Spruce Power Holding Corp (SPRU) 2025 Q1 法說會逐字稿

Hello, and thank you for standing by. My name is Lacey, and I will be your conference operator today. At this time, I would like to welcome everyone to the Spruce Power first-quarter 2025 earnings conference call. (Operator Instructions)

您好，感謝您的支持。我叫萊西 (Lacey)，今天我將擔任您的會議主持人。現在，我歡迎大家參加 Spruce Power 2025 年第一季財報電話會議。（操作員指示）

At this time, I would like to turn the call over to Scott Kozak, Director of Investor Relations. Sir, you may go ahead.

現在，我想將電話轉給投資者關係總監 Scott Kozak。先生，您可以繼續。

Thank you, operator. Good afternoon, everyone, and welcome to Spruce Power's first-quarter 2025 earnings conference call. Joining me today are Chris Hayes, Spruce's Chief Executive Officer; and Sarah Wells, our Chief Financial Officer and Head of Sustainability.

謝謝您，接線生。大家下午好，歡迎參加 Spruce Power 2025 年第一季財報電話會議。今天與我一起出席的還有 Spruce 執行長 Chris Hayes 和我們的財務長兼永續發展主管 Sarah Wells。

Before we begin, I would like to remind you that we will comment on our financial performance using both GAAP and non-GAAP financial measures. Important information about these non-GAAP financial measures, including reconciliations to the comparable GAAP measures is included in our earnings release for the first quarter of 2025.

在我們開始之前，我想提醒您，我們將使用 GAAP 和非 GAAP 財務指標來評論我們的財務表現。有關這些非 GAAP 財務指標的重要資訊（包括與可比較 GAAP 指標的對帳）包含在我們 2025 年第一季的收益報告中。

Our discussion will also include forward-looking statements. These statements are not statements of historical fact, reflect our current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed. There could be no assurance that actual performance will not differ materially from any future expectations or results expressed or implied by these forward-looking statements. We undertake no obligation to publicly revise or update any forward-looking statement, except as required by applicable law.

我們的討論還將包括前瞻性陳述。這些陳述並非歷史事實，僅反映我們目前的預期，並受風險和不確定性的影響，可能導致實際結果與所表達的結果有重大差異。無法保證實際績效不會與這些前瞻性陳述所表達或暗示的任何未來預期或結果有重大差異。除適用法律要求外，我們不承擔公開修改或更新任何前瞻性聲明的義務。

Please refer to our earnings release and our other SEC filings for further discussion of Spruce Power's risk factors and other important information regarding our forward-looking statements. All comments made during today's call are subject to that Safe Harbor statement.

有關 Spruce Power 的風險因素和有關我們前瞻性陳述的其他重要資訊的進一步討論，請參閱我們的收益報告和其他 SEC 文件。今天電話會議上發表的所有評論均受該安全港聲明的約束。

With that, I will turn it over to Chris.

說完這些，我將把麥克風交給克里斯。

Thanks, Scott, and hello, everyone. Our first-quarter results reflected the positive impact of last year's acquisition of rooftop assets from NJR, New Jersey Resources. Revenue grew 30% from the year earlier period, and operating EBITDA increased 15%. Our balance sheet remains robust with close to $100 million in cash, the majority of which is unrestricted. We are excited by the opportunities ahead of us in 2025 and are actively seeking new acquisition opportunities that meet our disciplined return hurdles.

謝謝，斯科特，大家好。我們第一季的業績反映了去年從新澤西資源公司 (NJR) 收購屋頂資產的正面影響。營收較上年同期成長 30%，營業 EBITDA 成長 15%。我們的資產負債表依然強勁，擁有近 1 億美元現金，其中大部分是不受限制的。我們對 2025 年面臨的機會感到興奮，並積極尋找符合我們嚴格的回報門檻的新收購機會。

Spruce is determined to achieve our goal of generating positive free cash flow. We believe our path to achieving that objective is continued growth and scale in our portfolio of solar installations, coupled with a prudent cost containment. Spruce generates predictable recurring revenue and cash flow from the approximately 85,000 home solar assets and contracts we own and operate and roughly 60,000 residential solar systems that we service as a third party.

Spruce 決心實現產生正自由現金流的目標。我們相信，實現這一目標的途徑是繼續擴大太陽能裝置組合的成長和規模，同時審慎地控製成本。Spruce 透過我們擁有和營運的約 85,000 個家庭太陽能資產和合約以及我們作為第三方提供服務的約 60,000 個住宅太陽能係統產生可預測的經常性收入和現金流。

This is a great foundation for our business, but to meet our free cash flow objective, we need to scale our business with acquisitions of installed systems and programmatic offtake partnerships as well as through the growth of Spruce PRO servicing. We continue to take a disciplined approach to portfolio acquisitions, only purchasing assets that meet our internal rate of return requirements. We believe this discipline has served us well, but it can also slow down growth when market conditions are challenging, which is the case now.

這對我們的業務來說是一個很好的基礎，但為了實現我們的自由現金流目標，我們需要透過收購已安裝的系統和程式化承購合作夥伴關係以及透過 Spruce PRO 服務的成長來擴大我們的業務。我們持續採取嚴謹的投資組合收購方式，只購買符合我們內部報酬率要求的資產。我們相信這種紀律對我們很有幫助，但當市場條件嚴峻時，它也會減緩成長，而現在就是這種情況。

Thus far, in 2025, we have proceeded cautiously with new growth opportunities, given uncertainty and rapidly shifting dynamics across the market. Our cash burn during the period reflected normal winter seasonality, combined with a small delay in the start of payment collections of the assets acquired from NJR, which dampened revenue.

到目前為止，考慮到整個市場的不確定性和快速變化的動態，我們在 2025 年一直謹慎地對待新的成長機會。我們在此期間的現金消耗反映了正常的冬季季節性，再加上從 NJR 收購的資產的付款開始略有延遲，這抑制了收入。

Spruce PRO is off to a good start with the ADT deal, and we expect that revenue to ramp up gradually in the months ahead. So the immediate top line impact was not significant. Down the P&L, costs are still running a bit hot as we roll off the earlier-than-expected operations and maintenance or O&M expenses we began experiencing last year. Overall, our O&M expenses remained outsized in the first quarter of 2025 compared to our long-term expectations. Although to give you a sense for trajectory, we did spend less O&M dollars sequentially.

Spruce PRO 與 ADT 交易取得了良好的開端，我們預計未來幾個月收入將逐步增加。因此，直接的收入影響並不顯著。從損益表中可以看出，由於我們取消了去年開始經歷的早於預期的營運和維護或 O&M 費用，成本仍然有點高。整體而言，與我們的長期預期相比，2025 年第一季我們的營運和維護費用仍然過高。儘管為了讓您了解發展軌跡，但我們的營運和維護費用確實連續減少了。

Spruce experienced higher O&M expenses beginning in 2024 with the early arrival of anticipated maintenance. Initially, we did not have a technology platform or team in place to optimize the management of resources such as when to roll a truck or ensuring the truck was carrying the right componentry to complete the job. This led to inefficiency and added costs. However, we are confident that the O&M initiatives we have put in place will drive a material decrease in this expense line in the second through fourth quarters of this year.

由於預期維護的提前到來，Spruce 從 2024 年開始經歷了更高的 O&M 費用。最初，我們沒有技術平台或團隊來優化資源管理，例如何時推出卡車或確保卡車運載正確的零件來完成工作。這導致效率低下並增加成本。然而，我們相信，我們實施的營運和維護措施將推動今年第二季至第四季該項費用大幅下降。

Changes implemented over the past year include the onboarding of experienced hires, technology investments and a revamped strategy to intelligently route service calls from customers, limit truck rolls, rightsize inventory on the truck and appropriately manage to the customer contract in the most cost-effective manner possible. The platform and detailed operational strategy we implemented began producing the results we are seeking in late February and has continued to gain ground thus far in the second quarter. We believe these improvements are sustainable and will sharply reduce O&M expense as 2025 progresses.

過去一年實施的變革包括聘用經驗豐富的員工、技術投資和改進的策略，以智慧地轉接客戶的服務電話、限制上門服務、調整卡車上的庫存規模並以最具成本效益的方式適當地管理客戶合約。我們實施的平台和詳細的營運策略在二月底開始產生我們所期望的結果，並且在第二季迄今繼續取得進展。我們相信這些改進是可持續的，並且隨著 2025 年的到來將大幅降低營運和維護費用。

In addition, we are making operational enhancements through strategic sourcing and procurement and better vendor management. We believe these efforts will drive improved operating efficiency and margin expansion in 2025. We expect these cost containment actions are transitioning the business toward a more sustainable model with the financial resources and liquidity needed to support our long-term strategy.

此外，我們正在透過策略採購和更好的供應商管理來改善營運。我們相信，這些努力將推動2025年營運效率的提高和利潤率的擴大。我們預計，這些成本控制措施將使業務轉向更永續的模式，並提供支持我們長期策略所需的財務資源和流動性。

Next, I will discuss each of the company's key revenue drivers. Executing on these initiatives is imperative for achieving the scale we need to achieve positive free cash flow. The first revenue driver is opportunistic M&A. This is when Spruce acquires portfolios of installed systems, then sells additional services and leverages strategic partnerships to drive profitable expansion. We have been able to command a higher return on opportunistic M&A because of our scale and expertise in this area.

接下來，我將討論公司的每個主要收入驅動因素。執行這些措施對於實現我們實現正自由現金流所需的規模至關重要。第一個收入驅動因素是機會性併購。此時，Spruce 會收購已安裝系統的組合，然後銷售額外的服務並利用策略合作夥伴關係來推動獲利擴張。由於我們在該領域的規模和專業知識，我們能夠從機會性併購中獲得更高的回報。

Given these advantages, coupled with a limited pool of potential buyers, we're able to be selective and only pursue agreements that meet our deal terms and density objectives. The NJR acquisition that closed in November 2024, in which Spruce acquired approximately 9,800 installations in New Jersey is the most recent example of this type of transaction. To be clear, though, even an opportunistic deal, half the size of NJR would share the same deal flow characteristics, so this is a target-rich environment for Spruce.

鑑於這些優勢，再加上潛在買家數量有限，我們可以選擇性地只尋求符合我們的交易條款和密度目標的協議。NJR 收購案於 2024 年 11 月完成，Spruce 在該案中收購了新澤西州約 9,800 個設施，這是此類交易的最新例子。但需要明確的是，即使是機會主義交易，規模只有 NJR 的一半，也會具有相同的交易流程特徵，因此對於 Spruce 來說，這是一個目標豐富的環境。

The second revenue driver is programmatic offtake. At this time, I can only speak to this opportunity in general terms as we are still working to secure our first programmatic agreement. However, our expectations for programmatic as a derisked revenue driver are high. With programmatic, we are looking to acquire or potentially service newly installed systems on an ongoing basis as our partners complete them.

第二個收入驅動因素是程式化購買。目前，我只能泛泛地談論這個機會，因為我們仍在努力達成我們的第一份計劃協議。然而，我們對程序化廣告作為低風險收入驅動因素的期望很高。透過程式化，我們希望在我們的合作夥伴完成新安裝的系統時持續收購或潛在地維護新安裝的系統。

These partners may include homebuilders, legacy solar loan operators or lease originators that are pivoting into TPO or third-party ownership leases and PPAs. Increasingly, these established players want to focus on origination rather than servicing. We anticipate that our future programmatic partners will take the risk of getting systems through construction to operations, and only then will we buy or begin servicing these installations at an agreed-upon price. While this channel has long lead times, we are confident Spruce is gaining traction. And when we deploy our programmatic offtake initiative, we will ultimately generate double-digit IRRs.

這些合作夥伴可能包括房屋建築商、傳統太陽能貸款業者或轉向 TPO 或第三方所有權租賃和 PPA 的租賃發起人。這些老牌企業越來越希望將重點放在發起而非服務上。我們預計，我們未來的專案合作夥伴將承擔系統從建設到營運的風險，只有這樣，我們才會以商定的價格購買或開始維修這些裝置。雖然該渠道的交貨時間較長，但我們相信 Spruce 正在獲得發展動力。當我們部署我們的程式化承購計劃時，我們最終將產生兩位數的內部報酬率。

The third and final primary revenue driver is Spruce PRO, our third-party solar servicing platform. For this channel, we leverage the company's decade-plus experience in management of our wholly owned residential solar assets to offer a suite of services that can be tailored for third-party owners of distributed generation assets.

第三個也是最後一個主要收入驅動因素是我們的第三方太陽能服務平台 Spruce PRO。對於此管道，我們利用公司十多年來管理我們全資擁有的住宅太陽能資產的經驗，提供一套可為分散式發電資產的第三方所有者量身定制的服務。

In December 2024, we finalized a third-party agreement with ADT, covering approximately 60,000 systems. By partnering with Spruce PRO, third parties like ADT can leverage our experience and maximize productivity, uptime and efficiencies in areas such as financial asset management, billing and collections, asset operations, account services, homeowner support, IT support and implementation and finally, solar renewable energy credits, or SREC marketplace.

2024 年 12 月，我們與 ADT 達成第三方協議，涵蓋約 60,000 個系統。透過與 Spruce PRO 合作，ADT 等第三方可以利用我們的經驗，最大限度地提高金融資產管理、計費和收款、資產運營、帳戶服務、房主支援、IT 支援和實施以及太陽能可再生能源信用或 SREC 市場等領域的生產力、正常運行時間和效率。

We believe the Spruce PRO channel plays to our strengths and has strong potential to deliver capital-light growth. We have a defined and growing pipeline of potential Spruce PRO partners that include traditional residential solar players, large owners of solar installations, developers, private equity and numerous midsized and local companies that own residential and commercial and industrial or C&I solar sites. Potential scope ranges from full wrap servicing to piecemeal O&M, billing and collections, harvesting SRECs or some combination. While each of these third-party agreements will be customized, we are confident the company can source other partnerships like ADT.

我們相信 Spruce PRO 通路能夠發揮我們的優勢，並具有實現輕資本成長的巨大潛力。我們擁有明確且不斷成長的潛在 Spruce PRO 合作夥伴管道，其中包括傳統住宅太陽能企業、大型太陽能裝置所有者、開發商、私募股權以及擁有住宅、商業和工業或 C&I 太陽能場地的眾多中型和本地公司。潛在範圍包括全套服務、零碎的營運和維護、計費和收款、收集 SREC 或某種組合。雖然每個第三方協議都是客製化的，但我們相信該公司可以找到像 ADT 這樣的其他合作夥伴。

Last month, we announced a Spruce PRO partnership to monetize SRECs in California with C&I and residential solar installer Hot Purple Energy. We see considerable potential for generating high-margin cash flow by registering, managing and reporting California SRECs. Spruce is among a very small number of companies that have completed the approval process to enable monetization of dormant SREC revenue within all three of California's largest utility zones. This puts Spruce in a unique position to capitalize on a meaningful market opportunity. We are in active discussions for the rights to acquire SRECs from significant third-party installers as well as numerous midsized and local companies that own residential and C&I solar sites in the state.

上個月，我們宣布與 Spruce PRO 建立合作夥伴關係，與 C&I 和住宅太陽能安裝商 Hot Purple Energy 合作，將加州的 SREC 貨幣化。我們看到透過註冊、管理和報告加州 SREC 產生高利潤現金流的巨大潛力。Spruce 是極少數已完成審批流程的公司之一，能夠在加州三大公用事業區內將閒置的 SREC 收入貨幣化。這使得 Spruce 處於獨特的地位，可以利用有意義的市場機會。我們正在積極討論從重要的第三方安裝商以及在該州擁有住宅和 C&I 太陽能場地的眾多中型和本地公司獲取 SREC 的權利。

We have already completed the hard work of creating a Spruce PRO servicing infrastructure capable of handling portfolios that come to market. This is a difficult business, but many do not have the platform or experience to service successfully. Importantly, for us and our shareholders, Spruce PRO is unlevered, and there will be no debt financing associated with these agreements.

我們已經完成了創建 Spruce PRO 服務基礎設施的艱苦工作，該設施能夠處理進入市場的投資組合。這是一項困難的業務，但許多人沒有平台或經驗來成功提供服務。重要的是，對於我們和我們的股東而言，Spruce PRO 是無槓桿的，並且這些協議不會涉及任何債務融資。

As we prepare, plan and execute our business development strategy, there are a few overarching themes to point out. First, we are in an environment of pent-up demand for TPO residential solar as utility rates continue to increase, driven by higher load levels. Further, there is a lot of solar going in. Originators want the developer fee, but many don't want to own or service the installations over the long term.

在我們準備、規劃和執行業務發展策略時，有幾個總體主題需要指出。首先，由於負載水準提高，公用事業費率持續上漲，我們正處於對TPO住宅太陽能被壓抑的需求環境中。此外，還有大量的太陽能進入。發起人想要獲得開發費用，但許多人不想長期擁有或維護這些設施。

While it is incumbent on us to deliver on the opportunities in our business development pipeline, I will reiterate that the revenue and cash flows generated by the installations we already own and service remain highly predictable, whether conditions in the residential solar sector are favorable or distressed.

雖然我們有責任抓住業務發展管道中的機會，但我要重申，無論住宅太陽能產業的狀況是有利還是不利，我們已擁有和服務的裝置所產生的收入和現金流仍然具有高度可預測性。

We are confident in our ability to identify, structure and execute new agreements that add shareholder value. While our investments and revenue drivers have weighed on near-term profitability, we are confident they will position us to cost effectively participate in the largest and fastest growing parts of the residential solar market.

我們有信心確定、建構和執行能夠增加股東價值的新協議。雖然我們的投資和收入驅動因素對短期獲利能力造成了壓力，但我們相信，它們將使我們能夠以經濟有效的方式參與住宅太陽能市場中最大、成長最快的部分。

As we scale up, I wanted to highlight the hiring of Chris Hayden as Senior Vice President of IT and Enterprise Applications. Chris will focus on advancing Spruce's service platform, scaling the Spruce PRO service offering and driving innovation across the company's IT function, including strategy, infrastructure, application development and security. Chris previously served as Chief Technology Officer and Executive Vice President at Sunnova and has deep expertise in the solar industry. At Spruce, he will be focused on optimizing technology to drive scalability and accelerate growth with a strong focus on the customer experience.

隨著我們規模的擴大，我想強調聘請 Chris Hayden 擔任 IT 和企業應用資深副總裁。Chris 將專注於推進 Spruce 的服務平台，擴展 Spruce PRO 服務產品，並推動公司 IT 職能（包括策略、基礎設施、應用程式開發和安全）的創新。Chris 曾擔任 Sunnova 的技術長和執行副總裁，在太陽能產業擁有深厚的專業知識。在 Spruce，他將專注於優化技術以推動可擴展性並加速成長，同時專注於客戶體驗。

Before concluding, I wanted to highlight that we do not need to refinance any of the nonrecourse debt associated with our portfolios in 2025. With that said, we always keep the lines of communication open with creditors and the feedback we are receiving leads us to believe that we can roll over our first debt maturity associated with our SP1 portfolio and due in April 2026 on like-for-like terms if we choose to proceed.

最後，我想強調的是，我們不需要在 2025 年為與我們的投資組合相關的任何無追索權債務進行再融資。話雖如此，我們始終與債權人保持溝通管道暢通，我們收到的反饋使我們相信，如果我們選擇繼續，我們可以按同等條款展期與我們的 SP1 投資組合相關的、將於 2026 年 4 月到期的首筆債務。

In addition, we have identified additional credit options that could be even more favorable, although those options and our ability to roll financing on a like-for-like basis will be subject to ongoing developments in the financing markets.

此外，我們還確定了可能更優惠的其他信貸選擇，儘管這些選擇以及我們以同類方式進行融資的能力將取決於融資市場的持續發展。

While Spruce plans to continue to make the investments needed to execute our strategy, we believe that the actions we are taking will safeguard the funding necessary to continue our opportunistic share buyback program. I would add that Spruce's Board of Directors has approved the renewal of the company's share repurchase program as our previous program expires May 15. We remain confident the company will continue to make the investments needed to drive long-term shareholder value, and we view cost discipline as the compass that drives effective execution, helping teams stay on track to both prioritize and achieve measurable results.

雖然 Spruce 計劃繼續進行執行我們策略所需的投資，但我們相信，我們正在採取的行動將保障繼續我們機會性股票回購計畫所需的資金。我想補充一點，Spruce 董事會已經批准續簽公司股票回購計劃，因為我們先前的計劃將於 5 月 15 日到期。我們仍然相信公司將繼續進行必要的投資，以推動長期股東價值，我們將成本紀律視為推動有效執行的指南針，幫助團隊保持優先順序並實現可衡量的成果。

My last comments will be on the residential solar sector. While recent challenges in the sector are well known and although we are not immune to those factors, Spruce is differentiated. Unlike many of our peers who are heavily dependent on aggressive new customer acquisition strategies, externally financed working capital, continuous growth in new solar installations and government assistance, Spruce Power is not a seller, installer or originator of new solar installations and does not have significant fixed costs.

我的最後評論是關於住宅太陽能領域。儘管該行業最近面臨的挑戰眾所周知，而且我們無法免受這些因素的影響，但 Spruce 卻與眾不同。與我們的許多同行不同，Spruce Power 不是新太陽能裝置的銷售商、安裝商或發起者，也沒有大量的固定成本。這些同行嚴重依賴積極的新客戶獲取策略、外部融資的營運資金、新太陽能裝置的持續成長以及政府援助。

In addition, our financial health is not contingent on new sales, external capital markets or IRA investment tax credits. Rather, our business is predicated on maximizing the value of existing solar assets through operational efficiencies, maintenance and superior asset management.

此外，我們的財務健康狀況並不取決於新銷售、外部資本市場或 IRA 投資稅收抵免。相反，我們的業務是透過營運效率、維護和卓越的資產管理來最大化現有太陽能資產的價值。

Spruce maintains a clear focus and renewed intensity to deliver on our objectives. We are motivated by the progress we are seeing as we execute our strategy and realize our vision. The revenue opportunities we are pursuing and the operational improvements we are driving will support efforts to deliver a combination of performance, flexibility and value that is compelling to customers, partners, creditors, investors and other key stakeholders. That is the mindset driving us forward as we continue to build a stronger company.

Spruce 保持明確的重點和新的力度來實現我們的目標。我們在執行策略和實現願景的過程中所取得的進展激勵著我們。我們所追求的收入機會和所推動的營運改善將支持我們努力實現對客戶、合作夥伴、債權人、投資者和其他主要利害關係人有吸引力的績效、靈活性和價值的結合。當我們繼續打造更強大的公司時，這種心態將推動我們繼續前進。

Next, I'll pass it over to Sarah, who will provide a detailed review of our financial results and outlook. This will be Sarah's final quarter as CFO at Spruce as she is leaving the company to pursue another opportunity. I would like to thank Sarah for her numerous contributions to Spruce's growth and development, and we wish her the best going forward. She leaves here as a friend. We expect to announce an interim CFO soon and are engaged in a search to fill the position on a permanent basis.

接下來，我將把它交給莎拉，她將對我們的財務表現和前景進行詳細的回顧。這將是莎拉擔任 Spruce 財務長的最後一個季度，因為她將離開公司尋求其他機會。我要感謝莎拉為 Spruce 的成長和發展做出的諸多貢獻，我們祝福她未來一切順利。她以朋友的身份離開這裡。我們預計很快就會宣布臨時財務長人選，並正在尋找可以永久填補該職位的人選。

Sarah, can you please provide our financial summary?

莎拉，您能提供一下我們的財務摘要嗎？

Thank you, Chris, and good afternoon, everyone. First, I'd like to comment that it has been gratifying to contribute to Spruce's growth and development over the last seven years. I will now provide additional details regarding our first-quarter 2025 financial results.

謝謝你，克里斯，大家下午好。首先，我想說的是，過去七年來為 Spruce 的成長和發展做出貢獻是令人欣慰的。我現在將提供有關我們 2025 年第一季財務業績的更多詳細資訊。

As Chris mentioned, Spruce is taking steps to strengthen our financial position and enhance operational efficiency. First-quarter revenue was $23.8 million, up from $20.2 million in the fourth quarter, and $18.3 million in the prior year period. The increase from the year earlier period is primarily attributable to higher revenues associated with the NJR acquisition. The Spruce PRO service agreement with ADT and improved system performance made smaller contributions to the year-over-year revenue improvement.

正如克里斯所說，Spruce 正在採取措施加強我們的財務狀況並提高營運效率。第一季營收為 2,380 萬美元，高於第四季的 2,020 萬美元和去年同期的 1,830 萬美元。與去年同期相比的成長主要歸因於收購 NJR 帶來的收入增加。與 ADT 簽訂的 Spruce PRO 服務協議和改進的系統效能對年收入成長的貢獻較小。

First quarter core OpEx, which we define as SG&A and portfolio O&M, was $18 million in total as compared to $16.6 million for the prior year period. Breaking this out, portfolio O&M expense was $3.9 million in the first quarter, down from $5.3 million in the fourth quarter. This represents a sequential decline of more than 25%.

第一季核心營運支出（我們將其定義為銷售、一般及行政費用和投資組合營運與維護費用）總計 1,800 萬美元，而去年同期為 1,660 萬美元。具體來說，第一季投資組合的營運和維護費用為 390 萬美元，低於第四季的 530 萬美元。這意味著連續下降超過25%。

SG&A expense was $14.1 million in the first quarter, down from $15.5 million in the fourth quarter, but up from $13.5 million in the prior-year period. Most of the SG&A change in the first quarter was timing related, although given our density of systems in the state, we did add a small O&M field servicing team in New Jersey.

第一季銷售、一般及行政費用為 1,410 萬美元，低於第四季的 1,550 萬美元，但高於去年同期的 1,350 萬美元。第一季銷售、一般及行政費用 (SG&A) 的大部分變化與時間有關，但考慮到我們在州內的系統密度，我們確實在新澤西州增加了一個小型 O&M 現場服務團隊。

Spruce generated a GAAP net loss attributable to stockholders of $15.3 million. As a reminder, we consider operating EBITDA a key measure in evaluating the company's financial performance, which we define as adjusted EBITDA plus several items that represent material cash inflows from our ongoing business and strategy.

根據 GAAP，Spruce 股東淨虧損為 1,530 萬美元。提醒一下，我們認為營業 EBITDA 是評估公司財務表現的關鍵指標，我們將其定義為調整後的 EBITDA 加上代表我們正在進行的業務和策略產生的重大現金流入的幾個項目。

Operating EBITDA was $12.3 million for the first quarter versus $10.7 million in the prior-year period. Again, this change was primarily attributable to the NJR acquisition, partially offset by higher expenses and lower interest income. On the strength of the NJR acquisition, we anticipate reporting operating EBITDA improvement for all quarters in 2025 relative to the year earlier periods.

第一季營業 EBITDA 為 1,230 萬美元，去年同期為 1,070 萬美元。同樣，這一變化主要歸因於 NJR 收購，但被更高的支出和更低的利息收入部分抵消。憑藉對 NJR 的收購，我們預計 2025 年所有季度的營業 EBITDA 將較上年同期有所改善。

At the end of the first quarter, total cash, inclusive of unrestricted and restricted cash on our balance sheet was approximately $96.5 million. Our unrestricted cash balance at quarter end was approximately $61.9 million versus $72.8 million at the end of the fourth quarter. The sequential decline in unrestricted cash is largely due to NJR collections timing and typical business seasonality, although the share repurchase and ongoing operational spend, including O&M costs as well as legal expense also contributed.

截至第一季末，我們資產負債表上的現金總額（包括非限制性現金和限制性現金）約為 9,650 萬美元。本季末我們的非限制現金餘額約為 6,190 萬美元，而第四季末為 7,280 萬美元。非限制性現金的連續下降主要是由於 NJR 收款時機和典型的業務季節性，儘管股票回購和持續營運支出（包括 O&M 成本以及法律費用）也有所下降。

The total principal balance of long-term debt was $723.8 million at the end of the first quarter with a blended interest rate of 6%, including the impact of hedge arrangements. All debt consists of project finance loans that are non-recourse to the company itself. Non-recourse debt is incurred at the project level and does not impact Spruce's cash on hand balances.

第一季末長期債務的總本金餘額為 7.238 億美元，混合利率為 6%，其中包括對沖安排的影響。所有債務均為公司本身無追索權的專案融資貸款。無追索權債務是在專案層級產生的，不會影響 Spruce 的現金餘額。

At quarter end, all our floating rate debt instruments were materially hedged with interest rate swaps extending into the early 2030s. These hedge arrangements had a net mark-to-market of positive $18.1 million at quarter end.

截至本季末，我們所有的浮動利率債務工具均已透過利率互換進行了實質對沖，有效期至 2030 年代初。這些對沖安排在季度末的淨市價為正 1,810 萬美元。

Spruce will continue to take proactive measures to achieve profitability and positive free cash flow that is commensurate with the current market conditions as we invest in and execute our strategy. We remain optimistic that reduced spending, operating efficiencies and competitive revenue drivers will keep us on track to achieve our objectives.

在投資和執行我們的策略時，Spruce 將繼續採取積極措施，實現與當前市場狀況相稱的獲利能力和正自由現金流。我們仍然樂觀地認為，減少開支、提高營運效率和競爭性的收入驅動力將使我們順利實現目標。

Thank you. We will now open the line for questions.

謝謝。我們現在開放問答熱線。

(Operator Instructions) Peter Gastreich, Water Tower Research.

（操作員指示）Peter Gastreich，水塔研究。

Congratulations to Chris and team on your results. Thanks for the presentation. It's great to see the NJR acquisition supporting EBITDA expansion and also see Spruce picking up your repurchase program again. Just a few questions here. I'd like to start with Spruce PRO.

恭喜克里斯和團隊取得的成績。謝謝你的演講。很高興看到 NJR 收購支持 EBITDA 擴張，同時看到 Spruce 再次採用您的回購計劃。這裡僅有幾個問題。我想從 Spruce PRO 開始。

Great to see Spruce PRO landing ADT with 60,000 solar systems. How should we think about the scale of revenue opportunity there and the lead times to building up that business to a critical mass? And also be interested to hear if you could share how your other conversations and marketing at Spruce PRO have been going so far this year.

很高興看到 Spruce PRO 憑藉 60,000 個太陽能係統實現 ADT。我們應該如何看待那裡的收入機會規模以及將該業務發展到臨界規模所需的準備時間？並且我也想知道您是否可以分享一下今年到目前為止您在 Spruce PRO 的其他對話和行銷的進展。

Sure. Thanks, Peter. I appreciate the question. So you know Spruce PRO is a capital-light endeavor. These are leveraging the infrastructure investments we've made over the last 5 to 7 years, and we have capacity in the system.

當然。謝謝，彼得。我很感謝你提出這個問題。所以您知道 Spruce PRO 是一項輕資本的嘗試。這些都是利用我們在過去 5 到 7 年間所做的基礎設施投資，並且我們的系統具有容量。

So from a margin expansion perspective, it's a great business line. What I can tell you, obviously, unable to share any forward-looking information is we have a deep pipeline of prospects in this business. We'd love to make another announcement in the next quarter and have been really excited about the team we built, the reception in the market, and I feel like we can do it profitably.

因此，從利潤率擴張的角度來看，這是一條很好的業務線。顯然，我可以告訴你的是，我們不能分享任何前瞻性的信息，但我們在這個行業擁有豐富的潛在客戶。我們希望在下個季度再次發佈公告，並且對我們建立的團隊、市場反應感到非常興奮，我覺得我們可以獲利地做到這一點。

Next question, I'd just like to ask about financing. I understand, I think you mentioned that Spruce will refinance its SP 1 loan next year in April. What does the environment look like for that refinancing?

下一個問題，我只想問融資問題。我明白，我想您曾提到 Spruce 將於明年 4 月為其 SP 1 貸款再融資。再融資的環境是什麼樣的呢？

Yes. So I appreciate the question. So that portfolio is due in April of 2026, so a little under a year from now. And we are certain we can get like-for-like terms, but we've been looking at other credit options that we think will be more favorable. And so what I can tell you is we're out in the market.

是的。我很感謝你提出這個問題。該投資組合將於 2026 年 4 月到期，也就是距今不到一年的時間。我們確信我們可以獲得同等條款，但我們一直在尋找我們認為更有利的其他信貸選擇。所以我可以告訴你的是，我們已經進入市場了。

And based on the feedback that we're seeing, I remain super confident in our liquidity profile and ability to refinance it.

根據我們看到的回饋，我仍然對我們的流動性狀況和再融資能力非常有信心。

Okay. I'd just like to ask next about Spruce 5. Could you give a little bit more color on the SRECs for that acquisition? They're quite chunky, as you know, they make up close to two-thirds of the revenue for SP 5. Just curious why is that so high compared to your other assets?

好的。接下來我想問一下有關 Spruce 5 的問題。能否詳細介紹一下此次收購的 SREC？它們相當龐大，如你所知，它們佔 SP 5 收入的近三分之二。只是好奇為什麼與您的其他資產相比它如此之高？

And should we think about that level as being recurring?

我們是否應該認為該等級是重複出現的？

Sure. So it's a great question. So look, New Jersey has both deep liquidity in the SREC market and high prices. So we expect that, that would continue in the future and are excited that, that's an element of the deal. And for sure, we would look at it based on a recurring level.

當然。這是一個很好的問題。所以看，新澤西州的 SREC 市場流動性強，價格也高。因此，我們預計這種情況將在未來繼續下去，並且我們很高興，這是交易的一部分。當然，我們會根據重複的水平來看待它。

Next, I just wanted to ask about your CFO transition. Could you comment on what drove the decision and what your plans are to fill the role?

接下來，我想問一下您的財務長的過渡情況。您能否評論一下是什麼促使您做出這一決定以及您有何計劃來擔任這一職位？

Yes, for sure. So Sarah has been with us for seven years, and she's done a super job supporting the company's growth and development. She made a decision to move to a private company. And while we will miss her, we understand this move aligns with her personal objectives and we respect her decision. As it relates to the search, we expect we will have an interim announcement in the very near future and have been pleased with the candidates we've been meeting thus far for the Chief Financial Officer position.

是的，當然。莎拉已經和我們在一起七年了，她為公司的成長和發展做出了巨大的貢獻。她決定跳槽到一家私人公司。雖然我們會想念她，但我們知道這一舉動符合她的個人目標，我們尊重她的決定。就搜尋而言，我們預計將在不久的將來發布臨時公告，並對迄今為止我們遇到的財務長職位候選人感到滿意。

So keep an eye on that. We're aggressively looking for a replacement.

所以請留意這一點。我們正在積極尋找替代者。

I'll squeeze one more question here before I get back in the queue. So we're now a few months into the new administration. Could you talk about the durability of your business model from that policy perspective when compared to your industry peers?

在我回到隊列之前，我在這裡再問一個問題。新政府上任已經幾個月了。與業內同行相比，您能否從政策角度談談您的商業模式的持久性？

Yes. So look, it's a great question. I don't want to be too redundant with the script that you just heard from me. But I would tell you that given this administration and some of the concerns you read and hear about, we are victim to very few of them. In other words, being a third-party operator and owner allows us to buy portfolios after they've been installed, after tax credits have been monetized.

是的。所以，這是一個很好的問題。我不想對您剛才聽到的腳本進行過多的重複。但我想告訴你們，考慮到本屆政府以及你們讀到和聽到的一些擔憂，我們只是其中極少數問題的受害者。換句話說，作為第三方營運商和所有者，我們可以在投資組合安裝完畢、稅收抵免貨幣化之後購買它們。

So we continue to see deep liquidity in our pipeline of M&A opportunities.

因此，我們繼續看到併購機會中存在著深厚的流動性。

And look, if you were a believer in utility rates going up, that is quite helpful to a large percentage of our book. And so I would just say that I think given some of the uncertainty, it is much less applicable in our world, which we're super grateful for.

瞧，如果你相信公用事業費率會上漲，這對我們很大一部分人來說都是很有幫助的。因此，我只想說，考慮到一些不確定性，我認為它在我們的世界中不太適用，我們對此非常感激。

(Operator Instructions) That concludes our Q&A session. I will now turn the call back over to Chris Hayes for closing remarks. You may go ahead.

（操作員指示）我們的問答環節到此結束。現在我將把電話轉回給克里斯·海耶斯，請他作最後發言。你可以繼續。

Thank you, operator. Our focus in 2025 is on scaling our platform, containing costs and delivering improved financial performance. Thank you so much for your interest in Spruce Power and for participating in our call today, and we look forward to updating you again next quarter. Really appreciate it.

謝謝您，接線生。2025 年我們的重點是擴大平台規模、控製成本並提高財務績效。非常感謝您對 Spruce Power 的關注以及參加我們今天的電話會議，我們期待下個季度再次向您更新最新情況。真的很感激。

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

今天的電話會議到此結束。您可以斷開連線。