XX. Let’s on go and slide

what know review key want Here our release I highlights to on I transition April Day run We in Energy but now four our virtual XXnd, that we’ll to discuss business and strategic recently means. business again. Earth in this the press Green lines. the through view Capstone we

business program. critical visibility Let’s are parts, this higher our It innovative begin contracts, financing. Plan, service margin and includes rates. transition project flows spare rates. distributor long-term common This EaaS. leasing, or with FPP, service, our denominators cash and more This margin agreements traditional flows, Energy long-term to or purchase services, power fee as and rental also a steady is segment installation continuing high DSS Service cash improve predictable Factory among subscription includes to Protection The our contracts

Energy wide on produce Capstone’s range high backbone microturbine Capstone based of efficiency our it’s all with the core of Conversion or on is thermal and and forms is can multiple operate ECT. technology CHP, was products electricity in Next a CCHP, These familiar built This Technologies on you’re fuels. that which generating energy.

key products other secured have that to we our addition, In offerings.

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expect I through out every will want I -- not the of catalysts, of run will to line, of the run set I I points. I some highlights will the Green Energy. but As touch Capstone on key some business through

or that a decade, the multifold see with our And also big know, solution to from XX According expand this program. forward. solution XX. X.X beginning just big better Turbine is for you are one represented one Research, the our upcoming XXXX. supplying us Navigant we means a a Capstone the growth. talk all to parts the market of in Corporation well. market growth A next or just we leverage can opportunity is without and We our the gigawatts a transformation XXXX us strategy grow component microgrid now rental all, of can in capacity the is to all backdrop. to difference of important it critical microgrid, the Capstone to TAM just and most total about industry Energy reaching microgrid, gigawatts industry going as EaaS product over from significant and expected of Instead provide to that comprehensive long-term available creates strong larger by a factors We total slide this Green microturbine encompass First can same not mentioning gives EaaS in a

can This by developing and offerings. improving perception of sell Furthermore, soup focused sheet our and about the our risk, some balance expected we plan. by acquisitions. the a is of target growth. talk already is began sales to there customers to to team fleet our more doubles growth, balance leverage also build growth cash we’re slide on transformation. our we business own our expanding and larger facilitate When to we also sheets strong growth have capital microturbine we address graduating I critical focus We exclusively need to all more of our meaningful, survival capital Make solid partnerships efforts resource we which today no With we a in is today implications organic on rental solutions. the we logo numerous installations leads microgrids. more revenue from customers level high this whether shown and poised Capstone or Last orders. sheet, opportunities flow mistake, basis, through reduces year revenue to expanded who executing on Big global triples of larger are a backed on and access opportunities. margins, help which and and the big internal announced stronger this, quarterly topline about and customers A are orders. want sales is team drive growth. we scale into continuing need This by to this direct service clients lead existing leverage revenue sample hit and is National dedicating in XX. it’s of to for capital, To which balance topline are cash, solution that business centerpiece our based executive strategic customer’s to are -- on to our are a are move market acquisition.

Moving our set slide before, and we update we’re our shareholders factors key we’ve seen of doing. but this what XX, slide XX. mention out give and to growth On six we to an want

customer focused direct new is adoption. large products, the First started on pre-COVID. I mentioned team and rentals sales which They’re we microgrid

quality a rates simply reliability, expense, issue dramatically. leading This parts, most repeat contract But put, Second we had simply the happy who building producing that customers our remains better dropping an customers. is service improve to before, quality about warranty job parts is new providing margins. lower amazing has supplier maintaining part higher done importantly, failure

hydrogen and goal, here will product and hydrogen. goal who quarter. XXX% the least new is website and is per new are is East. which strategy. and and more focused focused Eastern Sixth national Fifth Fourth to operating customers shots for pricing per campaigns distributors. program, at with key X economy our solutions, our released distributors IndyCar New Key megawatt X of marketing run Middle target unique means our and markets our which or greater Africa deploy on in developed customized is in Third, Account This digital a a expanding geographies These branding through our the is is in on and The accounts. megawatts programs. we can on new this Gold detail We a updates, through large particularly year moment. marketing we better microgrid more adding area, prime a need Europe fire hydrogen new services and

to hallmark to and and address. a of has source to is hydrogen so big I product on XX. always hydrogen Fuel strategy. flexibility lines we sustainable fuel next Capstone move the slide moment business a and our on want Let’s spend need been

Our first is Hydrogen the new released XX% recently commercially XX% line leveraging and Solution business can hydrogen-based combined safely heat natural available run microturbine, gas. and which on power hydrogen

of gas with solution XX for to target XXX% hydrogen, Importantly, our looking continue develop obviously intend patents Slide around to to Hughes out by possible. XX% our we and a more now hydrogen advance product XX% leads sets to as develop March patents XXX% XXXX. commercial we roadmap some XX, have hydrogen work we’ll we our to natural I also quickly a hydrogen along Baker way. as will have of be the and

call the up maximize from or Energy be Lastly, and into our on can ourselves about analyst Operator, have and should significant understand Capstone begins to we’re for senior controllers, From people today, part of coming corporate to partnerships overall includes right that culture, a I’d this position strategy ventures businesses. The geography, both slide bit dedicating as the to how a This rentals, a additions to be growth. the from and begins leverage our We others. among XX, microgrid to in are executive community. growth joint will market, expected process level at to high and we Everything announced the looking technology, how having years. I oversee open fit with that the Green Energy I look significant the hydrogen, see a by in to Service want strategic said, we’ll to opportunities. sector as development. framework or need strategic talk building like transactions. target we the these transactions to continue Acquisitions, actively a there, microgrid time, calls assist

[Operator Brown Instructions] And your Markets. from from we line Rob, you. Thank live. is have question a Rob Street Lake coming Capital

afternoon. Hi. Good

Hi, rob.

Hi.

on up your areas sense early that expanding of what to pulling core it Just your and in doing hydrogen? or what on make some strategy, work into in kind you you’re add think that verticals you’re the of that people. know I of to terms But to hiring hydrogen technology are

a gas growth seeing see an renewable Well, we hydrogen. blended then XXX% and lot already natural we’re definitely hydrogen hydrogen, is both for of area interest and

we if the that hydrogen well strategic from as think sense. generate look standpoint, I to as a utilize ability hydrogen, make

So technologies just the ago, momentum in companies mean, This Japan hydrogen take in we’re something it area and the hydrogen, real but new how hydrogen, a we’re really to months lot I is would XX be that and a the of probably in at. we’re new an seeing we’d a that opportunities. up probably think see But U.S., definitely, about have something Australia. at We is to actually picked surprised look started I not Europe. new seeing has last a developments, fast opportunities dedication year

lots seeing or solutions that product customers us And So very hydrogen very, customers hydrogen talking lots of blended of for governments in ability actually we’re gas natural the future. the and our today interested in to to about are convert hydrogen, even in put to we hydrogen.

environment? of how or you. Have the should you how Thank rental is And then sort rental demand improved changed? a on that it we Yeah. seen normalization environment demand the business, characterize

been up rental nicely. picking demand Yeah. is The

fleet the I weeks, a the size fleet up about we few opportunities. of megawatts. We’ll we’re in target megawatts, megawatts here update of through the the XX.X end XX next at to get currently Obviously, think pending as of we’re XX size quarter. with

customer the and online. sign say oil in biggest reason is and to oil rentals base. and would is contracts. stabilization I contracts the prices and coming think gas that back Shell of the gas We has I prices negotiate oil for continue helped. in our But oil increase

applications and opportunities. We’re definitely seeing CHP some

opportunities, some as a well lot grow of houses as seeing Bitcoin We’re opportunities.

year. opportunities, definitely end by robust our pipeline to of kind the get we we’ll So but XX-megawatt of think diverse a the usually of goal

clarify last And that the that of questions Okay. on what covers, you repair maybe on and and accrual? that clarification is? reliability just some -- scope the then just Could what what that

Yeah.

was complete diligence, scope we move we the process, we larger the when thought. through due legal got, saw of parts defective finally the that than the As we

we were that And thought through so we mostly that issue.

that point very Coincidentally, are with accrual them. still put place they’re and of the field, the need accrual similar. the ahead some majority in we’ll replace remaining the we and units, amount got from to all in take recovery went we the fail to will care So the vast assumption vendor the that, at

million the process. So the is recovered about million through we and legal accrual roughly in $X.X $X settlement

call one failure ago, year days. rates down every the news day, the it, XX last, one were what months ago, So per good is a to XX we’re

a we critical We do issue with a pandemic and Having that challenging, forward. company I issue margin work Green are no in more pandemic, customers, very the Capstone through three ours more we’ll the can of is more that we’re seeing going And that’ll say, really defective and of like what lead better the Energy issue excited so technology next, both the rates, really parts get have to old field. middle a happy the so would the see and repeat the customers. probably, quarters, parts should December, in to the end part by of to

turn I’ll you. Thank over. Okay. it

Rob. Thanks,

Okay.

question coming Wainwright. live. next your Your line from Amit from H. is C. Amit, Dayal is

Hey, Amit.

Thank you. Hi, guys. Thank questions. taking you my for

of to into is you feel Darren, enough, so can pandemic do that a So, come strong COVID XXXX environment you looking now this position get sort post growth? out fiscal of as the pipeline year-over-year to and timeline, you the

Yeah. No.

in us for different COVID the company. hybrid sales out put energy, -- we I be watershed the products, building the the storage rental new with that out, think products, battery of new by team fleet going direct next is the year the a to rebranding coming solutions year the place, this of

of kind cylinders, to use on hitting we’ve a think phrase. all I not

distributors in we Europe America struggling, us, still Latin is some COVID it. about issues excited get are a our problem very still. in still for We’re

a bask. think a week still recently. is shutdown Australia I India, for big

And But so I we tunnel. light some through at end there’s we’re the COVID the in of think not here U.S. the see still issues and can the

So really our I us and blockbuster of get going back for half year. be QX okay. I going to think, fiscal QX think we and rolling QX the be But and will QX to are in

Understood.

branding, of a with sales the sort new helping maybe of et the Has customers are sort team been cetera. pipeline pursuing? And you that the a bit more get or visibility, build

Yeah. $XXX we’ve And million pipeline of of I got more kind non than know of Capstone technologies. core

Hughes, over grow So, traditional battery billion the got next solution hybrid Baker and the over exponentially storage that our products, quarters. pipeline with several of there will $X distributors. We’ve out

So how get learn sell direct as able the apply and new the opportunities. on airplanes, force is products now and we as the to to sales

the to in you’re And able up. your my storage, solar, total of the revenue microgrid, more selling I prepared see -- just as goes a we are lot battery per the being I sell controls, think remarks, microturbine said instead to in opportunity. going project the a

turnkey provide wrap is very, to customer solution gas. unique. thing customers a FPP, the for anti-natural And in lot Plan Protection ability our Factory Your very a able XX-year to are a whole of to be

technology. conversation about a us of technologies, the come all educate So our to some of talking hydrogen, have each customers them able with really comprehensive more other in storage, talking battery and different helps solutions, on pluses and about be to about with minuses talking other

program rack, solutions. more off much custom-tailored the a can sales it of solution in so that more a program, very of much very So, custom

Our balance for sheet first key is the time.

the I viability. had in six talk last our about a to I haven’t think to sheet balance months, customer

activities for I the cell that they’re as continue a million grow So are of of more. $XX operations year or $XX generating companies The to burning the dilution from is quarter-by-quarter putting at basis that sheet, to from milestone there. out look some great balance we our us. for million fuel operating a cash on cash

to unique well. both as a business growth So we’re and I we cash generate think in generate have position model will that a topline can

coming make fintech space. unique that the I will think in

margins with is of of of already And you you us? to this much after levels? implemented month some sense. coming more respect improve have to that how is or into from Makes play room the something efforts sort And think, margins, those current for there Darren, these is still do

right lots We any are so product margin our No. side. just quarter, more because the got are margins given now low. to on The room zero close volumes

see pick product the as margin increase. our So we’ll again, volumes back up

and this impacted working our direct right mess our vendors vendors, has on Obviously, We’re COVID our from material maximizing costs. hard pricing now. or year our logistics,

supply has last XX over months challenging been COVID. So the chain the of

will So costs. have in supply our I chain think we improvements

will parts. doesn’t see of our out margins as then we rates our it purchasing the fails, more in give us have take improve system, business, single in we issues of will topline revenue, will which the takes on We improvements just the out because And as other the parts side power. get with service bad the part the part, it out damage collateral

you’re quarter and the will grow. forward for each to going our product service margins to our next see couple start And so years in margins as going improvements well of

improvements know we that have. margin think definitely, you as fleet I rental so the business business, both And of with margin the is highest expansion the

So a fleet, that’s as the of rental going impact. nice we the to have size double

So, plenty of room side. the to go margin on

you. have, I’ll all Darren. I offline. take Understood. other my That’s questions Thank

Thank you, Amit.

And Instructions] Shawn, [Operator have live. we a you’re Tower Research. from coming Shawn from Water question Severson

Hi, Shawn.

rebound oil the out question include, been of oil. $XX.X you Hey, I mentioned product exiting mean Thanks. terms is of what in quarter there. recently recently only how the been that and all coming much the bookings the is million, activities in and only in up about quarter gross up. at My picking

something it to that first look trying forward or was that’s quarter? part in So, to of understand, to if the

No.

the quarter, in the see leading if first Oil gas will to companies started move we I we think should more in fourth that quickly. see quarter. and edge the

and And continue you’ll be should QX think in see shape. Things QX. probably I bookings in and So they’re by really good we QX, in gas more way oil the continuing.

be I Infrastructure the people helpful to greenhouse think the Paris looking energy reduction, Accord solutions, green for will Climate energy solutions, are obviously, Biden Plan, think alternative the and gas us. more I

we’ve going So the bookings I and right But keep We in hope of the a QX. to growth half the quarters. But that’s back excited our that especially all direction. four last really heading QX the I’m again, think seen year. in

I I think us. new new revenue all could of start getting half that sources the year, the of we’ve and as we of some back done exciting things implementations be for the these of from really so as contributing inputs the to said,

terms company. best And as are margin the expand doesn’t components that’s look you? something different to is to storage, for supply services at into acquisition sense regarding, you my of as the candidates, actually all driving question and just to technologies reading microgrids. buy when right, could mean, you you expand, it Where in look microgrid part I a solutions that something next that at a in make of

tie So your trying strategy and new to addition the that to obviously acquisition back there?

Yeah.

I all microturbines XX,XXX microgrid. put world. of those are a Most think of over in first step is, the form some we’ve

the and our new force distributors base. existing apply first try our to So step customer for to to our direct go, is products sales

storage battery add CHP we a to battery doesn’t storage installation today. that can so And have

them storage do say, Now than like already, I’d of our more but not. do half sites many of have battery

step So I one. kind think that’s of

interesting perspective. definitely battery from an think is I storage M&A

interesting is improvements some some There controls. and there. microgrid technologies on can controller the we side do out think I

wise opportunity swap hydrogen-based that technologies engine-based is would important. us. the be business we wise. there right could for out for think to we acquisition that there an look hydrogen rentals, But us. around sense solutions existing something rental I I in their could mean, growing traditional our of service look area could is it we at. If an at a then, And makes service the If be rental something take an interesting company

And think so, a got balance got a field we’ve now. We’ve pretty sheet here. I wide-open

are businesses last we’ve we’re got the we’ve going and think, shows and really that focused just of top look commitment executives I right we for solely to go on generating one thing do. did cash the this, our our Foster, putting shown that in Jeff year, to

make us an more lot there. more to or just needs be needs want But It It it. sake don’t to doing a there’s make us partnership to we the Now, competitive. think to for It out I profitable. acquisition accretive. of do needs strategic

green now But think up the -- market those bit are company perspective. cap things cyclical. are of priced that energy a little stuff, a right from Some wise I

we’ll So right for time the the and opportunity. look right

proposition you’ve can the then laid value has well, I business. the of us is the there the oil proposition. but sectors hospitals and groundwork you so the well speak question guess aren’t this, so on the complexes the and gas why the industry. rental quite value because commercial same, Why adopting remind And more business? or industrial spear done not of -- or in has universities that done have tip still or rental spear in Next why been the is maybe Obviously And other environments? to you

Yeah.

quite I they are is where in, one generators. if will think they kind compressors use of, rental gas the used have rentals renting frequently. utility, they equipment, oil and to whether They don’t they or machines bring it’s

process renting the in -- generators there to is where So and matter already it’s I penetrating they’re the of just think business the in market. of or one

heavy be some I lower ESG quicker. oil seen their opportunity. more they’ve of folks lowering in looking footprint some carbon greener happened gas the big impacts with for drive think the emissions and recently to rental based the is what’s going the them towards majors and you’ve of and had and to for And push

to that’s for good a think going be I us. focus So

look at of you If the industrial applications. some

chiller a with. If you in do application CHP to you’ve that rental got you’ve deal the got

renting chiller buying the some term potentially So rental. in longer cases, at looking a we’re and

the We rental which rental I absorption here. out, into XX-year do to quoted a it with think probably have in work applications, make at looking We rental, are put rental we’ve to we’ll for industrial hospitality we We’ve seven-year you’re and work to a the the a some order including chillers. to quoting do XX-year but equipment some may make customer. got

house are definitely oil industry the I gas several to than into. grow we’ve one think think little complicated more I a come. do rented cannabis those will machines rental is So your and industry traditional They rental.

the China currency. I demand. then as as is changes digital do on going far several with they growing the quickly quickly outpaced more. with energy in own local think their and we’ll very They’re And one grid Bitcoin

utilities in over so are U.S. lot that’s the a We’re a creating move to farmers trouble Bitcoin It’s of and energy the -- demand. meeting. seeing

could be us. that also So an opportunity for

you of providing and Energy? you or them as that. agreement Service, sent I Energy delineate right, to to I’m tipping by rental a working mean equipment a get customer business get potential between to sell that basically as an point there just just trying like a a understand offtake with is hurdle renting or

No. Yeah.

it. of I offer think all we

so just customer’s is. think what And on it depends the appetite I

energy. where rental. We do a of can solution buyout can kind of the like pay can hybrid a them we seven. we a hour. year So can year then PPA. kind power We option at financing upfront, and sell offer We like a do do an do five charge seven-year by activation can We they --

own think part that’s balance Are kind renting for can their of a customer’s So they Are part Are solutions, the it’s scale in to is, size talking for it goal a and money we We project, end want be long-term really partner. we’re a and And or they’re one all we’re not to tailored or our less allows customer DHL make dedicated because I just and overall tailor ability important we us got reducing want is they energy trying going a lot to And to energy one So really energy one Do go resiliency? to now custom whether their needs. the having I the Marriott. it, facility? going what expanding again, solutions How carbon think end-users. we reduction be an needs? do, large solution needs? do so on what -- to find versus their savings be we our a project, rollout the And have of of going sheet relationship. but a to a complicated long-term more to the they to at of facility. if day, we’ve fits the we’re a customers. is Magna, they versus to

back Right. Thanks. in the step I’ll queue.

Shawn. Okay,

We have turn Darren for like to floor remarks. closing to questions Jamison the in further I’d no queue. back

Rob and questions. great Amit, Shawn,

summary. on on good a I’ll considering my overall, the situation. business. COVID the issue. the wanted We’ve touched the fact great just lot to the things we’ve We’ve business. than built Considering quarter, improved in say, of built a -- about parts longer on especially we talk I business. had we the issue year, anticipated reliability You We changed

If than a Positive revenue. had it obviously, revenue, $X.X know for of year ago. was it’s Both quarter. you million better operations everybody short-term look $XX.X from have I’m cash basis at million old versus quarters fashion. ago. year now a COVID, $XX.X a the I loves Again, million

revenue bank, I to think the you to take cash bank. not and profit the

every will to hopefully start from cash little cash investors credit a think us generating for opposed in other like folks operations the of some more I burning positive as giving our quarter space.

$XX.X million had balance we’ve sheet is time. the I think long in a largest long,

Goldman high adding love think I generating his and considering was be But or renegotiating work And and is seen bookings. at as XX-megawatt during for right? Refinancing company’s to the year, and almost our quarters quarter to a folks of much full loss but half the add good and a Sachs are to to the cash of positive very outcome, X% big a going flat at $XX million. is that’s lower the activity We in For Revenue is revenue a fourth we’ve $XX.X and turnkey Baker great a the XX-megawatt quotation Goldman That’s and slightly XX% a year. top-shelf these exciting. able a disappointing. and rates flat significant year-over-year to year-over-year great. million job to again again, offer down million Hughes Product year-over-year I Eric up. pandemic X-megawatt in pretty Hughes Last $XX.X of is versus million team to project Baker is these the companies with. three revenue gentlemens a to mean have exciting COVID big be environment. solution $X.X turbine hope are The outcome. did very, for what is and caliber better great be Sachs topline headwinds, actually would energy that challenging year, lot with increased projects. bookings very nothing machines, arrangement the

products, hybrid We in into that these microturbine battery technologies. of selling of New we’ll couple get next storage started some of and calls. more the

that competitive people We from We tip standpoint. detail products will more. a our space Polar and want at our technologies. don’t are like These similar in hand Power have folks some right completely to other little going

much before too a So give little we playing field along we’ll what information out doing. about we’re get further the

with we’re for to to them shop. solutions, want there make very, their We’re to we’re able doing We reduction, green for them the customers, one-stop on resiliency carbon for to and supplier work energy, project very a we’re working really for we’re and long-term years for that not excited custom a be that give next that energy relationship be sure XX years. there XX

of our after much the next Capstone you. for customers. with Energy first year. Very cleaner all energy forward the Green Very very and everybody creating talk quarter. future about And to happy So, to that, Thank looking for excited smarter we’ll year. with

This today’s call. gentlemen. does and conclude ladies conference you, Thank

and your may day. at time wonderful this You disconnect lines for participation. phone Thank have your a you