Capstone Green Energy (CGRNQ) 12 Aug 222023 Q1 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 First Quarter Fiscal Year 2022 ended on June 30, 2022. 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. of President Vice Ayers, Technology. Don is Sir, the floor yours.

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

ended Capstone XXXX earnings Chief the Commission On XX, Energy's Officer. Robinson, report June Today, call with with Energy today Securities first filed Financial Darren the for issued its Green its XX-Q me Interim Chief Exchange President and its Officer; Executive Jamison, and quarter Capstone and release fiscal Scott and XXXX. are Green quarterly

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

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

you XXXX afternoon, Thank ending June everyone. you, for XXXX. fiscal quarter Thank XX, results of our for first today Good joining Don. review

highlights would I or EBITDA today's followed like call. our start X. on the Slide EaaS will to turn then Energy-as-a-Service, I by agenda of financial business. through positive to you our If and run review quarter's overview this an plan, with

inflation and some I'd chain had contract the the contracted in more jump way our general revenue conclude QX Energy-as-a-Service give a To like of quarter progress. from been first above from million expectations. the and Revenues results then megawatts, March XXXX in We And XXXX supply very XX, quarter. XXX perspective, growth same than our our has X. with were happy strategy, of the as a analyst fiscal in I'm of are and company $XX.X also up under extremely results a million, X of take last we July with then to environment, seeing we're look which our have our for continued megawatts period detailed It success nearly at we for highlight our $XX.X the XX% includes days. XX% we last and review XX the to demand year. Q&A financial and in with where XX% but pleased QX XXXX, for will from review community. Slide tough very in

achievable as this and and flow. strategy as profitable implemented. near-term reaching generates the Energy-as-a-Service growth year. business increase a of new XXXX, is targets. cash numbers price for proving themselves. well show everybody, our X% goal to XXXX business QX predictable were Margins QX fiscal we very strategy our megawatts compared out XX this remind paramount EaaS by May by to Our profitability remains we XX% very in The a Energy-as-a-Service driven our the believe end for the is and it for business, To is Energy-as-a-Service fiscal

in in relatively remained compared Most million $XX.X on QX. QX adjusted with shipments dropped was a XX, a X.X% $X.X and March $X.X to million and progress to lower year to million great The XXXX bookings quarter. QX to importantly, backlog backlog XXXX, product book-to-bill is slight fiscal million in the for product X.X adjusted an $XX.X EBITDA and QX. loss on our XXXX. in due QX $XX.X ratio of from of product stable, June slightly in $XX.X of loss decrease EBITDA in QX XX, gross from million million, in was $XXX,XXX Our ago compared positive showed QX adjusted EBITDA an This

P&L showing it shows the a for EBITDA quarter. X, positive just reconciliation Slide to our turn high-level Let's

Let's Slide great and EBITDA in year want turn key and XXXX strategy, we plan. We've fiscal three have to this success our to four four address showing strides to to outlined proud adjusted I go X. achieved are pillars X, those I'm the say pillars Slide fourth. and of positive in

spread in million are The and strategy. distribution from We restructuring $X.X for to did heavy we full active and our into our we operating This the of which total channel a around business this the first the fiscal was year. executive across employee personnel labor reduce forecasting our board by did by force. assets cuts million the was part quarter EaaS to $X.X in management moving of expenses,

May a increases. inflation, product. increase we to X% implemented We price and new is on price the in keep needed with pillar to in the doing range pace on X XX%, product so, of depending second The

and supply CPI manufacturers today. increased existing X% FPP increased focus to also also contracts FPP spare which new by integrity by X%, pricing and on US inflation pricing chain many contracts for on parts increased like the We offset factors

a and X% pillar, training, distributor increased for from we charge global to our acquisition the distributors shows. X% is annually fee DSS branding, third fee annually, marketing, customer we which The trade

more us from nearly XX, year. growth Lastly a numbers XXXX is The progress to megawatts adjusted contract target megawatts achieve in megawatts will to significant EaaS we successfully is March the in have X XX growth change EBITDA under the contract XX representing positive days today, include business get XXX XXXX goals, shows under full our the to our The on XX% components and expect overall at in year. to the our lead more the show strategy X XX. for Again, Slide mix. the March to that XXX% last last

I EBITDA waterfall year. chart and sets full think a to have fiscal very clearly for the our our plan goals adjusted quantifiable the specific shows positive we reach goal

goal walks last to an with I this Move provide us negative to on So want EBITDA from of and to this the year adjusted full XX. slide for XX you EBITDA adjusted positive Slide our year's EaaS update. year.

for middle and bars, long-term Capstone the of XX set heavily EaaS of long-term similar fit how our is product model versus cash Caterpillar very of service and first case shows graph income low in our traditional Cummins the or Slide sales on and model, first powerful levels. sales offering what EAS move doing flow. mix. business traditional margin lower for third on was shows is and to bar to left things sales. FPP, for see our a direct way the our importantly, product economics can which favor The do traditional sale The [indiscernible] most shows is which Siemens, traditional engine-based the You In Capstone and that which technologies. the can it look the the like predictable But and

a important excuse we already touched a We've revenue EaaS. This with supply that us margin or build a XX for note spare we working primarily Scott Scott? and units, rental units return product goal to generate Slide limitations working the we same generate now not chain this period, our XX need X some ways To lose fleet hand standpoint, our and compares new CFO. in but relief EaaS, been achieve over to the for on Robinson, and is picture. customers the extent will X to model It's has year. more products XX% sale business we the parts constraints margin. of can -- traditional of demand a the impactful orders. $X capital chain from success so the from years, this the significantly improvements not off capital we is to to which the strong, find but I CXXXX to $X.X is margin with can in supply me, that our to million for at our Interim For call required shipping megawatts illustrates and to re-rentals million deliver some years XX% optimal

the now quarter first Thanks in 'XX. Darren, for afternoon, of everyone. our and financial I fiscal good results detail more will review

to Slide XX. Moving

the Net million EBITDA adjusted quarter fiscal XX% revenue million, Parts, $X.X primarily up Total fiscal QX, compared the compared and in cost the the to million You fourth was can compared long-term $X.X contracts savings by $XX.X price the first for to from in increases margin million which percentage of the positive QX for in the $X.X as quarter includes rentals $X.X million fiscal implemented rental business to fee loss negative operating million, QX $X.X fourth accessory $X to was the due in of of of from loss an of in see decreased million quarter fiscal XX% had compared quarter service was a subscription rental fourth quarter results May 'XX. of 'XX. 'XX, to revenue. to to 'XX Financial our up quarter expenses of Products $XX.X from was in million $X.X the $X.X in a a quarter $X.X X% fourth revenue fourth in from XX. up benefiting measures. was 'XX, quarter 'XX, generated revenues $X.X results higher of 'XX. increase the 'XX. million fiscal implemented fiscal of distributor million Gross in margins due FPP $X.X revenue million 'XX previous and million 'XX. XX% rental service primarily of in support million and EBITDA from net Adjusted and QX

XX% fiscal in of the accessory is activity, the first rental first in the 'XX Turning X revenue XX, million, business. to the for of million months by $XX.X up ’XX. will XX% sales of higher to period, compared compared million, year financial fiscal had prior driven first year Slide $X.X which and from results in the the 'XX. up and particularly quarter $XX.X was to This fiscal revenue quarter see million you of $X.X product the Product

by loss the $X.X in in ago the decreased million was prior ended $X.X to to million from margins million cost $X.X May XXXX, business, in net period. rental XXXX of due forgiveness price reduction $X.X of parts, to EBITDA was higher XX% fiscal COVID-related PPP months XX, and year While of percentage prior compared in 'XX. $X.X on as negative the compared year to At first million was favorably XX%, margin was Net from loss a reduction $X.X million million rental benefiting for XX% service again revenue Gross and ago the up impacted activities. operating was loss XX% due generated or year June adjusted in period. XX, lower debt XXXX million by three year period, the positive $X.X $X.X $X.X expenses the from our in period. million, a the the expenses the months increases loan. to cost Total June million of net Adjusted EBITDA of X primarily up of the introduced revenue plan. from

Turning to slide XX.

receivable at improved a $X.X Accounts You of million and you, to other offset over depreciation, parts a decrease $XX.X use program. to million due driven our cash decrease June in by at million sheet support primarily items. warranty XX, flow accounts to working was decreased the Cash $X.X million to balances cash collection loss and expenses, non-cash the payable. which XXXX, activity. levels will from by amortization XX, select our million of balance XXXX. in by The increased acquisition cash had turn net quarter, to was changes partially reflecting cash and from compared Darren. I will Inventory $X.X capital back previous March driven it was see $X.X spare a

Great. Thanks, Scott.

few overall how working update, like quarterly strategy to goals. our our of of part and minutes take to As achieve our remind a investors I'd profitability to we're

Let's to slide XX sets turn out goals. that those

proven We've in We have have the right business. microturbine solutions. technology and the EaaS we right solution in the our that,

at be we selling However, more it. effective must

effort expanding how sales direct and leveraging our sales we -- and address force we network. can then are our distributor me Let

desired maximize efficiencies quarters our anticipate Our to our more direct continues sales the and partner reach of we force rental new and the direct mature, sales couple to and as growth we until our network products continue the adjust force, sales direct desired to a sale EaaS grow force output.

Now of COVID-XX impact is the fading.

been our our drive we've continue global our fast to pushing provide in solutions our rental We and need to very are continue service key offerings market helping the products and range business. with energy reduction to business our for remanufacturing today, standpoint, sales meet carbon UK increase and and program success, also our than into the growth, on microgrid lower our We means need a energy diversify higher customers customers. EaaS but not escalating a to new abroad a parts carry to Growth and regarding Increasing operate and parts a supply our we this FPP how and our key products valuation additional are this continue look at key and and business. can This customers typically and megawatts, margins industry-leading our are The attachment the can our of solver integrating parts only talked to multiple goal need aftermarket to working our about, grow efficiency, resiliency, a We're key with balance we them ways contract to growth business. drive to margins helping this rate goals of is problem for flexible to manufactured We it's them of service key we our environmental the of distributors additional limited by price key and to We challenging business new dynamic as our highly only process remanufacturing satisfaction XX% on to energy of our helping a to solutions. flexible is part. solutions be remanufacture parts in EaaS available XX to and US in orders. for wide repeat profitability, do so. clean be with is resources transformation and we motivated availability and to capital in to and environment. their chain sheet focused will facility. but more have near-term expanding we It parts how growth continuing the much customer drive is to and it's we parts custom because ensure make hard

inventory is capital key. Focusing on managing turns working

receivables. to quarter in million Our have but DSO dropped days, $XX we the still in XXX over past due

product our us customer well stated annual to efforts, for business. System marketing affords the and look we of DSO drive business free we X%, increased As distribution Distributor would Distributor for Reducing Support as the acquisition back growth. management for EAS we earlier, COVID and reduce environment, which fee rental to days Growing traditional have tight customer sheet X% grow come look efforts from XX from business approximately Support levels as or we to of to program which I our up our System pre-COVID out our days. XX DSO DSS balance back cash inventory higher-margin as more both to branding, money marketing, to acquisition

let's CHP of turn want solutions EV gas the markets Slide remind our each put shows markets are I top but highlight slide several we on next operate in potential I as this through traditional renewable to markets. won't oil XX or used want energy, slide in. and and growth investors markets our I Now industries and efficiency detail, applications. our across in as microgrids, charging and energy that go I to our how to growth in being XX.

government are recently. policy tailwinds them Infrastructure continue the and solutions. bill, electrification previous should on have of should impact but elements toward changes energy charging, for providing critical grow Jobs several noteworthy these move this our applications world, our renewables, tie key together low-carbon EV summarizes Capstone. as tailwinds industry the on push Investment touches by positive XX a power to from of we US several be driving our more our Slide all been and There business the Act to As for slide. markets bolstered the this Microgrids, you supply

to Moving XX. on slide

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hydrogen, our commercial natural At year, we the XX% of We XX% blend offerings end the space. this of continue hydrogen a announced develop to gas new in March system. microturbine

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provide a and Our to solve our partners needs we strategic is solution what our our best-in-breed to believe energy have focus picked complete we customers, for for customers.

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today's oil some Capstone and the gas prices. great oil with presents opportunities for energy on, and Moving sector

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we believe put proprietary have to use great us to properties position flare in to excellent have solution turbines this succeed. or a In gas conclusion, enable our unique an for customers. ourselves Our I

short-term balance we EaaS strategy gives the flourish see we without need in our Our long-term and tools and sheet and broadening in ensure carbon to is from. product the Growth low economy. opportunities a offerings of that challenges the the to have benefits strongest Energy-as-a-Service us we not leverage must we

business. technology want this evolved microgrid comprehensive We building open get robust that, helping us questions our and to would I our I and shareholders our like analysts. history. vision Operator? point provider from for to to offering solutions EaaS very inflection in thank up With from our a company's major sharing a to have single to

Our gentlemen, question Brown from and Lake the is go for coming Ladies is open first Rob Capital. with Instructions] floor [Operator Street now questions. Please ahead.

thanks afternoon. momentum. my progress taking Good for nice question and and

Rob. Thanks,

In where next are the see sort number seeing demand? you've And strength announced coming that are do EaaS interest but I over seeing the of you where of the the you contracts, business, where of you a in know from most year? interest right now? sort

Yes. No. stronger with go up Definitely, as to I anticipated. re-rent we're had said, we we've to to seeing, strategy keep the And a than fact, demand demand. in

So, the the we're approval and really markets. through rental coming redeploy that and having go business assets to really different four gas or is us process. seeing as they're market market for capital without Traditional is wells oil looking for to back online I think online put

was another rental years years BlueCrest five-year first that three we rental. now rental our put a fact, on and In two just for ago, for

rental very about oil business gas market. the and excited So, and the

been or do, so hotel, our and spend. of and them. put of hope got And to more definitely, well more Playa sale energy-intensive hospitality up Mexico. very [ph] to two I'd market dollars capital are the fairly traditional the freshen one of very for pandemic we're new locations They've through The But -- they is green. doing hospitality. good XX in, key business lobby The we if the hotels first parts are do product. to us. market, amenities have last Caribbean rentals for as of our they a out do mostly want They're market for the new not C&I for Next verticals a lot as the for A very is and and is in not of has who of us. coming of say, rental market the Group cannabis lot many

not associated on but rentals. Bitcoin. for our to moving and normally a gas, operations. low-cost in operators that And seen so definitely looking that of low-cost business sales And generate new briskly, run big has mining last, to you'd been energy microturbines very for least, influx product fuel has flare, been Bitcoin Bitcoin their take We've both

we've where got from several so And associated the different stranded Pennsylvania, of Louisiana, we've parts Bitcoin got miners US gas.

great. those or you implemented contracts of, then are your at flow actions into get P&L, this on sort into fully point? lag Okay, kind fully do and Thank pricing to get you've have taken And you. or of those into, and the increases, down now, are

Yes.

most XX-day So, distributors we the -- of have our period. a grace contracts,

when new in whatever effect, plus days increase. take takes it for XX to So at a announced have we It is you old backlog the pricing.

at more So generating you're increases, the up of really of the but price rates contracts I'd benefit QX. of The but some revenue. are contracted see that more I that. But megawatts price the look of X. of you're seeing an say, QX, margin May And in we're business. between benefit seeing benefit at importantly, you those EaaS today, you'll QX, the was last QX of increase that growth effective in or the thing, Same running, if not think all year, XX and

as to revenue QX contracts those continue see you'll we then and QX put growth So contracts new additional and against in out implement there.

on the then is And there grow, margin mix? that Great. Okay. dependent of sustain they kind openness some range and levels still happens, this in as should or

think, our I XX% a Rob, couple margin target for as know, you So of now. years has been

XX% opposed lower to this XX%. margins. much to success closer are they're us. as great getting The re-rentals there is So And for is a

our own. and product once to mix between of lower units But see then are at with our little fleet, units get we those build new. are Capstone our the sheet margin our them our units both the think assets, we're In to a on going current and fact, put you're own to brand going cost a But goal our rental shifts, obviously, rates move or either around closer there, product. to And I owned margin re-rents of XX return the re-rent think in most our I to because is to rates bit. XX%, balance and megawatts as own those them get purchase want re-rented and

we've owned think our of if XX XXX% I of so a positive like million But Capstone was on megawatt And fleet had EBITDA that balance done different $X we modeling. we'll some year EBITDA. be a throwing off sheet,

to lucrative our working and sheet. very figure just our get capital got how there our We with business. on to with restrictions So, balance

Okay. turn Good. you. it Thank I’ll over.

questions. Rob. Good Thanks,

you. Thank

Our coming Please Joshi with question next Sameer ahead. is H.C. Wainwright. from go

Hey, Sameer.

the four Rob's to with XX-megawatt Nice the breakdown the see of what Scott. that so base, installed sectors Hey, Darren. But on question this. the contracted you speak? progress, the EaaS. is attracting existing or answered are know to especially Hey, industries XX-megawatt I

of similar it perspective. pretty rent I as hotels cannabis all machines. oil especially probably We from doing our to as in container solution megawatt most of stuff megawatt in one-to-one. with I've more through would say It's said. applications, machines. what to Most that's we're X we're unit is what Yes. and doing solutions is seem XX, seems and machines, put Pennsylvania. our big-box XX-foot to mostly a gas, be the gone megawatt megawatt heavily megawatt well at tend megawatt they because solutions. well or the and of Bitcoin I've And The mining a Bitcoin to equipment be units XXXs looked as

as the markets XX more still somewhat is and at Bitcoin gets So of split biggest see but -- now, are right pie. it the gas of natural and oil that is the megawatts a bigger, small fluctuates I we'll fleet think probably

coming just in our C&I is goal, well I COVID out a we of of are of I want they'll frankly, hospitality which market verticals think steam the and customers our half fog, as pick kind like of the markets portfolio here year. investors, kind and But up think diversified geographies. back the of still and the as

XX% into the we the the start our and go megawatts, today, XX starting that's So is of other of beyond in when fleet world. moving plan, sign US, outside the to US, up we of part but especially we'll are growth parts

for Understood. Thanks that.

your of two is get to much that that that can possible XX In is, you you're how this or And that on question is install? have of extending and to Question it be converted terms then visibility one backlog in targeting backlog some contracts? rental is of megawatts the rental pipeline, part do can of the potential pipeline. you

I'm trouble is. up not in don't backlog, any to lose and lose momentum. as want the service No, backlog convert think, to it I product Yeah. we’re customers looking keeping energy We to

haven't we So but it's very missed date yet, challenging. a delivery very,

even And from so we've competitors. through hoops re-rentals, re-rented we've with had jump

Now equipment. we are renting Capstone

equipment to cat machines, of distributors So our had on -- is. goal re-rented four hand. this where is we manage to had equipment who the the in who re-rent we margin have had CXXXX But really, born that's then our Texas, more and customers new from the idle we down is products build

contract about I I XX in close got got XXX pipeline. would XX And under got say, will megawatts think that XX the so in the next we've today. We've another over probably We've megawatts days. quoted

So or our orders getting not rental or orders orders orders. problem converting energy product service new is new to

required capital cash to intensive equipment, the meeting getting business. is demand, do the a It is problem it. Our

challenge. our that's So biggest

I we'll Now to DSO this continue that down. hopeful am see quarter, come our

$XX of a remarks, growth could have off balance As sheet about significantly funding go that if to I or additional my due past would megawatts. in severely due past of that that XX million our we long mentioned that way we AR pull prepared

X.X%. the fiscal end building focus. by collected, million had were So big that we instead And year. XX would want if the step to that that's megawatts $XX five big, I really build turns of the a the of of we be If AR inventory to

Understood.

Just rentals the CapEx Is going re-rentals bottleneck is one or versus question. it own last production dollars? for the one, related capacity, to

capacity, see got I as issue. We've more you I this is you quarter, mean, build rentals XX%, of more dollars we're as -- capital running XX% and can dollars. we think our our know, cash. at Capital use

So it's definitely us. a consumer cash for

years margin in and fashion. capital so depreciate And straight-line though XX% it build on and XX%, still are units. XX them IRRs XX%, sheet rates dollars them are to the the balance put takes over We even to the our

a but great business, it's it's business. capital So intensive a

referring cash to of or to And out fleet needing the generate We're to to. debt so balance just out figure grow was to to to sheet, get have the self continue the to get capital rental how from like until we our it point we enough markets can without I going where dollars.

Thanks answers it. all lot the a Got luck. Darren for and good

Thank you.

Water go coming Research. Tower Please from Severson next with Shawn ahead. question Our is

Shawn. Hey

And Is in two-part you seems to recent or what specific there. afternoon, Thank a you. in talked the sales distributors, months? just are But that, but the the inflection like want action understand would had a then some direct trying to you force. point that from it specific you've point know cite -- -- an items I'm in want Good pretty address things to everyone. things, the something what the sales Obviously, I Trying to specific effort? there of Darren, there you secondarily take EaaS. about hit big what you an the question here. over surge. brought there? that are you

we on No, been. Yeah. really as had started a Service Energy the as COVID I business, think this

force trying so meet And hire We sales to via business, together new us. we a new to is to a couldn't business in-person. which service put launch Zoom. that a we were direct for rental energy We had

were And new that in-person. of with met brand business we a in of middle new trying we global a so had force to pandemic the sales learn

more challenging business getting than we that was So going thought.

XX from I last XX March-to-March, As seen XXX% we another megawatts improvement you've to megawatts. or went The days, XX almost X dramatic from booked we said, improvement. as megawatts

are go The on right mean, business. place, people for people us, different in the with sell a rental vary. the depends set is getting like, what the price what energy have the and depending or the term somewhat years, turn Obviously, service rentals priced rental the the agreements which are is, client, installation of differently. are the vary so costs, the a one-year costs of logistic agreements we markets, length seven geography. just it customers, and on list. and think start-ups, business We to custom have I business how are really don't a their that look that I it. it's shipping economics costs, So markets We training costs,

is a just head catalog for And harder a so sale. around to get sales force that their that simply

distributors kind rental mixed adopted how the business. Our of they on were

very the rental we're be doing how or the Some of business our distributors in either quick didn't and to fast. value very up, struggle to to see it. that understand effective Others rentals in pick are

worked hard in distributors, we've our to rentals. all especially the on get so U.S. selling to up speed of And

additional way As XX% that's moving and I Congress. look one for at the today gets bill pending its the credit currently legislation, could our through that's have manufacturers. investment XX% that U.S. going If tax to to to increase passed, XX% an especially that's

more go So that's improvement ESG. federal significant that the in be to distributors could That's hire a customers our They on And payback real for some be ITC. that. with Xx a carbon for go, marketplace, make that really to customers. hammer us on reduce give Green going Solutions. our lower our Energy times hay we are to to going ways being salespeople advantage to and at need That's a to looking looking our are going their They're pushed footprint. already get

even make brakes, tax So process benefits that the that with and easier us. we'll additional sales government turbocharging for

bit. of and really folks lot back on lot of of I retrenched in a businesses our their get some it's and time there Well, And distributors of to a so kind I a now it were think horns work and kind during hire little pulled growth. COVID out think

to service more rental obviously, our grow And business. the And and We collections the grow both top than want our our well. DSS we so want business business line. grow our distributors' to grow as as

have it business, of because line. us. manufacturing to very of capacity, for sell a through distribution, we folks have don't grow is all we've good we and add dramatically because capability we the a scalable got lot And to very So such top

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years for of large-scale customers look couple last to could the rollouts. in is goal our that large-scale do absolutely, So,

as service the no definitely, business so, a And is energy different.

or campus to the if definitely looking their we're on time. with building that for multiple facilities, multiple And grow to opportunities, a adding So customers have that's loads over or they're them answer.

give that's part our right? another additional customers can't They've rentals, no, these with challenge we want as to of online we us. is, so some and And of our They've technology. bring really committed to they us say gone

be we new to make service so, loads. loads we or sure there on And as those they bring their need assets, grow to

So, going yes, key right, is forward. our Shawn. goal again, That absolutely you're

queue. the in back jump I’ll Thanks. Yes.

Shawn. Thanks, Okay.

Ladies gentlemen, today. and ends this the Q&A session for

Jamison back statement. Darren So closing hand to I it for his would like to

everybody Thank listening today. appreciate I questions. Great. you. Great

in years than best been positioned remarks, we the different had two companies able space. competitors and other company do ever is this which that past ever people quarters from industry better is all but backdrop believe frankly, and before, said can it in We've substantial quarters our year, very been in been. been considered cell change some we've are four a the row. this I've that XX to prepared I in As we've our of a it I here. never the my fuel The is positive the do EBITDA we've than

only and EBITDA a developed for not our that we've think, is business model I can returns positive, positive so, nice really generate cash And investors.

sheet working capital be an service energy business. to will and balance is Our the grow issue

to sell be we also lower out money that's at of want good to have add a as have and their good if a problem us. our our shouldn't figure have. to, also and and But additional cheaper energy get problem a for have returns can a but at service to you finding network business, get new getting one, with capital we distributors sales good business something rates. cost to good paid, margins, provider to push our grow capital And products continue we that's So Definitely, additional so smarter resources. to bills

call, they’re to me, to hear they've listening So going the but it if they're already heard again. from it

business. after Now and capabilities go sales expand time to is the more resources, their add more

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about that. very excited so And

difference. it but You the is can the world for ready make in in markets if the the really a technology world, doesn't not best have

started think the And build in now, green so I most right back we're just as better to from recovery getting back look and governments build COVID.

and the their fertile we're to employees much think shareholders customers thing. more have going a than to the to carbon the and Directors Plus of in and efficient reduce are landscape I energy past. see be footprint we same want their looking Board their

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world, at that We are searching good solve expedite got The we've dedicated parts, find manufacturing suffering to our very keep is a is. news everything hitting the suppliers, same requirements. team global part here second, doing shortages, Capstone creatively is or fourth can they manufacturer way every the third talented,

sign definitely challenging. done keep like next So off I'll an us to quarter. and business to But talented growing forward delivery news team the it's is allow for we Thank job really that, With to you. go and to. keep the amazing ahead to good that's customer everybody dates today, a talking have wanted hitting we and year-over-year look

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

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