Earnings call transcript Q2 2023

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Operator

Good afternoon, and welcome to SPI Energy's Second Quarter 2023 Conference Call.

As a reminder, this call is being recorded and all participants are in a listen-only mode. [Operator Instructions]

On today's call are SPI Energy's Chairman and CEO, Denton Peng; CFO, Janet Chan; and COO, H.K. Cheong.

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

Mr. now call I pass Peng? Energy's over the Chairman SPI Denton will to Peng. and CEO,

Denton Peng

to growth to of during more second sales profit to improving and joining quarter than the more Thank $X.X for than XX% second XX% our net quarter million you us the double-digit call. XXXX on you, We strong over nearly gross increasing earnings million. $XX Diego, everyone and quarter, with generated today thank second

out we broken-even quarter. our exceptional rapidly continued as and we second Underscoring and strategy the our our growing strength with year, spun core Importantly, of last this Phoenix passed on structured further execute division, the which when performance loss growth we operating Motor out plan focus. profitability our improve business demonstrates our solar operation, ability point drive NASDAQ the diligence during the EV to of

profitability, last Sacramento, profitable business capacity a clear been growth since This solid especially of near-term revenue on has have has quarter that placed a established recent to manufacturing California. us four based our solar we year. chain years, In in path strong

process strong We to Carolina meet in to additional local South demand. build are capacity Sumter, the in

we forward market. TOPCon trends cell the that in U.S. accelerate U.S. under and boost energy also Inflation incentive to in moving anticipate provisions to and tailwinds renewable industry global capacity these We process from wafer will solar strong other in benefit manufacturing are including the XXX solar as X.X the the build Act gigawatts megawatts the continue Reduction We

believe in solar our diverse positioned EV spanning a portfolio and extremely technologies. we We sector are well with

strong to of a of and will exceptional net believe place that profitability. and metrics by returns shareholders. positioning you. combination sustainable team us creating continue Thank strong strategically Energy our establishing on improving mission sustainable more energy strong us your solutions And great clear achieve Our a financial profitability we enable executing on near-term continued growth the to are that of is our path performance, confident leadership brighter, deliver future also renewable powered SPI for together. our we to success energy. create while committed will support, with We

Cheong. to pass H.K.? H.K. Operating the now call Officer, Chief I'll our over

Hoong Khoeng Cheong

Thank on you, everyone good call. this Denton, afternoon and to

over even XXXX. past demonstrating four our years, So this accelerate adapt Energy remain growth growth, to the market consistently to on in has thrive SPI ability a track and further revenue achieved evolving rapidly in impressive and

proposition for at call, noted a investors. today's Denton beginning compelling value And have the we of highly

the the are flow cash the generating and our we portfolio diverse in grow. fuel project So and hydrogen to sector positioned solar technologies, assets consistent our in and solar, well pipeline a operating with is while renewable cell in robust continues EV U.S.

shareholders our spin-off to business lines. plan pursue opportunity the have we key believe unlock as our additional to we we to continue significant Additionally, value for

spin-off passed for the So and second have in we SolarJuice, with on NASDAQ began of also XXXX this IPO trade Motor on will which ticker already Phoenix SJA. under process NASDAQ the successful

new Power producing have as unit, spinoffs, each over retained the ownership spin-off our Orange of to business power So we majority follow half of of we the plan In this well. with independent these entities.

hold currently more in So we the ownership than Phoenix of its share. XX% of case Motor,

we have through capitalize to the state-of-the-art to particularly a on, exciting while subsidiary. we XXX-megawatt proud new so many our and So SolarXAmerica are opportunity in cell line launched U.S. manufacturing of business wealth n-type a have TOPCon solar

with for module the launch South the support U.S. will X, manufacturing the XXX-watt of and Carolina, bifacial utility cell residential XXX-watt year in facility and scale in made the production SolarXAmerica solar it X by of So year market the market. of for net by module commercial

customers this in modules XXXX. series are half be of for delivery pioneer and American-made solar expected cell the of So to available first to

Looking growth year capacity. our of solar and manufacturing driver of the into ramping will module remainder key ahead, the for American-made continued a XXXX the be

we mass currently latest customers MXX American-made capacity with utility residential, solar and in commercial the XXX-watt XXX-watt and delivering Sacramento, in to California So a in XXX-megawatt U.S. based are production and module

to So of proud are since that business four this we profitable quarter has say been XXXX.

expansion additional by we running first and to capacity 'XX of Our is the underway an of and up XXX-megawatt be XXXX. expect half

per gigawatt existing So at with of our expansion the we California. in year will then, completion facility have capacity X.X this

addition, Australian us growth continued in In of distribution XXX-megawatt saw to modules PV and in rooftop XX-megawatt equivalent XXX-megawatt inverters, and and storage Pacific battery of installer, Australia XXXX. XX% to the installation Australian Asia residential our business is solar solar Australia throughout of of delivering which

is and which solar been profitability. also has our to we expect revenue stable, improved from So project steady current growth expected drive business other pipeline

cash further flow Power will business that stable a overall company, our for provided strengthen and the Orange also Our profitability. has consistently

$X.XX prior solar and the cell to per So and for provide the watt produce of division incentive as modules cell are in to Inflation Act per California solar XXXX Currently attractive produced. produced our in South I watt of $X.XX mentioned modules companies on manufacturing of and solar U.S. positioned solar Reduction calls, receive the Carolina

our benefit additional should and credit, from XX% tax which U.S. will ASP our gross So increase our margin. customers also

solar well cash has moving have our margin on flow areas renewable battery extremely opportunities Overall, our the us foundation forward. storage, and operating expand electric project assets pipeline, consistent our profitability grow wealth American increase of capitalize we strong vehicle manufacturing, from gross established key of sectors positioned to including a in to and

foundation, pass to across to unlock strong by comments before call increase on growing to with record I noting places of performance value detail, multi-decade world-class in our for our business position shareholders new confident that discuss each success. to over we share industry our second quarter building my Janet market tailwinds, ultimately financial to rapidly quarter us that conclude a the great us the I'd combined team as in track of is in a our greater units, ahead. our So accelerate growth I'm enable like

Chan. our I'd So like hand Janet CFO, Janet, to you. to call over to over the over

Janet Jie Chan

joining H.K. Thank today. you, our Thanks Good afternoon, for call everyone.

XX, sales million, $XX.X revenue increased XX.X% million XXXX. net from our to business lines. in mainly $XX.X to ended of quarter second continue XXXX, driven the June solar increasing from Revenues our be by up For QX

the of from consist second which in $XX.X the cost million and in our quarter, raw year Our revenue. consistent of materials primarily and revenues, million net with increase up $XX.X period costs, labor to prior increased in

or QX was in the of strong our XXXX. profit up from million from gross General a QX gross efforts. XX.X% our quarter, million second period. period and [XX.X%] administrative the a from profit net X.X% expenses in decrease expenses margin us prior result improvement $X.X $X.X X% year of G&A XX.X% $X.X the up second quarter, year sales This the -- of of was comparable to for of million or continuous of in a giving Our gross of quarter, declined $X.X in sales control in million expenses net XXXX,

XX.X% million net operating or XX.X% down or expenses in the of to quarter revenues, from decreased Total in revenues second of $X.X QX XXXX. $X.X million net

profitability. outpaces, $X over major noted core operating operational lines million earlier, will of passed this loss spun point, include Denton NASDAQ be on As our XXXX. operating business the just in breakeven Phoenix which million out Subtracting Motor, believe we loss to from our what overall on path a milestone we our $X.X sustained

quarter, interest million expenses of from the $X.X was the and in this in resulted $X.X Lastly, to of a second attributable second loss XXXX. SPI million shareholders Together, $X.X QX other for million net quarter. factors in up

million cash, our $XXX.X equivalents As of restricted assets with was cash and cash. $X.X in total XX, June million, XXXX,

you Thank you. questions on may the have. you for today, joining now that open this we up us all call Thank will for again floor and any

Operator

first Maxim Group. Sullivan Our with comes Tate Instructions] [Operator from question

Tate Sullivan

XXXX $XX net $XX maintained an seen versus tax accrual the for $XX solar the any of or benefit? first manufacturing Does you credit? to income net loss half million million $X.XX assume U.S. recognizing other like accruing guidance panel that You guidance of million. for have companies And your

Denton Peng

you questions. Yes. for Thank your

including is and in Reduction not but there is guidance $X.XX Act is So current environment reason in for clear. the still Inflation some the [$X.XX] our it

for the -- getting including report $X.XX, the future. but So financial are our current we not in $X.XX eligible this should be is

for this And $X.XX. that this also now, will still current revenue that we report and our generate including year. not is we For -- the for guidance are profitability for confident our and secondly

Tate Sullivan

here of can much solar panel your you give this think? what today what the U.S. solar that context of how you U.S. sales? you is up better manufacturing to of any there With what sort Or or credit than accumulated percent recognize or

Denton Peng

the We this, it now report not information or waiting from as -- think also, other? is this to still be in we $X.XX this income is We have financial more to kind because additional clear will on give because on we everybody And we other Because information other don't now working generate and guidance need that. will is pace clear get know how still on, it get not clear. which putting we by -- of or try other our revenue this competitors. but

Tate Sullivan

sales on projects well any your guidance Do concrete the Okay. please? acquisition as any resolution of of in additional SinSin power with dispute also assume commercial you solar previously or

Denton Peng

Yes.

working that. are on We

selling last some were in quarter, see. and we will Brookfield. We to just Oregon In portfolio

Hawaii on are other Oregon, still working probably Massachusetts, other portfolios. we also and in portfolio So

generate profit asset So year. and is this as more this coming business we for revenue sales more line on from

project see this SPI more Solar much the on improving we solar then So development will year, business. for

Tate Sullivan

Or And or with any guidance a on the resolve can the and that's there you potentially comment you that? is could SinSin on positive? that timeline dispute

Denton Peng

business, more our sheet balance million because it's a worst for Yes, payable $XX and so situation. the time already the SinSin than long finance other in is already

we So on find issue. the are to to the still SinSin resolve result working

not million SinSin. book. a the cash assets in have $XX in But Greece. has chunk we more million in currently, company than It's dialogue continued the shown have with more And consolidated the book. XX payable the big So than we meantime, the EUR in in of

So this as as we soon resolve one try possible. to

on resolve timeline legal But put working will first provide this We still to are definitely but a issue the we priority. company that, cannot for a in that.

Operator

hearing. Anderson, he put like the Looks on next and Mark are Anderson, comes my line? And Instructions] on Business were that's his Sacramento that Journal. apologies, Mark [Operator our the from music line you question you hold,

There for be request Instructions] you. the management for back floor to appears no remarks. I'll [Operator to additional closing hand Thank questions.

Denton Peng

Thank you call. for everybody joining today's conference

So see time. I you we hope next you. Thank

Hoong Khoeng Cheong

Thanks much. very

Operator

that, All Thank you. day. call. Have with disconnect. good we may parties a today's And conclude

SPI Energy (SPIEF) 22 Aug 232023 Q2 Earnings call transcript