XL - Earnings call transcript Q1 2021 | Spruce Power Holding Corporation

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Operator

Good afternoon and welcome to the XL Fleet Corp.

First Quarter 2021 Conference Call.

As a reminder today's call is being recorded. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation.

introduction, Berklas, to President General Development XL and over the of remarks for Jim to Counsel Fleet. opening I'd turn like call Corporate For and Vice ahead. go Please

Jim Berklas

XL and afternoon, President; Kazarinoff, and discuss Good Financial and results first today Dimitri With the Cielo Chief Chief of for conference Officer. our are you. Thank Tod our welcome to Hynes, Hernandez, call Fleet’s our everyone, to XXXX. me Officer; quarter Executive earnings Founder and

statements includes or update of forward-looking afternoon to statements. and revise by Fleet’s statements, no in expressed this filings. and differ speak future, and to are factors which outlook call law. or Tod Securities by today’s Our uncertainties, implied statements. which on the our or subject annual Form expectations, company’s that our to control, materially to other statements With refer XX-K may predictions Commission which from report many as undertake the required Hynes. disclosures beyond you risks call We We obligation these and are the cause those of are results These our considered forward-looking any will to XL forward-looking turn earnings release, I statements may over risk be that, our Exchange forward-looking to in regarding except actual

Tod Hynes

on joining Jim, call this the Thanks, for afternoon. thanks us to and everyone

Efficiency begin like excited Services. we Energy we the for made Before I'd incredibly acquisition We first of to afternoon. were the to of with results an get into acquisition this our discussion quarter, announce exciting World announcement the

who trying to across of company vehicle charge and for energy help power the with and their solve and solar problem at including incorporating efficiency amount facility the location. of the vehicles record large and has of power, The Eversource measures Energy a available with value dozens The charging EV integrating that this region and Our charging. energy challenge major National New tell a customers track us operates hundreds experts constraints strong relationships filled and while create fleet is Grid. customers a World team can England delivering portfolio same by at longstanding even long to unique to increase when utilities, fleet of

of key last out with is year, acquisition first Our World aligned XL clear the the benefit ways. we Energy expect acquisition we business our in strategy to two combination and Fleet laid announcing when

mission First, division barriers XL acquisition removing strategic launched charging a this cost exactly well-positioned we to their adoption customers. are electrify make effective set total our it its and complimentary easier expands is first Grid, World bolt-on was is that ownership, our tremendously highly capabilities cost powerful. offering By the is companies Grid. of fleets. And clear When and lowering infrastructure XL to what to for to solutions. we the to This we provide a and of of provides Energy combination comprehensive believe company's our more

to our of fleet more in electrification said, even the World manner. Energy we acquisition an ability seamless enhance As will provide

also to Grid's we've well as customers. customer synergistic customers. accelerating the portfolio Fleet Fleet includes This capabilities, adoption provide as benefited complimentary to from the deep base, opportunity of across World addition to in Second, of and strong solutions XL spectrum XL a Energy's XL of offering

immediately year. first quarter December of including in of last of combination our with accretive Total by year, enabled The was cash transaction transaction end profitable, to at than the million Pivotal is approximately II $XXX million. more XL flow balance sheet Fleet. the balance $XX business of this on consideration Energy positive World free Importantly, position cash our from is and sheet strong resulting was the

grow to results look Dimitri on and World first excited over business like welcome quarter with to With review it over an to our I the that, Energy forward to long-term. team to Fleet are XL and to update our the to them We would partnering pass progress.

Dimitri Kazarinoff

Thanks executing remain success. Tod. strategy intensely our We for long-term focused on

with including call success in our several of number evidence last to like a key earnings our announcements, a since recent March. highlight to continued We few. I'd

and announced we partnership partnership, our Under a Dickinson technicians. in with Fleet and provider base XXX maintenance to First, Services, service XXX key of meaningfully for Dickinson trailers North access heavy-duty trucks maintenance America. repair expand including leading medium and mobile network, the the mobile and units repair we

to regional geographic We're team they of range diversification, servicing with and addition demand. base vehicle trained of gained service Dickinson are already applications. enhancing growing their working ability scale, closely ensure in In our and greater customers our the we our wide even to to

comprehensive announced Second, to wind carbon Energy, effort fleet constructs pickup America. facilities of of a and that energy Clean scale part their the throughout agreement clean emissions. leading Apex reduce to XL truck utility we and as turned power North to an company develops, electrify solar Apex operates

and providing wider XX growing Ford performance Series trucks, both a strong from is trucks hybrid interest solutions Curbtender, Fleet and more A of refuse set to systems. in key services remain includes Curbtender our compromising continuing plug-in sustainability of purchase of fleets base includes received example and strategy expect offered to this which order, deliver volume F or these with customer of of solutions make cities nature electrified in our to North critical applications all to evolve business part to our the reliability. shipments how significantly verbal We offer XXXX trucks. This turning first are to America. of transform is The and additional for electric customers. with Together requirement. pickup must immediately XL range without to applications a solutions, including great our we have on commercial expressions agreement and track expanding refuse recent Apex hybrid includes of a development to

team. platforms We expanded other EV are product also pursuing applications our with and development

opportunities, growth. across talent organization, adding HR. and the planning finance, team Fleet XL of expand to response and are scope widening in whole sales, the to marketing, including We're for our continue we engineering, We

at In to opportunities fact, three meaningfully demand. growing our end is target it last for than electrification market ability the was of more larger convert year, and our sales team than improving times

organizational in the Financial company with outlook. to to review includes and performance the growth Hernandez team organization. our a as as my Cielo recent I over to turn decades look to to Chief her herself brings With asset private with forward already that, a Cielo long-term. partnering Hernandez it established financial April. of Officer Fleet pleasure is joined of our over more addition has valuable two it our XL latest who Cielo half public this the and Importantly, And and experience. Cielo her than

Cielo Hernandez

quarter equivalents the the primarily quarter. increase I'm $XXX compared million gross million, of the first approximately prior to totaled was of the part of the period. $X.X cash our in We electrification below cash to excited existed Research period The million prior totaled Gross solutions. R&D in quarter. Dimitri. approximately the in in outlook quarter development to for costs and $X $X.X $XXX,XXX year $XXX driven of quarter with loss loss up the by and prior of as Thanks, period. continued during expansion the Revenues was million million a from year we team. first quarter approximately slightly to last $XX,XXX for approximately the Fleet XXXX the be provided quarter compared XL $XXX,XXX, a and first compared last

or Fleet raised We In with to company We has the marked-to-market as on is the restated to the guidance April the million consistent flow in restatement issued strong isolated for of other to provided of impact company including fair combination financial this in be continued strategic XXXX and of sheet, $XX number statements to a had accounted of change flow historical to the peer quarter treatment to from to XXXX restated Fleet quarter guidance. its year has with in restatement, consolidated for the combination warrants during change approximately exercises its its XXXX, has value accounting warrants balance and significant connection the a Fleet's us of XL be that company. its M&A. having and will with public accounting well believe which warrants financial corporation to this business SEC million statements growth the April, impact cash historical execute positions on The strategy issued with including full company and earned adjustments. warrants. its years, response private raised of extremely XX, an warrants. not on of SEC by been over several of forward-looking liabilities for to net The company. or our isolated as historical from accounting believes SPAC, the warrants XL apply first forward-looking on the no also with account accounting next by December, which our reporting equity. These The the will treatment $XXX for be cash our placement public our proceeds business regarding on few XXXX warrants potential the be and operation completion the period believes the operations and XL fourth and warrants investment non-cash

these warrants on outstanding is as the to and During restatements XX, and Fleet’s XL XXXX. ongoing by at no XXXX, no remain expected plans. first impact non-cash were entirely of or March public public operations exercised of warrants impacts the quarter holders, future have such, their was business The

So, our now talk going to I'm outlook. about

update lines the to I'd of an like outlook Q&A, provide opening XXXX. Before for

noted, to continues Dimitri interest divisions in grow. As all

the to shortage of impacts However, the pandemic production continues in supply board as the borrow markets. chain well as key place. remains ongoing in Across automotive friction market COVID-XX industry a as

half continue in as for have goals to of many and have year improvement their system ability to July. continue we the of second more refresh their in budgets done our those factors seen visibility [ph] continue the uncertainty, customers While

of have orders the a seasonal the quarter, that half the both in our in discussed of As shipments pattern second commercial we'll significantly fleet year. follow

As XXXX with a revenue realized in year. XX% result, revenue be year to second our total than in our significant half weighted, of last second of half the more strength

Dimitri be expect to back for price this post-COVID our a impact seasonality related half more to back in year even of COVID XXXX. it few as demand with vehicles remarks. now a costumer commercial We ahead the stock prolonged closing will and realize our of of significant deliveries continue I majority revenue pass year to the

Dimitri Kazarinoff

Thanks, Cielo. challenges are and we providing sustainability remain Industry meet reliable executing our remain, taking summary, performance our In customers electrification focused solutions with not their that requirements. we for the eye strategy, that but Thanks off innovating very this commercial industry. meet mission the business, fleet new time of solutions much the electrification reliably the technologies afternoon. and delivering your of building needs on

lines up answers. questions for will the open and we Now,

Operator

Thank you.

Please Genuity. now ahead. first question go Canaccord begin We from will [Operator the Dorsheimer The Instructions] Jed session. question-and-answer comes with

Jed Dorsheimer

I cumulative Hi. question. Thanks systems, look didn’t part I any of systems, change they systems as $XXX,XXX quarter-over-quarter, for taking revenue? at my there the Dimitri, guess, in the sold new were if so

Dimitri Kazarinoff

little a Yeah. total X,XXX. over statement the according revenue Jed, shipped to some believe referred in XX just our to [ph] I first number filings we quarter a and cumulative the that over in

So, to it we increase because light But deliveries. quarter. was expand the a of continue modest

Jed Dorsheimer

I figured much. as

congratulations the So, And thank then, you. acquisition. on That's helpful.

direct -- will is As to a a their to wrong, that's be of going it. I EV Which I side be the looked business. at a just curious, look categorizing of to drivers but that I'm pursuing that combined the number and EV a actually to it you that that they energy number the is there's I'm me addition or how company's of brings my Ameresco maybe entity question seems at is business? to simply to efficiency something be website in have competitor charging,

Tod Hynes

Tod. this is Jed,

World that project. smaller of One entire of they're might on be volume, where projects or is campus on a advantages mid-sized focused the higher Ameresco an focused bigger

see to And range. electrification kind XX, facilities medium sized XX, maybe smaller of many of the buildings, so we in that where XXX are vehicles fleet occurring

power lot that to at A vehicles the well very designed do fast storage so, constraints. XX a that facilities key and process. they of have add types up the electrification as of we charging have to on-site efficiency see -- can chargers And And these kilowatts as piece process overnight for those fleet They efficient quickly. is have solar weren't quite or XX great projects. of X essentially implementing

as a profile as buildings, faster infrastructure, as lower well at the to of incorporating at solar, try which energy upgrade the they use and add to really efficiency, than those fleets expense if and So, the were charging electrify enables significant can storage, the well. to take power and cost time and building, looking

Jed Dorsheimer

question, to last business. stick any just the seasonality with you that Got trying for look the in guidance, to then, And as of you relative curious how if ramp provided expect Are in you. with the I XXXX, -- in but for had color thinking in guidance, color That's Just during XXXX provide year. helpful. the just ramp the Thanks. just for -- to I can it. terms the terms expectations hockey framework. frame of at guess, terms to be a three on wondering, we the more what XXXX the I that you the the of about XXXX? know we spec a without of of lot should bit mean, year-over-year

Dimitri Kazarinoff

that I take Yeah. Jed, again. one. this Dimitri can

or in loaded expect expect that even we this As back Cielo in the be that seasonality be we pattern sort fact, of half the year. COVID early, to again of ongoing order because orders. of And mentioned, half that's the to closing a majority revenue the taking challenges first We've their And pronounced. not OEMs books and of related XXXX. industry more even seen

been of our see for COVID, issues our months. think At that municipal with to of lot the over customers budget some be of there's the they're a to we looking relief vehicles. are So of customer's and to had budgets alleviated going get of lot couple are number a of they've do to we who pressures going time, next our on know customers, new those disruption And ability Xst. same July a because systems get

shortages the at the year. half in still disruption in industry factors of us terms of degree things in to second like of or help the chip high a of that rubber the lot uncertainty a and There's the level of could there's So, persist alike. from work shortage

time, uncertain an much than still we to do the it's half see better So, first. but visibility second

Jed Dorsheimer

I'll queue. back Thanks. jump in Okay.

Operator

Greg go next [Operator Instructions] Lewis Please ahead. comes from question BTIG. with The

Greg Lewis

little XXXX, how the think a on to I bit how think any to And or on talk kind just expanding the mentioned Hi. if pace expectations opportunity about a charging, you is bit about guess there acquisition. accelerating. you the know that your on think of don't revenue, maybe really Obviously issues, this of EV XXXX? as or in XXXX little the et be just want XXXX? Thank trending guess you some Yeah. as thinking But opportunity XL Grid how of given everybody. afternoon, and as I that that's But in I color there. little EV I you're And wanted in cetera. you congrats dig in there's good to kind we a around to way business, any whole, about seems that EV side, about supply a the acquisition. bit, then, charging about tracking core just XXXX or of the build-out. some beyond w

Dimitri Kazarinoff

Sure. Greg, this is Dimitri.

operate. the very In strong relationships has regions and of a in Energy base they utilities World acquisition, business, customer wide with solid terms the really

sustain opportunity opportunity got the And more And the we've a widening pursuing. that give lot some suite in been So, industry is relates keep we and did moving the there. color as is offers we on Grid And especially business energy year forward upside, there very XL potential of momentum what think we've space little of a Tod the And of exciting. a can that it think they last and have on XL to side. they Grid. combination to

Tod Hynes

the December, resources was the plan we the see the when great had brought and being about and timing mean, part the I with close bet. stock transaction we XL ton I December. close a together essentially Grid -- of started Dimitri. mean, business transaction really and our Thanks, It of that we it definitely a put in we the of business resources.

division. moved some building to great that on infrastructure already team up bring leadership we quickly on primarily senior So run been focused to We've that larger projects.

deal really to about size if UBS the it's World demands fleet the capabilities internal deals, large can to be going the stations, process. long on which on very that medium a we experts been of working the of the smaller help great but to are I a we so multi-decade electrification, run. us set with a see the brings and facilities, implement similar a team announced thousand Arena mean, the So, products charging in bulk think is where you we've

talking You're stations facilities, lots XXX,XXX. committed charging by to of about hundreds thousands of an of administration over

of portion business. So, diversification different process supply be -- we it's is also the the think business. some than of to a has a powertrain that it's great it part risk, risk chain on the on much electric going because market really Then

So, it's together or so electrification but make fleets, fleet great fleet we the small combined those programs. for really large, combination, can as easy a electrification I it well think two programs comprehensive of really as large

Greg Lewis

then, more like New in England. there that -- And focused the sounds just regionally been it historically company had just

Now family, their or that segment it's at the to of is the more part there of expectations that least level? going that expertise take national a at Grid business, we're XL

Tod Hynes

is This opportunity. definitely ultimately national international a and

built they've the leverage bring we And in and already U.S., capabilities basis. business a have Canada. national to footprint regional on U.S. Canada. in good their the expand as across a more So, and business well will as great We the

Greg Lewis

some one you demands for the the the Clearly, mentioned, for you release just press mentioned, first some me. in in prepared systems. the to side and more potential the EV started up all on of then -- And remarks deliveries show maybe municipal

about between XL ones municipality the about kind company are to looking lead my we EV does are the that times plug-ins currently there? an convert the at looking need ready that the all to times, new it a vehicle I being solution, solution differ or EV notify and what of lead think versus whether -- As for your

Dimitri Kazarinoff

Yeah.

that I'll EV in product available still -- Greg, deliveries. currently so they're for development, Yeah. Dimitri. -- take So solutions The production not one are

definitely do hand some offering And going strong to expected orders additional and North in longer. so, the have that's that already that America cities those in are be refuse has -- lead announced, in XXXX. together times deliveries there exciting. interest but we've classics had to I'm Curbtender are been we're that from We for very putting with some

we're normal to in situation the have for with the of But and of from So, do to the where lead as well systems, ground. for model can customers can The some in flexibility sense. the on some a right working to new hybrid already upfitters business products kind fleets, time to the have from weeks, the our disrupted to XX to now. longer. situation have which significant plug-in deliveries and whole in with XX we vehicle delivery hybrid and existing retrofit disruption typical especially ability substantially lead that time orders is as in upfit as OEM lead shorten released is do now lot vehicles a respond, also our of now and time make lead the the especially and also vehicles be the in for time cases, right customers the We that OEM area

So, lead times. the of the that's of picture kind

Greg Lewis

Okay. Great. for very a time. night. Thank Have much the good you all

Operator

like the question-answer-session. Mr. back to end gentlemen, and Dimitri of have the we for remarks. I'd turn call to closing Ladies Kazarinoff reached the

Dimitri Kazarinoff

Thank Fleet. XL call much and for day. for your in great you in a very Have interest participating today's

Operator

call. conference today's concludes This

for disconnect day. have you may a and participating You Thank lines. your pleasant

Spruce Power Holding (SPRU) 18 May 212021 Q1 Earnings call transcript