Earnings call transcript Q4 2022

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Operator

Good afternoon, and welcome to SPI Energy's Fiscal Year 2022 Conference Call.

As a reminder, this call is being recorded and all participants are in a listen-only mode. The call will be open for questions-and-answer following the presentation. On today's call are SPI Energy's Chairman and CEO, Denton Peng; COO, H. K. Milionis. George and Cheong;

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

CEO. now pass call Denton over to I'll Chairman the Mr. Peng? and Peng,

Denton Peng

Shermdi you, our everyone [ph]. us earnings joining Thank year to XXXX fiscal today call. on Thank you for

our to XX% placed of top over end up of in year in XXXX, exceeded generating fiscal XXXX. the are report $XXX.X nearly we million We guidance revenue,

and guidance confident of that issued with we will million are previous million revenue referring XXXX. between the expedition income the $XX for million range net fiscal term near year are We the year in net and $XXX we profitability, expected $XXX to for And million with in XXXX. positive the $XX EBITDA deliver

year, to as solar is Inflation in accelerate our Thanks significant class been give solar also strive are renewable the company proven Wafertech our that wafer world investment particularly success demands. monumental to business business we growing and last each to considering enable hard the ahead to Reduction in growth quarters U.S., unlock in a we EV who module our Act further years the American been work which the rapid meet -- growing have our our ultimately of in SEM make business shareholders rapid to us and share quarters our growth our built new in our foundation, overall multi-decade proud expected manufacturing for passed with of continued us of for energy possible helping team manufacturing teams made achievement strong will have started when industrial rapid brand tailwind record even great by This This our instrumental growth platforms. more across units, value market to milestone increase heads. place SPI for American position as building in

The last, been Australian but growth SolarJuice least, not have and independent profitable company our producing three years. distribution Power last the in power Orange

XXXX. been SolarXAmerica And quarter this profitable and all Our about between we SPI solar for developing have in fiscal we will $XX EBITDA XXXX. are with company to to group With ramping delivery and million project American module four net growing confident manufacturing year the year. positive tend to profitable $XX to expectations, net since be be and also and aim million near Solar expected income capacity term up that profit business our build

H.K.? I Officer, further operation Operating Chief for over details will the Cheong, in of to handle now H.K. performance call our XXXX. our

Hoong Khoeng Cheong

you, by business Thank Denton. like major of unit. I quick accomplishment would some provide a to recap

completed solar accomplished megawatt a multiple major project sales including five project in solar Our development Solar, the in Hawaii. of milestone XXXX, business, SPI

on in with in the begin of develop the XXX So community and megawatt development solar the development Southern Kendall. XX.X acres of our acre the project the also we California solar land megawatt land on XX X.X begin second a show for project on phase

for a XXX a in utility XX scale in Additionally, of Illinois scale solar megawatt land XX a of for we of and Maryland utility secure XXX project megawatt land project. acre acre

the from offsetting approximately produced XXXX the renewable gases. project XX.X on kilowatt million of tons U.K., our in independent hours approximately energy Orange XX,XXX greenhouse of during business in So solar and Hawaii the PPP producer Italy, power Power, Greece, and

Power its net compared XXXX previous up and income Orange when by were increased revenue XX% in So year. the XX% to

SolarXAmerica, our in manufacturing quarter business fourth solar this quarter strong after the the in in XXXX, segment On we the that of our of USA beginning module XXXX. modules profitability finished solar of production making second with

solar facility C&I XXX previously revenue well We stated capacity. residential lease second production Carolina our accelerated of goal in Now and capacity capacity run customer. in we at XXXX modules as profit to for newly X.X have South as as facility our stage for UDD continue gigawatt efficiency production providing production Sacramento our megawatt set we and high the our towards growth of

solar with such and formation an for as and achievement need demand to continue growing the -- has the product The grow SolarJuice Australia, to profitable years distribution there with solar one business SolarJuice our second SEM the renewable the Australia, has of the was corporation business been the distributor leading XXXX Then grow increasingly during wafer Our U.S. to Fronius continue in as in and -- in expect our strategic Australia been grow in key locally partners the the last years. for business wafers. coming three is Tesla for Sungrow. half growth make of

the We this solar wafer are with gigawatt U.S. production XXXX. to and in targeting of capacity three delivery by year ramping

was spun our [indiscernible]. June EV last Motorcars, off under Phoenix business, Lastly,

trucks. vans brands a sustainable provides our with has and buses, and trucks, pickup the also light So with emission including transit range transportation customers, product zero medium duty of work developing buses, SUV, shuttle and vans. to available EdisonFuture duty Phoenix and Phoenix delivery been school deliver

consistent in ahead. of grow American cash to gross have American capitalize on Australian our well of extremely years renewable the we as established key electric make including project the profitability growing have as flow manufacturing, us strong foundation vehicle, overall, in area wave wafer the So module development, well distribution, and positioned sector, increase and and solar the solar margin opportunity to

ahead, with the of solar and attractive our to U.S. manufacturing looking Inflation lever of for quarters, to in Reduction expected solar wafer Act remain passing create solar growth are strong the the incentive business module XXXX, and produce companies which in upcoming So modules importantly

So the our in in of area California renewable solar were modules watt received in sector, the incentive key established now division facility. $X.XX foundation produced per have for Overall, from that expand manufacturing strong manufacturing, we our asset, project well solar have moving American our gross operating cash including increase margin our us forward. vehicle, and battery and grow positioned storage, electric pipelines, flow the consistent profitability to

solar technology also automate for provisional second groundbreaking reduce we manufacturing two production effort, in regarding to XXXX, and a application module innovative process apparatus solar the R&D improve our to human patents one an patent secure and machine On learning line errors. further

to for further performance XXXX. over our call Over the hand now in detail to you George. will financial George of I

George Milionis

Thank you, H.K.

year reporting So previous reporting this more company. increased to This a to our full requirements foreign was of timely U.S. filer. as our first translates transparency performance XX-K our as filing our a and second and compared metrics

ended by solar XXXX. the X.X% $XXX.X increased from year December driven Revenues $XXX from business million revenues sales be our XXst, net mainly our lines. in to XXXX, increasing For to continue up million,

-- to in net which primarily our of in labor prior million and $XXX Our up XXX year the consists raw That's revenues. from increased cost increase up revenues, million costs, $XXX.X and consistent in XXXX. of materials with

to us in million gross a gross $XX.X the X.X% profit in giving for XXXX, $XX.X in gross X.X% is margin compared profit XXXX Our year, of up million the prior a which year. from was of

was compared or XXXX of to $XX.X compensation As and XX.X% $XX.X net due sales mainly or decrease for to expense. in This sales the million general decrease declined in XX% administrative of to net expenses, XXXX. they million stock-based in

these year operating from -- than in expenses loss I'm and or $X.X XXXX. down Together, million XXXX. This $XX.X million the or million year, XX.X% $XX sorry in from factors $XX.X XX fiscal net million full in million XXXX, $X.X resulted of which up improvement in an point million loss of Interest year total more of in to of other for net expense -- decreased $XX.X net is For revenues. from the of revenues net XXXX, they was XXXX. was XX.X% million a $XX.X in fiscal

our in million XXXX, $X.X XXst, total were assets had million cash we December equivalents. and of in cash As $XXX.X

already by in hear million term previously the for positive expectations reaffirmed of and $XXX guidance issued with revenues million As expected $XXX with Denton EBITDA we profitability. to range mentioned, net in near has XXXX, and

are will we deliver and for million We income net confident between $XX XXXX. fiscal $XX million year

over you may in the to any open have all thank it I floor operator and you. Thank this we'll now at for will who up call this for that you time. questions hand the taking today, part

Operator

Instructions] we will be conducting And question-and-answer at time you. session. Thank this [Operator a

Tate of Please comes question. Our Group. Sullivan your with first line proceed Maxim question with from the

Tate Sullivan

drove some profit margin? into XX%. fourth gross you XXXX are in commercial gross increase that Can margin profit what in please? the sales about in increase talk XXXX, or you. Thank in sustainable possibly it XQ going that Impressive parts business, of what solar -- to in Was

Denton Peng

business Thank you driving margin improvement different questions. segment. for I a The for think gross

our one U.S. investment. is first important The difficulty] most manufacturing module promotional [technical

megawatt see, ratio a few gross improvement. profitable in operation the first This [technical margin capacity. of last hundred that be and both This difficulty] already Now is we megawatt month year driver already month few every XXX [indiscernible] in is you months growing will margin [ph]. QX and of the

development business, of we And also that have we some business see project project. our solar

margin progress the think lower, with improvement increasing module this gross and in three the compare year also was demand, and margin driving big project We Australian we and growing year also year. a business margin the And gross also gross year and we'll this our our is are every margin number even gross gross well second distribution is and consume I still solar Power. also quarter this. normal even manufacturing margin driver also also, improve. -- our year-by-year improving increase business This be per especially benefits our is Orange of from but And

gross I the of this [technical factor our generally difficulty] and think margin growing. main

So [technical also for I year. this difficulty] especially

Tate Sullivan

talked about Thank increasing levels? has demand U.S. it a U.S. to modules, you. bit this made solar at pricing it please? and for modules. before been year increase made solar You you've Has continued been talked still for consistent Has great. And

Denton Peng

H.K.?

Hoong Khoeng Cheong

Thanks.

the the small project. C&I We actually also are residential for have -- care our and for module business, product solar

the would low C&I residential the we our volume as So, the looking business. residential for and much XX for the C&I mid the space than the be larger into probably distribution project are for in XX

Tate Sullivan

Okay. Thank you much. very

Hoong Khoeng Cheong

you. Thank

Operator

of question. the question your next Our Tim from Hutton. Please proceed EF Moore line with with comes

Tim Moore

I Thanks. range Phoenix guidance the for And I loss and net of square from your Reduction through loss quarter this H.K., that profit for it year. of narrowing for nice in fourth wondering net does Jen it does exclude see the just And us module and first George. was solar even Does stock-based have actually terms in walk you the the it forecast include year, that meter of Denton, or it $XX $X.XX the exclude to was the per questions your Motor? for incentive several wafers? possible for Inflation for net can any compensation? watt per Act from

Hoong Khoeng Cheong

revenue -- combined. is the This business have we is Yeah. including of course all

And, should grant you For the business in consider receive for for also in net possible wafer and for the continuing U.S. -- EV income investment the year business. grant and the this investment our we of loss investment the that always the business modeling income will of need the first the benefiting we net year course, consider the on for solar in because our also the $X.XX

So this factors in all is of total. considered business all the

should business think the profit that and solar net producing solar solar and first development project EV especially module may that more the but our we also -- business distribution of business. do year. wafer than better consider and we profit the need I continue also be the generally be sort business business and investment also should electricity we profit solar what So to for net net The our guided, manufacturing, in for

Tim Moore

just I income helpful. to guidance. one other the for that's That, have that net Okay. question related

and volume be $XX to could when just the building that projecting $X.XX guidance, $XX exclude I'm million that California. does few it want make I does million model, for it in sell you're times include it the compensation for year? to million stock-based includes a you from what my That per sure So watt

Hoong Khoeng Cheong

grant but is including operation. stock-based Reduction Basically we compensation. receive Inflation not Yeah. not like this guidance, This really to just relating are is is this $X.XX Act, because this including to eligible according

to [indiscernible] we time, where time it, So -- can and is this also do time we since one only to the best the operation effort expect see side. cannot from

Tim Moore

And mean, sold of watt from meter? any to incentives. the forecasting guidance your from gross million profit guidance. of And seemed it Okay. square it your include wafer XXX income? I net helpful. for sales million million that's to in Yeah. Is the be $XX based like XXX on does $XX per could I'm of that $XX that incentive the

Hoong Khoeng Cheong

this wafer in are the process because the to construction facility And build. we year and

And So year, I this any year. don't business just expenses. the expect this come wafer from should meaningful be revenue

You facility last some from for takes starting definitely year. year. a turns be building revenue even next time from to should coming manufacturing U.S. It

Tim Moore

That No, Okay. on timing. is March done. makes helpful sense. really pretty the And that's much now quarter

You quarter -- give it from it manufacturing us was your sales in of as modules a solar be reported? March in up you $XX and at December more revenues I million quarter, California, the $X than the sense that mean, in of look we million in-house for ramp could the

Hoong Khoeng Cheong

Yes.

is and than a quarter nearly -- less a the first be think little the think normally, in I should double. for quarter quarter million qX, $X it’s I

expect we when always. think to and hire revenue easy double and our employee a by every be you train is you driving I many employee could challenge, it's in quarter U.S. --

need enough capacity for ramp training employee then you capacity. you need hire You them -- and and

because So XX% training our lot ramp to up employee to or -- demand the to them this and ramp get we we capacity takes even full we only expect them capacity. a to time try be to to quarters. orders, for up But of by see XXX%. have hire, the are -- be enough some few than process the them we that will will close much But to full we in the ramp next double quarter capacity. be definitely are quarter But quarter, now lower number to almost we up because every in current

Tim Moore

expect $XX last Good. question my it your orders? $XX do to capital? That's I'm you fund very million self-fund is, get helpful of lot module it the think getting end to the a you How every sales do California. forecasting Are until you from big million cadence in working that And some manufacturing of this deposits to because H.K. doubles of quarter could And you from that year year? you

Hoong Khoeng Cheong

some have operation profit more we reinvest so current profitable, now to building business. are of the in resource own want and to secure a help volume, build thinking of our they capacity. help the customers help meantime, Currently, the to Yeah. they Carolina. capacity, we they more will increase we new and the about to very our our in factory And us South funding, us so us Even customers, they course, second

from So definitely we source for even -- will get a customers. support for post and operation our and different CapEx sometimes many

Tim Moore

explanation. you Well, for it was for Great. Thanks. thank that That my questions.

Hoong Khoeng Cheong

you. Thank

Operator

at And time. the reached your This you conference, session. and disconnect question-and-answer thank participation. for may end we your the concludes also you of lines this have today's We

Denton Peng

you. Thank

SPI Energy (SPIEF) 18 Apr 232022 Q4 Earnings call transcript