Q3 2022 iSun Inc Earnings Call
Yeah.
Good morning, ladies and gentlemen, and welcome to the ice in third quarter 2022 earnings Conference call.
At this time all participants have been placed on a listen only mode. If you have any questions or comments. During the presentation. You May press star one on your phone to enter the question queue at any time, we will open the floor for your questions and comments after the presentation.
It is now my pleasure to turn the floor over to your host Beth Kurth ma'am the floor is yours.
Thank you and good morning, we are pleased to welcome you to iphones conference call to discuss financial and operating results for the third quarter of 2020 to Jeffrey <unk>, Chairman and Chief Executive Officer will provide an update on the overall solar energy landscape and how our broad solar platform addresses opportunities there today, John Sullivan Chief Financial Officer.
<unk> will provide an overview of the third quarter 2022 financial results and operating performance. After our prepared remarks, we will open the lines to address any questions. As a reminder, the earnings release, which can be found on iphones investor website at Www Dot iPhone energy Dot Com includes financial disclosures and reconciliations.
non-GAAP financial measures any comments that we make on today's call may include forward looking statements that refer to management's expectations or future predictions. These statements are made as of today and management undertakes no obligation to update these forward looking statements in the future such statements are subject to risks and uncertainties that could cause actual results to differ from.
Management's expectations with that I will turn the call over to CEO , Jeff Tech.
Thank you Beth.
Morning, everyone and thank you for joining our call today and I'm eager to discuss recent progress with the Investor community.
Confident that we are advancing the company towards achieving our mission to accelerate the nations adoption of solar energy over the past quarter, we saw consistent progress across our operations and the proof of our approach is beginning to be reflected in our solid quarterly results.
With revenues three times higher than the same quarter last year.
We see great potential ahead supported now by increased demand for solar energy across all of our market segments and constructive long term climate change legislation.
Today I'm going to provide some updates to you on our progress, including several recent significant wins.
We achieved the value and appeal of our offerings.
These underpin our confidence in the Companys strategic plan and our ability to execute on it.
These awards increased the size of our record backlog.
Provide more opportunities for us to build pipeline for future growth as well.
In the past few years, we have completed our platform, which was carefully and strategically constructed.
To enable us to provide a full range of products and services to all of our customers.
This approach is a true advantage competitively.
To meet customers at any stage of a solar project lifecycle.
This approach combined with our strategic investments differentiates us from our peers.
We have begun to see the benefits of this strategy and in 2023 and beyond we'll realize more of the opportunities it affords us to drive our long term growth on a profitable basis.
Lastly, on a more near term basis I want to address.
<unk> 2022 financial outlook and provide some preliminary insight on our expectations for 2023.
With that let me begin with a brief review of our top line financial and operational highlights from the third quarter of 2022.
Our revenue nearly tripled to $19 million compared to the prior year. Despite continuing specific challenges in some of our key markets.
Well some of these issues are industry wide, such as supply chain issues inflationary impacts on commodity prices.
Interest rates. There were also very specific project delays related to cluster studies in Maine, and one year CPG extensions in Vermont.
Given these macro level challenges coupled with the issues in our key markets. We are very pleased with our progress and our teams ability to execute on our plan in this environment.
But our gross margin dipped slightly due to the large material increases we remain confident of our overall trajectory of margin expansion because of the expected synergies between our divisions as we scale.
Over the past several calls we've described how iPhone platform approach provides a full suite of services, including development and design engineering procurement installation storage monitoring and maintenance to the entire solar market.
On Sept, two completion approach to servicing our customers.
As we began this journey we saw the platform approach is providing value to all potential customers that every scale from EV infrastructure and solar carports to residential commercial industrial and utility.
We are beginning to recognize that potential leveraging the strategic investments made over the past few years with opportunities to scale and drive accelerated growth over the long term.
The platform approach is also designed to diversify our revenue streams and offset seasonality of cash flows in our business.
Well, it's still early in this journey, we're seeing initial indications that this approach is indeed working.
Appealing to a wide range of customers.
And the proof is in our expanding backlog, where we added $52 million in backlog in the third quarter alone.
This brings our total backlog to a record $179 1 million.
In addition to our backlog.
Internal pipeline of projects reached one three gigawatts and due to our strategic investments with EPC rates on external projects of 500 megawatts as of the end of this year's third quarter up an impressive one five gigawatts from the same point last year.
This total pipeline of one eight gigawatts will flow into our backlog as these projects move through the development process and approach notice to proceed.
This underscores the effectiveness of our strategic plan both in terms of total project backlog and pipelines, but also evidenced in the expansion of new customers and the increased customer demand we have experienced across the business.
Credibly proud of our team's hard work in attaining these results.
In addition to our expanded footprint and customer base, we've seen more opportunities to address the even higher demand for evs that is accelerating the need for infrastructure to support customers at home and on the road.
The skills and expertise of items teams enable us to serve the needs of both commercial and industrial customers, who are adapting to the electrification.
We continue to work on our large EV infrastructure contracts announced earlier this year with site selection and permitting well underway.
We've just begun to deliver units under this contract and expect an acceleration in deliveries to occur in 2023.
As Ive discussed with you over several prior calls.
Since we have made in our business over the past several years are part of our strategic approach designed to serve our customers at any stage of the solar projects from conception to completion.
These investments are beginning to bear fruit this end to end approach.
How's us to meet the customer wherever needed it creates deep relationships and provides us with even more opportunities to build our backlog and grow revenue.
These relationships also provide us opportunities to acquire solar assets at pre NTP status or.
Our internal development teams will complete any remaining milestones and bring projects to notice to proceed. These projects will then be constructed by iPhone and some of these will be sold into our joint ventures, where we retain an interest in the complete the project, which will generate revenue and provide future cash flows this year.
We will begin to recognize initial contribution from these JV initiatives, which we anticipate will grow nicely in the future and as designed provide recurring revenue that offsets the typically seasonality of our operation.
Additionally, this early involved allows us to better plan the deployment of our resources.
<unk> skilled labor.
Let me share with you more details on some of our recent wins.
These new business awards, primarily in our commercial and industrial division represent both important market share gains, but also the effectiveness of our strategic plan.
First we had three development projects that are approaching MTP two of these projects, which we announced in the third quarter have been sold into our joint venture with fusion renewables. One additional project of $6 eight megawatts is in negotiation with several partners and we expect to transact on that project in the coming months.
We also continue to be successful in Maine, We recently won.
PC contracts on a $12 one megawatt portfolio. This award builds upon the companies already completed 18 four megawatts of projects in that market.
This new portfolio valued at $9 $3 million is with a new strategic customer and we are delighted with the success.
Similarly, another recent three two megawatt and $3 million award for a new contract with the Maryland customer establishes <unk> presence in the important mid Atlantic energy market of Pennsylvania, and New Jersey and Maryland.
This continued geographic expansion is another key element of our strategic plan to drive growth and achieve our company's mission again, we're very pleased with the team's hard work.
In achieving this important milestone.
We view. These recent wins is just the tip of the iceberg.
Our team continues to work closely with several of our developer partners.
Adding development engineering services on select projects.
Which we expect will translate into a competitive advantage for Iceland and executing on these contracts in the future.
I also want to share a few words about the impact of the recently enacted legislation.
We've said repeatedly we believe that the long term support stability provided and the legislation removes uncertainty and impediments to financing and constructing solar energy projects.
This should make it easier for customers to make the necessary commitments to build the alternative energy our country needs.
We remain convinced that this legislation will afford Iceland and the industry genuine benefits as we move forward.
Even as we await finalized language rules from the Treasury Department regarding tax credits and other elements.
Ironically, one of the more immediate outcomes of this legislation has been to actually slow down the typical year end rush to complete projects we.
We had previously discussed specific delays that we're seeing in Vermont around permitting as well as inflation related delays, but now appears.
<unk> benefits associated with the new legislation have mitigated typical yearend urgency and for US has impacted second half revenue expectations moving more implementation into 2023 and growing our backlog.
As we've said before we have seen no customer cancellations and frankly, we see heightened customer demand to as I mentioned, but the typical industry yearend urgency has diminished this year.
Customers are confident there'll be able to act promptly and received the expected attractive tax benefits once the Treasury Department languages finalized.
With that let me address our outlook.
This year's operating and financial plan was built around the implementation of our platform approach.
And the assumption that we would return to a more normalized supply chain and business environment.
Instead, what we've seen is continued supply chain constraints inflationary pressures seen in commodity prices labor.
Labor constraints and higher interest rates.
All of this is quite havoc with our ability to achieve the financial targets, we set for this year.
The higher energy costs are definitely contributing to the increased demand that we're seeing and.
And thus we remain confident that it's a question of when not if we were able to capture the increased demand and associated revenues.
We also continue to make good progress in advancing our development pipeline, which will flow into our backlog.
Lastly, as we discussed our strategic investments will assist in geographic expansion and position us for continued growth.
For those reasons and based on the current environment. We are adjusting our 2022 revenue guidance to a range of $70 million to $75 million.
We remain committed to our mission and returning the company to profitability and positive cash flow.
With that I'll turn things over to John .
John .
Thank you Jeff.
We are pleased with the revenue growth we produced in the third quarter as the demand we had anticipated earlier began to be recognized.
Provide an overview of our statement of operations as well as provide details on our segments before turning it to the balance sheet.
I Sun reported third quarter 2022 revenue of $19 million representing.
Representing a $12.4 million or 185% increase over the same period in 2021.
For the first nine months of 2022 revenue was $56 million, representing a $23 6 million or <unk>, 87% increase from the comparable period in 2021.
Revenue growth was driven by the continued fulfillment of higher residential consumer demand and effective execution of our commercial and industrial backlog.
While we continue to execute against our existing backlog, we also generated new demand and added $52 million in new business during Q3.
Total backlog as Jeff noted was a record $179 1 million as of September 32022.
By segment, our residential division generated revenue of $10 2 million and $24 3 million in the third quarter and year to date 2022, respectively.
Customer orders are approximately $25 8 million and are expected to be completed within three to six months.
Our commercial division generated revenue of $1 1 million at $3 4 million in the third quarter and year to date 2022, respectively and had a contracted backlog of approximately $12 6 million expected to be completed within six to eight months.
Our industrial division generated revenue of $5 9 million and $19 1 million in the third quarter and year to date 2022, respectively.
As a contracted backlog of approximately 147 million expected to be completed within 12 to 18 months.
Lastly, our utility and development division generated revenue of $1 8 million and $3 8 million in the third quarter and year to date 2022, respectively.
We have one three gigawatts of projects currently under development that will be added to our backlog upon achievement of NTT.
Gross profit in the third quarter was $3 6 million compared to $1 3 million during the third quarter of 2021.
For the first nine months of 2022 gross profit was $10 5 million compared to <unk> 8 million in the same period 2021.
Gross margin for the third quarter. This year was 19% compared to 19, 5% during the same period in 2021.
Reflecting the impact industry wide pressures associated with supply chain and component inflationary costs.
As the synergies among our segments increase we expect our overall margin expansion trajectory to continue.
Operating income in the third quarter was a loss of $4 9 million compared to a loss of $1 6 million in 2021 third quarter.
Year to date operating income was a loss of $16 2 million.
Her to a loss of $7 million in the same period in 2021.
Noncash depreciation and amortization expenses were one 8 million in the third quarter of 2022 compared to a <unk> 3 million in the prior year period.
Year to date, 2022, noncash depreciation and amortization expenses were $5 3 million compared to a point $6 million in the same period in 2021.
<unk> reported a net loss of $4 9 million or <unk> 36 cents per share in the third quarter of 2022 compared to a net loss of <unk> 7 million or <unk> <unk> per share in the same period in 2021.
Year to date 2022, net loss was $13 5 million or <unk> 98 per share compared to a net loss of $5 1 million or <unk> 60 per share in the same period in 2021.
Adjusted EBITDA for the third quarter of 2022 with a loss of $2 5 million or <unk> 18 per share compared to a loss of $1 1 million or <unk> 12 per share in the same period in 2021.
Year to date 2022, adjusted EBITDA was a loss of $3 4 million or <unk> 24 per share compared to a loss of $4 8 million or <unk> 56 per share in the same period in 2021.
Total debt decreased to $8 2 million at September 32022 from $16 3 million at December 31, 2021.
Representing a decrease of $8 1 million associated with the repayment of a bridge loan and ongoing repayment of long term debt.
As noted in today's press release, and our form 8-K filing.
We're very pleased to have finalized a new debt facility of $25 million in total that closed after the end of the third quarter.
This new facility allows us to consolidate our debt and offers us access to working capital for operational execution as needed.
And with that I'll turn it back over to Jeff.
Thanks, John .
I'm really excited about the progress that we've made thus far through 2022.
Our year to date revenue of $50 6 million already exceeds our full year 2021 results.
Our year to date adjusted EBITDA.
Loss of $3 $4 million is a significant improvement over our prior year adjusted EBIT loss of $4 8 million.
We expect the positive financial improvement to continue with the deployment of our full platform and execution of our record backlog, providing us opportunities to capture revenue in every stage of a solar project lifecycle.
Proof of our commitment to being a leader in this in solar nationally we've successfully expanded beyond new England into important energy markets, including the mid Atlantic.
We won new awards with new and current customers.
Our backlog and pipeline are record levels, and we have assembled a great team to execute on the opportunities we are producing with this evolving and dynamic energy market.
I'll now turn it back over to the operator to open the lines for questions.
Certainly 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.
We do ask that we're posing a question. Please pickup your handset if you're listening on speaker phone to provide optimum sound quality.
Once again, if you have any questions or comments. Please press star one on your phone.
Your first question is coming from Jeffrey Campbell from Alliance Global Partners. Your line is live.
Hi, good morning.
Morning, Jeff.
Can you talk about the announced awards in Maine, and Marilyn how they came about.
Specifically, which Iceland silos theyre going to be a part of.
Sure.
The Maryland project with an existing customer of ours that we've worked with over the years and helping them.
Build out renewable energy at various but some of these <unk>.
The main projects are a new customer that we've been working with.
Providing some pre NTP engineering services to end.
One maybe its three separate projects up there 12.1 megawatts.
So over $9 million projected revenue.
So both good wins.
Great projects for us.
In our industrial Division. These are the type of projects that we've done.
Yeah.
Many many many of these projects over the years.
We're confident about our ability to execute and really extended for our progress side book.
Both territories.
Okay, Great and just as an aside sensor industrial division projects, but they are smaller scale than some of the other <unk>.
<unk> build the things Youre working on does that.
Increase the probability that they will be completed sooner than later or is that not really matter at this point.
Both of these projects are now in active or I'll call active construction at various stages. So we're working on those daily casinos.
C notes.
Work through the construction process and be completed.
Q1, Q2 of 2023 likely for.
All of those projects.
Okay.
You've noted supply chain.
Strange effect in key materials in the solar industry is related to a U S. China tariffs. It seems like it's been going on forever. So.
What if anything do you see improving on this front either broadly or specifically for ISR.
Oh interesting.
I think we're taking the internal approach that it's not going to improve.
I think we've seen some of the commodity prices come down a little bit.
Better access to materials that we've seen previously but.
I think internally, we're taking the approach that this is sort of the new normal we need to.
Operating in this environment.
So no we're not.
I'm not seeing enough improvement.
That brings me.
A whole lot of confidence that things will change from where they are now.
So in this new normal.
How do we work around those tariffs I mean are there are there other sources of supply that you can hit do you see more material being in.
In North America.
We're working with there.
Certainly were.
On the payments side, we're certainly looking at India as a place to to source additional panel supply.
We have some good relationships there.
We.
We certainly as we look at projects, we assume that the timelines are going to be a little bit longer than we had in the past.
There is.
Occasionally.
Delays outside of our control whether it be utility equipment or third party equipment is being purchased.
Some of that's outside of our control. So we are really taking the approach as we start looking at when projected revenues of command and how things will be modeled and I think youre seeing some of the Q3 Q4.
That work is taking longer to get to NTP, because there's equipment that are purchased by third parties that are taking much longer than they had previously gone when we've had.
Interconnection delays where are.
Initial feedback was 90 weeks.
And we all know that can't work. So there had to be a work around on that so those are the sort of industry challenges and struggles that are going on and we find ourselves trying to work through these everyday.
Shortening the supply chain, where we can and trying to adjust our.
Our expectations and.
Okay.
Are there other.
Skilled labor and other things to accommodate the new schedules.
Okay. That's very helpful. You also noted labor constraints.
We've actually seen that coming up in other sectors as well I just wonder do you.
Yeah that is a wage inflation issue or is there something else going on.
Yes, I think this has been a longtime coming with skilled labor in the trades, where there is sort of in this chronic shortage in when you have surges in areas with the specific type of work.
It can cause some supply chain labor supply chain issues.
We're working through these we've been building complex projects with tight schedules for for 50 years, and we have a team in place ready to go.
We're ready to adapt to the changing schedules and the changing markets and.
We will get these projects built.
Remember not completing the project. So we know we will build these and we'll work through all of the <unk>.
Apply chain challenges, including including those associated with skilled labor.
I thought this was interesting you noted the IRI language as an impediment to closing contracts later in the year.
Is this mainly affecting the commercial and industrial sectors or is that affecting your entire portfolio.
What do you see as the sticking points.
How do you see these being on.
Yes, I see this as we're seeing this mostly in our commercial and industrial Division.
In prior years, though is this rush at year end to make sure that you have projects that are interconnected. So they qualified for the ITC because oftentimes those are step down coming.
And that what we've seen is there's actually been a step up of 4%. So.
Like any.
Anyone with act.
Active portfolios.
Really including and including our one three gigawatt portfolio all of evaluations.
Those assets have now gone up due to the increase in the year.
And the tax credits.
Many of these were probably model it to 22% with the expected step down coming.
And instead, they have stepped up to 30%, which helps offset some of the inflationary pressures, but also.
I think slowed down that urgency for that for the year end completion, because that 30% tax credit was also available for the next 10 years.
So slightly different slightly.
Slightly different year end than we had expected day based on on all of those.
<unk>.
Right that makes sense and I think.
It's probably fair to assume that we're going to see smoother.
Limelight is going forward at least for the next 10 years because of that but.
Is there.
Oh I just want to make sure I understood. What you said in your remarks is there something specific in the IRI.
Language is approved.
Somehow opaque or confusing and thats, having to be worked out now or is this just.
More driven by the fact that people have a little bit more time.
<unk>.
Cause their contracts and these other things that we've been talking about that or.
Pressures on the industry components, and labor and all that sort of thing.
It has to do with the IRS did was accretive there.
One year window for a 30% tax credits and I think the rush to complete projects at year end.
Trace that step down and the devalued project.
And that urgency that we typically would see.
Is diminished.
There may be other factors in there.
Some of those factors could be some of the inflationary pressure we saw on people.
And the time, maybe to start moving that project forward in June .
To get it completed by year end, we were at the height of.
100, and some of the inflationary pressures on commodities.
A delay there just ends up moving our project into 2023.
Okay, and finally, just kind of at a high level, we've been pretty specific with this stuff.
Horses to you.
So you're continuing to be a challenge for revenue growth and what are you seeing improving as you move forward in 2023 here.
Here I mean, more specifically Verizon.
Yes.
We are incredibly.
Confident.
And our revenue and revenue growth, we have this large backlog, which has been growing just due to some of these delays.
We built the systems and have the team in place to execute on the solar.
Were comfortable and as these projects flow through the final stages of development and released by the B asset owners and developers.
Executing on our plan, we will see really strong revenue growth as we move forward. Additionally, we are building. This pipeline we've made strategic investments to ensure that we continue to have high volume of.
Really strong opportunities come to the company.
So I think as we look out 234 years, when we had this one eight gigawatts of.
Of projects with.
At a greater demand for these projects than we'd expected win win.
From the development process is started on these.
And I think additionally, not only greater demand, but certainly a higher value.
Of these projects given the CIO.
I hear a bell and the consistency on the 30% tax credit.
A lot of these projects.
Remember that initially we had expected.
Three years in development and stepped down in valuation based on ITC. So.
The value of the projects that we'll be working on and it's gone up.
The demand is stronger than it's ever been medically seat.
<unk> demand as we move forward.
In addition to that we already have in our backlog.
$179 million of projects. So we're really confident that we're going to see currently.
Good growth, but sustained growth for the coming years.
Alright, Okay. Thank you I appreciate it.
Thanks, Jeff.
Thank you. Your next question is coming from Justin Clare from Roth Capital. Your line is live.
Yeah, Hi, Thanks for taking our questions I guess, just following up on one of the.
Good morning.
I just wanted to follow up on the utility scale segment here.
US very large one eight gigawatt opportunity.
Wondering if you just give us a sense for based on what you know now when when could those projects reach NTP and I know it can be a bit difficult to predict but how many of those projects could potentially be.
Could reach NTP in 2023.
And how many megawatts might you be able to complete in that in that segment.
Sure.
Let me just add a little bit of color around the one eight gigawatts 1.3 sort of internally being developed and then the 500 megawatts through.
Strategic investments and partners that we have and will be coming through not all of those are utility scale. Many of those are.
Within the industrial scale.
And we will see.
We're already beginning to see projects flowing through our development pipeline.
I think we mentioned we have three such projects that are coming through so we're encouraged by that.
We anticipate certainly anti industrial scale that three to 10 or 15 megawatt sized projects.
Anticipate several of those.
Moving through the process and achieving NTP next year and I think there's the possibility of having one of the.
Larger 80 megawatt projects achieve NTP in 2023, but you know what I think you can as you can.
Tell by.
The call and how things have gone based on I think are in.
Our impression that we would return to.
More normalized environment that hasn't happened.
It would be incredibly conservative on how we start laying out when prices are going to hit.
Because as.
As we know they're coming.
There are so many so many parts of the center outside of.
Our control.
I don't want to get.
Putting it back into a position where we are overly optimistic about.
Okay.
Business environment, and the ability for projects to move through as quickly as we believe they will so.
I don't know if that helps you a whole lot but.
Trying to be as transparent as I can and there's just not as much visibility on the timing of some of these projects as we.
As has previously been elements, we'd like so.
That being said that being said they are not all utility scale projects that are smaller projects. In there is there is a lot of them that we're working on.
So certainly some of those will flow through and continue to.
Could be projects that we're developing that will feed our backlog.
Okay.
That's helpful.
And I guess just.
Within utility scale segments, just wondering if you could share a little bit more about what is.
Causing the delays there in NTP is it does it really permitting interconnection is it both and then are those market specific where you're seeing the most challenges or was it really industry wide just trying to understand.
The causes here of $1 billion.
Yes, we've been pretty.
Narrowing our focus on utility scale, we're not out in every market. So I can't really talk about whether or not some of these delays our nationwide or not I mean oftentimes these projects take.
<unk> three or more years to develop.
So we actually feel like we're moving.
Pretty well through the development process all needs, but yes, there are.
Our utility studies that need to be done in utility upgrades on various projects.
Different environmental studies and permitting.
So as we work through those milestones will continue to update our.
Projected npp's internally.
But.
At this stage, we just don't have.
Great.
Really good ability to.
That's an exact in tpa in on some of these larger projects.
Right great Okay.
And then I guess just shifting to <unk>.
Margins.
Gross margin dipped a little bit in Q3, you mentioned material cost increases just wondering what the outlook is there material cost increases likely impact Q4.
Because you did mention that you expect margins kind of trend upward over time, so how should we think about the outlook there for margins.
Sure we've seen pretty good.
<unk> to update our pricing.
So, we're pretty confident with or without pricing.
Have a good control over the material costs.
Internal efficiencies, we think should drive an increased gross margins.
So.
And we're feeling that.
The material prices have stabilized.
At this point.
Mhm, Okay gotcha.
Sure.
Okay go ahead.
Yes, so I think we've seen material prices stabilized. So we think we will see an increase.
Continue to see the increases in gross margins.
<unk> seen in previous quarters.
Right Okay.
And then just on the.
The debt the debt facility that you.
I have put in place here for the next tranche.
Can you help us understand the conditions that need to be met.
Two to kind of.
Issue that next $12 5 million of debt and then what the timing of that might be.
Based on what Youre seeing.
Hi, guys. This is John here I'll take that one.
So congrats to the timing of the second tranche the estimate for that would be Q3 of 2023.
And revenue and adjusted EBITDA targets that would need to be met on a quarterly basis in order to release that tranche.
That is one that is optional for the company, it's not a required that we take it so that is out there for future growth needs at this time.
Okay, Great. That's it for me I'll pass it on.
Thanks, Justin.
Thank you. Your next question is coming from Noel Parks from Tuohy Brothers. Your line is live.
Hi, good morning.
Good morning.
Hi, just a couple of things I, just wondered if you could talk a bit more about the competitive environment.
You mentioned Jeff.
The full platform of services that you can offer and it sounds like that is getting traction and so I wonder if you could talk some more about.
How its helping you differentiate yourself maybe talk about some of your your sales engagements recently.
Again, how the approaches playing into those.
Yeah, our approaches to work earlier.
The asset owners, providing them additional upfront services.
And help them with some of the bottlenecks as they are trying to work projects through their development process with our development teams.
I think that gives us it helps us build strong relationships early it gives us.
Vantage.
And securing those projects whether they are single source to us oftentimes after we've been involved in that process.
Or if it's in a competitive bidding.
Environment, we feel like being above early with the customer.
Being involved in their team thats doing some confidence in them and our ability to execute on.
The current work.
And our knowledge that we.
Gather through that process, we think gives us an advantage so.
From a competitive point of view, we havent seen many changes other than the.
The way, we're attacking and executing sort of that pre NTP work I think gives us an advantage in securing those projects.
That speaks to the.
The size and scale of our backlog that we've been successful in executing that and continuing even in this environment to grow that backlog. So.
We've been pretty happy with that approach.
Great and so then is it fair to say that at times.
<unk>.
Hi.
Coming in or.
Becoming engaged with that.
Potential customer.
Maybe sort of displacing either.
Talks with another vendor that they've.
Got underway and either they are finding that vendor isn't isn't going to be sufficient for sort of meeting all their envision need I kind of wonder the degree to which you kind of.
It can be the adult in the room with some of these situations.
Yes, the entire plane it's completely.
Disrupt.
Conversations with other potential.
Competitors, we want to we want to come in early we're going to bring our COO.
Confidence to them and build confidence with our customer want to show them the value that we can create when they are involved with us early.
And we want to give them great pricing on the backend so.
Sort of that ease of transaction. These are large complicated we are regulated projects was incredibly difficult supply chains and have one company that you can rely on to.
To bring you through the process from concept to completion I think really helps.
Customers and a lot of ways, so being there early instilling that confidence in the customer and then executing.
On that pre NTP work and I think really helps us secure the backend EPC work.
Okay, great. Thanks, a lot.
Thank you.
Thank you that concludes our Q&A session I will now hand, the conference back to Jeffrey Peck, Chairman and Chief Executive Officer of Eisen for closing remarks. Please go ahead.
Thank you everybody for joining the call today and we appreciate your time to allow us to share our progress and performance of the investment community.
If any questions. Please feel free to reach out to us at IR at Iceland energy Dot com.
Thank you and have a good day.
Thank you ladies and gentlemen. This concludes today's event you may disconnect at this time and have a wonderful day. Thank you for your participation.