Orbital Infrastructure Group Inc (OIG) 2022 Q3 法說會逐字稿

Good morning, everyone, and welcome to the Orbital Infrastructure Group's Third Quarter 2022 Conference Call.

大家早上好，歡迎來到軌道基礎設施集團 2022 年第三季度電話會議。

(Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Kevin McGrath, Investor Relations. Please go ahead, sir.

（操作員說明）提醒一下，正在錄製此會議。我現在想把會議轉交給你的主持人，投資者關係部的 Kevin McGrath 先生。請繼續，先生。

Thank you, Colby, and good morning, everyone, and welcome to Orbital Infrastructure Group's Third Quarter 2022 Conference Call. Earlier this morning, the company issued a press release for its third quarter 2022 earnings results. A copy of this release is available in the Newsroom under the Investor Relations section of the company's website.

謝謝科爾比，大家早上好，歡迎來到軌道基礎設施集團 2022 年第三季度電話會議。今天上午早些時候，該公司發布了 2022 年第三季度財報的新聞稿。本新聞稿的副本可在公司網站投資者關係部分的新聞編輯室獲取。

Speaking on today's call are Jim O'Neil, Vice Chairman and Chief Executive Officer; and Nick Grindstaff, Chief Financial Officer. Today, management will review the highlights and financial results for the third quarter as well as recent developments. Following the formal remarks, management will answer questions.

在今天的電話會議上發言的有副董事長兼首席執行官 Jim O'Neil；首席財務官 Nick Grindstaff。今天，管理層將回顧第三季度的亮點和財務業績以及近期的發展。在正式發言後，管理層將回答問題。

I would also like to remind everyone that today's call will contain certain forward-looking statements made under the Securities Act of 1933 and Securities and Exchange Act of 1934 as amended. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. Company may experience significant fluctuations in future operating results due to a number of economic, competitive and other factors, such as COVID-19, the company's reliance on third-party manufacturers, supply and service providers, government agency, budgetary and political constraints, new increased competition, changes in the market demand and the performance or liability of its products, integrated solutions and services.

我還想提醒大家，今天的電話會議將包含根據 1933 年證券法和經修訂的 1934 年證券交易法作出的某些前瞻性陳述。此類陳述存在風險和不確定性，可能導致實際結果與前瞻性陳述中預測的結果存在重大差異。由於許多經濟、競爭和其他因素，例如 COVID-19、公司對第三方製造商、供應和服務提供商的依賴、政府機構、預算和政治限制、新的競爭加劇、市場需求變化以及其產品、集成解決方案和服務的性能或責任。

These factors and others could cause operating results to vary significantly from those in prior periods and to those projected in the forward-looking statements. In addition, during this conference call, we will make reference to certain non-GAAP financial measures. A reconciliation of these non-GAAP financial measures are available on the Investors section of our website in our third quarter 2022 earnings press release.

這些因素和其他因素可能導致經營業績與前期業績和前瞻性陳述中預測的業績大相徑庭。此外，在本次電話會議期間，我們將參考某些非 GAAP 財務指標。在我們 2022 年第三季度收益新聞稿中的網站投資者部分，可以找到這些非 GAAP 財務措施的對賬。

Additional information with respect to these and other factors which could materially affect the company's and its operations are included in certain forms the company has filed with the Securities and Exchange Commission. These forward statements are based on information available to Orbital Infrastructure Group as of today, November 14, 2022, and the company assumes no obligation to update statements as circumstances change.

有關這些和其他可能對公司及其運營產生重大影響的因素的其他信息包含在公司向美國證券交易委員會提交的某些表格中。這些前瞻性聲明基於截至今天（2022 年 11 月 14 日）Orbital Infrastructure Group 可獲得的信息，公司不承擔根據情況變化更新聲明的義務。

That said, I'd like to turn the call over to Jim O'Neil, Vice Chairman and CEO of Orbital Infrastructure Group. Jim, please go ahead.

也就是說，我想把電話轉給 Orbital Infrastructure Group 副董事長兼首席執行官 Jim O'Neil。吉姆，請繼續。

Thank you, Kevin. Good morning, and thank you for joining us today to discuss Orbital Infrastructure Group's Third Quarter 2022 Results. Before I begin with my quarterly commentary, I want to recognize and thank our employees for serving our customers in a safe and efficient manner. Each of our employees represent the OIG brand and our efforts are recognized and very much appreciated.

謝謝你，凱文。早上好，感謝您今天加入我們討論 Orbital Infrastructure Group 的 2022 年第三季度業績。在開始我的季度評論之前，我想表彰並感謝我們的員工以安全高效的方式為我們的客戶提供服務。我們的每一位員工都代表著 OIG 品牌，我們的努力得到了認可和高度讚賞。

Now to the developments of the third quarter. Earlier this month, we announced that we were reducing both our revenue and EBITDA guidance for the full year of 2022. I am disappointed with our downward guidance revision. However, we have made much progress in advancing our infrastructure strategy throughout the year and believe the company is now positioned to accomplish several milestones in the near future.

現在來看第三季度的發展。本月早些時候，我們宣布我們將降低 2022 年全年的收入和 EBITDA 指引。我對我們向下的指引修訂感到失望。然而，我們全年在推進我們的基礎設施戰略方面取得了很大進展，並且相信公司現在可以在不久的將來實現幾個里程碑。

The primary contributor to our shortfall for the quarter and downward guidance revision for this year was in our Renewables segment, specifically ongoing losses on the Black Bear solar project. We are approximately 80% complete on this project, which we expect to be substantially completed by the end of this year. Full performance on the Black Bear project has overshadowed the progress we have achieved in our Electric Power and Telecommunications segments throughout this year.

造成我們本季度業績不佳和今年下調指引修訂的主要原因是我們的可再生能源部門，特別是黑熊太陽能項目的持續虧損。我們已完成該項目的大約 80%，我們預計該項目將在今年年底前基本完成。 Black Bear 項目的全面表現掩蓋了我們今年在電力和電信領域取得的進展。

Our consolidated results. Revenues for the quarter were $99.8 million, and our adjusted EBITDA from continuing operations was a negative $14.6 million. Without the Renewables segment losses, our adjusted EBITDA for the third quarter is 9.9% of revenues. Our Electric Power segment continues to perform as expected as we continue to provide skilled resources and specialized equipment to meet the increasing demand from our investor-owned utility customers to provide infrastructure services to maintain, upgrade and expand the electric distribution substation and infrastructure.

我們的綜合結果。本季度收入為 9980 萬美元，我們調整後的持續經營業務 EBITDA 為負 1460 萬美元。如果不考慮可再生能源部門的虧損，我們第三季度調整後的 EBITDA 佔收入的 9.9%。我們的電力部門繼續按預期表現，因為我們繼續提供熟練的資源和專業設備，以滿足投資者擁有的公用事業客戶日益增長的需求，以提供基礎設施服務，以維護、升級和擴展配電變電站和基礎設施。

Electric Power revenues were $36.7 million, and adjusted EBITDA was $6.1 million for the third quarter of 2022. We expect profitable growth in this segment over the next several years as our customers are deploying record levels of CapEx to address aging infrastructure, storm hardening, cybersecurity and grid reconfiguration from fossil fuel to renewables sources of generation.

2022 年第三季度，電力收入為 3670 萬美元，調整後的 EBITDA 為 610 萬美元。我們預計，隨著我們的客戶部署創紀錄水平的資本支出，以解決基礎設施老化、風暴硬化、網絡安全問題，未來幾年該部門的利潤將實現增長以及從化石燃料到可再生能源發電的電網重構。

In the third quarter, we did experience a reduction in segment revenues for a several-week period due to the summer as customers deferred electric distribution maintenance on critical areas of the Electric Power grid during a period of record high temperatures and elevated load on the electric power system. Our customers' decision to defer maintenance under these conditions is unusual but does happen at times when conditions warrant.

在第三季度，我們確實經歷了幾週的分部收入下降，這是由於夏季，因為在創紀錄的高溫和電力負荷增加的時期，客戶推遲了對電網關鍵區域的配電維護電源系統。我們的客戶在這些情況下決定推遲維護是不尋常的，但在條件允許的時候確實會發生。

Telecommunications segment generated $24.1 million in revenue and $4.5 million in adjusted EBITDA for the third quarter of this year. Profitable growth in this segment can be attributed to the increase in the Rural Digital Opportunity Fund, or RDOF revenues and synergies that are materializing from the 3 tuck-in acquisitions we acquired into our Telecommunications segment platform, which has broadened our capabilities, allowing us to provide additional services to existing customers and build momentum with new customers and expanded geographies.

今年第三季度，電信部門產生了 2410 萬美元的收入和 450 萬美元的調整後 EBITDA。該部門的盈利增長可歸因於農村數字機會基金的增加，或 RDOF 收入的增加以及我們在電信部門平台中收購的 3 次收購所帶來的協同效應，這擴大了我們的能力，使我們能夠為現有客戶提供額外服務，並與新客戶和擴大的地域建立聯繫。

The nation is significantly lacking the broadband and wireless infrastructure to deploy 4G LTE and 5G spectrum throughout rural areas, municipalities and in many large population centers. Telecommunication infrastructure spending will be meaningful for years to come and will provide significant opportunity for profitable growth in this segment.

該國嚴重缺乏寬帶和無線基礎設施，無法在農村地區、城市和許多大型人口中心部署 4G LTE 和 5G 頻譜。電信基礎設施支出在未來幾年將意義重大，並將為該領域的盈利增長提供重要機會。

Turning to our Renewables segment. Revenues were $39 million and adjusted EBITDA was a loss of $20.6 million for the third quarter of this year. As mentioned, losses were primarily associated with the performance on the Black Bear solar project. We are making progress on our revised renewables strategy to pursue utility-scale solar, civil and mechanical construction services as a subcontractor to solar developers and abandon our fixed price contract EPC model.

轉向我們的可再生能源部門。今年第三季度收入為 3900 萬美元，調整後的 EBITDA 虧損 2060 萬美元。如前所述，損失主要與 Black Bear 太陽能項目的績效有關。我們正在修訂的可再生能源戰略取得進展，以作為太陽能開發商的分包商尋求公用事業規模的太陽能、土木和機械建築服務，並放棄我們的固定價格合同 EPC 模式。

The primary reason for the annual financial guidance revision was poor performance in the Renewables segment as well as uncommitted solar project opportunities expected in the fourth quarter of this year that have been deferred into 2023. In addition, expected price increases for our Electric Power distribution services from an existing customer in the Eastern U.S. did not materialize. As a result, we have declined future work that was in the prior guidance.

年度財務指導修訂的主要原因是可再生能源部門表現不佳，以及預計今年第四季度未承諾的太陽能項目機會已推遲到 2023 年。此外，我們的電力分銷服務的價格預計會上漲來自美國東部的現有客戶沒有實現。因此，我們拒絕了先前指南中的未來工作。

Demand for our Electric Power infrastructure services continues to be strong, and it is prudent for us to be selective toward meeting our margin expectations. I believe the equity market does not recognize the underlying value of Orbital Infrastructure Group. Despite challenges with our capital structure and Renewables segment performance, the Electric Power and Telecommunications segments have consistently increased profitable revenues over the past 2 years. This dynamic, coupled with our ongoing conversations with capital providers gives us confidence that we will have a solution in place by year-end to restructure our balance sheet.

對我們的電力基礎設施服務的需求持續強勁，我們謹慎選擇以滿足我們的利潤率預期。我認為股票市場不認可 Orbital Infrastructure Group 的潛在價值。儘管我們的資本結構和可再生能源部門業績面臨挑戰，但電力和電信部門在過去 2 年中持續增加了盈利收入。這種動態，再加上我們與資本提供者的持續對話，讓我們相信，我們將在年底前找到一個解決方案來重組我們的資產負債表。

I will now turn the call over to Nick Grindstaff, Orbital's CFO, to provide more detail on our balance sheet, restructuring efforts and financial information for the quarter. Nick?

我現在將電話轉給 Orbital 的首席財務官 Nick Grindstaff，以提供有關我們的資產負債表、重組工作和本季度財務信息的更多詳細信息。缺口？

Thank you, Jim. Today, we announced quarterly revenues of $99.8 million for the third quarter of 2022. Loss from continuing operations net of income taxes was $141.6 million with an adjusted EBITDA loss of $14.6 million. As we stated in the past, we believe adjusted EBITDA is the best financial measure as an indicator of operational performance. You will find a reconciliation of EBITDA and adjusted EBITDA, both non-GAAP measures to loss from continuing operations, a GAAP measure as a supplement to our third quarter earnings press release. For the third quarter, GAAP loss from continuing operations was $1.22 per share. This compares to a loss from continuing operations for the third quarter of 2021 of $0.15 per share.

謝謝你，吉姆。今天，我們宣布 2022 年第三季度的季度收入為 9980 萬美元。扣除所得稅後的持續經營虧損為 1.416 億美元，調整後的 EBITDA 虧損為 1460 萬美元。正如我們過去所說，我們認為調整後的 EBITDA 是衡量運營績效的最佳財務指標。您會發現 EBITDA 和調整後的 EBITDA 的對賬，這兩種非 GAAP 衡量持續經營損失的衡量標準，作為我們第三季度收益新聞稿的補充的 GAAP 衡量標準。第三季度，持續經營的 GAAP 虧損為每股 1.22 美元。相比之下，2021 年第三季度持續經營虧損為每股 0.15 美元。

As a reminder, the financial results I'm providing today are from our continuing operations and do not include results from our Orbital Gas North America entity, which was sold in the third quarter and reclassified to discontinued operations in December of last year. Detailed results from our discontinued operations are disclosed in our Form 10-Q.

提醒一下，我今天提供的財務結果來自我們的持續經營，不包括我們的 Orbital Gas North America 實體的業績，該實體在第三季度被出售，並於去年 12 月重新分類為停產業務。我們的 10-Q 表格中披露了我們終止經營業務的詳細結果。

In the third quarter of 2022, our consolidated revenues were $99.8 million as compared to $24.8 million in the third quarter of 2021. This increase is due to acquisitions in our Electric Power and Telecommunications segment and organic growth across all operating segments. Adjusted EBITDA was a loss of $14.6 million for the quarter as compared to a loss of $6.3 million in the third quarter of 2021. The adjusted EBITDA losses for the quarter included $20.6 million loss in our Renewables segment primarily associated with the Black Bear project. Without the losses sustained in the Renewables segment, adjusted EBITDA would have been $6 million or an adjusted EBITDA margin of 9.9%.

2022 年第三季度，我們的綜合收入為 9980 萬美元，而 2021 年第三季度為 2480 萬美元。這一增長是由於電力和電信部門的收購以及所有運營部門的有機增長。調整後的 EBITDA 本季度虧損 1,460 萬美元，而 2021 年第三季度虧損 630 萬美元。本季度調整後的 EBITDA 虧損包括主要與黑熊項目相關的可再生能源部門的 2,060 萬美元虧損。如果沒有可再生能源部門遭受的損失，調整後的 EBITDA 將為 600 萬美元或調整後的 EBITDA 利潤率為 9.9%。

In the third quarter of 2022, the Electric Power segment had a slight decrease in revenues to $36.7 million compared to $41.3 million in the second quarter of 2022. Adjusted EBITDA for this segment was $6.1 million or 16.6% of revenues for the third quarter as compared to $8.1 million or 19.6% of revenues for the second quarter of 2022. As Jim discussed, the unfavorable revenue and margin trends are primarily the result of a period of deferred maintenance in the quarter.

2022 年第三季度，電力部門的收入略低於 2022 年第二季度的 4130 萬美元，降至 3670 萬美元。該部門調整後的 EBITDA 為 610 萬美元，佔第三季度收入的 16.6%到 2022 年第二季度達到 810 萬美元，佔收入的 19.6%。正如 Jim 所討論的那樣，不利的收入和利潤率趨勢主要是由於本季度的一段延遲維護造成的。

Over the same period, the Telecommunications segment increased revenues to $24.1 million, with adjusted EBITDA of $4.5 million or 18.7% as compared to revenues of $20.4 million and adjusted EBITDA of $2.7 million or 13.2% of revenues in the second quarter of 2022. These increases are due primarily to the ramp-up in construction on RDOF programs over a 5-state area, operational synergies from tuck-in acquisitions and absorption of fixed costs through organic growth.

同期，電信部門的收入增加到 2410 萬美元，調整後的 EBITDA 為 450 萬美元或 18.7%，而 2022 年第二季度的收入為 2040 萬美元，調整後的 EBITDA 為 270 萬美元或收入的 13.2%。這些增長這主要是由於 RDOF 項目在 5 個州地區的建設、收購帶來的運營協同效應以及通過有機增長吸收固定成本。

The Renewables segment had revenues of $39 million and adjusted EBITDA loss of $20.6 million in the quarter compared to revenues of $32.3 million and an adjusted EBITDA loss of $4.8 million in the second quarter of 2022. As previously stated, operational performance issues on the Black Bear project was the primary contributor to the disappointing results for this segment.

可再生能源部門本季度的收入為 3900 萬美元，調整後的 EBITDA 虧損為 2060 萬美元，而 2022 年第二季度的收入為 3230 萬美元，調整後的 EBITDA 虧損為 480 萬美元。如前所述，Black Bear 的運營績效問題項目是該部分令人失望的結果的主要原因。

Certain holding company costs exist outside of the defined operating segments. For the third quarter, these costs were $4.6 million. Total backlog was $472.3 million at the end of the third quarter of 2022, a 4.6% decrease from the second quarter of this year. This is due to a 51.6% decrease in backlog in the Renewables segment as the utility scale solar EPC contracts near completion, offset by 4.2% and 3.2% increase in backlog in the Electric Power and Telecommunications segments, respectively.

某些控股公司成本存在於定義的經營分部之外。第三季度，這些成本為 460 萬美元。截至 2022 年第三季度末，積壓訂單總額為 4.723 億美元，比今年第二季度下降 4.6%。這是由於公用事業規模的太陽能 EPC 合同接近完成，可再生能源部門的積壓訂單減少了 51.6%，分別被電力和電信部門的積壓訂單增加 4.2% 和 3.2% 所抵消。

The significant increase in backlog for the Electric Power and Telecommunications segments over sequential quarters is an indication of increasing demand for the services we provide in these markets. We have talked about the efforts underway to restructure the balance sheet. Substantial debt service continues to be a factor that puts pressure on our cash flow. Continued improvement in the performance of our Electric Power and Telecommunication segments is attractive to both debt and equity providers. We are in the advanced stages of this process with multiple capital providers and believe we will be in a position to provide more definitive information to the market in the coming weeks.

電力和電信部門連續幾個季度的積壓顯著增加表明對我們在這些市場提供的服務的需求不斷增加。我們已經談到了重組資產負債表的努力。大量償債仍然是給我們的現金流帶來壓力的一個因素。我們電力和電信部門業績的持續改善對債務和股權提供者都具有吸引力。我們正處於與多個資本提供者合作的這一過程的後期階段，相信我們將能夠在未來幾週內向市場提供更明確的信息。

Turning to guidance. On November 2, 2022, the company announced its updated financial guidance for the full year 2022. The company lowered its full year 2022 consolidated revenue guidance to a range of $350 million to $375 million from its previous range of $405 million to $450 million and lowered its full year 2022 adjusted EBITDA to a range of $4 million to $6 million from its previous range of $38 million to $43 million. This reduction in guidance was primarily due to the losses incurred in the quarter on the Black Bear project. Also contributing was uncommitted work in the Renewables segment being deferred to 2023. To a lesser extent, there was deferred electric distribution maintenance in the third quarter and a reduction in work for the remainder of the year for an Electric Power segment customer that did not meet our profitability objectives.

轉向指導。 2022 年 11 月 2 日，公司公佈了 2022 年全年的最新財務指引。公司將 2022 年全年綜合收入指引從之前的 4.05 億美元至 4.5 億美元下調至 3.5 億美元至 3.75 億美元，並下調了其 2022 年全年調整後的 EBITDA 從之前的 3800 萬美元至 4300 萬美元調整至 400 萬至 600 萬美元。指引的減少主要是由於本季度黑熊項目產生的虧損。可再生能源部門未承諾的工作也被推遲到 2023 年。在較小程度上，第三季度的配電維護工作被推遲，電力部門客戶在今年剩餘時間的工作量減少，未滿足我們的盈利目標。

Our segment guidance is as follows. As it relates to the Electric Power segment, we believe 2022 revenues will range between $155 million to $160 million with adjusted EBITDA margins to be in excess of 20%. In our Telecommunications segment, we expect revenues in the range of $85 million to $90 million with adjusted EBITDA margin expectations for this segment in the mid-teens. Finally, in our Renewables segment for the full year of 2022, we anticipate revenues in the range of $110 million to $120 million. We do not anticipate additional material losses for this segment's outlook at this time. Certain holding company costs exist outside of the defined operating segments. We estimate these costs to be $16 million for 2022.

我們的部門指導如下。由於涉及電力部門，我們認為 2022 年的收入將在 1.55 億美元至 1.6 億美元之間，調整後的 EBITDA 利潤率將超過 20%。在我們的電信部門，我們預計收入在 8500 萬美元至 9000 萬美元之間，調整後的 EBITDA 利潤率預期在十幾歲左右。最後，在我們 2022 年全年的可再生能源部門，我們預計收入在 1.1 億至 1.2 億美元之間。我們預計目前該部門的前景不會出現額外的重大損失。某些控股公司成本存在於定義的經營分部之外。我們估計 2022 年這些成本為 1600 萬美元。

Now I will turn the call back over to Jim.

現在我將把電話轉回給吉姆。

Thank you, Nick. I believe our current stock price is a result of our challenged balance sheet and poor performance in the quarter. These disappointing third quarter results are primarily attributed to a single EPC project in the Renewables segment. The Electric Power and Telecommunications segments have performed beyond expectations throughout the year, and I'm highly confident that profitable growth will continue in these segments for years to come. Coupled with the shift away from providing fixed price EPC construction services in the Renewables segment, we are positioned to provide predictable and recurring profitability going forward.

謝謝你，尼克。我認為我們目前的股價是我們資產負債表面臨挑戰和本季度業績不佳的結果。這些令人失望的第三季度業績主要歸因於可再生能源領域的單一 EPC 項目。電力和電信部門全年的表現超出預期，我非常有信心這些部門在未來幾年將繼續實現盈利增長。再加上從可再生能源領域提供固定價格 EPC 建設服務的轉變，我們有能力在未來提供可預測和經常性的盈利能力。

We believe we are very close to a balance sheet solution that will significantly improve the burdensome debt structure that exists today. Our revised business model and restructured balance sheet will significantly improve our cash flow and provide us the ability to self-fund organic growth, which we believe is the best force of action to achieve positive momentum in our stock price.

我們相信我們非常接近資產負債表解決方案，它將顯著改善當今存在的沉重債務結構。我們修改後的業務模式和重組後的資產負債表將顯著改善我們的現金流，並為我們提供自籌資金的有機增長能力，我們認為這是實現股價積極勢頭的最佳行動力量。

Operator, that concludes our prepared remarks. I'll now open the call to Q&A.

接線員，我們準備好的發言到此結束。我現在打開問答環節。

(Operator Instructions)

（操作員說明）

Your first question comes from the line of Eric Stine from Craig Hallum.

你的第一個問題來自 Craig Hallum 的 Eric Stine。

So I guess, first of all, good to hear the confidence in the capital structure solution here by year-end, I guess, we'll stay tuned on that. But maybe just as we think about fourth quarter, obviously -- I mean, your guidance does imply a pretty meaningful step-up in EBITDA, and I know that's related to solar, but just maybe how things have trended quarter-to-date visibility you've got into that improvement and the solar challenges there are kind of ring-fenced and will be wrapped up by the end of the year?

所以我想，首先，很高興在年底之前聽到對資本結構解決方案的信心，我想，我們會繼續關注這一點。但也許就像我們考慮第四季度一樣，很明顯 - 我的意思是，你的指導確實意味著 EBITDA 的一個非常有意義的提升，我知道這與太陽能有關，但也許事情如何趨勢季度至今的可見性你已經進入了那個改進，那裡的太陽能挑戰有點像圍欄，並將在今年年底結束？

So electric and telecom are selling beyond expectations. Like I said on the call, Eric, telecom has grown threefold from when we bought GTS in -- about 18 months ago. And their margins have gone up significantly as we leverage synergies and continue to ramp up on these odd-off opportunities, which we believe will be around for many years to come. Electric Power is doing real well. They're back on the run rate that we expect them to be after the third quarter shortfalls that were caused during about a 2- or 3-week period. Solar, the losses that we provided were as of 2 weeks ago or so when we closed out the book. On EPC projects, you recognize those losses as you expect them are experiencing. So that isn't a non-30 number.

因此，電力和電信的銷售超出預期。就像我在電話中說的那樣，埃里克，自從我們在大約 18 個月前購買 GTS 以來，電信已經增長了三倍。隨著我們利用協同效應並繼續增加這些奇怪的機會，他們的利潤率大幅上升，我們相信這些機會將持續多年。電力做得很好。在大約 2 或 3 週期間造成的第三季度短缺之後，他們回到了我們預期的運行率。 Solar，我們提供的損失是 2 週前左右我們關閉賬簿時的情況。在 EPC 項目中，您會像預期的那樣認識到這些損失。所以這不是一個非 30 的數字。

So we feel with that project being close to completion that hopefully we won't have another quarter like we did in the third quarter. And certainly, going into next year, we feel really good about the business and the recurring nature of the revenue streams as we move into the new EPC -- the new model on solar, not to pursue fixed-price EPC and the continuation of our Telecommunication and Electric Power segment revenue opportunities, which I feel really good about.

因此，我們覺得該項目即將完成，希望我們不會像第三季度那樣有另一個季度。當然，進入明年，我們對業務和收入流的經常性感到非常滿意，因為我們進入了新的 EPC——太陽能的新模式，而不是追求固定價格的 EPC 和我們的延續電信和電力部門的收入機會，我對此感覺非常好。

Got you. And then just maybe to, I don't know, close the book or trying to get past the solar challenges. I guess, first of all, I mean, maybe some of the changes you've made in that segment, I mean, obviously, you're making a shift more or away from EPC, but just operational changes, obviously, this thing must have been miss-bid, executional issues. So maybe just some color there so to give people confidence...

明白了然後可能只是，我不知道，合上書或試圖克服太陽能挑戰。我想，首先，我的意思是，也許你在該領域所做的一些改變，我的意思是，很明顯，你正在更多地或遠離 EPC，但只是運營上的改變，顯然，這件事必須一直是投標失敗，執行問題。所以也許那裡只有一些顏色可以給人們信心......

Look, it's all of the above. I mean we had some challenges on. I mean it was a competitively bid job. We were the lowest bidder. And we had some operational challenges on the project out of the gate. And when that happens, you can't get behind on these EPC projects because you're always in the catch-up mode. So we made some leadership changes in the spring that I'm confident about, and we're pursuing our new renewables strategy to pursue more civil and mechanical scope of work under much better contract structures from a risk standpoint, but we've got to get through and finish these jobs we're on.

看，就是上面這些了。我的意思是我們遇到了一些挑戰。我的意思是這是一份競爭激烈的投標工作。我們是出價最低的人。我們在項目一開始就遇到了一些運營挑戰。當這種情況發生時，您就無法在這些 EPC 項目上落後，因為您始終處於追趕模式。因此，我們在春季進行了一些我有信心的領導層變動，我們正在推行新的可再生能源戰略，從風險的角度來看，在更好的合同結構下追求更多的民用和機械工作範圍，但我們必須通過並完成我們正在進行的這些工作。

The Black Bear is the one that's particularly been a challenge. The other project, the Happy project is going much better. But both should be done by -- yes, but both should be done. The Happy projects should be done by the end of the first quarter next year.

黑熊是一個特別具有挑戰性的動物。另一個項目，快樂項目進展得更好。但這兩者都應該由-- 是的，但兩者都應該完成。 Happy項目應該在明年一季度末完成。

Okay. And then maybe last one for me. I mean does this change given the new role and getting away from EPC, does this change the visibility at all in that work. I mean I know sometimes while it's very lumpy and visibility can be tough anyways. But I mean, does this materially change that? Or is it pretty much the same given you still have a high level of involvement?

好的。然後也許是我的最後一個。我的意思是，考慮到新角色並遠離 EPC，這種變化是否會改變這項工作的可見性？我的意思是我知道有時候雖然它非常崎嶇不平，但無論如何能見度都很難。但我的意思是，這會從本質上改變它嗎？或者如果你仍然有很高的參與度，它幾乎是一樣的嗎？

I think -- I actually think it improves visibility somewhat. It's still not the visibility we have in electric power and telecom. But when you're pursuing an EPC project, those can be very lumpy. Now we're going to provide services to many different EPC providers. So -- well, there still may be some lumpiness. It should be better visibility because of the diversity of the customers that we can work for and the opportunities versus being on 1 or 2 EPC projects at a time. That can be pretty lumpy.

我認為——我實際上認為它在一定程度上提高了知名度。這仍然不是我們在電力和電信領域的知名度。但是當你追求 EPC 項目時，這些可能會非常不穩定。現在我們要為許多不同的 EPC 供應商提供服務。所以 - 好吧，仍然可能會有一些腫塊。它應該是更好的可見性，因為我們可以為之工作的客戶的多樣性以及與一次處理 1 個或 2 個 EPC 項目相比的機會。那可能會很不穩定。

Your next question comes from the line of Jeffrey Campbell from Alliance Global.

您的下一個問題來自 Alliance Global 的 Jeffrey Campbell。

First, can you talk about the legacy renewables in relation to the current backlog? And how much of the current backlog still has the old business model in it?

首先，您能談談與當前積壓訂單相關的遺留可再生能源嗎？目前積壓的訂單中有多少仍然包含舊的商業模式？

Yes, that's all actually all legacy EPC that we're burning off. We do have opportunities that we were hopeful we would have transacted this quarter in our new renewables model, doing primarily mechanical, scope of work, and some file driving. Those opportunities are still there. We're close to signing some contracts that will go into backlog. But I would say that all of the Renewables backlog right now is associated with the remaining construction that needs to be completed on the Happy and Black Bear projects.

是的，這實際上就是我們正在燒毀的所有遺留 EPC。我們確實有機會希望我們本季度能夠在我們新的可再生能源模型中進行交易，主要進行機械、工作範圍和一些文件驅動。那些機會仍然存在。我們即將簽署一些將積壓的合同。但我要說的是，目前所有可再生能源積壓都與 Happy 和 Black Bear 項目需要完成的剩余建設有關。

I was just wondering, I mean high level, can you give us some kind of idea of what revenue levels and margins as a special contractor might look like as compared to prior guidance as EPC? Meaning, will it likely be a lower chunk of revenue, but with better margins? Or what is it going to look like?

我只是想知道，我的意思是高層，你能給我們一些想法，與之前作為 EPC 的指導相比，作為特殊承包商的收入水平和利潤率可能是什麼樣的嗎？意思是，它可能會佔收入的一小部分，但利潤率更高嗎？或者它會是什麼樣子？

Ironically, they should be better. Typically, when you do an EPC project, you do have more margins in that project because you're taking more risk. But since we were splitting margins with our joint venture partner, we actually will make better margins, providing a mechanical scope or civil scope of work under our new construct the margins will be better. I mean you typically shoot for 15% margin at the project level and you build in some contingency for some risk. But on the EPC projects, we were expecting about a high single-digit return. So I would say that the margin we're pursuing, this less risky strategy will be close to double what we would have expected in the EPC model.

具有諷刺意味的是，它們應該更好。通常，當您執行 EPC 項目時，您確實在該項目中獲得了更多利潤，因為您承擔了更多風險。但由於我們與我們的合資夥伴分享利潤，我們實際上會獲得更好的利潤，在我們的新結構下提供機械範圍或民用工作範圍，利潤會更好。我的意思是，您通常會在項目級別爭取 15% 的利潤率，並為某些風險建立一些應急措施。但在 EPC 項目上，我們期望獲得高個位數的回報。所以我想說我們追求的利潤率，這種風險較低的策略將接近我們在 EPC 模型中預期的兩倍。

Okay. And that implies that going forward with the new special contractor model, you're not going to be having a joint venture partner and can't display anything. Is that correct?

好的。這意味著繼續使用新的特殊承包商模型，您將不會擁有合資夥伴並且無法展示任何東西。那是對的嗎？

That's correct. That is correct.

這是正確的。那是對的。

And just to ask the question again since you gave a great answer on the margins. Should we expect similar types of revenue levels as a special contractor? Or are they likely to be lower but less lumpy as you discussed a little bit earlier. Just kind of trying to get some feel for revenue.

既然你在空白處給出了很好的答案，那麼再問一遍這個問題。我們是否應該期望與特殊承包商類似的收入水平？或者它們是否可能像您之前討論的那樣更低但不那麼塊狀。只是想對收入有所了解。

Yes. I mean we're going to want to provide more color on that probably at the end of -- on our fourth quarter earnings call. But I do expect us to build to meaningful backlog in that segment comparable to what we would have expected as an EPC provider, right? So we're -- obviously, we need to build and it's going to ramp. But we're looking at right now some projects that are in the $20 million to $25 million range. And if you can get a few of those signed up, which I do expect some momentum, we could have some meaningful backlog to announce by the end of the fourth quarter on our call in February.

是的。我的意思是，我們可能希望在第四季度財報電話會議結束時提供更多顏色。但我確實希望我們在該領域建立有意義的積壓，與我們作為 EPC 供應商的預期相當，對吧？所以我們 - 顯然，我們需要構建並且它會逐漸增加。但我們現在正在研究一些價值在 2000 萬至 2500 萬美元之間的項目。如果你能讓其中一些人簽約，我確實希望有一些勢頭，我們可能會在第四季度末在 2 月份的電話會議上宣布一些有意義的積壓工作。

Okay. No, that's helpful. With regard to telecommunications, I just wondered, it sounds like the business itself is running great. Is it bidding on any new projects currently?

好的。不，那很有幫助。關於電信，我只是想知道，聽起來業務本身運行良好。目前有沒有新的項目在投標？

We're actually not bidding on any work. It's all negotiated. I would say the greater majority, 80% to 90% of what we do is trying to satisfy our current customers where we've built relationships, trying to meet their growth needs going forward. So it's a good environment to be in right now, both in electric power and telecommunication because we A lot of what we do is -- most of what we do is not bid. We're just negotiating and partnering with customers to continue to meet their growth needs going forward.

我們實際上並沒有競標任何作品。一切都經過協商。我想說的是，我們所做的大部分工作，80% 到 90% 都是在努力滿足我們已經建立關係的現有客戶，努力滿足他們未來的增長需求。所以現在在電力和電信領域都是一個很好的環境，因為我們所做的很多事情都是——我們所做的大部分事情都不是投標。我們只是與客戶進行談判和合作，以繼續滿足他們未來的增長需求。

Okay. That's good. And my last question is, do we expect any kind of windfall performance in the Electric Power due to the heavy hurricane season that we've been experiencing in the Southeast U.S.?

好的。那挺好的。我的最後一個問題是，由於我們在美國東南部經歷的嚴重颶風季節，我們是否期望電力公司有任何意外收穫？

So the customers that we work for, they had so much work going on at it's critical in nature that we didn't get to release, but the non-accruals that we stated are, I believe, in the press release that we did during the hurricane. So I don't think there'll be any windfall. Obviously, we'll have some good margins. We were there for probably 2 weeks maybe with non-accruals. So it will be additive, but it's not going to be material.

所以我們為之工作的客戶，他們有太多的工作正在進行，這在本質上是至關重要的，我們沒有發布，但我相信，我們所說的非應計項目是在我們在期間所做的新聞稿中颶風。所以我認為不會有意外之財。顯然，我們會有一些不錯的利潤。我們可能在那里呆了 2 週，可能沒有應計費用。所以它將是附加的，但它不會是物質的。

There are no further questions at this time. I will now turn the call back over to Jim O'Neil, CEO, for closing remarks.

目前沒有其他問題。我現在將把電話轉回給首席執行官吉姆奧尼爾，讓他發表結束語。

Thank you all for participating on our third quarter call today. We hope everybody has a great day, and we look forward to following up with many of you in the future. Thank you, and goodbye.

感謝大家今天參加我們的第三季度電話會議。我們希望每個人都有一個美好的一天，我們期待著在未來與你們中的許多人一起跟進。謝謝，再見。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連接。