CRGE - Earnings call 3 2023 | Charge Enterprises Inc

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Operator

Good day, everyone, and welcome to Charge Enterprises Third Quarter 2023 Financial Results Webcast. I am Matthew, I'll be the operator for today's webcast. Today's webcast is being broadcast over the Internet and is also recorded for playback purposes. After the speakers' remarks, there will be a previously solicited question-and-answer session.

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

Christine Cannella

Good Relations I'm to with XXXX Third Matthew. President Charge Cannella, of Quarter Webcast. Results Investor Charge Financial morning, you, Christine everyone. Vice Enterprises Thank Enterprises. Welcome

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Craig Denson

and to third you results, be everyone. Thank speaking Christine, discuss I'm you, you Enterprises' and good our pleased us and quarter Interim joining COO. for Thank with XXXX as Charge CEO morning, to

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our As date. talent, appropriate management are making accordingly. governance, analysis sessions planning planning part of the plan, and this enhancements are assessment evaluating Board by corporate and our remains to ongoing, and we succession and encouraged The

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cash EBITDA in ownership. both the be full year accretive We free Greenspeed continue flow to and expect to to adjusted of

auto trusted build underscoring to nationwide. This dealers offer position but only us announcement requirements tailored as revenue with allows partnership excited shared Stellantis prepare addition to Charge and Greenspeed are not Greenspeed EV management supporting charging, help the EV into mitigating X,XXX in-house date, reaffirms over solutions. Charge end-to-end with our announcement individuals drive ecosystem talented in or execute the seize third assist to new in overall its charging chargers. installed with selected dealerships to us chargers, XXXX, Greenspeed Enterprises their We Stellantis This and to states out the This U.S. costs. The Greenspeed markets. solutions of resource, acquisition commitment our our EV future. them the in for the value infrastructure offerings and active to to equates new at will ability have recent in quarter the execution partnership to the dealers fits and XXX projects market customer go-to of with The nationwide for us of and allows to assist dealerships charging, Charge's the and welcome infrastructure DC NEMA XXX X increase we resulting have future mobile for completed XXX margin of XX receptacles The future Charge Incorporating expansion. vision critical Level perfectly and of shareholder by the solar our states. opportunities will fast chargers. retained have EV lighting to our will to infrastructure. XX necessary projects clients' services XXX believe and increased of EV team products to And chargers while as To the timing allow power charging

to thank to you, team Financial it Leah hand dedication our hand advance look ahead I it Leah? Before Thank and to want team, at Officer. our against Enterprises I progress amazing their I to and pushing you for together mission. our over will I making to our that, initiatives. With and Schweller, Leah, over Chief Charge commitment forward

Leah Schweller

Today, are including through and EBITDA basis. our results, on Craig, consolidated and financial segment everyone. you, key financial measures, profit gross a you Thank I'll which our walk adjusted morning, revenue, and good

compared the compared the Let's gross reflecting revenues million, were XXXX, X, of third begin $XXX.X Slide profit period trend. last a to and quarters. quarter the year decrease In on Charge same to quarterly previous revenues X and

Revenues prior services increased of Infrastructure organic XX% performance business our million usual, two Greenspeed. strong there acquisition different and recent segment through the year driven the period, stories compared As our to $XX.X are by in our business electrical within segments. in to

and gross year services continued business the year Infrastructure efforts. million well margin driven in will same by our successful new in of million attributable the in gross growth actively for sales XX% period period in our $X.X revenues. of the Telecommunications compared trend to to quarters, The was our higher-margin from aligns with that segments business XX.X% progressing both I segment and Our our was performance volume decline, The pressures as in increase well. contract in SMS increased significant affecting margin coming is transitioning primarily experienced wholesale XXXX third versus boost higher-margin our clients XXXX the in segment. Gross gross $XXX.X as cost from would scaling segment. Infrastructure margin XX.X% management a prior meaningful segment. in quarter the last to support our contribution year-over-year in was training, Telecommunications third higher marketing X.X% within X.X%. in in year. segment the to our resulting Telecommunications $X product XX% technology current our voice primarily The We're and composition increasing in note software margin driven Consolidated during inflationary of Infrastructure declines to an proportion year, and We this quarter, revenues making up Telecommunications revenues. year million in anticipate to team the electrical expecting continued last prior the period. comments gross favorable profit grew of a within by previous our start

opportunities well future compared slight firmly margin the margin of the electric to our us this, adoption increase presents. The gross charging about higher requirements. In sector was our opportunities infrastructure believe the continue in on EV we we optimistic trajectory for expand growth positions vehicle it X.X%, prior business, a light promising a increasing to consumer this we dynamic presence As market contribution. Telecommunications and to gross commitment with to period. is harness and year are

the of work of profile our segment on The we this and is improvement volume to strategic we the quarters. SMS overall our expanding continuous anticipate in our improve poised base As as in profit services. look growth customer initiative profitability forward, upcoming we gross

Slide Infrastructure revenues to discuss X, we and trends. will Turning the backlog segment's

and The by same our to attributed quarter, EV to Infrastructure's $XX.X increased period services the the compared and third million. last be progress both XX% year-over-year reaching During the sequentially. year, growth can within businesses, electrical revenues

path is on Our track. the right growth

leverage As synergies on subsidiaries. and Craig covered segments, remarks, to all in services his drive opportunities, and and new aim explore cross-selling capitalize our we of customer products

see we solar provide solutions. and our commercial working the is to lighting, energy approach demonstrate suite services of base, subsidiaries and Greenspeed, a across offer. Management together expertise further With we client our to services the acquisition even electrical seamless of our storage of opportunities to engagement provide including a more existing array across client to

Given ongoing in delays challenges supply address we receive we've chain our EV about the charging impacts, numerous the particularly to questions business. want equipment we faced,

Although these Infrastructure such is finding impacted to segment, announced duration and projects, Autel, solutions project of months. represents future. some timely the to be specifically One on of to remaining line full revenues can charging solution XX projects, committed of our services a effective with a delays last fluctuate based proactively are its challenges. up or Backlog offers backlog large, in our within electrical the who quarter-to-quarter the our can manner. Within these business and longer-term solutions seasonality recognized addressing levels projects collaboration as we completion booking for previously in high-quality

Our backlog quarter acquisition. at The slightly the revenue $XXX compared the after XXXX, approximately exhibit which of some recent volatility electrical primarily in million of the of size $XXX the our to within to duration contracts. services attributable XX, business levels excluded end September and considering recognized XXXX, increased of the backlog at second our to Greenspeed quarter the million

showing business of when third infrastructure $XXX our significant fourth XXXX. most approximately backlog XX% quarter in million We the XXXX million, remaining the XX% last charging anticipate minimal. and $XXX backlog compared within earning was of in EV the accounted to Our the quarter revenues EV the of of for of year growth

adjusted Let's closest EBITDA. adjusted as discuss focus move to true Slide the We to EBITDA of operating performance. our X on measure

compared of within $X.X For driven with improvements year the third quarter, EBITDA the adjusted adjusted EBITDA in loss prior period, Infrastructure. million million loss $X.X by was mainly

primarily as quarter, of and operational their and the cycle under $X.X management. In third quarters, adjusted in EBITDA our our decrease, the tight project a increased highest coming to decline due last budget end nearing the attributed experience year-over-year life reached the segment, gross of X to projects Telecommunications in of adjusted EBITDA primarily and in segment's a During result Infrastructure point our experienced million the was Within quarter adjusted legal $X.X EBITDA primarily profit third voice increased to decrease year in their cost an Furthermore, corporate, in the the overall due to to volume. structure. the third period. growth in public million support approximately current quarter, due the in period, expenses there a loss company with to compared SMB during increase transition prior to the nonrecurring associated of

grow our manage NASDAQ to which the in while the since investments we results of balancing in of delivered prudently to continue costs quarter summary, We we the necessary I best company. are In with April EBITDA third the XXXX. pleased XXXX, am adjusted needed the joined the

Turning to Slide X.

and collectively expenses, in to across capabilities all structure. for our growth the and the saw strong professional at of processes and Looking year-over-year, full P&L SMB profit support and quarter, growth people, the our corporate services margin. in gross Operating we gross investments reflect businesses technology, were G&A, including which higher foster

previously, were past In As and a we over this we actively the about SMB for both foundation. ongoing from stated infrastructure our corporate we EV have And which Charge forward, debt levels, months, thinking is spend quarter used will XX business. hiring equivalents of established and charging $XX.X service. most growth. We organic be point third for of expected on with million be marketable operations focus securities, our closed targeted supporting cash, to and cash hiring the have

productive lender We to meet upcoming to continue with our active have discussions our obligations. senior

adjusted We believe of webcast positive operator adjusted time, the our ahead, I quarter reiterate amongst of of and today's quarter third finish as EBITDA encouraged the the backlog the adjusted well first our I subsidiaries integration acquisition for we session. and this deliver by will XXXX. At in XXXX, EBITDA for positive as full Greenspeed. and we trends and of to we the our our anticipation Q&A EBITDA for year the turn am As look will

Operator

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

first Charge Tate electrical Our on? Sullivan other contracting from types Enterprises does What with of of comes questions work Maxim. jobs set

Craig Denson

the offers of Enterprises area. portfolio a in Charge services electrical diversified Tate,

largest is and restoration government nearing Jersey with did our are State as the of New the we completion. of projects entities, with which the project such local Some state House,

with reach systems, few. name The our include recent a work commercial lighting, health acquisition expanded facilities also universities, We to storage to of Greenspeed stadiums pharmaceutical and energy and care service solar solutions.

Operator

Can proposals you have you charging share infrastructure how dealerships initial many provided EV or to? designs

Craig Denson

does sector publishing dealership not progress it a Good our our question. from approach metric provide as fulsome We're Charge. the for shifting away evaluating on

continue So adopters while strategic. early be are dealerships mandates to who to

installations, and We will the plan multiple of today. the we more forward, to believe expand relevant states into expansion segments. market are number across backlog Moving

we will focus forward, introduce aspects as on and necessary, Going these new metrics.

Operator

public government charging to funding infrastructure? get dealerships Can EV install

Craig Denson

If getting funding. public it's a a station, has dealer the chance of charging

in dealer we fast seeing what public. the charging the available today, case is XX% However, is installing of over are the that is that to not is

Operator

being will We Can H.C. to new Dayal place by on Wainwright. you the Amit leadership? questions expand put move in future now strategy submitted with under

Craig Denson

Amit. Thanks,

covered As value. a steer designed are business. we set three shareholder company's in we're remarks, our deliver in August the foundation future review undergoing as of press to the our growth per that release, and comprehensive There to fundamental our place objectives are

segments, M&A our organic which developing is competitive of comprehensive on plan, of external strategic our analysis allocation of thorough first a effective and alignment evaluation includes growth environment, focus our strategy the The a and business of capital.

our segments plan, toward on are implementing succession focused internal move that making strategic at we're progress for framework sharing milestones. towards synergies progress robust organization. This our utilization scalability more Board and planning and for while updates geared forward. communication, our and we management I'm and deploying our are framework will And efforts appropriate our on are is we underway. the of external driving across initiatives across accountability. Two, fostering look talent, corporate to propelling a our existing objective collaboration our products disseminating profitability. and part a to These instituting and governance, finally, integrating services Infrastructure this forward capabilities, us we as facilitating evaluate As full updates towards operating nurturing cross-functional enhancement date, strategic cost and and of with encouraged transparency aimed

Operator

Any deployment environment? with respect charging change interest to rate EV outlook expectations in from

Leah Schweller

can't EV specifically, necessarily are their Amit, we Charge business and our said, EV interest customers. for being buyers. Fed's our rates actions causing impacts the read not clients so rates prices of not volatile are the rates, to some for on so material hesitation That looking you financing infrastructure house stalling section without market a direct interest factor. likely seeing to inflation. Higher the not projects, factors cool are are Most and interest stock charging

challenges, While recent EV forecast infrastructure as rate one of in to news but short the reports lower of albeit in lack Charge. sales, EV we at for a growth see term, charging the continue the an opportunity this is

Operator

pressure stock sheet-related Is balance the under any from needs?

Leah Schweller

we share needs Without managing we to liquidity debt. sheet, proper speculating our on our operational the our have service our and and price, meet are balance

Operator

Telecommunications of the a outlook of your provide sense you the segment an Can for business drivers? and

Leah Schweller

for with opportunity. a we and potential SMS more this our events. capabilities, Yes. anticipate profit unforeseen include decline, margin Thanks. Recognizing continued a set enhanced talked voice about to only which volume offers favorable We've increases due now. wholesale in year expected few to quarters this this product We earlier market a decline global

with early will the to up, transition are we results. fully this take While pleased time ramp

view contributor XXXX. we to as a SMS the segment Telecommunications ahead, Looking in

Operator

for next between an is appetite Molchanov from set the there company's segments telecom Is EV? James. Pavel The and questions with Raymond infrastructure splitting of

Craig Denson

time. not Thanks. I'd at this say

charging, electrical EV and and broadband projects. all Infrastructure Our wireless encompasses solar segment commercial our energy which storage and includes of lighting, businesses,

Operator

it this how acquisition Greenspeed. has XXX It general with terms, since the of days business? In new been been going has

Craig Denson

within became of taken solar done and to happy We're single efficiencies Paul integrating who I'm increasing the the pleased finding our former in with and this XX deal. Greenspeed. it's The job with execute business lot with going. EV of a the lighting has Williams, product product that XX demonstrates added EV owner from our infrastructure the the while to of EV excellent how fact lead the the our now and we've charging of value to both infrastructure Greenspeed, Charge sets, of combined team charging availability commercial business, states, EV projects I'm date. really an progress

Operator

positive in does target Thank on extent such reiterating as macro cetera? quarter To depend what adjusted first interest EBITDA you rates, for to your commitment this conditions et XXXX.

Leah Schweller

We it positive for question. for in full is with structure, but This, Thanks challenges diligently not these managed first quarter gives combined to adjusted our managing backlog. of our our cost confidence Obviously, business the every no immune us for comes challenges. the macroeconomic but deliver down year. EBITDA from really day, strong the ability to only through XXXX,

Operator

with from Chris Pierce The next question comes Needham.

hearing they How from versus dealer short-term way? curve? adoption EVs business longer-term this is Is consistently Charge's phenomenon of too You're the in customer a within any more demand. many have that community the this impacting

Craig Denson

Great the been topic. recent there has news question, regarding Yes, in automotive Chris. industry this

is EV we important ourselves sales have is a to problem. initial stance What a a a charging It on be issue. shift also this is impacting of emphasize this that OEMs, note which part EV there revenues. in we of positioned consumer view the that is want solution as consumer it diversified a as I adoption well While lack adoption. to to We remains the aggressive infrastructure, see portfolio by to short-term from

have area the other setback company. that robust in or event of the So a revenue any we our support in of business, single streams pause

Operator

focus? and We by Grampp will an market Jeff about whether on Can evaluating M&A not provide other actively you're you or opportunities update an sent questions Group. discuss given recent inward now go to Alliance in commentary the with

Craig Denson

and on is strategic our initiatives. primary Our integrating executing focus Greenspeed

when remain considering present comes M&A approach to we optimistic course, that an opportunities it Of themselves.

Operator

plans provide maturity? to address debt the you update can an there Is near-term on

Leah Schweller

XXXX. before an of fully Jeff, aggregate we on or which outstanding pay million notes, to maturity on have the track face XX, value November the $XX.X are date of

Operator

Is there that when an the both be integration. Greenspeed fully you will estimate update for Thank the integrated? for on

Leah Schweller

is underway. integration well business The

by immersed sales We track identifying QX already integration complete our internal of our goal with to are and his team fully on Paul and opportunities. XXXX. are are efficiencies and

Operator

conclude Ladies the session great a that Enterprises We wish Webcast. Quarter and will XXXX Charge Third day. question-and-answer Goodbye. Financial gentlemen, and you

Charge Enterprises (CRGEQ) 8 Nov 232023 Q3 Earnings call transcript