- Earnings call transcript Q3 2022

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Operator

Good afternoon, and welcome to the XL Fleet Third Quarter 2022 Earnings Conference Call. All participants will be in 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 third quarter XL Spruce Power; With Executive Don Klein, of Eric are Officer. and Fleet Fleet; Financial of XL of me President Christian CEO Tech, and Chief Fong, today Officer Chief

we Investor discussed can Tech. and be Relations The in this reference. to to the as earnings filings. except Eric factors risks includes of page that measures With forward-looking to the press U.S. of from considered press are in expectation call afternoon. statements. the and will These the our these Commission law. forward-looking statements which Securities statements. timing to of call related control, GAAP cause hear equivalent you shortly. statement those future, expectations, which outlook copy no we posted Similarly, Report is turn Our forward-looking and of which found that are our many non-GAAP implied regarding statements refer to today’s Fleet’s other some We disclosures today release our control processes you this our this company’s release are Form and XL has reconciled subject beyond to our actual XX-K, financial issued to website any the will our expressed that, risk Annual Exchange statements afternoon for update in which differ on undertake revise over or of of the the and speak required will uncertainties, or predictions our may been materially statements, We or to forward-looking the A the out obligation impact by discuss release, call I of are in results maybe by could

Eric Tech

was acquisition create for path balance tasked to company's the I in last and in help and all forward XL One, leader a our And attributes was we assess Spruce company a very transformational three, to do. in generating by us this And utilizing on positive had I the our everyone of we the EBITDA. execute efficient on on what we making am impact for for main M&A. joined growing to and and an the communicated three Power. maintain determined identifying proud I doing current announced mature for of I Fleet call for position potential the best December path today. market; as transaction On looking and we’d deal. Stacey. When we a that two, team XXXX, by Board stakeholders. joining thanks said position Thanks, the cash to on business sheet value the several September I XXth, and most significant the exactly decarbonization; quarters, were executing we've a communicated identify a

walk search we're through Power many the our and extensive meets, what in each exceeds ways, Spruce and targeting process. Let's how aspect in

for a an making First, impact decarbonization. we look business on

that power easy reduce solar, to ultimately for residential of come. to and their aspects a advancing Power mission every more and power it in homeowners current footprint. reliability of to change wakes make The leader customers lives, to XX,XXX carbon energy, electricity is for for grid, the today, renewable the critical transition. As solar company's the sole is energy embrace Spruce company’s generations utilize up to than a improving everyday customers help their day The

mission Christian needs opportunities And solar operator next has well Fong Spruce, and fast it acquisition to the in be now growth a Second, excited largest in a is extend leader Power level. the business, its company's we look leadership capitalized for U.S. elevate with the And company to the and the market. held done where of company's does the positioned Spruce it growing mature at Power residential strategically platform, of as in resources the our was team the residential position for the privately more I have job ability today. entire growing solar in the excellent and scaling to market. couldn't what Spruce an this transaction to

generating for Third, we a look company EBITDA. positive

significant Spruce cash be to our of flow of and acquisition with company for the With a EBITDA backbone steady Power, further generator accelerated growth. a strong we

customers, Taken combined make subscriber Spruce reflect together, million. Power with of multiyear XX,XXX monthly total payments commitments, our value roughly to $XXX

in delivering of other Beyond forms successful these attributes, value. three we're

after cash of balance the million is business power on change sheet building the scale of company growth, with of on the by achieved the $XXX step completion date. to to with Specifically, the the growth left armed deal, the execute

installation, to work valuable aspect that others average mid-September. has particularly supply headwinds. of where are established, the let since has and roughly that team that faced you one been Spruce’s already the to. transaction that With we on I than risk exposed chain. XX parts is Unlike this in been chain of days what significant in reducing months, others Additionally, the valuable we when have who over in lower take the in and supply completed, chain business recent announcing have transformational find reliance been particularly in significantly This all are directly solar in me its procurement sourcing supply involved up supply tell industry,

integration my This wider procedures, and team his First daily the been Fleet Christian help have of and assess smooth with I to importantly, ensure collaborating opportunities, and trajectory. and policies, in armed capital the growth to that now team to with closely to the a transition right especially leadership platform. most includes systems extend and helping resources work Spruce of gotten portfolio the accelerate needed is to growth We've company's and XL reporting. also

working we continuing to time the I'll CEO smoothly XXXX. Power our already closely the at Spruce with that, the forward transitioning my of be and role are company. of that by to team discussed announcement, quarter the As of Christian I efficiently ensure collaboration first ongoing And combined my as Member of in Board as occurs a transition as role to look possible. the

Second, we previously combined strategy the the company's better reflect to rebrand our announced and company direction. new intention to

and week, important known to to Just excited Power a Spruce's to Spruce Holding solar of industry. in to upon Spruce to in position forward Corporation Power, extending and well-known announce as was advancing the of as be Spruce our look we company's intention standing operator as the our a knowledgeable were brand residential rename company it last We felt and rich the the long history as assets, build leader owner industry.

change ticker symbol will to expect also Exchange ticker As York and XXth. under Stock on on new the begin SPRU trading part we our symbol of November New this, our

our this continue Third, XL to acquisition, as explore process. progress Fleet’s for Drivetrain I'm business. the the the announced alternatives of strategic we with during on very legacy we time pleased

Defense future technology in discussions drive all-electric of developing mitigation We a been being an new tender parallel active These of active alternatives we idle Investors the remain interested vehicle. We the the parties. to curb work activity lane this projects, our development to with are best anticipate calendar refuge explore detailed with advanced including more and these following year. before announcement while projects in for able several our have -- several for make end endeavors. of Department work

further so the XL is importance in valuation this And Spruce financial the to when over pleasure ability on to early outcome Power a I business with pass step do exciting and next review pure to Power this and Christian to we expected that, position final and proper strategy, as Fleet, I we the market's Spruce remain the play platform, assign significant process to transition energy keys this With of distributed it's conclusion I my not to to Christian? opportunities our this executing the company. understand of the for the see expect business. platform. our simplification our for turn While it to Christian, to committed process. drive to year,

Christian Fong

today. Thanks, be you Eric. again with to great It's all speaking

the spanning Today, excited near Before privately many success we're ahead. is for to our to current and built more enthusiasm who with focused a I on to has several since assets held Eric's Power a over operating you I behalf have XX portfolio introduce like of owner we've by XXXX, today systems residential for states. operator solar was of for And echo owning which of and I'd CEO ago. I to than acquisition created Power what customers decade the pathway opportunity take positioned became of we in financing, owning has I'd solar installation, rooftop The in are, residential like the Spruce residential Spruce the were footprint Prior continued of emphasize solar. We've strategy We rooftop largest company weeks in begin, homeowners. the long-term. the the express Spruce different to Fleet, and XX,XXX managing subscriber a to over and XL and experience and U.S. how excitement on

measured backed Our contract for solar This not decades, make assets flows and period Spruce or months, structure or in in our reliable which agreements payments just either leases contracts, power a cash or subscription-based production-linked long-term years. highly in monthly by customers to PPAs. are over even quarters purchase visible allows

makes industry using average than rate total, time an particularly contract renewal a growth of doubling strategy. total and by is venture rooftop approximately our $XXX carries more in of assumptions. portfolios, revenues smaller of life solar unique We've years, XX joint portfolio million subscriber customer standard over Power discount this XX the remaining What value, represents subscriber XXXX, successful Spruce in number and and acquisition since Our of gross driven primarily been interests period. a X%

opportunities to systems, customer an exhibited that business. professionals built model, has be strong We've already identifying those sophistication systems operation assets up a our exceptional returns our in This of to with growth operational are patient team and customers With drives that experience; have to pursue that low only strategy long-term operational and an of generating discussing minutes opportunities acquire drive and we strategy. on as platform. us to delivering M&A hit what contracts, industry attractive pillars: We that This take detail we the a value the few increases strategy safety We stop fit for an as core are, the contracts. executing specifically through But there. their on we EV of excellence home who mid-teens, systems of way Spruce margin to with returns small the our electricity; and years the reminder I'll growth our in customer attractive ensuring that deals time do With the direct Power's into on levered is chargers. XX those transaction three a want I series us including remaining first record I don't want the this to customers leading equity power to on gives deepen of of the we partners, average later. solar do post growth add it such over Rather track and IRR offering profit Spruce sales, products of PV follow that to channel than batteries, by sales. additional which relationship. producing

industry are us. everything is customer any leading reliability good experience. consistency, business, with And an to do. first experience and trust. a Our ensuring want Customers customer like customer root we every the experience of To we us includes pillar at have good service

need customer and highly changes. a us that customer in we're with better. where experience. That's While foundation technology, expectations it's responsive in technology what customers often support puts Because of toward to have encourage strong the be to improvement us one in in and customer to that and drives to recognize systems dynamic be the that people strong is invest to the foundation I platforms We the corporate a leading just enable to in a mission onshore industry to want one important of this A in now find market, place, our place, yet we have continuous ways way policies continue we team evolve. and and communicate environment, example in service. -first

center call hired times. launched our a by recently driven with staff find And identifies and example interact shorten the streamlined It media areas support solutions resources, of we we're By how have with Chat and of Service With company. data customers to we've to great wait is for for our a improvements team social our XL’s customers.

satisfaction service our has Our what to foremost, monitoring track performance we our servicing so in and best-in-class Houston customer customers. direct including are as team and based key metrics, My first several team know across metrics closely industry I measured the and rising means. the surveys

rise By XXXX. of and to Our satisfaction just that QX Service score highest began allow XX%. And satisfaction Chat, since in it a Issue Resolution measuring customer QX for out we was First with closely October, Touch changes in saw number of over we score the to rolled customer level XX%

the customer to And look the toward know organization initiatives reach Secondly, wait as and times every team of be XXXX our resources and for positive homeowner our And be shorter of well experience XL having associates yet accelerating inside problems. resolution the company. we single we can one better customer perception experience of outside the are as brings a goal faster support we one.

often Turning have weather to by what delivering using QX, our data production measure generated our to hours. performance XXX.X the performance comparing second to In million produced. ratio weather-adjusted called excellence. Renewable pillar, companies portfolio actual owned megawatt external operational production, systems excellence could a power our ratio see

XXX%, strong asset performance evidencing capability, Our performance and and portfolio. was was of our the efficiency a weather-adjusted QX XX% ratio reliability our ratio

growth third Finally, our our executing pillar, strategy. on

M&A is sales their engine. a homeowners through strategy other its Spruce's growth our own to portfolios subscription acquisition of than technicians, by companies. or earlier, with or at installing driven seasoned noted a of paid exclusively Rather from the function systems system growth one time As them selling force is

a has drive of track platform. growth successful significant team accretive record long that our to M&A acquisitions Our

importantly, expertise might maximize to the lingered once on service onto execute we platform fix that acquisitions, have team efficiently previous the efficiently problems systems and has integrate experience our as ownership Just the under then customer. and Spruce returns, to

remarkable at in the a look September, increase adjusted residential Following $XX.X solar of of in Spruce XXXX, other a $X.X these invested projected the of few equity is these we XXXX options interests in a in of back Power occurred above the Spruce value then There Half out cash. XX% to buy are million got exercised about XXXX. $X.X the million PVX that the Fleet, late to to or the IRR for contracted transactions transactions approximately and six beyond remaining margin ways value XL about million transactions, EBITDA add is early unlevered totaling portfolios work. And the for $X.X to our sale November in projected occurred million. Power half team XX%. and in increase

in cash small, proof too acquisitions we get negotiations, bilateral it's concept looking to quickly and though While work relatively over these or all when deals occur. acquisitions. are could systems XL’s accretive it's know back early of We're might that with at portfolio to XX,XXX if larger

the now solar residential and Spruce what market to impact Turning seeing to in the we're Power.

is in see accelerating inflation is our of We strategy. a actually upstream solar. this continue from to strong is increases growth hedge driving three Growth continued consumer the installation market the growth sense, prices utility economic electricity In main going first further natural which is demand driven in at dramatic to level. by where benefit being factors acquisition inflation, solar residential and

battery sectors increases of where household home and parallel of and electric electric smart an rapid grid convergence on average It's by about XX%. the example of long-term to pick Second, costs accelerating adoption together. systems, the existing a with which benefit maximize in coming vehicles home upgrades enabling storage electricity can are solar sector generated vehicles at Spruce's customers of homeowners consumption reduction power sprucepower.com. pair power. solar already power and And of third, system variety

are we headwinds. a that retrofit drivers the batteries growth underserved is market. Spruce, couple to addition existing which Countervailing these exclusively an as systems, see For of of

professionals. of nationwide maintenance for That's solar or the First, emerged labor, time deliver and as slows our of items there's partner's a to maintenance new industry and residential bottleneck shortage batteries. skilled local installation electrician a routine

systems legacy in networks portfolio transition our sunset on XG. the with We're of upgrade XG networks. with is about homeowners our through over to in halfway to systems. cell multimillion and data the oldest meters depended systems ongoing Spruce the portfolio a of most XG impacting transmitting Secondly, The have U.S. through of dollar upgraded XX,XXX

the all We we end place upgrades and transparency we capital about one the upgrades of have sure when source almost there's for on make adequate availability a the customer a transition the to by to gets Back are our macro timing and our priorities, system plan upgrade as with want XG now complete in of next to expect are Spruce both service XG upgraded, interactions. don't few XXXX. that see quarters. and XXXX make robust of with for top fast labor equipment the meter These And reserves over environment final changing allows. customer as and customer moving to I'll regard note this credit.

the Economists lower there slowdown of customer is seeing in own at walk still we've but the any our we resilient. and been making Klein customers And making consumer whether it Spruce still under team in internal is our strongly payments. a contracts. improvements we're And in seeing over more making delinquency Reduced seeing good pretty aren't and that to flow financials. in recession Spruce, of recovery through rates. delinquency form context XXXX, through seeing credit to Don turn note, all As are trend headwinds, I'll PPA fact, EBITDA lease in cash is on our are customer debating spending adjusted

Don Klein

Christian. Thanks,

quarter Spruce quarter million million, of the and XXXX for third full $X.X benefit established, quarter as the the a Revenue closing from days for reminder, Power year. and following With fees September the legacy $X of of in through XX million administrative XXXX operations, quarter included from acquisition. XXXX to and of operations. results prior quarter and year Spruce the associated second full of million in and compared the and to company total $XX.X third third As million, totaled in $XX.X of our million third for $XX.X transaction will included quarter XXXX. XX approximately $X.X of quarter compared disclosed contribution in financial of well of of action Spruce the Power that impact reflect related $X.X $XX.X revenues negative expenses reflect in third Grid, contribution quarter XL date. the the for negative including million $XX Adjusted Drivetrain Xth XL quarter Spruce Beginning investigation, our for going as XXXX to quarter third Selling, contributions to XXXX forward, the previously Power. Fleet’s second fourth approximately quarter. in XXXX EBITA negative SEC legal and expenses from costs from class million totaled $XX.X quarter, with last days the general the million in quarter the prior and complaints million million $X compared million the SG&A $X.X total results

into Xth Turning September million, from revenue results, the Spruce our segment solar $X.X through a reflecting Power, segment September XXth. residential from period totaled

the was the Our totaled our segment million year Revenue loss in segment $XXX,XXX approximately $X.X a Revenue XL of $X.X Drivetrain million, quarter. $X.X segment at $XXX,XXX the of the XL prior approximately the our in basis. end $XXX,XXX of $XXX,XXX XXXX. segment totaled with Segment and on $X.X was compared in loss the in million million the was prior with year prior in in for and or in Grid million Grid quarter, compared loss quarter. value $X.X the Segment customer third third quarter gross and Drivetrain prior million segment the $X.X quarter $XXX segment XXXX. segment a PVX $X.X quarter of million in compared the million with in in loss to $X.X million QX loss compared of prior of approximately quarter, a prior quarter and our

$XXX in as of XXXX, at $XX.X compares Net of Power. $XXX $XX.X acquisition $XXX operations of cash Cash was of quarter The the million purchase million second XXth, Spruce was million. million. includes price cash acquired, principal equivalents million. restricted of the cash, September debt of of quarter balance $XX we cash for used change unrestricted Total approximately $XX XX, cash cash end term for of the the use in of million was long of September sequential and million. the the XXXX. approximately This As had

costs. non-recourse business at fixed average is the profiles and average contracts It's provide cost a for in is before and variable XX% debt approximately cash in, new interest backed Q&A. rate approximately open our we by for industry flexibility leverage an As it until the weighted apple pass noted first attractively sort company's long-term all structure of for noting comments and our is our to of Spruce like with debt we debt is fixed April our closing to maturity back few mezzanine acquisition worth annuity with that a it also debt manage future XXXX, now financing priced senior I'll flows. interest rate operate The in up time X.X%. debt through our Eric not The capital swaps. provides line rate very and

Eric Tech

we've us. encouraged about made Thanks, very Don. progress of excited and ahead we In closing, I'm the about all have that that

Our long-term. team shareholder the focused near over on value remains and creating

and the value months, While to streamlining further updates them. behalf Spruce team, we we've the identify forward improving have Power. Christian we'll we over several a to accomplished the lot, of and be as unlock providing next look busy combined platform, ability we've market's identified hopefully our the On with

felt Before for Q&A, is address our up current that valuation. it market to important opening I

stock million adjusted company We of sheet, with unrestricted a market As disconnect was a for EBITDA. is approximately its approximately significant of of balance $XXX our close, million. $XXX and cash feel trading at this capitalization a yesterday's on total

on platform long lines continue will today, and We term. we to to of unlock over the we'd the open what With the for up of and maximize to our value the resources execute strategy our like that, own to value Q&A.

Operator

first Joseph question Osha of Guggenheim. comes from Our Instructions] [Operator

Joseph Osha

the going of I on apologize, solar focus to So I'm side. a couple questions and

and just So that Christian, PVX, or XXX, is this is contracted contracted? renewal

Christian Fong

renewal contracted both peers Thanks PVX use. Joe. same using The metrics and for our is joining. that the Thanks, XXX

Joseph Osha

kind you makes sense. and Yes, that I of comping was

X.XX, net, XX it would I am get to I there? like the XXX, I just -- out right So plus got you've and back wanted then to number the non-recourse X, looks is if total

Christian Fong

about X/XX. just And hand. as amount XX, you're we on -- of of talking up if then the net you the then debt? that's Are You would off the debt, cash adding the

Joseph Osha

and you've of No, no, of long-term… portion million a long-term got good $XX debt then

Christian Fong

it. Got it. split between. It’s Got Sure.

Eric Tech

adjustment Correct. debt There And for footnote. accounting. an purchase the XX-Q is has a

So value put or at put on on value. the fair book the fair that’s is books the

accounting really you delta look So that's a to so there's nuance, the balance an at principal want so.

Joseph Osha

Okay.

in XXX-ish it's So there. net like

next I just Okay, before. guess you said to question My I confirm remember Christian, fine. that's had this

You assets? going focus guys post thought want evolved are that to at on continue buying I flip Or to has to confirm. all? process just

Christian Fong

getting Yes, seasoned And the that's been assets. we've talked really about focus.

Now, by looking at things that are post acquisitions. flipped, they become the most streamlined

with So you be to don't have negotiating equity partners. those tax

our of those did prior acquisitions, has among line within XX, we flip sight. the However, two maybe buy years, things often or were tax to equity just previous that one and

than So most but the -- strong of flip, negotiations, the of actually, bilateral of in that them are majority them more are of XX,XXX some flip. XX,XXX post were pre

Joseph Osha

you the I'm that sure just just, deals, as you put priced at Nova curious, saw capital taking approaches deal look assets tough, how then GoodLeap account, at you about talk And new into pretty around of bit you new kind that a So, point? can and I'm know, this of whatnot little right? structure,

Christian Fong

done availability we're -- mezzanine and still seeing would are as those step our senior that non-recourse put as at final level. robust me just debt the well and asset back as capital, current let Yes, the senior debt, structure has on of we debt at structure

do would forward a me on the let go about what not call basis. mezzanine on talk So we this and debt

priced be GoodLeap talk known us capital of the they shouldn't But our just capital is we Certainly, of go real not that what lenders. seeing be exactly senior that dissimilar, are for right now. concerns from some where public the in not and the we at. counterparty a are we we're let's side, say ABS between talk what's about and it's price deal, we our peers believe as question robust no we're debt, senior think debt of looking the more the what's I markets the are available available. is you that into at, would shortage the on pricing have availability not key of I bank availability seeing the dissimilar will and acquisitions But what think I dimension looking that

Joseph Osha

said. on debt. out, Okay, just that, all can and I of figure the kind And IRR the the think portfolios? sort loan, a what the is of unlevered what whole for on XX? you again, marginal mentioned is based you you're now, just say five right then cost on the new following would we XX, half what Based on what know of you and seeing I

Christian Fong

we're live equity that looking did question. -- we related just that of what were an back The but to joint are these Well, the the last in was venture negotiations. shouldn't a it's those great, to that -- XX, had quarter, kind we an unlevered but did tax there's negotiations -- buyouts we having executing, of I are apples-and-oranges speak that, because

right negotiations we're essence, in setting the in market now. so these And

not that a mid-teens levered levered continue to levered basis. But that double-digits, a and actually on give just achieve basis, that the think to number. let able basis even we'll be the loan out get So me we into on a senior

Operator

Bravo] from America. question of Next of Bank comes [Alex

Unidentified Analyst

sort like seen be and guys sort you follow-on was assigned will at And I all rate in the Joe we've a this, do where do like up, you like discussion or are this it quick in about, mindset. and think a it then both acquiring maybe currently, different anyone looking how I like, be PVX think the up, owner, rates endless that Maybe way and about creation how moving Sunrun discount do rates, an than mean, right Does you're assets? and slightly you I using? these make using of buyer investor between discount you about on just industry, but of of an think looking kind how right -- to mean, broad, the of looks as what's assets, what's right, discount equity with sense? value rates to your kind well, ask a broader in going?

Christian Fong

crazy. is is is industry one X% folks And more asset an about things, sense. our Thanks like and that make model What think I a business joining. does using, engine of, both what this. the management that capital that to owner behind should about. of just that The you're way slightly we The Joe sector, think have the asking I it was approach valuation acquiring because think don't you bit M&A is that little asking an actually that can understand it, for should put things that actually sort unlevered are of IRR of the we operator just is what different, you're needs be, might capital that include also the right the

the get it, got because sell side off some has now to we've to ownership our Houston, But chargers, and right own in have of renewals, it. So come ability the we directly operating the that you its economics huge EV center to and acquire we ability when which have batteries very return. has

And all an on it the guidance of using crazy. industry's so not in PVX, when one thinks basis, it's again, about

to it into of capital And the that the it of and watching go adjusting is the and things cost certainly cost breathing those we well. forward a have of our senior be you're returns. basis, to are day-to-day great, basis course, pay continue prices get debt. to those that we And to we're like Now, would as capital living mid-teen on play on things though markets, a of the availability will sorts

the Now, business is model are what to we able that its about price really we adjust pay. Spruce likes

locked we want has to sure peer, cetera. need. may as a simply thinking additional you as that it in that that warehouse just our headline get drivers we and of the flexible returns an upstream to But start bunch when again, capital into come to toward lines, that about value adjust price or things for So effect rates. would make Their be not of ability we have that et point cost maybe I

Unidentified Analyst

an industry, I their I of there's do slightly loans. model listened little the obviously, to what peers going the right? just mean think your as and tax can opportunity mean, attractive set those what's marketplace you people standpoint. wave how from a more, acquire, questions, do and context, of as then on clearly inform forward maybe a far you out push over I that, going sort a go talk follow-on hold clear Like, does ownership think your of forward? about on there's TPO to across towards There's to TPO leases, in upside sort going do impacting towards ability how And in some the through that asset a if and bit results. same for of I though. larger different guess, equity maybe XXXX broader leases guys shift the want that you We've

Christian Fong

to mean, us. we for that's the about started tailwind Yes, I when thinking huge TPO, a certainly shift

have number, numbers number Let just out headline what About some the from we the now, XX,XXX systems our but of own we TPO. me about service out we servicing just broader side, about own portfolio let's that put XX,XXX. is what pull becomes we either or of are XX%, from talk that service

downstream more may like number peers keeps And created just for words, that annual on. that putting of that XX,XXX times tailwind that looking from you're systems the value toward PPAs business more the our just say I'll going this going peers, much model, the is up I'm seeing large more are a addressable and leases, that, we hey, per a those for our we're see XX,XXX continued So on upstream so they it us. as of is the talked think an being these TPOs, moving talking market, just be we're to are about. I basis, what a ratcheting Spruce On and There's the and more very that shift saying, use And is market to because large really to at we're adds peers -- away. and about. year reliance from what good we addressable

Unidentified Analyst

what are scale at want that leaner of to inform you of much asset and that kind want to you then when the last how them, a that mean, sort batteries, want And the know, laborin run in model like mean, are most, people me. does looking that else, but if like, to one I when forward. obviously of one just headwinds want weighed and own space, to what curious know some I owners of looking landscape guys of that, servicing? you and things there's how the think and only you going service color EV sort you like you out, about, to it. example, I mentioned key outset batteries own chargers, resi it know, for Got everything if makes you and you position out I mean, also but for any install about forward to and don't less you the think that sort solar give at being go than maintain can them ones not you there? you skilled

Christian Fong

leaner operations means got Yes, something It in manages has we but lean. someone a certainly can I good it's it's right, of things partner nationwide you group lower scale bet model. much absolutely a a look, local that network we do you're cost, that my subscale Houston, get into that. we've with how a we that market, Rather that losing O&M can keep in money partners, asset peers, the and of that at numbers won't the it's it that to then do than

model Lean our our to certain we is of it mean scale in do a drive The So does in doesn't markets, that streamlined want as we way of cover availability markets. just a see we amount don't as that possible.

in market. states, system talk acquire that available what adding we look the overall about That per dense different into before enables which cost the markets, are us the especially when in and costs in, overall think on to availability keep operating to margins, scale. those the We jump we in So that at partners are keep advantage basis, higher that's those those of O&M being those market, just a markets in selected. course OEM density XX a on is we leads we of

So of bilateral on negotiations, about the margins. have. entirely add continue when markets is result, profit operating in XX,XXX we a forward talk those systems go almost to we over as huge, And that a to basis majority huge to every already going in the one are those

Operator

over session. would Mr. our Tech remarks. concludes I This back question-and-answer to like closing Eric to for turn the any conference

Eric Tech

which much. Thank addressed. that thank as And the hopefully you that we as well people in all questions appropriately the today, some participated those for very had call you

value the demonstrate in platform shareholders have We to ability liquidity, said earlier and delivering to EBITDA, my a that company. can with forward. feel, positive to I market and our you. the look with going other we now stakeholders forward that Thank demonstrated we As in we have growth statement, the to hoping and we're

Operator

conference today's Thank and you now The may for you now has disconnect. attending presentation concluded.

Spruce Power Holding (SPRU) 10 Nov 222022 Q3 Earnings call transcript