Q4 2021 Shoals Technologies Group Inc Earnings Call
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Thank you for standing by please continue to hold and the conference will begin shortly.
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Yes.
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Good afternoon apologies for the delay and welcome to the show's technology group.
2021 earnings conference call.
Today's call is being recorded and we have allocated one hour for prepared for.
Knox and Q&A.
At this time I will turn the conference over to Megan <unk> General Counsel of Shell's technology. Thank you.
You may now begin.
Apologies for the July . Please proceed to hold and the conference will reach mutually.
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Ladies and gentlemen, apologies for July .
Welcome to the Shell Technology group fourth quarter 2021 earnings Conference call today call is being recorded and we've allocated one hour for prepared remarks and Q&A.
At this time I would like to turn the conference over to Ashish Gupta.
You may now begin.
Thank you operator, and thank you everyone for joining us today hosting the call with me are CEO , Jason Whitaker and CFO Philip Garden on this call management will be making projections or other forward looking statements based on current expectations and assumptions, which are subject to risks and uncertainties.
As you listen and consider these comments should understand that these statements, including the guidance regarding the first quarter 'twenty two and full year 2022 are not guarantees of performance or results.
Actual results could differ materially from our forward looking statements if any of our assumptions are incorrect or because of other factors. These factors include among other things the risk factors described in our filings with the Securities and Exchange Commission as well as economic and market circumstances industry conditions company performance and financial results. The COVID-19 pandemic.
Supply chain disruptions availability and price of our components and materials project Cancelations decreased demand for our products.
Policy and regulatory changes.
Although we may indicate and believes that the assumptions underlying the forward looking statements are reasonable and EEV assumptions could prove inaccurate or incorrect and therefore, there can be no assurance that the results contemplated in the forward looking statements will be realized.
Cautioned that any forward looking statements included in this discussion is made as of the date of this discussion and do not undertake any duty to update any forward looking statements.
Today's presentation also includes references to non-GAAP financial measures you should refer to the information contained in the Companys fourth quarter press release for definitional information and reconciliations of historical non-GAAP measures to the comparable financial measures with that let me turn the call over to Jason.
Initiatives then I'll.
I'll talk about current conditions in the solar market and wrap up with some commentary on how we see our margins evolving this year.
Bill will then give an overview of our financial results for the fourth quarter and provide our outlook for 2020 two.
During 2021 with continued to convert customers to be L. A.
And the number of E. P C and developers using our system has grown to 18 up more than four fold from 12 months ago.
We believe that eight of the top 10 solar EPC use our combined as you go system on a majority of their projects and we're currently in the process of transitioning an additional 15 customers to our system.
Outside of B L. A we're starting to see significant traction from the new products, we introduced last year.
Launching our water management solutions in the fourth quarter, we received orders for more than 300 megawatts of solar projects.
And the customer feedback received thus far has been incredibly positive.
We plan to ship, our first Avi carb benchmarking products in the coming weeks and continue to expect first shipments of high capacity plug and play harnesses and bill likes to point out that began in the second half of this year.
We're also making strides in battery storage leveraging products and expertise from our connect PV acquisition.
We took our first orders for dedicated storage products in the third quarter of last year generated revenue in the following quarter and have several high profile battery projects in advanced negotiations that we hope to announce in the coming quarters.
We've made significant progress on our international expansion plan.
Last month, we received <unk> certification for our BLA, which was the last hurdle to selling our products throughout the EU.
We have our sales team in place and our products are now fully qualified.
And as a result, we expect to see backlog start to build this year.
We're also looking at opportunities beyond Europe , we started building a sales team in Latam.
Now turning to our newly formed EV charging business, we launched our product in the fourth quarter and have seen a tremendous level of market interest and quoting volume.
We signed our first MSA with a charged one operator in November shipped our first product in February and will be ramping up production as planned in the second quarter of this year to meet our demand.
We're also starting to see synergies between our EV business, our core solar business as our customers are increasingly active in both solar and EV charging.
A great example of that is the strategic agreement, we recently signed with Illumina.
The North American Decarbonization, as a service business of Brookfield renewable.
Luminaire opted to collaborate with us to combine the best in class high quality distributed generation platform with our leading edge E mobility solutions.
To provide a comprehensive EV charging solar storage and energy efficient solutions.
We were excited about this partnership and are honored to have been selected to be a vendor to an industry leader like Brookfield renewable.
Finally earlier this year, we unveiled the Shoals E mobility innovation center, a living lab that enables customers to experience shows best in class electric vehicle charging solutions.
We're bringing innovation to our EV charging is deployed and installed just like we did in so and having the center to demonstrate our product is an important tool to win new customers.
The hard work, we did in 2021 to convert more customers to BLA introduce new products into the European market and launch our EV business is going to accelerate our growth in 2020 two.
And to put that in perspective, we had backlog and awarded orders of 299 million at year end 2021.
Which was nearly twice what it was at the end of 'twenty one.
That number has continued to grow in Q1 and underscores the momentum that is building across our business.
To support our growth, we're expanding our engineering and sales team and we'll be opening an additional manufacturing facility that will more than double our production capacity.
Now turning to current market conditions.
Last quarter, we disclosed that several of our customers have pushed out the delivery dates of their orders.
Primarily as a result of delays they were experiencing in receiving modules or other equipment required for their projects from other vendors.
We noted those push outs would call some of our revenues this year from the fourth quarter of 2021 into 2020 two.
And that shift has played out largely as we expected.
With only the timing of revenue being impacted and no revenue being lost.
What we didn't expect is that the same time as we were seeing push outs from some customers we saw tremendous growth in orders from others.
So much though that we've had to add manufacturing capacity to meet the demand.
So we think our experience reflects the overall solar market right now demand is incredible but the exact timing of projects remains very dynamic because customers are contending with so many moving pieces within their supply chain.
What that means for us in 2022 is that while we know our revenue growth rate is going to increase significantly compared to last year.
It's challenging to predict exactly how significantly and which quarters will see the greatest growth.
And because of that uncertainty we've tried to capture a wide range of potential outcomes in our 2022 revenue outlook.
I'll wrap up by making some comments on our margins.
Many of you have asked us about the sustainability of our margins, particularly given the year over year compression in gross margin, we experienced in Q3 and Q4.
We expect to deliver gross margins on average that is in the range of 38% to 40%.
And we will have blips, along the way related to make our supplier issues in any given quarter.
But we are in a situation, where you're delivering significant value to our customers and are able to capture the increase in our product costs overtime.
Nearly all of the lower gross margin. We saw in Q4 were related to a price increase from one of our suppliers that we chose not to pass onto our customers on a certain set of projects.
That decision will continue to impact our gross margins in the first half of 2022 .
With a return to normalized levels in subsequent quarters.
The story on EBITDA margins will be a little bit different.
We are investing heavily in our human capital infrastructure to support our growth initiatives, including E V and international.
Which means we are adding SG&A ahead of when we have the revenue to absorb.
That will result in EBITDA margins that will decline modestly year over year and 2022, even as gross margin increases.
However, we believe that's a small price to pay to support the significant demand we have today and accelerate our growth.
I'll now turn it over to Phil who will discuss our fourth quarter 2021 financial results and our first quarter and full year 2022 guidance.
Bill.
Thank you Jason for.
For the fourth quarter revenue grew 24% versus the prior year period to $48 million, driven by increases of 29% and system solutions and 15% and components.
The growth in system solution revenue reflects strong demand for our combined as you go system.
The strength in components revenue during the quarter was consistent with the expected change in mix.
Sales of system solutions represented 68% of total revenues versus 65% in the prior year period.
Gross margin in the fourth quarter was 33, 1% compared to 38, 3% in the prior year period.
The decline in gross margin year over year was due to approximately $1 million of higher material and logistics costs largely related to one supplier you elected not to pass onto our customers.
We will see approximately $3 million of additional costs in the first half of 2022.
After which we expect our gross margin to normalize at levels in line with what we have achieved historically.
Fourth quarter General and administrative expenses were $11 million compared to $5 6 million in the prior year period.
The change was primarily a result.
Of the higher.
<unk> based compensation.
Land increased payroll due to higher head count to support our growth and product initiatives.
And new public company costs.
Adjusted EBITDA for the fourth quarter was $11 3 million compared to $14 1 million in the prior year period.
Adjusted net income was $900000 in the fourth quarter compared to 9 million in the prior year period.
We see the adjusted EBITDA and adjusted net income reconciliation tables for our fourth quarter press release for a bridge toward GAAP results.
As of December 31, 2021 we had backlog of awarded orders of $299 million in.
An increase of 94% year over year, and a 10% versus September 30th of 2020 one.
The increase in backlog and awarded orders reflect continued robust customer demand for solar products.
Turning to our outlook for 2022.
Based on current market conditions and input from our customers and team we expect 2022 revenues to be in the range of $300 million to $350 million up 41% to 64% year over year.
We expect adjusted EBITDA to be in the range of $79 million to $97 million and adjusted net income to be in the range of 54 to 69 million.
As for the first quarter of 2022, we are updating our prior outlook.
We continue to expect revenue to be in the range of $68 million to $74 million. However.
However, we now expect adjusted EBITDA to be in the range of $16 million to $20 million in.
And adjusted net income to be in the range of $10 million to $13 million.
To help provide some context on the bridge from our first quarter outlook. In addition to approximately $3 million impact that Jason and I discussed earlier I wanted to call out first quarter weather related shutdowns that resulted in approximately $4 million in lost revenue and a decrease of between one and 2 million.
Of adjusted EBITDA.
We expect to recapture the ECS shipments in the coming quarters.
To support our multiyear growth outlook, we are pulling forward several investments.
Including the addition of our new facility, which will more than double manufacturing capacity and allow us to more effectively manage our business and serve our customers.
In addition, we are substantially increasing our engineering and sales staff as well as our entire human capital infrastructure to support our growth initiatives over the next several years.
With all that said we are experienced significant growth and are confident that EBITDA margin will rise as we get leverage on SG&A exiting this year.
I will now pass pass it back to Jason for closing remarks.
Thanks Bill.
I'd like to close by thanking all of our customers for their commitment to shows our employees for their contributions to our company's success and our shareholders for their continuous support.
We're off to a strong start in 2022.
And as we've talked about I'm extremely excited about the growth we've seen in our backlog and awarded orders our COO.
Would it be more proud of our progress on our growth initiatives and we look forward to sharing future development in upcoming calls.
And with that I want to thank everyone for their time today and apologize for the technical difficulties, which resulted in the livestock.
We will now open the line for questions.
Thank you.
We will now begin the question and answer session to join the question queue.
You May press Star then one on your telephone keypad.
He retired acknowledging your request.
If you are using a speakerphone please pick up your handset before pressing.
To withdraw your question. Please press Star then two.
Two.
Your first question comes from Brian Lee from Goldman Sachs. Please go ahead.
Hey, guys. Good afternoon. Thanks for taking the questions I had a couple here I guess just to start off on the gross margin.
You know you you were talking about a 3 million dollar additional impact to the $1 million headwind you already had in <unk>. So if I do the math total 4 million, which means youre going to be at about a 30% gross margin level in Q1.
Is that the right ballpark and if so is.
Is that the trough here in Q1 and it improves in Q2 or how should we just think about the cadence of margins in the first half as you move toward a more of a normalized margin impact in the second half.
This is Phil I can take that one Brian .
I'm not going to give you exactly because we don't provide guidance on gross margins gross margins will be the lowest do we expect in the first quarter.
After we kind of work through this business it will grow up grow in the second quarter, a rise and then we expect in the second half of the year to get back to approximately what our historical levels have been.
And so with the historical levels I mean, you guys had been in the high thirties, you've been you know 40, plus can you can you kind of maybe.
No narrow it down for us a little bit are you planning to be back to the high thirty's or you're gonna be 40, 40, plus in terms of kind of what youre thinking.
With respect to normalization on the margin path and is it raising pricing in the second half or is it your cost.
<unk> you know normalizing what what what gets you the the visibility that you get back to that normalized level as you quantify it.
Hey, Brian it's like whatever here.
Alright, Jason.
So pleasure to speak with you again, Brian .
When you look at that.
And I said in my prepared remarks, you know we're looking to provide you know on average your margin profile in that 38% to 40%.
It kind of going back to.
The drop in Q1.
Literally a direct result, as we stated based upon an increase in price was predominantly one vendor.
And that was the decision that we made to absorb that particular price because it was a late dropped almost how much yet and we didn't feel like it was the right thing to do to pass that on directly to our customers because it was not directly related to copper or aluminum.
So it's one of the things we considered to be you know definitely short term pain for significantly long term vein from a relationship perspective with our partners.
Yes.
Okay Fair enough last one for me and I'll pass it on.
Again on the margins.
If if if my math is right. It's you your guidance for Q1.
EBITDA margin percentage is higher than what you saw in Q4, but obviously gross margin percentage is down in Q1 versus Q4, if you just kind of run the math on the.
<unk> guidance. So is there additional adjustments to the EBITDA in Q1 or can you kind of help reconcile that and then you know $5 million on cash our balance at the end of Q4, maybe Phil a quick comment on liquidity are you tapping the revolver or sort of what's the what's your position here. Thank you.
We tap the revolver as necessary.
As you know I mean, we're growing the business, which can which can consume.
Consume cash and coming out of the fourth quarter is as always.
You know fourth quarter is a relatively low the holiday time relatively low production during the holidays, which means your receivables are lower coming into that but anyway. So yeah. The cash.
Figures were a little lower but that's the.
That's kind of how they are depending on how you collect and pay the bills at the end of the year.
And.
Is as we go and look at margins in Q1 remember I did mentioned the weather issues will impact us and so we will have some weather impact in that in Q1.
In addition to this our cost item that's rolling through.
But we expect and we're investing in the business and I think what would I be looking at as the CFO .
<unk>.
As we look year over year the growth is dramatic.
You know between 40% to 64% approximately annualized growth depending on our guidance and we look at that we're investing not only for for this year, but into the future and that's why we're investing in the SG&A, which is driving down our adjusted EBITDA slightly.
And.
But it's absolutely the right thing to do as far as the valuation of the business because the opportunities are so great out there.
The disinvestment is wellness.
Alright, I appreciate the color I'll take it offline. Thank you.
Thank you.
Your next question comes from Mike.
Not really from credit Suisse. Please go ahead.
Yeah.
Hey.
Good evening, everyone. Thanks for taking our questions.
First just on the 20 <unk> the backlog growth.
Just wanted to reconcile that with your 2022 revenue guidance Gorilla, that's been talked about 94% backlog growth new core doctor with you 100% year over year.
Keeping that in mind.
Can you talk to me.
Are you seeing any pressures or push outs from 'twenty two into 'twenty three if I could.
See some upside on the supply chain side, and our customers which could.
In fact, the guidance on the revenues positively.
Yeah, Hey, Hey, Jason would agree here good to speak with you again.
Guarding.
Potato pushed out from 2022 to 2023.
When you look at the visibility we have and we do have phenomenal visibility, but when you look at that 2022 to 'twenty 'twenty three it's really difficult to say and predict what that would look like you know over it's like 12 months from now and when you look at the you know the guidance that we've actually provided yeah, we're very comfortable with the guidance as Phil had meant.
And we've.
We've seen significant growth in our backlog and awarded orders and you know and we've taken that into consideration. When you look at the wide range of guidance that we provided based upon some of the supply chain things that we've seen both directly and indirectly.
Yeah.
Gotcha Gotcha and.
In terms of the material costs and logistics costs could you just talk about like how should we think about that going forward. If in case. There was something similar should we expect Oh are you.
Renegotiating the contracts with the customers buses, along or what would the strategy be on bathroom.
Yeah, Great question, Nathan just to remind everyone you know what we've talked about at Empire.
Earnings calls when we go when we bid a project, we actually refresh that project based upon the current commodity and with that we've been able to pass on you know all of the costs.
We've seen you know as commodities have.
Continued to increase over time.
With the one exception, which again was not specifically alumina aluminum or copper base. It was more of a value add increased from one vendor, which they passed on to US are Thomas Yeah, and again, we made that decision to absorb that Ah versus pass that onto our customers.
From a from a logistics perspective, we've definitely seen increasing.
Increase in pricing from a logistics standpoint, and Phil correct me, if I'm wrong, but when you look at the revenue that we actually get from a logistics perspective compared to the revenue we generate from our product. It is single digit percentage like low low low single digit percentage almost not even single digit.
So when you see you know private fluctuations like that it doesn't have a meaningful impact.
On a product itself.
Again from a from a shipping perspective, I would say the only other comment that I have to add there is we have seen some shipping you know, possibly along a little bit from a timing perspective.
But nothing significant.
Thanks, and just one last one housekeeping from me and then jump back in the queue. So I was looking at the tax receivables are.
Liabilities on the balance sheet and a big increase spend on roughly $50 million in the year could you just remind us what is that related to things.
I'll handle that a yes, a T. R. A is really a benefit to the company in the long term and what it amounts to it there's I don't know what the current number but I know when we did our IPO.
There was about 115 companies in that had done a TRA before.
Anyway, what it allows us to mounts do is there's a structure where it captures this.
Future amortization.
Amortization tax deduction, so for you better taxes for us lower taxes.
And 85% of that goes to the previous owners and 15% of that goes to stays with the company, which is the are.
The normal spread so what you see them as you have a long term payable and then you have a deferred tax asset on the asset side that offsets you notice the asset is greater than the liability, which shows the positive nature of it for the company.
Can you just kind of getting a look at our future tax payments that in reality go to the prior owner.
Rather than going to the taxing authorities.
Got it yeah, I'll follow up and get in a literal thanks.
Thank you.
Your next question comes from Philip Shen from Roth Capital. Please go ahead.
Hi, everyone. Thanks for taking my questions first one is on the 22 revenue guide I was wondering if you might be able to break out the geographic mix of the guide and maybe talk through the risk around revenues as it relates to them.
Module supply with your customers.
And if he can also talk about what percentage of that 22 revenue might be new products as opposed to.
Conventional or or the older products that would be great. Thanks.
Hey, Phil Jake near a pleasure to speak with you again when.
When you look at the backlog and awarded orders and as far as the new products are concerned Phil Yeah, we're not really breaking down that mix exact mix from from new products or international.
One of the things that I do want to point out alongside of the backlog and award order growth as you can see and we've talked about the number of customers that have continued to convert.
Over to our full system Bill a solution base.
Based upon that as you would expect a meaningful portion of that backlog and awarded orders falls in line with our BLA full system solution offering.
You know from a from a module perspective bill.
One of the things that I think that I do want to point out. Although we have seen continue to see some volatility with project delays I mean, some projects that moved in some projects that moved out it.
It hasn't necessarily been around complete redesign like we've seen in prior quarters.
And where I'm going with that is that are there.
Theyre more optimization and tweak versus you know a complete redesign and module change outs and I'm not too sure. If maybe that's a direct result of for example, W. R O which has been with us for quite some time as you all know.
You've done a great job covering that.
If that had been around to where the industry has been able to manage around some of the issues by derisking the ultimate choices or in some cases, maybe panel manufacturers, gaining a better understanding of what's required.
Provide a smooth transition at the C V P.
Great. Thanks for the color are there Jason today, you announced a new manufacturing facility.
With what's going on in Europe , and the potential tremendous growth that we could see there as a result of the continent are moving away from brush and gas.
Hmm, what would it take to expand our manufacturing.
Manufacturing capacity, perhaps either to Europe or another international location is that on the map at all or is that to distance to consider at this point.
You know Phil you know from a manufacturing perspective, you know as of right now our current plans are to continue to manufacture our product in North America.
Which is part of the reason, while we did make the decision to go out and invest in that additional manufacturing facility, which allows us over double our manufacturing capacity and further optimize our footprint in our existing manufacturing locations.
Great. Thanks, Jason I'll pass it on.
Thank you.
Next question comes from Colin Rusch from Oppenheimer. Please go ahead.
Thanks, so much guys.
He moved into Latin America, and Europe , I'm, just curious about how many customers.
Our familiar customers or folks that you already have in the in the pool of customers that you're you're speaking risk for that ground.
I can't go into exact details you know as far as you know international specific.
But when you look at the customers.
We're working with you know, we're really starting out.
At those utilities developers and owners that we've worked with in North America. So the familiarity with shelves and the products from that perspective is extremely high.
And then we navigate our way through a company.
But just even the like to be able to support the opportunities that we stay in Latam and even beyond.
Okay, and then I guess, maybe addressed this earlier, but you know given what's happening with labor rates and labor availability.
At what point do you start rethinking your pricing strategy and in thinking about potentially you know raising prices more more than just a commodity pass through.
Yeah, that's actually that's a great question and when you look at you know what we're focusing on right now is we're focusing on providing value.
And and make it and allowing that value to grow the company significantly, which you've seen in backlog and awarded orders being up almost a 100% you know average coding activity being up well over 100%.
The key thing here is to continue to support that growth initiative, but you are correct. You know when you have an environment like what we're experiencing today with.
With labor.
The way it currently stand that does allow us to provide even an additional level of value to our customers.
Specifically, because they are and the fact that we are providing that solution that full plug and play manner.
Great I'll hop back in the queue. Thanks, guys.
Thank you.
Your next question comes from Joseph Osha from.
Partners. Please go ahead.
That's a interesting interpretation of Guggenheim, Bob Hello folks.
Hey, How's it going.
Very well. Thank you just to amplify our all in an earlier question as you think about this backlog that you reported.
How have you approached dealing with material pass throughs did you have formal agreements in place.
Does that provide for.
Any additional upside on copper aluminum to be pass through to customers. If you just gone out and hedged all that how how are you thinking about handling Europe your material pricing puts going forward and then I have one follow up.
Yeah, no problem at all so yeah. When you look at that I mean, generally we don't hedge copper or aluminum.
And how we handle that is much like much the same that we've handled at FERC for I would say the better part of eight to 10 years based upon lessons learned.
Many years ago. So we'll go through will cause the project to the customer and ultimately as that project becomes more mature and get more advanced and get to the point of execution. Each time that quota is cycled we'd go back and we rack we referenced the current commodity pricing.
And that particular quote itself is good for seven days.
So you know when we when we exercise that last revision before the P. O S cut we go through and we update the copper and aluminum and.
And we passed that information over to our customer with a correlating price either increase or reduction depending upon where the commodities are at that point in time, and then assuming that that P. O is exercised within a seven day period, we've effectively locked all rent from a commodity perspective, because that copper and aluminum is locked over that exact same set.
One day duration and if for some reason the appeal is delayed will go through another quote cycle to make sure that we're matching out commodities from the last quote the time that the P. O is executed.
Right. So if I look at your current backlog your query whether you've got projects in there that you're not going to deliver on for a couple of quarters at least but your customers are.
We are comfortable with this kind of series of rolling quotes and whatever that implies in terms of additional potential upside that they might have to pay to you is if copper prices go further.
Yeah. When you when you look at the when you look at the backlog when those particular projects are executed.
Affectively, we are able to lock in you know whether that project is deliberate and you say for sake of conversation you know two days or two months, we in turn make that commitment to our partners AK vendors at that same level that our partners customers made a commitment to us.
Okay, great. Thank you and then just more of a housekeeping question here, just as we kind of dial in or EBITDA wondering if you can let us know for 2022, roughly how we should think about D&A and stock comp and.
That's it for me.
Yeah.
Depreciation and amortization will be about what it was this year be uptick based upon the capital expenditures, we made prior year, but won't be a.
A major change even even though we invested.
Heavier than historically last year. It was still below its still a relatively low for a business, we're not very capital intensive for DNA as far as the other question I believe was was stock based comp.
Yes.
Jason do you want to handle that or do you want me to.
Bill.
Okay, I mean, where where look upon that there will be a.
Relatively consistent.
Consistent year over year, one thing, where we are seeing is that of course, we're growing the number of people. We have are the number of employees in the organization so that will.
Tend to drive it up but we'll also run more of a.
Have a normalize since we're now a normal life and more mature public company.
More cash based incentive comp rather than.
Stock based.
Okay.
About.
Sorry go ahead no go ahead.
Go ahead please.
Yeah, No I still see about $11 million in stock comp and about 10 million of depreciation for.
For our calendar 'twenty, one I can think of those as kind of being.
Moderate increases off of those numbers for 2022.
We don't give details in those but but yes, I would say I would think.
In general yes.
Okay. Thank you very much.
And one other thing I want to clarify since obviously, it's a slow down into EBITDA.
From a question earlier that they brought it up he had asked about gross margins being at 30% we are not going to be at.
Anywhere near that particular level from a gross margin perspective.
Thank you.
Your next question comes from Mark Strouse.
Stress from J P. Morgan. Please go ahead.
Yeah. Good evening, thanks for taking our questions I think most of them have been asked I did want to come back and ask a slightly different way of approaching Phil's question.
When I look at the backlog are you able to so to say, it's kind of the the materiality threshold at least of what the the EV charging portion of that is and as we get throughout the year and hopefully that business becomes a bigger as we expect.
What are your plans as far as starting to break that out changing your disclosures a bit.
Yeah, Hey, Mark Jason here.
So when you look at it from an EV perspective again as we stated before were not breaking that down specifically right. Now you know as we start to get a good cadence.
Thats predictable so that we can we can provide that level of information that's something that we'll well.
Definitely take into consideration, but.
But when you look at where we are you know I mean, we're we're obviously you know taking orders shipping orders.
Pipeline and quoting volumes are growing at a very rapid pace.
The reality is we're still at the early stages of product introduction so.
It's one of the key focuses along with our other growth initiatives that we're focused and I'm very excited about what we've been able to accomplish.
And absolutely delighted in the feedback that we've received from our customers in the market.
Yeah, I'll take the rest offline. Thank you.
Yeah.
Thank you.
Next question comes from Kashi Harrison from Piper Sandler. Please go ahead.
Hi, good evening and thanks for taking the questions.
So first one for me I was wondering if you could maybe just give us an update on the competitive landscape wondering if you're seeing any new entrants are entering the a b E bar space.
Yes.
Yeah from a from a competitive landscape perspective.
As far as competitors are out there it's pretty much the same as what we've seen and.
We've talked about in the past I mean, it seems like back in the time that we actually initially went public.
Got it and then just one follow up on on the guidance can you give us a sense of how you're thinking about the mix of our systems to components during 2022 on the revenue side. Thank you.
Okay.
I can't give an exact breakdown, but you know just kind of pointing back to.
You know the the BLA taking market share.
Which is one of those slides that we continue to update.
It's going to be updated on the investor deck that we have posted on our website.
Seeing significant increase just in the last 12 months of over Forex, you know the number of cars.
We started and an additional 15 that are currently in the in that.
<unk> and conversion states. So very excited from that perspective, that's one of the key initiatives that we're focusing on and what I can tell you is that the hard work and dedication that our organization, including sales team has put forth to generate that type of demand a meaningful portion of that does come in the form of our full system solutions as you would expect with those.
Customers are that we're working with.
Yeah.
Got it thank you.
Thank you.
Your next question comes from Jeff Osborne from Cowen and company. Please go ahead.
Yeah. Good evening two questions on my side I was wondering Jason if you had any comments on the 8-K that you filed with Dean's departure I was just curious how are you going to keep the culture of the company intact with his departure.
Yeah, I mean from a from a cultural perspective, you know as you can imagine.
A lot of the members that we have in our team that's been here for a very long time, which I think really you know vouchers for the culture that we have within our organization.
And when you look at as Dean Dean actually you know I feel like he he felt like the company was in a great place.
You know the company actually had a great day, he's been working for well over 40 plus years. He built this company from the ground up.
And essentially you just wanted to take a step back and focus on other things in life at this point.
Got it and then my second question was just on the can you remind us of the current capacity that.
But you have what what utilization that is and then as we think about the new capacity that you are being built if you could just articulate how much that will cost to build out and then also when there will be online that would be helpful.
Yeah. So what we we haven't provided any exact specifics on the current capacity that we have Jeff.
And when you look at when that particular facility will be online were definitely moving very fast.
When you say online.
Difficult to quantify exactly what that is because the reality is were already occupying that facility and some magnitude. So obviously as we continue to go through and optimize our other facilities and expand this out we're.
So we're going to continue to build in the capacity needed to support the significant demand.
We're seeing in the market today.
Got it I thought you had made comments in the past that you could double your revenue without adding capacity. So that's what I was trying to get at but maybe I'm mistaken yeah. We we've not we've not released at any any updated information from that regard, Jeff, but I guess just to remind everybody. You know what we did say is that when we closed out calendar year 2020.
We had about 1.8 the available capacity that was required.
To support that year system solution products.
Got it thank you.
Thank you.
Once again, if you have a question. Please press Star then one.
Your next question comes from Brett <unk> from Morningstar. Please go ahead.
Yeah, Hi, thanks for taking my questions.
First one just on the BLA products. Thank you.
We've seen good traction with the EPC customer community just curious if you could.
Date us on discussions with the developers.
Yeah absolutely.
Those conversations with developers.
You know and and owners and utilities alike.
Archaean instrumental because you know when you look at that full system Bill a solution. It does provide a significant amount of day, one value and the labor and material savings that you can see them, but it also provides significant value over the life of that asset.
In the form of increased reliability and reduction in O&M, so working with those owners and developers.
It's been one of the key goals that we've been focusing on and part of the reason why we've seen the success that we've seen in the growth that we've experienced as they started to realize that value proposition of that full system solution.
Okay.
I'll leave it there thanks, Jason.
Thank you.
There are no questions in the queue at this time.
And that does conclude our conference for today once again, we do apologize for the technical difficulties. Thank you for participating.
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