iSun Inc (ISUN) 2023 Q2 法說會逐字稿

Greetings, and welcome to the iSun Energy second-quarter 2023 earnings conference call. (Operator Instructions) Please note this conference is being recorded.

您好，歡迎參加 iSun Energy 2023 年第二季財報電話會議。 （操作員說明）請注意，本次會議正在錄製中。

I will now turn the conference over to your host, Mary Conway. Ma'am, you may begin.

現在我將把會議交給主持人瑪麗康威。女士，您可以開始了。

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 second quarter of 2023.

謝謝您，接線員，早安。我們很高興歡迎您參加 iSun 的電話會議，我們將在會議上討論 2023 年第二季的財務和營運表現。

Jeffrey Peck, Chairman and Chief Executive Officer, will provide an update on our operating performance in the quarter along with our outlook for 2023. John Sullivan, Chief Financial Officer, will provide an overview of the second-quarter 2023 financial results. After our prepared remarks today, we will open the lines to address any questions.

董事長兼執行長 Jeffrey Peck 將介紹我們本季的經營業績最新情況以及2023 年的展望。財務長約翰沙利文(John Sullivan) 將概述2023 年第二季度的財務業績。在我們今天準備好的發言之後，我們將開放線路來回答任何問題。

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

提醒一下，今天早上發布的收益報告可以在 iSun 的投資者網站 www.isunenergy.com 上找到，其中包括財務揭露和非 GAAP 財務指標的調節表。

Any comments that we make on today's call may include forward-looking statements that refer to management's expectations or future predictions. These statements are made as of today, and management undertakes no obligation to update these forward-looking statements in the future. Such statements are subject to risks and uncertainties that could cause actual results to differ from management's expectations.

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。這些陳述是截至今天作出的，管理階層不承擔將來更新這些前瞻性陳述的義務。此類陳述存在風險和不確定性，可能導致實際結果與管理階層的預期不同。

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

現在，我將把它交給我們的執行長 Jeff Peck。傑夫？

Thank you. Good morning, everyone, and thanks for joining us today. I'm pleased to share an update on iSun's progress in the second quarter of 2023 and review our plans for the remainder of this year.

謝謝。大家早安，感謝您今天加入我們。我很高興與大家分享 iSun 在 2023 年第二季的最新進展，並回顧我們今年剩餘時間的計劃。

We are pleased with the strong performance our team has generated in the second quarter of 2023. It was a terrific quarter. We had a robust beat on the top line, with revenues up more than 50% year over year, well above the Street's consensus. And importantly, we were doing precisely what we said we would do: scale the business, reduce our losses as we serve our customers, and win new business.

我們對我們的團隊在 2023 年第二季度取得的強勁表現感到滿意。這是一個了不起的季度。我們的營收表現強勁，營收年增超過 50%，遠高於華爾街的共識。重要的是，我們正在按照我們所說的去做：擴大業務，在服務客戶時減少損失，並贏得新業務。

Our commercial and industrial group is driving excellent results, and our residential [group's uncommon] continues to see high customer satisfaction and referrals despite a short-term slowdown in residential demand. And we are seeing continued opportunities in the EV infrastructure segment, and our origination team is helping to ensure that we continue to build backlog to sustain that growth.

我們的商業和工業集團正在取得優異的業績，儘管住宅需求短期放緩，但我們的住宅[集團不尋常]仍然保持著較高的客戶滿意度和推薦量。我們在電動車基礎設施領域看到了持續的機會，我們的創始團隊正在幫助確保我們繼續積壓訂單以維持這種成長。

Our success in winning significant contracts in solar and EV infrastructure, as well as more residential business despite some of the headwinds in that segment, provides us with heightened confidence in our ability to meet the annual financial targets that we shared earlier, and we are affirming those today both in revenue and profitability. We remain dedicated to executing on our strategic plan to achieve our mission and help accelerate the adoption of solar energy.

儘管該領域存在一些不利因素，但我們仍成功贏得了太陽能和電動汽車基礎設施以及更多住宅業務的重要合同，這使我們對實現我們之前分享的年度財務目標的能力更有信心，我們確認今天的收入和盈利能力。我們仍然致力於執行我們的戰略計劃，以實現我們的使命並幫助加速太陽能的採用。

Today, I want to touch on a few points that illustrate what makes iSun different in the solar energy industry and what has been driving our recent success. I also want to share some thoughts on trends we are seeing and how we believe we are well-positioned for continued growth as we continue to scale our business.

今天，我想談幾點，以說明 iSun 在太陽能產業的與眾不同以及推動我們最近成功的因素。我也想分享一些關於我們所看到的趨勢的想法，以及我們如何相信隨著我們繼續擴大業務規模，我們已經做好了持續成長的準備。

It starts with our platform approach encompassing the full life cycle of providing solar energy solutions from origination and development to construction and management across industry segments. We maintain that this approach is a competitive differentiating advantage that positions us for long-term sustainable growth. We see the proof of this strategy and execution in the meaningful year-over-year revenue growth we have generated in the first half of this year, increasing revenues more than 34% compared to the first half of 2022.

它始於我們的平台方法，涵蓋提供太陽能解決方案的整個生命週期，從起源和開發到跨行業的建設和管理。我們認為，這種方法是一種差異化競爭優勢，使我們能夠實現長期永續成長。我們在今年上半年實現的同比收入顯著增長中看到了這一策略和執行的證明，與 2022 年上半年相比，收入增長了 34% 以上。

Quickly reviewing our second-quarter results, revenue increased by 51.8% to $25 million. Gross margins rose by 90 basis points to 23.7%, up from 22.8% in 2022's second quarter, as our efficiency efforts have enabled more of the top line to drop to the bottom line.

快速回顧我們第二季的業績，營收成長了 51.8%，達到 2,500 萬美元。毛利率從 2022 年第二季的 22.8% 上升 90 個基點，達到 23.7%，因為我們在提高效率方面所做的努力使更多的收入下降到了利潤。

In the second quarter, 37% of our revenue came from the residential segment, where gross margin tends to be higher. We remain confident that as we scale and drive synergies and efficiencies throughout the organization, we will continue to expand our margins.

第二季度，我們37%的營收來自住宅領域，該領域的毛利率往往較高。我們仍然相信，隨著我們擴大規模並推動整個組織的協同效應和效率，我們將繼續擴大利潤。

As of June 30, 2023, our total backlog was $161.8 million, and our pipeline remained at 1.6 gigawatts of projects as of the end of the second quarter of 2023. The size of the backlog and pipeline underscore the increased customer demand we are experiencing, as well as the effectiveness of our efforts to originate more projects and expand to more states, all part of our ongoing strategic initiatives.

截至2023 年6 月30 日，我們的積壓訂單總額為1.618 億美元，截至2023 年第二季末，我們的管道項目仍保持在1.6 吉瓦。積壓訂單和管道項目的規模凸顯了我們正在經歷的客戶需求的增加，以及我們發起更多專案並將其擴展到更多州的努力的有效性，這些都是我們正在進行的策略舉措的一部分。

Our success also reflects a high level of customer satisfaction, specifically in the residential segment which generates strong referrals, creating a lower customer acquisition cost. Similarly, we see a referral impact in our C&I group as developers elect to work with us again and again on their projects because they see how our involvement keeps them on track reducing unnecessary delays and, of course, costs.

我們的成功也體現了高水準的客戶滿意度，特別是在住宅領域，這產生了強大的推薦，從而降低了客戶獲取成本。同樣，我們在C&I 團隊中看到了推薦影響，因為開發人員選擇一次又一次與我們合作開展他們的項目，因為他們看到我們的參與如何讓他們走上正軌，減少不必要的延誤，當然還有成本。

Let me share a few words about the performance of our three divisions in the past quarter. The residential division did well despite the backdrop of a more sluggish residential segment across the industry, reflecting the impact of higher interest rates on home improvement loans. We continue to build more business and expect a heavy period of installation in the coming quarters as we move into continuous states beyond New England and New York.

讓我簡單介紹一下我們三個部門在過去一個季度的表現。儘管整個行業的住宅部門更加低迷，但住宅部門表現良好，反映出利率上升對房屋裝修貸款的影響。我們將繼續建立更多業務，並預計隨著我們進入新英格蘭和紐約以外的連續州，未來幾季將出現大量安裝。

The commercial and industrial division, which we have combined as of the beginning of 2023, is generating very strong results this year, more than 62% of our revenue in the second quarter. Our origination team, which is based in our utility segment, is assisting in this effort, and this focuses on initiating projects that are then turned over to the C&I division to execute.

我們於 2023 年初合併的商業和工業部門今年取得了非常強勁的業績，佔第二季營收的 62% 以上。我們的發起團隊位於公用事業部門，正在協助這項工作，重點是啟動項目，然後將項目移交給 C&I 部門執行。

We are continuing to work through our backlog and adding more business to the backlog through contract wins. Based on the results we've seen thus far, including enhancing our labor utilization, we are quite pleased with the decision to combine the commercial and industrial segments.

我們正在繼續處理積壓訂單，並透過贏得合約為積壓訂單增加更多業務。根據我們迄今為止所看到的結果，包括提高勞動力利用率，我們對合併商業和工業部門的決定感到非常滿意。

The utility and development division continues to face delays; once again, something we've seen across the industry, although we continue to increase the backlog the group is addressing. These project delays around expected implementation depressed revenues generated in the second quarter.

公用事業和開發部門繼續面臨延誤；儘管我們繼續增加該小組正在解決的積壓工作，但我們在整個行業中再次看到了這種情況。這些項目在預期實施方面的延誤降低了第二季的收入。

But we continue to believe the projects will move forward beginning this year, enabling the resulting revenues to be recognized later on this year or early in 2024. The development and engineering team has provided invaluable support to our residential and C&I divisions as we continue to integrate and drive operating efficiencies throughout the organization.

但我們仍然相信這些項目將從今年開始推進，從而使由此產生的收入能夠在今年晚些時候或2024 年初得到確認。隨著我們繼續整合，開發和工程團隊為我們的住宅和工商業部門提供了寶貴的支援並提高整個組織的營運效率。

Our teams bring proven expertise and knowledge which is more valuable than these volatile times than ever before. This creates a strong customer relationship, leading the contract towards across our business. In the second quarter, we added $8 million in new business.

我們的團隊帶來了經過驗證的專業知識和知識，這比以往任何時候都更有價值。這建立了牢固的客戶關係，使合約適用於我們的整個業務。第二季度，我們新增了 800 萬美元的新業務。

In terms of the solar landscape, we remain optimistic and enthusiastic. We've seen strong evidence that the C&I segment is scaling nicely, responding effectively to increased customer demand with expanded teams while ensuring that our labor utilization is optimized. That customer demand is not slowing, and we are finding it all over the country.

就太陽能前景而言，我們仍然保持樂觀和熱情。我們已經看到強有力的證據表明，工商業部門正在良好地擴展，透過擴大的團隊有效地回應不斷增長的客戶需求，同時確保我們的勞動力利用率得到優化。客戶需求並沒有放緩，我們在全國各地都發現了這一點。

The residential segment has been more sluggish as I described, but the back half of the year is typically more intensive and more intensive one for residential installed in our markets. And we have ample backlog to execute in this segment.

正如我所描述的，住宅市場更加低迷，但下半年我們市場上的住宅安裝通常會更加密集。我們在這領域有充足的待辦事項需要執行。

Our origination team is producing more opportunities that will eventually be executed largely by our C&I segment, and the utility and development division continue to push projects forward and provide valuable services throughout the organization.

我們的發起團隊正在創造更多機會，最終將主要由我們的 C&I 部門執行，而公用事業和開發部門將繼續推動專案向前發展，並在整個組織內提供有價值的服務。

In sum, we remain convinced that the IRA legislation passed last year will afford iSun and the industry genuine benefits, even as we wait to finalize language and rules from the treasury department regarding tax credits and other elements. We do expect 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 valuation of our pipeline as it spurs increased demand that we will address in 2024 and beyond.

總而言之，我們仍然相信，去年通過的 IRA 立法將為 iSun 和整個行業帶來真正的好處，即使我們正在等待財政部敲定有關稅收抵免和其他要素的語言和規則。我們確實期望有更具體的規則，並且消除不確定性將增加太陽能資產的價值，包括正在開發的以及正在開發的太陽能資產，就我們而言，這將導致我們管道的估值更高，因為它刺激了我們對太陽能的需求增加。將在 2024 年及以後解決。

In 2023, considering all the evolving macroeconomic factors, we expect to continue to demonstrate strong growth and attain operating profitability along with expanded margins. Thus, we are affirming our expectations for total revenues in fiscal year 2023 of between $95 million and $100 million, reflecting a 24% to 31% increase over total revenues in 2022, along with gross margin expansion on an annual basis and full-year EBITDA profitability.

到 2023 年，考慮到所有不斷變化的宏觀經濟因素，我們預計將繼續展現強勁成長並實現營運獲利和利潤率擴大。因此，我們確認 2023 財年總營收將在 9,500 萬至 1 億美元之間，較 2022 年總營收成長 24% 至 31%，同時毛利率逐年成長，全年 EBITDA 也將成長獲利能力。

With that, I'll now turn the floor over to John.

現在我將把發言權交給約翰。

Thank you, Jeff. We are pleased with the robust revenue growth we produced in the second quarter as we continue to execute on our backlog. 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。隨著我們繼續執行積壓訂單，我們對第二季度實現的強勁收入成長感到滿意。在討論資產負債表之前，我將概述我們的營運報表，並提供有關我們部門的詳細資訊。

iSun reported second-quarter 2023 revenue of $25 million, up 51.8% from Q2 2022 revenue of $16.5 million. For the first six months of 2023, revenue was $42.4 million, representing a $10.8 million or 34.2% increase over the same period in 2022. Revenue growth in the quarter in first half was driven by effective execution of our commercial and industrial backlog, as well as fulfillment of our residential consumer demand.

iSun 公佈 2023 年第二季營收為 2,500 萬美元，較 2022 年第二季營收 1,650 萬美元成長 51.8%。 2023 年之前 6 個月，營收為 4,240 萬美元，較 2022 年同期成長 1,080 萬美元，成長 34.2%。上半季營收的成長得益於我們商業和工業積壓訂單的有效執行以滿足我們的住宅消費需求。

As Jeff mentioned, in the second quarter of 2023, 37% of our total revenues were in the residential segment, which tends to carry the highest margin. While we continue to execute against our existing backlog, we also generated new demand and added $8 million in new business during Q2 for a total of $40 million added so far in 2023, effectively replenishing the revenue earned year to date. Total backlog was $161.8 million as of June 30, 2023.

正如 Jeff 所提到的，2023 年第二季度，我們總收入的 37% 來自住宅領域，該領域的利潤率往往最高。在我們繼續處理現有積壓訂單的同時，我們也產生了新需求，並在第二季度增加了800 萬美元的新業務，到2023 年迄今總共增加了4000 萬美元，有效補充了今年迄今獲得的收入。截至 2023 年 6 月 30 日，積壓訂單總額為 1.618 億美元。

By segment, our residential division generated revenue of $9.3 million and $16.2 million in the second quarter and year to date, respectively. Customer orders of approximately $13.1 million are expected to be completed within three to five months.

按細分市場劃分，我們的住宅部門在第二季和今年迄今分別創造了 930 萬美元和 1,620 萬美元的收入。約 1,310 萬美元的客戶訂單預計將在三到五個月內完成。

Our commercial and industrial divisions, which were consolidated as of January 1, 2023, generated revenue of $15.6 million and $25.9 million in the second quarter and year to date, respectively. The division has a contracted backlog of approximately $140.7 million expected to be completed within 10 to 18 months.

我們的商業和工業部門於 2023 年 1 月 1 日合併，第二季和年初至今分別創造了 1,560 萬美元和 2,590 萬美元的收入。該部門的合約積壓金額約為 1.407 億美元，預計將在 10 至 18 個月內完成。

Our utility and development division generated revenue of $0.1 million and $0.3 million in the second quarter and year to date, respectively. The utility division has a contracted backlog of approximately $8 million and 1.6 gigawatts of projects currently under development expected to achieve NTP in 2023 and early 2024.

我們的公用事業和開發部門在第二季和今年迄今分別創造了 10 萬美元和 30 萬美元的收入。公用事業部門目前正在開發合約積壓約 800 萬美元和 1.6 吉瓦的項目，預計將於 2023 年和 2024 年初實現 NTP。

Gross profit in the second quarter was $5.9 million, up 58.2% from $3.8 million in the second quarter of 2022. Gross margin for the quarter was 23.7%, up 90 basis points from 22.8% in the same period in 2022.

第二季毛利為 590 萬美元，比 2022 年第二季的 380 萬美元成長 58.2%。該季度毛利率為 23.7%，比 2022 年同期的 22.8% 成長 90 個基點。

Our C&I segment accounted for approximately 62% of the quarter's revenue. Margin improvement was a result of efficiencies generated through the consolidation of our team, leading to more efficient utilization of our labor.

我們的 C&I 部門約佔本季營收的 62%。利潤率的提高是我們團隊整合所產生的效率的結果，從而更有效地利用了我們的勞動力。

Year-to-date gross profit was $9.5 million, up 37%, compared to $6.9 million during the same period in 2022. Year-to-date gross margin was 22.4%, up 50 basis points, compared to 21.9% during the same period in 2022. Margin is expected to remain strong in the second half of 2023 as we continue to scale operations, as well as an increase in residential implementations. As part of the strategy to expand gross margin each year, we will continue to drive synergies as our segments grow.

年初至今的毛利為 950 萬美元，成長 37%，而 2022 年同期為 690 萬美元。年初至今的毛利率為 22.4%，成長 50 個基點，而 2022 年同期為 21.9% 2022 年。隨著我們持續擴大業務規模以及住宅實施的增加，預計2023 年下半年利潤率將保持強勁。作為每年擴大毛利率策略的一部分，我們將隨著業務部門的成長繼續推動協同效應。

The operating loss in the second quarter was $1.8 million, a 68.8% improvement compared to a loss of $5.6 million in 2022's second quarter, primarily reflecting the higher revenues and lower operating expenses as part of the company's focus on efficiency. Year-to-date operating income was a loss of $4.4 million, a 61.1% reduction compared to a loss of $11.3 million during the same period in 2022.

第二季的營運虧損為 180 萬美元，比 2022 年第二季的虧損 560 萬美元減少了 68.8%，主要反映了公司注重效率的一部分，收入增加和營運費用降低。年初至今營業收入虧損 440 萬美元，較 2022 年同期虧損 1,130 萬美元減少 61.1%。

Non-cash depreciation and amortization expenses were $0.8 million in the second quarter of 2023 compared to $1.8 million in the prior year period. Year-to-date non-cash depreciation and amortization expenses were $1.5 million compared to $3.5 million in the same period in 2022.

2023 年第二季的非現金折舊攤銷費用為 80 萬美元，去年同期為 180 萬美元。年初至今的非現金折舊和攤提費用為 150 萬美元，而 2022 年同期為 350 萬美元。

iSun reported a net loss of $2.5 million, or $0.13 per share, in the second quarter of 2023, compared to a net loss of $5.7 million, or $0.40 per share, in the same period in 2022. Year-to-date net loss was $5.5 million, or $0.31 per share, compared to a net loss of $8.6 million, or $0.64 per share, in the same period in 2022.

iSun 報告 2023 年第二季淨虧損 250 萬美元，即每股 0.13 美元，而 2022 年同期淨虧損 570 萬美元，即每股 0.40 美元。年初至今的淨虧損為淨虧損550 萬美元，即每股0.31 美元，而2022 年同期淨虧損為860 萬美元，即每股0.64 美元。

Adjusted EBITDA for the second quarter of 2023 was a loss of $0.3 million, or $0.01 per share, compared to a loss of $3.2 million, or $0.23 per share, in 2022's second quarter. Year-to-date adjusted EBITDA was a loss of $1.8 million, or $0.10 per share, compared to $3.4 million, or $0.25 per share, in the same period in 2022.

2023 年第二季調整後 EBITDA 虧損 30 萬美元，即每股虧損 0.01 美元，而 2022 年第二季虧損 320 萬美元，即每股虧損 0.23 美元。年初至今，調整後 EBITDA 虧損 180 萬美元，即每股 0.10 美元，而 2022 年同期為 340 萬美元，即每股 0.25 美元。

We are continuing to focus our efforts on operational integration and creating systems and processes that allow for efficient and effective growth. The second quarter of 2023, we reduced operating expenses by approximately $1.7 million, or 18%, from the same quarter of 2022. So far, in 2023, we have reduced total operating expenses, even while our revenues have increased more than 34%, by $4.7 million or 24%. We expect these positive trends to be sustained throughout the rest of 2023.

我們將繼續專注於營運整合以及創建可實現高效成長的系統和流程。 2023 年第二季度，我們的營運費用比2022 年同季度減少了約170 萬美元，即18%。到目前為止，2023 年，我們已經減少了總營運費用，儘管我們的收入增長了34% 以上，增加 470 萬美元，即 24%。我們預計這些正面趨勢將在 2023 年剩餘時間內持續下去。

Now turning to the balance sheet. Total debt decreased $2.3 million to $10.7 million as of June 30, 2023, down from $13 million at March 31, 2023, reflecting the ongoing repayment of our long-term debt.

現在轉向資產負債表。截至 2023 年 6 月 30 日，債務總額從 2023 年 3 月 31 日的 1,300 萬美元減少了 230 萬美元，降至 1,070 萬美元，反映出我們正在償還長期債務。

Our cash position of $6.1 million, as of June 30, 2023, improved from $5.5 million as of December 31, 2022, through higher revenues and diligent collections, although it was slightly higher at $7.2 million as of March 31, 2023, with a difference reflecting timing of vendor deposits required for project execution.

截至2023 年6 月30 日，我們的現金部位為610 萬美元，較截至2022 年12 月31 日的550 萬美元有所改善，儘管截至2023 年3 月31 日現金頭寸略高至720 萬美元，但由於收入增加和勤勉收款，現金部位略有增加，為720 萬美元。反映專案執行所需的供應商押金的時間。

We are aware of the downward pressure on our valuation that exists because of our outstanding convertible note. Our strong operating performance during the first half of the year allows us to accelerate our efforts to refinance our debt facilities. We are actively engaged in conversations to provide an asset-based line of credit, as well as a new long-term non-convertible note.

我們意識到，由於我們未償還的可轉換票據，我們的估值有下行壓力。我們上半年強勁的經營業績使我們能夠加快債務融資再融資的步伐。我們正在積極參與對話，以提供基於資產的信貸額度以及新的長期不可轉換票據。

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

這樣，我會將其轉回給傑夫。

Thank you, John. Let me reiterate how pleased I am with our performance, especially in the second quarter, where we well exceeded the Street consensus.

謝謝你，約翰。讓我重申我對我們的表現感到非常滿意，特別是在第二季度，我們遠遠超越了華爾街的共識。

Our diversification strategy was on full display as the growth in C&I offset the national downward trends in the residential segment. The level of growth we are producing, as well as our continuing ability to win new contract awards, ensures that we will remain well-positioned for success as we move through 2023.

隨著工商業的成長抵消了全國住宅市場的下降趨勢，我們的多元化策略得到了充分體現。我們正在實現的成長水平，以及我們持續贏得新合約的能力，確保我們在 2023 年保持成功的有利地位。

Our team is cohesive and focused on what they need to do to execute on the many different opportunities we have created within this continually evolving and dynamic energy market. We have diversified our revenue mix across different segments, and we are executing on our strategy efficiently as we pursue our target of obtaining operating profitability in 2023, supported by the investments we have made to create recurring revenue opportunities, as well as the positive impacts from the Inflation Reduction Act. We remain confident that the best is yet to come for iSun and our stakeholders.

我們的團隊富有凝聚力，專注於他們需要做的事情，以執行我們在這個不斷發展和動態的能源市場中創造的許多不同的機會。我們在不同領域實現了收入組合多元化，並且在我們為創造經常性收入機會而進行的投資以及創造經常性收入機會的積極影響的支持下，我們正在有效地執行我們的戰略，以實現在2023年實現營運盈利的目標。減少通貨膨脹法案。我們仍然相信，對於 iSun 和我們的利害關係人來說，最好的時刻尚未到來。

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

我現在將把它轉回接線員以打開提問線路。操作員？

(Operator Instructions) Jeff Grampp, Alliance Global Partners.

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

Hi. I want to start first on the gross margin front. It's really interesting to see such a strong result there, especially given the strength in C&I relative to residential. So curious if you guys could -- what would you attribute that margin expansion to if there's a couple of main contributors there?

你好。我想先從毛利率開始。看到如此強勁的結果確實很有趣，特別是考慮到工商業相對於住宅的實力。非常好奇，如果你們能夠——如果有幾個主要貢獻者，您會將利潤成長歸因於什麼？

And is it fair to expect margin expansion further in the back half as residential accelerates? Or how are you guys thinking about gross margin trajectory for the remainder of the year relative to Q2 levels?

隨著住宅市場的加速發展，預計下半年利潤率將進一步擴大是否公平？或者你們如何看待今年剩餘時間相對於第二季水準的毛利率軌跡？

We made a concerted effort to consolidate our commercial operations. We had a real big focus on the first half of the year and making sure that we did that because, number one, we saw the industry had wins, and we're concerned and we wanted to make sure that our labor utilization was high.

我們齊心協力鞏固我們的商業運作。我們非常關註今年上半年並確保我們做到了這一點，因為第一，我們看到該行業取得了勝利，我們很擔心，我們希望確保我們的勞動力利用率很高。

As we move forward through the year, and even the second half has always been busy on the residential solar install side, we expect to see the revenue mix change a little bit more towards where it was last year in the second half. High gross margins on the residential side, so we expect we could see further margin enhancement there. Additionally, we're always -- we continue to build efficiencies throughout the organizations and consolidate operations where we can to lower our overall G&A expenses.

隨著今年的進展，甚至下半年住宅太陽能安裝方面也一直很繁忙，我們預計下半年收入結構將朝著去年的水平發生更多變化。住宅方面的毛利率較高，因此我們預計該領域的利潤率可能會進一步提高。此外，我們始終—繼續提高整個組織的效率，並整合運營，以降低整體管理費用。

Great. Thank you. And my follow up is just -- wanted to get a temperature check on your thoughts on the residential market. So obviously, C&I had a great quarter, which I think is a nice validation of your model of really having exposure across the solar market. But resi still grew year over year, a little bit slower, obviously.

偉大的。謝謝。我的後續行動只是想了解您對住宅市場的看法。顯然，C&I 的季度業績表現出色，我認為這很好地驗證了您的模型是否真正涉足太陽能市場。但雷西仍逐年成長，顯然速度稍慢。

What's the visibility in that market for continued growth in the second half and beyond? How do you guys really view the trajectory for iSun's residential business?

該市場下半年及以後持續成長的前景如何？你們如何看待iSun住宅業務的發展軌跡？

Yeah. We are pleased that our strategy of diversifying among the sectors proved itself out here a couple of years in a row when we've seen -- last year, we saw some softness and slowdowns in the C&I sector. And this year, we'd anticipated some of that; we're seeing some of that in the residential side. So we're happy with that strategy.

是的。我們很高興我們的行業多元化策略連續幾年證明了自己，去年我們看到工商業行業出現了一些疲軟和放緩。今年，我們已經預料到了其中的一些情況；我們在住宅方面看到了一些這樣的情況。所以我們對這個策略很滿意。

We do believe it's an evolving energy market, that this transition to EVs is going to increase demand as we move forward in the residential market. We're pleased with what the team has done. We've consolidated and minimized some of our offerings to become more efficient. We're increasing our throughput on the residential side. So we're pleased with that.

我們確實相信這是一個不斷發展的能源市場，隨著我們在住宅市場的發展，向電動車的過渡將增加需求。我們對團隊所做的事情感到滿意。我們整合並最小化了一些產品，以提高效率。我們正在增加住宅方面的吞吐量。所以我們對此感到滿意。

We're expecting a -- we certainly have the backlog for a $13.1 million backlog in the residential sector, and so we expect a strong second half. And we're also looking at leasing opportunities to help moderate some of the headwinds.

我們預計住宅領域的積壓金額為 1,310 萬美元，因此我們預計下半年會表現強勁。我們也正在尋找租賃機會來幫助緩解一些不利因素。

Got it. Understood. Appreciate the thoughts, guys.

知道了。明白了。欣賞這些想法，夥計們。

Thank you.

謝謝。

Amit Dayal, H.C. Wainwright.

阿米特·達亞爾 (Amit Dayal)，H.C.溫賴特。

Yeah. Hi, guys. With respect to the EV infrastructure opportunity, how much contribution from these deployments is part of your 2023 outlook?

是的。嗨，大家好。關於電動車基礎設施機會，您對 2023 年展望中這些部署的貢獻有多大？

So we're seeing a lot of opportunities in the EV infrastructure sector. The EV infrastructure rolls up into our C&I division. And we're seeing risk -- we don't break that number out specifically, but it's a fairly substantial part of our overall C&I, maybe 3% to 5% of its overall total C&I number. And we expect, as decisions are made and EV infrastructure continues to grow, that percentage as the overall operation to continue to grow.

因此，我們在電動車基礎設施領域看到了許多機會。電動車基礎設施歸入我們的 C&I 部門。我們看到了風險——我們沒有具體列出這個數字，但它是我們整體 C&I 的相當大的一部分，可能佔 C&I 總數的 3% 到 5%。我們預計，隨著決策的製定和電動車基礎設施的不斷發展，整體營運的比例將繼續增長。

And along those lines, is there any particular player you are working with that is getting you more of that business? So are you spread across all of the providers in that space?

沿著這些思路，是否有任何與您合作的特定參與者可以讓您獲得更多業務？那麼您是否分佈在該領域的所有提供者中？

Yeah. No, we're pretty spread out. We're working with several different providers and companies on their plans. And we have a lot of various projects in the work. We consistently see RFPs. And I think some of the acceleration will come in this part of the industry as final decisions are made by the various OEMs on how they want to approach it and vary the infrastructure going forward.

是的。不，我們很分散。我們正在與多家不同的提供者和公司合作制定他們的計劃。我們有很多不同的項目正在進行中。我們一直看到 RFP。我認為，隨著各個原始設備製造商就他們希望如何實現這一目標並改變未來的基礎設施做出最終決定，該行業的這一部分將出現一些加速。

Understood. Thank you. With respect to the benefits from the IRA legislation, is that beginning to show up in your backlog and financials yet? Or is that something that will probably take place a little further down?

明白了。謝謝。關於 IRA 立法帶來的好處，這是否已開始體現在您的積壓訂單和財務狀況中？或者這可能會在更遠的地方發生？

Well, certainly, projects that have -- project development has increased in the valuations on these projects have increased with the IRA. So we are seeing developers and partners try to accelerate projects as they move through. So we don't think we've seen the full benefits of the IRA yet. I think there's still some language we're waiting on there to help solidify things for everyone. But yeah, certainly, we're seeing an uptick in opportunities and demand based on the IRA.

嗯，當然，專案開發已經增加，這些專案的估值也隨著 IRA 的增加而增加。因此，我們看到開發商和合作夥伴試圖加快專案的進展。因此，我們認為我們還沒有看到 IRA 的全部好處。我認為我們仍在等待一些語言來幫助每個人鞏固事情。但是，是的，我們確實看到了基於 IRA 的機會和需求的增加。

Understood. This last one -- on the storage side of these deployments, is storage already becoming meaningful part of these deployments? Or is that an additional opportunity for you in terms of improving revenues and margins down the line?

明白了。最後一個 - 在這些部署的儲存方面，儲存是否已經成為這些部署中有意義的一部分？或者這對您來說是一個提高收入和利潤的額外機會嗎？

Yeah. On the C&I side, storage has not been as impactful as it has on the residential side. On the residential side, we're seeing 35%-plus attachments rates. And certainly, as we move forward, I think the attachment rates on the larger scale, both commercial and industrial size and beyond will start seeing much higher attachment rates as well.

是的。在工商業方面，儲存的影響力不如住宅方面。在住宅方面，我們看到附件率超過 35%。當然，隨著我們前進，我認為更大範圍內的附著率，無論是商業和工業規模還是其他規模，也將開始看到更高的附著率。

Okay. That's all I have, guys. Thank you so much.

好的。這就是我所擁有的一切，夥計們。太感謝了。

Thank you.

謝謝。

Noel Parks, Tuohy Brothers.

諾埃爾·帕克斯、圖伊兄弟。

Actually, I had some similar questions to those that have come up, but I just wanted to drill down on a couple of specific things. So you talked about, of course, a factory that you might have a little more control over in the near term, which is achieving margin expansion through efficiencies from the second half of the year and looking forward.

事實上，我也有一些與那些提出的類似的問題，但我只是想深入研究一些具體的事情。當然，您談到了一家您在短期內可能擁有更多控制權的工廠，該工廠正在透過下半年和未來的效率實現利潤率擴張。

So I guess, could you talk a bit more about what pricing is like, what you're seeing in terms of trends there? And also, just as a reality check, for projects that you're executing on now, I imagine it varies by setting, but roughly what era was the pricing set in? What time did you arrive at the pricing, contractually, for work that you're actually in the middle of executing now?

所以我想，你能多談談定價是什麼樣的，以及你所看到的趨勢嗎？而且，就像現實檢查一樣，對於您現在正在執行的項目，我想它會因環境而異，但定價大致是在哪個時代設定的？對於您目前正在執行的工作，您是何時根據合約確定定價的？

I guess I'm not sure I fully understand the second half of that question. How did we arrive at pricing?

我想我不確定我是否完全理解該問題的後半部分。我們是如何得出定價的？

I guess I'm talking about lead times. So in other words, for example, for a C&I project that you're actually executing on now, typically, when was the contract established and that pricing signed? Is it like six months ago, 18 months ago?

我想我正在談論交貨時間。換句話說，例如，對於您現在實際執行的 C&I 項目，通常是什麼時候簽訂合約並簽署定價的？是六個月前還是十八個月前？

Yeah. So a residential project from sale to installation will vary between 30 to 60 days to six months, depending on interdesigns and customer and utility and things like that. So commercial is a little bit longer than that, and the larger industrial ones, if we provide pricing last July for some of the projects we're working on now, we've certainly seen some commodity prices come down, panel prices come down, and ease a bit.

是的。因此，住宅項目從銷售到安裝的時間將在 30 至 60 天到六個月之間，具體取決於互動設計、客戶和公用設施等。因此，商業項目的時間比這要長一些，而更大的工業項目，如果我們在去年 7 月為我們現在正在進行的一些項目提供定價，我們肯定會看到一些商品價格下降，面板價格下降，並放鬆一點。

Okay. And I guess I'm also thinking of a wrong type of business. For example, storage was mentioned, and I'm wondering if you can tease out a bit. There are, of course, projects that people are pursuing for, for example, on the residential side even, where they're very mindful of longer-term ESG goals.

好的。我想我也在考慮一種錯誤的業務類型。例如，提到了存儲，我想知道你是否可以稍微梳理一下。當然，人們也追求一些項目，例如住宅項目，他們非常注重長期 ESG 目標。

And then I'm thinking on C&I, and then there are projects where people are particularly attuned to the issues of resiliency, for instance, and maybe are thinking towards their own solar usage and eventually maybe towards a microgrid-type application. And so I wonder if you could talk a little bit about maybe what you're seeing as current business drivers now as far as customer motivation for timing to transact now.

然後我正在考慮工商業，然後在一些專案中，人們特別關注彈性問題，例如，也許正在考慮自己的太陽能使用，並最終可能考慮微電網類型的應用。因此，我想知道您是否可以談談您現在所看到的當前業務驅動因素，以及客戶現在進行交易的動機。

Yeah. We're seeing a strong demand on the residential side for storage. And I think every single sales opportunity, storage is discussed and we continue to see high attachment rates, and I think we'll continue to see those grow.

是的。我們看到住宅方面對儲存的強勁需求。我認為每個銷售機會、儲存都得到了討論，我們繼續看到高附加率，而且我認為我們將繼續看到這些成長。

On C&I side, it becomes much more of a longer conversation, more design work, more financial considerations, but we think resiliency will continue to be a big part of considerations for companies. Having operations down due to power outages, or time of use rates, that will come into play. I certainly believe that storage and opportunities in the storage area will continue to grow.

在 C&I 方面，它變得更加漫長的對話、更多的設計工作、更多的財務考慮，但我們認為彈性將繼續成為公司考慮的重要組成部分。由於停電或使用時間過長導致營運中斷，這將發揮作用。我當然相信儲存和儲存領域的機會將繼續成長。

With our customer base and the people that we've served, we certainly think there's wide-ranging opportunities to go back and work with these companies to add storage to them. And certainly, as technology improvements happen and prices come down, it'll continue to be a compelling opportunity.

憑藉我們的客戶群和我們服務過的人員，我們當然認為有很多機會回去與這些公司合作，為他們增加儲存空間。當然，隨著技術的進步和價格的下降，這將仍然是一個引人注目的機會。

Right. And I guess, also for the geographical concentration of most of your business, I wonder if you could -- you've mentioned, in terms of timing factors, for example, on residential with what the time looks like as far as interacting with the utility.

正確的。我想，對於您大部分業務的地理集中度，我想知道您是否可以 - 您提到過，就時間因素而言，例如，在住宅方面，就與公用事業。

Can you just talk a little bit about what backlog or timing people are seeing for if they need participation from the utility in order to make a project go forward? How well or poorly is that utility piece of the lead time doing in New England, for instance?

您能否簡單談談如果人們需要公用事業公司的參與才能推進項目，他們會看到哪些積壓或時間表？例如，前置時間的公用事業部分在新英格蘭的表現如何？

Yeah, sure. That really varies by utility. We are not seeing long lead times in any of the markets that we service with the utilities. There's certainly a lot of preparation that's gone into -- from the utilities for solar and upgrades that have been ongoing. And so we have not seen widespread long delays on interconnections or utility work.

好，當然。這確實因實用程式而異。在我們與公用事業公司合作的任何市場中，我們都沒有看到較長的交貨時間。當然，太陽能公用事業和正在進行的升級已經做了很多準備。因此，我們沒有看到互連或公用事業工作出現普遍的長時間延誤。

Okay, great. Thanks a lot. That's all for me.

好的，太好了。多謝。這就是我的全部。

Thank you, Noel.

謝謝你，諾埃爾。

Thank you. We have reached the end of our question-and-answer session. So I will now turn the call back over to Mr. Jeffrey Peck, our Chairman and CEO, for closing comments.

謝謝。我們的問答環節已經結束。因此，我現在將把電話轉回給我們的董事長兼執行長 Jeffrey Peck 先生，以徵求總結意見。

Thank you, everybody, for joining the call today. We appreciate your time to hear about the progress and the performance. In the future, we plan to participate at the H.C. Wainwright Conference in mid-September and the ThinkEquity Conference in mid-October, both in New York City, as well as the RE+ in Las Vegas in mid-September. Please let us know if you'd like to meet us there or at any time to discuss our business and our ongoing efforts.

謝謝大家今天加入電話會議。我們感謝您抽出時間來了解進度和表現。未來我們計劃參加H.C. 9 月中旬在紐約舉行的 Wainwright 會議和 10 月中旬在紐約舉行的 ThinkEquity 會議，以及 9 月中旬在拉斯維加斯舉行的 RE+。如果您想在那裡與我們會面或隨時討論我們的業務和我們正在進行的努力，請告訴我們。

If you have any questions, please reach out to ir@isunenergy.com. Thank you, and have a great day.

如果您有任何疑問，請聯絡 ir@isunenergy.com。謝謝您，祝您有美好的一天。

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

謝謝。今天的會議到此結束，此時您可以掛斷電話了。我們感謝您的參與。