SHLS - Earnings call transcript Q4 2021 | Shoals Technologies Group, Inc.

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Operator

Ladies and gentlemen, apologies for the delay. Welcome to the Shoals Technologies Group's Fourth Quarter 2021 Earnings Conference Call. Today, the call is being recorded, and we have allocated one hour for prepared remarks and Q&A. At this time, I would like to turn the conference over to Ashish Gupta. Thank you.

begin. now may You

Unidentified Company Representative

be and are call everyone, Jason with Garton. expectations management CFO, operator, statements other today. on to based Whitaker; joining risks Hosting Philip current will call, this the me assumptions, On projections thank you, or for forward-looking which you, and us and making subject Thank are uncertainties. CEO, and

are filings the as conditions, comments, COVID-XX not Exchange guidance components results. with the could and for policy our other listen and project and if the results, regulatory and because that include, disruptions, understand factors. things, or you and or Securities products should availability full-year cancellations, of of any well and incorrect consider decreased 'XX circumstances, guarantees These of these factors XXXX the industry performance economic price our Actual Commission regarding differ and company market among performance supply statements, our As chain changes. first the financial materially of our risk quarter factors pandemic. including forward-looking in our materials, as and other are these results and demand described assumptions from statements

the assumptions results contemplated reasonable, in Although financial we includes discussion this forward-looking included statement indicate prove any no that any the the and non-GAAP this discussion presentation to undertake be assurance forward-looking be is not date Today's and as believe do duty any that of statements. therefore, forward-looking the to in measures. statements caution We incorrect also and of made may realized. the statements are the or of references underlying that any inaccurate could assumptions there will can forward-looking update

historical quarter turn Jason. contained that, measures in me to non-GAAP let With and refer to the of press reconciliations the fourth to call should You comparable the measures. definitional for information financial release company's the information over

Jason Whitaker

commentary some up of financial and see margins solar our in will on evolving market results our and Phil fourth Now XXXX. this overview with about the the conditions current an talk for year. quarter how outlook for I'll wrap we give our provide then

continue quarters. to as-you-go of system half first storage, to the We customers hope BLA, more was plan. from We certification system. to the battery customer on expansion and international which progress products second shipments plan from We majority up wire quarter, we're in and system of the than last a has and our XX positive. grown EPCs XX additional of combined has significant projects, year. to we're the developers first quarter and in revenue solar and projects several quarter last year. to and coming third selling EPC convert for following believe of the introduced an continue to the we products XXXX, have more in than on projects the solar using our hurdle been our XX, month, months products plug-and-play traction Since strides the we We've and ship During the fourfold the harnesses the benchmarking BLA eight we negotiations number to use that high-profile EU. first new last expertise orders top significant for Outside process also of took launching leveraging XX and of their in our announce products IV year, XXX made dedicated for generated customers we received our our throughout and advance in currently received to in Last expect that IEC ago. feedback our orders the BLA, acquisition. to transitioning We're ConnectPV making thus to X.X our incredibly we megawatts in this fourth see received far starting solutions of begin in coming of storage products from battery BLA our weeks our curve high-capacity the management

fully looking team as And start to opportunities year. a result, backlog expect Europe, We have see products a LATAM. in sales this and our team to our at we've building build we are We're qualified. place, and started now also beyond in sales

with a Now quoting turning quarter seen core our interest a solar strategic great products formed We with the volume. are the business EV first A launched our the and newly is example American EV and We active agreement Luminace market as a to tremendous best-in-class, our business our signed as fourth both of in solutions in decarbonization a have the business. level our charging. charging and our comprehensive and MSA year signed We're solar, November, that ramping see production demand. Luminace, charging, Brookfield combine recently generation to of high-quality between products we with first energy-efficient in service increasingly shipped through with to customers we'll quarter synergies North and EV as our business solar us up to our to this February, in provide in operator leading-edge also be our starting e-mobility of Renewable. point meet opted second of EV solutions. planned collaborate the storage charge platform to distributed

leader have industry to to excited vendor been Brookfield are about partnership an are We be this selected and like Renewable. to honored a

across lab like customers products, our bringing launch our the best-in-class in year, convert having the important solar. The the Shoals is installed this of introduce enter experience EV to just And we of That and was backlog to customers. to end had grow year-end will orders to million more we the a and And Center, our XXXX. it to double manufacturing new did Shoals production in that in is engineering how growth, put has we're awarded our charging QX center to momentum To what was going our at deployed support customers additional our European our and continued vehicle than nearly that to opening Innovation products is innovation be XXXX. will win team charging living work at electric expanding BLA, new business perspective, is XXXX, capacity. enables EV to in accelerate solutions. in unveiled we more and did and and business. underscores market growth an sales $XXX facility demonstrate building to the tool that an number Finally, that XXXX hard we which eMobility earlier twice We're

push We expected from of our had a our receiving were same with primarily the of in And Now shift several no played as from turning modules meet we being other at shift experiencing tremendous the to result orders, delivery time customers timing revenue as capacity that quarter, some of we customers, to vendors. in other noted push their that we largely outs as saw would add so delays current market fourth quarter outs out out disclosed XXXX. seeing is into conditions. to or for impacted Last others, pushed date the the of revenue their from some projects manufacturing has so of lost. What XXXX much were those being growth required from revenues equipment cause they expect to only demand. and the orders we we've of had we that didn't

a contending means the Demand we is but within our quarters now. while wide have and by What know to with about gross sustainability margins, significantly is overall making that significantly some greatest many margin So in challenging chain. their And particularly rate remains is think given revenue our which our uncertainty, to projects will we market compared our of reflects year-over-year last experience pieces us on very compression growth increase in and of for in comments growth. year, that to range that predict QX. timing exactly outcomes asked XXXX potential that margins. to because how outlook. the XXXX going it's of wrap so revenue our right of Many in exact experienced we customers tried see of incredible, the the dynamic capture QX us moving I'll the solar we've are because up supply you

of to margins is We deliver average the that XX%. range XX% expect gross to in on

different. along delivering impact QX Nearly related price to a value return to our levels our story or of product EBITDA saw related our were to our costs the a certain given in to customers of of on margins gross suppliers margins decision with in of to be normalized from increase one have issues that subsequent chose any the little we XXXX capture able pass margin on quarters. a are lower the The are in a will in half and we will a first supplier in all our continue bit projects. will to way significant over time. That on We not set customers quarter, but increase to situation are to we we the blips mix in where gross

and margin heavily our means which investing XXXX, revenue of decline ahead in are modestly human to as infrastructure when That growth including our margins in are will increases. year-over-year it. EV to We international, result capital the we support have absorb EBITDA in that initiatives, will adding we SG&A even gross

price to to I'll accelerate it we our have quarter and believe now XXXX XXXX we However, the growth. financial turn fourth and today full-year quarter guidance. to that's results Phil, a first our will over pay discuss Phil? and who small our support demand significant

Philip Garton

you, Thank Jason.

XX% in our by system. one the revenues Gross $XX increases represented the total mix. Systems the consistent The components. Sales who the gross as-you-go on with in in year decline of margin XX% For to growth demand grew Systems revenue million quarter in of material higher XX% quarter during revenue in The year Solutions prior-year XX.X% supplier million, fourth to period. strength elected of XX.X% prior the the margin XX% Solutions not to in versus and $X customers. pass fourth approximately the reflects of in year-over-year The Systems was compared change combined quarter, our and for in revenue largely strong to related Solutions period. to versus expected components due to costs, was driven logistics in period prior was XX%

and will headcount to general we half period. to $X and change due of we achieved to normalize at was in after The have levels and income in for We Fourth gross quarter release year press reconciliation results. additional compared a the compared prior bridge Please EBITDA to quarter payroll the adjusted the approximately company in XXXX, were increased prior was higher to which $XX.X with compared EBITDA administrative fourth Adjusted initiatives $XXX,XXX for net costs. planned our costs product the period. was a see fourth in what to the million primarily our margin $X million see higher expect compensation, fourth tables in Adjusted quarter support first year period. stock-based quarter million $XX.X of the line to million our of and in GAAP million net prior million our income expenses $X.X the adjusted public growth result new for $XX historically. year

we backlog robust customer for XX, increase As year-over-year XX% an in of awarded XX, products. of reflects versus $XXX increase The million, and continued XXXX, awarded and orders December orders September and of a backlog had XX% demand Shoals XXXX.

Turning the to range of conditions for we input to our outlook XX% year-over-year. team, on XXXX. up to expect current XXXX $XXX and million and million, market in Based customers $XXX revenues to our XX% from be

the net the expect million. income $XX be of range to EBITDA in in to be and $XX range adjusted We million adjusted million of million, $XX to $XX to

we As XXXX, outlook. of for prior are our the updating quarter first

million. range in $XX of We revenue $XX million continue to the to expect be to

we from However, lost quarter to in out in to million help adjusted addition that earlier. million and outlook, be to context million expect provide decrease our the net adjusted of the in to million be to $X income first million. approximately range $XX EBITDA. bridge range revenue EBITDA million $X and quarter a shutdowns some $X million million between wanted approximately now that $XX $XX $X of To first of and adjusted in on I and call discussed weather-related Jason the impact I to in $XX resulted of

business investments, we the and are support our recapture to outlook, which and forward than expect multi-year several serve allow To these our manufacturing new including will shipments our pulling facility, the quarters. customers. our addition more effectively of in double us We coming to more growth manage capacity

infrastructure will to increasing addition, human are the sales several our exiting significant rise on next are as get growth capital we remarks. we are experienced said, I and over this margin closing will growth EBITDA leverage year. our and we that In all that Jason pass support With now substantially for confident it entire as SG&A years. engineering well back as initiatives staff to our

Jason Whitaker

of all thanking by close customers Shoals. to like our to for I'd Phil. Thanks, their commitment

talked to contributions XXXX. of continuous our and the support. extremely progress and and off proud for And on Our shareholders in more And a to couldn't start employees backlog growth initiatives, our their start. now I in open for I'm orders. success for as which We're with look developments to delayed we we've seen we've for for their strong company's our everyone about in calls. thank their forward difficulties, our We'll upcoming excited that, the be about, resulted and our to time growth today sharing I technical a line future the in want questions. award apologize

Operator

you. question-and-answer session. the We'll begin now Instructions]. Thank [Operator

go comes Sachs. question Goldman Brian first Your ahead. Please from Lee from

Brian Lee

talking the I million Thanks about to afternoon. had just Hey couple guys, off questions. $X already you impact the you're a $X million in a XQ. gross on here. to had guess, margin, the start good headwind additional for taking I

math, QX going level the to means how path at a half first the in should more million, I is margin if as in that so, do just the So toward about you're if you it And the in margins of here gross QX. that about Or right normalized which QX? the of Is in second a ballpark? cadence total the be think trough half? XX% in margin we and move improves $X

Philip Garton

one, first kind I margins. the half in grow get to in second grow This provide what the will up exactly take can second be our back levels the margins expect then have we Brian. that And this we -- work give of Gross will guidance on we not going arise. the Phil. lowest to quarter After since is don't the we business, of expect it year quarter. I'm you in been. historical through to approximately gross

Brian Lee

of high historical XX the you be narrow the for the be are I it guys with to XXs, maybe levels, Or plus. been Or you you've are Can us to mean, a planning going been XXs? high in to so kind And bit? you what you down have you back thinking second pricing XX is assumptions it you're that of margin your quantify raising back to level And with path? as in gets to normalizing? plus in you terms respect the kind of normalized What half? cost the the that it? get on Is you normalization it visibility little

Philip Garton

ahead, Go before. Jason. said I as which Brian,

Jason Whitaker

Brian, is Jason this here. Hey, Whitaker

Philip Garton

Jason. ahead, Go

Jason Whitaker

related said drop not aluminum. kind we time look we prepared it Brian. because provide right it Pleasure going from price, margin my to increase and to that, it to to And to to pass was customers, like Phil. copper based to do a because on one remarks, price was at our of with ship, directly we're QX, we absorb made direct to drop the on take, vendor. you result, was decision speak I'll to the looking that upon that average was the particular almost at an predominantly stated, again, of that didn't When profile directly light it you feel that I literally thing that's the as or in in a in XX% as in XX%. And back

be one it's things a perspective So significantly with the relationship our short-term for we partners. to pain long-term of definitely consider pain from

Brian Lee

what guidance higher you percentage is but Okay. Last it's on QX your versus my pass me, for Fair QX, if right, provided math the just obviously, is saw -- If guidance. the of on margin and than enough. kind margins. gross run EBITDA one percentage math Again, QX in QX, it I'll for margin you in on. the down is

of Maybe there is a Phil, million can end in the here? And QX? then liquidity. quick revolver, on of help at sort tapping additional your that? cash Are you QX. $X the adjustments EBITDA what's kind reconcile of you. balance comment the Or on So to Thank you position

Philip Garton

but low, we're of yes, end tap relatively anyway, I quarter your which a the of as you means growing time, QX, production the which the relatively the on during fourth as necessary, mean, And business, as at -- can is issues are weather revolver they go receivables did coming is We holidays, a out fourth into holiday us. coming kind consume were that. the know. cash. the quarter lower how the And impact and I low in bills cash are the pay of how the lower, we But collect you little and at Remember, look the that's figures will so margins depending mention year. always

that's year look is the that, And feel this are -- at And QX, the growth, valuation driving it. to expect as for but But in business. cost that into through. investment EBITDA down And we the this as growth impact look I out to business the item on the the we investing And of rolling our as we're because SG&A we do this approximately so slightly. right have think we're guidance. only looking some to is that the why -- in that's we not as depending future. so we're addition in it's at And in and but investing dramatic well will investing great our adjusted XX% the absolutely opportunities weather thing the far which the there year-over-year, annualized worth I CFO, -- what between XX% in is

Brian Lee

the color. offline. Got Thank you. I'll it, appreciate it take

Operator

Thank you.

Mandloi from Please Your Credit ahead. next question Maheep comes from Suisse. go

Maheep Mandloi

questions. good for everyone. Hey, evening Thanks taking the

just on First the wanted with and reconcile backlog XXXX growth. to guidance the I that just growth, revenue

the year-over-year. the or new like impact the Keeping could 'XX seeing for chain supply from can XX% about see positively. into if mind pressure up guidance you talked that customers, like, on revenues XXX% 'XX, any on you backlog quote outs to in some You push are which growth, activity talk upside you side could

Jason Whitaker

you speak again. Whitaker Jason here. Maheep, hi Good Yes, with to

and the to you at XXXX do have, look XXXX, Regarding that we when visibility let's look XXXX from say, that we've XX months it's to at have actually you provided, say But to visibility. look guidance. like over, we're when from with XXXX, And really potential you difficult would when and very phenomenal look we at the comfortable pushout what the guidance predict now. that

when directly growth of we orders, at mentioned, into wide of that upon some and chain that taken indirectly. our had based we've we've awarded seen seen that Phil look both we've consideration the provided range backlog guidance As things and and significant in supply the you

Maheep Mandloi

just you. about Or got something Got think can expect should the that what would was costs, -- along? customers any renegotiating pass to the you, we you case And how forward we there like about strategy you terms costs, talk logistics in of material going similar, impacting? if it are the with contracts be the should

Jason Whitaker

Yes, great question, Maheep.

pass Just to over project refresh and earnings based cost a actually When talked with bid the on project, we time. in prior commodity. upon we've that, as have commodities able calls. remind to to all seen about we we've of been everyone, that continued we go current that we've the And increase

products, from we not a to the single-digit it standpoint. single-digit actually look that perspective, With one to And on copper to definitely of perspective revenue aluminum digits. from low, is was From that a our low, revenue in it absorb which more at but the to vendor, was pass logistics base, seen or increase at logistics passed like get exception, you value-add the from percentage, almost of even me versus of decision we correct us specifically they from one made increase our Phil, on if generate that again, ship. that compared And single I'm a customers. percentage, low wrong, which not we we've a logistics when again time pricing

And perspective, significant. other have our is a see a from from only like when itself. fluctuations we seen impact would have some that shipping that, little it a perspective So timing a you again, I shipping doesn't comment add I the product but have bit elongate nothing to price possibly on say meaningful there actually

Maheep Mandloi

from jump then just and Thanks. the one last housekeeping me queue. one, back And in

related liabilities you the the in what the on increased So year. Thanks. they looking us roughly Could just million to? receivable tax remind around sheet balance $XX by at that is and

Philip Garton

to it company, about spread. -- is where long-term. is to stays know our done to to handle is but the taxes amounts we that structure this current what and a Yes, lower what benefit what IPO, I'll the did company the the owners, -- really the deduction, Anyway, in that. number, know of there don't goes amortization with TRA to and for allows it is had I which amounts XXX companies future I to so better for taxes was of And there's XX% the in that a TRA there's -- tax when it goes us, XX% normal previous captures that before.

is you on what you side have asset the the long-term greater see you and asset is tax you then So company. of shows payable for liability, the noticed the a assets have that than it the positive deferred then which nature offsets,

You're rather just to kind to owner of at authorities. prior payments future getting that the taxing a go reality in the than tax look going

Maheep Mandloi

on. Thanks. Got follow up it. detail in later Yes, I'll

Operator

Thank you.

Your from next go comes Philip ROTH ahead. question from Please Capital. Shen

Philip Shen

Hi, everyone. Thanks my taking questions. for

on if can First new products percentage revenues guide. conventional risk That the was you that guide. of geographic if able 'XX you might maybe as one 'XX the is it supply break what module the older out be or And as customers. I products? the And opposed talk of Thanks. with relates be talk great. about also might your around would be to to to revenue through mix wondering the revenue

Jason Whitaker

by And with moved and projects that's seen result versus continue the choices projects as to alongside breaking we're the and Jason out where I'm as gaining you of or I what's at delays, that in, and and concerned, going at panel Phil, that have been manufacturers required I talked some module our upon a When that manage awarded prior From our that's Phil, down mix to redesign ultimate over more has portion to issues which want with continued have around not project great see, necessarily of you as some for understanding some to can the BLA full out, the the But WRO cases, of modular backlog redesign not Hey, meaningful far want would Phil, CBP. like or mean, new I to and example, order done growth, is the been for about job things you the to well some around us that you've here. award direct have expect to of better that exact customers convert you moved If It from number quarters. as backlog products the a able with volatility are complete backlog there really as with perspective, in point a although that, international. we you industry to in see of out. do line And products of complete one Based derisking the full point with I'm system some been system has things know, hasn't and new where and changeouts. of have offering. covering again. smooth quite in one the optimization falls some -- that. maybe we've do Pleasure solution. speak tweaks provide maybe a look time, transition too sure orders seen we a a orders -- of, BLA been are solution around awarded

Philip Shen

to as what's the that moving the Europe a growth and facility. Or of away in a Today, point? location? that from too on on color to Jason. what tremendous potential at international Russian another either would it going new result at there, you distant this we announced capacity could manufacturing expand continent is the the Is for manufacturing consider thanks to map take gas, see Europe Great, all? With perhaps or there that

Jason Whitaker

manufacturing a that continue in which in we perspective, double of which of invest further our the and ahead existing to are make plans optimize our part manufacturing as capacity reason to go why Phil, now, is locations. manufacture facility, in North over did us from our decision to our right to footprint additional the product manufacturing current and allows manufacturing our America,

Philip Shen

I'll Jason. it thanks Great, pass on.

Operator

you. Thank

comes Oppenheimer. Rusch question Colin from from next ahead. Your go Please

Colin Rusch

guys. Thanks so much

and of into Europe, or you for with customers that many If that America that folks or have customers customers just Latin you familiar in I'm growth? the move about pool already curious you're speaking how

Jason Whitaker

go really and look the customers far we're can't I specifics, starting international when at as those details working owners that out developers with, in worked at we've as but that North into we're utility exact America. you with

able familiarity the from support that like through even in the we perspective beyond. such with navigate to or Shoals EPCs companies we then as high. opportunities the and LATAM extremely And and So way our product is to the be that see

Colin Rusch

thinking just and earlier, commodity rising I Okay, pass-through? availability, then happening guess rates prices labor the strategy labor more what's this point start and potentially at you maybe and given addressed about than but with what do you rethinking pricing your

Jason Whitaker

you've we're quoting great activity question. company almost well average being And and on to orders focusing right XXX%, up making and XXX%. the value seen a when value we're over at grow -- now focusing award look that's and up allowing Yes, is that backlog you what in what being on providing significantly,

is like continue So plug-and-play to of specifically full correct. solution does But are we initiative. When that thing an support providing to you currently level that to to considering what additional the have growth customers, are even fact it manner. stands, here today, key our an provide allow you the that with we're way that the labor, us environment that experiencing value

Colin Rusch

queue. into hop back guys. I'll Great, Thanks

Operator

you. Thank

from question comes Joseph Guggenheim Osha go next Partners. from ahead. Please Your

Joseph Osha

That's an interesting folks. Hello Guggenheim. of interpretation

Jason Whitaker

[Indiscernible] Joseph.

Joseph Osha

Very well. Thank you.

And provide agreements have you're approached Just on formal this backlog reporting, you have to how amplify handling pricing in aluminum material or an earlier customers? upside all you have Have material dealing you that? question, your think passed Do through and puts additional How then you hedged are I forward? thinking any follow-up. that for pass-throughs? gone out be about going copper just about to with place as one you that to

Jason Whitaker

problem Yes. all. at No

like I much aluminum. XX hedge you ago. we we've part I years generally, handled mean, for, we that, is it years based look lessons how when eight better much copper many upon So the say, the don't And that of to would same that or learned at handle

So time we'll go that And particular we'll seven becomes commodity get current as execution, the to the to go that more point itself pricing. advanced project And of quote the cycled. that and we back ultimately, for is is more referenced We and customer. days. good through, project and the quote get quote each mature

seven another same we've copper that PO update aluminum from a the because information to time exercised the a PO go So within locked commodities for quote sure passed time. perspective, that and that, reduction last effectively PO cycle we is from is we our the we where commodity go correlating that depending at are before or revision cut, commodities we're upon over last when locked some reason, increase that quote day if is that a in and to the the with and seven then that the duration. our customer And we through the over exact is period, out make matching copper risk exercised assuming through point delayed, either we'll PO day aluminum And is that that -- price, and to executed.

Joseph Osha

Right.

they copper additional to to prices quarters and terms your your upside in might backlog, current of series to that look quotes going potential this customers got of comfortable you're I least. with kind rolling there further? have go implies a whatever at if you've you not on are for that that But clearly of as in projects couple if So of pay deliver at

Jason Whitaker

of a vendors that able that our for our executed is make two customers level same at when partners, Yes. are are or turn, to the We, backlog, to When those lock conversation, months. particular a that delivered effectively, commitment made whether in, you look sake to in two projects that in days project us. at commitment we AKA partners'

Joseph Osha

XXXX, Thank then let of stock housekeeping think can a EBITDA. if you. more just and how And should as we comp? Wondering our here, about Great. that's dial in of for D&A Okay. us for it kind we me. you And roughly just question know

Philip Garton

invested upon the capital D&A. last below a it's based was year, major capital made what year, relatively than intensive for still expenditures not though be about for Well, low amortization change. the uptick a we depreciation We're still we business. Even this was year, prior be and it but heavier will historically -- very won't it the

stock-based question, as far was believe, other As comp? I the

Joseph Osha

Yes.

Philip Garton

Jason, do me to want to? Or want that? handle you do you

Jason Whitaker

Go ahead Phil.

Philip Garton

upon have. I of course, consistent that, number in the be we're of relatively people Okay. looking organization. we growing mean that employees One The we're number of are thing the there is we will seeing year-over-year.

a up, than also more run of public normal of So drive comp that stock-based. mature incentive a we're normalized we'll a since will cash-based company to but rather more now tend it more

Jason Whitaker

And think I I to one thing want of the add?

Joseph Osha

[Indiscernible].

go Sorry, ahead.

Jason Whitaker

go ahead, Go ahead. please. No,

Joseph Osha

Yes. No.

$XX calendar and So stock $XX moderate being those million for of think comp for about depreciation of kind as I of increases I off million about numbers see XXXX. in 'XX. can those

Philip Garton

give don't We general, in would I details yes. those. in think, But yes,

Joseph Osha

Thank very much. Okay. you

Jason Whitaker

that EBITDA it a from other one thing asked slowdown question obviously, at in at. being earlier had clarify He XX%. the gross And I about it margins brought to it's a want since

We particular margin are from anywhere be level a perspective. that near going not gross to at

Operator

you. Thank

JPMorgan. comes from next go Strouse from question ahead. Mark Please Your

Mark Strouse

Yes, good questions. evening. our Thanks taking for

slightly that way the break far as we have of is? think portion ask and want bit? as back able disclosures we I what becomes to the charging that what least year, your them are as to starting come I plans as of get business throughout say and expect, look the EV different a are threshold, the at of question. of to and did bigger When Phil's changing your materiality at backlog, hopefully, kind out I And that most of a you approaching been asked.

Jason Whitaker

here. Hey, Jason Mark,

as look before, stated again, an now. that breaking at from right it not down specifically EV perspective, we you we're when So

start we a get predictive. As to good that's cadence

introduction. we rapid that consideration. So you level product mean, reality The orders, pace. pipeline a is that of are we're can volumes at the look when are, that orders. very take into that where of we stages still something we'll I provide obviously early that shipping growing definitely taking we're The quoting at and at But information

to it's feedback received our initiatives other that from absolutely we've been with elated of able the focuses, along customers excited one that on. our in about key So market. we've Very we're in accomplish the what and the growth focusing

Mark Strouse

Yes, I'll you. take Thank the offline. rest

Operator

you. Thank

from Harrison from go comes Sandler. Kashy Your next Piper ahead. question Please

Kashy Harrison

evening. the Good And thanks questions. for taking

you give me, space? you're maybe update entering seeing could just EBOS if an new first wondering landscape. the the I if entrants was us So on Wondering for competitive one any

Jason Whitaker

we mean, Yes. From a back competitive out public. actually what the there, about as it's that essentially landscape are perspective, we've talked We've time in as far the went as to the initially competitors past, pretty much seen. I same

Kashy Harrison

mix systems give sense And on thinking Can Got you guidance. it. one just a how Thank during side? XXXX the you. of you're the about of components revenue then to the follow-up on us

Jason Whitaker

and the I investor that of slides website. to XX to in of share, customers the in breakdown, can't back seen just over which prospect market just last kind have continue pointing state. on significant give update, we be updated months an we deck our but conversion Xx one that of that additional to those We've currently an increase the going BLA the number converted posted it's in XX we of taking is on that that exact are

a that full come in is our portion side put to does of with. very tell that organization, would and key type our forth what work can those that of dedication of perspective. as I of that expect customers of working that from one we're with team demand, solutions form you generate the the the meaningful on. focusing that we're system including hard is So And That's sales you initiatives

Kashy Harrison

Got it. Thank you.

Operator

Thank you.

Jeff from from & question comes Cowen Please Your go Osborne next Company. ahead.

Jeffrey Osborne

you're you keep you Yes, his the how was wondering, X-K was that I on I departure? good two with if I with on any comments Dean's departure. just had Jason, company to the of my culture going the intact curious evening. filed had questions side.

Jason Whitaker

which company a a he wanted have perspective, at and over up a on step have a place. think culture years. exiting, team And like felt really other I take culture when our well members within from just for in very the we Yes, great been and working our feel The a the from that organization. mean lot we I for of for here have deal the I as imagine, long can you that -- time, a you look was been this ground actually focus to great on like essentially back company point. life he built team. company this He's He things XX-plus the in had at

Jeffrey Osborne

just that that it. was the think we And -- being then new And Got utilization us of What question second remind about you my on have? current built. capacity as then the you're capacity is? that you the can

If out? articulate that also, could will build then would online, that how you be just much be when to cost And will it helpful.

Jason Whitaker

Yes.

Jeff. capacity We fast. the it's current you And what definitely facility we're look will at exactly say online, very we magnitude. difficult exact already be we're in that is that haven't moving kind provided facility have, this to you the on any when some reality online, particular that because occupying is quantify of When when specifics

that the market So obviously, demand go needed to support facilities build today. to through to we're going capacity other continue expand that's our to as we're in continue significant this the we and out, optimize the and seeing in

Jeffrey Osborne

in capacity. that you double Got adding had the your could without it. revenue comments I thought you made past

So maybe get was to trying but I I'm mistaken. at, that's what

Jason Whitaker

support guess calendar regard, capacity is products. everybody that required when solution not to out XXXX, that updated just Yes. year information the I that But we from available had was we that say released remind any X.Xx we We've out closed did Jeff. system to year's what about

Jeffrey Osborne

you. Thank

Operator

Thank Instructions]. [Operator you.

go comes question Brett from next from Please ahead. Castelli Morningstar. Your

Brett Castelli

my Yes, one, products. I taking just the on the questions. hi. guess first BLA for Thanks

I think community. customer have good the traction guys seen you with EPC

update developers? Just curious you with can the if on us discussions

Jason Whitaker

full does with and significant that amount a are see, day material asset provides utilities one at of that reduction Yes, of O&M. and those owners significant look when conversations it system because labor developers in provide the life alike in absolutely. And savings reliability you key also and instrumental, of BLA it and you increased form can but the value in over that value and the solution,

those goals proposition that that reason part that we've we've has we've seen value to of with developers full the focusing we've been owners started on. that of realize experienced one that working why the in of And they as success been system seen solution. So and the growth key the

Brett Castelli

I'll Thanks Okay. leave it Jason. there.

Operator

in no today. that at pleasant And Have apologize Thank questions for you do for difficulties. again, time. Thank you. the our queue the conclude There day. Once technical a we participating. conference are for this does

Shoals Technologies (SHLS) 11 Mar 222021 Q4 Earnings call transcript