Babcock & Wilcox Enterprises Inc (BW) 2023 Q1 法說會逐字稿

Hello, everyone, and welcome to the Babcock & Wilcox Enterprises' first quarter 2023 earnings conference call. My name is Nadia, and I'll be coordinating the call today. (Operator Instructions)

大家好，歡迎來到 Babcock & Wilcox Enterprises 2023 年第一季度收益電話會議。我叫 Nadia，今天我將負責協調電話會議。 （操作員說明）

I will now hand over to your host, Sharyn Brooks, to begin. Sharyn, please go ahead.

我現在將交給主持人 Sharyn Brooks 開始。 Sharyn，請繼續。

Thank you, Nadia, and thanks to everyone for joining us on Babcock & Wilcox Enterprises' first quarter 2023 earnings conference call. I'm Sharyn Brooks, Director of Communications. Joining the call today are Kenny Young, B&W's Chairman and Chief Executive Officer; and Lou Salamone, Chief Financial Officer, to discuss our first quarter results.

謝謝 Nadia，也感謝大家參加 Babcock & Wilcox Enterprises 2023 年第一季度收益電話會議。我是傳播總監 Sharyn Brooks。今天加入電話會議的有 B&W 董事長兼首席執行官 Kenny Young；和首席財務官 Lou Salamone 討論我們的第一季度業績。

During this call, certain statements we make will be forward looking. These statements are subject to risks and uncertainties, including those set forth in our safe harbor provision for forward-looking statements that can be found at the end of our earnings press release and also in our Form 10-Q that was filed today, and our Form 10-K that is on file with the SEC and provide further detail about the risks related to our business.

在此次電話會議中，我們所做的某些聲明將具有前瞻性。這些聲明受風險和不確定因素的影響，包括我們在收益新聞稿末尾以及我們今天提交的 10-Q 表格中找到的前瞻性聲明安全港條款中規定的風險和不確定性，以及我們的提交給 SEC 的 10-K 表格提供了與我們業務相關的風險的更多詳細信息。

Additionally, except as required by law, we undertake no obligation to update any forward-looking statements. We also provide non-GAAP information regarding certain of our historical and targeted results to supplement the results provided in accordance with GAAP. This information should not be considered superior to or as a substitute for the comparable GAAP measures. A reconciliation of historical non-GAAP measures can be found in our first quarter earnings release published this morning and in our company overview presentation that was filed on Form 8-K this morning and posted on the investor relations section of our website at babcock.com.

此外，除法律要求外，我們不承擔更新任何前瞻性陳述的義務。我們還提供有關我們某些歷史和目標結果的非 GAAP 信息，以補充根據 GAAP 提供的結果。此信息不應被視為優於或替代可比的 GAAP 措施。在我們今天上午發布的第一季度收益報告和我們今天上午以 8-K 表格提交並發佈在我們網站 babcock.com 的投資者關係部分的公司概況介紹中，可以找到歷史非 GAAP 措施的對賬.

I will now turn the call over to Kenny.

我現在將電話轉給肯尼。

Thanks, Sharyn. Well, good morning, everyone, and thanks for joining us today on our first quarter 2023 earnings call.

謝謝，莎琳。好吧，大家早上好，感謝您今天加入我們的 2023 年第一季度財報電話會議。

We are pleased to report strong results for the first quarter of 2023, which exceeded our expectations and were highlighted by increases in revenues, bookings, and backlog on a year-over-year basis. Our parts and service bookings across all of our segments were the highest in the past seven years despite continued supply chain challenges. Given our positive start to the year, growing customer demand across all of our segments and visibility for new booking opportunities, we believe we are well-positioned for significantly improved full-year performance in 2023.

我們很高興地報告 2023 年第一季度的強勁業績，這超出了我們的預期，突出體現在收入、預訂和積壓訂單同比增長上。儘管供應鏈面臨持續挑戰，但我們所有部門的零件和服務預訂都是過去七年來最高的。鑑於我們今年的良好開局、我們所有細分市場的客戶需求不斷增長以及對新預訂機會的可見性，我們相信我們已做好充分準備，在 2023 年顯著改善全年業績。

The revenues generated within our renewables and environmental business segments showed significant increases of 47% and 13%, respectively, as compared to the first quarter of 2022. This growth was driven by higher volumes across both segments, which helped drive our consolidated revenues and adjusted EBITDA above expectations. More specifically, revenues in the first quarter increased 26% compared to 2022, while our bookings and backlog increased 11% and 15% on a year-over-year basis, respectively.

與 2022 年第一季度相比，我們的可再生能源和環境業務部門產生的收入分別顯著增長 47% 和 13%。這一增長是由兩個部門的銷量增加推動的，這有助於推動我們的綜合收入和調整後的收入EBITDA 超出預期。更具體地說，與 2022 年相比，第一季度的收入增長了 26%，而我們的預訂量和積壓訂單量分別同比增長了 11% 和 15%。

Our strong start to the year also adds to our confidence in achieving our full-year 2023 adjusted EBITDA target. And during the first quarter, we generated adjusted EBITDA of $14.2 million, which was above our internal projections and compares to $12.5 million in the first quarter of 2022.

我們今年的強勁開局也增強了我們實現 2023 年全年調整後 EBITDA 目標的信心。在第一季度，我們產生了 1420 萬美元的調整後 EBITDA，高於我們的內部預測，而 2022 年第一季度為 1250 萬美元。

As always, I want to express my thanks and gratitude to our employees for their continued dedication to achieving the highest operational performance for their high focus on safety across our project and manufacturing sites; and to thank them for driving innovation and advancing the world's transition towards sustainable and secure energy, which is central to B&W's mission.

一如既往，我要對我們的員工表示感謝，感謝他們一直致力於實現最高的運營績效，因為他們高度關注我們項目和製造現場的安全；並感謝他們推動創新並推動世界向可持續和安全能源過渡，這是 B&W 使命的核心。

Notably, the performance of our parts and services business across all of our segments was particularly strong in the quarter. Combined parts and service bookings for our thermal, renewable, and environmental segments were $114 million, which is the strongest quarter for parts and services we've had since 2016. This was led by $67 million in bookings by our thermal segment, which had seen increased demand as customers around the world look to improve performance and extend the useful life of their facilities. B&W's renewable and environmental segments also booked $40 million and $7 million in parts and services orders, respectively, as well.

值得注意的是，我們所有部門的零部件和服務業務在本季度的表現尤其強勁。我們的熱力、可再生能源和環境部門的零件和服務預訂總額為 1.14 億美元，這是我們自 2016 年以來零件和服務最強勁的一個季度。這是由我們的熱力部門的 6700 萬美元預訂量引領的，該部門已經看到隨著世界各地的客戶希望提高性能並延長其設施的使用壽命，需求不斷增加。 B&W 的可再生能源和環境部門也分別獲得了 4000 萬美元和 700 萬美元的零件和服務訂單。

In total, we are recognizing a significant increase in customer demand stemming from the need for long-term energy security and clean technology solutions.

總的來說，我們認識到客戶需求的顯著增長源於對長期能源安全和清潔技術解決方案的需求。

Looking back at the quarter, we were ecstatic with the progress our clean energy solutions have made, which have been bolstered by new environmental and renewable contracts in the first quarter of 2023 totaling $103 million. These projects not only demonstrate the increasing momentum in our customer adoption of our innovative technologies, but also the expanding interest in our expertise in solar projects.

回顧本季度，我們對清潔能源解決方案取得的進展感到欣喜若狂，這些進展得到了 2023 年第一季度總計 1.03 億美元的新環境和可再生能源合同的支持。這些項目不僅表明我們的客戶採用我們的創新技術的勢頭越來越大，而且也表明人們對我們在太陽能項目方面的專業知識越來越感興趣。

Throughout the first quarter, we announced four environmental and two renewable contracts to supply various technologies and services for carbon capture waste energy and solar installation projects. This includes our collaboration with Phillips 66 and which we will provide engineering and design services, equipment, and construction support for carbon capture projects in the UK. This project aims to reduce carbon emissions by capturing and storing carbon dioxide emissions from a refinery.

在整個第一季度，我們宣布了四份環境合同和兩份可再生能源合同，為碳捕獲廢能源和太陽能安裝項目提供各種技術和服務。這包括我們與 Phillips 66 的合作，我們將為英國的碳捕集項目提供工程和設計服務、設備和施工支持。該項目旨在通過捕獲和儲存煉油廠排放的二氧化碳來減少碳排放。

As a company committed to promoting sustainability, we are proud to be part of this critical effort to reduce carbon emissions and support the energy transition to a low-carbon future. Our progress in the UK also includes a contract to provide engineering and advanced technology for a waste energy plant. Our innovative combustion system will help convert waste into clean energy, further promoting sustainable practices.

作為一家致力於促進可持續發展的公司，我們很自豪能夠參與這項減少碳排放和支持能源向低碳未來轉型的關鍵努力。我們在英國取得的進展還包括一份為垃圾發電廠提供工程和先進技術的合同。我們創新的燃燒系統將有助於將廢物轉化為清潔能源，進一步促進可持續發展。

Additionally, B&W has also secured contracts to provide highly efficient cooling systems for UK waste energy plants as well. These cooling systems will help optimize the performance of the plants, ensuring they're able to operate efficiently and sustainably.

此外，B&W 還獲得了為英國垃圾能源廠提供高效冷卻系統的合同。這些冷卻系統將有助於優化電廠的性能，確保它們能夠高效、可持續地運行。

Transitioning to our solar business, we were awarded contracts worth over $15 million by Summit Ridge Energy or SRE, to construct five community solar power installation projects in Illinois. The projects scheduled to be completed in 2023 will total approximately 15 megawatts. B&W will manage subcontractors, site coordination and supervision, and electrical tie-ins to the grid. This is the second set of contracts awarded to B&W by SRE, which is one of the leading community solar companies in the United States.

過渡到我們的太陽能業務，我們獲得了 Summit Ridge Energy 或 SRE 價值超過 1500 萬美元的合同，在伊利諾伊州建設五個社區太陽能安裝項目。計劃於2023年完成的項目總計約15兆瓦。 B&W 將管理分包商、現場協調和監督以及與電網的電力連接。這是美國領先的社區太陽能公司之一 SRE 授予 B&W 的第二套合同。

The growing market for community solar projects in the US has been attributed to the high demand for affordable clean energy and state and federal incentives for renewable energy, including for solar power. We are excited about the solar opportunities and continue to see -- that we continue to see emerge over the coming quarters, especially with regards to community solar and small utility projects.

美國社區太陽能項目不斷增長的市場歸因於對負擔得起的清潔能源的高需求以及州和聯邦對可再生能源（包括太陽能）的激勵措施。我們對太陽能機會感到興奮，並繼續看到 - 我們將繼續看到未來幾個季度出現，特別是在社區太陽能和小型公用事業項目方面。

Looking forward, we remain committed to further supporting sustainable energy projects that make a positive impact on the world. These recent award wins further strengthen our position as a leading provider of energy solutions, and we look ahead to exploring new opportunities to promote a cleaner, more sustainable future.

展望未來，我們將繼續致力於進一步支持對世界產生積極影響的可持續能源項目。這些最近的獎項進一步鞏固了我們作為能源解決方案領先供應商的地位，我們期待探索新的機會來促進更清潔、更可持續的未來。

We also are pleased with the significant traction our BrightLoop technology has received to date. Most notably, we recently announced a commercial project with Black Hills Energy in which B&W's BrightLoop hydrogen generation technology was selected to produce hydrogen gas from coal and captured carbon dioxide emissions. Utilizing our technology, clean energy can be produced using a variety of fuels with complete CO2 retention, enhancing energy security and creating local clean energy jobs in the region.

我們也很高興我們的 BrightLoop 技術迄今為止獲得了巨大的吸引力。最值得注意的是，我們最近宣布了與 Black Hills Energy 的一個商業項目，其中選擇了 B&W 的 BrightLoop 制氫技術從煤中生產氫氣並捕獲二氧化碳排放。利用我們的技術，可以使用多種燃料生產清潔能源，並完全保留二氧化碳，從而增強能源安全並在該地區創造當地的清潔能源就業機會。

This project not only highlights B&W's transformational technology, but also demonstrates utility market interest in our clean power production and carbon capture capabilities. We look forward to scaling this product offering and working in tandem with our customers to provide the solutions they need to enhance energy independence and deliver efficient energy to their customers while also combating climate change.

該項目不僅突出了 B&W 的轉型技術，還展示了公用事業市場對我們的清潔能源生產和碳捕獲能力的興趣。我們期待擴展該產品系列，並與我們的客戶攜手合作，提供他們所需的解決方案，以增強能源獨立性並為客戶提供高效能源，同時應對氣候變化。

I'll now turn the call over to Lou to discuss the financial details for first quarter of 2023. Lou?

我現在將電話轉給 Lou，討論 2023 年第一季度的財務細節。Lou？

Thanks, Kenny. I'm really pleased to review our first-quarter results and further details of which can be found in our 10-Q, which has been filed with the SEC.

謝謝，肯尼。我真的很高興回顧我們的第一季度業績，更多細節可以在我們已提交給美國證券交易委員會的 10-Q 中找到。

Our first-quarter consolidated revenues were $257.2 million, which is a 26% improvement compared to the first quarter of 2022. This is primarily attributable to higher volumes in our renewable segment due to B&W renewable parts and services and our project-based business, as well as higher overall volume in our environmental segment, and increased thermal segment volume, and a higher level of construction activity.

我們第一季度的綜合收入為 2.572 億美元，與 2022 年第一季度相比增長了 26%。這主要是由於 B&W 可再生零部件和服務以及我們基於項目的業務導致可再生能源部門的銷量增加，因為以及我們環境部門的整體銷量增加，熱力部門銷量增加，以及更高水平的建築活動。

Net operating income in the first quarter of 2023 was $1.4 million compared to an operating loss of $6.8 million in the first quarter of 2022. Our adjusted EBITDA was $14.2 million as compared to $12.5 million in the first quarter of 2022. While bookings in the first quarter of 2023 were $206 million, an 11% increase compared to the first-quarter bookings in 2022.

2023 年第一季度的淨營業收入為 140 萬美元，而 2022 年第一季度的營業虧損為 680 萬美元。我們調整後的 EBITDA 為 1420 萬美元，而 2022 年第一季度為 1250 萬美元。而第一季度的預訂量2023 年第一季度的預訂量為 2.06 億美元，與 2022 年第一季度相比增長 11%。

Our ending backlog was $663 million, which was over 15% increase compared to our backlog at the end of the first quarter of 2022. Our loss per share in the first quarter was $0.18 as compared to a loss per share of $0.14 in the first quarter of 2022.

我們的期末積壓訂單為 6.63 億美元，與 2022 年第一季度末的積壓訂單相比增長了 15% 以上。我們第一季度的每股虧損為 0.18 美元，而第一季度的每股虧損為 0.14 美元2022 年。

I'll now turn over to the first-quarter segment results. Within our Babcock & Wilcox renewable segment, revenues were $100.1 million for the first quarter of 2023, which is a 47% increase compared to the $68 million in the first quarter of 2022. This increase in revenues primarily due to the higher volume of new build projects and the increase in revenues associated with our renewable parts and services business.

我現在將轉向第一季度的部分結果。在我們的 Babcock & Wilcox 可再生能源部門，2023 年第一季度的收入為 1.001 億美元，與 2022 年第一季度的 6800 萬美元相比增長了 47%。收入的增長主要是由於新建築數量增加項目以及與我們的可再生零件和服務業務相關的收入增加。

The adjusted EBITDA in the quarter for this segment was $4.9 million compared to $2 million in the first quarter of 2022 and this was primarily due to the higher volume as described above, offset somewhat by increases in expenses to support the growth of this business. The higher revenue levels also increased share overhead and SG&A allocations to the segment, which are based on revenue.

該部門本季度調整後的 EBITDA 為 490 萬美元，而 2022 年第一季度為 200 萬美元，這主要是由於上述銷量增加，部分被支持該業務增長的費用增加所抵消。更高的收入水平還增加了基於收入的分部的股份管理費用和 SG&A 分配。

Within the Babcock & Wilcox environmental segment, revenues were $39.4 million in the first quarter of 2023, which is a 13% increase compared to the $34.9 million in the first quarter of 2022. This increase is primarily driven again by higher overall volume of dry cooling technology projects across the environmental segment.

在 Babcock & Wilcox 環境部門，2023 年第一季度的收入為 3940 萬美元，與 2022 年第一季度的 3490 萬美元相比增長了 13%。這一增長主要再次受到干式冷卻總量增加的推動整個環境部門的技術項目。

Our adjusted EBITDA for the segment was $1.9 million in the quarter as compared to $1.4 million in the same quarter last year. Again, primarily driven by the higher revenue volume described above and offset by higher levels of shared overhead and SG&A that's allocated to this segment.

本季度我們對該部門調整後的 EBITDA 為 190 萬美元，而去年同期為 140 萬美元。同樣，這主要是由上述較高的收入量推動的，並被分配給該部門的較高水平的共享間接費用和 SG&A 所抵消。

Turning to our Babcock & Wilcox thermal segment, revenues were $119.2 million in the first quarter of 2023, and this is a 17% increase compared to the $102 million in the first quarter of 2022. Again, this is primarily attributable to higher levels of volume on our construction projects business and the inclusion of Optimus Industries.

談到我們的 Babcock & Wilcox 熱能部門，2023 年第一季度的收入為 1.192 億美元，與 2022 年第一季度的 1.02 億美元相比增長了 17%。同樣，這主要歸因於銷量水平的提高關於我們的建築項目業務和 Optimus Industries 的加入。

Adjusted EBITDA in the first quarter of 2023 was $13.7 million, which is a decrease of 3% compared to the $14.2 million in the first quarter, primarily attributable to higher expenses that we incurred, which are related to the growth of this business.

2023 年第一季度調整後的 EBITDA 為 1370 萬美元，與第一季度的 1420 萬美元相比下降了 3%，這主要是由於我們產生的與該業務增長相關的費用增加。

I'll now turn to our balance sheet, cash flow, and liquidity. Our total debt at March 31, 2023, was $351.7 million, and the company had a cash, cash equivalents, and restricted cash balance of $91.1 million.

我現在將轉向我們的資產負債表、現金流和流動性。截至 2023 年 3 月 31 日，我們的總債務為 3.517 億美元，公司的現金、現金等價物和受限制的現金餘額為 9110 萬美元。

Finally, based on our strong bookings and backlog in the first quarter of 2023, we are reiterating our full-year 2023 target of between $100 million, $120 million in adjusted EBITDA.

最後，基於我們在 2023 年第一季度的強勁預訂和積壓訂單，我們重申我們的 2023 年全年目標是調整後的 EBITDA 在 1 億美元至 1.2 億美元之間。

I'll now turn the call back over to Kenny.

我現在將電話轉回給肯尼。

Thanks. Well, in closing, I would like to emphasize the continued progress in growth that Babcock & Wilcox has achieved over the past several years. We have taken proactive steps to improve our operations and qualify additional suppliers, which has reinforced our own supply chain and positions us well to navigate challenging market conditions compared to our competitors.

謝謝。嗯，最後，我想強調 Babcock & Wilcox 在過去幾年中取得的持續增長。我們已採取積極措施來改善我們的運營並使更多供應商獲得資格，這加強了我們自己的供應鏈，並使我們能夠很好地應對與競爭對手相比充滿挑戰的市場條件。

Despite the ongoing market challenges we face, we have strong and growing customer demand across all of our segments, expanding our bookings and backlog while maintaining the highest operational and project performance across our global operations. Leveraging a strong balance sheet and our expanded pipeline of more than $8 billion in identified global opportunities, we are excited about our growth prospects and diversification initiatives within our renewable and environmental and thermal business segments.

儘管我們面臨持續的市場挑戰，但我們所有部門都有強勁且不斷增長的客戶需求，擴大了我們的預訂和積壓，同時在我們的全球運營中保持最高的運營和項目績效。憑藉強大的資產負債表和我們在已確定的全球機會中超過 80 億美元的擴展管道，我們對我們在可再生能源、環境和熱力業務領域的增長前景和多元化計劃感到興奮。

Looking ahead to the rest of 2023, we are excited to continue enhancing our ClimateBright decarbonization platform and executing our BrightLoop commercialization strategy with the aim of deploying our transformative technology at scale. We are at the forefront of a global effort to reach to combat climate change and are excited about the growing industry tailwinds that support our clean energy initiatives.

展望 2023 年剩餘時間，我們很高興能繼續加強我們的 ClimateBright 脫碳平台並執行我們的 BrightLoop 商業化戰略，以大規模部署我們的變革性技術。我們處於應對氣候變化的全球努力的最前沿，並且對支持我們的清潔能源計劃的不斷增長的行業順風感到興奮。

As the year unfolds, we anticipate announcing meaningful projects that align with the seasonality of the business and revenue ramp that is back-half weighted for the full year.

隨著這一年的展開，我們預計會宣布有意義的項目，這些項目與業務的季節性和全年加權後的收入增長相一致。

Finally, we would like to thank our employees again and our customers for their continued efforts and dedication to the company, which ultimately has driven our success as an organization. Together, we're focused on driving innovation, supporting the global transition to sustainable energy solutions and delivering strong profitable growth for our shareholders.

最後，我們要再次感謝我們的員工和我們的客戶，感謝他們對公司的持續努力和奉獻，最終推動了我們作為一個組織的成功。我們共同致力於推動創新，支持全球向可持續能源解決方案的過渡，並為我們的股東實現強勁的盈利增長。

I will now turn the call back over to Nadia, who will assist in taking your questions. Nadia?

我現在將把電話轉回給 Nadia，她將協助回答您的問題。納迪亞？

(Operator Instructions) Aaron Spychalla, Craig-Hallum.

（操作員說明）Aaron Spychalla，Craig-Hallum。

First, maybe on Black Hills. Can you just kind of talk a little bit more about kind of that project, what it looks like, some of the next steps and timeline, anything on contribution? And then just you talked about scaling up, can you just talk about confidence in the supply chain and kind of manufacturing as that progresses?

首先，也許在布萊克山。你能多談談那個項目的類型嗎，它是什麼樣子的，一些後續步驟和時間表，有什麼貢獻嗎？然後你剛剛談到了擴大規模，你能談談對供應鏈的信心和隨著進展的製造方式嗎？

Yeah. So the Black Hills project, the initial phase will be, I guess, as we discovered BLH 15 on that project, the first phase of that, our approach there will be to fire the project up on natural gas to creating hydrogen from natural gas on the initial aspect, and then we'll introduce the coal. So the plan in that project specifically is the state of Wyoming wants to utilize PBR or coal that in the -- the coal is available actually very near the plant.

是的。因此，Black Hills 項目的初始階段將是，我猜，正如我們在該項目中發現 BLH 15 那樣，我們的方法是在該項目的第一階段啟動天然氣項目，從天然氣中製造氫氣最初的方面，然後我們將介紹煤炭。因此，該項目的具體計劃是懷俄明州希望利用 PBR 或煤炭——實際上離工廠很近的煤炭可用。

Coal will be used in the BrightLoop system to produce hydrogen in this particular case. The hydrogen will then be entered into the combined cycle plant . The turbine that Black Hills will be putting in will support up to 30% hydrogen and 70% natural gas involved in that. But the intent is obviously using the coal to create the hydrogen and then in that particular case, we'll either sequester the CO2, although we're having some conversations about potentially some other beneficial use of the CO2. But either way, it will be retained captured in, not admitted into the atmosphere in the long run.

在這種特殊情況下，BrightLoop 系統將使用煤來生產氫氣。然後氫氣將進入聯合循環裝置。 Black Hills 將安裝的渦輪機將支持高達 30% 的氫氣和 70% 的天然氣。但我們的意圖顯然是使用煤來製造氫氣，然後在這種特殊情況下，我們要么封存 CO2，儘管我們正在就 CO2 的其他潛在有益用途進行一些討論。但無論哪種方式，從長遠來看，它都會被捕獲，而不是進入大氣層。

So we're excited about that, all of those elements in that, moving it into an early adopter in the utility sector, which we think is very exciting for us as well on that.

因此，我們對此感到興奮，其中的所有這些元素，將其轉變為公用事業領域的早期採用者，我們認為這對我們來說也非常令人興奮。

In the long run, Black Hills will need several hundred tons of hydrogen per day to feed the turbine to drive baseload generation and they do have the capacity there from a feedstock standpoint to support that. So that project would move into the next phase of it, which is a natural progression at that point in time.

從長遠來看，Black Hills 每天將需要數百噸氫氣來為渦輪機提供動力，以驅動基本負荷發電，而且從原料的角度來看，他們確實有能力支持這一點。因此，該項目將進入下一階段，這是在那個時間點的自然進展。

That's on one. On the supply chain sustainability aspect, if you're specifically talking about (technical difficulty) or just in general, sorry.

這是一個。在供應鏈可持續性方面，如果您是專門談論（技術難度）或只是籠統地談論，抱歉。

Just really on the BrightLoop as we think about how that ramps over the next couple of years?

當我們考慮在未來幾年內如何發展時，真的在 BrightLoop 上嗎？

Yeah. We'll began ramping up the abilities to develop the particle. We have limited aspects of capacity right now, but that will be developed out to build up the particle aspect. The fabrication side of the modules, the reactors is one long pole in the tent, so to speak. I would say some of the others are in around some of the air compression and other components and pieces that we need in that technology that's out there. So those are running nine to 12 months typically in lead times.

是的。我們將開始提高開發粒子的能力。我們現在的能力方面有限，但將被開發出來以建立粒子方面。在模塊的製造方面，反應堆可以說是帳篷裡的一根長桿。我會說其他一些圍繞著一些空氣壓縮和我們在現有技術中需要的其他組件和部件。因此，這些通常在交付週期內運行 9 到 12 個月。

So those are the areas that when we look at supply chain in BrightLoop in that regard when we plan out the timing of the projects, we take all of that into consideration overall, so that we're not too far overseas as it relates to the abilities to get the fabrication and steel and the other components into the plant and the site. So that we know that we anticipate that and that's just normal course.

因此，當我們在計劃項目時間安排時從這方面考慮 BrightLoop 中的供應鏈時，我們會從整體上考慮所有這些方面，這樣我們就不會離海外太遠，因為它與將製造和鋼材以及其他組件運到工廠和現場的能力。這樣我們就知道我們預料到了這一點，這只是正常過程。

The good news is, I think those sort of the particle here, there's not a lot of new tech that we talked about before that's going into this. So when you think about the reactor, B&W have been involved in reactors for many years. The pressurization, the heating aspect of that inside the reactors, B&W has been involved in that for many years. The other construct on all of the other feeding (technical difficulties) fuel handling systems, obviously, coal, in this case. The goal is to provide the coal in everything they have done. All of that is very common accord at B&W, so the newer feature is really around the particle aspect on it, and we're excited to get that going as well too.

好消息是，我認為這裡有一些粒子，在這之前我們討論的新技術並不多。因此，當您想到反應堆時，B&W 已經涉足反應堆多年。加壓，反應堆內部的加熱方面，B&W 多年來一直參與其中。另一個構建在所有其他進料（技術困難）燃料處理系統上，在這種情況下顯然是煤炭。目標是為他們所做的一切提供煤炭。所有這些在 B&W 中都很常見，所以新功能實際上是圍繞粒子方面的，我們也很高興能實現這一點。

Great. Good to hear. And then maybe as a follow-up, you had touched on it a little bit, but just can you give a little more color on the solar business and what that business looks like this year versus maybe 2022, some of the initiatives in the pipeline. Are you starting to see the impact from the IRA just anything on module availability?

偉大的。很高興聽到。然後也許作為後續行動，您稍微談到了它，但是您能否對太陽能業務以及今年與 2022 年的業務情況以及一些正在籌備中的舉措進行更多介紹.您是否開始看到 IRA 對模塊可用性的影響？

Yes. So far, module availability is fairly good actually. So we typically wouldn't get involved in a project if the owner operators didn't have access to the modules. That's kind of a red flag, if you will. But much availability seems to be very strong right now in the marketplace with all of the work and effort. The number of projects, both in utility -- both the community solar and small-scale utility are very significant in the marketplace in the US. And a lot of that is being driven by the IR credits. There's with Illinois. There are some state incentives that exist as well to support these community solar projects.

是的。到目前為止，模塊可用性實際上相當不錯。因此，如果業主運營商無權訪問模塊，我們通常不會參與項目。如果你願意的話，那是一個危險信號。但是，隨著所有的工作和努力，現在市場上的可用性似乎非常強。公用事業項目的數量——社區太陽能和小型公用事業項目在美國市場上都非常重要。其中很多是由 IR 學分驅動的。有伊利諾伊州。也存在一些國家激勵措施來支持這些社區太陽能項目。

So you see a number more and more and more of these. And a lot of developers are out raising a tremendous amount of capital too as well -- some of the companies we talk to, to position themselves in building out these solar projects that take place. So the demand is clearly there. For us, obviously, we're not entering kind of a growth phase of that from a B&W perspective. And we continue to grow that particular business. The advent of us -- they self-performing more and more of that work, will help improve the margins in the long run.

所以你會看到越來越多的這樣的人。許多開發商也正在籌集大量資金——我們與之交談的一些公司，將自己定位於建設這些正在進行的太陽能項目。所以需求顯然是存在的。對於我們來說，顯然，從 B&W 的角度來看，我們並沒有進入那種增長階段。我們將繼續發展該特定業務。我們的出現——他們自己完成越來越多的工作，從長遠來看將有助於提高利潤率。

The other aspect is we're hiring a number of different resources to come in from a materials, estimation, project management capabilities, to work not only solar, but in our renewable energy sector. So we're in a very much in a hiring mode at this point in time in that marketplace. But as we bring on new resources and individuals, we see nothing but more opportunity start to grow on the solar side. So in the US alone, I don't know, the [feed-up solar] status have gone up somewhere in the marketplace, but there are billions of dollars of opportunities of solar being built in the US and that module are all available to support that kind of sides of a marketplace. So it's very significant right now.

另一方面，我們正在從材料、估算、項目管理能力等方面聘用許多不同的資源，不僅在太陽能領域工作，而且在我們的可再生能源領域工作。所以我們在這個時間點在那個市場上處於非常多的招聘模式。但是隨著我們引入新的資源和人員，我們只看到更多的機會開始在太陽能方面增長。所以僅在美國，我不知道，[饋電太陽能] 的地位在市場上的某個地方有所上升，但在美國建造太陽能的機會有數十億美元，而且該模塊都可以用於支持市場的那種方面。所以現在非常重要。

Rob Brown, Lake Street Capital Markets.

湖街資本市場的 Rob Brown。

Good morning. Just wanted to follow up on the Black Hills project. What's sort of the revenue opportunity in Phase 1 and, I guess, Phase 2 for that project, and when sort of the timeline for that to be awarded?

早上好。只是想跟進 Black Hills 項目。第一階段的收入機會是什麼，我猜，該項目的第二階段是什麼，以及何時授予該項目的時間表？

Yes. So Phase 1 will be small on that project. We haven't put out exact numbers yet, but it will be small under Phase 1. The important piece is just getting a commercial aspect of getting the -- obviously, using the local feedstock and moving that forward. In terms of moving it into the larger units out there, which would be [$100 million, $200 million] kind of approach in the marketplace. But just a rough range, broad range on that would be anywhere from $250 million, $300 million, to $400 million or $500 million on a unit, depending on a number of different variables that will exist on that. Obviously, it's still TBD on that size of a unit on those locations.

是的。因此，該項目的第 1 階段規模很小。我們還沒有給出確切的數字，但在第一階段它會很小。重要的是獲得商業方面的 - 顯然，使用當地原料並向前推進。就將其轉移到更大的單位而言，這將是 [1 億美元，2 億美元] 市場上的一種方法。但只是一個粗略的範圍，一個單位的廣泛範圍從 2.5 億美元、3 億美元到 4 億美元或 5 億美元不等，具體取決於將存在的許多不同變量。顯然，在這些位置上的單位大小仍然是待定的。

But if you thought about them in terms of building new technology to support a power plant that's producing few hundred million of watts of power, it's roughly in that kind of a similar category as far as size and revenues. And that's just a broad scale thought process on it.

但是，如果你從構建新技術來支持發電量為幾億瓦的發電廠的角度考慮它們，那麼就規模和收入而言，它們大致屬於類似的類別。這只是一個廣泛的思考過程。

Okay. Great. Thank you. That's very helpful. And then on the kind of parts and services improvement in the business, I know there was some pent-up demand, but could you just sort of give us some color on what's driving that improvement and how much -- how should that continue, I guess.

好的。偉大的。謝謝。這很有幫助。然後關於業務中零件和服務的改進，我知道有一些被壓抑的需求，但你能不能給我們一些顏色來說明是什麼推動了這種改進，以及這種改進的程度——這種情況應該如何繼續，我猜測。

And so there's an improvement, increased demand. I guess, it's really unique on the -- if we divide it into three conversations here.

因此，需求有所改善，需求增加。我想，如果我們在這裡將它分成三個對話，它真的很獨特。

On the thermal side, we saw a little bit of a catch-up where people were catching up on parts and services from the past couple of years because we've always talked about the plants running that was delayed. So we're seeing a little of that. We're also seeing the fact that a lot of these fossil fuel plants are now gearing up to run a little bit longer than maybe the public announcements were or are as it relates to when those might be shutting down or we have a number of customers that are in Europe, for example, trying to recommission some of those facilities and plants and hope that will add a little bit to the volume in that particular area.

在熱力方面，我們看到了過去幾年人們在追趕零件和服務方面的一點點追趕，因為我們一直在談論延遲運行的工廠。所以我們看到了一些。我們還看到這樣一個事實，即許多這些化石燃料工廠現在準備運行的時間可能比公開公告過去或現在的運行時間更長，因為它與關閉這些工廠或我們有許多客戶的時間有關例如，在歐洲，他們試圖重新啟用其中一些設施和工廠，並希望這會增加該特定地區的產量。

So you kind of have a two for one. A little bit of catch up. You have a little bit of where these plants have to run longer than they normally have planned for them to do, which is a good thing from us from a parts and services standpoint. And you're seeing a few of these plants reemerge in Europe. And as we talked about in the past, we keep expanding our international presence in Asia Pac in other markets. So you see a little bit of a gravitation of more adoption of parts and services coming from Middle East and the Asia Pac region as well, too.

所以你有點二合一。有點趕上了。這些工廠的運行時間比他們通常計劃的要長一些，從零件和服務的角度來看，這對我們來說是一件好事。你會看到其中一些植物在歐洲重新出現。正如我們過去所說，我們不斷擴大我們在亞太地區其他市場的國際影響力。因此，您也看到了更多采用來自中東和亞太地區的零件和服務的吸引力。

So in overall, we think the levels of activity are back to rough order of magnitude, back to where they were before COVID. At this point in time, we still have those supply chain challenges where things take longer to get in than before. But it's now part of the new norm, and we've kind of caught up with that cycle within the thermal segment.

因此，總的來說，我們認為活動水平回到了粗略的數量級，回到了 COVID 之前的水平。目前，我們仍然面臨供應鏈挑戰，需要比以前更長的時間才能進入。但它現在是新常態的一部分，我們已經在熱能領域趕上了這個週期。

The other part of the growth on the parts and services within the company, we've seen an increase because we've actually been putting in cooling towers over the past couple of years. And so a lot of the [intended] customers out there now are getting past the warranty period, so we're starting to see parts and services come from our environmental business in that regard.

公司內部零件和服務增長的另一部分，我們看到了增長，因為我們在過去幾年實際上一直在安裝冷卻塔。因此，現在那裡的許多[預期]客戶都已經過了保修期，因此我們開始看到零件和服務來自我們在這方面的環境業務。

The other piece is we -- obviously we're content, but invested in a small company in Europe, that was a strong parts and services company in waste to energy. And we've seen that expand and grow in that base. So all of those are combinations and elements on the parts and services aspect and we're excited about where it is. But overall, we see -- we don't see [anything after this]. This is a one-time clip, and we go back down. We have to deal with quarter by quarter, obviously, on all these things, but the outlook's pretty strong.

另一部分是我們 - 顯然我們很滿意，但投資了歐洲的一家小公司，這是一家強大的零部件和服務公司，將廢物轉化為能源。我們已經看到它在那個基礎上擴展和成長。所以所有這些都是零件和服務方面的組合和元素，我們對它的位置感到興奮。但總的來說，我們看到了——我們看不到[此後的任何事情]。這是一次性剪輯，我們回去。顯然，我們必須一個季度一個季度地處理所有這些事情，但前景相當強勁。

Alex Rygiel, B. Riley.

Alex Rygiel，B. 萊利。

Good morning, Kenny and Lou. Thank you for taking my questions. A couple of quick ones here. First, can you comment on your confidence in guidance and maybe talk about the variables that would lead to either the low end or the high end of that EBITDA guidance for 2023?

早上好，肯尼和婁。謝謝你回答我的問題。這裡有幾個快速的。首先，您能否評論一下您對指導的信心，並談談可能導致 2023 年 EBITDA 指導的低端或高端的變量？

Sure. Well, the low end is always typically around two things. One is if there are customer delays or delays on project or other things that were unanticipated or beyond our control. So on the lower -- and/or, I would say the other aspect that is the start date of a project. So if the customer was supposed to start a project, let's say, in July, but it slips start date now, let's say, September or October, then we missed the quarter on that revenue. Even going from the last month or to the next -- first month of the new quarter, we missed quarter revenue on that.

當然。好吧，低端通常總是圍繞著兩件事。一種是如果客戶延遲或項目延遲或其他意外或超出我們控制的事情。所以在較低的方面——和/或，我會說另一個方面，即項目的開始日期。因此，如果客戶本應在 7 月開始一個項目，但現在推遲了開始日期，比如說 9 月或 10 月，那麼我們就錯過了該季度的收入。即使從上個月或下個月開始——新季度的第一個月，我們也錯過了季度收入。

So that's always the challenging piece for us. And so the lower end aspect is typically comes from those kinds of pieces, components. The upside is also kind of the opposite of that. If the project started a little earlier than we anticipate in our planning cycle, then there's upside opportunities there. If the energy security thing keeps going on the clip, it's growing, and we're actually driving more parts and services from the thermal aspects, that could give upside too because that's obviously high-margin revenues for us as well in the long run.

所以這對我們來說總是具有挑戰性的。因此，低端方面通常來自這些零件、組件。好處也與此相反。如果項目開始的時間比我們計劃週期中的預期早一點，那麼那裡就有上行機會。如果能源安全問題繼續發展，它正在增長，而且我們實際上正在從熱方面推動更多的零件和服務，這也可能帶來好處，因為從長遠來看，這對我們來說顯然也是高利潤收入。

And then it's just new bookings and getting those in and executing on those across the board. Most of the new booking upside will be in renewables. So either coming from solar or biomass or waste energy technologies, that would be the bigger driver of the upside aspects. And they're clearly out there, but we have to get them booked and obviously executing or start doing the work this year in order to gain that particular piece. But those -- there are all out there that regard. It's just we wouldn't at this point, write off Q1, change anything as it relates to our targeted guidance we put out, but those upsides that exist.

然後就是新的預訂，並全面執行這些預訂。大部分新的預訂優勢將來自可再生能源。因此，無論是來自太陽能、生物質能還是廢能技術，這將是上行方面的更大驅動力。他們顯然在那裡，但我們必須讓他們預訂並顯然在今年執行或開始做這項工作，以獲得那個特定的作品。但是那些 - 那裡都有這方面的東西。只是我們現在不會，註銷第一季度，改變任何與我們推出的目標指導相關的東西，但那些存在的好處。

And then any update on the Fidelis project?

然後是關於 Fidelis 項目的任何更新？

Yeah, Fidelis, they're working through their final funding on the power plant for the fuel aspect. Hopefully that gets announced relatively soon and we'll begin working towards the other pieces of that, both the biomass plant that we talked about and also for the BrightLoop facility at that location. So a lot of discussions on that. We're back and forth and looking at their -- as they evolve their power, it needs a little bit some -- we look at adjusting certain things here and there as it relates to two projects.

是的，Fidelis，他們正在為燃料方面的發電廠籌集最後一筆資金。希望能盡快宣布這一點，我們將開始致力於其他方面的工作，包括我們談到的生物質發電廠以及該地點的 BrightLoop 設施。因此，對此進行了很多討論。我們來回看著他們——隨著他們發展自己的力量，它需要一點點——我們著眼於調整某些與兩個項目相關的事情。

But overall work, the change of events is wait for them to get their final funding completed and then things will then start to move forward from there. So I hate to put a timeline out publicly on that. But do anticipate that they are able to get stuff done here in the next one to two months, but we'll see how that shakes up.

但總的來說，事情的變化是等待他們完成最後的資金，然後事情就會從那裡開始向前發展。所以我不想公開發佈時間表。但確實預計他們能夠在接下來的一到兩個月內完成這裡的工作，但我們會看到它會如何改變。

Brent Thielman, D.A. Davidson.

布倫特蒂爾曼，D.A.戴維森。

I guess, Kenny or Lou, you all made several references to the parts and services' backlog and bookings strength. I guess just wanted to take a step back, maybe you could just share some views on sort of why this is such a relevant metric for us to be focused on, what does it say about your customers' position right now, maybe how it informs your view of guidance for the year from here.

我想，Kenny 或 Lou，你們都多次提到了零件和服務的積壓和預訂強度。我想只是想退後一步，也許你可以就為什麼這是我們關注的一個如此相關的指標分享一些觀點，它對你的客戶現在的立場有什麼看法，也許它如何告知您對今年指導意見的看法。

Well, I think the number one aspect on parts and services for us is that overall, it's a very high margin part. New project builds are, by definition -- I mean the marketplace is usually a little lower in margins. The parts and services that come following those, though, are obviously -- yeah, come following that are much higher margins. I think we've talked publicly that our parts and service business is between 35% and 40% gross margin overall in the company. So if we could see improvements there, on that -- above and beyond our plans, then that helps to accelerate pulling margin in the outer months once those parts and services are shipped and billed.

好吧，我認為對我們來說，零件和服務的首要方面是總體而言，這是一個非常高利潤的部分。根據定義，新項目建設——我的意思是市場的利潤率通常要低一些。不過，隨之而來的零件和服務顯然——是的，隨之而來的是更高的利潤率。我想我們已經公開談論過我們的零部件和服務業務在公司的整體毛利率在 35% 到 40% 之間。因此，如果我們能看到那裡的改進——超出我們的計劃，那麼一旦這些零件和服務被運送和計費，這將有助於在外部月份加速拉動利潤。

So the importance of it is really around that. The healthy parts and services platform is very strong cash flow for us due to the high-margin nature of it. And more or less, in which we talked about in the past, normally, it's a short book and bill. It's roughly about 60 days now-ish in the marketplace. Well, it used to be 30 but with the new supply chain, it's extended out there a little bit. But that's kind of the way that we think about it in terms of that.

所以它的重要性就在於此。由於其高利潤率，健康的零部件和服務平台為我們帶來了非常強勁的現金流。或多或少，我們過去談到的，通常是一本簡短的書和賬單。現在在市場上大約有 60 天左右。嗯，它曾經是 30，但隨著新的供應鏈，它擴展了一點。但這就是我們考慮它的方式。

I think the other -- just from a company strategy perspective, the important piece here is that by expanding parts of services beyond thermal and renewable and environmental, it's very much a positive for us because that was part of our strategic plan, was to increase our presence in parts and services in those groups, which again seemed kind of high margins and margin activity. But we needed to broaden our presence. So we're seeing the benefit of that because it's been a very strong quarter for our renewable sector, in particular on parts and services.

我認為另一個 - 從公司戰略的角度來看，這裡的重要部分是通過將服務的一部分擴展到熱能、可再生能源和環境之外，這對我們來說非常積極，因為這是我們戰略計劃的一部分，就是增加我們在這些集團的零件和服務中的存在，這似乎又是一種高利潤和利潤活動。但我們需要擴大我們的影響力。所以我們看到了這樣做的好處，因為對於我們的可再生能源部門來說，這是一個非常強勁的季度，特別是在零件和服務方面。

Okay. Thanks for that, Kenny. And then all three business segments looks like they saw pretty good improvement in volume, I guess, by the commentary. I think you're getting the benefits of better operating leverage here. But I guess I just wanted to better understand how the supply chain issues or anything else maybe holding your margins back, whether it's your comments by segment in here or just company overall.

好的。謝謝你，肯尼。然後，我猜，根據評論，所有三個業務部門看起來都看到了相當不錯的銷量增長。我認為你在這裡獲得了更好的經營槓桿的好處。但我想我只是想更好地了解供應鏈問題或其他任何可能會阻礙你的利潤率的問題，無論是你在這裡按細分市場發表的評論，還是只是公司整體的評論。

No, it's a give-and-take. Each quarter, there's -- in some cases, we're allowed to pass along the cost increases of the supply chain aspect and overall goes up in price. And obviously, we're dealing with thousands of objects here. So it's hard to -- I don't have the exact percent. But when do parts and services do go up, for the most part, in most cases, we're allowed to pass that increase on to our customer. There's occasionally a project or two, where we have to absorb it for initial period of time. But then in a quarter or two later, we're able to increase price at that point in time. So there's an added flow in as it relates to that in our parts business and depending on who the customer is and who the parts are.

不，這是一種讓步。每個季度，在某些情況下，我們被允許傳遞供應鏈方面的成本增加，整體價格上漲。顯然，我們正在處理這裡的數千個對象。所以很難——我沒有確切的百分比。但是，當零件和服務確實上漲時，在大多數情況下，在大多數情況下，我們可以將這種增長轉嫁給我們的客戶。偶爾會有一兩個項目，我們必須在最初的一段時間內吸收它。但是在一兩個季度之後，我們能夠在那個時間點提高價格。所以有一個額外的流程，因為它與我們的零件業務相關，並且取決於客戶是誰以及零件是誰。

But if you thought about in terms of -- at this point, I think our supply chain pricing is fairly stable. There's few things still going up, we've seen some stuff come down a little bit on that. But the bigger impact that we still probably overall in the business, we adjusted our targets accordingly. It's just the length of getting certain items in.

但如果你考慮——在這一點上，我認為我們的供應鏈定價相當穩定。幾乎沒有什麼東西還在上升，我們已經看到一些東西在這方面有所下降。但是我們仍然可能對業務產生更大的影響，因此我們相應地調整了我們的目標。這只是獲取某些項目的時間長度。

Especially, if you go back to the solar side, talk about that, when you think about a solar site, obviously, one of the first things we do is qualify whether or not the customers got the panels on hand because if they don't, that's a long lead time item. And secondly, if they have transformers on the supply aspect or who's responsible for the transformer side of it, because those are very much a long lead time item out in the marketplace.

特別是，如果你回到太陽能方面，談談這個，當你考慮太陽能站點時，顯然，我們做的第一件事就是確定客戶是否拿到了面板，因為如果他們沒有，這是一個很長的交貨期項目。其次，如果他們在供應方面有變壓器，或者誰負責變壓器方面，因為這些在市場上的交貨期很長。

So there's some extra caveats and things that we go through when we try to qualify opportunities to make sure that that's all available. But those are -- the longer lead time items in the parts services aspect are -- we kind of baked in that timeframe and our targets. But if that improves, that's great. We haven't seen it, I would say over the past six months, I guess at this point, something like that -- we haven't seen it get worse. And I think that's an important consideration. So it's almost like we're operating kind of in a new norm, and that's what it becomes like anyway.

因此，當我們嘗試確定機會以確保一切可用時，我們會遇到一些額外的警告和事情。但那些是 - 零件服務方面的交貨時間較長的項目 - 我們在那個時間框架和我們的目標中有點烘焙。但如果情況有所改善，那就太好了。我們還沒有看到它，我想說在過去的六個月裡，我想在這一點上，類似的事情——我們還沒有看到它變得更糟。我認為這是一個重要的考慮因素。所以這幾乎就像我們在一種新的規範中運作，不管怎樣，這就是它的樣子。

We have no further questions. I'll now hand back to Sharyn for any closing comments.

我們沒有其他問題了。我現在將返回給 Sharyn 以徵求任何結束意見。

Thank you for joining us. That concludes our conference call. A replay will be available for a limited time on our website today.

感謝您加入我們。我們的電話會議到此結束。今天將在我們的網站上限時提供重播。

Thank you. This now concludes today's call. Thank you so much for joining. You may now disconnect your lines.

謝謝。今天的電話會議到此結束。非常感謝您的加入。您現在可以斷開線路。