Earnings call transcript Q2 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings and welcome to Alpine 4 Holdings, Second Quarter 2023 Financial Results Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host Ms. Shannon Rigney. you. Thank ahead. go Please

Shannon Rigney

at of Rigney, Christopher your welcome conference Officer, Media. X Harbor of interest call. order efficient Alpine company. and myself Alpine On be XXXX Shannon is X and in quarter the financial In with more be results We to Meinerz today's we Vice to you will Social Financial statement second reading Safe Alpine fiscal our time Thank appreciate Founder Wilson, CEO Chief call. call Founder President Xs and the end Director Kent and your

to It's now my please Kent pleasure introduce ahead. go Kent, Wilson,

Kent Wilson

Thanks, everyone for thanks Shannon. us And on today. our call joining

while in new what our transformational share we this my stated want and in letter price year, isn't I where era June to of at a begun company reality we be. The of our is exciting. And acknowledge As has it is that CEO X. within occurring Alpine

to several technologies, purposeful the X and Alpine with gain of help Elecjet’s leading our powerful industries Its company Solid-State change and products. world customers. begun AX unique new way these traction to has is Class has the in and batteries, choice set a storage, other batteries with to lithium structure cost it an name few. machinery such energy make vehicle electrical And ideal safety, to just RV tractors. density, for energy that's including comparable applications, and many ion grid batteries, electric as

to from I summary with the second XX of go before is you of over we to currently few megawatts team XXXX. opportunity this worldwide. To-date, the a I highlights successes pricing larger internally, more into globally. a quarter believe beginning energy sales of only want our of And provide our further customers much is But storage

XXXX technology accounted respectively. up million from in grew and Revenues of for Manufacturing over and XX% million, of $XX million, XXXX X% second the the revenues first to segments our XX% quarter and six quarter more up $XX from to than million. total in year-over-year in $XX second $XX months by XX% the

XX% the a goal same period second from margin eventually our profit. us compared all and net subsidiaries, over point drives company gross metric profit towards a to profit is XX% the to breakeven loss, the for to blended increased to quarter, company as Gross of in out of This the important will because generating margin an XXXX. across a XX% during cross

year-over-year and in measure, was Another non-GAAP we the XX% growth important quarter a out, it thing to the adjusted and second year-to-date. want increase XX% astounding financial point EBITDA, is in an

will weeds financial important non-GAAP Now the forward further should this operating his expenses as Chris discuss in review. out it share again. occur not an to a anomalies non-cash really in basis our and our measure that on one-time But going metric is

how shareholders Many it historically in strategy XXXX out have And to performed because expenses. these non-routine company measure, show accounted one-time minus and expenses. non-GAAP expenses true, prior choose pointed one-time through see while had X would that this aggressive shareholders the the is for acquisition of Alpine of correctly allows We those to many non-cash filings. our XXXX our have

is that received information orders are Eppley, to American This President the million I UAVs be now door supply or for team global at off for growing July for million a This This also first was additional with Vayu has supply Contracting Vayu. the shareholders. received order big like with a items Vayu important Inc. X agreement today seeking and order purchase opened its $XXX with several here discuss increased deal Solutions, from the to business few of in its and of the the the the exponentially. awareness agreement amount TK of All customers $X.X

lawsuit books. Mr. services its will we Well for settled on Former also a less month $XXX,XXX also and Testing our West at Martin, than The energy carry of forward. This Alan and going the and company $XX,XXX by Owner reduce Venture Horizon with interest expense fees our

pleased Chris our as Meinerz, that extremely say call, the the company compliance. to And regained appointed also CFO. NASDAQ I'm Christopher as full company we

price respect transactions you to $X.X capital with of in inquired that about, a secured for million, Bridge Finally, many we require Financing note. fixed convertible

success production statement filed exciting products. in delivery these X. registration of of and SEC our Procurement our to the transactions important an the capital also is SX August development, on We most with future

All batteries an competitive component marketplaces QCA, It important industry our Solutions, and electronic American elsewhere us facilitating for will and advantages play in for in material role with we create serve. allow procurement at within electric holdings, supply and procurement Contracting to the agreement million that $XXX Vayu’s customers

I'd the mitigator shareholders from built liked an of the subsidiaries, catalogue the And GXMKII the to smaller within some has impressive our know of GXMKIII due most our and and this about I UAVs of inquired discussion discuss, US-X subsidiaries, like keep drones you class. I'll value. to Vayu, time as value to the to to tactical the

team fruition the the believe million supply $XXX we sales of generated the opportunities new that sales is many agreement Vayu of will come for And past has dozens world. Over year, Vayu that one to over opportunities Aerospace. all

Western complex for the each in including country scientific International to navigate and Japan law customers States UAVs Indiana, shareholders abroad to as Texas our use swat/tactical Nevada their quoting that a is in quoting University and complex a as work in UAV customers, responders. in for for our us UAV company users. of regulations It US-X is in sales company first Kenya, The the for company and vary a Nigeria, and and teams United for GX in Georgia, several is long Morocco, Antarctica, cycle, Europe. with and of are enforcement both The mitigator also and entities here end for and important Kansas is sale our know to

We revenue a numbers this as between over in the QX RCAs expect healthy back increase has we XXXX. dropped we margins our Commercials while the RCA see last have this but Commercial. balancing margin revenue, achieved RCA and of sales towards margins to XXXX maintaining on to our in year's Now increase. year, sales and profit

revenue I'm to also of commercial new job granted this and that that pleased under bring to was the the the excellent RCA has to market monitors at year, an over RCA will And consumer XX months. A we developing exponentially Commercial expand product these the degree at highest gaming exclusive feel the earlier done products announce to and excellence company's next RCA license these brand. quality. lines team

which is an commercial its president and our in the Garcia. strong EV It to and amazing Quality art XXXX, January of Now leadership energy Assembly. FOXCONN With our on led is the Circuit of QCA, by customers is in its on-par on state-of-the of QCA world, customers, QCA bring and growing shareholders. delivering storage quality base new manufacturers and with moving into manufacturing electronics. Sanmina. the capabilities Tim its the The a space, contract of some the facility likes employees QCA systems in will company also will simply company. including high be largest

additional these and it will patents are Class intellectual continues the on important various property of with that building has these future. specific product most XX for ensure key well AX develop industry off company Elecjet in envisions applications priority patents its of to under suited a patents patents. focus Further, batteries of The development. portfolio the the XX

demanding targeting vehicle industry. also The enormous in for industries, company reliability Customers automotive company this and the the supply recreational customers and very chain, qualification for sales volume its several These but that industries the solid and are major has also batteries. industry, safety, achieved now quality. is proliferation in for billion they customers evaluation, of milestones battery of dollar the in have area microgrid large, subsequent represent industry, marine company, opportunity performance with state

-- certification succeeding industries. competitors Further, overcome, partnering hurdles in And they with these to this difficult in groups many have prevent succeed of which to collectively our is the from Elecjet many market. these which

which achieve. Certification, That can was larger believe in application second aging delivered microgrid energy will for of for the augment further January, July most year. include and equivalent that is used be a On with and supplied what industry global company our AX-XX, supplier, order This be larger this to In a which the overstressed power TUV, the emerging second batteries for Energy of testing. will and lot mainstay is Commission of AX-XX With grid. a development UL. California microgrid leading testing to industry a fast to CEC, organization microgrid and industry, country's certification our the a lot UL the solution many the will cell

this test than must. that and a in And of any environment performance informed This quality uptime, is the market they've of an where to-date, high an megatrends the of XX/X and tested we they us this times customer cells. AX-XX a X.X believe with other has cell and other better Microgrids a the customer is a lot represents portfolio. minimum extensive industry, patent are leader safety are explosive that

the chain agreement be material Class the A not of transfer into automotive AX to batteries. entered side testing confused and EVs. of evaluation automotive billion-dollar the with company On global and supply for with a Elecjet

could batteries This lucrative require their applications There scale evaluated and the our batteries market. performance Elecjet customer to that global batteries and XXv that into chain automotive can be our customers a represents additional AGM being seeking applications customer, away its solution and quality, number are a vehicle. engagement move what acid of lead reliability, safety, to that As in are between provide. entry supply from

global relationships Elecjet’s complement can will market and Further this resources that that all cell a customer has core the support expertise battery operations with capability.

we're marine that industry. actively pursuing area the Another is

about is XXX solid industry, it pilot to XXv The We and the our used battery one-third acid Amp-Hr commonly and is and marine in of for have have now a XXv lead a production evaluation first weight customer qualification. released much cooler in the Elecjet’s and shipped size. XXv battery we that a runs product state of XXv a half is that product and developed

craft sailing paradigm on the power. are trains, industry shift two being turbines, and operation marine include revolutionized marine about have the Elecjet will range time extended and backup positioning, the rain applications evaluated The of GPS fishing exciting acid of commercial Its with.

a in RV Elecjet XXX to sent state create solid customers and a for state onto industry. the to solid XXv resulted battery XXv Amp-Hr industry. year partnered industry. XXX This and ago in Commercial month, prototype battery together RV the Now Amp-Hr be to RV RCA the One a this

offset with XXv changing RV XXv and two batteries this chart consultation development for our R&D will company XXX changing to this and industry, powerful a those generators California as generators. potential of accommodate the State battery to by recognizes and a customers solution seeks the will Amp-Hr that pursue The to ongoing battery. And RV directors allow solution. it XXX RV power the battery the gas now new been a of led state with the Amp-Hr needs industry the solid From industry, have ban

Global to UAE. that big company, is update very aggressively the on business shareholders Autonomous in our our is company for a Dubai for deal and pleased Now Corporation. plans its shareholders and pursuing to This I'm the

wanted with GAC to countries. has region progress with in the development field the in in for of Civil of of GAC to company and its of own Agency their partners medical the in has the May on interest airframes. of for started medicine from engaged from Following working the company garnered year, this visit other also Dubai the Certification groups its region, The ranging Dubai Aviation several the delivery autonomous the

incredible XXXX. in the $X Exchange announce to we that GAC be that X Autonomous And that valuation the National engaged received Alpine this Bank, of in receive Alpine our Global we and Zipline this billion Maxim carve-out pleased also anticipates a carve-out Corporation sole earlier the may don't encouraged expect the on a X. Investment public with company while has year, receive. competitor listing book-runner on valuation from are I'm to potential to conducting to

completion X to and determine And of this information am Board pleased expect of has to upon correct to QX in paid the I dividend work bank, XXXX. carve-out shareholders the shareholders with authorized release to Directors investment we and finally, share our that to XXXX, carve-out also of of the advisors to to our Alpine be in management dividend

Chris, few for come With comments. that for now to said, I call I a And detailed then a financial review of will will our turn more Chris? summary back over results. this

Christopher Meinerz

Thanks, Ken.

to $XX.X manufacturing million, June partially year XXXX. the XX Alpine For June revenue $XX services, declines an primarily revenues segment, the X% the same ended to construction XXXX of prior were Revenues increase fiscal company's representing by increase X six increases segments. and an offset is million, quarter for of in in period technology compared XXXX XX% The the increase recorded due over months XX quarter. the ended in

This quarter of Gross and XX% margin the The higher is XX% manufacturing prior for due principally of improvements the compares in year-to-date. and in XXXX segment. XX% year-to-date. our was quarter to margin and in gross XX% to in for second XXXX the second increase revenues costs

expenses to $X.X of Operating quarter XXXX, during increased second compared $XX.X in the million same the million during XXXX. period to

that gain XXX,XXX XXXX sale XXXX, June annual in not during Vayu performed $XX.X XXXX. XXXX. quarterly expenses related million result and to to million For the operating increase did in increase expenses and their to X.X of same on the a $X.X research as compared program, million six fees ended related to add filings. incurred period $XX.X to and property drone in million XX The A of primarily in development operating expenses XXXX in was services and due restated months the reoccur to financials a professional increase increased

our and million the periods continued by debt, June higher debt. XXXX expenses are environment months for XXXX. respectively, higher primarily expense The the interest the XX with rate new is in and for Other rate the increase interest $X and million $X $XXX,XXX same for along six on to three driven $XXX,XXX ended compared variable

Net $X.X $X.X compared diluted to per in prior was period diluted second for year. million, corresponding in $X.XX the of the the or share, net XXXX of million per income $X.XX or share loss quarter

to loss or million per per $X.XX June XX XXXX. For the same compared $X.XX share diluted share, net diluted for was the six or $X.X months in period million, $XX.X ended XXXX,

QX and their discloses company which total Excel The revenues, segment XX% year. and Construction prior as of which total to segment of to XX% which activity business. in information consistent XXXX. business is period the Manufacturing, in this QX technologies, Alpine the revenues for was in or follows. the Metal that way The and XXXX. TDI, is defense, Vayu. an of Sheet and are Elecjet, views Xs the QCA Labs, segment Manufacturing MSM total largest services, in and aerospace operating operates to increased with its is management XX% of revenues year-to-date, segments primary And compared RCA same Alt Morris Compared XX%

XXXX Technologies $X.X second quarter versus largest XX% million and increase segment, growth. XX% in was of due The and XX% $X.X million the in accounting is manufacturing XXXX. in quarterly and increase in or for XXXX second XXXX revenues a revenues XX% the segment year-to-date both organic to of the through all

$X.X These $X.X a Labs by million million and construction partially were and $XXX,XXX. Additionally, a increase in million, for of of $X QCA. technologies increases increase services for offset Alt declines

segment, and for increase through construction $X is QCA. of all million XXXX technologies million increase manufacturing and declines due in for of The a million revenues a year-to-date to were by million. increase in the offset also $X.X in XX million $X.X and $X.X These Alt million services X% Labs a increase increases $X.X June or XXXX versus XX% or $X growth again of organic through

for XXXX and activities Net of a million increased by the months the reoccur and gain the operating a increase to is of a first XXXX. primarily million provided of did months property through of use non-recurring XX payable in The on $X.X compared sale in due provided cash million XXX% XXXX June operating accounts first XXXX. cash increase to $X.X during a activities not in $X.X cash by XXXX. to was in million This six $X.X increase, six

applicable XXXX, rules one-time financial EBITDA and the is million EBITDA June before as and defined non-GAAP are $X.X cash other deducting at expense, regulations. measures adjusted interest earnings equivalents taxes, adjusted to June as within SEC and $X.X XXXX. and income EBITDA meaning And XX XX excludes compared items. of non-cash Cash of EBITDA million amortization. totaled depreciation certain

XXXX. of in year-over-year. Adjusted The for QX again was million of a EBITDA, loss of XX% of a non-GAAP a increase to $XXX,XXX $X.X of loss compared positive metric QX XXXX,

through positive million, of a compared XXXX, of a was same Year-to-date million XX EBITDA increase the loss in year-over-year June for a XXXX loss of XX%. non-GAAP $X period adjusted $X.X to

be to price not range or for offering Finally, or offering stock may the on terms the whether the to stock. Form a of registration X, proposed Commission, offering have offering offering. determined. be is U.S. there market we August The Relating the and yet shares assurance Securities no proposed to The Class when number of our Class of subject and of a to as statement actual the the to been with offered, S-X and be as A can completed, common conditions or A on Exchange filed size SEC. the common

We public NASDAQ website and effectiveness the of filings regarding the website. through market updates via provide S-X will the continuously Form our

I back now remarks. Kent for would over Ken? closing his to call the to like turn

Kent Wilson

Thanks, Chris.

XXXX of our confident quarter in that line to sharing are interest in look marked this of and growth ongoing appreciate year. progress period the acceleration with a fourth continued show quarter key we second to of the in signs The revenue company the growth of We our develops. forward begin will you top business. it our as your And

on through over you questions shared to want Shannon, of We past address Investor our our some week now were the section will go Relations with question? do the us of website. that the

Shannon Rigney

are been Yes, addition company in planned additional already a I do S-X? the the need next capital its months? can that. with requirements what money raise What number to Question to one. XX Will for has

Kent Wilson

one. to going that answer Chris, you're

Christopher Meinerz

the opportunities DSF our static beauty model likely companies a for a for The to to needs. growth and straight also in they the Yes, of like point fresh company creating, secure the will I'll no in need not is but subsidiaries ups in as our and financially at subsidiaries, of new is future. market, arrive on with some product I’ll capital some do opportunities there capital take another take one. Thank and that driving is cash the various around owning products, the Due company for you. is line growth downs one. based that have, new large we it many enormous raise being

Shannon Rigney

Question Can I'll Thank and expect number question. more actually moving this we messaging you. answer PR two. forward?

participants information it's market All and insider company. team, or to ignored Shareholders and to us a inappropriate to on seek it's because information substantive. release prudent can messages information from such non-public requesting going from when highly are our be count

with rudeness with are sent the slander obligation to going to to Additionally, communicate said, social we're happy to that company legal It's also us and messages general respectful shareholders. our on that ignored. hate, important are note has be communicate to media. that With being no

Kent Wilson

for I I our The be it's are it unless few social important is analysts, listen recognized, company spewed on that informed media company to want full -- information on is do the reputable But well. also absolute from it's shareholders several would state Shannon. the Thanks, points echo is clear company to that a as garbage dedicated so the and that or this sites. shareholders is keeping the when will also to coming hearted appropriate. to

overtly tirelessly employee Further, spew comments for and for you. do the in have thing ridiculous Alpine it's company's People every whether cares the day management shareholders positive about And be X -- we nonstop that not media, demonic. expect are on our social to actors. the every interests said, bad company company hate frankly, to address best genuinely of shareholders, or work just your mind. and negative, The it and unreasonable that somebody's some outright

questions. back All right, to the can Shannon, go you

Shannon Rigney

are sales Why than three. drone taking longer expected? Question

Kent Wilson

which company many of American United that one. FDA I'll the month. XXXX first cases began The million with products of $XXX Vayu’s industry our take Contracting, GX use the The XXXX to company to fulfill. marketing UAV States. our Therefore, and States, the agreement and its complex million this $X.XX restricts Shannon, efforts can All and last we focus in its the sales the supply FAA incredible mid-XXXX, part in restricted. United of Where received highly P.O. that spent outside is most Hey resulted and

All cycle outside and have Shannon, Martin, customers mind, this The company companies Also, most emerging proven where the is the LX seeking to Harris companies unlike States, that at like like the as of Lockheed new right, question. much Vayu, you're opportunities are is exist keep our until in longer in sales back more United other the products time. actively seasoned marketplace.

Shannon Rigney

What Ken. share the help is falling management correct Thanks, doing price? to

Kent Wilson

to it Again, know I'll take price. what a good always really enhance share that the question. is I this is management do This shareholders one. to can want considering company’s the

there million closed operating In needs context February debt, Alpine hit question. in equity in some its million $XX.X million. early $XX.X out subsidiaries negative stock shareholder around and XXXX, $XX.X four revenue, be price, the with $XX when company to all-time XXXX and However, this and had have high of million assets in

million price yet this million and increased the high, shareholder million. $XXX million of $XXX decline, sits Post liabilities all-time stock $XX book annualized has as in the now value of has been at $XX over on equity have in company's exponentially. revenue a basis an company in assets The on consistent the company

the obviously today. a is disconnect the what it there's was valuation where of and it of company So between

the RCA that Elecjet. revenue, the to I size to Alpine Further being six and cash has That company's And flow that one X is double companies the of them businesses, being X of Alpine is hold. the point portfolio acquired Commercial. largest one contributor want in out

an solid by measured battery billions battery company, state in solid dollars. is graphing whose Our industry intellectual of state development property on the and

reacted first $X.XX company's is off American our is with answer American agreement supply clearly Contracting, when want understand -- the shareholders of And of this. this on exposure we in market saw to million, its this All very as focus on So Vayu positively. the enhancement, July P.O., products. question, the I announced the year, to and sale Management's

with manufacturing, increased price. the our solid state batteries, company sales we with achieves greater electronic believe will the so, share reward as And us UAVs, market

our Ladies presentation. have reached and the we In closing. end of gentlemen,

the begun for ability has outline share era you earlier, our new are our of married where a and with XXXX Alpine a for QX hope opportunities vast of to X. at enthusiasm the era level. future As past optimism X. higher Alpine perform An I I for stated my

Now, I'd comments, closing Shannon? call Ms. to turn back to Shannon Rigney the like over for

Shannon Rigney

I'd for in Alpine your interest Ken. you, X. call to thank like time Thank on your all you today's and

like Safe I Act risks Q&A Harbor subject read close Private the On to prepared our statements call, session. the are forward-looking we statement. this additional in Securities contained forward-looking claims which uncertainties protection statements remarks made and Harbor the personnel’s Before Therefore, Litigation for and of to contain Reform company management forward-looking during statements management XXXX. of the Safe as

materially could personnel the of factors plans, not results legal Actual and the and forward-looking ability to or and changes general development as changes qualified conditions, economic business competitive limited result our differ or in strategy from business by to of attract contemplated statements factors those requirements. regulatory in a retain certain and

the no XX estimates In today, market X as update to of conditions company's August addition, XXXX. projections to management's assumes in any future Alpine performance projections represent the as obligation future these as change.

discuss company the its May and issued financial release on August not with quarter on The look second results Participants call may second the the a who and on done summary have documents at XX of ‘XX. fiscal XXXX, already also XX-Q these results so SEC announcing the on X a they as wish for the call. XX-K press may provide XXXX filed quarter to

found on financial present with which will which measures accordance and non-GAAP to week's include in comparable include also alpineX.com. a it in the may calculated this measures GAAP which directly and available is most release, press financial Today's can reconciliation call be

This Alpine call. concludes conference fiscal second Thank quarter financial Xs you. XXXX results

Operator

have Thank this for teleconference you day. at may wonderful your lines participation This and today's concludes disconnect time. your a

Alpine 4 (ALPP) 11 Aug 232023 Q2 Earnings call transcript