Q1 2022 iSun Inc Earnings Call

May 17, 2022

[music].

Good day, ladies and gentlemen, and welcome to the Eisai, Inc. Q1, 2022 earnings conference call. At this time, all participants have been placed on listen only mode and the floor will be opened for questions and comments. After the presentation. It is now my pleasure to turn the floor over to your host Taylor Barnes.

Ladies and gentlemen, and welcome to the ISUN Inc Q1 2022 earnings conference call. At this time, all participants have been placed on a listen-only mode, and the floor will be open for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Tyler Barnes, Investor Relations at ISUN. Sir, the floor is yours.

Investor Relations, Sir the floor is yours.

Yeah.

Thank you and good morning, we are pleased to welcome you to Iphones conference call, where we will discuss financial and operating results for the first quarter 2020 to Jeffrey <unk>, Chairman and Chief Executive Officer will provide an update on the deployment of Iceland recently completed solar platform and illustrate how the platform both addresses opportunities within the solar marketplace.

Thank you and good morning. We are pleased to welcome you to ISO's conference call where we will discuss financial and operating results for the first quarter 2022. Jeffrey Peck, chairman and chief executive officer, will provide an update on the deployment of ISO's recently completed solar platform and illustrate how the platform both addresses opportunities within the solar marketplace and creates value for shareholders.

Creates value for shareholders, John Sullivan, Chief Financial Officer will provide an overview of the first quarter 2022 financial results and operating performance. After our prepared remarks today, we will open the lines to address any of your questions. As a reminder, earnings release, which can be found on islands website includes financial disclosures and reconciliations for.

John Sullivan, Chief Financial Officer, will provide an overview of the first quarter 2022 financial results and operating performance. After our prepared remarks today, we will open the lines to address any of your questions. As a reminder, the earnings release, which can be found on ISUN's website, includes financial disclosures and reconciliations for non-GAAP financial measures that should help you analyze results.

non-GAAP financial measures that should help you analyze results.

Comments and answers to questions during the call will include forward-looking statements that refer to management's expectations or future predictions. These statements are made as of the date of this call, and management is under no obligation to update these forward-looking statements in the future. They are subject to risks and uncertainties that could cause actual results to differ from management's expectations. With that, I will now turn it over to our CEO , Jeff Peck. Good morning, everyone.

Comments and answers to questions. During the call will include forward looking statements that refer to management's expectations or future predictions. These statements are made as of the date of this call and management is under no obligation to update these forward looking statements in the future. They are subject to risks and uncertainties that could cause actual results to differ from management's expectations with that I'll now turn.

Over to our CEO , Jeff Beck.

Good morning, everyone. It's a pleasure to be speaking with all of you today.

I always appreciate the opportunity to share Iceland's progress with our shareholders and the investment community.

I always appreciate the opportunity to share some progress with our shareholders and the investment community.

I am encouraged and excited by the progress, we're making towards our mission to accelerate the nations adoption of solar energy.

I'm encouraged and excited by the progress we are making towards our mission to accelerate the nation's adoption of solar energy.

We've made exceptional progress in creating a platform capable of providing our full suite of services.

Development and design services engineering procurement installation storage monitoring.

development and design services, engineering, procurement, installation, storage, monitoring, and maintenance to the entire solar market.

And maintenance to the entire solar market.

We're excited about how quickly our individual teams have embraced a culture of collaboration.

We're excited about how quickly our individual teams have embraced a culture of collaboration, as we learn from our diverse

As we learned from our diverse.

Backgrounds.

We remain focused on building long term value for our shareholders and confident that our team will execute on our mission.

We remain focused on building long-term value for our shareholders and confident that our team will execute on our mission.

We continue to see exceptional growth with the doubling of our revenue in Q1 over the same period in the prior year.

We expect to see this growth continue into Q2, as we transition out of the seasonality of the northeast.

We expect to see this growth continue into Q2 as we transition out of the seasonality of the Northeast.

Our customer demand continues to accelerate evidenced by the growth of our overall backlog totaling $128 3 million with new demand of $41 2 million generated in the quarter.

Our customer demand continues to accelerate evidence by the growth of our overall backlog totaling 128.3 million with new demand of 41.2 million generating in the quarter.

I'm also very happy with our progress to return to profitability by delivering an approximate breakeven EBITDA in Q1.

I'm pleased with the execution of our strategic plan so far.

We created a platform capable of servicing customers in every segment of the marketplace.

Our comprehensive suite of solar services provides an opportunity to create value for our customers across the residential commercial industrial and utility segments.

Our comprehensive suite of solar services provides an opportunity to create value for our customers across the residential, commercial, industrial, and utility sites.

The demand for Evs is accelerating the need for new infrastructure to support consumers at home and on the road or.

The demand for EVs is accelerating the need for new infrastructure to support consumers at home and on the road.

Our commercial and industrial customers are adapting to this transition.

Iceland is uniquely positioned to utilize the skills and expertise of our divisions to serve these customers. This was evident with our recent $30 million contract award to provide EV infrastructure support across the United States.

Isom is uniquely positioned to utilize the skills and expertise of our divisions to serve these customers. This was evident with our recent $30 million contract award to provide EV infrastructure support across the United States.

We are in a rapidly evolving energy market.

And we are prepared to accelerate the adoption of solar.

And we are prepared to accelerate the adoption soar and meet the demand as it occurs in each segment.

And meet the demand as it occurs in each segment.

Our residential division has seen a tremendous increase in demanding Q1, with a 37% increase in customer orders from December 31, 2021.

Our residential division has seen a tremendous increase in demand in Q1 with a 37% increase in customer orders from December 31 2021.

Equally important these orders maintained a 30% attachment rate for storage.

Equally important, these orders maintained a 30% attachment rate for storage.

In addition storage sales to existing customers increased 40%.

In addition, storage sales to existing customers increase 40%.

This illustrates how our people first customer service culture creates value for the customer and will provide us multiple opportunities to service residents for customers as innovations improve and their needs change.

This illustrates how our people first customer service culture creates value for the customer and will provide us multiple opportunities to service residential customers at innovations improve and their needs change.

Our commercial and industrial divisions have seen an increase in demand in Q1 with a 23% increase in backlog from December 31 2021.

Our commercial and industrial divisions have seen an increase in demand in Q1 with a 23% increase in backlog from December 31st, 20th.

Sales and marketing expertise acquired through common and the digital marketing tools will be leveraged to continue to grow our backlog.

The sales and marketing expertise acquired through Sunkomen and the digital marketing tools will be leveraged to continue to grow our backlog.

This combined with the installation efficiency of our existing teams will drive profitable growth.

Our utility Division provides an expertise in development and professional services that has led to the execution of it.

Our utility division provides an expertise in development and professional services that is led to the execution of an $8.25 million contract.

$8 $25 million contracts.

That will generate solar project assets, requiring procurement and installation services.

that will generate solar project assets requiring procurement and installation service.

Currently we have 120 megawatts of projects in development.

Currently, we have 120 megawatts of projects in development that we will retain the installation services of our commercial and industrial.

We will retain the installation services of our commercial and industrial divisions and.

550 megawatts of projects in development that we will retain the installation services for our utility division.

and 550 megawatts of projects and development that we will retain the installation services of our utility.

We expect to see increasing demand for our development professional services going forward.

We expect to see increasing demand for our development, professional services going forward.

This multi segment strategy positioned us to meet the evolving demand as well as diversifying our revenue stream, which insulates us from challenges created by economic and political uncertainty impacting the global energy market.

This multi-segment strategy positioned us to meet the evolving demand, as well as diversifying our revenue stream, which insulates us from challenges created by economic and political uncertainty, impacting the global energy market. While we are insulated...

While we are insulated we are not immune from industry dynamics.

And based on the current environment, we are adjusting our 2022 revenue guidance to 125.

And based on the current environment, we are adjusting our 2022 revenue guidance to $125 million.

We remain committed to our mission and returning the company to profitability and cash flow positive.

We remain committed to our mission and return the company to profitability and cascal positive in 2022.

In 2022.

With that I'll turn things over to John .

John .

Thank you Jeff we are excited to have continued our growth trajectory into Q1 'twenty two.

Thank you, Jess. We are excited to have continued our growth trajectory into Q1-20. Thank you.

I will provide an overview of our statement of operations as well as provide details on our segments before turning to the balance sheet.

I'll provide an overview of our statement of operations, as well as provide details on our segments before turning to the balance.

<unk> reported first quarter 2022 revenue of $15 1 million, representing a $7 8 million or 107, 8% increase over the same period in 2021.

ISUN reported first quarter 2022 revenue of $15.1 million.

representing a 7.8 million or 107.8% increase over the same period in 2020.

Revenue growth was driven by the continued fulfillment of price natural consumer demand and execution of our commercial and industrial backlog.

Revenue growth was driven by the continued fulfillment of residential consumer demand, an execution of our commercial and industrial balance.

We continued to execute against our existing backlogs. We also generated new demand and added $41 2 million in new business during Q1.

But we continue to execute against our existing backlogs. We also generated new demand and added 41.2 million in new business during Q1.

Gross profit in the first quarter was $3 2 million.

Gross profit in the first quarter was 3.2 million compared to 0.1 million during the first quarter 2021.

<unk> 0.1 million during the first quarter of 2021.

Consolidated gross margin for the quarter was 21% compared to one 6% over the same period in 2021.

consolidated gross margin for the quarter was 21%

Compared to 1.6% over the same period 2020.

The margin improvement represents the third consecutive quarter in which our margin has improved.

The margin improvement represents the third consecutive quarter, in which our margin has improved.

As we grow synergies among our segments.

as we grow synergies among our segments, the strengthening of our margin is expected to.

<unk> of our margin is expected to continue.

Consolidated operating income was a loss of $5 7 million compared to a loss of $2 6 million over the same period 2021.

Consolidated operating income with a loss of 5.7 million compared to a loss of 2.6 million over the same period 2020

We acquired several companies in 2021, and capitalized significant intangible and fixed assets that began to amortize in 2022.

We acquired several companies in 2021 and capitalized significant and tangible and fixed assets that began to advertise in 2020.

Our noncash depreciation and amortization expense of $1 8 million compared to 0.1 million in Q1 2021 is <unk>.

our non-cash depreciation and amortization expense of 1.8.

compared to 0.1 million in Q1 2021 is included in our overall operating experience.

Included in our overall operating expenses.

<unk> reported a $2 $9 million net loss or <unk> 23 per share in the first quarter of 2022 compared to a $3 $1 million loss or <unk> 41 per share over the same period of 2021.

I sum reported a 2.9 million dollar net loss or 23 cents per share in the first quarter of 2022. I'm here to a 3.1 million dollar loss or 41 cents per share over the same period 20.

EBIT for the quarter was approaching breakeven with a loss of <unk>, one 2 million or <unk> <unk> per share compared to a loss of $1 4 million or <unk> 18 per share in the same period in 2021.

Even up for the quarter was approaching break even with a loss of 0.12 million or 1 cents per share Compared to a loss of 1.4 million or 18 cents per share in the same period in 2020

We are encouraged by these results, particularly with the variability of the seasonal impact to our installation schedules during Q1.

Our residential division generated revenue of approximately $6 7 million during Q1 and grew customer demand to $26 2 million.

A residential division generated revenue of approximately 6.7 million during Q1 and grew customer demand to 26.2 million with execution anticipated over three to five months.

With execution anticipated over three to five months.

Our commercial and industrial division generated revenue of approximately $6 9 million during Q1 and grew contracted backlog to $102 $2 million with execution anticipated over 12 to 18 months.

Our commercial and industrial division generated revenue of approximately 6.9 million during Q1 and grew contracted backlog to 102.2 million with execution anticipated over 12 to 18.

Our utility division generated revenue of approximately $1 5 million during Q1 and has 515 megawatts of utility scale projects and 120 megawatts of commercial and industrial scale projects under development.

Our utility division generated revenue of approximately 1.5 million during Q1 and has 550 megawatts of utility scale projects and 120 megawatts of commercial and industrial scale projects under development.

These projects transitioned to the installation phase they will be added to the respective backlogs.

As these projects transition to the installation phase, they will be added to the respective backlogs. Now turning to the balance sheet.

Now turning to the balance sheet.

We continue to focus on strengthening the balance sheet.

While we use the capital markets to support our 2021 acquisition strategy. There are currently no plans to conduct an equity raise in the foreseeable future.

While we use the capital markets to support our 2021 acquisition strategy, there are currently no plans to conduct an equity raise in the foreseeable

Overall, the balance sheet remains healthy with improvements to our liquidity ratios during the quarter as well as improvements to our working capital position.

Overall, the balance sheet remains healthy with improvements to our liquidity ratios during the quarter, as well as improvements to our working capital position.

Accounts receivable and collections remained strong as we've seen an improvement in our turnover to an approximate seven times per year.

And the Council is receivable in collections of remained strong as we've seen an improvement in our turnover to an approximate seven times per year.

Inventory is designed to support our residential levels and increased consistent with overall customer demand.

Inventory is designed to support our residential levels and increase consistent with overall customer demand.

Total debt decreased $8 1 million at March 31, 2021 from $16 3 million at December 31, 2021, representing a decrease of $8 2 million due to the repayment in full of the B Riley.

Total debt decreased 8.1 million at March 31, 2021, from 16.3 million at December 31, 2021, representing a decrease of 8.2 million due to the repayment in full the B. Riley.

That consists of $5 4 million on our revolving line of credit used to support working capital and $2 7 million of long term debt related to our solar assets and operating as fixed assets.

That consists of 5.4 million on our revolving line of credit used to support working capital and 2.7 million of long-term debt related to our solar assets and operating fixed assets. With that,

And with that I'll turn it back over to Jeff.

Thanks, John .

I'm excited about the progress that we've made over the last six months, where we were able to deploy our full platform.

I'm excited about the progress that we have made over the last six months where we were able to deploy our full plot.

We have assembled a great team that can utilize their combined experience to execute on the opportunities within this evolving and dynamic energy market.

We have some of the great team that can utilize their combined experience to execute on the opportunities within this evolving and dynamic energy.

We're excited to leverage our experience and capabilities to both accelerate the adoption of solar and drive value for our shareholders.

We're excited to leverage our experience and capabilities to both accelerate the adoption of solar and drive value for our shareholders. Thanks for your time today and I'll turn it back over to the operator.

Thanks for your time today, and I'll turn it back over to the operator.

We will open the lines for questions.

Operator.

Thank you ladies and gentlemen, the floor is now open for questions. If you have any questions or comments. Please press star one on your phone at this time, we asked how about posing your question you. Please pick up your handset if listening on speaker phone to provide optimum sound quality. Once again. Please press star one on your Touchtone phone if you wish to ask.

Thank you. Ladies and gentlemen, the floor is now open for questions. If you have any questions or comments, please press star one on your phone at the time. We asked our while posing your question. You please pick up your handset if listening on speakerphone to provide optimum sound quality. Once again, please press star one on your touchtone phone if you wish to ask a question. Please hold one.

Ask your question.

Please hold while we poll for questions.

And your first question today is coming from Jeffrey Campbell from Alliance Global Partners. Jeffrey Your line is live.

And your first question today is coming from Jeffrey Campbell from Alliance Global Partners. Jeffrey your line of life.

Thank you good morning.

Morning, Jeff.

John mentioned installation challenges during first quarter 22. Could you provide some detail on this?

John mentioned installation challenges during first quarter 'twenty two could you provide some detail on this point.

Yes. This is related to the weather and seasonality of the northeast the.

This was related to the weather and seasonality of the northeast. The challenge is getting on roof stirring.

The challenge is getting a group string.

Bad weather, whether below zero degrees in snow.

you know, bad weather, weather below zero degrees and snow.

Okay.

What your revised guidance whats your expected revenue cadence for 2022, including the first quarter 'twenty result.

expected revenue cadence for 2022, including the first quarter 22 result.

Can you repeat that Youre looking for.

Sure.

Sure. I'm tiny, we now have revised guidance of 125 million. I'm trying to guess some sense of what you expect the revenue cadence of that 125 to be. Yeah, over the rest of the year. Yeah, the modification and guidance due to utility projects pushed in the 2023. And so as we had looked at,

We now have revised guidance of 125 million I'm trying to get some sense of what you expect the revenue cadence of that 125 to be yet.

The modification in guidance is due to <unk>.

Utility projects pushed into 2023, and so as we had looked at.

As we look at these projects we had communicated that we thought we would.

As we look at these projects, we had communicated that we thought we'd achieve NTP.

<unk> NTP.

In late Q3 and recognize revenue in Q4.

in late Q3 and recognized revenue in Q4.

So the.

So the change there would be to keep or revenue expectations.

The change there would be two Q4.

Our revenue expectations.

Okay. That's helpful. Thanks.

Despite the 44% drop in revenues quarter over quarter gross margin improves.

Despite the 44% drop in revenue is quarter of the quarter, gross margin improved.

John touched on this briefly in his remarks, but I wondered if you could expand on the strength.

John touched on this briefly and his remarks, but I wanted if he could expand on this trend.

Yes.

Yeah, we're focused on profitable growth and the combined skillsets of our organization, the availability of skilled workforce. We think we'll help us continue to drive margins. And then we move forward also, we've seen some...

Focused on.

Profitable growth and.

The combined skill sets of our organization.

The availability.

Skilled workforce, we think.

It will help us continue to drive margins.

As we move forward also we've seen some.

Some pricing power and our ability to provide.

pricing on our projects is really since the end of last year. Good.

Pricing on projects.

Really since the end of last year.

And it's starting to we're starting to see that now.

Okay.

And finally, I found the backlog growth of 41.2 million based on new demand. Simultaneous to the 40 million drop in annual guidance or confusing. And I'd appreciate a little bit of expansion.

Finally.

I found the backlog growth of $41 2 million based on their demand simultaneous to the $40 million drop in annual guidance all confusing.

Appreciate a little bit of expansion here.

Absolutely so.

Yeah, absolutely. So we build our backlog based on projects that are on your LLI or notice to proceed that have NTP. And so.

We build our backlog based on projects that are under LOI or notice to proceed that have NTP.

So.

The utility scale projects are do not currently exist in our backlog those are in our pipeline.

The utility scale products are do not currently exist in our backlog. Those are in our pipe.

And so as we are.

And so as we...

Sure.

As we assess those projects with the ability to recognize revenue in this year.

You know, as we assess those projects, we've been willing to recognize revenue in this year. We, it still remains in our pipeline, not in our backlog.

We it still remains in our pipeline and our backlog.

We had just become a less confident in our ability to both get NTP this year on those projects or secure panels to recognize revenue this year.

We had just become less confident in our ability to both get MTP this year.

On those projects or secure panels to recognize revenue this year.

Okay, so but.

Okay, so, but I appreciate that. I guess what I'm finding confusing is if we have 41, two addition in the back law.

I appreciate that I guess, what I'm finding confusing as if we.

At 41, two additions in the backlog.

That would seem like it would be enough to cover the whole.

that would seem like it'd be enough to cover the hole for the 40 million in drop. So is it that the 41, 2 and backlog is going to stretch into 2023? And this is why we still have.

<unk> $40 million and dropped so is it that the 41, two and backlog is going to stretch.

Into 2023, and this is why we still have.

The downward revision in the guidance, yes, absolutely, yes some of that.

and allow the revision and the guidance. Yeah, absolutely. Yeah, some of that's the bulk of that $41 million increase in backlog is industrial projects where we project 12 to 18 months before we recognize that revenue.

The bulk of that $41 million increase in backlog is industrial projects, where we project 12 to 18 months before we recognize that revenue.

Okay now that helps okay. Thanks, very much I appreciate it.

Now that helps. Okay, thanks very much. I appreciate it. Welcome. Thanks Jeff.

Thanks, Jeff.

Thank you.

Thank you. And the next question is coming from Justin Player from Rothkopflo Partners. Justin, your line of life.

And the next question is coming from Justin Clare from Roth Capital Partners. Justin Your line is live.

Hey, good morning, Thanks for taking my questions good morning.

Hey, good morning. Thanks for taking our questions. Good morning, Justin.

Justin.

So I guess first off here.

uh... so i guess first off here uh... i also wanted to ask about the guidance it was just wondering it was the guide lord really only due to the utility scale segment or were there any changes to be uh... the other divisions here uh... because you had previously provided expectations by division uh... so just wondering if we could get an update there on on expectations uh... you know for each division for revenue for twenty

Also wanted to ask about the guidance I was just wondering what does the guide lowered really only due to the utility scale segment or were there any changes to the.

The other divisions here because you had previously provided expectations by division.

I'm just wondering if we could get an update there on expectations.

For each division for revenue for 2022.

Yes, the adjustment in the guidance was due specifically to the utility division and.

Yeah, the adjustment in the guidance was specifically to the utility division and

Our ability to access panels by Q4 end.

Our ability to access panels by Q4 and some of the information back that we've seen that we may not have a DP by the end of Q3 as we ended up in just a minute.

Some of the information back that we've seen that we may not have been <unk> by the end of Q3 as we had anticipated.

Okay got it.

Okay, got it. And then for that utility scale project, what is the current expectation for when that will get panels and commence construction? And then what is...

And then for that utility scale project, what is the current expectation for when that will get panels and commence construction and then what does the uncertainty there at this point do you have.

uncertainty there at this point. Do you have visibility into getting panels into early 2023 or there's still a fair bit of uncertainty? I know there's the Department of Commerce case that is still ongoing. Yeah, I guess what's your visit?

Visibility into getting panels into early 2023 or is or is there still a fair bit of uncertainty I know there is the department of Commerce case that is still ongoing so.

I guess, what's your visibility in the module supply.

Yes module supply that we're seeing right now is Q1 Q2 of 2023.

Yeah, the module supply that we're seeing right now is Q1 Q2 of 2023. And, um,

Yes.

These projects will officially move into our backlog once we receive NTP and so.

These credits will officially move it to our backlog once we receive NTP. And so, you know, there's...

There is.

Timing from the utility on on when these projects will will achieve NTP.

is timing from the utility on when these projects will let you then TP.

Okay got it.

Okay, got it. And then the, you know, previously you had provided outlook for gross margins in 2022 by division. Just wondering if those expectations.

And then.

<unk>.

Previously you had provided outlook for gross margins in 2022 by Division.

Wondering if those expectations.

Remain the same outside of the utility scale.

remain the same outside of the utility scale division. You know, should we expect, you know, the same...

Division should we expect.

At the same.

Yes.

Essentially would you say that you're reiterating the margin guidance for the other segments portion or should we expect any change there.

Essentially, would you say that you're reiterating the margin guidance for the other segments, or should we expect any change there? No, yeah.

Yes, no change on the margin guidance.

Okay.

Okay, great. And then just on the backlog, you know, demand looks to be accelerating here. What's worrying if you just talk a bit more about what you think is driving that acceleration and maybe geographically where you're seeing the most.

Great and then and then just on the backlog.

<unk> looks to be accelerating here was wondering if you just talk a bit more about what you think is driving that acceleration and.

Geographically, where you're seeing the most strength.

Sure.

Sure. On the residential fat I think we're seeing strong demand really across the board, more so in our New York market as some of the utility rates have already adjusted, those have not happened in Vermont yet. So I would anticipate as we move forward, there could be some additional demand in Vermont coming from higher utility rates. We've seen strong pricing power in the residential market as well.

On the residential side I think we're seeing strong demand.

Really across the board more so in our New York market as some of the utility rates are already adjusted.

Those have not happened in Vermont, yet so I would anticipate as we move forward there could be some additional demand in Vermont coming from higher utility rates, we've seen strong pricing power.

In the residential market as well.

Okay.

Our ability to use our workforce.

Our ability to use our workforce between organizations and it will help us drive additional commercial.

Between organizations I think will help us drive additional commercial.

Demand as well.

and demand as well. And on the investor and utility side, we're seeing lots of products starting to come through out of Maine and on the development and design services and future work. We're seeing a lot of the red states embracing solar, seeing a lot of products in the southeast.

The industrial and utility side, we're seeing.

Lots of projects starting to come through in Maine.

And on the development and design services and future work, we're seeing a lot of the Red States.

Embracing solar.

Lot of projects in the South East.

Okay great.

Okay, great. And then I just did want to go back to module supply for one more question here, just on the other divisions that you have. What is the, well I guess do you have all the module supply in inventory needed for the other?

And then I just did want to go back to module supply.

For one more question here just on the other divisions that you have what is the.

Well I guess do you have all of the module supply in inventory needed for the other.

Divisions for 2022.

divisions for 2022 or Or if you could just talk about your your access to panels for for those divisions is there any are there any challenges We have increased the amount of inventory from Q40 Q1 to meet that demand we have

Or.

Or if you could just talk about your access to panels for sure for.

For those divisions is there any are there any challenges.

We have increased the amount of inventory from 240 Q1 to meet that demand we have.

Purchase orders in and a good line of fight on

<unk> orders in the good line of sight on.

Product for the residential and commercial markets on the industrial side.

products for the residential and commercial markets on our industrial side. Most of the projects that we have, they had already purchased.

Most of the projects that we have they had already purchased.

panels for tax equity, and so we don't anticipate.

Panels.

For tax equity and so we don't anticipate.

any issues on those projects.

Any issues.

On those projects.

Okay.

Okay, that's it for me. I'll pass it on. Thank you.

Thats It for me I'll pass.

Thank you.

Thanks, Jeff.

Thank you and the next question is coming from Noel Parks from Tuohy Brothers.

Thank you and the next question is coming from Noel Parks from 2He Brothers. Know your line of life. Alright, good morning.

Your line is live.

Hi, good morning.

Good morning, all.

I was wondering if you could talk about the commercial sector and if you could characterize maybe what's going on between sort of the.

I was wondering if you could talk about the commercial sector. And if you could characterize maybe what's going on between sort of the current wave of adopters and maybe the early adopters, where you can just sort of talk about just any differences or trends you see in.

Current wave of adopters and and maybe.

The early adopters right.

Sort of talk about.

Ah.

Just any any differences or trends you're seeing.

Yes.

Yeah, I think on the first slide we're seeing certainly the EV infrastructure drive some of that demand. I think companies are being into assess certainly now the price of oil and vehicle how they move forward with their vehicle fleets. And that's creating conversations around having clean renewable energy to.

On the commercial side, we're seeing certainly the EV infrastructure drive some of that demand.

I think companies are beginning to assess.

Certainly now with the price of oil and diesel how they move forward with their vehicle fleets and.

And that's creating conversations around.

Clean renewable energy too.

To charge those vehicles, it's always going to be.

to charge those vehicles, it's always going to be for businesses.

For businesses.

It will be the total cost of operation on these vehicles.

As a.

And as they make this transition, they're gonna look at solar and future proof, their electric cost.

As they make this transition theyre going to look at solar and future proof their electric car.

Sure sure.

Sure, sure. Great, that's helpful. And sticking with the sort of EV infrastructure, so it sounds like

That's helpful and.

Sticking with the sort of EV infrastructure.

It sounds like.

Is it safe to say that that's really just a part of the <unk>.

Is it safe to say that that's really just a part of the commercial sales effort or in your other segments is EV infrastructure sort of like a...

Commercial sales effort or.

In your other segments is EV infrastructure.

Sort of like a.

separate sales and marketing task or team you have The infrastructure will take place. We think across all sectors where they view the residential rollout and some of the commercial stations And then there'll be the support that the utility will want on that and so we really see it impacting each of the different segments that we serve as

A separate sales and marketing task our team we have.

Okay.

Yes.

Infrastructure will take place, we think across all sectors.

The residential rollout some of the commercial stations.

And then there'll be the support that the utility will want on that and so we really see it impacting each of the different.

Segments that we service.

Okay, great. Thanks, and you also mentioned.

Okay, great, thanks. And you also mentioned that you would see an uptick and I think C&I projects in Maine. And I was just curious whether there are any particular drivers about the timing of those coming now.

That you had seen an uptick in.

I think C&I projects in Maine, and I was just curious whether there were any particular drivers about the timing of those coming now.

No.

No, you know, there's been a large backlog pipeline of projects in Maine that have been coming through the utilities and I'm the project that we've been working on have come through already to begin construction. So

Been a large backlog and pipeline.

Pipeline of projects in Maine that have been coming through the utilities.

Some of the projects that we've been working on.

Have come through and we're ready to begin construction so.

I don't think any specific drivers there, but there is a

I don't think any any specific drivers there, but there is.

There is a large pipeline of projects in Maine that we've been working on and we think we'll start to see those flow through.

Okay, Great and just a last one for me.

Okay, great, and just for last one for me, just as you've been talking about

Just as you've been talking about.

Panel availability and so forth.

panel availability and so forth. And if you look at all the factors that have to be in place to move forward with implementation, can you just talk a little bit about the labor piece of that when you catch up with panels? Is there any other potential bottlenecks or maybe relative years that expectations to patients seeing anything with costs that...

If you look at all of the.

Factors that have to be in place.

Move forward with the implementation.

Could you just talk a little bit about the labor piece of that when you catch up with panels.

Is.

Are there any other potential bottlenecks or.

Maybe relative to your expense.

Expectations.

<unk> seen.

Seeing anything with costs that.

I want to be thinking about.

Yes, I think our multi segment platform one of the reasons, we focus so that we could have some flexibility in labor and our ability to.

Yeah, I think our multi-stagned platform, and one of the issues we both is, is that we'd have some flexibility in labor, and our ability to use that skilled labor where the demand sort of comes through. And so we are focusing on that. We are seeing the same inflationary pressures that everyone else in the industry is seeing. There is some labor inflation and commodity inflation. And the nice part about that is we've also seen a lot of percent year over year,

Use that skilled labor, where the demand sort of comes through and so.

We are focused on that we are seeing the same inflationary pressures that everyone else in the industry has seen.

There is some some labor inflation and commodity inflation.

The nice part about that is we've also seen 11% year over year average increase in utility rates.

Which will continue to drive this.

which will continue to drive as to darn have low cost.

Desire to have low cost.

Renewable solar power so.

renewable solar power. So while we think there are inflationary pressures,

While we think there are inflationary pressures.

The price of power is also going up which makes sense.

You know, the price of power is also going up, which makes even a strong driving me for solar going forward.

Given the strong revenue for solar going forward.

Great. Thanks, a lot that's all for me.

Thank you Don.

Thank you and there were no other questions at this time I would now like to hand, the call back to Jack <unk> for closing remarks.

Thank you and they will know other questions at this time. I would now like to hand the call back to Jeff Beckham for closing remarks.

Thank you.

Thank you everybody for coming on our conference call today, we appreciate your time and engagement, allowing us to share our progress and performance with you.

Thank you everybody for coming on our conference call today. We appreciate your time and engagement allowing us to share our progress and performance with you. And we look forward to providing you updates in the future. Thank you. Bye.

We look forward to providing you updates in the future. Thank you.

Alright.

Thank you ladies and gentlemen, this does conclude today's conference you may disconnect. Your lines at this time and have a wonderful day. Thank you for your participation.

Thank you ladies and gentlemen, this does conclude today's conference. You may disconnect your lines at this time and have a wonderful day. Thank you for your participation.

Q1 2022 iSun Inc Earnings Call

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