iSun (ISUNQ) 17 May 222022 Q1 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the iSun, Inc. Q1 2022 Earnings Conference Call. At this time, all participants have been placed on a listen-only mode, and the floor will be open for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Tyler Barnes, Investor Relations at iSun. Sir, the floor is yours.

morning. good and you Thank

first Executive We platform are Sullivan, where for iSun's marketplace call iSun's quarter Chief and you first operating on our within an the deployment address opportunities illustrate to the will discuss how welcome of Chief Chairman value creates we questions. Peck, addresses overview and and of financial line your results completed the an XXXX XXXX. solar to the Officer, results performance. will financial Financial prepared provide quarter update shareholders. solar we conference recently Jeffrey both will pleased Officer, and remarks and to provide the John will of platform for After operating any today, open the

reminder, results. call of update during are and non-GAAP as reconciliations in Web expectations our management's which forward-looking date Jeff made that uncertainties future. found can management to CEO, call As actual risks With to earnings to These refer could should expectations. and for analyze or the I questions forward-looking Comments release, Peck. answers to disclosures future management's be statements are and these They the subject help statements turn that, site, over predictions. financial obligation a will on it the no include cause you of is under from now statements and results includes the to this that differ that will financial measures iSun's to

the community. our of are progress to solar adoption our I by excited to you share I'm always opportunity nation's accelerate encouraged be the mission we everyone. speaking investment morning, and and the with today. pleasure with towards Good iSun's shareholders energy. progress making to of a appreciate It's the all

entire our of We team solar and teams full engineering, our have quickly made focused diverse the building providing backgrounds. our our on capable will about excited embraced collaboration, how individual maintenance our of a confident storage, procurement, for market. installation, on execute monitoring, in culture from and remain mission. that suite value exceptional creating progress learn have services, shareholders and platform we development as to services, our a of We We're design long-term

We with continue to see the doubling exceptional over the our in period QX prior the of in growth revenue same year.

expect to of transition as the QX growth of Northeast. this into the continuing out We see seasonality we

customer happy quarter. demand XX.X new delivering of by Our million capable with to profitability created to backlog very an with in every strategic segment our of approximate servicing so We've plan continues customers platform the QX. I'm marketplace. totaling I'm progress growth demand of our also our with to the the of in in far. EBITDA of generated evidenced the breakeven pleased execution XXX.X accelerate, a return by overall million

Our services accelerating at segments. to comprehensive the across an residential, to is of need infrastructure commercial, utility EVs the suite for home opportunity customers support road. and on demand solar for provides The new and our consumers create for industrial the value

of this support and million $XX our to to positioned award is adapting States. transition. skills and to provide contract are commercial Our iSun EV to utilize with the recent our customers. customers these the expertise evident was industrial infrastructure United uniquely This serve divisions across

of and it We segment. are occurs accelerate solar as evolving meet each we prepared market, in energy are demand to a adoption the in and rapidly the

Equally December XX, tremendous division customer XXXX. orders in has residential important, increase in demand maintained with Our seen storage. increase a XX% from rate orders these XX% a attachment QX for in a

value and customer opportunities for This us and culture residential improve to change. as how creates illustrates existing service people-first In sales customers multiple service will to innovations addition, XX%. storage customer customers the increased our their provide needs

seen and demand drive have XXXX. digital expertise the existing a divisions in through The industrial backlog. and This increase marketing continue QX SunCommon XX, backlog profitable in teams marketing increase XX% acquired our from efficiency with the sales installation leveraged combined Our of growth. with commercial our grow December tools in an and be to to will will

divisions, will and retain the in development that retain of of Our utility expertise of and our of requiring we projects division utility and has commercial services that solar development an in execution the the division. and professional that installation have installation development provides we we services. services generate contracts project of XXX that Currently, megawatts assets led projects services will $X.XX million our megawatts XXX industrial in procurement for to will installation

We expect market. to us by This in see demand our multi-segment diversifying us to meet forward. economic from which as created going well evolving uncertainty services energy professional increase the stream positioned development in demand challenges global as for political revenue insulates impacting our the and strategy

are million. in insulated, XXX to our John? While cash XXXX are current committed John. company adjusting that, With we and we from dynamics. guidance XXXX. we And immune We returning the turn revenue are environment, industry to based positive mission flow over to in I'll our on profitability the not to remain things

Thank Jeff. you,

X.X driven period well million quarter same excited overview representing are our the a segments XX.X to our increase continued as turning provide Revenue consumer demand. the XXXX. the or provide growth trajectory I'll continued residential to sheet. reported by into of 'XX. first in an fulfillment over growth of our have XXX.X% of XXXX operations before details statement We iSun million, revenue QX balance of as was on

demand Consolidated million million compared quarter improvement margin compared in profit and margin quarter While to has the we was in Gross improved. X.X% business quarter new period existing the to backlog, QX. during first consecutive for our was XXXX. continue XXXX. XX% during against X.X XX.X the generated over to our same X.X the million which represents execute gross in also we added quarter first third margin the The new

and loss strengthening Consolidated began the our in of of X.X our XXXX. million capitalized margin period acquired loss of XXXX million over X.X in We continue. and XXXX. a significant to compared expected to a synergies assets segments, intangible to fixed that income grow the several same amortize As was is among we companies operating

breakeven of loss compared $X.XX the in X.XX million and period a over Our iSun QX per loss per per or the or to compared EBITDA to quarter of first XXXX. of same XXXX non-cash share approaching to depreciation $X.XX million X.X a million our $X.XX or expenses. in in was million quarter compared share share $X.X $X.X $X.XX reported X.X for X.X overall in loss million operating is XXXX with a expense the XXXX. net amortization million same of period share included loss the per or of a

our particularly are We installation these the by results, schedules encouraged the during seasonal QX. impact variability to of with

Our revenue during over months. three to million of anticipated generated five grew approximately residential and customer demand QX execution division with to million X.X XX.X

of Our QX XX generated revenue approximately million commercial execution grew XXX.X division over X.X to XX and months. industrial contracted to backlog and with during anticipated million

revenue development. Our and projects and megawatts approximately of has during under QX and XXX of scale X.X utility of projects XXX commercial industrial million division generated megawatts utility scale

will backlogs. the As transition respective be phase, the to they installation these to added projects

to sheet. the balance turning Now

sheet. We continue to strengthening balance on the focus

to an consistent Accounts increase to solar X.X liquidity sheet capital and long-term million line credit repayment capital as used at use million Riley December currently to over and full million of raise plans the debt to due our XXXX strategy, will foreseeable healthy on to residential that, ratios and we there an decrease to seen the our no Total during it X.X an equity conduct with in of as overall in support to to March the remains XXXX operating are the the our a with I capital future. revolving levels, demand. related XX, our customer Inventory X.X our While our B. to working well improvements working as quarter position. decreased X.X representing designed at collections improvements And Debt back support Xx markets debt expenses. the XXXX, with of of per receivable an a balance we've million Jeff. turn in note. assets from consists acquisition to support XX, year. strong, XX.X improvement million remain turnover approximate is Overall,

excited that months progress full have where we were our over made last to Thanks, six able the John. the deploy we about platform. I'm

today. the We on this have and the for market. We're our to adoption experience assembled a and And and I'll shareholders. for great accelerate value will energy operator to back dynamic the experience lines opportunities team time that execute within can capabilities who both your it the their utilize leverage turn to questions. combined over solar our of to Operator? open evolving Thanks excited drive for

question today Alliance Jeffrey, coming is the for Campbell gentlemen, Thank live. questions. Instructions]. open Jeffrey [Operator And line first is floor Global you. now your and from from Partners. your Ladies is

Thank you. Good morning.

Jeff. morning, Good

during John some mentioned on this installation first challenges detail provide 'XX. you quarter point? Could

is and Yes, The this to weather seasonality related the weather, getting degrees challenge bad roofs on and of zero during is the below weather snow. Northeast.

for revised the first cadence Okay. With revenue results? what's XXXX, the 'XX including expected your quarter guidance,

that? You're --? for Can looking you repeat

guidance million. million revenue that you some expect of the sense of what We cadence Sure. now the of trying of have to year? over XXX XXX be revised I'm rest the get to

to modification due the pushed utility into is Yes, in projects XXXX. guidance

recognize achieved have communicated And we we'd projects, thought at these QX late looked revenue we QX. and had so in we as that in NTP

revenue QX So the be there to expectations. change would

helpful. you. his the wondered quarter-over-quarter, this this remarks, Despite Thank margin I but expand could improved. on briefly a on gross bit? that's Okay, touched in you revenues in John drop XX% trend if

the skilled drive workforce And growth. organization, will profitable on combined continue of focused We're us of skill we availability margins. our sets Yes. think the to help

of power since it's to we've starting last And move we -- projects now. seen also the end ability we're forward, to to pricing provide see our pricing that on in year. starting some really As

little new of and I of annual backlog in million the Okay. to demand found drop And XX.X appreciate based a guidance expansion bit simultaneous here. little a on finally, the I'd confusing, million XX growth

Yes, absolutely.

Proceed or NTP. So we build based that on Notice LOI our that projects have to are under backlog

scale pipeline. exist our not so in And projects utility are currently do Those in the our backlog.

those year, And this year. projects, to in ability still NTP it this in year get backlog. ability on remains not to our our secure so those just as less confident revenue become this and in recognize the panels projects or to revenue We in recognize both pipeline, we our assess had

XX.X the I'm that confusing million what guess XX I hole finding it'd be backlog, in that. enough to appreciate for would have seem is we like addition if in million drop. I Okay. the the cover

that have to downward XXXX, we it why guidance? going a the million still is is is in revision and So this backlog XX.X stretch the in into

Yes, absolutely.

increase before months we XX XX of industrial recognize projects where that the revenue. to -- in project backlog is million of that bulk Some $XX that's we

Okay, that helps.

Okay. Thanks appreciate I it. much. very

Thanks, You're Jeff. welcome.

Capital ROTH from you. Thank Clare Partners. question next from And is coming the Justin

line your live. Justin, is

taking Hi. Good for morning. Thanks our questions.

morning, Good Justin.

So segment, here, the was guide were divisions first if other for to here, division ask about the due off on division, I because guidance. utility you I revenue expectations to the lowered we also update XXXX? or was there really scale provided any had the wanted guess wondering wondering, to each changes I an just could get for just expectations previously for there so only by

adjustment that the guidance Yes. NTP ability end of we specifically we information as panels that QX our by and anticipated. we've had in and was have the some QX not the to seen division back The by due to access of utility may the

is commence And construction? utility early there Commerce there's case that and point? current bit still or the get is of visibility expectation have the a uncertainty uncertainty? Like, is into scale And getting XXXX, when that will it. do still this what for fair got know for then Department panels project, into that I there at then you of ongoing. is panels what the Okay,

So I the guess what's your module supply? visibility on

we supply that our QX projects XXXX. into we're NTP. will these now Yes, is once officially right receive of module And move QX, seeing backlog

And timing these on utility achieve the from will there's so projects when NTP.

for -- got division. provided you margins Okay, gross And it. then in had previously by outlook XXXX

margin the Should other of there? essentially, same division. we say expect the for Just you're segments, you wondering remain those the utility change outside same scale any the if -- guidance that expect we the or should would reiterating expectations

Yes, guidance. no margin change on

Okay, talk you're geographically, demand think looks the great. just the accelerating And acceleration? what bit where here. to you just And be more driving I then about that was if is you most seeing on a maybe strength? backlog, wondering

Sure.

some Those seeing think adjusted. New the across have the I so market have demand happened side, as yet. board, in we're On utility more not really rates our residential the strong in York of Vermont already

the rates. Vermont as higher utility residential seen We've additional power market anticipate would there I we So strong be pricing forward, move as could in demand some coming from in well.

organizations us to as use additional our well. think demand help commercial ability I workforce Our between will drive

of side, come seen the we're a on of industrial we're and through work, and solar of and projects to a in the lot and projects design starting seeing And states the out development Southeast. future seeing lots services utility On of embracing red lot Maine. the

I supply module did And just to for question here. one back want more then -- great. Okay, to go

guess those on needed supply other what challenges? divisions? inventory have, about there divisions the divisions or are all other I -- have your the do -- well, Just module there to any that access is you Is for just if you could the panels for talk you for XXXX, the any

from QX the of Yes, QX that demand. amount increased inventory we meet have to to

we our that industrial line have, good had sight Most on with tax the already equity. and product the panels on purchased commercial they of residential for of in projects markets for side. orders purchase have We

anticipate And so projects. we those on don't any issues

I'll it that's you. Thank me. pass it on. for Okay,

Thanks, Justin.

And from line you. from coming Noel Brothers. Thank Noel, next Tuohy live. is question is the Parks your

Hi. Good morning.

Noel. morning, Good

I could just you wondering seen of maybe commercial was adopters, talk adopters early just talk of and you or between current sort if maybe about if what's on the any could differences and going you of wave sector, sort characterize the the both? in trends about

Yes.

the On demand. we're EV certainly infrastructure that drive seeing some side, the of commercial

to they're will of to with companies creating vehicle cost And renewable assess, certainly with operation the total of vehicles. be be and to solar transition, are around to they And vehicles. price conversations they future diesel, electric -- the it think costs. going as move beginning energy on this fleets. these for how look those oil now clean businesses, I that's their going having charge forward always their proof at make It's and

Sure. sort sales of segments a you it it is and EV Great, of with part is the the sales separate that's that's or sounds like commercial really so a EV marketing team like -- to sort infrastructure, infrastructure in say that helpful. And just or effort other safe task your sticking have? of

think be on sectors, one then to commercial that. place utility some will residential the we there and whether rollout stations. the infrastructure across take be support And EV all the the that of will

the So see of we different we really it that segments impacting each service.

curious Maine, there Okay, about uptick mentioned now? Thanks. coming the projects that you was I great. I had those any of you an are C&I and And seen in drivers in just also think whether particular timing

of There's been in projects through pipeline No. large been that a coming Maine utilities. have backlog the

have projects already some And of through come the that construction. we've been working on begin to

any large specific start So there, think but we through. think those flow that is to projects see I there we've been and working on, don't of drivers pipeline a Maine we'll in

you've And with last expectations other be with thinking as great. forth, would potential at panels, costs place you look with or forward panel you just to just the been to so relative talk up your have Okay, catch about maybe just seeing move you implementations, factors of little there you talking that to for about all if one anything me, are availability could that the be bottlenecks and your labor piece want bit to When the that? a about? any in

Yes.

through. multi-segment the think reasons of comes labor one we have ability this where is platform, demand in I skilled and that the our use so some built labor to flexibility sort that and of our we'd

are we so And focused on that.

inflationary will desire year-over-year in industry a seeing We is to of labor to drive else renewable that seeing. utility is also inflation. the The nice the lot power. and that are cost rates, we've about average continue this everyone low same have some pressures commodity increase There's solar part percent which inflation in seen

are a inflationary up, think makes there also of going we power going the revenue pressures, is even for solar while strong price forward. which So,

Great. Thanks a lot. That's all for me.

Noel. you, Thank

now they Thank closing like questions the other you. would Jeff hand were this call Peck at for back And no to remarks. to time. I

engagement your in our forward allowing Thank We we updates coming with providing time for Thank And appreciate look the share you progress on future. and you. Bye. and to you. you. Thank you our today. conference call performance us to everybody

conclude conference. this gentlemen, Thank does today's you. Ladies and

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