OESX - Earnings call transcript Q4 2024 | Orion Energy Systems, Inc.

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Operator

Good morning, everyone, and welcome to Orion Energy Systems Fiscal 2024 Fourth Quarter Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.I would now like to turn the conference over to Bill Jones, Investor Relations, to begin.

William Jones

Thanks, Michelle, and good morning, everyone, and thank you for joining this call today. Mike Jenkins, Orion's CEO; and Per Brodin, Orion's CFO, will review the company's Q4 and full year results, the company's financial position, and its fiscal '25 outlook. Then we will open the call to investor questions.Today's conference call is being recorded, and a replay will be posted on the Investor Relations section of Orion's website, orionlighting.com.

that forward-looking answers Securities as Act XXXX. remarks statements questions Litigation reminder, of are that per a follow to and include Reform As the Private

has certain project, words this made describe that well targets, also therein, I will goals, or with anticipate, Forward-looking forward-looking. Mike? the any issued plans future such forward-looking company the Mike today's metrics outlook are update generally Reconciliations Such financial in forward-looking described described the any words. measures Also, GAAP include believe, disclaims its to of matters these obligation differ to release filings materially to cause actual to statements results matters, turn statements release.Now press are morning, provided expect, its closest or date. subject in its press other or Jenkins. current These as company similar or also in as to are risks expectations. of various that among non-GAAP SEC. risks statements call Orion over that as today's could which the are Except revise include, from as statements, as

Michael Jenkins

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

full business our revenue year to Orion's and quarter revenue revenue momentum to As anticipated, achieve strongest within fourth build guidance. in across continued quarter, the the our us year enabling of end the

Quarter was guidance guided our and highlights for prior over above overall, year-end. expect to to a the which this quarter XXXX revenue XX% strong $XX.X within X A at in revenue XX% have year. few year. fiscal approximately from is XX% and We million, growth positive X, 'XX, momentum fiscal prior full and revenue latest XX% Orion finished fiscal year. is our over 'XX continue

$X over for margin XX% while year. over the and and finished in in Maintenance prior above year. grew finished XX% recorded growth segment X generating X quarter positive X% million in over revenue Lighting Our quarter full

business and EV increase.Let recorded provide saw on progress X our a in our solutions, commentary the about and the of Lighting throughout prior million, me quarter over year, approximately million finished was record for we Starting $X with over turnkey LED steady off XX% some which ESCO Our $XX a fiscal now groupings. up 'XX XX% customer businesses. year,

as Our #X our 'XX lighting customer grew and and fiscal we maintenance projects in quarter in significantly the relationships. expanded

we our from of expect new who the stores, ESCO, fiscal and Defense by DCs, 'XX took project these we Lighting, super big projects Orion be growth. $X meaningful Lighting conjunction is continually Both provide to execution also will began work to The military capabilities.Looking over manage a done forward and project frequently in of drove showcasing them Orion excellent This their with turnkey basis. efficiency additional their million government partner. multiyear on will plus as performance.Our the a executed to a management of project and lighting a we which a acting in that their as stores, fiscal On project contributed the Department complicated a This for and one as a $X super million base business the to job team revenue an ESCO really areas lighting as prime of exterior This large is very in and did in base challenging was them side, long-term federal projects our contractor on selects with lighting our lighting their with customers. executing number both for in retrofits project on addition a business well the and step new is range of energy half base Germany. 'XX. be and world away, upgrade enable our supported who in for hired

longstanding a activity see We in customers automotive to after rebound lower fiscal a expect for 'XX.

next XXXX, the Vermont, the benefit target base to for and Continued initiation as strength companies, the large in Oregon, in our lighting service of pipeline with building tubes in #X coming well to including distribution in logistics product Longer stages states, without replacement now market, developed let design, these contractor similar market. growth the the that future. of state These on expect fixtures our term, warehousing and the have with $XX federal planning year.We years. of more quoting higher-end by expect or public and technology, of budgets. than several products that states products build with Island, to Lighting us product Exterior. contractor over balance the in the end-customer effect growth the such We price have cannibalization that broader to commitment our approaching for as Harris energy efficiency, Colorado, of been regulations segment most year. to to go million, new as energy-efficient under all evidenced in address products channel, ESCOs, expect LED have our X and implementation customers, more line opportunities fluorescent the also sales.We of products us strong significant business allowed Rhode customer, sale the projects we success expect banning our responded name we new follow sectors were in retail, to a and from which several and expanded into other very of also points broaden sector, our and the of sales activities and in favorably which TritonPro modest last in These is approved Hawaii, our X of Currently, regulations, energy year Maine, believe fixtures have continued California, regulations fixture these value components, introduced high-quality and

customers signs LED fiscal as of see to started a our accelerating into retrofits have planned We result. 'XX

efficiency encouraged by design, multiple the was and approaches, is energy engineering which Lighting should believe flow our just from go-to-market also or industry-leading are support our in products, that Build regulatory of part in America, strength starting potential our these benefits really growth business.We Act, and our the The in facility we Buy America the $XXX year federal LED quarter fixtures billion and funding these the we BABA, full from requires of funding. to when Jobs and mandates BABA Wisconsin. new a in available here federal Orion's in of In receive launched Act BABA Infrastructure BABA-compliant products Lighting line manufacturing third produced in that Act. use requirements, compliant states, to we anticipation last of municipalities, to Given schools

maintenance the confirm these largest lighting or inflationary for long-term to them We EV that to revenue unprofitable segment. team, out become projects, geographic the fiscal decisions EV In Orion in $X reach revenue record the of BABA, businesses.Also, of either our larger customers. be $XX of Orion, to We working year, reduction of variety allow believe infrastructure The in in pipeline. to a of including LED to infrastructure the customer's price made decade-plus maintaining Voltrek over we would new continues terms still Voltrek annual a for a of LED commercial, contract's installations days we due to is an new solid and come.Turning the 'XX. in strong to base for level growth their of larger capabilities, completion enhancing infrastructure early contracts buildout a impacts fixed its able revenue acquisition. had its significant within contracts first allow cross-selling our of the to our national funding by customer with EV positive position expire, this Charging million X-year of customer, that Maintenance to develop were Many Orion driver strengthening Voltrek's in catch-up services compete are to and in and We our charging announced for solid slated we nationwide. EV of Lighting customers.Lastly, million of industrial, vehicle growth this of to retail plus strides fiscal had segments, the demonstrated million, across contribution record a to Lighting closed synergies and to contract, range nearly U.S. meet track favorable we 'XX, fiscal electrical service lighting confidence Overall, preventative 'XX.In regarding had including to experience particularly due successful operations during major of Stay-Lite unprofitable should in but very drive lighting our opportunities, few in a made for puts tough profitable, the make Voltrek competitive of and support approximately progress opportunities, in QX be Voltrek fiscal business business years. over needs momentum Voltrek's full to million. record build revenue. resulting and multi-year to growth take 'XX, year government, contracts the platform within during years needed X reprice national in we of primarily with leading with supported station quarterly XXXX to access the between the stores fleets Opportunities our the customers, the a successful driving fiscal fiscal past our our EV a charging in 'XX, pipeline $XX recognized customer over across in of cross-selling significant services from business, agreement to the contributing include continues were federal of This our contracts secured pipeline for X,XXX performance outlook addition, maintenance Charging retail. $XX

percentage fiscal business segment profitability a did fiscal our more 'XX and million us bring business.As with overall of contracts in 'XX is line result a X, of revenue unprofitable gross shed to in to our in in X to $X.X quarter fiscal X return our approximately in meaningful 'XX discipline annualized we quarter to Our this period. and focus, profit enabled quarter our margin goal this profile

accounts Orion a We will business expect greater our Maintenance business be some a in to this Maintenance 'XX net business. bottom means growth for opportunities new offering fiscal this as by Orion. Overall, to loss products our automotive, to value national revenue of provide outlook Maintenance from to profitability revenue the which in to for Orion's has in be transformation our of lighting Lighting XX% partially banking, other growth needs.Turning includes benefits positive revenue as the new on offset referenced leveraged X Maintenance of sector to segment. improvements, continues Orion meet providing a in from on We to this and for 'XX. and earlier. our and also services industry-leading reflected LED customer build recurring key view in and of while base line overall are project our retail, is diversify our as reduction their outlook public is relationships experience projects The large the fiscal the full for existing providing expand to This clearly the LED and our consolidated for accounts year and X well target management outlook basis, expected business. XX% past new logistics and in on transformation also to quarter customers. technology, capabilities of a and years, distribution, revenue and based revenue.Over

the Charging be continued the value as of EV due quality, XX%-plus existing and our in as so decrease is of efficiency, performance. Orion's channels new to growing we expect response on quarters call to expect half to The and primarily contract and second 'XX, offset to fiscal do unprofitable. Per We that revenue from losses in pass is our look all expected partially the and quarterly Brodin, growth the were that our expect million this line to to services current year. more weighted growth by our in the With to to energy Solutions contracts, performance, and growth year-over-year outlook $X bottom financials products.We to now loss million.With expect well expect said, achieve opportunities and growth basis. by a customers we The a agent CFO, legacy $X our let fiscal similar due the driven ESCO the to fiscal business to me Additionally, in other to X discuss is detail. much year. of impact Maintenance accounts approximately to 'XX regard expected with revenue of 'XX, net revenue we for revenue pipeline by strong better

John Brodin

everyone. and I'll Thank you, highlights Mike, briefly before to review we some hello, Q&A. move

and segments. EV maintenance approximately a fiscal XX% QX revenue improvement Mike referred the XX.X% of some preventative and of reflect revenue quarter of the Lighting contract Full million $X to of the X-year full $XX.X $XX.X X in fiscal for Fiscal larger to growth growth, in our million 'XX compares gross included QX largest versus Both growth rose projects, $XX.X Lighting. lighting QX percentage year start our X% locations.Looking Defense Our Maintenance points over 'XX XX.X% across service retail profit notably million, in all a XX.X% to contract year which the business LED at X,XXX increased most Services basis ramp XX% $XX.X QX in in 'XX. million to 'XX, an to the XXX in LED our margins, XX.X% million, customers' Department improved and business, increase 'XX 'XX. 'XX

XXXX periods volumes as from fixed XX.X% improved ago. strong gross XX.X% higher basis in in our and full Maintenance fiscal XXXX a taken volume business XX.X% on cost we as our percentage maintenance certain profit points on remain benefited steps The absorption. for pricing improved cost approximately year, 'XX increase of the of to expect XXX absorption, we in impact higher new grow 'XX. XX.X% sales margin the from and mix, fiscal sales. continue fixed blended Product increased the For business fiscal product expectation basis attributable to fiscal in our well the gross and contracts. Both XX sales overall, in to the 'XX is to gross margin from as to points benefit Reflecting year

negative impact of of in million as we net of to accrual for 'XX, work in have $X.X year QX that lapsed.Operating effect a compared recognized period Maintenance orders expenses through current some Voltrek million from earnout in QX $X $X $X.X million declined work However, contracts a be to remaining million reversal expense mainly QX 'XX the the earnout there earnout due the 'XX. to will expense QX the previously in in

the operating year, inclusion a on acquired highlight due the of the commission due levels, intangible occurred acquisition. this earnout, couple offset partially QX increased to full but For of expenses adjustment the as part lower testing by that other recorded charge have higher product would full during sales year, and costs.To year noncash Voltrek of expense in current earnout impairment to higher assets the of a items we for based unusual of the Stay-Lite expenses also $XXX,XXX X.X% excluding a declined primarily year

in Net In addition, of record $XXX,XXX as income inventory costs that charges, to of million, million improved per $XX.X cut QX reflecting 'XX was $XX.X Orion's million tax year, gross lapsed. and the $XX enhancements had our receivable of capital million of million, and current further the offset cash $X.X segment and included to including we an at to incurred to restructuring noncash now was to million. bank higher finalize year, million part the Orion's mortgage due of share, which million. share, $XX allowance $XXX,XXX another loss $XX.X assets.Cash revenue 'XX prior of via year-end, revolver of liquidity Maintenance improved 'XX, $XX.X for some to a charges QX operating additional a eligible March loss percentage provided of which the After available realignment enhanced $X in and results $X.X Orion's prior 'XX expenses, million, lower December exceeds quarter borrowing an credit plus Maintenance the and by versus assets liquidity, be by are million that of our or defined and $XXX,XXX partially QX to million, a The million, fiscal position of corporate liquidity company's cash $XX.X $XX.X fiscal improved as such of end. changes. disposals, borrowing-based inventory over XXst, operating facility, our XXst, working working base $X.X as in On generated X in on million company's the primarily wind-down approximately 'XX. the Likewise amendment have which we equipment net QX as amendment allowed broadening capital receivables of Considering in million plus $XX.X $X.XX contracts $XX.X net Manitowoc headquarters, we $X.XX $X.X we of Orion XXXX, had the included expect a 'XX, $X.X our profit on recorded was deferred valuation was defined in per $XXX,XXX to approximately from calculation. in million, availability, accounts or million

we we 'XX. good of segments in fiscal each our objectives believe a growth their fund such, for and As position to business are

As for ask the growth now 'XX, outlook operator XX% session. in we at outlook our this we'll I'll revenue fiscal that, update to to a and quarterly.With reminder, are start Q&A reiterating XX% least the

Operator

come our is Craig-Hallum first of with And the Eric Instructions] going [Operator line from question to Stine Capital Group.

Eric Stine

You But $X hand you projects is I to have loss that? like look number XX% Charging. visibility sounds from what fiscal offset set with growth the by of it curious other think the Do the do of mentioned start. a always Maintenance, DOD you I contracts in And today. you for in So you outlook know really of what you've 'XX, million curious, those Lighting, see? at right? we it's project. as XX% about And got just If hand, just LED to 'XX timing type know dependent. then agree

Michael Jenkins

Yes.

us. and strong As for as EV you growth being outlined, Lighting we see both drivers LED

on year growth the growth. in into Maintenance. have Lighting. you both for do a of they're LED But in going EV significant some and business decline the pipeline both working the this together We EV said, and offset As that helps

reference one bands accelerate of long-term coming of about boost. automotive in fluorescent back beginning a automotive, of very in to respond some year we've evidence a We automotive retrofits bands did projects We our some just of We want customers. give to a see that timing both fiscal did There's the seen. us also That that the some this timing the did I large support to of customers those that fluorescent nice the on year. projects this year. as result reference is have coming. past new based really and some customers they will softer remarks of

the why that's about in general So, good feel about feel we good year very the business. Lighting and

Eric Stine

maybe And you just All towards then really opportunities. to sounds right. to here point being skewed this fleet the like growth It characterized turning Voltrek.

Just your plus think that curious, Maybe you what much and 'XX maybe of is mentioned synergies customers. you do million how pipeline? fiscal with referenced $XX the you in Lighting I your think -- contribution

Michael Jenkins

Yes. a to business historical mix from continues right would now I definitely our a be say is it as perspective.

highway of forward system, opportunity years. all with fleets unfolding opportunity next over an see sales, we the charge. huge DC do fleet as that, that see and terms we and funds and non-fleet of NEVI a moving the fast interstate connecting The several In

first now the grants phases at right The level. street state are the of hitting

cross-selling Lighting of exceeds back the and do about So, and business. more EV and forth fleets opportunities now that all as that does EV. as we pipeline the of are our for customers actually have we government engaging a Lighting forward, include over with and $XX and we see million pipeline not between move sectors.So, We between million $XX more our well as cross-selling right synergies

that's are strengthening. really so, pleased and together coming we how And in

Eric Stine

of been There's And number a maybe EV shakeout EV the the companies. in charging space, just with bit a last a charging X sticking for of me, charging.

some would you, helps matter? Just curious, that you, there be something that Just helpful. hurts is thoughts doesn't

Michael Jenkins

with Yes, in well-established volatility decade We're largest equipment our a of who's very We're helps providers space overall ChargePoint, with over experience. like us. well-known think partner. premier that a company partnered I this

Stable really so And about partners, in pipeline. trusted position. and feel industry, name the we a growing our good

go, our and So, we compete and we've optimistic feel seen some new but continually to this entrants space win. and come overall, about ability

Operator

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

Amit Dayal

government respect see year? customer that to enterprise now or this to you to to customer, this a So EV With diversification revenue starting customer is the $XX in the this show expect mix. deploy good up million an

Michael Jenkins

we is a announce which it utility Yes, previously. It's Eversource, Massachusetts. did in

them top essentially then that, And is in call with and so, place. there's the essentially work, we're contracted infrastructure on which of equipment. they And to, what make-ready in all addition getting

John Brodin

end Maybe customer. these customers is just purchases those and Eversource purchasing user the Amit, But products helps are fund Eversource customers the to the There for services. not that the utility. of clarify, are

Amit Dayal

units How looking Understood. many to a sense of like, that? get is this does can you if what just into, market share translate the

Michael Jenkins

the Amit, sorry, got little broken there. repeat I'm up a please question? Could you you

Amit Dayal

Yes, translates I units I can million many share into? this don't how if know you wondering that was $XX information.

Michael Jenkins

total that I units. XX you approximately subset give Yes, can't really I to believe around, projects that underneath let's of are can XX tell the I somewhere say, projects.

John Brodin

thing that, more installation on When for one unit. that clarify infrastructure make-ready, of required a just I'll is of work a Amit. we Maybe the the lot say charging

$XX work that a us always the make-ready include may not the [indiscernible]. million the customer So, charging work and do if have only below to ground or, decides itself unit say,

Michael Jenkins

solution turnkey work, then charger place Yes. the is connect in to. our construction infrastructure to often -- to bring provide charger the the of to that put Part

Amit Dayal

or are support the X a your Understood. And X a outlook? But have play along in that on seeing years? future might to you changing in next that touched little out. those expected bit, little folks than that stronger what been bit federal It's helps funding you lines, deployments is acceleration could any then it slower

Michael Jenkins

funds that Yes, appropriated. Like were it the does. billion In EV was NEVI the $X federal a programs, through work of space, ultimately there of they states. lot charging

things take states for vehicle for time that funding and then comply to and to them grant begin to to the And go monies. so the

street, and months. really the XX the will think to just which accelerate good. we're charge funding that to I DC some now. next And for see it's fast But really of NEVI applied that's starting infrastructure, So, over starting it hit is be

Amit Dayal

Okay, understood.

me. last one one for Just

for room at there maintenance margins should these the margins, least With here, now fiscal levels, improvement? for 'XX? margins to for expected Or is model mid-XX% further we improve overall from

John Brodin

fiscal potential see improvement. we modest expect for think 'XX, some to I

QX facing are mentioned in X should because these in flow remarks, that it QX, improve of through won't my necessarily then to the headwinds in still But QX, and we're I to of related lapsing. some that continue As contracts QX. that

Operator

question line Cook Research. our the next from with of to is And Singular come B.J. going

B.J. Cook

new wondered just that right, I The basis. so. just was just contracts growth million ] pipeline quarter a to that some if that [indiscernible] orders. I wondering pipeline -- for I if We're remember million moved the wondered the it I And want the at clarify. orders. just into from basis. net if new on net looking $XX that $XX pickup EV to some turned if you're in I'm on pipeline, firm contract last includes seeing or that's [

Michael Jenkins

opportunity question, projects. the of Great Yes, begin absolutely. out they're we landed, closed once pipeline pipeline, return then activate to once The they Yes. B.J. and as to them our come

that's of constant moving So, in a opportunities there. group

And fair been realized. a so amount of realized have are those being and

constantly we're so, And replenishing.

growing. our stable to is I pipeline say would overall So,

counting are are back which and selling which there let's not in are, currently. as that opportunities, we Lighting EV mentioned, cost forth I between related, included additional and EV are that As say,

B.J. Cook

million for X other contraction your that's mentioned you Maintenance or Appreciate if million wondering for is I'm $X outlook? the that. And that me, business. in just consolidated a the revenue just the to number thing contraction $X

Michael Jenkins

as offsetting with that impact. and referenced contract the the about In with but of that business, as within that expect a segment business, our we're some that's net my of the to been which $X.X X-year agreement, a we and I preventative well previously value additional both contraction only, contraction loss potentially million, comments, It's announced, million. was net new $X has to

John Brodin

million. our growth net And the overall of is $X guidance that year for

Michael Jenkins

Yes. It includes contraction. that

Operator

Management. of from question Tieton Capital our Dezellem the line comes And Bill next with

William Dezellem

on point if headwind, and then last I'd doing XX% XX% correct? head. up revenue revenue your in to to these just that that actually But be XX% like my have guidance. numbers to guidance Is million XX% $X just didn't closer to would that follow you

Michael Jenkins

correct, That's Bill.

William Dezellem

would do revenue the the you you view more sustained to so XX% that as revenue XX% that longer for growth be targeting growth And business? term

Michael Jenkins

think shooting think per is which I definitely for a around somewhere is Yes, we're XX% and target attainable. annum

William Dezellem

And of that Okay, million other that X EV of represents? cross-selling million pipeline, a that's to that I clarification $XX jump helpful. is Charging other is business, The couple point then EV LED $XX only and or before questions.

Michael Jenkins

$XX million is both.

Obviously, part of opportunities believed to in, than Lighting other versa. and we our base that larger we are be that way EV, programs some we starting is which So, thought the synergy, customers EV well. can always to we've as and is some coming the significant Lighting a driver. growth of customers vice would so But cross-sell bigger see

So, total X. the that's between a

William Dezellem

actually other outdoor solutions we that hey, right put that about building a entire you like is opportunities those would way, so they then about that? are LED think EV inside parking saying, customers And Or Charging EV the coming we'd up to would is the light to area talking door? way some your the location be you or EV that that EV Is are finding deciding where the would that also be business either of to next lighting located. the like

Michael Jenkins

application. more about the all specific the really of customer really above. it's It's Yes, than the

getting opportunities additional cetera, that So, for the together working segment. through new synergy another partners, and new businesses et X creating to exposure customers, we're some is

William Dezellem

And questions then a here. additional couple of

So, you really mentioned that the Orion good. base was the with ESCO the military execution and

their this start bases, had one me by that they U.S.? the ESCO Let or outside first done was other asking, this military has done

Michael Jenkins

quite per I few, it's years. a of or year do a per a they quite couple few bases. couple every And say No, when

in but them a do And projects, large with we've worked amount well. space. very are historically fair these they So, as this on those

William Dezellem

Okay.

enough that ESCO? enough to that the that use other bases, And they've continue past you business your was going suppliers and this this with making other in anticipate military the the better I execution them where will am other if presumption, bases. So, they've well will I'm been doing strong than in receive is, done you that from

Michael Jenkins

They ours, of are of sites. Yes. a longstanding partner done number a where we've different

projects our by the execution was on in Europe think this outstanding team. I year the

would they echo think I that.

projects. think to I well on so, positioned future work And we're them with

William Dezellem

the of ESCO with opportunities this see this U.S. work to the on European or you outside smaller DOD larger be opportunities done the to you types do that base? than to prior of And historically this with had the ESCO business

Michael Jenkins

exactly, say Bill. to difficult It's

I to be going think there's a moving of lot forward. opportunities

And One government of all the includes ambition of an does what that told been is have their the now we've assets is interesting of that's military things right essentially by bases. anyways. XXXX. electrifying This federal that

other profound energy efficiency avenues And only that fairly impact LED charging well. potentially for a but so EV has not and and for lighting, as

along there domestically So, I think that or anticipate opportunities be more abroad. these moving would could lines, forward, we both

William Dezellem

so U.S. building from Middle could any the this city military to And in base small large a the federal a in be to East. given in

Just everything and XXXX. between anything in now and

Michael Jenkins

That's our understanding.

William Dezellem

question, Charging Okay. pace And increase said quarter. may. then have it EV Do million a this or if maintain one of approximately to that was to additional $X $XX backlog you rate? you of even revenues annual more The million business run I or

Michael Jenkins

for expectation year our a this is referenced, As growth. XX%-plus

on obviously, of is million. So, a $XX that $XX base of north million,

million referenced and a X million to have pipeline. million $XX We we've with $XX $XX already that customer

in million achieve the we really our grow to good plus. confidence So, feel this $XX ability about our and business

William Dezellem

wasn't math. I that Okay, doing

thank on failing you the the there. I'm end for time. questions math my And So, all front, since I'll

Michael Jenkins

Bill. problem, No

Operator

Shapiro [Operator next from question of is come going Andrew Instructions] the Lawndale Capital Management. line to And our with

Andrew Shapiro

I of have questions X lines all regarding business.

right how lens And you you're to funnel some Voltrek? in define somewhat activity? As investors here. to now do How Voltrek. internally there an how at you is sales applying funnel? is look sales this? a us This discussions can your Do your think provide that metrics follow-up book-to-bill of you and and and your about Is it clarity on immediate a for book-to-bill configured activity to have

Michael Jenkins

I Andrew, would talking what typically number about high-confidence always, almost talk at we about But there's we're that means a Well, of we're when look pipeline, different say pipeline, ways. which projects. talking -- active is it we about

a detail are believe we level those good of fit. a have quoting. where We we And around it's

I about. I'm And so, that's of when what speak talking pipeline,

et metrics standpoint. with that various use get internally cetera, really but we that, Beyond external don't an from into management we teams, the

Andrew Shapiro

now You've the timing project, What's book you when then it. you're like? the what's quoted And the really project. Okay. billing the Generally, like? not cycle

the signed typical they've a billing timing is What Now and like? deal. project

Michael Jenkins

not get is It here, to be depends on materials whether only, put Andrew, could it on which depends. just make-ready Again, unit these be out site a could installing doing a where we doing ultimately ready the but a it installation, infrastructure the turnkey station. power not we're cop really doing we're going or to be the work, pedestal, to to all or could the

So, varies it widely.

these scope of the projects -- varies. we Some may

we to progress a some Some payments it of in of we quick and turnkey more where be them over engaged recognize time. may them able be may get order, very revenue

Andrew Shapiro

Okay.

million, through Per And Next was $X here up correct? that I think QX. annual calculating quarter this said said accrued a right? for Am accrual that on Voltrek. earnout from correct in what QX, is Voltrek's question a benefit is had and benefited on that Is you here QX reversal I that singular

John Brodin

That is correct.

had net million. we of reversal QX, for $X So, a

the For year, had earnout $XXX,XXX. net of we the for expense

Andrew Shapiro

Okay.

John Brodin

end the at adjusted in our is place reconciliation most that's EBITDA press The release. the of visible

Andrew Shapiro

Okay.

or why expected to beyond? bunch close you Is into did So, of accrual a excess it to bill and that had of such has how the QX a in business and QX that get reversal? for more that QX bumped importantly, been as

John Brodin

start with, And -- for accruing as the it's fiscal the reminder, achieved. and I QX, maximum would maximum got was -- potential I'll fiscal to 'XX, of a end were then the 'XX, just we at earnout then through liability. say, we

could we fiscal So, 'XX, versus year a year and on view discrete end say, the 'XX achieved. maximum. $X.X we ended adjusted continued When March the Because let's for got of accrue $XXX,XXX actual of was achieved thought for fiscal to the target potential amount we to million. be year would results, the at the the the what our,

the of expected the was the Doesn't a impact accrued an operation. piece on that based kicker, So, of And on the success of XXX% amount than call was outlook. brought the less earnout also reversal. amount that big that what to we for cumulative then the It's we our max. view down our

Andrew Shapiro

added a the Right. that to volatility reported of which year. I guess, unfortunately the it the earnings, stock all in just the in we encountered volatility to last added lot thee over

Going overall on the maintenance, side. the to

to margin and there? to get you're margins takes get how nice gross gross percentage increase. it you back you had the What's trying think do So, the really to, long were

John Brodin

respect with That's to Maintenance?

Andrew Shapiro

was drill company overall the and line your down but yes, margin main But Well, back the this QX, in it gross goals? business business. in the because to, also in was with profit What guess, margin margin to gross get up let's is the Maintenance I drag. recovery of that respect what Maintenance about remains percentage to

John Brodin

other the expect on I and maintenance this margins, for that segments, my and we disclose that it the be remarks, point, mid fiscal 'XX see have we last we to in still actual improvement. mid-teens, work business. And to on some what contracts after don't remainder we margin in through still some We significant, QX, expect improvement X from some to will overall, directional don't gross expect in incremental then the but but these but see to standpoint, as that that And of drag achieved we at will QX. increased a drag of to the we said expecting be it typically improvement QX are

Andrew Shapiro

the is expected you your year? is of in or that that coming And in throughout area timing QX year little the the forecast, in the the write-down put maintenance

John Brodin

be No, that end the contract April. lapsed final the of will expect that we at QX,

the well orders. previously So, June. be for to we remaining all as that cleaned June so expect and lapsed, X May work up end through by part of those work the the other by Similarly, most shall

Andrew Shapiro

write-off equipment the you Including mentioned?

John Brodin

Correct.

Andrew Shapiro

margins? Harris, broadly lower LED of line on more And as products, the side. new I you similar margins gross the and lastly, the or generative are call greater-featured, they TritonPro them Okay. Are this are think higher-priced and product they is lower-priced

Michael Jenkins

say, to percentage on our I overall, the rest Yes, they're a basis, similar would portfolio. of

Andrew Shapiro

Okay.

mix So, are a new be the get some as on won't drag shifts the percentage to gross these it as would margin any overall in way, sales then? share, of products that start

Michael Jenkins

percentage a basis, on not No, no.

Operator

turn remarks. concluding Mr. the to will Jenkins for question-and-answer concludes now conference I back the this session, And and

Michael Jenkins

for thank all joining updating Again, our results QX as you fiscal report Great. our to progress you us we today. and through We 'XX. when forward we look

We opportunities. including XX, Equity Conference at June one-on-one also virtual hope Capital investor the Markets a with Virtual with meeting upcoming speak Noble on to events, event you

a at meeting request representative conference or our a Noble contact IR to can You this team event.

Investor today's or our Relations with Thanks, team again. contact call You press call to management. may concerning schedule also information Their any a with contact release. questions is today's in

Operator

concludes you participating. conference Thank This today's call. for

now disconnect. You may

Orion Energy Systems (OESX) 6 Jun 242024 Q4 Earnings call transcript