Charge Enterprises (CRGEQ) 15 Mar 232022 Q4 Earnings call transcript

Good day, everyone, and welcome to the Charge Enterprises Fourth Quarter and Full Year 2022 Financial Results Webcast. I am Matthew, and I'll be your operator for today's webcast. Today's webcast is being broadcast over the internet and also recorded for playback purposes. After the speaker's remarks, there will be a previously solicited question-and-answer session.

For opening remarks and introductions, I would like to turn today's call over to Vice President Investor Relations with Charge Enterprises, Christine Cannella. Ms. ahead, go Please Cannella.

webcast. Good Relations I'm to with and financial fourth Matthew. President Charge Cannella, of quarter results XXXX year Investor Charge full morning, you, Christine everyone. Vice Enterprises Thank Enterprises. Welcome

of You will find our presentation press release of the section at today's a investor along on website slide with our copy www.charge.enterprises.

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our and fiscal to Thank and conference for and you inaugural beyond. We're help Christine, recently strategy completed to welcome Charges vision earnings call. of year our our and XXXX excited you, accomplishments the share understand

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to X. moving Slide Now

operate, clients electric maintain their is for design, install, vehicles our high-speed easy and to electric. it infrastructure aim to and for customers make We Our broadband. go

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years Our experience Ford, space leadership team in Electrify boasts like and over of automotive GM, companies XXX from collective the America, Volvo.

EV Our the and enable are evolving developing and them insights of to deep infrastructure team valuable need also infrastructure the the charging and experience our dealership We're help they of our monitor services into future. the help give the in software a knowledge gives we their install. that build to even priorities us maintain and us thrive for auto designed understanding ecosystem. us will businesses to needs, solutions This

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EV fleet Depot, electric we EV real a to solution for towards commercial the and operators. estate called shift large acquired support Depot vehicles future

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new its will This Depot expand create to stations. and grow operations. for EV gas opportunities of

to infrastructure wireless and ANS BW providing services. well providing commercial Services. broadband as They complete in Now specialize acquired our Electrical as electrical recently infrastructure, business, and

everything maintenance. and design monitoring Our planning ongoing and services and cover from to installation, construction,

a experienced workforce chip skilled top blue providing and highly quality customers. to have We services

has companies Tier a in personnel. to segment, and to team company provide just with million has working from a listed This XXX and longstanding gone including over deep, years, It automotive company. has X Detroit based public nearly including extensive world. a Enterprises in OTC experience, of transitioned leadership three Charge with traded telecommunication several revenue XXX to relationships telecommunication In NASDAQ also our dynamics members, and providers. capital biggest team an company services In favorable the to we backbone strengths, the some business with telecommunication experienced

Enterprises. believe in to accomplished great our things XXXX, XXXX. experience, proposition and strategy sets Charge and is positioning, value this execute We in So growth up on us

Now, I'd to our go turn to over performance. webcast like to over financial Leah today's

through are gross walk financial and including and consolidated is and adjusted financial which a will to Thank a segment exciting on our Andrew, everyone. results, today. EBITDA you you, our morning, you profit, to basis. revenue, key speaking I good It be measures,

of As operations, therefore our including results. focus our of results, greater for proforma acquisitions all day I provides and comparability my will of the a comments the period, as which of reminder, first respective results on includes

is a minutes I'd our growth of its a earnings Let's charts and how slide revenue profit infrastructure to our gross which revenues. higher charge on have These contributes our and revenue nature our call, carries the margins, eight, trend. depict proportion captures significant this quarters like first of Since to basis. profit gross mix few opportunity, revenue five as take begin quarterly and the and profit discuss our over past changed growing business gross

high-speed and contracting, businesses. parking contains Our our EV broadband, infrastructure electrical charging, segment fleet

infrastructure XX can include Our revenues recognize ways. are electrical XX few within installation a tower Typical up the networks, few complete completion to in From vehicle derived over revenue model. electric projects, charging life from We percentage the projects months. services. building weeks to wireless of project commercial XG in a which a and under range solutions,

late In offering within wireless broadband a we maintenance business. and our network launched monitoring XXXX,

building solutions when type we relationships. XXXX, monitor million to longer-term fix able remotely, X.X natural and next in beyond During offering We dispatch recurring already step or the were issues, equipment to It even our customers revenues. was installation needed. maintenance approximately in digitally can recognize these

telecommunications generate strong data, messages, at routing generated have help and of within from necessary EV business segment infrastructure business. company foundation albeit charging monthly via some are provided launch rental lower process voice, revenue and build we our parking SMS text fleet us fuel EV Finally, a the our to margins, Depot. our Revenues public

with XX% in of are contributions the to providing fourth contributed for quarter at of both over an from and our five results was infrastructure to and revenues increasing profit Looking total our while It XX%. segment revenue average infrastructure average goal trend, approximately XX% first, and average profits time. of XX% to XX% gross we see margin quarter on pleased gross on our

million around quarter the Asia. volume of Telecommunication fourth quarter as grew XXXX cause and the of East with volume or XXX can that especially increase, quarter and and events revenues vary different major Middle from partners XX% globe. macro well voice proforma as on the Periods over increase, unrest telecommunications events mix Fourth year in XX% XXXX. Within to Africa year. and trends call can XX% infrastructure of grew grew to quarter depend revenue

from growth and relative proforma profit of partially Fourth million profit XXXX of higher from partner X.X segment, from gross offset infrastructure gross quarter fourth XXXX by XX% our the to telecommunications grew mix. quarter contribution sequentially, driven XX% lower due by and

XXXX, some bidding of While most faced processes. including those supply to and able the challenges we project management companies we mitigate impacts and labor in were through chain disruptions, inflation, tight shortages enhanced immune were not to that

with quarter labor degree from Fourth sequential benefited lessening inflationary, flattening revenue gross combined XXXX some and pressures. within profit growth into infrastructure

backlog This and has revenue nascent segments charging growth XX%. been infrastructure as at A&A by coming penetration, quarter second of infrastructure sequentially organic our infrastructure fourth driven their quarter the discuss will Proforma BW we starting with expanding well X, each Slide in within business and gain subsidiary, EV to at as market traction. quarter to the in our Turning revenues XX% and XXXX trends. growth grew

revenue particularly client full allowing the year project a compared result of win to growth projects. a within to was of full as and revenue hiring spend A&S over BW of XXXX XX% revenues growth. experienced us peak due of number rollout. XG bid managers BW’s to year record year new year and on XX% A&S's increased strong

in formed only second of in revenue XXXX. XXXX the growth poised XXXX, which momentum in for business, half infrastructure charge revenue and rapid Our gathered is

cell infrastructure see primarily minimal first subsidiary, the to this fourth sequential which its first the of winter are Therefore, seasonality quarterly to months and when experiences harshest. tower some to has lowest and performs would volumes been quarter A&S quarter, our pattern expect natural historically growth much continue. outdoors during work Our the from we tends from segment quarter its arises that

jobs. XXXX report of other remaining as As we segment XXXX, I backlogs. to and reported revenue, of as very full majority backlog revenue We represents backlog contracted for the than revenue projects, to within of well be healthy define with at year project contracts, million. entered XX purchase nine more in infrastructure already [indiscernible] legally we Throughout this mentioned, unstarted or XXXX, future Relative binding maintained customers. orders, as the projects months a as the portion infrastructure, signed and our based on is arrangements completed

revenue. future look measure our the average help While sole the and time on forward-looking not metric direct backlog is over at growth. assess We future or indicator of to backlog

the operating focus adjusted depreciation, EBITDA Let's the impact measure consistent side EBITDA, To XX. adjusted compensation, such to on true the non-cash stop is amortization. move and closest items of The traded story successfully discuss we as uplift to throughout as processes removes our NASDAQ way performance. systems, It began as laid of for as company. the market. and We invested foundation Charge paved reporting future. to XXXX SEC we We Enterprises, our a for with in the the and talent, publicly global

quarter four XXXX million EBITDA loss the prior to quarters. Fourth adjusted X of improved compared

I thinking about. While a of XXXX, we of XXXX, infrastructure this within just was seasonality when ahead favorable you the remind would during spoke the end first quarter to

Turning over to a to both XX% in slide XX, increased grew revenue year XXXX particularly growth driven performance to million, full segment, XX% segments, by proforma year-over-year. in at on which the our look basis, infrastructure just XXX

our a growth As revenue margin XXXX, primarily build expenses, growth grew record team we infrastructure XX and EV I within million to just technology, XXXX mentioned our and higher charging business. BW revenues record earlier, significant year-over-year. profit corporate XXXX XX% investments increase telecommunications in following a infrastructure in our specifically margin operating within both by of XX% ANS driven and processes higher XX% made while grew within year-over-year and to over delivered BW our projects segment in mix

This adjusted resulted from incurred acquisitions. We all X.X for intangibles to of full related an million EBITDA amortization established newly the in our also year. loss recent

as To an would summarize, year. characterize I XXXX investment

infrastructure We tailwind expect are growth XXXX. by we performance positioned and corporate to believe businesses. XX strong the a EV EBITDA We for in reductions charging improve profit infrastructure our With XXXX continued segment for space. in supporting infrastructure our growth and Andrew? XXXX, backlog driven expense adjusted well within strong million in

accomplished for team all I in Thank built thank and want you, we've to entire XXXX. Leah. our

and execution, on focused easy We momentum are about electric go in it our customers, very and ‘XX to results for driving entirely stakeholders. for excited our making our

Q&A. for ready Operator, are we

As solicited. previously a reminder, questions today's were

The of James. is from Molchanov Raymond Pavel questions first with set

EV revenue Is how from this charging high What company's comes the time? segment infrastructure space? become percentage over can target percentage a of the for there currently

but business think out let how with We don't break businesses by about segment, for revenues infrastructure you our share the context. within me we

year. BW as Our businesses business our it the EV We're infrastructure EV just a growth investing charging and to charging contributor and business in larger XXXX end it we experienced grows. be at revenues over revenue started in time of this infrastructure A&S record XXXX, well-established began and expect whereas our

of as in see in pace mandates growth With and charging we dealerships for EV having entire the OEM tailwinds our EV potential tremendous beyond. space, in the this adoption XXXX infrastructure business

obvious Other than examples the other good US California what EV and regard in of traction to of parts are the the Northeast, you and charging? seeing

business California, we press retail in Xth Texas, already states shared automotive infrastructure EV Michigan. span XX is charging charge representing as locations, As and servicing our dealership Colorado, Florida, could you release, January Arizona, more The our XX states. across imagine, include heavier infrastructure brands, which than

much market broadly, the curve enter more is more Europe's Looking is? given European how advanced adoption there EV interest to

when, timeframe put won't a looking We around Europe. but at definitely we're Yes.

EV using for charging? in a Beyond organic bolster presence m an and growth, appetite the to is there

we is Yes. pass to If strategic evaluating plan future, the continue the opportunities. of indication any

Dayal will Wainwright. by H.C. Next be submitted Amit with questions

charging think at grow faster pace, cadence investors quarterly revenues about should going business the forward? expected the of how to With

infrastructure revenues will over record remind we while everyone up so our against revenue experienced would In grow continue BW, we're growth tough A&S segment, in grow, XXXX. within and we some XXXX expect in to that I

tempered a mature fast we business anticipate it's a BW to with EV and rate businesses. revenues we overall charging infrastructure expect of rate growth quarter growth momentum expect infrastructure be our to at at fourth versus at faster the Therefore, early XXXX. we what CI our would grow of since and weighted days, infrastructure's Our in A&S gained be somewhat EV growth will blend business than XXXX, in in

proportion coming set you next the the should XX%. quarters some gross lower with XXXX, expectations costs in increase? margins these How over around for Can revenues operating infrastructure improve XXXX at around the EV few expect we been quarter have and XX% as margins of third of to

due a of our XX% margin within as the segment well Our vary businesses various much gross exit infrastructure rate to good will within we in around going future This the indicator is fairly forward. how as infrastructure opportunities The utilize subcontractors where percentage down, business. If ED could present as need we continue staff still with but our will a to we subcontractors. locations gross that's come to win. build themselves margin in project mix

of goals the and top-line balance margins. will We driving

As we integrate continue leverage future. We more and to aim to operating acquisitions. create our

Can you share a in few milestones key, near catalysts? term

governments the catalysts the and that subsidies are we're world of around already about. some are thinking Many incentives EVs. the here of Amid, encourage adoption offering to

admissions and promoting new transportation increase sustainable Additionally, for at expected EV. regulations to reducing demands are aimed the

These battery As EV technology technology. charging continues overall to advance, we can to expect to current EVs times, consumers see improvements performance. the life, some of of to more limitations in make overcome help the will advancements appealing and and

future. consumers lower increase production, accessible production significant expect near wide With more we EVs heavily EVs in investing consumers. major the range in in can see number the to and of EV automakers make a available to to help will a This of capacity increased cost

EVs, industry see growth a demand can environmental become we the consumers innovation drive encourage of expect more investment. benefits This and sustainable in transportation growing options. for of will EV the as Lastly, future aware to

of are next Dobson with questions The Chardan Capital from Brian set Markets.

strategy core coming capital What years, what places your two is most the and devote allocation are the attractive your resources? to for

our technology for question, focused along the work our more ANS spend has various for efficient, maintenance In Thanks our and use, systems Brian. XXXX, business, internal within for monitoring. making EV capital and charging capabilities with been [NOC]

developing business within our the in of monitoring process We are well. maintenance as CI and

support corporate and invested ready future ensure also growth. the people adding We we're including enhancing our in segment, right to systems to

need of reinvest resources We have to we they businesses EBITDA to our to continue to the grow. earn all will continue ensure

it view subsidiary, your fit PTGI strategy? long-term and how into does do How the you

was office, us focus profit the to but is. acquisition talent, capital our where provided reinvest that as in is subsidiary, and capital, stable leadership, an early PTGI business. working a is back the segment, spend which infrastructure It's on our shared we

municipalities? What is adoption among of the your view pace on

their out strategies time taking to to advantage. our municipalities The roll are

together we positioned sector there. be our dealerships, will company, grow their public market we we share, our when well are expertise, As our and secure the on gets act focused are as

most terms growth are regions in What and expansion? attractive of

North coming significantly are We in consumer our favorable demand strategy is expected States, broader by United for market years, increased reducing the the American grow within admissions. driven policies government in and the EVs and focused, part to at

some the home the is Europe Additionally, highly for to of EVs. regulations stringent most a in emission making it attractive world, market

adoption. So And market emerging EVs EVs. additionally, the is electric for their India an many and incentives production key ambitious offer to encourage adoption vehicles of European and adoption encourage subsidies for and a with targets the government of setting incentives to countries lastly,

Needham. The with next comes question from Pierce Chris

Can sense EV what Charge for landscape competitive the is And competitors? you these who of can competing give projects? charge on lean versus us to a better And win against?

in space against. with are players our educational dealers, we are this with glove fragmented auto There win We experience, with competing that many white relationship big our clients. approach and our our

will Tate to Maxim. questions Sullivan with now sent by We go

dealerships need can a Andrew, why describe of charging car large amount infrastructure? you EV

to from and In service dealerships. levels sell EV need cars tremendous the pivot mandating ICE investment of and the they Switching ready OEMs customers. are order for for is to timelines. charged up EVs, a and

choice, publicly requirements, X.X reach of inventory and a announced million dealership to here For have to highest help at Ford example, them. receive Ford and their Dealerships compete. could build so spend no level other we're has their

lots cycled need often do be through EVs How Chargers? the dealership to and

technology few will that lot be better but as as of experiencing equipment available, history every It's generations to so we new yet, want becomes replaced early, dealers of and systems come to have years, need we don't are a upgrade. will out,

have of new. fairly equipment we Again, chargers. on we're wanting have who to in upgrade s already seen stages, so site is the level this, now of this fast early two most example As an DC dealers some

your Do customers the to any public? open general stations to EV of dealership charging plan

with can't OEM Today, EV going We time as our we what forward. dealership are in the speak charging see partners behalf to plans of mandates stations acquired. on meaning focus, their their their a

compared Can employees many full-time you today CRGE how electricians year a ago? talk about to

is continually of it certain our The we the of these have We still market XXX we're have network, channels, we as staff access tight, labor segments. infrastructure team end but a hire union and opportunistically ‘XX, in XXX are Through Well, down. subcontractor which within members, areas. properly. us slowed have to were to hasn't labor able growing

Our Fratt Global from Partners. set Poe with of are last Alliance questions

be the will the Will any from Alltel that approximately revenue of this indicates alliance potential agreement is turnkey XX with average $XX,XXX year. How shared a standpoint? area, electrical of they economic U.S. to with or March CapEx auto also work Energy OpEx and Does Page an is benefit auto presentation and will average need vehicle X cover EVSE. Alltel and company's equipment? XX,XXX specific Energy $XXX,XXX our cover the or dealers agreement dealers. supply geographic other will only from partners charge the fully the

benefit Octa revenue is our an that however, to arrangement, equipment. auto yet in we similar the the EV a manufacturing economics variety sale The management, exclusive to offer vehicle cutting-edge sector where dealers This diagnostic of our maintenance. projects earn arrangement to turnkey years’ of experience with charging project reputable of this solution hardware. other hardware to EV an company [SE] provide another many off allows and us be design, a over would XX the wide any has from install, very of directly the not their and will is engineering,

is costs, along March The and engineering charge Charge economics joys the There do to on hardware installation does industry ongoing not consulting in not SEs customers repair. does include and no educating, to referenced from our refer with or will behalf and with exclusive the the presentation page average CapEx geographic future and XX on our dealers. is to restriction. works of auto EV segment and agreement OpEx many and designing, maintenance The but so. Xst continue

Conference potential agreement and of install to the at the electric What Methodist of recommend is evaluate, Washington Churches. XXX Baltimore revenue vehicle the United solutions

capability many how are of church install, depending specific, so they goals site are, each jobs what wish member chargers itself. These to location the and on the

currently Methodist for of are communities planning most Baltimore the with that We underserved stages Conference in support the in and adoption Washington the locations are their larger to efforts the Churches support the scale for at successful EV future. United rollout

these per four and X, dealership With location expect that two can location. to than facing we to potentially typical said, chargers projects XX.X-kilowatt smaller include public be level our

on How March potential? the states will charging. EV And and the partnership Is strong? Who of SE? EV with solar where will help cross supply the any work? Xst what is the Lumio page And Do highlighted revenue dealers XX strategy that presentation? sell Lumio is company's

solution working efficient. for partnership working an charging solar potential the home problem from provide We need the select solutions are an came Lumio Lumio SEs jointly and partnership. extremely home seamless for and to a are will a EV charging home to sells partnership solution We're People hardware essence, best to charging. provide And remain This as a installation, yes, the installations. will the EV, interest. have heard client make excited EV dealer a clearly answer solutions. about loudly with but In experience potential when our this the agnostic, our that the we dealers. We on should home for with software

our rolling our out we have Lumio states the in dealers. has the strongest where scalability where begin We footprint, will partnerships and with largest

this remarks. portion question-and-answer today's webcast gentlemen, I'll back for and this Andrew of the to Ladies today's time, webcast. concludes closing turn At Fox

trust Thank participating opportunity conveyed have we of ahead the excitement Have on great for lies operator. I us. call. day, passion of the today's a you that

results full Ladies Charge financial fourth quarter webcast. XXXX year great gentlemen, day. and that you We wish and conclude will a Goodbye. Enterprise