OESX - Earnings call transcript Q1 2021 | Orion Energy Systems, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the Orion Energy Systems Fiscal 2021 First Quarter Conference Call. At this time, all participant lines are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will be given at that time.

As a reminder, today's conference is being recorded. I would now like to turn the call over to Bill Jones. begin. may you Sir,

Bill Jones

the include as in in future I that with cause And will that Securities described plans, and These or forward-looking different include than over forward-looking Mike. Except as of forward-looking subject company anticipated. Bill call generally such good place the with CEO, Exchange has Such current to an and replay then Orion’s in release that disclaims the and company additional this review open the items. of statements to financial status words Mike? to Altschaefl press questions. today's business, And obligation CFO, risks highlights. overall call update update will other matters some will morning. you then Mike forward-looking or also some risks to open Commission. These Orion’s we will This of Hull this call believe, objectives describe Thank import. among its on could expect, archived statements the statements on An to Investor be Likewise, issued August Relations in section that of filings, are actual materially statements. similar the call Securities Reform available is be corporate Orion's questions filing these company the will any Remarks results with will its taking call XXXX. and Litigation morning meaning words to the Act website. Wednesday, described answers X, be goals statements. are within that that statements later anticipate, of and the turn of forward-looking XXXX. Private believes today follow the the include to

Mike Altschaefl

Orion our suspensions our about for thank much Thanks, and you was and momentum activity After its impacted today's reporting for to long-term in steps remarks In next project my report brief detail morning than we Bill. positioning our which very and to is customer to will our our provide pleased a financial months then our regaining over greater provide customer quickly we of our visibility ago, growth. Bill and overview results two improved or included significantly solid our due market that update are I QX release COVID-XX communication by prepared our progress detail provide anticipated the had XXXX, for last two quarters. performance, strategy, XXXX Today, position taking on substantial on Hull remarks of call. the we on our Good as XXXX position. joining anticipated you delays I'm more more QX and to business will and call. QX

work been First, an of our essential for hard remained have has I want very manufacturing commend thank again their operations team dedication the challenging what business all U.S. Having open. period. a during Orion to entire and and been designated based

been our we our believe risks because customers COVID-XX-related challenging ability we actions period, our and and address remains very relations. we have Our people, of team's suppliers. safety best-in-class products deliver data precautions concern this service. to protocols continue To date, safety and customer commitment the excellence implemented and service and to available. successful. the and our well-being to our numerous our Thus, commitment of evolve company our and on Through foundation And primary as remains to to our our procedures have more

for to QX XXXX both operating and $X.X results XXXX we million in during our related generate of improve and from the was year. $XX.X first projects expense overhead COVID-XX quarter fiscal From customer reduce temporarily of gross As we to an period. halting resulting impacted were XXXX, on to QX actions QX substantially standpoint, last Despite steps revenue took in anticipated, XXXX regulatory our the the had our compared profit to proactive we work our challenges, percentage our by customer benefited first to most These million QX the anticipation pandemic, with quarter and combined large able total an We $X revenue going Orion online EBITDA our XXXX COVID-XX to basis. to near-term also global construction impact in loss hold business the million forward. helped loss a operating of a expect about more in from our XXXX cost retailer. of $X.X the optimistic a million million operating net projects for large approximately customer very actions in from possibility were additional discipline of on revenue We ongoing business in to are and QX able this QX new $X.X on now and prospects.

Given the operating we forward of to based proud circumstances faced, on my I very now unprecedented developments the I'm our will team's our discipline. comments moving outlook call. last turn since

retrofit customers LED in As and with new planned restart projects. and refocus of or visibility their lighting for and provides particular, reviewed faster in a projects customer. rebound see today's Retrofit several our greater on and retrofit us this anticipated following: restarted our week largest the start turnkey design projects. resumption on visibility scale the improved to In than this the of have and project customer is one, LED activity on we install faster controls release, the activity than news key major begun customer. This resumption system of for installations fiscal build expected existing based on activity timing XXXX

XX, for QX XXX time. specialty XXXX, other company. with projects and expected will services facility currently XXX remaining previously Orion XXXX recently Orion our particularly with a retailer of customers be efficiency are Service this global automotive revenue initial, long-term major expected but of Four, Through deliver now with in and Orion expect fiscal product a to and Two, The we strong fiscal Ford, In commence and including commencing locations rebound stores QX in the channels has businesses opportunities customer remainder in entered customers this XXXX. stores $XXX and markets While facilities launches of logistics lighting QX XXXX. its Administration one QX are had whether see total several more we customers. and being go-to-market to to and during initial stores. anticipated completed in role fiscal selling and received to Orion of to legacy to -- Three, are Five, in is XXXX, approximately play additional significant by projects. installations Postal the retrofit are the XXXX. customer approximately Orion's all and additional source product an our Veterans in resulting driving well and new quality begin seven, Access sales provide services. as customer the for QX key, channels. proceed XXXX to in over is million. the installation commence public slowed the in for into with completed outlook of is pricing remaining distribution with turnkey customer ESCO estimated XXX March from products LED slow, had to approximately major three services construction of sector This in our XXXX Several the and products more steady a revenue of solutions one that able we contracts be will in to activity a are XXXX provided and looks new also of customers, our beginning restart provide is currently for we in QX activity reopen large a project military, seeing retrofit very expected retrofits are attractive customers general, slated complete important or at Six, of more nationwide energy added chain and And QX longstanding superior to to and as U.S. improving. to business project installations approximately new with XXX a XXXX. opportunities

conditions but seeing have impact. currently are to COVID-XX remain this cautious can as an related We improve,

on QX a QX expectations, As that QX return projects, improvement business revenue of and million QX and to improving a we to the and track now believe we are visibility other at these achieve in of revenue XXXX on along conditions Based $XX on also mentioned profitability projects to both to XXXX. result least in achieve expect of XXXX. we sequential with revenue

fluid is outlook factors and this based on of COVID-XX, our subject course, to impact the other and and on customers' decision-making. Of change their economic business impact

on at our business. confidence and manage to believe install our to based of results a provide national given customer Monitoring we tying growing expanding the our account access workflows more Solutions XXXX. in in capabilities, principally are fiscal XXXX expertise many build, fiscal of base return Importantly, for opportunities, Longer-term base based we design, the projects, strength and regions likely electrical to levels IoT to well-positioned focus hotspots our will that customer Orion remains to relationships offerings, avoid service/maintenance Control on and launching and facilities. and product on we large least This reach national our of lighting the achieved & of of various our turnkey is our

to we providing investors committed the feel business a sense how of with each We quarter. are about

normal over our let state With operations, all fully which under overview, that the perspective and return future to Hull of that financial circumstances, more our revenues the financial quarter will on that is can performance turn even more changes customers customer difficult the a me to to subject However, results. impact and Bill the on than visibility we additional for reopens Until normal providing can into timing year quarter scope economy normal. fiscal remain sudden call caution activity or fall.

Bill Hull

decreased a million, revenue and million Thank to service of in to in of XXXX. to decreased $X.X of $X.X control from and QX from including significant $XX.X you, million Mike. LED also installation QX activity revenue for to product of in delays largest resumed which million Orion's lighting due related QX to retrofit $XX.X million decreased sales million in quarter suspensions has and $XX.X services, XXXX our since and $XX revenue projects. XXXX LED and to compared customer, Product pause with decreased first decreased services

gross to gross to in QX XX.X% QX XX.X%. margin XX.X% of quarter and above First our percentage percentage XXXX margin compared increased XXXX was also of

$X.X in XXXX. service used QX to anticipated working steps basis, ramp activities reflecting in implemented share, and $X.X of quarter to net These QX a of and in proactive Orion's capital four $X.XX XXXX. benefit million of taken year. in loss, quarter Principally operating QX timely measures $X.XX COVID-XX The million decrease reflects of the On to of an full QX reduce costs company of QX QX business XXXX. revenue, was margin and in EBITDA in net as in in saw in share, the to both positive lower the gross plant $X.X year. our net Therefore, well lower of largely $X loss million products to volumes. a positively lower The XXXX, revenue $X.X volume expenses or million, of XX.X% income million, offset rest impact by manufacturing $X.X mix percentage of XXXX, per reduced a impacted of of our of for QX million QX, an investments XXXX, Our compared cash first on included per reflecting costs were that higher-end revenue, XXXX, QX million of the EBITDA Operating was by $X.X fixed compared XXXX. slowdown. and by of operating versus anticipation as was of for the prior percentage loss our or the overhead in were in support we

credit given used precaution, revolving March our $XX of to which related also cash in COVID-XX as the facility, had repay to million drawn the shutdown. a fully significant we uncertainties We

$XX.X business period. we cash year million and $XX.X XXXX. At XXXX, believe, the million Orion's versus from XX, environments equity Shareholders the $XX.X both improved at to were in lending cash have improved prior million Now, our also June and significantly. June $XX XX, the million equivalents

other also shielded federal million be will cash company Further, facility. and cash combined revolving $XX going quarter, we company. to carry-forwards future very operating financial flow state million purposes, unused with also for from $X.X net And for purposes which receipts; unused fiscal of close believe borrowing from for income available tax cash first approximately net borrowing hand our let's Operator? tax taxes In $XX forward. that, of should open call of questions. capacity basis expected of a the and had on us the strong on As a benefit the our year-end, the million capacity, We the as future. foreseeable our provide loss to with the we words, largely our base had of for

Operator

Craig question with And Certainly. the comes Capital. from our ROTH first Irwin [Operator line Instructions] of

open. is line Your

Craig Irwin

Good taking for Hi. morning my thanks and questions.

Mike Altschaefl

morning, Good Craig.

Craig Irwin

like to listed positive going but actually, you're new specifically, Mike, two So, that, hone really logistics And really several customers you the the on and in in I announcing I things on the release just wanted customer. today.

So the new the implementation Can an your XXXX, in completion several this idea done facilities if year? in sort add has in them? do a the they timeline this lead of versus on said of customer? Is or the facilities for September are fiscal times a And of second how of given roughly many we quarter. so couple us number that weeks? for And that's are an us of with could And then, completing hundreds update talking the maybe will total release how you long give in capturing start the a typically quarter of thousands? individual in that matter individual of something customer facility you you maybe facilities

Mike Altschaefl

Hello. Craig?

Craig Irwin

trying sorry. be Mike, you I'm really question? the questions. correct hear Did on politically my to

Mike Altschaefl

I made mistake frankly button, a quite did answering. good I so was sorry. already mute apologize. I my I I'm Craig. Yes. on

audience. Craig, questions. you thank I our for So your to apologize

step location-by-location of new But with is customer let substantial out last in in excited This we that, very so locations. projects along. this both their we've their their about because, bit taken for be ability a great customer about one have And they're this coming mentioned. the customer to as customer bit, about we're now excited rolling me not us. in services, particular on need this retrofits project contracts facilities or our have fiscal to we a customer. of them it's talked I place do quarter that we've is and do quite talk for be as they does products about them little In basis, little What's that a with And going couple the quarters customer constructing largest just different are of XXXX to than facilities. are

us if to services on flow to we business and/or So facilities, forward. them a just we're as either will, use for they from go choose on get as you going their basis product

second But substantial projects particularly And competitive like mentioned a and quickly. The will that on the contractual will reasons, this is these flow our your have than These And be other most these completed they through major on do It's say, America. relatively that, of of have. both are locations. a probably that of basis of locations in have, one-to-two-week-type name quickly, it's sites part we question facilities hundreds. do not Craig. I customer of that would more very we've global individual and hundreds number customer, not they much North for

most So I of Craig? you hope answers it asked questions, the

Craig Irwin

helpful. very does. definitely That's That No.

in say. the jewel of I So a, this say I congratulations, we should market, one customers big crown is believe very the because should

Mike Altschaefl

about excited very it. I'm

you. thank So

Craig Irwin

new to pretty so that mostly several of other on as There large As customer of retrofit. I number build -- specialty them, the other retrofit a the much you are the and release, years, specialty your are guess been I'm customer. retailers as have initial chunky retailer. companies, not identifying contributions or a a you in discussed over I, large the space, the build-out last

Mike Altschaefl

Yeah.

Craig Irwin

number do from or their for us, potentially opportunity the have from of year? clarify a seen customer? maybe one their customer to your you is all Can of they sites, last way if retrofit-driven this of most And this we've do plans sites

Mike Altschaefl

expect are And with with satisfied to them. most this to if retailer. they And Sure. that of out our facilities is rolling be continue would be we nation. they Yeah. a specialty It And retrofit. across performance we their successful this is a the

our footprints locations States. a are fiscal number do the of have than of the XXXX. so those customer locations in But United smaller, And footprint the sizable they of bask largest across,

Craig Irwin

anchor avoid maybe moat now here you us number that your you say that's one? provide new for customer last a your Can let's solution semi-custom serving two for customer it important something them customer you're where Do of a the to customers that question there year developed the retrofit two other customers year unique semi-custom special the that with custom – on your got call an that depreciation these you from something and new discuss let's don't you've custom that fiscal did customer would you charges have products your that allowed provided are or same, way or still them, not offer just anchor custom these that that fixtures. people whether last pretty And then, is had product for for for them same solution.

Mike Altschaefl

that are the retrofit questions both are facilities projects of of Well them. these talking today asking they for have involved their newer two Right. a we in you're about variety about and customers that in fixtures

a of of of part we newer fixture fixtures And so LED a where it. quarters it different into we couple and are seeing are however, encouraged; of for market really with success launched both good main the these is the fixtures ago of the that high bay mix we're part

wants is Craig going the is say I'm Kelvin somewhat needed of them. some standard or in So that bit product but temperature it these each situations customization a might either it be – usually there's to of other for the a modifications customer

a standard combination more so it some unique product is that And them for modifications customer. make some and of of kind to

Craig Irwin

number were well leverage, one was end into the you we a guess end as customers think year that's as Customer at facilities. year. anchor going that's on. lower. the Part point. to there come back issue last margins the the as may These of this large scale bit little this implemented on customer coming you if Are that to which question. in we is sure and that to question, a far number the something issues? this number learning are have two great be purchasing a new the I And jump was customer I one, customer like then from first little three a here. as margin of And is well, end year before front front and likely here Do I I behind of still I'm last queue. your Customer at And you bit encounter two potential

Mike Altschaefl

Yes. products to last that everything customer be year. into And we how extent would our large the were the not volume. marketplace. particular competitive the have they is Generally this about margins we had we very in to the we excited substantial and at as and even were our quarter look that of with in reduction pricing the we we competitive level is very with What I that's look that really say and did need marketplace development at

And on able of of we absorption have going that product And you a very some on our the solid such of things under so therefore The we our able combination to sell. also was that two products to we offset were had were costs. on. mix margin fixed

So first as customer. up I Craig. the ramping as look for think large our margin it on perhaps would significant I at not impact was

Craig Irwin

queue. I’ll that. hop tremendous Congratulations you on Thank Great. win. for into back this the

Mike Altschaefl

I Thanks really you for on Craig. the my missed part. – apologies questions. Thanks, the I for

Operator

Eric And question our you. Stine from comes next Thank Craig-Hallum.

is open. line Your

Eric Stine

Bill. Hi, Mike. Hi,

Mike Altschaefl

morning. Good

Eric Stine

Good morning.

environment. envision your XXXX from a a maybe view a big something – can as but to – overall fiscal mean from you I be maybe that lot so have But mix that large through. levels, nice increased you've work that your that's have end going high the contracts into it but right and when to smaller the and remaining now in you that to the just and much working you the diversified that from do but confidence more you'll been across going can pipeline, hello great level, I chunk So return you markets? I or you're customer a different of think have – fiscal and pretty that visibility to it's you one visibility from other commentary lack about customer do understand current totally XXXX – of hear customer as

Mike Altschaefl

Yes.

goal also appreciated value diversified to be Eric Our diversified and we last They're fiscal in this in year. enjoyed diversified. But We've very by and base. having have financial to more customer having customer be long-term, more customer as and us a the going a going to we're operational for likely to most a a of XXXX. fiscal more additional large benefits year understand is this great add company an or company,

on in see 'XX in drawing our the customers that that being the not XXXX. I customer on progress one 'XX we're can had some today momentum we we've or the We based and harbor do other just two levels we we've 'XX. diversity board with from the more talked we So, made things in be it we think see think a credentials similar fiscal with standpoint huge working with at on proposal of in of about and things than

Eric Stine

every And to we awards that just may case steady seems should than been able expect that big it business. the I commentary have And of contract it the rather be of it I be announce Okay. kind your based it's rather depends that you result may then, that guess the but past? but big the customer, some for today, on announcements, like not also in mean

Mike Altschaefl

at to hard time. this That's predict

think, it's be to going I a combination.

quite significant are with in a new we're far that down the talked others could forward. us And there to For today, us. we great specialty about for going more about in to that magnitude we public it's the that talking quite visibility be, both for enough but example, the the could -- give the sector what everyone the not are be -- of path retailer customer

moving need good smaller I business large some -- the to that large developing and a things to have with of and and am larger you customer. It's have customers. I great help it's customers a keep flow very a So of mixture customers group think, midsized

fiscal have us of it customers as we're forward think company. say, 'XX to Obviously, size optimistic. 'XX three have I going outsized an excited customer. of -- a year for to rather going to those would last very And was be So all we're

so, different going of will more be I forward size And think mix of Eric. this customers a

Eric Stine

pretty covered last in space the so, Maybe for it. customers no energy maybe value ESCO ESCO seeing appealing right Got budgets consistent now. going what one forward? proposition you the space played the that that Is hearing that to think something companies other has cost just in at think And that positive me, some have is now? into be from is upfront savings be or challenged that you're a something you of could that would

Mike Altschaefl

what The are rebates continue public through incentives companies and other be for other entities and favorable to doing. utility we

And rebate certainly demonstrate from standpoint dollars, having I good. would aspect the them get entities, have And the Those impact. energy investment, but it economic an no to costs, been on the we helps could public see a in footprint really expect one customers think reducing return changes. and things as work year those that continue things currently by well those with fits we nice of front-end looked it's positively those each so, at that still And carbon in probably with future. reducing

great area have significant play And very area. that -- in for strong a us. been So and -- base ESCO's ESCOs that's that customer and

is opinion energy also markets and So to large amount financing I available projects marketplace play from the to think for in be positively having my going that out continues those just secondly there then the such. of not rebates through yes, there. adequate financial general that's availabilities And

To And so allocate to capital just of of access projects facilities kind And is the there. decisions near-term us, more the more encouraged the their impacting then capital which it's situation a to to we're is companies the out by. business. of making lastly,

Eric Stine

Okay. Thanks. That’s great.

Mike Altschaefl

you, Thank Eric.

Operator

Thank Wainwright. next H.C. Dayal the line question from you. comes Amit of And our with

Your is open. line

Amit Dayal

Good Good Mike. Bill. morning, you. Thank morning,

Mike Altschaefl

Amit. good Hey morning

Bill Hull

Good morning Amit.

Amit Dayal

stores are XXX -- these you from deployed? remaining fully stores recognize that are How they clarify much once customer? account XXX you Could expect with Mike please national your the to do

Mike Altschaefl

I did we Well, might March what way at indicated $XXX had last of then through this fiscal could -- million. cumulatively probably you we it XXX and look where had think be revenues the done XXXX reasons we quarter, look to the of quarter again XX, locations and one

from you I there expect that average customers. out in and that base saying are what so many So, locations gives one of would you direction probably of point feel that of a since things might

could that look the And so there end XXXX. we what stores for with the stores do quarters. 'XX of $XXX million during QX might next fiscal couple the to that expect remaining of at and during of you be And XXX

Amit Dayal

Understood.

So I it. similar got proportion.

Mike Altschaefl

Yes.

Amit Dayal

levels. the term? some improvements, front mid sort up lower margin of stay in the you wanted for the you're pick of sort On be near volumes see approaching we or if XX% see looking levels with for Even with just volumes to should could margin to these current at

Bill Hull

Bill. is this Amit

about quarter have revenue higher-end service us went out. think So some of we helped -- Right at our XX.X%. or that just fiscal now costs were margin the I we that We lower look had 'XX this think had at if would margin margin it, way decent pretty I for really lower sales. a service I product $XX.X quarter about closed million fourth we you at recently take that a would lower in say

So as better let's it could as we think we about but term the pick do kick up this of I'd where kind I Hopefully near would and think -- say. up business, now. little a for there that right than other that's about of some of bit

more always back. improve is And to our people we're bringing take out. goal try it course Of to cost

year pretty everything but So you efficient could start last have up some with going we inefficiencies as got we on. back

Amit Dayal

Understood.

you opportunities? deployment on know these respect being how new as those color I products considered one Just lighting in inducing of et bacteria-related to thinking these there cetera. Is some in's a you're helpful? Are any me. about final for are And new one play? With the talked had part about still be offerings new would

Mike Altschaefl

we're they working the technology last bacteria -- as last discussed attacks we release in an play we've Amit a on for we've light violet existing press call in on of years. had several that No our a call Yes. are and had that in still that certainly the much couple is marketplace

so for And we that to had product and Troffer and product in continue respect LDR-E to that or work our retrofit product seen that improve we have activity with with applications. product good

the kind So of product. of violet type side light that's one at that on XXX-nanometer

Secondly media many a and discussion lot in of ultraviolet many, been breaking and to down which used. years attacking and has use certainly news there's viruses that for light viruses for for been and been disinfecting has related

That at new looking us. are that. for is we so And

are it. We exploring

We partner at product that can work into with from perhaps a calendar have conjunction us those year later said And on. we we're air product the hopefully for introducing standpoint. together that things movement product working a with come in in some

we and we to well high our those say think area very out are are product two and I respect niche the been to would products. that at both continue that we to our with with to with base customer -- on new continuing then with respect offerings. products we've rolled type that Both we out lights pleased to look particular more to we bacteria the viruses. those So in developing lastly look those do work And received. bays other rolling And be very more standard just have going some are keep

being to the so but the industry. continue, baseline our will think And and niches our go will keep in continue also to competitive I product we

Amit Dayal

I have. so much That’s Understood. guys. Thank all you

Mike Altschaefl

Amit. you Thank

Operator

you. with our Marc next Wiesenberger question And Thank Riley. B. from comes

is open. Your line

Marc Wiesenberger

morning. Good you. Thank

factors provide account activity to restarting some With insight all? them retrench your prompted restart? at might anticipated than maybe you project earlier national And the major factors the into what for if retrofit what cause can

Mike Altschaefl

midstream we the with the just protocols that our March needed year had But sooner you I COVID-XX. -- would safety respect were they that discussed the we Sure. we for and it -- implementing previously I think was than to is understanding. We to is things. what related our couple a decided and is they that to previously of tell abruptly anticipated reason is as understanding with that judgment in decision. that was we the when customer first middle think of their of believe was in this it Well our project stop And

in customer, I for in very this think particular XX%, a energy number payback place one where customer. have retrofits for effective the over reducing very taken of costs nice locations this resulting has project the this energy been

started I savings longer again they So you those because wait, savings the that would flowing, is one the earlier that to the more get reasons you assume were of lose.

going around to for to there's COVID-XX I really out finding business a and and with realization second is And is with. keep a perhaps also we business to think more while I balanced the to impacts, it's that -- there's have therefore, while a there's going a be and is quantitative think is one judgmental protocols keep to I standpoint important -- frustrating deal there moving. say I'm this think that a good and from qualitative

got perhaps thought, a for, than or of under us some ago. time be But, projects, it of think got may to And just period so, two our restrictions on people to stuff. cetera. for of people I saying to some all is three part working we start much months got We careful longer these even be We many of moving et and safe. be we

you you so, got some that's face also just things and have bumps And opinion you my that to way stops, the to keep directionally of might think fact that's along going part I moving starts forward keep we're forward. and have but to but, the moving got as to some and it

Marc Wiesenberger

job that those forward? along sites? on And needed changes lines, potentially you gross that going implemented how And to to margin the any are talk Understood. would be services going can about impact be

Mike Altschaefl

on site, implemented more Yeah. our likewise facilities assembly our members people with question, and them. and to your responsive of yeah, need of have. then safety protocols a we area that in fabrication that the combination the safety own But have place facilities, level different for things, we've to work terms increase customers both to many have in within to for protocols how to our be of to Certainly, we put our our provide protocols our in access we our we

of don't estimate this those right And you to impact safety have to have on point those as have time point, the then that the put and But being It's now at we time, will that that at and we restrictive to hard Those so, probably additional certainly cost. also. of protocols protocols and in a of some completely some are we go operating local on more with standpoint in this will efficiency. some tell in see But protocols margin have of impact place. as it from we material either happens. going what place to

perhaps back we before in a we customer be stopping where it putting cost break us are kind the than an of there is start up the week, up the take for again. perhaps, starting is at and probably If day-to-day stopping. site the place. to and is to more need protocols a going incident increased location But, we starting to I says a think more

Marc Wiesenberger

securing translate projects? Got of context large you. to the about you sales lines your into And Thank new associated along can the on kind potentially construction business, these it. making then of revamped new relative have team business? And push construction the into dynamics types projects the with the retrofit a talk bigger the national to

Mike Altschaefl

an new say combination. It's their our to new into of would or division. example, segment in through through ESCO they -- being services do are as is ODS into is U.S. And new that into initial national doing fact, a also our going XXXX, accounts markets for us I accessible as are we installation are also locations, fiscal when for our segment large additional It considered new Orion largely distribution those customers our facilities. through well the as for have customer as really our fixtures locations. expanding is construction that construction business very from -- partly we

many work in retrofit coming those new architects is somewhat tend more new the and with of engineers, In both it a So, construction construction. a through because the and longer would process. of to cases, and up process comes defined side, both up distribution through

end less is direct there it's And particularly, on Toyota ESCO distribution construction, our of with a the the happen example national be user can through to usual lot our has but our also business or with little facilities. new of for it a side us So when an up side, it accounts. comes

retrofits, work construction the have We also they on a building support to them where new are but new we with provide to facility opportunity them. continue to

Operator

next question comes from the ROTH Craig And with Thank Capital. you. Irwin of line our

line open. Your is

Craig Irwin

Thank you. Mike just as a follow-up.

a So it from cost purchasing fixtures, frictional the Tier It And -- X lot fixtures whether but the simplifies of these costs or customers It buying all not Would potential to tend is one for into in you your high adjacent these there likely customers be directly? not And new you for something that offered specifically be supply from accountability. the like capturing vendor. simpler for them. you that products this need diversify strength bays. potentially a to third-party for where describe other makes from days to needed, not markets. may that could you're or just be maybe can their introduce manage opportunity lowers or more us would away is

Mike Altschaefl

Yes. great question. That's a

grid, product of retrofit ceiling also is product our and our our Troffer ceilings. areas in bay lot protect product the have the where And then you from food processing marketplace in a our high ceiling environment. to other sealed certainly which used all, strength agriculture, First in has for been drop

kind our of would a had right and are And array probably the main nice of three as products we those So past we've in that now. three put area product lines. expanding

situations place we it locate I are doing industrial good do kind fit unusual, the projects. as is a other providers niche portion capabilities to then the different in to we'll capabilities group for or for of things for of commercial that current in Number of what's they're light where customers to your that Would place most sourcing opportunities benefit -- ways. something and certain that them. going Craig, the not secondly that of where to on be customer in with design one the have the fill question in currently cases may handle many contacts have. that's place to you a And something we a volume answer think, fit us third-party to have lines to type of we manufacturing and or the And there's said specific cover. a to a want gap answer design we are open and to And and have in of substantial we may So of we've needs to. fixture what need great or always there certain products do the because substantial one developing make it's customers. strip plenty for into if able or kind a And find and are very specific product to the that need we've had two got there to

where very, forward. combination continue And very We footprint that's having us to think it then with going for and a linked makes manufacturing the to U.S.-based think continue is going great that's sourcing sense internationally efficient. product we

Craig Irwin

question. Excellent. then And another

to either them customers on from customer anchor year? the maybe these saw last fiscal lighting call this to annual of exceeds a about talking potential than new a similar we're two last of from you year total that them have have of one your anchor either does So bit customer buy your the that potentially be or larger what

Mike Altschaefl

Craig, buy annual that them. logistics going I supplier specific about we global if to to but that to major continue talked and perform that and not that valued of we've company very on lighting facilities believe I'm be plans our customer, say overly from future understanding continue their the and get be would we substantial to of a could that

I in kind So of could category. be that would that that put one

Operator

the Altschaefl back other time. this And Mike not turn questions to would I remarks. like any you. showing now I'm for call closing at Thank to

Mike Altschaefl

us Sidney. in to severe QX shutdowns the to you, team hard in work shape Orion the great limited forward. left the during most Again, like I to COVID-XX and for going excellence Thank have thank operational would dedication, losses and return our that profitability

very a COVID-XX interruption momentum. temporary progress, has our been I'm Orion situation is its the into confident that regaining While

September, Thank do H.C. participate physical early of Conference distancing including with conferences mid-September QX visit IR for traveler our on you again great the included face-to-face potential is in updating have The been join contact in November. During Select or Wainwright virtual investors, constraints, a and current period in our LD us today. our Micro a these to events and and We for with release. call with forward and November. contact investors Craig-Hallum's intend other in management. Alpha unable your schedule upcoming call several to XXXX or but fiscal press team Please in questions look shareholders Thanks we've we time IR today's information in to day.

Operator

Thank you your Ladies today's conference and for participation. this gentlemen, call. concludes

may You now disconnect.

Orion Energy Systems (OESX) 5 Aug 202021 Q1 Earnings call transcript