iSun Inc (ISUN) 2023 Q3 法說會逐字稿

Greetings. Welcome to the iSun Energy third quarter 2023 earnings conference call. At this time, all participants are in a listen only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) Please note, this conference is being recorded. I will now turn the conference over to your host, Mary Conway. You may begin.

問候。歡迎參加 iSun Energy 2023 年第三季財報電話會議。此時，所有參與者都處於只聽模式。正式演講後將舉行問答環節。 （操作員說明）請注意，本次會議正在錄製中。現在我將把會議交給主持人瑪麗康威。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 third quarter of 2023. Jeffrey Peck, Chairman and Chief Executive Officer, will provide an update on our operating performance in the quarter, along with reviewing our outlook for 2023. John Sullivan, Chief Financial Officer, will provide an overview of the third quarter 2023 financial results. After our prepared remarks today, we will open the lines to address any questions.

謝謝您，接線員，早安。我們很高興歡迎您參加iSun 的電話會議，我們將在會上討論2023 年第三季度的財務和運營業績。董事長兼首席執行官杰弗裡·佩克(Jeffrey Peck) 將提供我們本季度運營業績的最新信息，並回顧我們的業績2023 年展望。首席財務官 John Sullivan 將概述 2023 年第三季財務業績。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 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. 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.

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。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？

Good morning, everyone. Thank you for joining us today. I am pleased to share an update on iSun's continuing robust progress in the third quarter of 2023 and review our plans and expectations for the remainder of the year. Once again, we are very pleased with the strong performance our team has generated this quarter. In the third quarter of 2023, we've produced another beat on the top line with revenues up 47% year-over-year, nicely above the Street's consensus. Despite some of the macroeconomic challenges in our sector, we continue to do precisely what we said we would do. Scale the business, grow revenues, and reduce our losses by focusing on efficiencies while we serve our existing customers and win new business.

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 年第三季持續強勁進展的最新情況，並回顧我們對今年剩餘時間的計劃和期望。我們再次對我們團隊本季的強勁表現感到非常滿意。 2023 年第三季度，我們的營收再次取得好成績，營收年增 47%，遠高於華爾街的共識。儘管我們這個行業面臨一些宏觀經濟挑戰，但我們仍然嚴格地按照我們所說的去做。在我們為現有客戶提供服務並贏得新業務的同時，透過注重效率來擴大業務、增加收入並減少損失。

Our commercial and industrial group is driving excellent results and our residential groups [uncommon] continues to see high customer satisfaction and referrals despite a short-term slowdown in residential demand, as I'll discuss shortly. Meanwhile, 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. Our success in winning significant new contracts in solar 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 are affirming today for annual revenue growth and improving profitability.

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[不常見]仍然保持較高的客戶滿意度和推薦量，正如我將很快討論的那樣。同時，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。儘管該領域存在一些不利因素，但我們在太陽能電動車基礎設施以及更多住宅業務方面成功贏得了重要的新合同，這使我們對實現我們之前分享並今天確認的年度財務目標的能力更有信心實現年度收入成長並提高獲利能力。

It remains dedicated to executing our strategic plan to achieve our mission to help accelerate the adoption of solar energy. Today I want to touch on a few points that underscore why iSun is following a different path in the solar energy industry and what has been driving our recent success. I also want to share some thoughts on some trends we are seeing and why we believe we are well positioned for continued growth as we continue to scale our business. As I said before, it starts with our platform approach, encompassing the full lifecycle of providing solar energy solutions from origination and development to construction and management across business segments.

它仍然致力於執行我們的戰略計劃，以實現我們幫助加速太陽能應用的使命。今天我想談幾點，強調為什麼 iSun 在太陽能產業走不同的道路，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，以及為什麼我們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。正如我之前所說，它從我們的平台方法開始，涵蓋提供太陽能解決方案的整個生命週期，從起源和開發到跨業務部門的建設和管理。

We maintain that this approach is a competitive differentiating advantage that positions us for long term sustainable growth. We see the proof of the success of the strategy and execution in the meaningful year-over-year revenue growth we have generated this year. And on a year-to-date basis, we have increased revenues by 39% compared to the same period in 2022. And as you hear us pointed out repeatedly, we generated this robust growth while reducing our operating expenses over the same period by $5.6 million or 21%. We're very proud of the success we're having from the efficiency measures that we've implemented.

我們認為，這種方法是一種競爭差異化優勢，使我們能夠實現長期永續成長。我們在今年實現的有意義的同比收入成長中看到了策略和執行的成功證明。與 2022 年同期相比，今年迄今為止，我們的收入增加了 39%。正如您多次聽到的那樣，我們在實現強勁增長的同時，同期營運費用減少了 5.6 美元百萬或21%。我們對我們實施的效率措施所取得的成功感到非常自豪。

Quickly reviewing our third quarter results, revenue increased by 47% to $27.9 million and gross margin rose 45 basis points to 19.45%, up from 19% in 2022, third quarter, as our efficiency efforts enabled more of the top line to drop to the bottom line. In the third quarter, 30% of our revenues came from the residential segment where gross margins tend to be higher, which added pressure to margin expansion. We remain confident that as we scale and drive synergies and efficiency throughout the organization, our margins will expand even though there will be some variability in any given quarter depending on the revenue mix.

快速回顧我們第三季的業績，營收成長了47%，達到2,790 萬美元，毛利率從2022 年第三季的19% 成長了45 個基點，達到19.45%，因為我們的效率工作使更多的收入下降到了底線。第三季度，我們30%的營收來自毛利率較高的住宅領域，增加了利潤率擴張的壓力。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，我們的利潤率將會擴大，儘管根據收入組合，任何特定季度都會出現一些變化。

As of September 30, 2023, our total backlog remained at $161.8 million, and our pipeline remained at 1.6 gigawatts of projects as of the end of the third quarter of 2023. The size of the backlog and pipeline underscore the healthy customer demand we're 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. 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. We see the same positive referral impact in our C&I group.

截至2023 年9 月30 日，我們的積壓訂單總額仍為1.618 億美元，截至2023 年第三季末，我們的專案儲備仍為1.6 吉瓦。積壓訂單和管道專案的規模強調了我們的健康客戶需求。體驗以及我們發起更多項目並擴展到更多州的努力的有效性，這些都是我們正在進行的戰略舉措的一部分。我們的成功也反映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。我們在 C&I 團隊中看到了同樣正面的推薦影響。

I'll provide some more details about one of our new partnerships with Cleantech Industry Resources momentarily. 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 at home improvement loans. If there's a silver lining here, I would note that the sticker shock, consumers had initially experienced when looking at home improvement loans have abated somewhat.

我將立即提供有關我們與清潔技術行業資源公司的新合作夥伴關係之一的更多詳細資訊。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，反映出房屋裝修貸款利率上升的影響。如果這裡有一線希望的話，我會注意到，消費者在考慮房屋裝修貸款時最初經歷的價格衝擊已經減弱。

People don't know what to expect. There continues to be strong interest in residential solar in our markets and I will note that because we aren't exposed to the California market, like most of our peers, we're somewhat insulated from the additional residential market challenges. We continue to build more business and expect a heavier period of installations in the coming quarter.

人們不知道會發生什麼事。我們的市場仍然對住宅太陽能抱有濃厚的興趣，我要指出的是，因為我們不像大多數同行那樣接觸加州市場，所以我們在某種程度上免受額外住宅市場挑戰的影響。我們將繼續建立更多業務，並預計下一季的安裝量將更大。

The commercial and industrial division, which we combined as of beginning of 2023, has continued to generate very strong results this year and accounted for 67% of our revenue in the third quarter. Our origination team has become more involved in this effort focused on initiating projects that have entered over to the C&I divisions and to execute. We are continuing to work through our backlog while adding more business to the backlog through contract wins.

我們於 2023 年初合併的商業和工業部門今年繼續取得非常強勁的業績，佔第三季營收的 67%。我們的發起團隊更參與了這項工作，重點是啟動已進入 C&I 部門並執行的專案。我們正在繼續處理積壓訂單，同時透過贏得合約為積壓訂單增加更多業務。

Based on the results we've seen thus far, including enhancing our labor utilization and a reduction in operating expenses as I mentioned, we remain certain that the decision to combine the commercial and industrial segments was a good one. Our utility and development division continue to face delays once again, something we see across the industry, although we continue to increase the backlog that the group is addressing, and we saw a small revenue growth in this past quarter compared to prior quarters in 2023.

根據我們迄今為止所看到的結果，包括提高我們的勞動力利用率和減少營運費用，正如我所提到的，我們仍然確信合併商業和工業部門的決定是一個好的決定。我們的公用事業和開發部門繼續再次面臨延誤，這是我們在整個行業中看到的情況，儘管我們繼續增加該集團正在解決的積壓工作，而且與2023 年前幾個季度相比，我們在過去一個季度的收入略有增長。

Despite these project delays or unexpected implementation, we continue to believe the projects will move forward beginning late this year, enabling resulting revenues to be recognized later this year or in early 2024. 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. Beginning in 2024, we will consolidate our utility development division into our commercial and industrial team. This consolidation will allow us to capitalize on additional synergies and continue to focus on cost, reduction, and containment.

儘管這些項目出現延誤或實施意外，我們仍然相信這些項目將從今年年底開始推進，從而使最終收入能夠在今年晚些時候或2024 年初得到確認。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持我們將繼續整合並提高整個組織的營運效率。從 2024 年開始，我們將把公用事業開發部門整合到商業和工業團隊中。這種整合將使我們能夠利用額外的協同效應，並繼續專注於成本、減少和控制。

Our teams bring proven expertise and knowledge of the industry, which is incredibly valuable at this volatile times. This creates a strong customer relationship being the contract awards across our business. In the third quarter, we added $27 million in new business, bringing our total for the first nine months of 2023 to $67 million. Despite sector challenges, we've approached our business with relentless innovation. One of our recent partnership exemplifies this style of operations.

我們的團隊帶來了經過驗證的行業專業知識和知識，這在這個動盪的時期非常有價值。這創造了牢固的客戶關係，成為我們整個業務中的合約授予。第三季度，我們增加了 2,700 萬美元的新業務，使 2023 年前 9 個月的新業務總額達到 6,700 萬美元。儘管面臨產業挑戰，我們仍以不懈的創新來開展業務。我們最近的合作夥伴關係之一就是這種運作方式的例證。

Cleantech Industry Resources or CIR is a highly automated provider of energy, project development and engineering services. By collaborating, we could focus on expanding our core turnkey EPC business in conjunction with CIRs growing development as a service and engineering services business. By working together, we reduce any conflicts of interest with many of our developer partners. We also can access CIRs, ultra low-cost services platform on a preferred basis while retaining construction rights of CIRs internally developed and owned projects. Plus, we also secured preferred partner status of CIRs growing pipeline of EPC related projects, which is currently estimated at 5.25 gigawatts. This will fuel our project backlog for years to come. We look forward to sharing more information about this collaboration as we move forward together.

Cleantech Industry Resources 或 CIR 是一家高度自動化的能源、專案開發和工程服務供應商。透過合作，我們可以專注於擴大我們的核心交鑰匙 EPC 業務，同時 CIR 不斷發展服務開發和工程服務業務。透過共同努力，我們減少了與許多開發合作夥伴的利益衝突。我們也可以優先接觸CIR超低成本服務平台，同時保留CIR內部開發與擁有的專案的建置權。此外，我們還獲得了 CIR 的首選合作夥伴地位，不斷增長的 EPC 相關項目管道目前估計為 5.25 吉瓦。這將加劇我們未來幾年的專案積壓。我們期待在共同前進的過程中分享有關此次合作的更多資訊。

In terms of the solar landscape, we remain optimistic and enthusiastic. As I mentioned, our C&I segment is scaling nicely, responding effectively to increased customer demand with expanded teams while ensuring that our labor utilization is optimized. Customer demand continues to increase across the country directly and through partners. We continue to secure more opportunities to bid on meaningful projects. The residential segment has been sluggish as I described, but our diversified model allows us to deploy our internal resources more efficiently across segments during these challenging times. And the good news is that we have ample backlog to execute in this segment and operate in markets inflated by some of the larger headwinds.

就太陽能前景而言，我們仍然保持樂觀和熱情。正如我所提到的，我們的工商業部門正在很好地擴展，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最佳化。全國各地的客戶需求直接或透過合作夥伴持續成長。我們將繼續爭取更多機會來投標有意義的項目。正如我所描述的，住宅細分市場一直低迷，但我們的多元化模式使我們能夠在這些充滿挑戰的時期更有效地跨細分市場部署內部資源。好消息是，我們在這一領域有足夠的積壓來執行，並在因一些較大阻力而膨脹的市場中運作。

Our origination team is producing more opportunities that will eventually be executed largely by our C&I segment and the utility development division continues to push projects forward and provide valuable services throughout the organization. We remain convinced that both the heightened interest in alternative energy as well as the IRA legislation passed last year will afford iSun and the industry genuine benefits. We continue to expect that more specific roles and the removal of uncertainty will increase the value of solar assets, both 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.

我們的發起團隊正在創造更多的機會，這些機會最終將主要由我們的 C&I 部門和公用事業開發部門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。我們仍然相信，人們對替代能源的興趣日益濃厚，以及去年通過的 IRA 立法將為 iSun 和整個行業帶來真正的好處。我們仍然預計，更具體的角色和消除不確定性將增加太陽能資產的價值，無論是開發中的還是正在建造的太陽能資產，就我們而言，這將導致我們的管道估值更高，因為它刺激了需求的增加我們將在 2024 年及以後解決這個問題。

In 2023, considering all the evolving macroeconomic factors, we have continued to demonstrate strong revenue growth and reduced operating expenses, both of which will help us attain operating profitability in the years ahead and sustain our margin expansion. Thus, we are affirming our expectations for total revenue in fiscal year 2023 of between $95 million and $100 million, reflecting a 24% to 31% increase over the total revenue in 2022 along with gross margin expansion on an annual basis.

2023年，考慮到所有不斷變化的宏觀經濟因素，我們繼續表現出強勁的收入成長和營運費用的減少，這兩者都將幫助我們在未來幾年實現營運獲利並維持利潤率擴張。因此，我們確認 2023 財年總營收在 9,500 萬至 1 億美元之間的預期，反映出比 2022 年總營收成長 24% 至 31%，同時毛利率逐年成長。

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

接下來，我將把發言權交給約翰。

Thank you, Jeff. We are pleased with the sustained robust revenue growth we produced yet again in the third 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. iSun reported third quarter 2023 revenue of $27.9 million, up 47% from Q3 2022 revenue of $19 million. For the first nine months of 2023, revenue was $70.3 million, representing a $19.7 million or 39% increase over the same period in 2022. Revenue growth in the quarter and year to date was driven by effective execution of our commercial and industrial backlog as well as fulfillment of our residential consumer demand.

謝謝你，傑夫。隨著我們繼續執行積壓訂單，我們對第三季再次實現持續強勁的營收成長感到高興。在轉向資產負債表之前，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 公佈 2023 年第三季營收為 2,790 萬美元，比 2022 年第三季營收 1,900 萬美元成長 47%。 2023 年頭 9 個月，營收為 7,030 萬美元，比 2022 年同期成長 1,970 萬美元，成長 39%。本季和年初至今的營收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 third quarter of 2023, 30% of our total revenues were in the residential segment, which impacted our margin expectations at historically 50% of our total revenues were in the residential segment. While we continue to execute against our existing backlog, we also generated new demand and added $27 million in new business during Q3 for a total of $67 million added so far in 2023, effectively replenishing their revenue earned year to date. Total backlog was $161.8 million as of September 30, 2023. By segment, our residential division generated revenue of $8.3 million and $24.5 million in the third quarter and year to date respectively. Customer orders of approximately $15 million are expected to be completed within three to five months.

正如 Jeff 所提到的，2023 年第三季度，我們總收入的 30% 來自住宅領域，這影響了我們的利潤率預期，因為歷史上我們總收入的 50% 來自住宅領域。在我們繼續執行現有積壓訂單的同時，我們也產生了新的需求，並在第三季增加了2,700 萬美元的新業務，2023 年迄今總共增加了6,700 萬美元，有效地補充了他們今年迄今所獲得的收入。截至 2023 年 9 月 30 日，積壓訂單總額為 1.618 億美元。按細分市場劃分，我們的住宅部門在第三季和年初至今分別創造了 830 萬美元和 2,450 萬美元的收入。約 1500 萬美元的客戶訂單預計將在三到五個月內完成。

Our commercial and industrial division, which were consolidated as of January 1, 2023, generated revenue of $18.8 million and $44.7 million in the third quarter and year to date, respectively. The division has contracted backlog of approximately $140.3 million expected to be completed within 10 to 18 months. Our utility and development division generated $0.9 million and $1.2 million in the third quarter and year to date respectively. The utility division has a contracted backlog of approximately $6.5 million and 1.6 gigawatts of projects currently under development expected to achieve NTP in early 2024.

我們的商業和工業部門於 2023 年 1 月 1 日合併，第三季和今年迄今的收入分別為 1,880 萬美元和 4,470 萬美元。該部門已積壓約 1.403 億美元的合同，預計將在 10 至 18 個月內完成。我們的公用事業和開發部門在第三季和年初至今分別創造了 90 萬美元和 120 萬美元的收入。公用事業部門目前正在開發合約積壓約 650 萬美元和 1.6 吉瓦的項目，預計將於 2024 年初實現 NTP。

Gross profit in the third quarter was $5.4 million, up 50% from $3.6 million in the third quarter of 2022. Gross margin for the quarter was 19.45%, up 45 basis points from 19% in the same period in 2022. Our C&I segment accounted for approximately 67% of the quarter's revenues. Margin improvement reflected efficiencies generated through the consolidation of our teams, leading to more efficient utilization of our labor despite the headwind from revenue mix. Year-to-date gross profit was $14.9 million, up 41% compared to $10.5 million during the same period in 2022. Year-to-date gross margin was 21.2% up 40 basis points compared to 20.8% during the same period in 2022.

第三季毛利為 540 萬美元，比 2022 年第三季的 360 萬美元成長 50%。該季度毛利率為 19.45%，比 2022 年同期的 19% 成長 45 個基點。我們的 C&I 部門佔約佔本季營收的67%。利潤率的提高反映了我們團隊整合所產生的效率，儘管收入組合存在不利因素，但我們的勞動力利用率得到了更有效的利用。年初至今的毛利為 1,490 萬美元，較 2022 年同期的 1,050 萬美元成長 41%。年初至今的毛利率為 21.2%，較 2022 年同期的 20.8% 成長 40 個基點。

Margin is expected to remain strong in 2023 as we continue to scale operations and drive efficiencies across segments, although in any given quarter, revenue mix can cause variability in margin. As part of our ongoing strategy to expand gross margin each year, we will continue to implement synergies and efficiencies as we did this past quarter as our segment revenues grow. The operating loss in the third quarter was $1.8 million, a $3 million or 64% improvement compared to a loss of $4.9 million in 2022, third quarter, primarily reflecting the higher revenue and lower operating expenses as part of the company's focus on efficiency.

隨著我們繼續擴大營運規模並提高各部門的效率，預計 2023 年利潤率將保持強勁，儘管在任何特定季度，收入組合都可能導致利潤率變化。作為我們每年擴大毛利率的持續策略的一部分，隨著我們部門收入的成長，我們將像上個季度一樣繼續實現協同效應和效率。第三季的營運虧損為180 萬美元，與2022 年第三季的490 萬美元虧損相比，減少了300 萬美元，即64%，主要反映了公司注重效率的一部分，帶來了更高的收入和更低的營運費用。

Year-to-date operating income was a loss of $6.2 million, a $10 million or 62% reduction compared to a loss of $16.2 million during the same period in 2022. Noncash depreciation and amortization expenses were $0.8 million in the third quarter of 2023, $1 million lower than $1.8 million in prior year period. Due-to-date noncash depreciation and amortization expenses were $2.3 million, a $3 million reduction, $5.3 million in the same period in 2022. iSun reported a net loss of $2.2 million or $0.07 per share in the third quarter of 2023 compared to a net loss of $4.9 million or $0.36 per share in the same period in 2022.

年初至今營業收入虧損 620 萬美元，與 2022 年同期虧損 1,620 萬美元相比，減少了 1,000 萬美元，即 62%。2023 年第三季的非現金折舊和攤銷費用為 80 萬美元，比去年同期的180 萬美元減少100 萬美元。截至目前的非現金折舊和攤銷費用為230 萬美元，減少了300 萬美元，比2022 年同期減少了530 萬美元。iSun 報告2023 年第三季淨虧損220 萬美元，即每股0.07 美元，而去年同期淨虧損2022 年同期虧損 490 萬美元，即每股虧損 0.36 美元。

Year-to-date net loss was $7.8 million or $0.35 per share compared to a net loss of $13.5 million or $0.98 per share in the same period in 2022. Adjusted EBITDA for the third quarter of 2023 was a loss of $0.5 million or $0.02 per share compared to a loss of $2.5 million or $0.18 per share in 2022 third quarter. Year-to-date adjusted EBITDA was a loss of $2.3 million or $0.1 per share compared to a loss of $5.9 million or $0.43 per share in the same period in 2022. We are continuing to focus our efforts on operational integration and creating systems and processes that allow for efficient and effective growth.

年初至今淨虧損為780 萬美元，即每股0.35 美元，而2022 年同期淨虧損為1,350 萬美元，即每股0.98 美元。2023 年第三季調整後EBITDA 為虧損50 萬美元，即每股虧損0.02 美元相比之下，2022 年第三季虧損 250 萬美元，即每股虧損 0.18 美元。年初至今，調整後 EBITDA 虧損 230 萬美元，即每股 0.1 美元，而 2022 年同期虧損 590 萬美元，即每股 0.43 美元。我們將繼續專注於營運整合以及創建系統和流程從而實現高效且有效的增長。

In the third quarter of 2023, we reduced operating expenses by approximately $1.3 million or 15% in the same quarter of 2022, while increasing revenue by 47%. So far in 2023, we have reduced total operating expenses, even while our revenues have increased by 39% by $5.6 million or 21%. We expect these positive trends to be sustained throughout the rest of 2023.

2023 年第三季度，我們減少了約 130 萬美元的營運費用，比 2022 年同一季度減少了 15%，同時收入增加了 47%。 2023 年到目前為止，我們已經減少了總營運支出，儘管我們的收入成長了 39%，增加了 560 萬美元或 21%。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 $4.2 million to $9.4 million as of September 30, 2023, down from $13.6 million at December 31, 2022, reflecting the ongoing repayment of our long-term debt. Our cash position of $5.5 million as of September 30, 2023, was the same as it was as of December 31, 2022. Higher revenue and diligent collections have benefited our cash position, although it has been slightly higher at different points this year, reflecting the large project volume currently in process.

現在轉向資產負債表。截至 2023 年 9 月 30 日，債務總額從 2022 年 12 月 31 日的 1,360 萬美元減少 420 萬美元至 940 萬美元，反映出我們正在償還長期債務。截至2023 年9 月30 日，我們的現金頭寸為550 萬美元，與截至2022 年12 月31 日的現金頭寸相同。收入的增加和勤奮的催收使我們的現金頭寸受益，儘管今年不同時間點的現金部位略有增加，反映出目前正在進行的大型專案。

As we noted last quarter, we recognize the downward pressure on our valuation from our outstanding convertible notes. Our strong operating performance so far this year enabled us to refinance our debt facilities. We're delighted to have signed a term sheet for a non-dilutive $8 million term loan that is expected to close at the end of this month. The primary purpose will be to retire the convertible note as well as provide working capital funds.

正如我們上季度所指出的，我們認識到我們未償還的可轉換票據給我們的估值帶來了下行壓力。今年迄今為止，我們強勁的經營業績使我們能夠為債務融資進行再融資。我們很高興簽署了一份 800 萬美元非稀釋性定期貸款的條款清單，預計將於本月底結束。主要目的是廢除可轉換票據並提供營運資金。

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

有了這個，我會把它轉回給傑夫。

Thank you, John. Let me reiterate how pleased I am with our performance this year in the face of challenging macroeconomic factors, which have enabled us to continue to exceed the Street's consensus. The growth and strong execution in C&I last quarter offset the pressures we are experiencing in the residential segment, which demonstrates how our diversification is the true advantage. Our continuing ability to win new contract awards both through our efforts and through our collaborations and partnerships ensures that we remain well positioned for success as we finish up 2023.

謝謝你，約翰。讓我重申，我對今年面對充滿挑戰的宏觀經濟因素的表現感到非常高興，這使我們能夠繼續超越華爾街的共識。上季工商業的成長和強勁執行抵消了我們在住宅領域所面臨的壓力，這表明我們的多元化是真正的優勢。透過我們的努力以及透過我們的合作和夥伴關係，我們有能力持續贏得新的合同，這確保了我們在 2023 年結束時保持成功的有利條件。

Our team is laser focused on what they need to do to execute other many different opportunities we have created within this continually evolving and dynamic energy market. In addition, we are benefiting from our focus on efficiency, which as John described, has enabled us to reduce our operating costs significantly, even while we are growing our top line even more substantially. All in all, we continue to execute on our strategy, supported by the investments that we have made to create recurring revenue opportunities as well as the positive impacts from the Inflation Reduction Act. We remain confident the best is yet to come for iSun and our stakeholders.

我們的團隊專注於他們需要做什麼，以執行我們在這個不斷發展和動態的能源市場中創造的其他許多不同的機會。此外，我們也受益於我們對效率的關注，正如約翰所描述的那樣，這使我們能夠顯著降低營運成本，即使我們的收入成長幅度更大。總而言之，在我們為創造經常性收入機會而進行的投資以及《通貨膨脹削減法案》的積極影響的支持下，我們將繼續執行我們的策略。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？

Certainly. At this time, we will be conducting a question-and-answer session. (Operator Instructions) One moment, please while we poll for questions.

當然。此時，我們將進行問答環節。 （操作員指示）請稍等，我們進行投票提問。

Justin Clare, ROTH MKM.

賈斯汀·克萊爾，羅斯 MKM。

Yes, hi. Thanks for taking our questions here. So first off, and on the term loan here, see you signed the term sheet for a nondilutive term loan. And was wondering if you just talk about the use of proceeds, so do you expect to repay all of the outstanding senior secured convertible notes in full? And then also, can you share any of the details on the terms for the new loan at this point such as the interest rates or do you need to wait for it to close before you can share that information?

是的，嗨。感謝您在這裡提出我們的問題。因此，首先，在此處的定期貸款上，請查看您簽署了非稀釋性定期貸款的條款清單。想知道您是否只是談論收益的用途，那麼您是否期望全額償還所有未償還的優先有擔保可轉換票據？另外，您現在能否分享有關新貸款條款的任何詳細資訊（例如利率），還是需要等待貸款結束才能分享該資訊？

Hi, Justin. This is John here, thanks for joining us this morning. So the primary use of the proceeds of the new term loan would be to retire the convertible in full. We anticipate that that closing will happen towards the end of November, the first week of December, just given the holidays. What that will do is improve our working capital position by approximately $6 million at the time of closing. In terms of the actual turns, I think we need to wait until we finalize that, but we anticipate that to be done here in the next couple of weeks.

嗨，賈斯汀。我是約翰，感謝您今天早上加入我們。因此，新定期貸款收益的主要用途將是全額收回可轉換債券。我們預計關閉時間將在 11 月底，即 12 月的第一周，恰逢假期。這將使我們的營運資金狀況在交易結束時增加約 600 萬美元。就實際的轉彎而言，我認為我們需要等到最終確定，但我們預計將在接下來的幾週內完成。

Got it. Okay. That's helpful. And then, was wondering if you just talk about the demand that you're seeing for the residential segment versus the C&I segment here, it looks like the rise in interest rates is having a greater impact on residential versus C&I. Was wondering if you talk to why that may be? Like, do you have a sense for what explains the resilience of C&I demand in the current environment?

知道了。好的。這很有幫助。然後，我想知道您是否只是談論住宅領域與工商業領域的需求，看起來利率上升對住宅領域的影響比工商業領域更大。想知道你是否能談談為什麼會這樣？例如，您是否知道如何解釋當前環境下工商業需求的彈性？

Yes. Good morning, Justin and this is Jeff Peck. One of the things that we're seeing with the consumer is just a little bit of sticker shock on the rates connected with the loan. Oftentimes they're going out for home equity loans, and they're used to borrowing at rates -- a 3% and 4% level. And so I think what we saw early on as interest rates rose is just sticker shock. We have seen since August, a pickup in residential demand, and so we think that some of that sticker shock is abating a bit.

是的。早安，賈斯汀，我是傑夫·佩克。我們在消費者身上看到的一件事是與貸款相關的利率有點令人震驚。他們通常會申請房屋淨值貸款，並且習慣以 3% 和 4% 的利率借款。因此，我認為我們早期看到的利率上升只是價格衝擊。自八月以來，我們看到住宅需求回升，因此我們認為價格衝擊有所減弱。

On the commercial side, these projects take a much longer time to develop and get to NTP to construct. And so -- there's a lot of dollars spent and a lot of the process and interconnection queue, et cetera, has been done by that point. And so likely what's happening is projects are moving forward and there's -- hopefully for some of them opportunities to refinance in forward years as interest rates go down or by the interest rates down. I would imagine that the provisions within the IRA have also helped create additional value within some of those projects to potentially offset the increased interest rates.

在商業方面，這些項目需要更長的時間來開發並到達 NTP 來建造。因此，到那時，已經花費了大量美元，並完成了許多流程和互連隊列等工作。很可能發生的情況是該項目正在向前推進，並希望其中一些項目有機會在未來幾年隨著利率下降或利率下降而進行再融資。我認為 IRA 中的規定也有助於在其中一些項目中創造額外價值，以抵消增加的利率。

Okay, got it. And then I guess is -- do you have a sense for -- is there a risk that some of the projects may fall out of the backlog if the economics may have been challenged somewhat by the higher interest rates? Or do they still seem to pencil and still you expect them to move -- to all move forward here?

好，知道了。然後我想，如果經濟可能受到較高利率的某種程度的挑戰，是否存在某些項目可能不再積壓的風險？或者他們看起來仍然像鉛筆一樣，而你仍然期望他們移動——在這裡所有人都向前移動？

Yes. I mean, I would imagine going forward that is that is a possibility. We haven't seen that yet. Again, I think the -- some of the provisions within the IRA has helped support the value of the C&I projects to date. So we haven't seen that as of yet.

是的。我的意思是，我想未來這是有可能的。我們還沒有看到這一點。再說一次，我認為 IRA 中的一些條款有助於支持迄今為止 C&I 專案的價值。所以我們還沒有看到這一點。

Got it. Okay. And then maybe just shifting to the utility business. You have 1.6 gigawatts under developments, I think in early 2024. Is it all of that 1.6 could reach NTP? At which point would you essentially begin work? And then, just wondering what the construction timeframe is. Is it something like nine months to a year at this point for much of those assets?

知道了。好的。然後也許只是轉向公用事業業務。我認為在 2024 年初，您正在開發 1.6 吉瓦。這 1.6 吉瓦的全部都可以達到 NTP 嗎？您基本上會在什麼時候開始工作？然後，只是想知道施工時間是多少。對於這些資產中的大部分來說，目前的時間是九個月到一年嗎？

Yes, there's multiple projects within that 1.6 gigawatts. Some of that timing is a little bit difficult to predict, which is why we're giving the guidance that we are on the timing to construct about a year. For most of these is likely the timeframe.

是的，這 1.6 吉瓦範圍內有多個項目。其中一些時間有點難以預測，這就是為什麼我們給的指導時間大約是一年。對於其中大多數來說，這可能是一個時間範圍。

Okay, got it. Okay. Thanks very much.

好，知道了。好的。非常感謝。

Thanks for joining, Justin.

感謝您的加入，賈斯汀。

Jeff Grampp, Alliance Global Partners.

傑夫·格蘭普，聯盟全球合作夥伴。

Good morning. Was hoping to get an update on the -- some of the synergy consolidation efforts that you guys had talked about. Would you guys consider how the heavy lifting for those efforts kind of largely complete at this point and reflected in the current cost structure for iSun? Or do you guys think there's still additional progress to be made in that regard?

早安.希望獲得有關你們談論過的一些協同整合工作的最新資訊。你們是否會考慮一下這些工作的繁重工作目前已基本完成並反映在 iSun 當前的成本結構中？或者你們認為在這方面還有更多進展嗎？

Good morning, Jeff. This is John here. Thanks for joining us this morning. So we definitely have made some major strides in the cost consolidation and driving those synergies through the different organizations. I think that is a part of our continuous improvement mantra that we like to drive through the different organizations. We'll continue that progress here in the Q4 and into 2024 is as well. We do think that there is still some significant revenue growth that can be -- realize the top of our overhead structure. And as we drive more efficiencies through systems and processes, I believe will be some additional overhead savings in the future as well.

早安，傑夫。這是約翰。感謝您今天早上加入我們。因此，我們在成本整合和透過不同組織推動這些協同作用方面確實取得了一些重大進展。我認為這是我們持續改進口號的一部分，我們希望透過不同的組織來推動這一口號。我們將在第四季度繼續取得這一進展，並持續到 2024 年。我們確實認為，仍然可以實現一些顯著的收入成長——實現我們管理費用結構的頂部。隨著我們透過系統和流程提高效率，我相信未來還會節省一些額外的管理費用。

Okay, great. Thank you. And follow-up at a question on the residential side. I think, Jeff, you mentioned the high referral rates and how that's been a positive impact for acquisition costs. Is there any kind of, I guess, qualitative or quantitative update you can provide in terms of where acquisition costs have trended recently and any referral rate metrics you could reference would be helpful, too. Thanks.

好的，太好了。謝謝。並跟進住宅方面的問題。我想，傑夫，你提到了高推薦率以及這對獲取成本的正面影響。我想，您是否可以提供有關收購成本最近趨勢的定性或定量更新，以及您可以參考的任何推薦率指標也會有所幫助。謝謝。

Yes, we're still seeing a really competitive customer acquisition cost in that $0.35 to $0.4 range. Certainly, our existing customer base provides a high percentage of referrals in that 50% to 65% range depending on the quarter. And as I said earlier, what we have seen is really since August an uptick in demand from the residential space. We operate in areas where -- the cost per powers somewhat higher than other areas. So as people digest and get used to the higher interest rates, they're coming back and seeing the value of solar on their roof. And so we've seen a nice pickup in demand really consistently since August.

是的，我們仍然看到真正有競爭力的客戶獲取成本在 0.35 美元到 0.4 美元的範圍內。當然，我們現有的客戶群提供了很高的建議比例，根據季度的不同，在 50% 到 65% 的範圍內。正如我之前所說，自八月以來，我們看到住宅空間的需求確實有所上升。我們在每項權力的成本略高於其他地區的地區開展業務。因此，當人們消化並習慣更高的利率時，他們會回來看到屋頂太陽能的價值。因此，自 8 月以來，我們看到需求持續強勁成長。

Okay. And if I can sneak one more in just on that last topic. In years past, there's typically been kind of this cliff in terms of the tax credits on the residential side with the IRA providing a little bit more certainty and a longer timeline, you could argue there's less of a rush to get something done in any given calendar year. Are you guys seeing any impact to kind of maybe smooth out some of that kind of year-end rush? Or is that still a dynamic that you guys are seeing thus far understanding we still have a little bit of time left in the year?

好的。如果我能再偷偷地談談最後一個話題。在過去的幾年裡，住宅方面的稅收抵免通常會出現這種懸崖，愛爾蘭共和軍提供了更多的確定性和更長的時間表，你可能會說，在任何給定的情況下都不會急著完成某件事。公曆年。你們是否看到任何影響可以緩解這種年終高峰？或者說，到目前為止你們所看到的情況仍然是一種動態，因為我們今年還剩下一點時間？

Yes, I don't think it's as critical as we've seen in previous years. Certainly, from a revenue mix, we'd always been sort of that 30/70 first half, second half that will probably moderate on to a 40/60, just based on some of that lack of rushing for the tax equity at year end. So likely some small impacts, but really in a positive way to better smooth revenue throughout the year.

是的，我認為這並不像我們前幾年看到的那麼重要。當然，從收入結構來看，上半年我們的收入比例一直是 30/70，下半年可能會降至 40/60，這只是因為年底我們沒有急於實現稅收公平。因此可能會產生一些小影響，但確實是一種積極的方式，可以更好地平滑全年收入。

Okay. Thanks for the time, guys.

好的。謝謝你們抽出時間。

Thank you.

謝謝。

Sameer Joshi, H.C. Wainwright.

薩米爾‧喬希 (Sameer Joshi)，H.C.溫賴特。

Good morning, John, Jeff. Thanks for taking my questions. Just a little bit granularity on the sequential adjusted EBITDA improvement that you're expecting. Should we see improved gross margin or further synergies from OpEx or both that will contribute to this adjusted EBITDA improvement?

早安，約翰，傑夫。感謝您回答我的問題。只是您所期望的連續調整後的 EBITDA 改善的一點點粒度。我們是否應該看到毛利率的提高或營運支出的進一步協同效應，或者兩者都將有助於調整後的 EBITDA 改善？

Good morning, Sameer. This is John here. So we do anticipate some additional margin enhancements as we drive those synergies. What we've done throughout the year is look to consolidate our installation teams more appropriately, and what that allows us to do is to flex and disperse labor in a much more efficient way. So we do anticipate that improvement to continue as we close out this year and into 2024 as we continue to find strong ways of working together. In addition, we do expect to stabilize and focus on cost containment in our overhead structure and drive some additional synergies there as we continue to make the process improvements through the organizations.

早上好，薩米爾。這是約翰。因此，隨著我們推動這些協同效應，我們確實預期利潤率會得到一些額外的提高。我們全年所做的就是尋求更適當地整合我們的安裝團隊，這使我們能夠以更有效的方式靈活和分散勞動力。因此，我們確實預計，隨著我們繼續尋找強有力的合作方式，這種改進將在今年結束並進入 2024 年時繼續下去。此外，我們確實希望穩定並專注於管理費用結構的成本控制，並在我們繼續透過組織改進流程的同時，推動一些額外的協同效應。

Understood. Thanks for that. In terms of C&I customers, I know you answered a couple of questions on that. Given that the backlog has remained stable, and you generated the lion's share of your revenues from that sector. Do you have -- can you help us understand what has that growth? Is there any geography-specific specificity or any particular industry vertical within this sector that is coming or is it just the same broad based and as Jeff alluded to, these are longer-term projects, and these customers expect to refinance the current higher rates at a lower rates later?

明白了。感謝那。就工商業客戶而言，我知道您回答了幾個問題。鑑於積壓訂單保持穩定，並且您的大部分收入來自該部門。您能否幫助我們了解這種成長的原因是什麼？該行業是否存在任何特定地理位置的特殊性或任何特定的行業垂直領域即將到來，或者它是否具有同樣廣泛的基礎，正如傑夫所提到的，這些是長期項目，這些客戶希望以當前較高的利率進行再融資以後利率更低嗎？

Yes, as far as the geographies go, where the bulk of our work is in what I would consider the Northern New England belt, Vermont, New Hampshire, Maine, some throughout -- also throughout the East Coast. We have some long-term relationship with various customers who continue to expand and add to their portfolio. So we believe we'll continue to see a nice project flow in C&I, in those territories and also throughout other territories and with their customer expand were they own their assets as well.

是的，就地理位置而言，我們的大部分工作都在新英格蘭北部地帶、佛蒙特州、新罕布夏州、緬因州，還有一些在整個東海岸。我們與各種客戶建立了長期合作關係，他們不斷擴大和增加他們的產品組合。因此，我們相信，我們將繼續在工商業、這些地區以及整個其他地區看到良好的專案流程，並且隨著他們的客戶擴大（如果他們也擁有自己的資產）。

Okay. And then the last one, can you just talk a little bit more about the CIR relationship? So where in what areas would you see synergies and increased revenues as a result?

好的。最後一個，您能多談談 CIR 關係嗎？那麼，您會在哪些領域看到協同效應和收入增加呢？

Yes, our partnership and our collaboration with CIR is really to continue to fill that pipeline through relationships and partnerships and collaborations. They're working on origination and really design engineering with many companies all over the country. And with our relationship with them, we have both the preferred status on engineering support as well as access to their portfolio of projects that they're working on in their customers for construction rights to build those.

是的，我們與 CIR 的夥伴關係和合作確實是為了繼續透過關係、夥伴關係和協作來填補這一管道。他們正在與全國各地的許多公司合作進行原創和真正的設計工程。透過我們與他們的關係，我們不僅在工程支援方面擁有優先地位，還可以存取他們在客戶中進行的專案組合，以獲得建造這些專案的施工權。

So we're excited about that. We think that as we approach companies and enter into partnerships and agreements, it's really with the mindset of growing a long-term business. And this sort of -- this relationship will really help swell our pipeline, which will turn into larger backlogs and more projects and more project opportunities in the years ahead for us.

所以我們對此感到興奮。我們認為，當我們與公司接觸並建立合作夥伴關係和協議時，我們確實是抱著發展長期業務的心態。這種關係將真正有助於擴大我們的管道，這將在未來幾年為我們帶來更大的積壓、更多的專案和更多的專案機會。

Sounds good. Thanks, and congrats for the progress this year.

聽起來不錯。謝謝，並祝賀今年的進步。

Thank you very much. Thanks for joining.

非常感謝。感謝您的加入。

We have reached the end of the question-and-answer session. And I will now turn the call over to Jeff for closing remarks.

我們的問答環節已經結束。我現在將把電話轉給傑夫，讓他發表結束語。

Thank you, everyone, for joining our call today. We appreciate your time to hear about the progress and performance. If you have any questions, please reach out to ir@isunnergy.com. Thank you and have a great day.

謝謝大家今天加入我們的電話會議。我們感謝您抽出時間來了解進度和表現。如果您有任何疑問，請聯絡 ir@isunnergy.com。謝謝您，祝您有美好的一天。

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

今天的會議到此結束，此時您可以掛斷電話了。感謝您的參與。