SPI - Earnings call transcript Q1 2022

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Operator

Thank you for standing by and welcome to SPI Energy's Q1 Earnings Call.

During the presentation, all participants are in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded Monday, May 16, 2022. I'd now like to turn the conference over to COO, HK Cheong. ahead. go Please

Hoong Khoeng Cheong

Thank you.

today Denton call SPI Chairman the Energy's are CEO, on Peng. and me Joining

company's begin, would and the everyone we Securities Safe circumstances before So, company filings the under to remarks on statements purposes occur Private materially now that to of future intend described with SPI Reform Harbor that speak and forward-looking I'd opening provisions the that today actual their SEC. that may conference as like Peng, to about over cautions not statements Denton. from or turn indicated, subject call and risks Please these Any does update differ today. forward-looking any like expectations, including those CEO, constitute of XXXX, plans prospects the Act Chairman Denton Litigation remarks. SPI statements for to are for only of in XX, cause SPI results forward-looking this various remind to XXXX. after risks made reflect to uncertainties of to date these May ahead, the Monday, go statements call events forward-looking and

Denton Peng

HK everyone. Thank good and you, afternoon,

double-digit in side continued strong team deliver XXXX, growth, first meaningful line performance to of quarter generating margin Our improvement. top along the

We for energy renewable and have market accelerating growth on built SPI expanding solid demand for clean foundation that growth capitalized positioned in high solutions. rapid to be energy

our Zhou and of track to will Karma in team world-class Lance and level addition globally. is We it the and grows confident have Motor. Our Dr. Phoenix former as the his the the addition Chairman on Dr. with I the our Chief expanded record industrial in increased combined augmented Operating CEO executive for to of will success. over business quarter next our accelerate greater ahead. I'm of that this operation Automotive as share building Motor shareholders across Phoenix with dedicate turn in our multi in impressive as operations unlock call our and resource the us success of experience Lance first the to our team further growth value HK? quarters write to already growing team detail. each market is Daimler great our automatically new will Officer, cover position enable tailwinds HK, to the key us foundation a units, we placed strong a which to

Hoong Khoeng Cheong

Denton. you, Thank

As milestone we products I at solar supply, Sacramento expect storage accomplishment our Denton that in to first had with reach more underway. our into we multiple we make solar business battery all -- X.X began quarter. local gigawatt can SPI insight our expanding customer Most business. achieved further has these of facets facilities and use our manufacturing our strong now delivery already will in to production noted, Made-in-USA units. capacity at during first And of a of with demand quarter capacity. begin module across the facility some With finished our flagship is production importantly, are of and

facility, manufacturing of solar skilled manufacturing. modules PV combines at precision our which will with high expanding capacity connectivity that a highly improvement of continuous module machine-to-machine Our automation this drive state-of-the-art workers features California degree

solar XXX brand our first quarter, panel We and the well XXX during modules also our under XXX also have of and customer SolarXAmerica. the solar to new commercial excited XXX watt under brand watt launched watt residential SolarXAmerica as for as

will confident well Intersolar with show, first scale we showcasing continued COVID perform opportunity during capacity. to to generated So, our at as Made-in-USA meet to very quarter, the the on continue the manufacturing show an product this trade interest solar modules. buyers with had we are restrictions vain, Based we face-to-face at

of Solar solar in Maryland a and commercial the acres parcel our utility-scale plant to XXX Hawaii first land in the quarter and in under SPI acre large secure deal X and of and Power, two megawatt completed XXX operation Turning Illinois. Orange during we

are On project the XX Maryland we solar XX.X the DC AC megawatt parcel, we or megawatt are moving developing the project. XX forward Illinois with in megawatt

shops, EV On our we of better consumers By our opening in products shop while Bay connect customer to with service Fremont, retail providing very right in electric now our a and have and RideZoomers for and side and our we directly opportunities service backyard. California. options. for the the business, way open a The is improved a area RideZoomers scooters experience market center large

expanding store new strengthening of sales our in-house high and image traffic our direct-to-consumer storefront located and area is exciting the wide business growth program and this unit. brand for in sales compliments the reach Our ideally Amazon our fast-tracking

EVs power, pallet compared the green MODEX new Additionally, be forklift than product this interest excited options needs objectives. sustainability our to energy help CS, in less great EdisonFuture expand one traditionally will on saw at portfolio, of gathering up this was were competitive we in our we efficiency forklift, in the on showcasing product generation provides these great Phoenix to which has where unit the and late as Motorcars Auto momentum electric pricing well payback delivery van of jacks. this segment last similar Show We next can same look we stuff expect payback and Intersolar, iron of and advantage this success After a in EFX-T The we a effective able adding Angeles our is lithium as van, have growth to delivery that EV of truck features cargo we showcase typically our to where solar successfully line expanding, first customers solution solar received Built companies rapidly we electric level build are to during we and competitive sales quarter solar well both reading cleaner exciting year extremely fourth with the in for vehicles. Atlanta, year, innovative delivery powerful as our the we units, EV chassis, provide and that many Los of and their quarter ahead. to longer believe and drive pickup at the existing believe a periods. quarter the CS, pick and industry our EFX-V,

our synergies capacity. tremendous headquarters our Sales provide Lastly, we the close business County grow solar efforts. to Sacramento value, facility. from and energy to renewable solar proximity quarter-end, to corporate development proximity relocated creating production continue manufacturing close in subsequent to this our our positive across increasing will We strategic believe module

XX-Q foreign company report filing and to So, this requirement performance compared is metric XX-K the March. Form company and on of This Form of translates to transparency the filing timely as reporting in the as first U.S. annual filer. more increase follows first previous a on quarter our our our

by For to XXXX. solar quarter XX.X% driven our be XXXX, sales mainly one Revenues ended up business sales from the quarter from increased $XX.X to XXst, in our continued net lines. $XX.X of March increasing million, million

share we Although, an forward. expect EV revenues revenue of represent overall large to increasing moving

experience to and with from significant or quarter from in net $X.X expenses, which which gross XXXX. million of XXXX. increased compensation our profit partially last -- decrease million a gross XX.X% in Our expenses Interest February $X.X labor was in year the of the decrease to solar the from in first or installation $X.X in to administrative XXXX related margin year primarily indirect consists costs, quarter, The loss net or a quarter and the the improvement $XX.X materials operating of first first first XX.X% with were and related margin million to units. of The our $X.X Total at expenses increasing sales changes increased result to from million a led the XXXX due in of in the XXXX. quarter of mainly cost million $XX.X compared one quarter, down up the our Together of loss quarter or solar sales, of was to reported X.XX% business. gross significant offset quarter incurred General net $XX.X in ago and factors was in raw $X.X of first one were of or XXXX. roofing This the in $X.X $X.X to or million, XX.X% XX.X% net net of by the in of cost sales, $X.X XXth, other roofing revenues, first quarter X.XX% quarter up bonds acquisition quarter million net million year-over-year stable first resulted in primarily of acquisition million period. expenses sales in the borrowings. million improvement of net the to was no increasing these other XX.X% and million XX.X% first business net in and of sales convertible sales of in stock-based of of

XXst, XXXX, had we March cash, cash $XX.X in equivalents of restricted million cash. As and

ahead. the to Now turning year

challenge is earlier, into to our drive logistic in primary year. $XXX residential This chain the to to will revenue globally. driver overall year a mentioned and believe ultimately XXXX, revenue EV million million fits our progress. the ongoing accelerating sales As We as supply with $XXX business for range solar the remain this expected consideration

success forward our look sharing future you ongoing we with to in So, updates.

for We Thank you. questions. now call open will the

Operator

comes Thank question proceed [Operator Please of Group. with to Tate the first Maxim you. with Instructions] line Sullivan Our question.

Tate Sullivan

that's Can of Petersen-Dean organic, acquisition I much of the closed see the gross the revenue can of please? you roofing believe on breakdown. all I the profit States, you me if remind the you year-over-year United solar Hi. mostly revenue and the may from you the and starting to installations in and with growth great when year. was acquisition, systems Thank XX-Q from how revenue with that and And if and the last detail timing

Denton Peng

of rebuild acquisition was assets just use We Yeah. business [ph]. the and because -- it just Most we closed of sine SolarXAmerica assets assets brand.

we asset February. end the acquired So of

produce the the that other business. now process use acquired from we brand solar So, we business the rebuild the We in to -- for module brands. to asset SolarXAmerica are Made-in-USA in

different business are installation the solar starting we from Nevada. now and [indiscernible] So, this Florida we be and in argument. extension there roofing to business is And the growing. will and is a and acquired from business now Texas, also total The rebuilds Colorado, we California a in the --

Tate Sullivan

the million. just those of Are good the for modules, end be Made-in-USA are products mean, customers? close, the year-over-year the the you into Great. those for number, on backing the Can modules? those Yeah. Were customers with solar primary who solar $X.X commercial Petersen-Dean then February I Sacramento comment growth for target customers modules? Denton, to the And installations? still the

Denton Peng

Made-in-USA year. started our We're Sacramento at starting We in different beating and to first it's produced facility module customers. as delivery early Yeah. this

also other for use selling level a buy also course, our Also, many us. through commercial national own states, and we company. all installer distribution of some commercial Some, some also installation is installation company and from

So, now in we states. have and a Washington also in California, State in customer also other different

So, seems like demand is growing.

have almost visit week, customers Sacramento every many our We -- facility.

more is HK, demand you So, Maybe strong. add about that. can very

Hoong Khoeng Cheong

Yeah.

As early Denton quarter are in we production actually in in -- the started and the mentioned, we the second quarter. increasing first

third We the incoming year. the new expect closing quarter with quarters, by of line this more installation especially

So, quarter we the will be production XXX by gigawatt X.X moving a target megawatt expect and to the capacity. up toward third capacity

Tate Sullivan

of potential Thank terms revenue prices time? flex in to the at you. end will fluctuate you that Can I may know facility? can of year, you gigawatts -- the or -- you what of but capacity the this roughly can that by mean could revenue, translate the

Hoong Khoeng Cheong

the pricing is for fluctuation, do Yeah. the the today -- the is to market mean, probably mid-XXs. XX pricing I on but a watt in based we high see

view So, module growth sales. significant with up, solar we do in this capacity expect that

Tate Sullivan

Great. the Thank time. you you taking thank for And for questions. the

Hoong Khoeng Cheong

you. Thank you. Thank

Operator

with with Hutton. next And Moore [Operator EF from line the proceed the our comes question Please of Instructions] question. Tim

Tim Moore

narrow my to end? guess, It investors. margins sales your to is operating for first for with Thanks. And echo very a nice Tate's to was see after chain filing. higher expand. the your installations, about maybe question, on the supply comments next quarterly loss maybe for guidance That's in solar help it's range shifting factor and helpful disruptions gross year be the I potential it that achieve or What panel else the low-end of range. would dependent the between factor later more the and the Is you difference think roofing do manufacturing year? you revenues the high-end the could

Denton Peng

Yeah.

of think challenge. more I logistic problem challenge on really that how the depend really, the

challenge a year You logistic. solar understand, this also for sector for of sector EV and lot

So, the logistics how delay. affect this depends is really

port, the you it's weeks in three or four even three maybe see on Sometimes, or taken material even waiting waiting or weeks. four just the U.S.,

Sometimes, for they lot have uncertainty the chain. a of supply

both sector So, sector. for solar EV and

Tim Moore

Understood. That's helpful.

going maybe share maybe pictures discount customers maybe customers you're it, up couple sign you there? the Do trade show. Can have saw few to a example to XX% of Regarding the initially? new gaining ramp approach and an to think of manufacturing, winning from I solar you get a to a traction switch and your to

Denton Peng

the good kind years. relations acquired And Yeah. is the very Current module customers situation, normally, thinking very, and customer many long-term signing customers, of sector, U.S. about EV manufacturing maybe solar especially for for many different in installation really solar we sector contract, really this see positive is roofing we in business, with that we assets deal long-term And before. like for now

is this markets, grow. also a I have business we the capability, business more a So, continue now when think to from more

Tim Moore

on production. for the Okay. the thanks the quarter Understood that. That's commentary third installation. good. line And Glad

later if side? provide year? you that possible an or gears. the commentary for update And switching solar side Just on this timing separating EV the from there's Can

Denton Peng

I Sorry. question. get didn’t your

Sorry.

Tim Moore

if update the separating to solar splitting up and there's on possibly the really either EVs the was solar spinning there unmask side entities Sure. vehicle sides, cash side? the or SolarJuice or that's I on an from profit the side, wondering separate off electric free

Denton Peng

Yeah.

operation combine The the years. profitable side, for profitable already in three -- coming think business, especially be manufacturing. our SolarJuice will Australian last in is very is U.S. the especially I solar they for So, the years module business will solar

recently very good Sacramento. in business signed two relation they're supply Tesla business So, And and side with to solar very this power growing with Australia have they And with very, is this profitable. business. gigawatt also

profit soon. very in generally come So, to I will business very solar the think

the see in the are you to business process already business, we filing, spin this if weeks for SolarJuice for off try -- few EV public So that ago.

have Tesla -- range. will price to So we be we just a had up set a

are to can. target we listing IPO we So, our possible as [indiscernible] as as still soon

Tim Moore

expense some doing business. installation late investments you $XX million year, on be Yes, general last it wondering see last could general behind that of or roof put money Do year this in could some because have included thoughts last the you I was compared expenses high how I administrative similar filing and to to that and come this did and on Good. updated integration in the year. and the administration were had expense you kind year? rolling any guidance to year's

Denton Peng

Yeah.

roofing because solar I year, the and acquisition PST, think last installation have we the asset from company.

accounting of the some all expenses especially both and option IPO EV share we company of lot a have also We these and things. IPO have non-cash base the for for

especially, year, share solar [indiscernible] think of to operation. cost one -- are these I this all more year. time our there related last solution also IPO in the be the year, like, base compensation, business, And this no we'll

it profitable. so be is to So, for, turning size billing the will SolarJuice also

lot all a So, expenses go I year. compared think to down will last be

Tim Moore

electric was My about helpful. Good. wondering the little macro the -- believe last No, systems months, question last at that's market was stock been been wondering, global similar under and backlog about drive while December. G&A line. just it of the has and is how just I expense few I is Phoenix, for there the a the interest And end I'm $XX just the pressure? to has million vehicles

Denton Peng

demand for very EV Yeah. is The still strong.

But backlog We generally lot last increasing, of strong. sector EV still going course, supply definite see chain very, -- have year the have down a and some issue. is change they to for a market very our still and evaluation demand of compared is -- EV

is big now especially have to delivered very to futures. customers meaningful orders some And see the to and have They our we good to starting EV -- several more want customers probably stronger, getting So, and we as have want really for demand is is market want -- for customers. this interesting, very customers. stronger. some product -- And more very the stronger,

especially So, to we into I level few think grow for good are sector, in very position EV years. the next

Tim Moore

for is you color for on That Thank that. details questions. Great. the that and it my

Denton Peng

you. Thank

Operator

Please Group. Sullivan next question the of Our from with Tate line a is follow-up Maxim proceed.

Tate Sullivan

Thank question. Hi. taking my for you

most sheet businesses, inventory increase, about increase that almost you to inventory can of first talk is in first on Sacramento related quarter. increased by comment the can your you your Just $X expansion? Or the million one inventory balance you what that related that Among question, please?

Denton Peng

Yes.

issue, production. challenge and EV logistic module the because of, you of need this So, both production also inventory increase for now a solar in

sometimes [indiscernible]. order So, Normally order the now also, the EV we in and this you for inventory, order module also order, also for logistic. face sector a inventory other -- just a to for you our may But -- increase because so on -- increase you but can challenge just also of little time meet for manufacturing. bit for we normally less, you try material need in you delivery,

than So we little more need before. to order

Tate Sullivan

for may. Thank you. Okay. me, if And one more I

Australia in expertise -- Denton, For in what versus two you about versus U.S.? talk your trends the Australia business the markets Can the bit your apply solar Can a in you the in please? about solar you your U.S. Australia exposure market of some can to compare opportunity the U.S.?

Denton Peng

the and Yeah. Australia focused market is residential commercial business. more on small

So we purpose. some for U.S., -- also are U.S. expecting we

we have a So, the of lot relation supply Australia with see the chain.

a So, we U.S. when But plan to this -- Pacific benefiting see other California also. markets, be and happy Zealand in New important And especially we have solar We will especially, business markets. also business. to also relation and for for Island to -- very we also definitely expansion we we grow the the grow Australia U.S. the will other here. -- many U.S., have the a

definitely growing Island we it'll is like this Australia. So, also, probably be to similar Caribbean very means will be also --

have internationally. this increase to lot will further a business So, the

Tate Sullivan

of rest the day. great very Great. much. a Thank you Have

Denton Peng

Thank you.

Operator

time. are at There this no questions further

Denton Peng

very you much. you. Thank Thank

Hoong Khoeng Cheong

you. Thank

Operator

the your lines. disconnect and you participation today. for for That does your call you conference ask We to thank please conclude

Denton Peng

Thank Thank you. much. you very

SPI Energy (SPIEF) 17 May 222022 Q1 Earnings call transcript