XL - Earnings call transcript Q2 2022 | Spruce Power Holding Corporation

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Operator

Good day, and welcome to the XL Fleet Second Quarter 2022 Earnings Call. All participants will be in a listen-only mode. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Stacey Constas, General Counsel for XL Fleet. Please go ahead.

Stacey Constas

you. Thank and results Fleet’s of for everyone to conference XXXX. to our discuss the welcome afternoon earnings XL call Good second quarter Klein, General Manager of With Executive Drive; and Kenhard, Eric are Vice Power XL Technology Chief President Grid. Calhoun, Donald and Chief General me Mike of Financial and Tech, Officer Colleen Officer; Manager today Officer; Chief

differ are speak future, Our call to These required We subject in refer materially of these expectations, the which obligation revise by or disclosures outlook implied you many are considered company’s to update risks of by law. forward-looking this our afternoon which XL statements, expressed beyond risk statements from maybe forward-looking in, to statements results Fleet’s to includes factors any uncertainties, and or as and today’s our or the to no statements statements. We may statements. are that regarding release. actual undertake forward-looking which forward-looking predictions cause earnings those control, except

Annual to release the non-GAAP our filings. for our of to The Eric be on website of Securities Tech. to discussed copy A in this and that turn call over GAAP afternoon. will Exchange press the call are in Commission With equivalent and this our Our XX-K, been measures investor can other relations Form reference. the issued the page posted financial U.S. has reconciled and found we release press that, I Report

Eric Tech

process. our joining today search providing I’d to discussion like everyone M&A Thanks, by Stacey. today. And on update begin thanks us on call for the to an our transformational

and of the comprised senior of investment our I discussed as earlier First, members. committee, institutionalized year, we an Board search through efforts formation this leaders

search are advisors. of We committee to a and advance from team our outside M&A process with involvement the active continuing

our rigor As are kicked off immediate best as when to the that same due long we XL to this the we emphasize identify business the upholding is and year. over continue it diligence the in today, for Fleet opportunity term, process important we earlier

million, to of second are position public believe a flexibility, position, in cash partner continues that the strong exiting the approximately world quarter M&A our class our financial platform, attractive cash us our Second, given an $XXX.X and team. significant company driver’s seat. we We position

Third, traditional us process focus mobility as has last mentioned I of and outside include highly and quarter, XL’s been search areas The potential pursue our focus. the opportunities to for eye-opening process informative.

in achieve include EBITDA. XX to space and And growing and impact efficiency exciting two, on has for over that that evaluated and mature to which have finally, as the opportunities energy including a segment; in clean continue narrow team three, opportunities a our is three the business requirements, that decarbonization; from identified decarbonization. a is company date, opportunities cross-industry a growing and that one, solutions We and wider between. core pool, to everywhere we spanning focus stationary market remain to company generating our our the deliver positive We making an leader contribute wide firmly to tech mobility position to value committed opportunities need in identifying

more year. strategic to confident earlier we sooner a to long-term are objective the position that as opportunity able set rather do We updates and boxes to in providing identify hope accomplishes our forth that checks to in so further are this an later. look these than be we than ever forward ability We and

our the efficient Kenhard our The the business for to to the continue our organization uses platforms. include focus like With business. Turning turn in investing Drivetrain to discussion and year and constantly brief to our earlier term this that near our aligning capital. and better most that, a and to we Mike by of right cash I’d business benefit challenging back decisions growth continue it Drivetrain preserving resources operations, over of we and narrowing business of assess made

Mike Kenhard

to Thanks, Eric. recently our proud vehicle at We year’s this were unveiled refuse have first WasteExpo. all-electric

trials a collection California, route. in gas which our team During on the a following truck vehicle included powered quarter, the ran

route Our all-electric vehicle the with sufficient charge efficiently vehicles our this battery successfully evidencing to of completed ability the remaining service application.

The customer in. are customer delivered demonstration first to has been first unit and come starting orders the

first We are looking forward year. customer this units to production delivering the later

on our time an Department by the facility. remains year. project, schedule the the on testing delivered at end demonstration first team of U.S. Defense announced army for The complete the Regarding of previously team has the deliverables chamber to all unit

sales quarter. Turning business. hybrid The to our for the are [indiscernible] legacy

However, customers. ship one in this already July. with now second the that the is the will deliveries large scheduled of mainly driven of quarter shipped Two in having quarter those by were third chassis for delays

With However, to that, over things as financial seeing market to I’d discuss turn as general are the to team our headwinds business. some is year. uncertainty the the like Colleen hybrid of XL move in over space, concerned into the half customers Grid Calhoun second we

Colleen Calhoun

Mike. Thanks,

Energy prior $X.X Our completed last compared quarter. the and for period World million business quarter, million We $X.X XX energy approximately revenue the $X.X projects quarter million to during efficiency of generated quarter. in the

quarter. cycle quarter, impact reflecting availability backlog material program Our includes changes But which headwinds attributed the team the and some momentum. end to business is began large XXX second project times utility sales to project during significant the project projects approximately This strong at is approval longer and facing of the mix. the delays, second

investing remain number our of utilities resulting increased of focused The stands on continue New business, the to mechanical focus across the company and on a top business has And pursue of from Energy team. national including brought territory. CDO, most with expansion growth capabilities. solar by World exciting new carbon the the reduction England We the their is small in team opportunities for of option and hires directed the grid, customer performing which of

financials. Now let our to me Don, turn through to it over walk

Donald Klein

last in quarter gross approximately related class approximately $X.X and prior quarter negative fees of approximately the of $X SG&A the $X.X and in and and totaled in to quarter quarter previously the second prior year. for of compared quarter. investigation. quarter approximately first of of Adjusted general for Revenues the in compared profit million the to second XXXX $X last and included the million XXXX $XX.X quarter quarter second quarter, gross disclosed XXXX compared $XXX,XXX year in million, gross in totaled period. expenses $XX.X first million action $XXX,XXX quarter million, with Colleen. XXXX. for profit of to XXXX the totaled of million SEC We administrative reported of Thanks, first for Selling, & complaints in loss a million, $XX.X negative compared million to million the of of the million negative XXXX $XX.X $X.X legal EBITDA the last $XX.X the quarter second expenses $XX.X million

had of operations $XXX June $XXX to million, cash end XX, in we million. for of was and compared of $XX.X the quarter XXXX, cash of the used million first Cash quarter in the equivalents As XXXX.

decarbonization. from previously on centered the efficient need our uses discussed, focus resulting around is where the As of most ecosystem remains M&A in growing capital, our businesses for the including search

for $XXX,XXX Drivetrain Turning Segment in to million quarter impacted million in quarter approximately segment were negatively of totaled of approximately segment segment the Revenue results. $X.X Results compared segment loss million was second our million, Drivetrain our in prior quarter with $X.X the million compared our a quarter. our our million, to by the Grid $X.X in loss chassis and with loss second in Drivetrain XXXX. the delays. Revenue $X.X XXXX. in $X.X approximately compared segment prior quarter, business of totaled segment in and $X in the of prior the XL $XXX,XXX

noted delays, $X.X earlier, for a material Q&A. cycle changes million utility XL now in prior Grid XL it was with times few availability for our project to before project for I’ll up approval Segment Colleen was comments Eric quarter. of the in driven loss opening to and results a longer $X.X As by it pass compared back and attributed the larger sequentially million lower mix. Grid segment closing program segment loss sales

Eric Tech

team our strategic in significant making pursuit M&A. of is progress transformational Thanks, In our Don. closing, and

We making and remain and up demand. of our like parts over to to to position creation best key development for including customers solutions would commercial that, With open on necessary that the long value We business, term. the near Q&A. on decisions continue for of execute the now business focused lines our innovations I

Operator

you. Thank

begin will We now the question-and-answer [Operator session. Instructions]

Operator

questions, would there Mr. closing like are I over to Since Eric back remarks. no for the Tech to conference any turn

Eric Tech

Talk everybody thanks exciting with a listening today’s in going this We look forward strategy And for call. to on Thank you soon soon. getting back really very taking to be company. to what’s on to you in we’re updates that you. do

Operator

presentation. today’s conference now has for attending concluded. you Thank The

disconnect. now may You

Spruce Power Holding (SPRU) 9 Aug 222022 Q2 Earnings call transcript