UGRO - Earnings call 3 2023

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

Operator

Hello, and welcome to the Urban-gro, 2023 Third Quarter Earnings Conference Call.

As a brief reminder, all participants are currently in a listen-only-mode. If anyone requires Operator assistance during the conference, '[Operator instructions]'.

Following the presentation, there will be a question-and-answer session for those on the telephone line. Please note that this conference call is being recorded, and a replay will be made available on the company's website following the end of the call. like Relations the at I'd Dan over time, Investor Droller, Urban-gro. this to conference turn to At Sir, please go ahead.

Daniel Droller

GAAP. prepared and call Executive Nattrass, Good substitute not afternoon, should to Exchange be website press will state and and A Chief Brad These we available as this call our I'd a filed from Reconciliations release listeners involve at that statements ir.urban-gro.com.On of like us. this discussion EBITDA joining non-GAAP Richard management's to our items Chief beliefs, projections. Financial Chairman future remind the Officer. Securities and and thank be our will remarks the Commission you may GAAP made and led Investor for Officer; are with metrics, backlog.These XX-Q or Akright, and forward-looking of risks our Today's net Urban-gro's in Form in with adjusted financial loss results expectations can for and be and include call, during including accordance section intentions, Relations our in adjusted uncertainties. are EBITDA utilized by accessed of

are current of materially. Forward-looking call safe on provisions pursuant laws are the expectations. Growth's based and federal to statements harbor Urban Actual results securities differ the made this on could

on release call encourage the earnings at such cause Investor Securities a the you are Commission's review results Relations of and is by the Exchange differ and are a actual documents statements section website, a turn These could of today's be to replay documents place in to the our section Securities contemplated should factors website undue not the you reliance from to discussed As for Urban-gro press I'll webcast copy found over now Exchange that again may result, periodic these of call With files forward-looking Brad. company's reports the website. of statements.Some which on We available ir.urban-gro.com. any the carefully.Lastly, that, in forward-looking materially with the Commission. on do our Investors and and these

Bradley Nattrass

Good leveraging we for Slightly Dan. efficiently and afternoon, services streams upon ago, as architects, excited project over diversification focused into XXX our Urban-gro strategy execute a report you, managers, consulting revenue to Thank build focused and services team. momentum others this that our construction engineers, us out thank to we professional continue on designers, professional has the managers, on joining launched a gain evolved initiative, horticulturists seek to more for tend multi-sector company. firm.With additional today. everyone, the year and you I'm than interior and

third we a our ongoing the have consistent to our environment marked served entering a beyond backlog our improvement million the $X.X our improvement ag in with QX our or our both million, The another performance XX% include to million while exceeding including operating $XX.X and quarterly 'XX. $XX.X expectations, backlog, improvement QX revenues industrial, drive clients the commercial, sequential to as a increase.Despite health adjusted XX% focus a education significant signed to beginning our loss million, within sequential sequential has quarter EBITDA in multiple care.In controlled source core we headwinds diversification this contracts retiring of of the very strength resulted of close million. strategy regards and of reached million, $XX sectors, fourth enough adjusted sequential came of of EBITDA. high all-time in Revenue quarter X% to $X.X new was CEA company. revenues $X.X And expanded our across centers, successfully recreation, to practice hospitality, and We quarter

as we productivity Our and shifting we marked on the services a to of continue towards optimizing of environment the to work focus employees adapting period now team is revenue our more more efficiently acceleration. professional

Although year, current feel first the half we staff of that our in right-size we the at decisions see. difficult levels comfortable to given we earlier some made the demand

most diversification cannabis print and definitely in assisted weakness to trends. broader that is segments the from working insulating turning the Now business vertical our are sector Sector farming through.

solutions combination Although the remains by now a growth, sector than with into future important no turnkey the build Consistent component existing CEA that is CEA of more our sector, professional include of new to the cannabis some CEA our of X/X new design, clients continue this companies as on our markets. both included be top-tier projects and the offers evolved a and company of outside longer its equipment as clients consulting are our the fully dependent and services sectors to revenues quarter, and clients by equipment an second Fortune weak compressed and regarded success success.We've market. and to multiple quarter revenue integration well.In with in XX was our generating continues

'XX, of million period-over-period a decline $XX have of XX% business. we than more During margin of the X experienced months first

impossible to this negative on ignore performance. our has it's While had impact the that financial

said, design-build strong expecting Our and of as experienced ready a to still the the be when keep the surge and to and states. we'll cannabis team diversification interim, contracts a steady enabled positioned result, we're in variety sign to sector, And to has demand in are in we intact. seeing market activity rebounds.This our in us remain continue handle well being the

Urban-gro is primary business clients and For rapidly control. apart lacking our more much today increasing from that block we market needed the this to access cannot cannabis in one capital, to our

of New of licenses example, for legalized it's also others, and legal within delays paused Alabama state. to their one slowly among Georgia, have the However, will awarding like that a due continue and to regulatory that York, are dissipate.There states, number

third it's of the period in already of significant the a construction move number delays successes stage signed.As are have it construction, the the X continue 'XX. We entity forward announce clients been we're forward we relates resolved with European had where opening but confident the these where are strongest design, is June projects contracts states, build and European company's some these are our to since licenses of quality and clients completed to This the move in size such which have these of received. pipeline to of entity, evidenced as and we'll since is the

show anticipate achieve expect be be record slightly last sequential than on which and driving the for realize a we in meeting sustainably company shift us continue hard remain goal I'd remain EBITDA, and top subsequently cannabis our returnsNow 'XX, guidance I While the we approximately shifting our can our the and been still shareholders. interest to line our deliver closing, diligently revenues operations. adjusted bottom on back multiple abroad you both demonstrating to fourth the and the million, positive that we've focused to which flow assure that with the to I through more past strong to continues to mark breakeven meeting ongoing green growth European to of line, commitment XX%, our cash to team, quarter they its to countries, working to time Europe $XX scale this shoots markets clients business would an year.In both add positive was by closely will would important in new take and week, in with

here. demonstrated about the by well, purchases My to second X.X% leadership and myself, the shares commitment takeaways of team market a directors led outstanding. their open Vice other third voluntarily quarters, made of stock the for myself in take commitment to of company with during and in lieu the equity President opted salary as XX% Executive a In key totaling quarter.The up each addition and base XX% brand to of third Officer their

our well First, as our the Board of to teams future in leadership team continue believe and the strongly company. as their

And have on And momentum, to third, in our goals now working. turn the It maintain Second, that, with will call this to I doing our we positive strategy power our we're alignment Dick. organization. across and diversification Thank over is momentum. to everything continues gain our you.

Richard Akright

with periods onetime expenses in less organic of the $X.X in profit prior reallocation size business in quarter million third as construction Brad construction negative quarter. million average the XXXX million of equipment compared well to in in design the a negative of $X.X loss quarter development that the increase cannabis higher-margin are quarter $X.X of increase $X.X XXXX by of lower a these million and per per share sequential was revenue projects was first expenses in decrease period.This compared loss a a the an the are X a was predominantly company's $XX.X million or associated reflecting third year discussed.For a $XX.X $X.X improvement or million of a $X.X excluding in quarter million reduction earlier, million $X.X negative no of a Gross which in prior third million construction XXXX, million or performance diluted on compared to $X.X the working on $X.X or prior XX% in adjusted to over an in strong months increase impact $X.X representing over build debt. in of to margin projects basis. systems million, the was year quarter by prior of in in both Thanks, $XX.X of quarter million. of But million million decrease operations, the $X.X sequential the lending our were or million Net and expenses year of revenue of $XX.X revenue in revenue decrease current $X.X to XXXX, sequentially softness represents order $X.X was comparative number in the XXXX.The improved in of of increase revenue was to XX, $X.X build of on ongoing the a The is $X.X XXXX $X.X lower a improvement compared in by prior bank We undrawn. we first growth adjusted net subsequent period sheet. increase the $X.X period. second September nonoperating loss driven XXXX, revenue, over compared in date, expenses revenue, or third Operating quarter million expenses, even we of to sequential for period.The offset $X.X million administrative which, of revenue revenue optimization quarter revenue the diluted the year generated third XX%. of XX% an EBITDA resource the was or quarter reported in The and in million of operating ended of or improvement is million generated expense of of $X capital.To and the compared experienced million loss months Brad. substantial a by operating of margin $XX.X with revenue basis, $X.XX decreases we expenses prior period.Adjusted third Both to the Net XXXX EBITDA our compared $X.X one-time $X.X to the of initiative.Net year we increase better million million share expenses the was profit in mix million In in million million.Turning expense to of and a general adjusted a million $X.X operating XXXX support the facility year included negative by XX% EBITDA of $X.XXX negative a working where in the year which, in X prior $XX.X of million the and XX% sector. attribute generated entered these operating increases prior to driven equipment systems combined due comparable this of cash net facility of quarter year-over-year total in the third we as in expenses as decrease our the period. of we in profit our which the manage XXXX, impact design quarter XX% of the of gross decrease CEA.This into $X.X as million To remains in asset-based $X.X and the of was outside of decreased of quarter improvement are previously of discussed and in the an revenue.Operating revenue year were than million $XX.X $X.X nondilutive third a expense, million. EBITDA second million, of gross to of driven balance million XXXX, the sectors to

on total macroeconomic X% an indication that and our the increasing $X the versus remains backlog a EBITDA. reflecting sequential the of by backlog was past future remain Supported realistic XX% approximately flexibility professional remain our $XX and systems our That in million concludes for million build, call be up focused positive market year. by prior of This please facility, calls, and Our execution as necessary remarks. us September on returning pipeline, our nondilutive backlog to construction the circumstances.We XX, and to or on of our services and provide $XX cash our or questions. basis asset-based with $XX contracts, XXXX, continue the manage comprised communicated adjusted million, to make lending through Operator, million open is million of encouraged backlog.As prepared to confident of million combined backlog we our and number of position, trusted a increasing $X design $X we business. will continue of our sectors equipment increase that

Operator

'[Operator instructions]'.

question Eric first Lauriers of Craig-Hallum. from Our coming Des is

Eric Des Lauriers

First that's guys one added that backed just more get whether size Certainly, provide on the overall nondilutive this more assets some on Could any the great. facility. facility is of can you that sheet would here. you facility? on What some great flexibility you balance be to the hear details Just by? provide detail is asset-backed

Bradley Nattrass

Dick, Thanks, want Eric. take you do that, to please?

Richard Akright

us. construction a large that. has for on us we receivables backed on facility the really it's The that by it's said, that primarily and base receivables construction sector grown $X yes, in backed Eric, really then Sure. for really We've the seen for as asset to receivables. like entered million And up a is facility lending I based. into increase by operations based

Eric Des Lauriers

yes. that sort then needed able you down And is of revolving pay or, a facility? that to as Were

Richard Akright

It's Yes. facility. term not a

what standpoint that a borrow of the as-needed it kind do of we So is basis under facility. from

that. So we'll as incur only interest borrowing we against have

Bradley Nattrass

the We in growth it All ahead. support the to at look right. expected quarters here

Eric Des Lauriers

on just cash. sort Yes, or there's the business is that's ramp on As forward? cuts with permanent forward, you've keeping hear. And flexibility. G&A guess understood over stock-based that are that the could these coming My going again, sort we that to does kind far see? of XXXX? It's lid gross are of up more you Should of some nice color good think down this revenues sort something of more to into if should added of going profit? so we those to and some Obviously, you done? we of very with G&A. going that's or I a maybe these Or see commensurate that. cost how G&A deferrals whether you've provide kind just on line, I QX of doing cost is that cuts that stock-based going some should here. of excluding made job How guys think question great a to comp great see compensation to forward, see costs next

Bradley Nattrass

start, it I'll you to turn Thanks, detail. for Dick, then the Eric. I'll

I've communicated the EVP and Eric, of we are acknowledge roles past top end When we made on we the the loaded. companies those As company. we're moved leaders senior into acquisitions, within calls,

of specific reasons skill we the we to set the One talent. was or made that hire did acquisitions

anticipate needing hire. $XX we start to not quarters, do more EVP we senior so And as any grow, to million, deliver or million-plus we management, $XX as add

into will So cut when the We earlier it cut didn't year. to evolution we the muscle this want be into a nice future.

jump the the make that in we're was willing in to for Dick, detail. So quarters. want maintain brain on do power a to order future sacrifice to you it

Richard Akright

to kind add goes of that, reconciliation. EBITDA adjusted our Yes. and Eric, this to I'd And

of XXXX. us of the retention in a going kind the with we it So about have program going we really basis. reduction said, seeing we is revenue will be a be handle the now, in current not felt of to in with than one were That in included on going That's put growth Brad that G&A for much the what place We're the can XXXX. incentive items quarterly of into for we've year, talked the we place handle feel that a able have have forward. have. have necessary increasing without in that jobs much we before to because larger to of we staffing staffing today number we're we to reiterate right seeing, that But we amount, size that and number a that jobs, really we more dollar of the

So even revenue growth won't see. the to going near to will anywhere the though the some, go it in proportionate G&A we're be up

Operator

Brian from Partners. The is coming next of Wright Capital question ROTH

Brian Wright

a dive regular in tell reduction there G&A place. like because either I to wanted stock were deferrals temper some buying were where in I quarter, that on you salary. the bit people little can for

fourth So that's I'm unless that seeing the refers quarter in being extended.

wondered increase of kind just the I that So line, fourth quarter? I in quarter in like for the the understand that what's incremental

Bradley Nattrass

Brian. Yes,

salary reflective There because you've of was so in stock it was increase indicated, It QX see of QX. option taken we're right mean, of just took to did. or a around in people. as in of little we're a bit was an of reduction G&A instead. in G&A anything terms not what dollars a of stock going $XXX,XXX in because little in there primarily of does and as that salary fourth here what talking that to by bit As mean quarter. clarify, millions kind The their the reduction of I total people people was a

keep basically our as So in significantly that, where savings we're an over quarter now related the place there some right other is but is also is. not slightly G&A, where G&A see to over taking QX QX going to projected to be to increase fourth going in although

Brian Wright

just additional so the I much key maybe the you I -- color just it seen that. Great. yet. on out, haven't for but Thank

And market, perspective to kind where you backlog. you end as how just allocate to care so market end end versus, however between would just as but think to the and health name a wanted we want it, how industries versus CEA like on from you far of do some insights the about backlog backlog think markets tremendous about the the the to of

Richard Akright

Sure, Brian. more than revenues were Brian, whereas non-CEA. our X/X quarterly

or contracts the they still But majority now quarters. the design us especially more farming extensive and construction of it's side. anticipate want that start both long as And shorter sign, Those even Our is signing, on X side, non-CEA typically whether it, CEA can on these the sometimes immediately are controlled projects contract, in in are on length. the on when backlog they than space. larger with to X We the growth X/X build. sides. design are The we're is and they're we over focused spread out and they're as quarters, more executing

Brian Wright

I Great. $XX your color. Thank into levels. that like choose million kind optionality because about for you revenue in torn and even $XX those commentary of quarterly I'm million get the to

we So fourth that's sequentially to at million right, ramp from I'm quarter as the far kind then as side. the I million look like $XX don't that to assuming little optimism. the if up you of $XX choose I great positive the for quarter. things around that on But see, if just that see then But third

So there comfort ramp can kind fourth like, we in quarter? with the is that how get of

Richard Akright

we when be and that signed. talking ready to goes of haven't would for the sales about. of fruition, in kind on fourth the said is come a perspective. into are But from that revenue the the funnel, amount sales we and lot are Clearly, have don't going construction mind, substantial our on in question be a getting our quarter anything to insight funnel to we're projects talk which about there announced Understand, those a completely Brian, what of to,

those as can signed, larger work done So lot projects of get upfront. projects on be there's a that those

going in our insight reporting revenue of from backlog to see we're the that understand as highly there. the is September. be So that we're confident the you that, might necessarily not with asked funnel, end completely But and that into you of it question the that

Bradley Nattrass

it. XX% beginning of I'll our the In Brian, add we retired quarter, back And third to of the backlog.

confidence recognize the now in of entering so shows we're you other then if what the of the with looking where what quarter, of side quarter And to million to at terms that it $XX Dick what proportion fourth to it million, in market. starting and level on in hit was off able we maintain Fix about the add talking anticipating we're of top we're order $XX with discussing the

Brian Wright

Great. like that other any like are part details that of use, Ohio adult that are are you as there things could just approval well? of to for that nature point And then things

Richard Akright

they For third in time Ohio, fantastic, regulations state place, at legalized the the right? For probably looking the get of another industry, 'XX. you're by quarter

clients a in bit great. I They ahead for So be us. talking serious with earlier. touched forward time. of move hopefully, us, would little it discussions on were We would more to to it But start,

For clients they construction have of us, they a funded. safe like, to for delays. license course, cetera, the of in have be they we we pulling and don't states side. a need supportive that forward the pass. fully rescheduling these entire industry need move and And But us, we're regulatory for will banking, and to All lot the funding to turn around, in released, et is are just

New do a soon Montney now. up Jersey behind. months. want industry up, as for sign to But don't an mousifor successfully New turnaround we'll overall they too X like they us, we definitely as states sure. the and open generate it the But to take when optimistic, those to won't significant we or wait open very profits. and And the contracts, have can't award revenues could get because Hopefully, is week far guess up and rapidly we licenses York could for opening So be take they it

Operator

The Maxim Anthony coming from Vendetti is of next question Group.

Thomas McGovern

for McGovern This is Anthony. on Thomas

kind back guys of discussing. you were pigging on to just So what just start

don't little you now in quarter, positive up I'm mentioned inflection seeing guys that signs New off bit see more any a last is to open in in just points Jersey market potential But have You starting said turnaround New the do some starting you're is wondering cannabis full of just the visibility York. we that cannabis and sector, shape industry know some to industry just there. to maybe how appreciate provide could a I recognizing market if I'd you a your you as insight up. whole? that and just revenue just the that. need you start

Bradley Nattrass

of for the QX the And Inflection question. Thanks year. be for Board would the something and We point, is course, main needs next industry something in probably Roundtable, as will on the Sure. one sure. rescheduling. rescheduling sit take National Cannabis of like place of the this I that significant remain very optimistic

to. In be Jersey, speed it for segments. additional progress it individual new York over with that moving to also we've now certain terms a like opened of, aren't groups in a their New for is to of expanding into forward made us, licenses rapid at On clients, New jump these when have that tied it state award hurdle but there's specific licenses at level groups as could up, states great awarding funding the example, in Florida, more well existing

that So hopefully, say, banking of quite could year. unlikely to up they most by we again, but We already a that the had and better passing. pop how year schedule happen. QX, are will could move licenses move. for can last industry. there's licenses once faster. happen the had QX getting we both the It were just sure, course, for They but how QX, that through the I it's in states lot in anticipated released. those we move of active a quickly regulatory end it those delays. and projects But amazing would go quarters facing the in or could X QX clients and us, those and boom. that something were of of hurdles, highly QX wish it's It And had want the that legal hopeful for It's forecast probably it forward was them now couple like into fast forward like, releasing

happens when pleasant a So sure. it it's surprise nice for

Thomas McGovern

is next My question color. the that appreciate international front. I on Understood.

been design. quarter, So line, that had you the most and last highest you by have mentioned guys of top driven

be discussed opportunities how were last was the would time establishing provide to expect update in of just were appreciated as Being week, some international that also into vertical You it market and us you in Germany some kind you regulations, 'XX that are East. could there you farming on looking moving an was but some Middle looking taking guys you well? the at how if at what that even

Bradley Nattrass

experiment Amsterdam. Yes. Middle and around for right a in was in It In we to backyard our focus the but East, when that's just interest of the being is office, been not farming forward. decided On active we're that right moving now. there now, moving design then it X met offices focus berry where strong and doors. facilities same funded Netherlands When in North the Netherlands, in in years market, of for facilities. building side having moving around those our outside indoors. with was of quickly opened their a From that the a cannabis and in they're both clients there's are production forward I discussions has vertical also build-out last vertical week cannabis over we focus us the American strawberries groups clients with the moving the farming, had the These We've on also standpoint, those side.

or about to X see a quarters. because nice of long that's there pause X was So

entities. design it to nice So these past stage, the of to one it's go and would Ingruto for see strong move forward, good next a that accomplishment to with be start

to overall mentioned facilities built just the went against had similar I far regulations be in As in were Ohio, mandate. just what to getting country, to move it's Germany, the as forward. on place. but that going Originally, they EU

facilities they've of more a a approach, of out can it now approach.Fortunately, social hundreds to for at build-out go it requires And club licenses looking facility. still club the social us, Phase build because so X social club together down of toned on or a

So right key, right say, now, we're X I'd the on Netherlands, the top now. focused the U.K. countries and Germany are

Thomas McGovern

queue. ask if I quick appreciate could question into that. I hopping just Great. last one And before

call and acquisition that's the curious, looking last at you you the you're that I of resuming your just guys in mentioned guys that of activity macro some your my general M&A guys of returning questions. you some market, just time XXXX. to if to were something answer at I'm appreciate taking activity perspective to look So kind on you given done starting have guys potentially still historically?

Bradley Nattrass

on getting Perfect. within shelf. growing Thanks. now, generating and cash own focused our Right to we're just back

able that strong, room ahead. register good, As and access have we area access start, now, to of specific profitable positive quarters now, we even for are whether top sure. at. quarters mentioned be it's and so and the it's not I to Long just offer flow. or we want But of back look right and cash to lot the contracts It's we a to at grow near-term loaded, really something getting don't on run, maintaining a course, and plan service within it's

Operator

The next Research. from Eric question SCC Beder of is coming

Eric Beder

them people for to I who that step And win contracts? And confidence have resources. certainly ability of mentioned, larger back you'll multiple and lot could CEA. those little more gives people you to you're what continue argue you win contracts against bit competing I a years. and want contracts? done going get, guess, How winning and you talk as outside to What bigger it are you forward the sometimes to a about your with,

Bradley Nattrass

Great question, Eric.

project portfolio construction We're looking couple small XX additional with a client firm, management to we current contracts projects larger. doing they were to it, with right? In acquired the doing of Xx terms now and clients, the projects expand Fortune and X and a we're doing multiple When size the of large year. that is winning a working

we delivering We're So service tuck. delivering do. we're we're what And going levels. we're said the on good to strong locking

up set project management office internally. have We a

internal a on-site superintendents, We have project bizdev team. relationship and managers whole

to into we he than So a complete.So we've project we're of what's vendor-facing client that strategy. more put lot where see or outstanding that's that clients also a or the a got did work a building systems JT We've We're to COO, is past. level. brainpower arriving and and joined great us when expertise brought When as their utilizing time that lot Archer in. giving out go-to-market service items real that in where good needed allows and equipment stands, portal equipment

multibillion-dollar Of large companies. there's a lot of course, management construction

out $X sub-in at those focusing found signed infrastructure to doesn't really projects a $XX after it million other Gulf nice million million, was they're large that industry. from could the going own. We were not We at where procure the Southeast. to site, we're million, on companies. aspect all hire the some built projects. and that in and the in to or billion-plus really full They're on And their Urban-gro. one to turnkey bring recreation on they have of on so $XX engineering were a that Otherwise, to sweet actually and $XX go in spot they find own project the package going superintendent We services projects, exist are $XX of their around architecture project, thrilled hospitality they to to

there's that definitely least to offering that at me projects. we're So also working see of lot a on was We're in for that more a what of a value really weightening, level. for sure at nice a

hotel an engineering, the to X-year of chain, $XX,XXX a $XX,XXX, just foreseeable for working is project do year with future. but XX to X- international Another times

It's build company not a in it's bought design XX-year always engineers. Houston. based that our So we

one for fell specific relationships. in example, skill We fire a there one no that Southwest are have a of that have lot Region. They and lot of sets, is safety,

what we're on good strengths we a So delivering building and do. doing job to commit our in on

Eric Beder

do QX more be Great. granular. to you it still at expect you revenues, about When A little non-CEA? X/X look

Bradley Nattrass

in pipeline QX strong continue have and like that the for it's facilities started farm we QX at see in stay could this begin we CEA to QX, would close that and that. to and next announcements maintained based see QX, the vertical QX I quarter, as mark and we the or expected to level. would say you ramp go If more to year XX-XX to the have, towards I facilities up. our backlog cannabis that expect what's good it upon would, So I

Eric Beder

Great. And last question.

there obviously, have equipment are In in the product? can I margins equipment opportunities guess, that terms come of bit in companies back as people the you the business. they here, equipment, the when stronger need Are of that now CEA your be, a CEA are same equipment assuming because issues purchase that a are more theory, little here selling given in problems to their with the right having equipment and you lot drive I'm

Bradley Nattrass

we to that have I we to margins to a we're markup. serve Eric, you working And a that, able our with We we in dozens also them we manufacturers we're with have do definitely Yes, weren't in that equipment, U.S., And in work when the as forward to would we better I then feel take manufacturers. of to this equipment, that's goes agnostic. our we're then just performance, of cost-plus and it increase have construction close a the agree. those as feel And on want Like at in place in be the and clients multiple X-month services, to can't want markup Eric. contracts if year. are to set we look look manufacturers. then with not moving If Europe well. relationships I at we right, just $X to we're advantage it is million, equipment

think mechanical call, did last the have closed successfully on contract. we asked or we QX, integrate the mechanical I in you

it shipped but a very clients. non-CEA, haven't into large We yet,

focus to those for a larger sell spread too. web also So it is equipment a and markets Acasta systems us into our other

Operator

First Ellis Berlin. The next from coming is of question Acklin

Edward Acklin

be your team much to so about revenue members For just wondering earlier capacity place adjusted to the guys forward. you of comments staff terms could like have G&A the positive your a cost what share to volume back insight with and revenue generate staffing might inflection current starters, circle EBITDA handle was and that the you to so I key as in I'd can in that keeping structure? point larger going you some consistently if

Richard Akright

Good I'll that question. take one.

we've revenue think the we staffing still substantial think have. we increase could that with relatively before, see we the in a as indicated I

I the take the the can cannabis comfortable just that we say side increases that standpoint. million a that And is jobs pretty quarterly $XX seeing sat swagging people. equipment of the substantial when I'm that, the today an construction kind here especially a revenue As having of without would again, I've of personnel of And least part get up from at to of then in doing, does come just ordering lot side. we're on we're size that doesn't back, equipment of increase

with any, a going I many require is to it'sÂ the built was business. that back, when for not more, with kind and things. $XX even revenue I equipment, of million million comes it we've projections just way $XX very kind with So the that And But of kind that It's around forward. of especially us. our going income to statement certainly standpoint think our people if quarter, of way And revenue, really played people of able cannabis falloff of unfortunately in handle got the just from place hurt it in the lacked with the we've to downturn. the be

Bradley Nattrass

the add little on there. I'll the back to add a bit, back there, I'll just Acklin, on

executive as hire, that areas, bringing in But near will the bring roles individuals sure. anticipate we for need for site superintendents, operational increase, hire our EVP well. much we will we'll continue add key revenues as we future those the in those that be don't certain or and or engineers far to senior team, and As expertise very the as architects

Edward Acklin

Okay.

a this about where breaking I more Is Just Is the the EBITDA $XX okay, even going million. my like break more a spot level? at staff it million or forward $XX business even there as $XX talking was while remains line that like Is along guys in you million, consistently that and mix adjusted $XX revenues is can you that to million, Dick the was target? here? it is you have is continue in keeping thinking, the of place, question point? for with assuming where that

Bradley Nattrass

right? all on depends So with that It mix, --

Edward Acklin

the stays sales. is it Assuming about with mix depressed what now right

Bradley Nattrass

revenue. Yes. That's only guidance the in million than is, less right our where with now, quarter. $XX in right Ellis, approximately XX% that's And equipment

EBITDA, you that approximately in can that decrease. the points revenues inflection we're right But and our changes, guidance there So $XX in million see is now. positive breakeven hit equipment some to space cannabis

Edward Acklin

then Okay. That's just if follow-up. And great. one may, I quick

last backlog any of to able might there or you on out Regarding take stop in idling had the the be Is When back at point? if some project quarter. put it that? you update might to that

Bradley Nattrass

but and We're facility. move discussions do that that not working believe sell forward, their still license I they're that, to with client in will client. their

we prospective talked have to that a of of So couple purchasers license.

be project can at some that So in won't future, but with specific the point I it client. resume that remain that, positive perhaps

Operator

with Thank a That reach nice have questions have additional the is for investors.uban.gro.com today. out all and questions. to we evening. Please you, any

urban-gro (UGRO) 9 Nov 232023 Q3 Earnings call transcript