OESX - Earnings call transcript Q2 2021 | Orion Energy Systems, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the Orion Energy Systems Fiscal 2021 Second Quarter Conference Call. [Operator instructions] As a reminder, today's conference is being recorded. I would now like to turn the conference over to Mr. Bill Jones. Sir, you may begin.

Bill Jones

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

Mike Altschaefl

you and call. for morning, today's Good Bill. thank Thanks, joining

Per our working retirement President. some with will today Bill's to and a call last Our Vice Executive senior call in our Brodin, our outlook, then our following followed management Also us call opening with will after smooth transition. Per become and order finance ensure Orion to financial our Bill, and new on today. providing month closely He joined follow on is today by leadership review joining the normal been Bill's format the quarter questions. our your me CFO overview our has team commentary and

substantially our impact first over results delays. fiscal to during second While quarter, impacted quarter, our COVID-XX-related the some have delays significantly COVID-XX-related by continue we which was from improved XXXX

in $XX.X $XX.X million revenue million rose QX. to Our QX versus

impacts. achieved were revenue Our due below in COVID-XX-related to the million record QX year-ago period, 'XX principally the $XX.X of results

largest the retrofit work a including for of our early quarter LED customers, recommenced second from benefited that project on national activity retrofit the turnkey customer. with The lighting in resumption particularly August

compared the introductions managing benefited the improved quarter and Orion in quarter in both to product to as and from assembly as new manufacturing discipline, of operating quarter we product our efforts of achieve costs, and In fixed cost costs. enabled management well including proactive an and percentage year-ago particular, profit second gross our Importantly, higher sourcing year. absorption mix this first the

in today. in line we to apparent team net our rebound rapid regard our operating bottom business second results was net of was the include new return $XXX,XXX, quarter of revenue, quarter Our second restructuring strong activity compared comparable very million some onetime in very benefited did about or profitability per quarter. of including business Of the Orion net performance a second $X.XX operating business March factors the the significance share had line and steps to loss loss COVID-XX year, near-term that which a for both second our greater about from costs. per million occurred quarter first lower these remains $XXX,XXX achieving quickly the which, mode income $X.XX $X.X results Orion's this contain top of able as taken share to to when our perspective is proud maintaining in also of I'm also anticipation in compared $X.X on fiscal costs XXXX prospects. from quarter, a and costs growth in the discipline. Collectively, Orion to prior impact on in enabled roughly of to very in a or to while compared of QX Orion's to success pivot back

controls three projects existing from channels. We LED customers and are seeing in interest all and in a stronger-than-expected activity rebound our and of in new lighting

pricing. illumination and from are focused very We competitive on traction introductions product efficiency new strong also industry-leading recent are seeing delivering that at very energy

by encouraged construction speed around projects. of are energy-efficient and change retrofit breadth the new customer in LED the and lighting sentiment We

are unprecedented next proposals XX for for project to projects the LED XX targeted lighting demand for experiencing We months.

growing we their While is it cause are are capabilities, back particularly that is hearing, Orion unrivaled sales difficult improved and virtue increasing project to what opportunities of drive posture efficiency to in and they of nationwide are success. with activity, proving in operating with customers, our track build a facilities. successful our from project on is developing large in know the large install to design, moving and expanded precise a combined reach the business-as-usual ways of safety turnkey, by new focused our record effort,

revenue Additionally, companies as capital Reflecting budgets LED disruptions, strong of of QX has funds. fiscal and least interest business projects lighting these activity, our our for and both 'XX combined We pipeline and revenue at customer considering improved. of are $XXX unspent million least anticipate project at a anticipated we annual efficiency QX development outlook result discovering 'XX COVID-XX million. in each and many work now work, XXXX quarter of very are with that $XX have significant energy

and both for also profitable the expect be to the fourth XXXX. full and We year quarters third in of fiscal

financial Finally, fiscal fiscal should delivered XXXX achieve those expect least at to results we in that in XXXX. match continue to

anticipate demand on and public online customers in lighting into efficiency fiscal a that range over with during outlined existing to we release, from of large fourth U.S. summarize. QX begin the and product expected in sector for well expect Five, including the business revenue payback balance stores, XXXX, Our anticipate will quality controls in fiscal more To are of is specialty we companies is our LED fiscal at $XX retailer's XXXX. of generate outlook XXXX we ROI attractive relationship expected second a with long-standing million and -- continued growing see XXXX; the a and the from fiscal as of is of revenue potential the anticipated on Postal One, greater seem cost-saving in in all continued as an and new four, customer of least in number revenue first improved activity periods; from XXXX short $X phase across million public in of the pursuing as project fiscal product retail opportunities which in with from XXXX the based a source and we provider also markets, from projects and quarters continued turnkey continue Administration military, global 'XX for major for which today's logistics, of and deliver strong national relatively across a project customer solutions a the million fiscal approximately Service; fiscal $X growing significant revenue million customer channels, third including retailer's a nationwide Veterans lighting to of revenue total time; several markets, engaged three, global customers, half pricing. seven, factors we revenue XXXX; projects large $XX retrofit to strength medical of very a superior approximately chain manufacturing, energy this two, logistics to facilities. service of from future U.S. designed in retail, at sector of this date, generated and expect revenue be and I the has products approximately solid expected activity we and six,

improving call. supports in activity we making summary, reception Our channel on customer Orion our for are this progress products seeing the faster good early efforts had we channel, new business, our we view; and eight, business quarterly are Maintenance opportunities and these strong to last In create building Services anticipated revenue expect and fourth soon. our than

access of remains Of to product service critical to course, customer our pace revenue. and facilities and volume

We dramatic affect have of to our a our operations performance or rebound facilities. or activity COVID-XX in an our remains outbreak seen should caution customers a their threat that but those

a ramping up as and maintenance. and projects, install thank and to changing This is of personnel strict rapidly expenses concern environment. increasing Orion Again, customers We control to proving of close as safety business reversing successful. levels ramping base and their meet offerings fiscal at that people, products, well now the challenging for remains proposals. in XXXX. Through safety down rapidly After have demand COVID-XX precautions partners. we period, this entire revenue product developed are course I dedication expanding The continue the our of remains and are to monitoring results strength opportunities and the protocols for year to fiscal based and believe during customer our various and XXXX, our we risks this positioned work design, XXXX for to and capabilities, address our primary and and of and well-being IoT our lighting implemented and projects our our achieved our the service electrical hard new build, view on fiscal turnkey offerings in Orion solutions team return well

are COVID-XX maintain material financial Hull We experiencing over currently are and turn Bill? Bill that for With working from impacts hard our no results. on to call additional this our let to the me overview, to result. perspective business

Bill Hull

projects due March, $XX.X million account. this in a second in two to August. in early from $X in $XX.X QX After in The to Reflecting projects million XXXX. revenue quarter decreased able mainly factors, 'XX LED million quarters delaying response 'XX for revenue and $XX.X 'XX, to Mike. million. their second year-over-year quarter national Orion's significant in retrofit QX service first we is year-ago QX propelled activity major fiscal product million The for $XX.X million resume customers was was of $XX.X compared were Thank to halting revenue from COVID-XX of the you, to million declined as during work these customer by variance to $XX.X 'XX. QX and of of

primarily as Second the improved products. in in mitigation plant and of of as and to XX.X% quarter QX component product well 'XX, versus procurement XX.X% efficiencies cost and profit costs introductions, to new design gross the percentage manufacturing due new

or as to due reduced in achieved QX sequential in in from to gross Reflecting of in basis per million million diluted some implemented QX to expenses, QX lower efficiencies as diluted XXX points lower 'XX well 'XX income fixed volumes compared 'XX. were to commissions factors well $X.X to in the share revenue of of 'XX and $X.X in XX.X% to net $X.X Our expenses QX improved million outset compared some 'XX also on of QX 'XX achieved net $X.XX pandemic. QX of share the of $X.X percentage of as reported of on or above on efforts million lower a cost-containment basis $X.X X.X% million noted income of by as $X.XX due QX EBITDA the Operating revenue. versus Orion was higher 'XX. per $X.X million profit at

XXXX. our the cash for shield period. approximately carryforwards million loss borrowing financial income Company the $XX.X coming for and QX provide versus in large September million federal a believe September ended facility with at purposes million capital for compared strong tax $X.X drawn XX, second quarter to September generation, base $XX.X million taxes our position combined its the state should in tax in tax had $XX We at Orion million revolving million continue $XX its provide That $XX.X for solid were cash cash including Orion's periods. million to Our purposes. from a We XXXX, $X.X year XXXX. equity improved growth credit $XX.X capacity, close 'XX, net capital trajectory. future with of financial million prior a working the at in expected XX, million, working to of equivalents, of and $XX.X Shareholders' cash XX, and on At outstanding

and call Now you whom to call I've like with had turn I on today's meet to back during the before with my to to would with speak pleasure tenure I Orion. at of Mike, the those thank

I Mike Orion from call with my my our last will mentioned this As investors. today, earlier, be at role retiring Mike? making conference after

Mike Altschaefl

his also Orion like would contributions and last for has to to I Bill profitability. to back guide Orion the Bill over Thanks. five many in to years. helping been instrumental growth thank significant

experience leadership is Bill today's participating Brodin and public call. Orion. CFO Per financial, As succeed on brings will mentioned our as CFO to Per company substantial and earlier,

Per. So welcome to Orion,

Per Brodin

our of Mike. enabled you, with it him will Q&A to progress forward been Orion camaraderie what join appreciate I the operator, forward and look opportunity, look to that is contributing Bill the about conclude Orion at by past you and honor transition the levels. just to weeks. team to Thank that the with saying this substantial I solid to I the the to executive particularly an can proceed time, on think that And working updating to impressed building has and at an all work opportunity period. with relationships and that, has I team over the exciting our very with with and we orderly future to few exciting developed quality, and want I I've say Orion I dedication market investors. calls.

Operator

Instructions]. [Operator

comes Our of line Craig Irwin first Partners. from ROTH question the from Capital

Craig Irwin

Congratulations strong this quarter, on impressive earnings the results.

So variance margins biggest were my versus it the gross looks like model.

you in your margin traction little material some guys How improving the Can and the items bit with You the we the going about continued a bottom getting Will potential continue rise side? called over there, out way should the think are gross other remarks? these we and clearly see all line. leverage maybe prepared that quarters? sourcing of you for talk about next on to the more utilization few to it's

Mike Altschaefl

to cover bit things add But really increase were we in And going more do additional I'll a we and our a you. of quarter. certainly revenue our some absorbing Sure. to of and quarter we were are may pleased through going variety forward I'm helps some with amount your opportunities answer second that see detail. when it more question, with volumes. gross what caused revenue this for four maybe we And of going we somewhat, costs. Great volume not for Craig. to through have additional by three with One, we of part were leverage going say facility little pleased. the margins margin factors. our but with expect surprised, higher quarter Bill manufacturing operations, in significant manufacturing a question, fixed Thank it's

during can We a saw product we cost designed, of have chain our looking our them last a to design of always products history months efficient as also, the from an very great have margins some able the efficient we the really in And standpoint, making as sure introduced And as helped which company, facilities. we standpoint supply way the been to well also improvements efficiencies quarter, and some long they've reductions, and doing over that a hard at those we've product. and whatever we're margin. standpoint, this for we of from well six installation energy think are customers our got because

a say, we XX%-plus margins have So was had Bill, really I that the getting continue the to several path to helped coming to in it like factors lastly, we together higher-volume back we would experienced boost margin. when anything quarters. those to see And past that you'd add?

Bill Hull

No.

I think that really does cover it well.

of the a just lot would is when I that map on to I out think have one add, going of Craig, time. how costs we're we take take a road the of project, we times a

map, margin those. out a -- up, So have to to line mentioned. Mike we work right? with we start hit a there, just might time things so road all all a have get we it's that we'll And it's the really whether and We want

Craig Irwin

Great.

us visibility. the $XX mean, this buildup visibility about the So I be point. March have and great million-plus to my going excited for guys That's of fiscal that December to are revenue that quarters. question like really at is the next you you gave

$XX -- discuss Your see upside a standpoint, comes what weeks press release, maybe see major discrete can to retailer clearly just if million proportionate watching a up helpful that together. to how about over items for that improvement build ago, there little what the in a should you this we is us from we number? home how to But be to potential And two number? there's

Mike Altschaefl

to quarters. pleased to were little we visibility all, a be of first next able the give to Well, two more Sure.

kind we situation. said now have front I we've it's for that do little our I this the just project projects the at talked this going see remember, about. we far think that demonstrated on either with give but so internally didn't confidence $XX a impacts, to million right Normally, the us or scheduled that be COVID-XX given the number doing over customers, quarter-by-quarter million. and we to frankly, numbers getting been exceeding of we've being bit least year us that hitting biggest need repeat early. fiscal we also had And you activity the $XX QX risk As the and would of our unusual probably we just by the And line end,

think we've at that sites many out and track of do I be dollar Craig, think with combination starting things have. our the I've the that from buildup laid of during know project it, the of largest I mentioned is remainder, expect kind press we in that our can numbers So understand And amount to customers today, the June we're specific so about where could of some that release half. you second that, we back today. how a more people The the

more off much significantly specialty the retailer. kicking the are project We for

some we've of it's the up that of of in side electrical of Our see Vegas introduced. strong Las project variety year kicking And and of our the we this we've through the particularly new is our and quarter. kicking really and a in. relationship product also to so and business QX, be a -- with QX contractors during relationships some expect some probably automotive And the picking off announced things. ESCOs, of business usually newer finally, earlier distribution We this with VA then Hospital

said seeing we a it's in to the kind off. and want and restate press projects things proposals kicking are in of seen business on bidding we today time and have strongest the for the activity So release, just that request of what across long board. I really And very

been it's all So very encouraging.

quarters. about we So the feel two that's next why confident

Craig Irwin

people the roughly a doing many I your about facilities peak there's out maybe if back in talk level a you may, business the for look before installations, looking were installs you services you a should of we queue. question, does week then seems and How in peak. over or last the sort last how or bit weekly few guys to Can like Wisconsin And bigger surge, quarter? might backwards, there that weekly that then execute ability a chatter And It couple Great. a little hop have I if installation potential demand of hired capacity materialize? lighting that add on at of into dozen capacity the months. potential

Mike Altschaefl

Great Sure. question.

with have past, the week maintain mentioned XX So ramp start sites that the we're sites to extended standpoint. we XX sites of done kind period let times customer, to again me XX to for have on of large in start I'll retail We've able of time. and our an that per type

of And kind of that probably we'll those of that not asked we holidays are and there on-site fall, so project. this point be we are certain some through at given retail during there times at nature Certainly, now peaks completion their the to much as business. the at times the be are

little the of to understand purposefully got about Secondly, at somewhere million look could XXX each sites still revenue, talked bit large as to site. retailer last a the people other us. important and but different provided quarter, the our information to so we specialty magnitude around the than project as very differently very of we $X and It's

see And able footprints so done larger very project of a And to last retrofit days basis is be one or the sites. might will two far, of only there, quantities typically well. weekly projects on those to the sites the going because even we

along situations sites perhaps might, rest we could of So, at be could those between -- XX in have customers, large be business. of of two our those in times, week just more, together, all we with our put where -- a kind we to

had we've on some a had internally the the for up But as the We've activity our significantly you assembly field. installations, oversee in our that ramp both operation. manufacturing, to from So other numbers. sourcing, going people -- field mentioned oversee importantly, activity, is

So to get a always up it's been and great lot back fun. of larger. things It's build

both number in the execution in assembly as standpoint of hires reason internally we've the had that's so from field. well And the as a for an

Operator

We line Joshi have another of H.C. from Sameer the question from Wainwright.

Sameer Joshi

follow-up on question first of about. was sort what is asking my a Craig So

have have? you few expenses In visibility above over we should of because working terms you already quarters of these large what operating resource expect capital accounts, and the next over allocation, improvements because and

Bill Hull

it Well, this if answer so -- let way, got me I that.

things capital see, fairly going Basically, as get to and quick to that So cash to ramped turn pretty into we and going working to are million. quarter, could turn you last quick. it's $XX the up receivables inventory,

forecast So receivables I good for think we we're the will pretty levels right there out now. at revenue. The grow put at

operating of at As a say when -- those ran expenses, can levels. look we would we far last as I kind take year

I where should about a proxy be that we'll be. think for good

Sameer Joshi

may Okay. see we of And the question so Because one implemented, COVID, of you to have expecting make the there. and light on cost reductions reasons which in some that level permanent. cost for were certain improvements the possible that was be -- to

Mike Altschaefl

Yes.

the prospects, think, felt we've back is think the very were that a thinks are as we based. been And have that be Sameer, that were it deep well. end I times lot one our caused is one cost activity because -- that how rapid actions the significant business at into is very, which unexpectedly be now any few or ramp we of those by permanent volume, a time, back long would took going we doing verticals pleased everyone at or at I it portion with our reductions, said that great that saying in we we customer more to knew don't situation should in COVID-XX. no think somewhat of the and because expectedly I March up point, at the ties look turnaround necessary

so And people had to ramp that. our we've understandably cover to back

those costs. of from one you But that have slowly time. look back don't little add up, you a more cut coming kind over might see benefit reductions at maybe be that in think whenever permanent So to because could there some you should I back, being as some significant

Sameer Joshi

logistics not at the revenues -- seems the which to talked quarter. calculation, of And visibility it per you two one quarters, By there's revenue then on just basis, million? Understood. buildup of next million company, least. getting the project-by-project a global your million there. about It's around $X that layering then $XX $X the We $X are assumption much my million that for Is that more.

Mike Altschaefl

more were Well, for have able we said pleased two earlier have to we given everybody provide pipeline, next visibility quarters expect bit what the we on happened. to be little in a what to the we

to so all think been kind And on going is relationship still out it's it's to specialty a spell successful us substantial far, of to This new we in seeing I the it and on company sizable as that forward. be up. developing. couple set and the retail going very than project predict. harder you our and logistics and impact it's It's going one still is have the mentioned are where for And people. of a customer with we've to global going very for ramp be project, is project, retailer we large by different it think of our times, locations, industry a number it's revenues

So when of the lay out to our look we we next into account take in quarters, we're million at at it. two $XX least expectation when trying that

there. given still tell a what relationship. in, to how the work a it's so much well lot it going that's saying we've opportunity to one But been is is more potential of little from can see I bit generate frankly, hindsight, that that far we on going in the and think I be of So facilities people we

Operator

Craig-Hallum. another We from the of Stine question do line from Eric have

Aaron Spychalla

Yes. retirement Eric. on It's on the as on Bill, quarter. Aaron for congrats Congrats well. Spychalla the And

Aaron Spychalla

these the how opportunities lot the national impact getting And side, are First question a penetration the trending, little for a me. at you you're bit at at size look you just about the where a of you been the kind market? feel better that, there? then the hires of sales maybe how from as on of Can a account just anything of in -- accounts. more kind funnel recent it's the talk lot standpoint, look And more just on broadly of of that are a you then

Mike Altschaefl

about our good worked invited right it's very fact large that for combination but of table we feel now national accounts larger we I national We the being a -- think and have for to opportunities, of it's asked the XX think years. Sure. account with position

we But some a provide So as in talent demonstration we with them of and a May got down at. there's through time some with where long sales obviously, in budget Number cycles back recently, great out lot larger brought added out last little ago, executive time. success organization, bit capabilities cycle significant had past. been us few experienced they of kind a of slowed to two, seeing prior we've people off of a have see and changed as was our accounts somewhat years we for continue also the companies pay year say executives extremely some in are that the to standpoint. But over some a sales are things I our we our and get starting did -- sales contribution when would who more from by probably additional there been standpoint COVID-XX their to the success sales with that some onboard takes of that a the and that relationships from from production reengage a good contacts some with very and there.

great So it's mixture. a

playing much market internally I've place plenty number that of retrofit about extremely have we role, because is and market storage, I customers there share, to them, that there said add continue our about more We retail, of project activity are amount feeling And getting just either fact so of perform very grow a and So across there doing really favorable North LED those to the a big. for substantially looks verticals us times, for and care the We I don't so that we're fortunately, take of is big-box market logistics, some what the invited talk well, do business frequently. take penetration we're are bigger seeing so we that where very future. to is is verticals migrating we're in and externally. to the well, have size extremely this just still distribution market better is cold construction activity -- big. chosen table really we substantial magnitude believe and also of like standpoint, the we new that seeing very, us. to bigger to or America well. we're out The growing would centers, there And needs the feel a the From

of combination expertise in to are and helpful fact our on a and is very spending they that those areas expansions money So they're therefore, us. busy, the

Aaron Spychalla

All then just that. the seeing, activities talked right. you things and about And you're that strength like RFP

also level I kind little more years Can come provide costs down? ROI But seen of just a of where how those period. and as you a few over we've on just kind and mentioned project. and of bit know varies -- again, color You last kind the payback high are from it by trended they've

Mike Altschaefl

Yes.

off that being capabilities apples-to-apples. more dimming et which fluorescent can a going or when company significantly. LED reduction, XX% go there, to generally, one so are with the a migrates and energy to about you see that is then often no go from When up that lights employed technology, combine for occupancy they technology So even control just cetera, technology, is XX%

paybacks working paybacks big-box projects our I on retail period. in say one- the previously two large customer, in So we we I've years our very retailer, there see to that most broadly the on on, mentioned are underneath have been that four-year situations. would

are they very very, And so fast.

initiatives, believe, funded top the because as reductions have as with towards movement et the And being be additional tend reduction, list carbon as of meeting cetera. well of so why footprint companies our green to we towards payback that company a capital of and energy projects the available from quick other objectives that's of the

pre-fluorescent double very is at very you the imagine, fluorescent if still almost it's very, So technology, at as enticing. not strong. already technologies, again and if somebody can they're And numbers become

there finance companies We that also plenty activities. out there's capital of see want that these for to

companies the the constraining. the capital see have be when capital the is strong. that the projects, are And It's and as can when to so being there very they're we don't ready or found projects, paybacks more on move really

Aaron Spychalla

Sure.

last me. then And Okay. question for

of little product about a kind those. of the initiatives bit launch talked and the You

around Just things and products of and that? any kind like the UV other update COVID viruses and on the products

Mike Altschaefl

Sure. the side I'll on start UV front. just

are is progress or part And suspended couple we making on an the air last along that products. we be UV type working or movement that a about trough on, project front. that the with being product that installed is product UV will of ceiling which We the quarters, talked primary of are

air So in environment, room environment, with in through. environment, commercial treated as it's both office UV school can a your also air that move going hospital being that is but

that. is of one working we've standpoint, having that We're them, close. product from are working with we on partners in to our getting Testing worked we with this the this with We're So continuing. on be working manufacturing and a market. expect

quarter We fiscal our of expect 'XX. during fourth

are we lighting be that going very come UV to on could into aspects working that's of and So other interesting, play. we think

We spectrum the attack XXX in its area, is for technology you the technology allows light, violet continue years, a of we've to the which usage. had which to through and light in bacteria have that

product, about the for increased towards there. in area and we've other that then so high-margin products. things So niche still that we mentioned And activity encouraged moving we're seen previously additional

continue other things and the side investigate to horticultural in areas. some We

see in of 'XX, So with some coming out we some fourth fiscal sorry, -- probably first quarter other quarter particular, UV along I'm products.

Operator

of the question from have from [Operator B. instructions] Wiesenberger another Securities. do Marc Riley We line

Marc Wiesenberger

Bill, upcoming the retirement. Congrats, on

Are they you compare about specifications? the for facilities. You talk type now? basis. had, they could to do you I'm in say largest have you of logistics Maybe project-by-project have lead if upcoming have you wondering guys your work? job at about the you coming to of national facilities global for terms kind uniform do what times size on a their expect relative national company this how of would And talked in terms and right of customer -- work size

Mike Altschaefl

the -- broadly up a might size Thanks. across Sure. America, XX,XXX it large square range they square and from feet-plus. It's number significant. North They I'm quite have to range of -- going X million is their might say very facilities, facilities feet to

vary. quite therefore, be the going can lead different. you to And asked time, about, as also So they're very,

projects could to there's and be weeks, move that of a together be smaller could a more in the might a project, and activity if might couple to or little forward could they're goes five comes period a longer want move which to Some a that ready go of takes months. very tenant of tenant turnover more they upgrade perhaps but that -- LED. very quickly being quickly. and time, or four the And a generally, a It in a much project little implemented take larger into planning, of facility

have lot we kind opportunity many, of there we are a so that have what facilities so keep, they because many be converted So to still and over LED as to technology. many being see that of it

a want and is As challenging of work spec'd at worked that kind I've they to to when a -- to visibility said it's of do the these in provide gets what we're to a in little people projects, trying few pace them. times, with on

So we the are, earlier to for will they say XXX,XXX time to of last square feet. footprints going retail compared to longer large conversions time and through the couple customer's around years a next it, talked grow last we need period will significantly all given kind still your I do. think call just comment, box it's over so of a I'll of

be than probably a -- larger going themselves. from to these project are size standpoint many of So these that

Marc Wiesenberger

That's hear. great to

going the and your COVID new and potentially customers to of you of resurgence than kind with kind handle in earlier differently things having of renewed potentially discussions and are back, you're the customers how As coming year? your

Mike Altschaefl

Sure.

internally operations a as doing, of standpoint. our in both protocols talk from assembly I'll Some types of the as we're customer and well maybe

our very that We us. move Fortunately, the facilities, done should positive of base in have we to one towards for types were certainly coverings has of other doing. early all which a things very be had think impact we

having for educate very anyone the cognizant if stay symptoms of they on people people are and coach our home symptoms and our facilities. We are exhibiting entering different

checking within We have our again and checks symptoms operations. assembly temperature

we out physical risk. everything and where have to can out the to the put We can, we to reduce minimize the try things provide for doing distancing, ability risk physical barriers spread

stringent, Likewise, protocols if more whatever to our working members. company's with customers, follow when certainly, our we we have protocols externally, But are For them. follow they first have.

So contact, again, physical distancing aware as having avoiding close symptoms. face coverings, much as being of possible,

in with could externally. with But work that's today, stoppages are us, as situations back frequently couple our is a So in dealing we up everybody. that, and everybody starting no slow relatively And because be it caution had we've for an watching we're careful for the field said members smoothly. working significant to us we fortunately, companies August, gone heavily to there activity so we've if one-off Like down far. many it's cause times something why of we is ramp that

us good sites the earlier XX, for thing per as Now by XX XX, it is, question in we asked might today, be week. was

many, So somewhat out risks sites forward. our continue it spreads in to many move that which

far. has we're positive so for increase a result had think, and our protocols those, we to continuing our So compliance us with

Marc Wiesenberger

U.S.? that new your customer products at Got you discussions fact to are manufactured when all? is how one potentially for about talk that in your it. And if me. can decisions, impacting the final win business, looking And one In you're the

Mike Altschaefl

certain a be requirements things America there One, Buy Sure. situation. to In Act compliant. situations, might for be it's very positive absolutely

be Number And they the so can if of many U.S. certainly, continues there do that has to product, sentiment like think a American-made happen by that. to they we buy would to two, companies that in growing manufacturing.

the risk concerns not third a and of by is of customers than supply very additional quickly, transportation our that of having one product deliver our somewhat having can why here U.S. competitors. in manufacturing our concerns is time and often modified successful Also, standpoint is would faster chain The say we part product. and from mitigated facilities with usually of I the commitment we our are part most to our line

standard-type So many secondly, can XX I us. to the it is of supply XX bit to business been having chain generally, just the a which ability faster much we days, little product, the think deliver to to on control And typically our helpful competitors. then has in than customer

are control project-related a broader as continue and to our solution second installation, your continue we our us still us. where having sourced-type and do from operation for key for to sure that as the it for features, see and standpoint, provide handle the have to a services we'll we competitors our see question But for ability back-end handle customers. -- having to hold think we capabilities are they a and we to secondly, for company. makes is, customers might front-end customer from provide always it been to we product, a customers, situations attributes our positive. provide the we There U.S.-based find has having to customer interested on why better where in sense differentiation that component to product that other So making to a to more services the overall, win manufacturing largest helps businesses, that to Then

Operator

concludes That Sir? for Altschaefl session. the Mike closing the Q&A I Mr. will remarks. turn to over call now

Mike Altschaefl

team a return a that in thank excellence us the back us has from you, position to their the operational want Orion great delays for to profitability and for going Thank and COVID-XX I allowed Great. regained has hard and put Orion revenue Again, higher work forward. its Annie. to bounce momentum.

social we on participated most our virtual available recorded recent of in conferences, several During which have the is the period website. distancing, of and

XX. is with us release. information on Conference today's event is included contact next or management. Tuesday, November IR The contact events press Our Select call questions schedule our at Craig-Hallum's Alpha with Please to or any on join team a

for Thank to appreciate fiscal QX in on the look your and forward So good thanks joining I again everybody call. time for you. call. Stay and updating to day. listen really a XXXX our And today, have we safe,

Operator

today's is conference call this for gentlemen, and presentation. attending Ladies concluded. Thank now you

now disconnect may lines. your You

Orion Energy Systems (OESX) 7 Nov 202021 Q2 Earnings call transcript