Capstone Green Energy (CGRNQ) 11 Feb 222022 Q3 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 Third Quarter Fiscal Year 2022 ended on December 31, 2021. All lines have been placed in a listen-only mode, 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, Mr. Counsel. Corporate Petersen, Colby is floor yours. the Sir,

much. Thank for and you afternoon today's you fiscal very joining call. XXXX thank conference Good third quarter

XX, the quarter and Executive and its today Energy's On Capstone the Green XXXX. Chief me Securities Jamison, its Today, ended quarterly with Green earnings fiscal XX-Q issued Capstone with release Financial is Officer. for President its and XXXX Exchange Officer; Darren Chief December Commission Energy third Eric filed Hencken, and call report

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

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

XXXX. thank fiscal afternoon Thank results ending everyone you, today XX, quarter third and December XXXX review of you our joining Good for Colby. for

to fiscal our turn X, then remind of to quarter. our update you on through If progress everyone third and goals an Slide XXXX our wanted I give

driving initiatives Our strategic reaching growth and are built profitability. around

As have of reoccurring revenue you we our the that rental Energy-as-a-Service, increasing know, as growth highlighted particular, or flow on into part high our cash strategy. our goals also focused EaaS contribution In margins. of and better because been we improving of translates its here margins, predictability cash flow. Achieving our our have

fiscal Our goals include XXXX the following.

is service upcoming here First been our reinforce doing offerings. an broadening what and on products diverse we've energy I'll slide.

that top-line team, the PV which Solar And quarter. energy Second is I'm revenue. solution technologies generation growing happy solutions storage our battery and on is non-microturbine to orders direct our for both sales focused for new first announce we energy during received

that business. discussed because Sales see solar Solutions growing storage. show our offerings to product pipeline newer a our of quarter, energy Direct As Direct Solutions we invest growth last for team microturbine and team, Sales long-term The like rentals driver green driven are products, battery in and we continuing as to traditional continues

of end contributor to to We repeat drive our escalating March was the grew quarter, the reach was of we where to satisfaction our parts our to megawatts use We by megawatt is we'll availability be customer and reoccurring on XXXX a significant and margins announced rental and contract second fiscal expected orders. order presentation. XX.X revenue January, the announced the year in at X slide cryptocurrency up two our in to increasing goal In of high a megawatts discuss quarter. XXXX. contract from largest with our date aftermarket the third this This megawatts later fleet rental Fourth a is the to fully EBITDA expanding goal end XX that is we and is to Third expect slightly megawatts. XX customer minor. expectations XX, XX.X fleet which long-term during today our ahead margin

XXXX, up that quarter to had XX, we a the set defect. of parts suppliers ended a one reserve by March X.X spare our During million of affected replace

completed reduced during this expected warranty continue drive we expense was quarter the on third lowered program rates powerheads, see to failure and has orders. and repeat successfully As which should our significantly

management is of quarter, due controls primarily in over on working cash payables. accounts and managing very Next inventory third receivable increase generated working turns. the by focusing an collections capital capital In and to maintaining we from tight inventory

period, the for third challenging the slower supply the pandemic and due quarter. extremely than to specifically primarily also environment. parts from in had are partially in our resulting cycles to working to related year-to-date the COVID-XX ensure product heavier has our manufacture the we ramping build we Collections capital encouraged been cash can by somewhat inventory, due extended up have in in expected fleet and cash COVID-XX than to we activities For expected impacts, to distributors continue chain with distributors been also operating and used this it collections but from rental

towards the Now customers' transformed toward doubt as provide is why the solutions. There world can we to Capstone Green slide into let's Energy highlights needs that greener to decarbonization And Slide and we address moving turn these world that's greener the solutions now is no of Corporation. moves X. types end This energy solutions.

the solution microgrid run or that grid. provide standalone complete to connected can we First, can

a addition our solar a DC for addressable can voltaic This we we Storage complete our technology Capstone's to solutions. microgrid partnership traditional these RAIS focused of DC In and microturbine, solar or modular with microturbine tailored with solutions for Combining and great we're low custom using increase products another battery In network in off-grid commercial partnerships microgrid TAM. are on to to of our example partners. or industrial strategic voltage CNI supply total Energy kits create market, is January, leveraging Solutions the Capstone how with our announced and partnership Global new offering and storage solution. now

on offer natural gas the commercially to We gas expect offerings XX% continue blend based develop XX% natural to run hydrogen, microturbine microturbine XX% commercial to hydrogen, Currently XXXX. XX, in by We March our systems still system XX% hydrogen space. blend. can our

to previously we want we we'll and the As products, XXX% spend solutions. comes meet to of in it as hydrogen the We market be fuel a not the offer money just where our on today, flexible the where needs stated, towards market be when to decarbonization development dictates. future but is intend

industrial and a or with and scale turbines up recovery solutions also XX the energy large power all money and or through WasteXES. multiple Baker systems waste micro that resiliency, their to custom Alfa heat solution turbine our with We to saving commercial combined our offer recycling way megawatt X customers or our whether or solutions providing security, it's food Hughes CXX, through Laval of help solutions efficiency megawatt megawatt heat management

important Now lines. growth goes products business to strategic opportunity our our our We This our to Green and Corporation Turbine X, Earth line strategic as with let's turn and now growing and end-use accelerate, recurring offerings our Energy. goal attention it key hand-in-hand portfolio transformed top Capstone from to XXXX, we expand view is meaningfully Slide customer and on of services because revenue. revenue expanded with Day Capstone four business each our

long-term to EaaS. financing, of spare is the parts, services, begin least more to DSS on on The our service these a not are a continuing are or steadier This all TPAs, or Service fees. transition margin and project flows, distributors built lines cash but predictable margin and with and service, and elements common installation base our rates, critical business revenue all Let's contracts as higher subscription leasing, recurring rental includes line last Energy FPP, them contracts, predictability, flow long-term higher cash of business.

produce was Generation CHP grid on and Capstone's gas They're and is both which Hughes products of CCHP from or all solution forms core and DC larger this includes efficiency, our EGT, Energy CHP can product range micro turbine These with. on line the and EGT or hydrogen. is foundation blended small energy. generating for a of micro turbine high applications. Technologies industrial based CCHP to fuels to thermal hybrid The biogas, on natural familiar Next our Baker We is wide electricity operate built multiple Capstone technology.

Solutions to line. Moving on the ESS or Energy Storage

energy that We'll into technologies, both be a multiple efficiencies, to storage, software solar using energy place and in and agreement monitoring provide that which customer modules needs. meets also lower in January, As combination entered essential for additions RAIS an are micro systems maximize to earlier energy and mentioned requirements with storage, Global resilient energy of agreements tailored we grid. custom and create specific emissions,

Fuel Next business Capstone. Products is line flexibility has been & Hydrogen or to Sustainable critical HXS. always

And fuel to need so address. big next we is hydrogen source the

run safely available, commercially leveraging and Our which new heat natural the can hydrogen turbine, hydrogen, second mix. the business recently gas solution XX% power is line combined said XX% micro hydrogen-based released on

most Now recent quarterly let's the turn our results. attention to

of go year. financial to quarter revenue was Let's quarter which over overview for here the X. to Slide we'll in $XX.X compared and our minute. Total provide quick revenue turn in a ahead Eric a third top essentially and a the give complete line on quarter highlights focus overview third financial let $XX.X just I'll last was million, flat and you million

was $X.X the partially that book-to-bill for gross orders the is overall COVID-XX XX.X the from to in delayed were during variant. slide the of we We last out XX.X X, but execute as I as things our long-term orders that the to that quarter. to second growth year down similar quarter, rental The still quarter. order, March to micro rental as The prior result against because to the solid And XXst, $XX.X some this the end up it are over had due fleets, we fleet product shows was X megawatts to company still ratio highlights year, Slide unusually quarter. quarter our of slide. Omicron expected And in this there revenue which increased turbine last December for new to growth updated megawatts turn plan Orders down If with here XX.X. trends. continues by order the quarter. X.X million showing the an quarters was increase in megawatts from in the XXXX. the on its four are fiscal we large up X.X:X without it of coming due said happy timing megawatts prior megawatt revenue, were million, micro two point current I'll quarter

quarter that of better been improving. has fiscal First sequentially each XXXX

was The flat third quarter year-over-year.

quarter. unusual mentioned, third there's an large X in the prior shipment However, megawatt year as

XX% Second, to of XX Eric our if call the you to financial now I'll up look showing still the of over same turn year. months our quarter. growth to results being details previous recent most compared for period, the are the strong at last discuss revenue, we the

third the for I'll of Darren. results quarter Thanks review our in more detail, fiscal now XXXX. financial

fiscal Slide up among down was year XX, of third fiscal to results which cuts XXXX. million the $XX.X the from to revenue. of lower Turning distributor where primarily and X% pay business in financial in Parts percentage and savings quarter X% Products from measures period, and we ago and revenue of a was quarter things. in XX%, million accessories being $XX.X revenue $X.X fiscal support the service of of compared long-term rental increase from COVID-XX travel to cost margin continuity to the in million to prior fee $X.X third due expenses $XX.X implemented Gross an XXXX, as in third overhead includes revenue in as rentals quarter the $XX.X such our million million fiscal restrictions our the subscription had down XX% for due the XXXX, FPP you'll was furloughs, primarily year, other XXXX. see service at million contracts, plan, due quarter revenue, which third

removed While the XXXX were during as of saving the maintained most September cost year. third measures cost were still of quarter savings XX, prior

And higher the see we quarter to million had fiscal million freight build direct from the Adjusted the year $X.X debt was by a expenses the million, million prior as fiscal the as net adjusted quarter for loss of fiscal $X our cost of the as solution the Again, Continuity we bad to increased $X.X year loss $X.X in XXXX. parts sales from million quarter negative a Plan the $X.X third in quarter. supply costs million Net component EBITDA started on continue $X.X Total from have costs. including $X.X of were XXXX. was $X.X of ago negative team. chain, in pressures recovery period. of third quarter we benefited Business compared to the operating million million reductions. Additionally, well to third of in Selling $X.X to XXXX million EBITDA COVID-XX expense compared

the the nine $XX.X up months had We’ll X% the Slide revenue December $XX.X which first compared at for as million to nine XXXX, the more Product months fiscal first $XX.X financial COVID-XX XXXX heavily XX. to XX, million ended in XXXX. up fiscal million, of was in and results prior Turning accessories delays. project see million, revenue by the nine $XX.X year XX% of months impacted was period from

our service first lower expenses to the Plan. fiscal in Business $XX.X $XX.X prior XX% Business XXXX. million million the to COVID-XX the period, down year and was COVID-XX increased period. expenses due X% ago revenue the costs in months percentage million of ago were in lower from from Total million in Continuity year parts year Plan. revenue operating XX%, While prior as $X.X of $XX.X due million, due to $XX.X to primarily Continuity our Gross year from Again, nine margin a was in the up

EBITDA million our of Additionally, the we the decrease year net our XXXX, settlement year. negative employment a The due $XX.X in partially XXXX. the the discussed. offset million higher The period. from loss prior loss debt extinguishment the year, compared to related the income prior million expense a $X.X million loan forgiveness and million, nine to million compared loss prior in the on in to $X.X primarily second $X.X by reductions related COVID-XX of by $X.X area was which period of Plan, in this a in in $X.X EBITDA million net had legal Continuity the prior December refinancing Business note fiscal expenses of just of from to XX, Adjusted of negative term ended adjusted benefited was was to increase the related offset $XX.X loss PPP months Net partially revenue. was for quarter

Turning to Slide XX.

rental product cash an a a management the The $X fleet. and and margin it the the changes, payable. to XX% both over see shows continue select impact which product margin We accounts a March of with to revenue. to that sale and from key fleet. a of used themselves at was XX% slide million by margin $X.X $X.X with Slide for of spare On approximately approximately illustrate cash million sale year. XXXX. generate was with we’ve an sale margin a generate product XX, in collections $XXX,XXX approximately percentage of by revenue the sales, quarter. generate we use can the of margin for both revenue, by goals been is million period loss, flow with and part $XXX,XXX five-year XXXX. contract as speak as We XX, approximately CXXXX can rental with The $XX.X $X driven wanted product will XX% with approximately to with building to sheet driven to number balance was revenue. of million growing FPP do The compared continued fleet a the million margin can the working Cash highlight contract as of approximately million for impact and a show with rental. million our a expect On of XX, FPP why rental Cash margin $X.X in CXXXX and increase a with revenue. which why CXXXX items. activities we megawatts, operating CXXXX September XX.X sale of generated our decreased in offset revenue CXXXX inventory an for parts of million Over $XX.X percentage here in percentage of capital accounts primarily our receivable And five-year partially Slide period, CXXXX This want to revenue cash net rental we strategic by to one a think spare $X.X XX,

our rental While a full fleet contracts of have the XX% we not revenue with a a rate. utilization we payments XX if shipments, last highlights XX commissioning, revenue We and we assume have quarter seen of megawatts sign where as a recognition, because This slide and scenario have of rental rental created to revenue. of with XX we an margins. months actual timing yet rental megawatt continued

have a expect months, by publicly XXXX. we our we is stated fiscal reminder, As XX be to year, megawatts end XX, of which two March at the in

scenario impact the with as fleet XX turn the to to higher our the At on megawatts chart you call see the than I’ll As illustrate back the if Darren. helped rate, significantly utilization last rental hope Darren? have we future months. at can XX% point, results. XX We expect is this this a

Thank you, Eric.

I focus Eric’s the as from business growth is a from see profitability model service is. and top think you line recurring presentation, energy increased can revenue our and revenue our where

Green about As Capstone we realize we levels of rates. how and and rates. the XX XX. parts margin to Energy, growth continue expect Slide to our growth summarizes transformation to business our Slide think Turn potential we higher their higher

The first business. lower image traditional expect distributor portions mature global of a juncture. this is And rate the at to business newer relatively our grow other at that our than highlights we

out and We driver to or rather to what And are our quickly, out energy business as we long-term we as as build flows. cash the expect targeting as sustained EaaS rental a expand positive service fleet. Eric a profitability pointed key

pandemic. expanded growth countries view new well rollouts the to product on large sales want U.S. most is high Direct as We as new the and back and as customer to Solutions our similar microgrid greener focused potential are Our Capstone offerings. team that after build having

manufacturing potential it and us and U.S. of in and view grow portfolio products services underutilized the strategic having UK. M&A both and here the growth, could high help leverage our in our our facilities we Lastly, as initiatives

just here. about not are We talking M&A

We’re to other partnerships, opportunities. and strategic joint open strategic ventures, related

Slide expect catalysts Slide out I’ll item highlight on Green XX to Capstone Turning points. key for Energy. sets not XX. of the business run to but the every want some line page, some I through

transform various can We we added the worldwide almost addressable when new our to in of significantly Energy to all, a First market discussed Capstone and any we have portfolio, grew essentially customer and Green or today. TAM. total products our today solution talk our

our to fastest very going rental solar to are but EBITDA. and discussed quarter their We in a stress earlier, business encouraged rental Direct and Solutions the for business that the the XX and the rentals quarter. projects, to detail of again, direct and orders importance the to those nature, received nice last most first by be a milestone are business the excited long-term we’re of I of fiscal and of in battery We want rental some see Giving team XXXX. path in the positive storage We because a has believe once huge high margins pipeline is megawatts generated consistent of this Capstone. Sales close growth.

our Lastly, strategic to one up questions executive but the wanted love team to we again prior Operator, our obviously, strictly of dedicated highlight senior I opportunities, analysts. members from we that, any to I’d on open let’s discussed take calls, have M&A. call. that our it With including

open the And first you. Ladies Thank question questions. Absolutely. is from [Operator coming Amit H.C. and floor Dayal the Wainwright. Instructions] from is gentlemen, for

live. Your line is

[indiscernible] Thank everyone. Darren. you. Darren, just afternoon, Good

undertook that as at the gross not terms but any is a may front over provide of lower front Is any can because cuts outlook that that what year-over-year time, going margins you there forward? understand were favorable comps bounce lower other and you or potential in sequentially improvements as I back the on the of here On be this cost driver keeping well. margin

it let There on Eric jump I’ll definitely. outlooks. when especially drivers some this Yes, comes question, to other

give some guidance. I – I’ll outlook, the Amit. are drivers an of we give over to second the and I will that a But quarter. Hi, decrease don’t won’t first speak making

mentioned. cost So first parts is on I the pressures

we and materially not offset costs year that but this that. also did some discounting did of Year-over-year, had in see we rise QX in QX QX. like So kind less we

product quarter you we additionally, on they percentage see, and margin prior given same So year. are from the then a part accessories on versus margin parts last with they contribution accessories And this also lower. is actually depending could and numerous mix, drive sell the and quarter which

then supply other So is pressures, mix, freight third first and cost costs. and chain really costs second, related

that seeing are challenges. definitely with chain Yes, I COVID guess I’d issues, supply we related add some Amit

on a are price on We increase service and our in May. product contracts instituting effective

quarter a though, This little abnormal was bit as said. Eric

rebound, a rentals. things should as but on increase next see we the normalize for choppy But things into margins So couple I’d fiscal ship be continue margin. should could and year, we think I quarter-over-quarter quarters get we as to expect a

margin, our fastest, Eric out, to profitability, recurring XX% direct most are As path pointed rentals revenue.

our line projects start sales and is focus as the force that two big we rollouts started number larger seeing drive to new lines to want one direct like we is and larger So of that get continue to Number and from focus. obviously top customers product see revenue last quarter. a additional

margin this So, think and little in on choppy to an bit a of of definitely quarters. very supply chain I couple the both real would caution challenging the it’s have freight because of a going which just been material the last little but are some challenges, costs I anomaly quarter, be bit

In distributor for mostly and pandemic level that. facing with in some sort you those issues press the surging receivable release, accounts at highlighted November, been of or and the been to you resolved Understood. might rentals was associated issues Thank again. business? Have those the were have December, they tied the you were

they not. no, Yes,

the doesn’t We The rental good haven’t for pay pick with unit, you can somebody the business. had any rental if issues it business, thing up. about present

initial pandemic the stopped. or of a pretty projects we’re is we in hits case. even that customers' What found So stalled good lot when

where ceased lot construction distributors units that a because had had the basically the effort a project of going to stuck our of so And were pandemic.

and payments hit were their progress came got better then them and Omicron they That flow getting so And the not cash again. and interrupted. was

think the continue will next improving. that improve. it's think So to couple something We that is quarters I

we're is over of that's work not the last that look the it's days down, mid-XX quarters, couple obviously still the want with think it in depending it's do pre-pandemic but again levels, we at or still where everybody which If but our the Obviously, headwinds. couple coming kind hard. I'm sensitive I over pass and creating this COVID. to be different quarters. on are we'll DSO. our even something dealing we'll been to start improve very summer is to back that cylinders. see But some really States, We you distributors' and it's United challenges in DSO you next But get world on hopeful this the hitting on all

XXX I guess for we roughly I'll DSO, QX December QX, brought around were quickly days to In and quarter. XXX the that add. down and we days

We expect to go again down QX. in that

Okay, that. okay. for Thank you Thank you.

because you me. now the opportunity you color can started little in about last and that looks improving you? pipeline? Baker partnership? is Has give right one now? probably these was storage periods, in from sort the pandemic Just And have the of bit related us for Can talk and like solar of and of Hughes what the pipeline the also prior book-to-bill Darren, what some that I on you one know that's including to just sort that drivers different compared issues. down a

talk to as something book-to-bill, is we tout quarters' Amit. no, revenue. to, an that normally think that I want definitely indicator of because I the future Yes,

that came January. or have January. COVID distributorship orders in in been projects those they at big because projects, the press in didn't of both big early in get I and couple got a And had think literally we released folks one quarter our This

quarter so, think, booking And X.X five about of million. first our the I through were the months

So we're quarter. to close last equal to

should an We a of nice most you have that of are to pending. new think I got So several like. last world year. quarter think, idea gives orders positive parts outlook I this looked Generally, what the seeing

adding said, new lines you total pipeline. our definitely increases product the As

but X.X million. direct our sales so, pipeline XXX million, to distributor up And is our billion, now pipeline is approximately XXX

very Hughes, for more pipeline going of Florence adding with strategic should got megawatt some putting we're about machines we're see Baker So and we're relationship. projects top-line that got contemplating but Hughes, definitely excited rental that X We're meetings in to in one that XX that our about canceled January pending. fleet. we Baker over LT-X, their growth. Unfortunately, to

a to that's relationship relationship continue grow win-win think there's Baker to definitely and forward going want a So we with Hughes. that

Thank have. you. all Thank That's you. you Understood. guys. I Thank

good a Thanks, afternoon. Amit. Have

[Operator next Brown question Lake Capital. Instructions] coming from Street is Rob from The

Your line is live.

afternoon. Good

Rob. Hi,

on line and how some is of and uptake product curve drivers seeing battery guess that Just demand the and I the line the you're solar of there orders? market product the

Yes, saw was other new [indiscernible] the storage storage first quarter only was RAIS panels. orders, two our one in the one we the was solar so the one photovoltaic our and battery One in and Caribbean. Global was battery and

obviously a pipeline, a generating we're new So of bit it's a business for us.

RAIS. got folks. KORE our train to now our application we're and We've And folks. got got so we've we've importantly to distributors done sales We've partners, having Batteries, Global more to NRI one our But to strategic which then find the engineers. with train

of doing in product that. in We're process we're all of so sheets. brochures, specification our our And process documentation, updating our of

storage think or then to multiple some battery markets in unique with solar is we solar storage obviously or opportunities up, microturbine a the a And place I a great a very, CNI other where will but products of to go is have excited also is we installation storage with think fit. lead way, base very place starting but and both. then that's general we customer So if we very curve can get XX,XXX battery existing customer to I add any some the got of very it's first we solar and of the will if about We ideas got with kind unique definitely a go see market, a especially But worldwide, for can in CHP are battery think little have markets market that along the some to that. with start. competitive see bit microturbine sell there shipped and microturbine interesting there so can a ways in and we think

great is but the beyond Okay, what's in that rental great, of goal, in that going thoughts on the and you're compared of business, made great review. on the sort the closing you've pipeline goal that and then kind how And progress to target?

megawatt is Yes, got We rental in over site, and Bitcoin site is should as using to XX Bitcoin a we the in associated Pittsburgh, biggest mining where in our least that date, quarter, quoted. said, we probably by operations. site which run at we've which to multiple out signed gas got there great. another megawatts summer the other maybe XX to at is they're miners which expand gas That got X two. megawatts the megawatts We've from oil

machines and voltages can Bitcoin and set running lot China. in frequencies. these coming a from miners And Our be over are of up different

that's that's Obviously, a can just gas cheap fit us. you that be energy. associated if good flaring, to way on and that create would cheap a you So run for great operation

in cannabis to down So expand rental Oil continues different hotel for there. be that's a a properties space which XX in market very are good and We're as the a Jamaica, who doing interest of exciting. to us. has We see lot well. gas looking got

rental good market. think in is opportunity a the I Caribbean general

as stuff done We're So just at and – we've starting Colombia, of Latin and in Middle looking an recently some East we've US. We Europe Maui. been got in well. so stuff plenty We're everything got order in to-date rentals. has down America

these as to we growing XXX we'll don't XX megawatts markets, take that as we international we at stop penetrate as continue megawatts. want to fleet want get think I keep rental business. well Obviously, the So to beyond well

of topic week, And got global meeting important so fleet. a we've that's probably the is funding and rental Board next that continued most

issues issues to And …. bit seeing, exposure expense of of And parts? the how your cost you Is costs coming kind that contract cost? is on back can to on new of guess in? you're on wanted price Or some freight get are negotiate just the the that a the of little what's takes that that sort Great. Okay. a – just freight quarters. where into sort clarity to I you I the couple

great Yes. It's question. a

seeing XX% in extra LTAs we're where on, some address. well, inventory with that little spare can, additional higher bit, most a up gone able our major to stock. substantially something bring got competition. most that's service create levels yes, think it gone times safety and going direction and between need contracts. on to sure We're is we then to putting X% us it's through. going So nickel, freight it of a to We're times alloys. it to look on we're the and everything in to were metal from protect stainless our right seeing across We're in so place increase but parts something metals X has I we standpoint. address now lead price work to up in all that's in And to vendors And bring commodity product copper. is cases May vendors, the we But wood. sheet a from which shift make more we're increase the we and seeing of our trying wrong leading types in have have obviously as place at X% steels, Virtually We've

And a so be going while. for here something it's that's to

of the nice are say, both growth have it you would it's up if keeps things that you just then costs as news and now, flowing little and margins. reasonable rental in XX% we the definitely, more develop issue our we availability can But increase making it his night margin, at rentals can figure a The definitely commodity a of manage and the got to next keep take additional be think rental sure and right and can manage price. quarters. couple bit fleet we what at Kirk I commodity, good is, parts pricing team big we've still of out, is at very unit

Thank it you. over. I Great. turn will Okay.

Thanks Great questions. Rob.

have right. no remarks. Instructions] [Operator Looks All we I'd Darren back to floor like questions closing turn further like for in queue. the Jamison to

summary, the what investors my talk importantly, Thank should Rob, We remarks. Amit covered most things you, most March a in guess to be just for question. kind the looking and I great quarter. you. Thank want of in closing operator. upcoming of about I

hydrogen announcement. new You for the be should looking XX%

should our megawatts rentals. to XX us be to get You for looking on

our You projects Solar see should hopefully battery getting storage awarded. and more PV of

and wins into some to some of organization hopefully our bigger hope You out direct bigger should sales see customers. wins

was If EBITDA how Capstone monitoring showed that I rentals, those thing would can high XX Eric with revenue to fast key can rentals, that you rentals. is was Slide rentals, and with think I'd number is, a margins. I how can be one my just get today you shareholder, how fast be deploy fast generate and positive you recurring

and there margins and with recurring me, And on solid enough. goal basis and EBITDA and get flow positive been a is has the attain fast so for Capstone getting that goal, years do our we to to positive can't it absolutely cash

our look to quarter, is after everybody fiscal everybody which staying March talking safe. So Thank and is you. year-end hope to forward the

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

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