Sunworks Inc (SUNW) 2023 Q3 法說會逐字稿

Greetings, and welcome to Sunworks third-quarter 2023 results conference call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 Sunworks 2023 年第三季業績電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce Jason Bonfigt, Chief Financial Officer. Thank you. You may begin.

現在我很高興向大家介紹財務長賈森邦菲特 (Jason Bonfigt)。謝謝。你可以開始了。

Thank you, operator. I'm Jason Bonfigt, Chief Financial Officer of Sunworks. On behalf of our entire team, I'd like to welcome you to our third-quarter results of 2023 conference call. Leading the call with me today is our President and CEO, Mark Trout.

謝謝你，接線生。我是 Jason Bonfigt，Sunworks 財務長。我謹代表我們整個團隊歡迎您參加我們的 2023 年第三季業績電話會議。今天與我一起主持電話會議的是我們的總裁兼執行長馬克·特勞特。

Today's discussion contains forward-looking statements about future business and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including the risks described in our periodic reports filed with the Securities and Exchange Commission. Except as required by law, we undertake no obligation to update our forward-looking statements.

今天的討論包含有關未來業務和財務預期的前瞻性陳述。由於各種風險和不確定性，包括我們向美國證券交易委員會提交的定期報告中所述的風險，實際結果可能與今天的前瞻性聲明中預測的結果有顯著差異。除法律要求外，我們不承擔更新前瞻性聲明的義務。

Following our prepared remarks, we will open the line for questions.

在我們準備好的發言之後，我們將開通提問熱線。

With that, I'd like to turn the call over to Mark.

說到這裡，我想把電話轉給馬克。

Thank you, Jason, and welcome to those joining us today.

謝謝你，傑森，歡迎今天加入我們的人。

As detailed in our third-quarter earnings release issued earlier today, the last several months have continued to be a challenging period for both Sunworks and the residential solar industry at large. We continue to believe in the long-term economics of residential solar and storage, particularly as the demands of a growing population weigh on our nation's aging electricity infrastructure, which we believe will result in structurally higher utility rates for customers over time.

正如我們今天稍早發布的第三季財報中所詳述的那樣，過去幾個月對 Sunworks 和整個住宅太陽能產業來說仍然是一個充滿挑戰的時期。我們仍然相信住宅太陽能和儲存的長期經濟性，特別是隨著不斷增長的人口需求給我國老化的電力基礎設施帶來壓力，我們相信隨著時間的推移，這將導致客戶的公用事業費率結構性提高。

During the third quarter, the combination of higher interest rates, less favorable residential solar economics in California following the NEM 3.0 transition, continued to weigh on us and the industry at large, resulting in lower new installation activity and reduced fixed cost absorption in the period. During a transitional period for our residential business, we've maintained an opportunistic pricing strategy in accordance with current demand conditions. At the same time, we've taken decisive action to further rightsize our cost structure, including several rounds of reductions in force.

第三季度，利率上升以及 NEM 3.0 過渡後加州住宅太陽能經濟狀況不佳，繼續給我們和整個行業帶來壓力，導致該期間新安裝活動減少，固定成本吸收減少。在我們的住宅業務的過渡時期，我們根據當前的需求狀況維持了機會主義的定價策略。同時，我們採取了果斷行動，進一步調整成本結構，包括多輪裁員。

We have retrenched and focused on markets where we believe we have volume and efficiencies to stabilize and maintain an appropriate cost structure. We continue to improve our internal processes with significant focus on customer cycle time improvement, installation crew efficiency, and cost management. We are seeing improved conditions in supply chain availability and material pricing, which we anticipate continuing into the next quarter or two.

我們已經進行了緊縮開支，並專注於我們認為擁有數量和效率來穩定和維持適當成本結構的市場。我們繼續改進我們的內部流程，並專注於客戶週期時間改進、安裝人員效率和成本管理。我們看到供應鏈可用性和材料定價的狀況有所改善，預計這種情況將持續到下一兩個季度。

Turning now to a discussion on our commercial solar energy business. Our commercial business had an outstanding third quarter, as revenue more than doubled on a year-over-year basis, while gross profit margin rate increased to more than 16% in the period.

現在討論我們的商業太陽能業務。我們的商業業務第三季表現出色，營收年增一倍多，期內毛利率提高至16%以上。

Customers in the commercial and industrial space, as well as the municipal markets, continue to seek out EPCs who have deep industry expertise and who have the capacity to install. This sector should continue to grow throughout 2024 and into 2025 as the economics of solar and storage in C&I space continue to improve. The growth in the EV charging sector continues to grow, and Sunworks is positioned to capitalize on that growth. This market has been a strategic focus for us at Sunworks, and we are gaining traction as a significant EPC in commercial EV charging solutions.

商業和工業領域以及市政市場的客戶不斷尋找擁有深厚行業專業知識和安裝能力的 EPC。隨著工商業領域太陽能和儲能經濟性的持續改善，該產業將在 2024 年至 2025 年繼續成長。電動車充電產業的成長持續成長，Sunworks 已做好充分利用這一成長的準備。這個市場一直是 Sunworks 的戰略重點，作為商業電動車充電解決方案的重要 EPC，我們正在獲得越來越多的關注。

Looking ahead, we will remain focused on our strategic growth priorities, building regional market leading positions while implementing market-based pricing coupled with targeted cost reductions that put us closer toward achieving a positive EBITDA consistent with our long-term objectives. Given the tailwinds of the Inflation Reduction Act, as well as the increased demand in the commercial space, we anticipate being well positioned to capture the momentum in our business entering into 2024. As before, the market opportunity for solar remains significant across our geographic footprint, positioning Sunworks to play a leading role in the transition toward affordable, clean, and independent energy production.

展望未來，我們將繼續專注於我們的策略成長重點，建立區域市場領先地位，同時實施基於市場的定價以及有針對性的成本削減，使我們更接近實現符合我們長期目標的正 EBITDA。鑑於《通貨膨脹削減法案》的推動以及商業領域需求的增加，我們預計將處於有利位置，能夠抓住進入 2024 年業務的勢頭。與以前一樣，太陽能的市場機會在我們的地理足跡中仍然存在巨大，使Sunworks 在向負擔得起的、清潔的和獨立的能源生產轉型中發揮主導作用。

With that, I'll hand the call over to Jason for his remarks.

這樣，我將把電話轉交給傑森，聽他講話。

Thank you, Mark. Beginning with a summary of our third-quarter financial performance, Sunworks generated total revenue of $28.7 million in the third quarter of 2023, a decline of 29.5% versus the prior year period, as positive momentum within our commercial segment was more than offset, given the ongoing market challenges within our residential segment which Mark referenced earlier.

謝謝你，馬克。首先總結我們第三季的財務業績，Sunworks 在 2023 年第三季的總收入為 2870 萬美元，比去年同期下降 29.5%，因為我們商業部門的積極勢頭被抵消了，考慮到馬克之前提到的我們住宅領域持續存在的市場挑戰。

While higher interest rates have increased the total cost of rooftop solar for homeowners, we continue to believe the long-term macro trends of solar to be favorable to consumers and businesses. Similar to last quarter, higher rates remain a headwind for our business. As a result, residential segment revenue was $20.3 million, a 44.5% year-over-year decline.

儘管利率上升增加了房主屋頂太陽能的總成本，但我們仍然相信太陽能的長期宏觀趨勢對消費者和企業有利。與上季類似，利率上升仍然是我們業務的阻力。因此，住宅部門收入為 2,030 萬美元，年減 44.5%。

Within our commercial solar segment, we continue to execute on our strategy to diversify our customer base and operate at scale. Revenue increased to $8.3 million, over double the prior year. Total gross profit was $8.2 million, or 28.5% of sales, compared to $19.5 million, or 47.9%, in the prior year quarter.

在我們的商業太陽能領域，我們繼續執行我們的策略，以實現客戶群多元化和規模化營運。收入增至 830 萬美元，是前一年的兩倍多。總毛利為 820 萬美元，佔銷售額的 28.5%，而去年同期為 1,950 萬美元，佔銷售額的 47.9%。

Several factors contributed to the reduction in gross margin. First, approximately 28% of our revenue was derived from our commercial segment, versus approximately 10% in the prior year. The commercial segment's model is less focused on sales and marketing and, as a result, has a lower gross margin profile.

多種因素導致毛利率下降。首先，我們約 28% 的收入來自商業部門，而前一年約為 10%。商業部門的模式較不注重銷售和行銷，因此毛利率較低。

Additionally, gross margin within the commercial segment improved from 1% in the prior year quarter to approximately 16% in the current year quarter due to improved operational execution and higher volume. Offsetting this improvement is underabsorption of labor costs in our residential business, as lowered originations led to underutilized labor capacity.

此外，由於營運執行的改善和銷售的增加，商業部門的毛利率從去年同期的 1% 提高到本季的約 16%。我們的住宅業務對勞動成本的吸收不足抵消了這種改善，因為來源減少導致勞動力能力未被充分利用。

Throughout Q3 and into Q4, we took action to strategically reduce markets that are not operating at scale. This strategy will allow us to focus our sales and marketing in key markets with favorable economics and the ability to scale operations. Since the end of Q2, we have reduced our labor costs by approximately $6 million annually.

在整個第三季和第四季度，我們採取了策略性行動來減少未大規模營運的市場。這項策略將使我們能夠將銷售和行銷重點放在具有良好經濟效益和擴大營運能力的關鍵市場。自第二季末以來，我們每年減少了約 600 萬美元的勞動成本。

During Q3, we identified tripping events within our residential segment, including the negative impact of rising interest rates and due to our market capitalization. As a result, we incurred a $26 million non-cash impairment charge to the goodwill associated with the acquisition. As a result, we incurred a $26 million non-cash impairment charge to the goodwill associated with the Solcius acquisition.

在第三季度，我們發現住宅領域發生了一些重大事件，包括利率上升和我們的市值帶來的負面影響。因此，我們對與收購相關的商譽產生了 2,600 萬美元的非現金減損費用。因此，我們對與收購 Solcius 相關的商譽產生了 2,600 萬美元的非現金減損費用。

We generated a net loss of $36.4 million in the third quarter of 2023, or $0.84 per share, versus a net loss of $5.4 million in the prior year period, or $0.16 per share. Included in the net loss in the quarter is the goodwill impairment, which represented $0.60 per share.

2023 年第三季度，我們的淨虧損為 3,640 萬美元，即每股 0.84 美元，而去年同期的淨虧損為 540 萬美元，即每股 0.16 美元。本季淨虧損包括商譽減值，相當於每股 0.60 美元。

Adjusted EBITDA was a loss of $8.5 million during the quarter.

本季調整後 EBITDA 虧損 850 萬美元。

As of September 30, 2023, the company had cash and cash equivalents of $2.4 million.

截至2023年9月30日，該公司擁有現金及現金等價物240萬美元。

Operator, that concludes our prepared remarks. Please open the line for questions as we begin our question-and-answer session.

接線員，我們準備好的發言到此結束。當我們開始問答環節時，請打開提問專線。

(Operator Instructions) Donovan Schafer, Northland Capital Markets.

（操作員說明）Donovan Schafer，Northland Capital Markets。

Hey, guys. Thanks for taking the questions. So I first just want to ask if you can give us any color on what you are expecting currently for the fourth quarter. Do you think you would be, just directionally, up sequentially, down sequentially? And if you could break it out by residential versus C&I, that would be great. Thank you.

大家好。感謝您提出問題。所以我首先想問您是否可以告訴我們您目前對第四季的預期。你認為你會只是定向地、依序向上、依序向下嗎？如果你能透過住宅與工商業來區分，那就太好了。謝謝。

[Hello], Donovan. It's Jason. Yeah, I think we're still -- the backlog in our residential business has declined to about $35 million at the end of the quarter. So the business in Q4 will coincide likely with the backlog reduction year over year. Within our commercial business, we've been building throughout the year that the backlog and the business -- the backlog did end the quarter at about $30 million. But that's giving us nice visibility into the next several quarters.

[你好]，多諾萬。是傑森。是的，我認為截至本季末，我們住宅業務的積壓訂單已降至約 3,500 萬美元。因此，第四季的業務很可能與積壓訂單年減的情況一致。在我們的商業業務中，我們全年都在積壓訂單和業務——本季末的積壓訂單確實達到了約 3000 萬美元。但這讓我們對未來幾季有了很好的了解。

And I would say that we're still very optimistic about the pipeline of opportunities that we're -- and the award of contracts that we're looking to close here in the next one to two months. So we think that that business is going to be operating at a better scale in the coming quarters.

我想說的是，我們仍然對我們正在提供的機會以及我們希望在未來一到兩個月內完成的合約授予非常樂觀。因此，我們認為該業務將在未來幾季以更好的規模運作。

Okay. And then as a follow-up question, if we're talking about -- I appreciate the update on the cash position. Could you talk us through, maybe in the next few quarters, how you think about managing overall working capital, like liquidity position, if you've got a certain goal or target around what kind of cash burn rate you might have, again, over the next few quarters, how you navigate and manage that? That would be great.

好的。作為一個後續問題，如果我們談論的是——我很欣賞現金狀況的最新情況。您能否告訴我們，也許在接下來的幾個季度，您如何考慮管理整體營運資金，例如流動性狀況，如果您有關於您可能擁有的現金消耗率的特定目標或目標，再次，接下來的幾個季度，您將如何應對和管理？那太好了。

Well, I think we have a few levers when it comes to cash. The first positive lever is -- a lot of the times and when we're signing contracts on these large commercial contracts, those will come with deposits. That could be anywhere from 5% to 15% of the contract value. So that could be material for us.

嗯，我認為在現金方面我們有一些槓桿。第一個積極的槓桿是——很多時候，當我們簽署這些大型商業合約時，這些合約將附帶押金。這可能是合約價值的 5% 到 15%。所以這對我們來說可能很重要。

But that's -- again, those tend to be lumpy, and that would likely be over the next one to two quarters. Within our residential business, you actually have the benefit of working capital improvements or benefits as your business declines because you're still collecting on contracts from customers that you've recognized revenue in previous quarters. So that's certainly an option for us as well and one that we're actively managing.

但同樣，這些往往是不穩定的，而且可能會在接下來的一到兩個季度內出現。在我們的住宅業務中，您實際上可以從營運資金改善中受益，或者在業務下滑時受益，因為您仍在從已確認前幾季收入的客戶那裡收取合約。因此，這對我們來說當然也是一種選擇，也是我們正在積極管理的一種選擇。

Okay. And then with the -- I guess for the backlog conversion rate, I mean, you talked about it coming down for residential. It does look like if I look back a year ago, you could take the prior quarter's backlog and figure that something like 60% to 70% of that, talking about residential, would convert in the next quarter. But this quarter, it looks like it's down to about 40% of converting the backlog.

好的。然後，我想對於積壓的轉換率，我的意思是，你談到住宅的積壓轉換率會下降。看起來，如果我回顧一年前，你可以查看上一季的積壓訂單，並計算出其中 60% 到 70% 的住宅訂單將在下個季度轉換。但本季度，積壓訂單的轉換率似乎下降至 40% 左右。

Is that kind of a new run rate that we're at with the way the market is right now? Or is that something we should expect to rebound and head back up towards the 60%, 70%? And if so, over what time period?

我們現在的市場運行速度是這樣的嗎？或者我們應該期待反彈並回到 60%、70% 的水平？如果是的話，需要多長時間？

Yeah, I think there were some anomalies over the course of the next year with many of the challenges that we had in California with utilities and jurisdictional approvals post-NEM 3.0. So I think we're still managing through that period. We're seeing the approval queues shrink dramatically and reverting back to historical norms. So I think as you look at our backlog and the conversion, that should revert to historical norms as well.

是的，我認為明年會出現一些異常情況，我們在加州面臨 NEM 3.0 後的公用事業和司法審批方面的許多挑戰。所以我認為我們仍在度過那個時期。我們看到審批隊列急劇減少並恢復到歷史正常水平。因此，我認為當您查看我們的積壓和轉換時，這也應該恢復到歷史標準。

Okay. And if I could squeeze one more in. I just -- it caught my eye, the mention of IPP customers in the C&I space. Can we just get an update and maybe some more color there in terms of what the opportunity is? How big projects are you potentially -- are you in a position to potentially win there? I mean, if we're talking about 100-megawatt-plus projects or just any color there would be great.

好的。如果我能再擠進去一點的話。我只是——它引起了我的注意，提到了 C&I 領域的 IPP 客戶。我們能否獲得最新消息，或許還有更多機會的資訊？您可能有多大的項目——您有能力贏得這些項目嗎？我的意思是，如果我們談論的是 100 兆瓦以上的項目或只是任何顏色，那就太好了。

Donovan, this is Mark. I can probably take this one, Jason.

多諾萬，這是馬克。我也許可以接受這個，傑森。

But I think when you think about it, our sweet spot is probably not quite up to 100 megawatts yet. So we're seeing some of those come through. But as we look to expand and also diversify in some of the markets there, we're definitely trying to stay in the flow of deals and where the EPC demands are coming from. So that's not off the table by any means, but our sweet spot seems to be just under that.

但我想，仔細想想，我們的最佳發電量可能還沒達到 100 兆瓦。所以我們看到其中一些已經實現。但當我們希望在一些市場上擴張並實現多元化時，我們肯定會努力保持交易量和 EPC 需求的來源。所以這無論如何都不是不可能的，但我們的最佳點似乎就在這個之下。

Okay. Thank you. I'll take the rest of my questions offline.

好的。謝謝。剩下的問題我會離線回答。

Philip Shen, Roth Capital Partners.

菲利普‧沉 (Philip Shen)，羅斯資本合夥人。

Hey, guys. Thanks for taking my questions. I wanted to follow up on the liquidity and cash flow question. Specifically, can you talk about what the cash burn was for Q3? You didn't have financial statements with your release. And then, what do you expect it to be for Q4?

大家好。感謝您回答我的問題。我想跟進流動性和現金流問題。具體來說，您能談談第三季的現金消耗是多少嗎？您的新聞稿中沒有財務報表。那麼，您對第四季的預期是什麼？

And then, how do you expect -- and then, I didn't hear the cash position. So what was it at the end of Q3, and how do you expect that to trend as we go through Q4? Jason, you were talking about working capital improvements. So I was wondering if you could quantify what the inventory and AR positions were at the end of Q3, and how much that could translate to cash as well in Q4.

然後，你期待什麼——然後，我沒有聽到現金狀況。那麼第三季末的情況是什麼？您預計第四季的趨勢如何？傑森，你剛才談論的是營運資金的改善。所以我想知道您是否可以量化第三季末的庫存和應收帳款頭寸，以及在第四季度可以轉換為現金的金額。

Sure. We ended the quarter at $2.5 million of cash. I believe our Q2 was right around $4 million. We did have a capital raise in that quarter, and we also had proceeds from our ATM that's on file with the SEC as well. So that was a positive from a cash flow perspective. So the delta is the cash burn in the business.

當然。本季末我們的現金為 250 萬美元。我相信我們第二季的營收約為 400 萬美元。我們在那個季度確實進行了融資，我們也從 ATM 機中獲得了收益，這些收益也已在 SEC 備案。因此，從現金流的角度來看，這是正面的。所以增量就是企業的現金消耗。

Working capital was relatively flat, and the EBITDA loss was about $8.5 million, as we believe that many of the actions that we've taken from a headcount perspective and consolidating some of these markets will reduce this cash burn. And then, as well as the commercial business, the revenues are growing and we're approaching positive EBITDA in that business. So that's going to be a tailwind for us as well.

營運資金相對持平，EBITDA 損失約為 850 萬美元，因為我們相信，我們從員工數量角度採取的許多行動以及整合其中一些市場將減少現金消耗。然後，與商業業務一樣，收入也在成長，我們正在接近該業務的正 EBITDA。所以這對我們來說也將是一股順風。

We did have, in our filing that inventory, we still have about $10 million of AR. And I would say there's a couple opportunities in there. We have older accounts that we're just working to clean up so that we can get the PTO within our residential business. There's several million dollars in that category that we're actively targeting to bring in cash.

在我們提交的清單中，我們確實還有大約 1000 萬美元的 AR。我想說這裡面有很多機會。我們正在努力清理舊帳戶，以便我們可以將 PTO 納入我們的住宅業務中。我們正在積極爭取在這一類別中籌集數百萬美元的現金。

And then, we have effectively an underutilized factoring line right now that we're looking to expand or to add more customers into that population. That will allow us to free up some cash flow as well.

然後，我們現在實際上擁有一條未充分利用的保理業務，我們正在尋求擴大或在該群體中增加更多客戶。這也將使我們能夠釋放一些現金流。

Inventory during the quarter was about $16 million. Again, we have quite a few of the modules that are available for our commercial business, so we're not having to make those purchases right now. So that's going to be a benefit to working capital as well.

該季度的庫存約為 1600 萬美元。同樣，我們有相當多的模組可用於我們的商業業務，因此我們現在不必購買這些模組。因此，這也將有利於營運資金。

And then, within our residential business, we are still managing just in time when it comes to inverters and module purchases. So there's not a lot of opportunity, frankly, in our residential inventory. But I think there is in our commercial business.

然後，在我們的住宅業務中，我們仍在及時管理逆變器和模組的採購。因此，坦白說，我們的住宅庫存中沒有太多機會。但我認為我們的商業業務中存在這種情況。

Got it. Thanks for the detail. And then, as it relates to that factoring line, you said it's underutilized. Can you talk through how much capacity there might be and then how much more you might want to expand that by?

知道了。謝謝你的詳細資料。然後，由於它與保理業務相關，您說它沒有得到充分利用。您能否談談可能有多少容量以及您可能希望將其擴展多少？

Our factoring line is about $2.5 million. I don't have the number in front of me of what it was utilized at the end of Q3. I believe it was $1.5 million, but I'll have to follow up with you if that's not the correct number. It will be stated in our queue.

我們的保理額度約為 250 萬美元。我面前沒有第三季末使用的數字。我相信是 150 萬美元，但如果數字不正確，我將不得不與您聯繫。它將在我們的隊列中註明。

We think there's opportunity to expand that facility by $1 million to $2 million. And certainly, I think the business levels that we're going to be operating at could support that. So we're targeting that as well.

我們認為有機會將設施擴大 100 萬至 200 萬美元。當然，我認為我們將要運營的業務水平可以支持這一點。所以我們也瞄準了這一點。

Okay. Thank you. And then looking at margins for Q4, I heard the commercial margins for Q3, you improved year over year, I think, from 1% to 16%. But I didn't hear the resi margins for Q3. Can you share what they were and then what you expect both segments to be in Q4? Thanks.

好的。謝謝。然後看看第四季的利潤率，我聽說第三季的商業利潤率逐年提高，我認為從 1% 到 16%。但我沒有聽說第三季的 Resi 利潤率。您能否分享一下它們是什麼以及您對這兩個細分市場在第四季度的預期？謝謝。

Q3 gross margin in our residential business was about 33.7%. That is down historically just driven by the fact that we've had many of these markets that have been underutilized and we have underutilized crew capacity. We've made, as we mentioned on the call and our prepared remarks, many reductions, over $6 million, in the past four to five months. That's going to help us drive margin improvement within the residential business.

第三季我們住宅業務的毛利率約為33.7%。從歷史上看，這一數字有所下降，原因是我們有許多市場未被充分利用，而且我們的船員能力也未充分利用。正如我們在電話會議和準備好的演講中提到的那樣，在過去的四到五個月裡，我們已經進行了多次削減，金額超過 600 萬美元。這將有助於我們推動住宅業務的利潤率提高。

And then, we're starting to see some lower cost procurement and materials coming through as well, so that will give us a little bit of lift here probably at the end of Q4. But again, I think we're making a lot of these changes in some of these markets and not all of the benefits we baked in in Q4. So I think this is a gradual recovery into next year.

然後，我們開始看到一些成本較低的採購和材料也出現了，因此這可能會在第四季末給我們帶來一點提振。但同樣，我認為我們在其中一些市場做出了很多改變，而不是我們在第四季帶來的所有好處。所以我認為這是明年的逐步復甦。

Okay. So margins in Q4 could be similar to what you saw in Q3. Is that a fair way of thinking about it?

好的。因此，第四季的利潤率可能與第三季的利潤率相似。這是一個公平的思考方式嗎？

Within our commercial business, I think there might be a little bit of upside there relative to the 16%. We're targeting, when we're quoting with our customers and holding our operations teams accountable, to manage above 20%. So over the long term, we'd like to see some improvements there. And then, in our residential business, I think there'll be some lift in Q4, but not materially.

在我們的商業業務中，我認為相對於 16% 可能會有一些上升空間。當我們與客戶報價並讓我們的營運團隊負責時，我們的目標是管理 20% 以上。因此，從長遠來看，我們希望看到一些改進。然後，在我們的住宅業務中，我認為第四季度會有一些提升，但不是實質的。

Right. Okay, great. You talked about exiting a few markets. Can you talk about which ones you left? And then, of the remaining revenue mix on a go-forward basis expected, what's the mix of California for your business going forward, for the resi business only? So the California resi mix versus the next biggest one. Thanks.

正確的。好的，太好了。您談到退出一些市場。能談談你留下了哪些嗎？然後，在預期的剩餘收入組合中，加州對您的業務未來的組合（僅針對 Resi 業務）是怎樣的？因此，加州的殘渣混合物與第二大的殘渣混合物相比。謝謝。

Hey, Phil. It's Mark. In terms of some of the markets, what we did is we closed down a couple that were underperforming, underutilized. We had a shift in a few of our dealers as a result of the NEM 3.0 change in California. And so I think what you're seeing is that transition that you're probably seeing across the industry back from loans to more of a TPO kind of model in California. And we're going through that just like everybody else.

嘿，菲爾。是馬克。就某些市場而言，我們所做的是關閉了一些表現不佳、未充分利用的市場。由於加州的 NEM 3.0 變更，我們的一些經銷商發生了變化。因此，我認為您所看到的是，整個行業可能會看到從貸款到加州更多的 TPO 模式的轉變。我們和其他人一樣正在經歷這個過程。

So California, as we shift back over to probably more TPO, is going to probably come back, we're expecting. Maybe not to its pre-NEM 3.0 levels quite this year, but we do expect that to come back. California, we are still active in. We're going to remain active there.

因此，我們預計，當我們重新轉向可能更多的 TPO 時，加州可能會回來。今年可能不會達到 NEM 3.0 之前的水平，但我們確實預計會回來。加利福尼亞州，我們仍然活躍。我們將在那裡保持活躍。

And then, really, some of the markets that we've exited have been where they've been; less focus from our direct sales team and more focus from dealers. And as dealers have lost some of their volume, we've chosen to reduce our EPC footprint. I think there's a list of those in the earnings announcement.

然後，實際上，我們退出的一些市場已經回到了原來的位置。我們的直銷團隊更少關注，而經銷商更關注。由於經銷商的銷售量有所下降，我們選擇減少 EPC 足跡。我認為收益公告中有一份清單。

A list of the markets you exited?

您退出的市場清單？

A list of the ones we're staying in.

我們住的飯店的名單。

Staying in, okay. So is California about 50% of your business still, or is it a little bit less or more?

留在裡面就好了那麼，加州是否仍佔您業務的 50% 左右，還是有所減少或增加？

It's actually less of our business right now. We're seeing actually a shift in some of the other markets have really come on strong. And that's probably due to AR focus as well as there was a lot of backlog. Frankly, I think that all of us felt in the lead up to NEM 3.0. And we've been working down that backlog, it kind of created a normal slowing right after NEM 3.0, and so that's just kind of bouncing back.

實際上，現在這與我們的業務無關。我們實際上看到其他一些市場的轉變確實很強勁。這可能是由於 AR 重點以及大量積壓所致。坦白說，我認為我們所有人都感受到了 NEM 3.0 的到來。我們一直在解決積壓的問題，在 NEM 3.0 之後，它造成了正常的放緩，所以這只是一種反彈。

Right.

正確的。

So we're probably about 30% California right now, if I do some quick math.

如果我快速算一下，現在加州的人口比例可能約為 30%。

Okay. So given your commitment to stay in California and given the transition to NEM 3.0 and storage, what's your bookings momentum currently? Is it still down on a year-over-year basis? When do you expect your originations to perhaps be up year over year? Sunrun has talked about maybe breakeven near term, but I know others are having trouble or a harder time. So just curious, do you see that in Q2 of next year, maybe Q3? Or could it be sooner? Thanks.

好的。那麼，鑑於您承諾留在加利福尼亞州並過渡到 NEM 3.0 和存儲，您目前的預訂勢頭如何？年比仍然下降嗎？您預期什麼時候您的收入可能會逐年上升？ Sunrun 談到近期可能會達到損益平衡，但我知道其他人遇到了麻煩或更困難。所以只是好奇，你會在明年第二季度，也許第三季看到這一點嗎？或是可以早點嗎？謝謝。

Yeah. So I think what we're looking at right now is our fall-off is stabilized, and we're actually operating on a month over month that seems pretty consistent. So I would assume, and I don't want to bring weather into the occasion here, but I would assume that we see stable through the rest of Q4 and maybe a little bit of uptick as we add some more TPO offerings.

是的。所以我認為我們現在看到的是我們的下滑已經穩定下來，而且我們實際上每個月的營運情況似乎相當穩定。因此，我認為，我不想在這裡將天氣因素納入考慮範圍，但我認為，我們會在第四季度的剩餘時間內看到穩定的情況，並且隨著我們添加更多TPO 產品，可能會出現一點上升。

And then, I think Q1 will be stable in California, and we'll see something tick up in Q2. A lot of that is due to, I think, the rush to get signatures before NEM 3.0 came out is over, of course. And now, the consumers are back to normal, so to speak. We saw some of this in the NEM 1.0 to NEM 2.0 transition, where it took a couple of quarters for, frankly, the consumers to return to normal. And that's what we're seeing right now.

然後，我認為加州的第一季將保持穩定，我們將在第二季度看到一些進展。當然，我認為這很大程度上是由於 NEM 3.0 發布之前急於獲得簽名的現像已經結束。現在，可以說消費者已經恢復正常了。我們在 NEM 1.0 到 NEM 2.0 的過渡中看到了其中的一些情況，坦白說，消費者花了幾個季度才恢復正常。這就是我們現在所看到的。

Got it. And storage attach rates for the originations you have today, are you at that 85% level, or do you think it's more like 30%? Is storage basically the ticket to these originations now?

知道了。您現在擁有的原始儲存附加率是處於 85% 的水平，還是您認為它更像 30%？現在儲存基本上是這些起源的門票嗎？

In California, that's going to continue. So we are looking at -- yeah, for California, that's pretty normal.

在加州，這種情況還將持續下去。所以我們正在考慮——是的，對加州來說，這很正常。

Okay. Great. I could keep on going, guys. I know I've monopolized a lot of the time. Hopefully it's helpful for people and for you guys. I'll pass it on, but I have a few others. If there's nobody else, I might jump back in. Thanks.

好的。偉大的。我可以繼續前進，夥計們。我知道我已經壟斷了很多時間。希望它對人們和你們有幫助。我會把它傳下去，但我還有其他一些。如果沒有其他人，我可能會跳回去。謝謝。

There are no other questions in the queue. I'd like to hand the call back to Mark Trout for closing comments.

隊列中沒有其他問題。我想將電話轉回馬克·特勞特以徵求結束意見。

Great. Well, thanks, everybody. And once again, thanks for joining the call today. Should you have any questions, please feel free to contact us. Our email address is ir@sunworksusa.com. A member of our team will follow up with you. And this will conclude our call today. You may now disconnect.

偉大的。嗯，謝謝大家。再次感謝您今天加入電話會議。如果您有任何疑問，請隨時與我們聯繫。我們的電子郵件地址是 ir@sunworksusa.com。我們團隊的一名成員將與您聯繫。我們今天的電話會議到此結束。您現在可以斷開連線。

Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation. You may disconnect your lines at this time. And have a wonderful day.

女士們、先生們，今天的電話會議到此結束。感謝您的參與。此時您可以斷開線路。祝你有美好的一天。