iSun Inc (ISUN) 2022 Q4 法說會逐字稿

Greetings, and welcome to the iSun Energy fourth-quarter and full-year 2022 financial results call. (Operator Instructions) Please note this conference is being recorded.

大家好，歡迎來到 iSun Energy 第四季度和 2022 年全年財務業績電話會議。 （操作員說明）請注意正在錄製此會議。

I will now turn the conference over to your host, Mary Conway. You may begin.

我現在將會議轉交給主持人 Mary Conway。你可以開始了。

Thank you, operator, and good morning. We are pleased to welcome you to iSun's conference call, where we will discuss financial and operating results for the fourth quarter and full year 2022.

謝謝接線員，早上好。我們很高興歡迎您參加 iSun 的電話會議，我們將在會上討論第四季度和 2022 年全年的財務和經營業績。

Jeffrey Peck, 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, along with our outlook for 2023. John Sullivan, Chief Financial Officer, will provide an overview of the fourth-quarter and full-year 2022 financial results and operating performance. After our prepared remarks, we will open the lines to address any questions.

董事長兼首席執行官 Jeffrey Peck 將介紹整個太陽能領域的最新情況，以及我們廣泛的太陽能平台如何應對當今的機遇，以及我們對 2023 年的展望。首席財務官 John Sullivan 將概述2022 年第四季度和全年財務業績和經營業績。在我們準備好的評論之後，我們將打開線路來解決任何問題。

As a reminder, the earnings release that was issued this morning, and which can be found on iSun's investor website at www.isunenergy.com, includes financial disclosures and reconciliations for 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.

提醒一下，今天上午發布的收益發布（可在 iSun 的投資者網站 www.isunenergy.com 上找到）包括非 GAAP 財務措施的財務披露和調節。我們在今天的電話會議上發表的任何評論可能包括涉及管理層預期或未來預測的前瞻性陳述。

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.

這些陳述是在今天作出的，管理層不承擔在未來更新這些前瞻性陳述的義務。此類陳述受風險和不確定因素的影響，可能導致實際結果與管理層的預期不同。

With that, I will now turn it over to our CEO, Jeff Peck. Jeff?

有了這個，我現在將把它交給我們的首席執行官 Jeff Peck。傑夫？

Good morning, everyone. Thanks for joining us today. I'm happy to be here to share iSun's recent progress and our plans for the coming year with the investment community.

大家，早安。感謝您今天加入我們。很高興能在這裡與投資界分享iSun最近的進展和我們來年的計劃。

During our last call, we discussed some of the project delays we were facing due to CPG extensions and utility delays in our key markets. At the time, we are confident that these projects were just delayed and not canceled. And I'm excited to report that since that last call, and as we had expected, we've seen $70 million of our backlog transition to signed contracts and active projects. Due to this positive development and other factors that I will discuss today, I'm confident that we are executing on our strategic plan in advancing the company towards achieving our mission to accelerate the nation's adoption of solar energy.

在上次通話中，我們討論了由於關鍵市場的 CPG 延期和公用事業延誤而導致的一些項目延誤。當時，我們確信這些項目只是被推遲了，並沒有被取消。我很高興地報告說，自上次電話會議以來，正如我們所預期的那樣，我們已經看到 7000 萬美元的積壓工作轉移到了已簽署的合同和正在進行的項目中。由於這一積極的發展以及我今天將討論的其他因素，我相信我們正在執行我們的戰略計劃，以推動公司實現我們加速國家採用太陽能的使命。

In the fourth quarter of 2022, we made significant advances across our operations. The proof of our consistent execution and focused approach is clear in our strong 2022 revenue, which increased by 69% from 2021 and exceeded our guidance, as well as the Street's guidance.

2022 年第四季度，我們的運營取得了重大進展。我們在 2022 年強勁的收入中清楚地證明了我們始終如一的執行力和專注的方法，該收入比 2021 年增長了 69%，超出了我們的指導以及華爾街的指導。

However, before I comment on our fourth-quarter and full-year results, I want to review our strategic plan and our progress in executing on it. Our strategic plan, upon going public, was based upon executing our three-pronged approach to growth within each segment of the solar and electrification industry.

然而，在我評論我們的第四季度和全年業績之前，我想回顧一下我們的戰略計劃以及我們在執行該計劃方面的進展。上市後，我們的戰略計劃基於在太陽能和電氣化行業的每個細分市場中執行我們的三管齊下的增長方法。

This approach included organic growth, growth via acquisitions, and growth of owned solar assets to generate recurring revenue. In just a few short years, we are now operating in the EV infrastructure, residential, C&I, and utility segments and providing services to our customers from project origination to completion, as well as ongoing O&M services.

這種方法包括有機增長、通過收購實現增長，以及增加自有太陽能資產以產生經常性收入。在短短幾年內，我們現在在 EV 基礎設施、住宅、C&I 和公用事業領域開展業務，並為我們的客戶提供從項目發起到完成的服務，以及持續的 O&M 服務。

During this period, we expanded geographically, made acquisitions, and made key investments, both internally and externally. These external investments were designed to supercharge our growth, create recurring revenue, and expand asset ownership. The internal investments were made to build our team and systems the infrastructure we need to support our growth plans and enable us to effectively execute on the recurring revenue opportunities created by these external investments. As we've said before, this platform approach is a competitive and differentiating advantage for us and positions iSun for long-term sustainable growth.

在此期間，我們在內部和外部進行了地域擴張、收購和重大投資。這些外部投資旨在促進我們的增長、創造經常性收入並擴大資產所有權。進行內部投資是為了建立我們的團隊和系統，這是我們支持增長計劃所需的基礎設施，並使我們能夠有效地執行這些外部投資創造的經常性收入機會。正如我們之前所說，這種平台方法對我們來說是一種競爭和差異化優勢，並使 iSun 能夠實現長期可持續增長。

As important and focused as we have been on growing our top line, we also know how important it is to have process improvement and drive higher efficiency throughout the organization. With that in mind, we've begun several recent initiatives to increase our efficiency.

正如我們一直致力於增加我們的收入一樣重要和專注，我們也知道在整個組織中改進流程和提高效率的重要性。考慮到這一點，我們已經開始了最近的幾項提高效率的舉措。

On the residential front, we have improved our sales and marketing efforts by streamlining our sales offering to the most popular and in-demand offerings for our customers, reducing SKUs, improving our inventory, and decreasing delays as customers confront what can be a new and complicated energy market.

在住宅方面，我們改進了銷售和營銷工作，將我們的銷售產品簡化為最受客戶歡迎和需求的產品，減少 SKU，改善我們的庫存，並減少延誤，因為客戶會遇到新的和可能出現的問題複雜的能源市場。

Earlier this year, we combined our SunCommon and legacy commercial operations, expanding the sales efforts, streamlined our design and engineering process, and eliminated duplicative operational roles. We believe that these steps will create an improved customer experience, provide us better flexibility, and will expand our labor utilization that will speed our delivery of services to customers and increase our efficiency and enhance our margin performance over time.

今年早些時候，我們合併了 SunCommon 和遺留商業運營，擴大了銷售力度，簡化了我們的設計和工程流程，並消除了重複的運營角色。我們相信，這些步驟將改善客戶體驗，為我們提供更好的靈活性，並擴大我們的勞動力利用率，從而加快我們向客戶提供服務的速度，提高我們的效率，並隨著時間的推移提高我們的利潤率。

We also continued to implement a shared services model to drive down costs throughout the organization. John will provide greater details on how internal investments will prepare us for the growth ahead and provide these savings and efficiencies needed to the organization.

我們還繼續實施共享服務模型，以降低整個組織的成本。 John 將提供更多詳細信息，說明內部投資如何讓我們為未來的增長做好準備，並為組織提供所需的這些節省和效率。

Now moving to the fourth quarter and the full year of 2022. For the full year, our revenues increased by 69% to a record $76.5 million, above the revenue range we provided in November of 2022 despite the industry dynamics and exceeding the Street's consensus.

現在轉到 2022 年第四季度和全年。全年，我們的收入增長了 69%，達到創紀錄的 7650 萬美元，儘管行業動態並超出了華爾街的共識，但仍高於我們在 2022 年 11 月提供的收入範圍。

Our fourth-quarter revenue of $25.9 million grew sequentially by 36% from the third quarter. On a year-over-year basis, fourth-quarter 2022 revenue was down slightly from what was a strong fourth quarter in the prior year at $27 million, and that benefited from end-of-year transaction surge.

我們第四季度的收入為 2590 萬美元，比第三季度環比增長 36%。與去年同期相比，2022 年第四季度的收入略低於去年第四季度強勁的 2700 萬美元，這得益於年終交易激增。

Our gross margin was strong in the fourth quarter at 21.0%, and our full-year gross margin increased 680 basis points to 20.9%, compared to 14.1% for the full year 2021. This partly reflects the higher proportion of our revenues from the residential segment, where gross margins tend to be higher, and better project performance in our C&I division. Moreover, we remain confident that as we scale, drive synergies and efficiencies throughout the organization, we will continue to generate margin expansion in 2023.

我們的毛利率在第四季度強勁，為 21.0%，全年毛利率增長 680 個基點至 20.9%，而 2021 年全年為 14.1%。這部分反映了我們來自住宅的收入比例較高細分市場，毛利率往往更高，我們的 C&I 部門的項目績效更好。此外，我們仍然相信，隨著我們在整個組織中擴大規模、推動協同效應和提高效率，我們將在 2023 年繼續擴大利潤率。

As of December 31, 2022, our total backlog was $164.2 million, and our pipeline reached 1.6 gigawatts of projects at the end of 2022, up an impressive 1.1 gigawatts from the end of 2021. These backlog and pipeline numbers underscore the extent of the increased customer demand we're experiencing across the business, as well as the effectiveness of our strategic initiatives that I'll focus on further in a moment.

截至 2022 年 12 月 31 日，我們的總積壓訂單為 1.642 億美元，到 2022 年底，我們的管道項目達到 1.6 吉瓦，比 2021 年底增加了 1.1 吉瓦，令人印象深刻。這些積壓訂單和管道數量突顯了增加的程度我們在整個業務中遇到的客戶需求，以及我稍後將進一步關注的戰略計劃的有效性。

We are very proud of the team's hard work in attaining these results. Much of the success is due to the high level of customer satisfaction, specifically in the residential segment, which generates a large referral business, which creates a lower customer acquisition cost. We also have strong customer relationships developed over years of collaboration through the depth of knowledge and services available from our team. The depth of services and knowledge and strong customer relationships have led to many recent contracts.

我們為團隊為取得這些成果所做的辛勤工作感到非常自豪。成功很大程度上歸功於高水平的客戶滿意度，特別是在住宅領域，它產生了大量的推薦業務，從而降低了客戶獲取成本。通過我們團隊豐富的知識和服務，我們還通過多年的合作建立了牢固的客戶關係。服務和知識的深度以及牢固的客戶關係導致了最近的許多合同。

Let me share additional details on a few of them. The first is a $16.4-million development project transaction signed late last year, which includes both the sale of the developed project to a partner for $4.8 million, as well as the execution of an EPC contract by it at $11.6 million. This project is a concrete example of our ability to use internal expertise to develop an asset that we can then sell while retaining the implementation capabilities, bringing our end-to-end approach to there. We're delighted with the success. We expect the final closing and EPC contract to begin in the third quarter of 2023.

讓我分享其中一些的更多細節。第一項是去年底簽署的價值 1640 萬美元的開發項目交易，其中既包括以 480 萬美元的價格將開發項目出售給合作夥伴，也包括由其以 1160 萬美元的價格執行 EPC 合同。這個項目是我們利用內部專業知識開發資產的能力的一個具體例子，我們可以在保留實施能力的同時出售資產，從而將我們的端到端方法帶到那裡。我們對成功感到高興。我們預計最終交割和 EPC 合同將於 2023 年第三季度開始。

Similarly, another recent award for 5.9 megawatts, part of a three-contract win for us, secured late last year, demonstrates our ability to work with significant new partners for sizable community solar projects in northern New England. Deepening our relationships with current customers and introducing new customers to our collaborative approach is how our team operates, and this is a key element of our strategic plan to drive growth and achieve our company's mission. Again, we're pleased with the team's hard work in achieving these important milestones.

同樣，我們最近獲得的另一個 5.9 兆瓦的合同是去年底獲得的三項合同的一部分，這表明我們有能力與重要的新合作夥伴合作，在新英格蘭北部開展大型社區太陽能項目。加深我們與現有客戶的關係並向新客戶介紹我們的協作方法是我們團隊的運作方式，這是我們推動增長和實現公司使命的戰略計劃的關鍵要素。我們再次對團隊為實現這些重要里程碑所做的辛勤工作感到高興。

Lastly, as you may have seen earlier this week, through our most recent contract wins, we gained seven new projects with two existing customers in different locations. The first series of five projects amounts to 6.5 megawatts and $5.1 million in value, while the second of the two significant C&I projects comprises of 6.0 megawatts and valued at $4.9 million. We're very pleased to continue this high pace of contract wins this year, especially since all of these are expected to begin this spring and be completed this year or early in 2024.

最後，正如您本週早些時候看到的那樣，通過我們最近贏得的合同，我們獲得了七個新項目，其中兩個現有客戶位於不同的地點。第一系列的五個項目總計 6.5 兆瓦和價值 510 萬美元，而兩個重要的 C&I 項目中的第二個項目包括 6.0 兆瓦和價值 490 萬美元。我們很高興今年能繼續保持這種高速度贏得合同，尤其是因為所有這些合同預計將於今年春季開始，並在今年或 2024 年初完成。

I just want to share a few words about the impact of the climate legislation enacted last summer. We said repeatedly that we believe that the long-term support and stability provided by the legislation removes uncertainty and impediments to financing and constructing solar energy projects.

我只想談談去年夏天頒布的氣候立法的影響。我們多次表示，我們相信立法提供的長期支持和穩定性消除了太陽能項目融資和建設的不確定性和障礙。

This should make it easier for customers to make the necessary commitments to build the alternative energy our country needs. Quite specifically, our mission is to make clean renewable energy simple and affordable. And the IRA's focus on ensuring access to alternative energy, particularly for more economically vulnerable communities, aligns very well with our mission.

這將使客戶更容易做出必要的承諾，以建設我們國家需要的替代能源。更具體地說，我們的使命是使清潔的可再生能源變得簡單且負擔得起。 IRA 專注於確保獲得替代能源，特別是對於經濟上更脆弱的社區，這與我們的使命非常吻合。

We remain convinced that this legislation will afford iSun and the industry genuine benefits as we move forward, even as we await finalized language and rules from the Treasury Department regarding the tax credits and other elements. While we had hoped that the rules would be finalized earlier this year, it appears that the timeline for finalization has been extended.

我們仍然相信，隨著我們的前進，這項立法將為 iSun 和行業帶來真正的好處，即使我們正在等待財政部關於稅收抵免和其他要素的最終語言和規則。雖然我們曾希望規則能在今年早些時候最終確定，但最終確定的時間表似乎已經延長。

Our entire industry is monitoring the situation closely. And once new language and rules are disseminated, we expect to evaluate them closely and share any updates as they impact our operations this year. Nonetheless, we remain convinced that more specific rules and the removal of uncertainty will increase the value of solar assets, those in development, as well as those under construction, which, in our case, will lead to a higher value of our pipeline as it spurs increased demand that we will address in 2024 and beyond.

我們整個行業都在密切關注局勢。一旦傳播了新的語言和規則，我們希望對其進行密切評估並分享任何更新，因為它們會影響我們今年的運營。儘管如此，我們仍然相信，更具體的規則和不確定性的消除將增加太陽能資產、開發中的資產以及在建資產的價值，就我們而言，這將導致我們的管道價值更高，因為它刺激我們將在 2024 年及以後解決的需求增加。

In 2023, considering all of the evolving macroeconomics factors, we expect to continue to demonstrate strong growth and attain operational profitability along with expanding margins. Thus, we are reaffirming our expectations for total revenue in fiscal year 2023 of between $95 million to $100 million, reflecting a 24% to 31% increase in total revenues from 2022, along with the gross margin expansion and full-year EBITDA profitability.

到 2023 年，考慮到所有不斷變化的宏觀經濟因素，我們預計將繼續表現出強勁的增長並實現運營盈利以及不斷擴大的利潤率。因此，我們重申我們對 2023 財年總收入的預期在 9500 萬至 1 億美元之間，這反映出總收入比 2022 年增長 24% 至 31%，同時毛利率和全年 EBITDA 盈利能力也有所擴大。

With that, I'll turn the floor over to John. After John provides his update, I'll follow up with an update on our external investments designed to expand our pipeline and supercharge our growth before we open the line for questions. John?

有了這個，我將把發言權交給約翰。在 John 提供他的更新後，我將跟進我們的外部投資的更新，這些投資旨在擴大我們的渠道並促進我們的增長，然後再開始提問。約翰？

Thank you, Jeff. We are pleased with the solid revenue we produced in the fourth quarter, as the demand we had anticipated earlier continued to be recognized. I'll provide an overview of our statement of operations, as well as provide details on our segments before turning to the balance sheet.

謝謝你，傑夫。我們對第四季度產生的穩定收入感到滿意，因為我們之前預期的需求繼續得到認可。在轉向資產負債表之前，我將概述我們的運營報表，並提供有關我們部門的詳細信息。

iSun reported fourth-quarter 2022 revenue of $25.9 million, slightly lower than 2021's strong Q4 revenue of $27 million, but sequentially $6.9 million, or 36% higher than the $19 million we produced in Q3 '22 and above Street consensus. For the full year 2022, revenue was a record $76.5 million, representing a $31.2 million, or 69% increase from 2021.

iSun 報告 2022 年第四季度的收入為 2590 萬美元，略低於 2021 年第四季度強勁的 2700 萬美元收入，但環比為 690 萬美元，比我們在 22 年第三季度及以上市場共識中產生的 1900 萬美元高出 36%。 2022 年全年收入達到創紀錄的 7650 萬美元，比 2021 年增長 3120 萬美元，即增長 69%。

Revenue growth in 2022, and the fourth quarter, particularly, was driven by the continued fulfillment of higher residential consumer demand and effective execution of our commercial and industrial backlog. We ended 2022 with 50% of our total revenues in the residential segment, up from 28% in 2021.

2022 年，尤其是第四季度的收入增長，尤其是受到更高住宅消費需求的持續滿足以及我們商業和工業積壓訂單的有效執行的推動。到 2022 年底，我們的住宅部門總收入佔總收入的 50%，高於 2021 年的 28%。

While we continue to execute against our existing backlog, we also generated new demand and added $11 million in new business during Q4. Total backlog, as Jeff noted, was $164.2 million as of December 31, 2022.

在我們繼續處理現有積壓訂單的同時，我們還產生了新需求，並在第四季度增加了 1100 萬美元的新業務。正如 Jeff 指出的那樣，截至 2022 年 12 月 31 日，總積壓訂單為 1.642 億美元。

By segment, our residential division generated $11.8 million and $38.3 million in the fourth quarter and full year 2022, respectively. Customer orders are approximately $20.5 million and are expected to be completed within four to six months.

按細分市場劃分，我們的住宅部門在 2022 年第四季度和全年分別產生了 1180 萬美元和 3830 萬美元的收入。客戶訂單約為 2050 萬美元，預計將在四到六個月內完成。

Our commercial division generated $0.4 million and $3.8 million in the fourth quarter and full year 2022, respectively, and has a contracted backlog of approximately $11.2 million expected to be completed within six to eight months.

我們的商業部門在 2022 年第四季度和全年分別產生了 40 萬美元和 380 萬美元，並且有約 1120 萬美元的合同積壓訂單，預計將在六到八個月內完成。

Our industrial division generated revenue of $13.3 million and $30.2 million in the fourth quarter and full year 2022, respectively, and has a contracted backlog of approximately $132.5 million expected to be completed within 12 to 18 months.

我們的工業部門在 2022 年第四季度和全年分別創造了 1330 萬美元和 3020 萬美元的收入，並有約 1.325 億美元的合同積壓訂單，預計將在 12 至 18 個月內完成。

Lastly, our utility and development division generated revenue of $0.4 million and $4.2 million in the fourth quarter and full year 2022, respectively. Our utility division has 1.6 gigawatts of projects currently under development, with a project expected to achieve NTP in 2023.

最後，我們的公用事業和開發部門在 2022 年第四季度和全年分別創造了 40 萬美元和 420 萬美元的收入。我們的公用事業部門目前有 1.6 吉瓦的項目正在開發中，一個項目預計將在 2023 年實現 NTP。

Gross profit in the fourth quarter was $5.4 million, compared to $5.6 million during the fourth quarter of 2021. For the full year 2022, gross profit was $16 million compared to $6.4 million in 2021.

第四季度的毛利潤為 540 萬美元，而 2021 年第四季度為 560 萬美元。2022 年全年的毛利潤為 1600 萬美元，而 2021 年為 640 萬美元。

Gross margins for the fourth quarter of this year was 21%, compared to 20.7% during the same period in 2021. And for the full year, as Jeff noted, gross margin in 2022 was 20.9%, up 680 basis points from 14.1% in 2021. While our C&I operations were still impacted by industry-wide inflationary pressures, our improved gross margin benefited from the increased diversification provided by our residential, utility, and development divisions.

今年第四季度的毛利率為 21%，而 2021 年同期為 20.7%。正如 Jeff 指出的那樣，全年的毛利率為 20.9%，較 2021 年的 14.1% 上升了 680 個基點2021 年。雖然我們的 C&I 業務仍然受到全行業通脹壓力的影響，但我們提高的毛利率得益於我們的住宅、公用事業和開發部門提供的多樣化服務。

As the synergies among our segments increase, we expect overall margin expansion to continue. As Jeff mentioned, beginning in 2023, we are combining our commercial and industrial divisions to more effectively utilize our labor and increase our purchasing power, which we anticipate over time will increase our efficiencies and contribute to expanding margins.

隨著我們各部門之間協同效應的增強，我們預計整體利潤率將繼續擴大。正如 Jeff 提到的，從 2023 年開始，我們將合併我們的商業和工業部門，以更有效地利用我們的勞動力並提高我們的購買力，我們預計隨著時間的推移，這將提高我們的效率並有助於擴大利潤率。

Operating income in the fourth quarter was a loss of $2.1 million, compared to a loss of $3.6 million in 2021's fourth quarter. For full year 2022, operating income was a loss of $18.3 million, compared to a loss of $10.6 million in 2021.

第四季度營業收入虧損 210 萬美元，而 2021 年第四季度營業收入虧損 360 萬美元。 2022 年全年營業收入虧損 1830 萬美元，而 2021 年營業收入虧損 1060 萬美元。

Non-cash depreciation and amortization expenses were $1.8 million in the fourth quarter of 2022, compared to $0.4 million in prior year period. Full-year 2022 non-cash depreciation and amortization expenses were $7.1 million, compared to $1 million in 2021.

2022 年第四季度的非現金折舊和攤銷費用為 180 萬美元，而去年同期為 40 萬美元。 2022 年全年非現金折舊和攤銷費用為 710 萬美元，而 2021 年為 100 萬美元。

iSun reported a net loss of $3.1 million, or $0.12 per share, in the fourth quarter of 2022, also better than Street consensus, compared to a net loss of $1.1 million, or $0.07 per share, in the same period in 2021. Full-year 2022 net loss was $16.6 million, or $1.18 per share, compared to a net loss of $6.2 million, or $0.67 per share, in 2021.

iSun 報告稱，2022 年第四季度淨虧損 310 萬美元，即每股虧損 0.12 美元，也好於華爾街的普遍預期，而 2021 年同期淨虧損為 110 萬美元，即每股虧損 0.07 美元。 2022 年淨虧損為 1660 萬美元，即每股虧損 1.18 美元，而 2021 年淨虧損為 620 萬美元，即每股虧損 0.67 美元。

Adjusted EBITDA for the fourth quarter of 2022 was $0.3 million or $0.02 per share, compared to adjusted EBITDA of $0.9 million, or $0.14 per share, in the same period in 2021. Full-year 2022 adjusted EBITDA was a loss of $5.6 million or $0.40 per share, compared to a loss of $3.9 million, or $0.42 per share, in 2021.

2022 年第四季度調整後 EBITDA 為 30 萬美元或每股 0.02 美元，而 2021 年同期調整後 EBITDA 為 90 萬美元或每股 0.14 美元。2022 年全年調整後 EBITDA 為虧損 560 萬美元或每股 0.40 美元每股虧損，而 2021 年虧損 390 萬美元，合每股虧損 0.42 美元。

As Jeff referenced, we have made steady progress in the integration of the entities acquired during 2021. Our initial focus was taking advantage of an overlap in services.

正如 Jeff 所提到的，我們在整合 2021 年收購的實體方面取得了穩步進展。我們最初的重點是利用服務的重疊。

During 2022, we were able to reduce administrative expenses by consolidating redundancies in the management of our employee benefits programs, our business insurance portfolios, and our treasury functions. We will continue to evaluate our finance and administrative functions to optimize our shared services across each operating segment during 2023.

2022 年，我們能夠通過整合員工福利計劃、商業保險組合和財務職能管理方面的冗餘來減少管理費用。我們將繼續評估我們的財務和行政職能，以在 2023 年優化我們在每個運營部門的共享服務。

In addition, we've successfully implemented our ERP platform across all entities, which provide us greater visibility into financial performance and allows us to utilize available information to make proactive decisions across each operating segment. We will continue to optimize our systems for each operating segment to provide our business leaders with real-time data access.

此外，我們已經在所有實體中成功實施了我們的 ERP 平台，這使我們能夠更好地了解財務績效，並使我們能夠利用可用信息在每個運營部門做出積極的決策。我們將繼續為每個運營部門優化我們的系統，為我們的業務領導者提供實時數據訪問。

As we continue to grow our team and geographic service areas, we are creating an expansion playbook that will allow us to enter new markets and territories in an efficient and effective manner.

隨著我們繼續擴大我們的團隊和地理服務區域，我們正在創建一個擴展手冊，使我們能夠以高效和有效的方式進入新的市場和領域。

Now turning to the balance sheet. Total debt decreased $2.7 million to $13.6 million as of December 31, 2022, down from $16.3 million at December 31, 2021, reflecting the repayment of the bridge loan and ongoing repayment of long-term debt offset by use of our line of credit.

現在轉向資產負債表。截至 2022 年 12 月 31 日，總債務從 2021 年 12 月 31 日的 1,630 萬美元減少 270 萬美元至 1,360 萬美元，反映了通過使用我們的信用額度償還過渡貸款和持續償還長期債務抵消。

You will recall we finalized a new debt facility of $25 million in total that closed after the end of third quarter 2022, allowing us to consolidate our debt and offering us access to working capital for operational execution as needed. We utilized the initial tranche of $12.5 million to consolidate our debt and improve cash availability, which is evident by the increase in our cash position to $5.5 million as of December 31, 2022, compared to $2.2 million at December 31, 2021. The second tranche of $12.5 million remains available to the company during the second half of 2023, although we have not yet determined whether we will utilize it at that time.

你會記得我們最終確定了一項總額為 2500 萬美元的新債務安排，該安排在 2022 年第三季度末結束後關閉，使我們能夠合併我們的債務並為我們提供運營所需的營運資金。我們利用最初的 1250 萬美元來合併我們的債務並提高現金可用性，這從我們的現金頭寸從 2021 年 12 月 31 日的 220 萬美元增加到 2022 年 12 月 31 日的 550 萬美元就可以看出。第二部分到 2023 年下半年，公司仍有 1250 萬美元可供使用，但我們尚未確定屆時是否會動用它。

We also recognize that there have been some concerns about banking relationships in the alternative energy sector following the Silicon Valley Bank closure. We maintain diversified banking relationships based upon the specific project needs, but any exposure we may have had to SVB or Signature Bank was immaterial and indirect.

我們還認識到，在矽谷銀行倒閉後，人們對替代能源領域的銀行關係存在一些擔憂。我們根據具體的項目需求維持多元化的銀行關係，但我們對 SVB 或 Signature Bank 的任何風險敞口都是無關緊要的和間接的。

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

有了這個，我會把它轉回給傑夫。

Thank you, John. Despite the industry challenges and specific delays in our key geographical areas, I am pleased with the progress that we've made in 2022. As I look to 2023 and beyond, it is very encouraging to see some of our key strategic initiatives come to fruition.

謝謝你，約翰。儘管在我們的主要地理區域面臨行業挑戰和具體延遲，但我對我們在 2022 年取得的進展感到高興。展望 2023 年及以後，看到我們的一些關鍵戰略舉措取得成果是非常令人鼓舞的.

In 2020 and 2021, we made strategic investments into companies that we believe would provide both demand for our services in an ongoing robust pipeline for projects to iSun. One such investment was made through forming a joint venture with Fusion Renewable. Through this joint venture, we provide project origination, development, and engineering services through various task orders for a fee.

在 2020 年和 2021 年，我們對公司進行了戰略投資，我們認為這些公司將在為 iSun 提供持續穩健的項目管道中提供對我們服務的需求。其中一項投資是通過與 Fusion Renewable 成立合資企業進行的。通過這家合資企業，我們通過各種收費的任務訂單提供項目發起、開發和工程服務。

As these projects move through the development process and achieve notice to proceed, iSun retains the EPC rates of these projects in an ownership stake in them as they're interconnected and put into service. We then share in the net proceeds from that operating asset.

隨著這些項目在開發過程中的推進並獲得繼續進行的通知，iSun 在這些項目相互連接並投入使用時保留了這些項目的 EPC 費率。然後，我們分享該經營資產的淨收益。

We currently have 930 megawatts in our pipeline with Fusion, and our near-term pipeline is 126 megawatts. This near-term pipeline has anticipated NTP dates in 2023 or 2024. The projects are located in the Southeastern United States, and in addition to this near-term pipeline, we also have $11.4 million in active projects with Fusion that will be constructed throughout 2023 and into 2024.

目前，我們的 Fusion 管道中有 930 兆瓦，我們的近期管道為 126 兆瓦。這條近期管道預計 NTP 日期為 2023 年或 2024 年。這些項目位於美國東南部，除了這條近期管道外，我們還有價值 1140 萬美元的 Fusion 在建項目，這些項目將在 2023 年完工並進入 2024 年。

Building on this concept, in November of 2021, we made a strategic investment into Encore Renewable Energy, a leading solar project developer. With this investment, iSun secured the rights to construct all of Encore's projects. With additional investments that Encore received, coupled with securing iSun as a partner in the EPC portion of the project, they're transitioning their business to an independent power producer. Encore will now own all of the assets they develop.

基於這一理念，我們於 2021 年 11 月對領先的太陽能項目開發商 Encore Renewable Energy 進行了戰略投資。通過這筆投資，iSun 獲得了 Encore 所有項目的建設權。憑藉 Encore 獲得的額外投資，以及確保 iSun 作為項目 EPC 部分的合作夥伴，他們正在將業務轉變為獨立的電力生產商。 Encore 現在將擁有他們開發的所有資產。

As a leading developer, Encore has historically seen a very high percentage of their projects achieving notice to proceed; so becoming an IPP was a natural transition for that and one that we were glad to take part in, both as a strategic investment, but also to secure their expanding pipeline of projects.

作為一家領先的開發商，Encore 歷來有很高比例的項目獲得通知繼續進行；因此，成為 IPP 是一個自然的轉變，我們很高興參與其中，這既是一項戰略投資，也是為了確保他們不斷擴大的項目渠道。

We're happy to report that Encore's successful growth is continuing. During a recent joint planning meeting, Encore shared with us that their current pipeline is at 2 gigawatts, of which 1.2 gigawatts is considered long-term, 500 megawatts is considered medium-term, and 300 megawatts is near-term pipeline.

我們很高興地報告，Encore 的成功增長仍在繼續。在最近的一次聯合規劃會議上，Encore 與我們分享了他們目前的管道是 2 吉瓦，其中 1.2 吉瓦被認為是長期的，500 兆瓦被認為是中期的，300 兆瓦是近期的管道。

This near-term pipeline consists of more than 60 separate projects located in eight different states, concentrated in the Northeast, with target NTP dates in late 2023 and throughout 2024. Through our established partnership, we expect to secure contracts to work on these projects, which assures us of an even more substantial pipeline than we have previously shared.

這個近期管道包括位於八個不同州的 60 多個獨立項目，集中在東北部，目標 NTP 日期為 2023 年底和整個 2024 年。通過我們建立的合作夥伴關係，我們希望獲得合同來開展這些項目，這向我們保證了比我們之前分享的更充實的管道。

I'm extremely excited about the total impact of what we've created over the last several years. Since going public, our growth and evolution as a company has been transformational. We have grown revenue over 500%. We have expanded from operating in a single state, having projects in over a dozen states. We have evolved from a C&I firm to a fully integrated renewable energy and electrification company, serving each interconnected segment of the solar industry.

我對我們在過去幾年中創造的總體影響感到非常興奮。自上市以來，我們作為一家公司的成長和發展一直在轉型。我們的收入增長了 500% 以上。我們已經從在一個州開展業務擴展到在十幾個州開展項目。我們已經從一家 C&I 公司發展成為一家完全集成的可再生能源和電氣化公司，服務於太陽能行業的每個相互關聯的部分。

While accomplishing all of that, we expanded our gross margins on an annual basis for three straight years. We have made key investments designed to create a pipeline with partners that will generate recurring opportunities and recurring revenue, but at the same time, investing in our team and systems to serve and support those expanding opportunities.

在實現所有這些的同時，我們連續三年每年都在擴大毛利率。我們進行了重大投資，旨在與合作夥伴建立管道，這將產生經常性機會和經常性收入，但與此同時，我們投資於我們的團隊和系統，以服務和支持這些不斷擴大的機會。

We have an amazing team to execute on these opportunities within this evolving and dynamic energy market. We've diversified our revenue mix between the different segments, and we are focused on executing our goals in an efficient manner to obtain operating profitability in 2023. This is supported by the positive landscape provided by the Inflation Reduction Act. We are confident the best is yet to come for iSun and its stakeholders.

我們擁有一支出色的團隊，可以在這個不斷發展和充滿活力的能源市場中抓住這些機會。我們已經使不同部門之間的收入組合多樣化，我們專注於以有效的方式執行我們的目標，以在 2023 年獲得運營盈利能力。這得到了《降低通貨膨脹法案》提供的積極前景的支持。我們相信，對 iSun 及其利益相關者來說，最好的日子還在後頭。

I'll now turn it back over to the operator to open the line for questioning. Operator?

我現在將其轉回給接線員以打開詢問線路。操作員？

(Operator Instructions) Jeff Grampp, Alliance Global Partners.

（操作員說明）Jeff Grampp，Alliance Global Partners。

Good morning, guys. Thanks for the time.

早上好傢伙。謝謝你的時間。

Hey. Good morning.

嘿。早上好。

I was curious, maybe -- morning. When we're thinking about your 2023 growth projections, do you guys see any particular end market being a disproportionate driver of that growth? Or do you have pretty good line of sight towards growth across all of the main end markets?

我很好奇，也許——早上。當我們考慮你們 2023 年的增長預測時，你們是否認為任何特定的終端市場是這種增長的不成比例的驅動力？還是您對所有主要終端市場的增長都有很好的看法？

Yeah, we've got pretty good line of sight. I mean, certainly, we spoke about the delays in some of the C&I projects that we experienced last year in some of our key markets. So that'll be a large area for growth for us. But we have a really good line of sight for the projects that we're projecting to be constructed and built this year, yes, across all the segments.

是的，我們有很好的視線。我的意思是，當然，我們談到了去年我們在一些主要市場經歷的一些 C&I 項目的延誤。所以這對我們來說將是一個很大的增長領域。但是我們對今年預計要建造和建造的項目有很好的視線，是的，在所有領域。

Got it. Thank you. On the utility side, specifically, any update or progress towards getting any of those larger projects towards NTP? Do you think that's potentially a 2023 event? Or are you guys seeing that potentially playing out, understanding that, obviously, the majority of that's out of your hands?

知道了。謝謝。在公用事業方面，具體來說，在將這些更大的項目中的任何一個轉向 NTP 方面有任何更新或進展嗎？你認為這可能是 2023 年的事件嗎？或者你們是否看到這可能會發揮作用，明白，很明顯，其中大部分都不在你的手中？

Yeah, we've got some near-term projects that are close. We're calling them maybe potential 2023 NTP or into 2024. In our projections, we haven't really -- we're taking a more conservative approach. We're assuming that that won't be a 2023 project where we'll have revenue on. So it is possible to come into 2023, but these projects of that size take a little bit longer to move through the entire process.

是的，我們有一些即將完成的近期項目。我們稱它們可能是潛在的 2023 NTP 或到 2024 年。在我們的預測中，我們並沒有真正——我們正在採取更保守的方法。我們假設這不會是我們將有收入的 2023 年項目。所以有可能進入 2023 年，但這些規模如此大的項目需要更長的時間才能完成整個過程。

Understood, of course. If I can sneak one more, and I think in the prepared remarks, you referenced an expansion playbook to expand into new markets. Can you maybe peel the onion back on that a little bit more? What does that entail? And do you guys have any markets currently identified for expansion in '23?

當然明白。如果我能再偷偷摸摸的話，我想在準備好的評論中，你參考了一本擴展手冊來擴展到新市場。你能不能再把洋蔥剝開一點？這意味著什麼？你們目前有沒有確定要在 23 年擴張的市場？

Hi there, Jeff. This is John. I'll jump in for that one. So when we're talking about building out a playbook, what we're really doing is building out our processes and our procedures that would allow us to either enter into a new market effectively or acquire a opportunistic company and bring our systems and our way of doing business into that organization to help spur that growth.

你好，傑夫。這是約翰。我會加入那個。因此，當我們談論構建劇本時，我們真正在做的是構建我們的流程和程序，使我們能夠有效地進入一個新市場或收購一家機會主義公司，並帶來我們的系統和我們的方式與該組織開展業務以幫助刺激增長。

At this point, we do not have any markets specifically targeted, but as those opportunities do come about, we now have the ability to move in very efficiently and effectively based off of the work and the playbook that we're building out.

在這一點上，我們沒有任何具體目標市場，但隨著這些機會的出現，我們現在有能力根據我們正在構建的工作和劇本非常有效地進入。

Understood. That's really helpful. Appreciate the time, guys.

明白了。這真的很有幫助。珍惜時間，伙計們。

Thank you.

謝謝。

Thank you.

謝謝。

Noel Parks, Tuohy Brothers.

諾埃爾·帕克斯，托希兄弟。

Good morning.

早上好。

Morning, Noel.

早上好，諾埃爾。

I just had a few questions. You mentioned that among your recent initiatives that some of them were expected to improve utilization on the labor front. I was wondering if you could talk a little bit about that, just what your utilization trends were like over the course of the year and what you're seeing going forward.

我只是有幾個問題。你提到，在你最近的舉措中，其中一些舉措有望提高勞動力方面的利用率。我想知道你是否可以談談這一點，你在這一年中的利用率趨勢是怎樣的，以及你對未來的展望。

Hi there, Noel. So what we're really talking about there is the combination of our commercial and our industrial teams. When we went through 2021 and acquired a few entities, we had separate commercial teams at each of those operating companies. So during 2022, we reassessed. And in 2023, we pushed the initiative to consolidate those teams into one operating segment.

你好，諾埃爾。所以我們真正談論的是我們的商業和工業團隊的結合。當我們經歷 2021 年並收購了一些實體時，我們在每個運營公司都有獨立的商業團隊。因此，在 2022 年期間，我們重新評估了。在 2023 年，我們推動了將這些團隊整合到一個運營部門的舉措。

What that does is that really allows us to flex that labor based off of project volume and labor needs, as opposed to having that labor underutilized in an operating segment if the project volume wasn't there. So we do feel very strongly that that will enhance our margin moving forward and really allow us to better utilize and flex that labor pool, which is the core of the business in the installation work that they're doing.

這樣做確實使我們能夠根據項目量和勞動力需求來調整勞動力，而不是在沒有項目量的情況下在運營部門中未充分利用勞動力。因此，我們確實非常強烈地認為，這將提高我們未來的利潤率，並真正讓我們能夠更好地利用和靈活利用勞動力資源，這是他們正在進行的安裝工作的核心業務。

Great. Thanks. And you also mentioned that the residential business generates a lot of referral business and how that, in turn, helps the customer acquisition cost. Is that something that is always from the case or you've seen that more recently?

偉大的。謝謝。你還提到住宅業務產生了大量的推薦業務，這反過來又如何幫助降低客戶獲取成本。那是總是來自案件的東西還是你最近看到的？

Noel, that's always been the case. We've -- one of the things we loved about SunCommon when we made that acquisition was the way they treat their customer, which generated a lot of referrals and a low customer acquisition cost. And so we continue to see that trend with them, both in the Vermont and the New York markets where they operate.

諾埃爾，情況一直如此。我們已經 - 當我們進行收購時，我們喜歡 SunCommon 的一件事是他們對待客戶的方式，這產生了大量的推薦和較低的客戶獲取成本。因此，我們繼續在他們經營的佛蒙特州和紐約市場看到這種趨勢。

Got you. And I guess turning back for a second to the commercial and industrial business, with the divisions being combined, as a practical matter, are there really just not particularly meaningful differences between the two business lines at this point?

明白了我想再回到商業和工業業務，將這些部門合併在一起，作為一個實際問題，在這一點上，這兩個業務線之間真的沒有特別有意義的區別嗎？

I totally understand what you're saying about combining the labor forces. You can, I guess, move people across what used to be the two divisions. But going forward, maybe thinking about from a sales and marketing perspective, essentially, do they comfortably fit as a single strategy in terms of how you approach customers in each of those?

我完全理解你所說的合併勞動力的意思。我想，你可以讓人們跨越過去的兩個部門。但展望未來，也許從銷售和營銷的角度考慮，從本質上講，就您如何在每一個方面接近客戶而言，它們是否適合作為單一策略？

Yes. So what we've done is, by combining the two commercial themes into one C&I division is we've reduced redundancies and allows us to flex labor through what would've been various organizations throughout one organization to create improved efficiencies and then align the sales process throughout the company as well.

是的。因此，我們所做的是，通過將兩個商業主題合併為一個 C&I 部門，我們減少了冗餘，並允許我們通過一個組織中的多個組織來靈活安排勞動力，以提高效率，然後調整銷售整個公司的流程也是如此。

So that -- we're really moving from multiple companies to one entity solution here. And so we want to align productivity, align sales with the operations and engineering teams, and create efficiency throughout the organization.

所以——我們真的從多家公司轉向一個實體解決方案。因此，我們希望調整生產力，使銷售與運營和工程團隊保持一致，並在整個組織中創造效率。

Great. And would you say that the sales process and sales cycles for them are essentially the same at this point between an industrial site as a potential customer and commercial location?

偉大的。你會說他們的銷售流程和銷售週期在作為潛在客戶的工業場所和商業場所之間在這一點上基本相同嗎？

Yeah. The residential is the shortest, commercial is a little bit longer, and then industrial to utility, I mean, really, by the size of the project. Typically, the projects are longer to get through the process.

是的。住宅最短，商業稍長，然後是工業到公用事業，我的意思是，真的，根據項目的規模。通常，項目需要更長的時間來完成這個過程。

But really, our focus is to accelerate the transition to solar energy. And with that, by combining these teams, we believe we'll move projects through the process quicker, sales through design and engineering, and into operations to be installed and shorten the time period from sale to installation.

但實際上，我們的重點是加速向太陽能的過渡。因此，通過合併這些團隊，我們相信我們將通過流程更快地推進項目，通過設計和工程進行銷售，並進入待安裝的運營階段，並縮短從銷售到安裝的時間。

Great. Thanks for the extra detail. That's all for me.

偉大的。感謝您提供額外的詳細信息。這就是我的全部。

You're welcome. Thank you for joining us.

不客氣。感謝您加入我們。

(Operator Instructions) Okay. As there are no further questions in queue, I will hand the call back to Jeff Peck for any closing comments.

（操作員說明）好的。由於隊列中沒有其他問題，我會將電話轉回給 Jeff Peck 以徵求任何結束意見。

Thank you, everybody, for joining the call today. We appreciate your time to allow us to share our progress and performance. If there are any further questions, please feel free to reach out to ir@isunenergy.com. Thank you, and have a good day.

謝謝大家今天加入電話會議。感謝您花時間讓我們分享我們的進步和表現。如果有任何其他問題，請隨時聯繫 ir@isunenergy.com。謝謝你，有一個美好的一天。

Thank you. This concludes today's conference, and you may disconnect your lines at this time. We thank you for your participation.

謝謝。今天的會議到此結束，此時您可以斷開您的線路。我們感謝您的參與。