燃料電池能源 (FCEL) 2011 Q3 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the FuelCell Energy reports third quarter 2011 results. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session and instructions will follow at that time.

(Operator Instructions)

As a reminder, this conference call is being recorded. I would now like to introduce your host for today's conference, Kurt Goddard, Vice President of Investor Relations.

Good morning, and welcome to the third quarter 2011 earnings call for FuelCell Energy. Delivering remarks today will be Chip Bottone, President and Chief Executive Officer, and Mike Bishop, Senior Vice President and Chief Financial Officer. The earnings release is posted on our website at www.fuelcellenergy.com, and a replay of this call will be posted 2 hours after its conclusion.

The telephone numbers for the replay are listed in the press release. Before proceeding with the call, I would like to remind everyone that this call is being recorded and that the discussion today will contain forward-looking statements, including the company's plans and expectations for the continuing development and commercialization of our FuelCell technology.

I would like to direct listeners to read the company's cautionary statement on forward-looking information and other risk factors in our filings with the US Securities and Exchange Commission. Now, I would like to turn the call over to Chip Bottone. Chip?

Thank you, Kurt. Good morning, everyone, and welcome. As global energy demand and the need for the new sources of power grows, our intense focus on driving growth has generated increased order flow and produced the highest backlog of products and services in our history.

Our team is executing on the production of this record backlog extremely well and we are delivering strong financial results. For the first time since commercializing our FuelCell power plants, we achieved a gross profit for the third quarter of 2011. This is a great achievement for the entire FuelCell Energy team and brings us closer to our goal of company profitability. As announced previously during the third quarter, POSCO Power, our South Korean partner, placed a 2-year order for 70-megawatts of FuelCell kits, equipment, and services valued at $129 million. This is POSCO's largest order to date and represents initial demand under South Korea's renewable portfolio standard.

We're also pleased to announce further expansion into the Asia region by POSCO. Before discussing the results further, I want to introduce Michael Bishop, FuelCell Energy's Chief Financial Officer, who will present our financial results. Mike is a CPA and has extensive experience with high growth public companies, technology development, and services deployment. I know his experience and financial leadership will serve us well. During his 8 years with us, Mike has built a solid team, ensuring that the finance, legal, and information systems are well positioned to support and continue the growth of the company. Mike?

Thank you, Chip. Good morning, and thank you for joining our call today. FuelCell Energy reported total revenues for the third quarter of 2011 of $31.2 million compared to $18.9 million in the same period last year. This 65% growth in quarterly revenue from 1-year ago is reflective of the increasing demand for our products and our current production rate, which now exceeds 50-megawatts on an annual basis.

Product sales and revenues for the third quarter were $29.4 million compared to $16.2 million in the prior year. The company's product sales and service backlog totaled $231 million as of July 31, 2011; compared to $80 million as of July 31, 2010. For the third quarter of 2011, product order backlog totaled $153 million and backlog for service agreements totaled $78 million. Backlog is the highest in the company's history, as a result of the $129 million order for 70-megawatts of FuelCell kits and other equipment and services received from our South Korean partner, POSCO Power. We generated gross profit in the third quarter of 2011. This is a significant milestone and the first gross profit since the company began commercializing our FuelCell products.

Margins for product sales and revenues improved by $4.1 million compared to the third quarter of 2010, and the product cost to revenue ratio improved to 0.99 to 1. Research and development contract revenue was $1.8 million for the third quarter of 2011 compared to $2.7 million in the prior year quarter. The company's research and development backlog totaled $13.6 million as of July 31, 2011, compared to $7.4 million as of July 31, 2010. Net loss to common shareholders for the third quarter decreased by $8.6 million, or $0.007 (sic-see press release) per basic and diluted share, compared to $13.8 million, or $0.15 per basic and diluted share for the third quarter of 2010.

This is a 38% improvement over the prior year, as a result of improved product margins and lower operating costs. My discussion to follow on year-to-date results will exclude the charges related to the repair and upgrade program and the revaluation of the Series 1 preferred shares recorded during the second quarter of 2011.

Please note that there is a non-GAAP reconciliation included at the end of the earnings release that illustrates financial results, fiscal year-to-date, excluding these items. For the 9 months ended July 31, 2011, the company reported total revenue of $87.8 million, which is a 75% increase over the $50.1 million recorded in the prior year period.

Product sales and revenues, which include services, were $81.8 million compared to $42 million in the prior year. Research and development contract revenue was $6 million compared to $8 million. Product sales and revenues improved by $11.1 million compared to the prior year period. And, cost of product revenue ratio improved to 1.05 to 1 from 1.36 to 1 on product cost reductions including better labor efficiency and overhead absorption, with higher production rates. Net loss to common shareholders declined for the 9 months ended July 31, 2011, to $32.3 million, or $0.26 per basic and diluted share, compared to $45.9 million, or $0.52 per basic and diluted share, for the prior 9-month period.

Total liquidity was $51.9 million as of July 31, 2011, including cash and investments in US treasuries of $49.5 million, and revolver availability of $2.4 million. Net use of cash, cash equivalents, and investments in the third quarter of 2011 was $5.5 million, consisting of $900,000 net cash used in operating activities, $1.1 million of net cash used in investing activities, and $3.5 million of net cash used in financing activities.

Total cash use for the 9 months ended July 31, 2011 was $25.4 million, excluding revolver borrowings and net proceeds from the registered direct offering of common stock, which was completed in January. We have previously discussed our expectations for full year fiscal '11 cash use to be in the range of $24 million to $32 million.

We expect to be at the lower end of this range for the full fiscal year. We achieved a significant milestone this quarter by generating gross profit, which illustrates our progress. We expect to build off of this and are forecasting improvement to gross margin for the fourth quarter of 2011 compared to the third quarter based on our current production plan.

We recognize that more work needs to be done as we push to profitability and beyond. Increased product sales and services, combined with continued cost reductions will drive profitability. We continue to estimate company profitability at annual production rates in the range of 80-megawatts to 90-megawatts. Chip?

Thank you, Mike. FuelCell Energy's vision is to provide ultra clean efficient distributed generation base load power for less than the cost of grid delivered electricity without incentives. We have positioned the company to participate in a very attractive and growing market space.

The Nexus of 3 closely related markets encompassing clean renewable energy, the smart grid and energy efficiency. To achieve our vision, we have established 3 strategic priorities. Driving growth, operational excellence, and customer satisfaction. Let's talk first about driving growth.

FuelCell Energy is the world's leading producer of megawatt class fuel cells for clean and renewable base load power generation. More than 80 of our power plants are generating ultra clean power at more than 50 sites globally. Our install base of backlog now exceeds 180-megawatts.

We sell into 2 growing primary markets. The first is ultra clean power fuel cells operating on clean natural gas across 7 distinct and diversified vertical markets. The second is renewable power. FuelCell's operating on renewable bio-gas across 4 distinct and diversified vertical markets.

Global demand for power continues to grow and the need for distributed generation becomes more apparent with every unforeseen event that interrupts the electric grid, whether it's the hurricane or an issue with nuclear power generation. We have analyzed our markets and estimate that the near-term global potential for FuelCell power plants is about $6 billion, of which renewable energy represents about $2 billion.

Services are growing part of our revenue stream, represent significant additional potential, but are not included in these estimates. Our worldwide business is growing because our direct FuelCell solutions excel at solving energy, environmental, and business problems. Our DFC Power Plants are ultra clean, efficient, and reliable distributor generation solutions.

The emissions profile virtually eliminates pollutants and helps customers reach their sustainability goals, their high electrical efficiency results, and more output per given unit of fuel, reducing operating costs and carbon emissions. Our power plants generate electricity at the point of use without additional investments in transmission and distribution. Growing demand and our relentless focus on driving growth have resulted in increased order flow from our markets. During the third quarter, POSCO Power ordered 70-megawatts of FuelCell kits. Under this order, we will deliver 2.8-megawatts of FuelCell kits to POSCO every month for 2 years from October 2011 through October 2013.

This order almost doubled our product and service backlog to $230 million and 79-megawatts. We increased our production run rate to 56-megawatts during the third quarter of 2011, up from 22-megawatts in late 2010. We will maintain this 56-megawatt rate through 2011 and then increase it as needed to meet demand. We ramped up production very quickly and I'm proud of the outstanding job our entire team of associates is doing to support this growth.

Credit for achieving our recent operational milestones goes to Tony Rausea and his talented associates. Tony's our Chief Operating Officer. Tony's been with FuelCell Energy since 2005 and has a strong track record of delivering results. Formerly Vice President of Engineering and Chief Engineer, Tony was appointed Chief Operating Officer in 2010 and has been instrumental in helping shorten product development times, improve product operational reliability, and, most importantly, achieving significant cost reductions.

Attaining positive gross profit for the third quarter is a significant milestone for us. This achievement illustrates the operating leverage inherent in our business model. As our production volume grows, the absorption of our factory fixed overhead improves, as our production ramp involved a lot of hard work, but not a lot of costs other than additional direct labor. In addition, the large 2-year POSCO order provides a base level of production and material purchase planning. This operational predictability combined with expanded global sourcing and higher volume purchasing is generating additional cost reductions. We remain on track to achieve company profitability at a run rate in the range of 80-megawatts to 90-megawatts annually.

Let's look at some of our key market developments. In South Korea, POSCO Power's large order represents initial demand under the country's renewable portfolio standard, which mandates 6000-megawatts of new and renewable energy through 2022, including fuel cell's operating either natural gas or renewable bio-gas. The RPS, which goes into effect in 2012, will continue to drive demand for fuel cells in South Korea. POSCO has developed nearly 70-megawatts of projects already and is developing a substantial pipeline of new projects and memorandum of understandings with key customers.

We expect the order volume will grow in response to demand created by the RPS, and the potential exists for our partner to place incremental orders to satisfy market demand. We recently completed strategic planning discussions with POSCO. We focused on expansion and penetration of other Asian markets and plans to accelerate our business growth and alignment of our respective strengths and resources.

There are substantial growth opportunities within Asia, supported by the need for ultra clean base load distributed generation. We are pleased to announce the initial step in POSCO's Asia expansion plans, as explained in our press release issued this morning regarding market expansion into Southeast Asia.

POSCO Power's expanding outside of South Korea, with a high profile installation in Indonesia. In addition, POSCO will open a sales and services location in Indonesia to support further growth in Southeast Asia. South Korea's green energy and economic policy is focused on clean distributed generation that is scalable, efficient, and creates green jobs.

Scalable distributor generation allows power to be added in cost effective increments at the point of use, while minimizing costly investment in transmission and distribution. Fuel cells are an ideal distributed base load solution for South Korea, and other geographies, because they are ultra clean, efficient, quiet, easily sighted in areas of high population density.

POSCO has completed and begun production at its local stacking facility, which has annual capacity of 100-megawatts. Under our licensing agreement, POSCO assembles complete power plants using FuelCell components produced by us and our proprietary balance of plant designs.

POSCO assembled the first fuel cell to be stacked in their module assembly and completed power plant has been installed at a customer site. Our manufacturing business model can be replicated in other markets globally to respond to market demand and the desire for high quality sustainable job growth. We control intellectual property, while leveraging our manufacturing capacity to support local markets.

Our partners create market demand by developing policy and deliver plants and jobs creating both customer and market value in addition to economic development. Localization also ensures our products are adapted to local power needs. Another example of partner alignment, in focusing our resources on an emerging opportunity, is the building application market.

FuelCell Energy and POSCO are developing 100-kilowatt FuelCell power plant for the commercial buildings market that is being driven by the South Korean energy policy. This project is on schedule and we expect to ship 200-kilowatt demonstration stacks to POSCO later this year.

POSCO is designing the balance of plant and will install the units in Seoul City. This product has strong market potential in South Korea and other regions globally. In California, recent installations in the process of commissioning, combined with the pending installation from backlog, will give rise to more than 12-megawatts of new plants coming online in the next several quarters in key market segments with marquee customers.

This increases our install base in California by more than 60% and gives us momentum to increase our market penetration and deliver growing service revenue. Policy development continues to evolve and is a significant portion of our efforts. These developments include an increase of its renewable portfolio standard from 20% to 33%, plans to deploy 12,000-megawatts of renewable distributed generation, and a shift to performance-based fee and tariff policies. We have also had favorable results in a development of project and program financing, which will aide in the closure of new business. In August, Pacific Gas & Electric signed 2 multi-year service agreements under which FuelCell Energy will operate and maintain two DFC1500 power plants owned by the utility and recently installed on 2 California university campuses.

They are efficiently and economically providing ultra clean base load power and useable heat while helping these universities meet their sustainability goals. In Connecticut, we have made significant progress in the development of financing for several projects. We'll be ready to announce the closure of some soon. The state recently adopted a comprehensive Clean Energy policy designed to increase energy efficiency and expand renewable power.

The state created a long-term renewable energy credit program funded with $300 million over 20 years. Connect has begun taking the position of greater national leadership in clean distributed clean generation. And, this legislation should be more effective in fostering the near-term adoption of Clean Energy than prior legislation.

FuelCell Energy has more than doubled production in less than 1 year and added 50 good-paying green jobs in 2011 to the state's economy. Finally, we are in the final stages of discussion with 2 potential major European partners. I expect you will hear some news prior to our next call.

Europe is an attractive and under-served market for stationery fuel cell power plants. We are currently working on follow-up orders in the UK market from our previously announced order with the Crown Estates in the UK. The sizable segment of our growing backlog, as you've heard, is comprised of multi-year service agreements, which all of our customers have executed.

Service agreements are an increasingly important part of our focus on customer satisfaction. They help us partner more closely with our customers to deliver expected value and provide us with the opportunity for additional and adjacent services. Service agreements generate predictable and stable recurring revenue. And, as our install base continues to grow, we'll begin to contribute materially to profitability and future sustainable revenue.

We are focusing our Advanced Technology programs on strategic areas of research and technologies that have strong prospects for commercialization within a reasonable time frame. Our research and development capabilities and strong intellectual property portfolio contribute value in many ways, including enhancement of our current product line and the development of adjacent markets for existing products.

An excellent example of this is the recent inauguration of the world's first waste water treatment-based FuelCell power plant renewable hydrogen fueling station in Southern California. Our team modified 1 of our commercial power plants to provide renewable hydrogen for vehicle fueling, plus ultra clean electricity, illustrating the versatility of our technology.

Other contracts and areas of similar importance are expected to be announced in the next several weeks. We have a clear vision with 3 strategic priorities that can deliver profitability and sustainable growth.

As we strive to meet the world's energy needs today, our strategic priorities of driving growth, operational excellence, and customer satisfaction are producing positive financial and operating results. We achieved quarterly gross profit. Our products are profitable.

POSCO placed a large multi-year order, the largest in our history, and we are executing on the production of our record backlog. While more remains to be done, I would like to thank our talented associates for making excellent progress, and for our investors, with their confidence placed in us. Thank you for your continued support. Operator, we'll be happy to take questions at this time.

Thank you.

(Operator Instructions)

First on the line, we have John Quealy with Canaccord Genuity.

Hi, good morning, guys. It's Mark Siegel for John. Recognizing that South Korea has the strong renewable portfolio standard in place, have any of your conversations with POSCO divulged any sense of a digestion period after the next 70-megawatts are delivered? Or, can you just talk about how they are thinking about that?

Yes, Mark, good morning. This is Chip. Yes, in fact, we just had a strategic review meeting which I alluded to in my script. I would say they have installed about 70-megawatts and that really was the showcase and digestion period. The RPS program really starts to take effect in 2012. They have got a lot of activity, some of which are customers have actually visited us here. We visited them.

And, I think the demand is going to be so large that they will easily consume that 70-megawatts certainly over that 2-year period. They have got expectations significantly beyond that. So, I don't see a stop and go effect here. They have crossed over that and now it's in the go phase, Mark.

Okay, and then, just moving on to Indonesia. Can you talk a bit about some of the similarities and differences you might see between Korea and Indonesia, and how do you see sales cycles shaping up in Indonesia? Any color there?

Yes, first of all, that's -- there's 2 drivers there. Number one, POSCO wants to export, if you will, to some of the other opportunities, specifically in Asia. They have targeted Southeast Asia. Indonesia happens to be the first place in Southeast Asia they went to. But, they have strong ties, obviously, to the construction business and they have strong export bank financing support.

So, that's the motivation there. As far as the markets itself, the region that Southeast Asia is interesting is twofold. One, there's demand, given the GDP growth over there. But, secondly, particularly Indonesia has some very high population density issues, coupled with the demand for capacity and obviously they are a significant producer of oil and gas supply.

So, they have some pretty good economic dynamics of which that we can help them with. So, that's -- I think it's 2-phase. POSCO is motivated and I think the economics from their side will work very well with our products.

Okay, great. And then, just lastly, given the strong showing that FuelCell technology had in Connecticut 150, is there any reason to believe that FuelCells wouldn't enjoy a similar showing under the new long-term renewable energy credit? Any early indications there? Just from a technology standpoint and a relative market share?

No, actually, we're going to get some of the other ones, the 150 project done as I mentioned. Going forward, the program's a little bit different. Actually, I think it actually works better. It's more of a predictable REC value. There was some -- not floor directs on the previous programs, so, it depends on how you look at it, but I'm quite confident the program going forward, Mark.

Great. Congratulations on all the progress this quarter.

Thank you.

Our next question comes from Sanjay Shrestha with Lazard.

Thank you. Two questions, please. How should we think about the gross margin and building the current backlog? And, what does that mean in terms of cost production potential over the next 12 months?

Good morning, Sanjay. It's Mike Bishop.

Hi, how are you?

Good. Our profitability is tied to our current production levels, Sanjay. Our backlog is profitable. We expect to generate profitability in the fourth quarter, as I described in my script. As long as our production remains at our current run rates, and increasing over time, we'll continue to generate gross profit.

Great, great. Just one quick follow-up here. In terms of the European markets, how should we think about -- can you provide us anything on the distribution opportunity in that market?

Sanjay, this is Chip. Your question was somewhat garbled. Could you repeat it, please?

Could you provide us with an update on the distribution opportunity within the European market?

This is Chip. I can answer that Sanjay. I alluded to it in my comments, we've been in discussion with several players and we've been very cautious to obviously pick the right partners. POSCO was a great partner.

We understand what the right partner looks like. So, Europe -- I can't comment on the specifics of who they are, other than to say we've done a lot of due diligence. We're in pretty advanced discussions with multiple parties. And, I'm pleased that we're going to finally be able to do something in Europe.

Because it's an under-served market, just based on some of the things that were done before. So, I'll just have to defer a little bit to the further news flow before I can comment any further on that.

All right, great. And, congratulations on the strong progress here.

Thanks.

Thank you.

Our next question comes from Walter Nasdeo with Ardour Capital.

Thank you, good morning, guys.

Good morning.

Good morning, Walter.

I would like to touch on the 100-kilowatt product that you're developing with POSCO now for commercial use over there. Can you give us a little idea on what, if any, technological challenges you're facing on scaling back down again as far as efficiencies go, and any design issues that you're dealing with? And then, off of that, what overall cost per kilowatt are we looking at now in the completed units?

Okay. Let's see if I can remember all of that, Walter. Let me first start with what the program is, because I think it will help frame what the opportunity is. The government, obviously, imports a majority of their fuel from outside the country.

So, they are very keen to put in place long-term strategies of efficiency, et cetera, et cetera. And, this is really a compulsory program starting first with all federal buildings. They need to have 5% of their power demand has to come from renewable or new sources. And, that's a fuel cell effectively because that's really all that fits in there.

You can't do solar or anything like that. So, we're developing this product based on our current design. Basically, Walter, if you will, it's just 1/3 the stack size and POSCO's developing the balance of plant based on the balance of plant that they've developed, they've localized, if you will, on their own.

I think there's very low technical risk, and they think this is going to be a very, very large market. And, in fact, they think it's going to then be applied to commercial buildings. In fact, we're having some discussions that any buildings over X size in Seoul would basically have to have the same thing and they might even increase the percentage.

If the building is bigger, therefore then the base load would be different. They are really keen on this program. As far as dollars per kilowatt, we're not at the point that we can comment on that right now. We're literally in the development phase of this, but, I think it's less sensitive to pricing given the compulsory nature of the opportunity.

What's the expected footprint, then, of this unit?

Walter, I don't have that. I can get that to you on e-mail. We have some layouts for it. But, I don't know it off the top of my head. It's probably similar in size to our original 300-kilowatt, maybe a little bit smaller.

Okay, so this would be -- but this would be installed outside the building then, correct, like in the parking lot?

Outside or inside, Walter. Probably inside. And, it's both a power electricity as well. They are going to use the heat as well, for hot water.

Okay, thank you.

You're welcome.

Our next question comes from Matthew Crews with Noble Financial.

Good morning, everyone.

Good morning.

Question, to stay on that topic real quick on the JV development, is that program -- the announcement back in November was $5.8 million. You said you did about $5.5 million in the quarter. What are our expectations from a revenue perspective on this program moving forward?

I'll take that one, Matthew. This is Mike. Yes, the total program, about $5.5 million. That has come through during the fiscal year. In this quarter, we probably had about $2 million of revenue related to that. The other revenue coming through was related to other components and construction activities and installation activities for other projects. We expect that program will wrap up here in the fourth quarter and first quarter of 2012.

And, just to add to what Mike said, Matthew, as far as production -- because don't forget these are the first 2 units they are putting in. They are going to test these out. Like I said, pretty low technical risk here. Real production demand will probably come in the form of kits similar to our bigger unit kits probably hitting sometime in 2013, based on the market demand that POSCO then foresees.

Okay. What's the competitive -- a lot of the literature out there has shown that the solid oxide fuel cell technology has been promoted both by POSCO, I believe, as well as South Korea. Is POSCO looking at the molten carbonate fuel cell as, obviously, an alternative attractive technology based on what you just said, the low technology risk?

Yes. That's the -- there's a couple things. One, it's ready now and it's low technology risk as compared to others. I think that's the 2 main drivers, because this program takes effect now, I would say 2012.

They are looking at putting the molten carbonate fuel cell in lots of different applications. We've talked about power plants, now we're talking about building applications. There's discussions going on about different types of buildings, discussions going on about onboard shifts and things like that. The technology itself is pretty versatile and finding the right opportunities, when you put them all together, can create a pretty substantial market opportunity.

And would you -- if my understanding's correct, that's technology or stack size that you could use in the US as well?

You could use it in the US. Again, some of our cities are a little different lay out and some of the grid requirements are a little different than we have here. And, some of the economics are a little different. But, in their case, it's a compulsory program, which really drives it, which means it's almost like a fire alarm system, you got to have one, right?

Okay. Can you explain, again, just the general idea of what you're looking for in the partnership in Europe? Obviously, you said you need to find someone there local if you're looking at a country like Germany. But, is this one of those ones where you're looking for a POSCO type? Someone to actually do the bulk of the manufacturing? Could you just -- what's an ideal layout? Is it identical to POSCO or any differences?

It's a little different. Let me just explain my comment about partners first. What we found is a couple things are attractive in a partner. One, they understand the power generation business. Even though POSCO Power was in the steel business, they had a POSCO Power business that understood how to run a power generation business. They didn't have any other things competing with it. They were all-in on fuel cells or power plants, so, they didn't own any core technology.

Second is, they had the ability to create market opportunities, both in the brand recognition and ability to set some policies. Those are the 2 main drivers that we look at in trying to find a partner. We have several different options on the table, where we may pick up somebody else's assets.

But, the plan here is to partner with somebody, in this case sizable names, that can give us both the access and the reputation that we're talking about. And, probably in Europe, because it's a little more fragmented than Korea was, actually, in terms of its efforts. We'll probably do something whereby we're involved in some sort of a joint venture type of arrangement.

Okay.

Whereas with POSCO, it's not a joint venture per se.

Okay, and then, just lastly, and I'll hop back in the queue. Looks like legislation in the SGIP program is progressing. Looks like they are getting financing squared away for hopefully '12. Any updates there? Seems like you've been a little quiet on the front for California orders.

Yes, it's a great question. Yes, in fact, the proposed decision just came out yesterday and they are going to vote on that, I think, tomorrow actually, the Public Utility Commission. Yes, what's happened on that was even though we have people that have reservations that can still use those, the whole discussion centered around almost stopping, because people were concerned that, well, maybe I can get a better deal, or something like that, so you're right.

We did see activity, other than stuff that we had going on, not close. But we have 2 types of customers going forward. We have the ones that have reservations that are teed up and ready to go. And, then, we have ones that would apply for a new application as soon as the rules, in fact, are done and get those ready to go. So, over the next quarter or so, you'll see some activity in California pick back up again.

But, it really came to somewhat of a standstill while the administration was coming and putting their changes in place. I would also say, though, that also what's coming is some other tools which we didn't have before. We're in the final phases of the CHP feed-in tariff, which is, in fact, an add-on aspect of SGIP.

If you looked at it closely, you can now apply for 25% export, which will help economics. And then, the other one that's also in the works is the renewable feed-in tariff. And then, of course, the ITC federal grant is still out there as well. There's other tools, but some of this was a little bit emotional for some people. It will start to get going again now.

Okay, I'll hop back in the queue. Thank you very much.

At this time, I'm showing no further questions. I would like to turn it over to our speakers for any closing remarks.

Okay. Well, if there's no further questions, I would just like to thank everybody for calling in, and we look forward to speaking with you on the next call. Have a great day. Thank you.

Ladies and gentlemen, thank you for your participation in today's conference. This concludes the program. You may all disconnect. Everyone, have a great day.