urban-gro Inc (UGRO) 2023 Q3 法說會逐字稿

Hello, and welcome to the urban-gro 2023 Third Quarter Earnings Conference Call. (Operator Instructions)

您好，歡迎參加 Urban-gro 2023 年第三季財報電話會議。 （操作員說明）

Please note that this conference call is being recorded, and a replay will be made available on the company's website following the end of the call.

請注意，本次電話會議正在錄音，電話會議結束後將在公司網站上提供重播。

At this time, I'd like to turn the conference over to Dan Droller, Investor Relations at urban-gro. Sir, please go ahead.

這次，我想將會議交給 Urban-gro 投資者關係部的 Dan Droller。先生，請繼續。

Good afternoon, and thank you for joining us. Today's call will be led by Brad Nattrass, Chairman and Chief Executive Officer; and Dick Akright, Chief Financial Officer.

下午好，感謝您加入我們。今天的電話會議將由董事長兼執行長 Brad Nattrass 主持；和財務長迪克·阿克賴特(Dick Akright)。

I'd like to remind our listeners that remarks made during this call will include discussion of non-GAAP metrics, including adjusted EBITDA, and backlog. These items should not be utilized as a substitute for urban-gro's financial results prepared in accordance with GAAP.

我想提醒我們的聽眾，在這次電話會議中發表的言論將包括對非公認會計原則指標的討論，包括調整後的 EBITDA 和積壓工作。這些項目不應被用來取代城市集團根據公認會計準則編制的財務表現。

Reconciliations of our GAAP net loss to adjusted EBITDA are available in our press release and in our Form 10-Q filed with the Securities and Exchange Commission, and can be accessed from the investor relations section of our website at ir.urban-gro.com.

我們的GAAP 淨虧損與調整後EBITDA 的調節表可在我們的新聞稿和向美國證券交易委員會提交的10-Q 表格中找到，並且可以透過我們網站ir.urban-gro.com 的投資者關係部分進行訪問。

On this call, we may state management's intentions, beliefs, expectations, or future projections. These are forward-looking statements and involve risks and uncertainties. Forward-looking statements on this call are made pursuant to the Safe Harbor provisions of the Federal Securities laws, and are based on urban-gro's current expectations.

在這次電話會議上，我們可能會陳述管理層的意圖、信念、期望或未來預測。這些均為前瞻性陳述，涉及風險和不確定性。本次電話會議的前瞻性陳述是根據聯邦證券法的安全港條款做出的，並基於 Urban-gro 目前的預期。

Actual results could differ materially. As a result, you should not place undue reliance on any forward-looking statements. Some of the factors that could cause actual results to differ materially from these contemplated by such forward-looking statements are discussed in the periodic reports urban-gro files with the Securities and Exchange Commission.

實際結果可能存在重大差異。因此，您不應過度依賴任何前瞻性陳述。一些可能導致實際結果與此類前瞻性陳述預期結果存在重大差異的因素在城市發展向美國證券交易委員會提交的定期報告文件中進行了討論。

These documents are available in the investors section of the company's website, and on the Securities and Exchange Commission's website. We do encourage you to review these documents carefully.

這些文件可在公司網站的投資者部分以及美國證券交易委員會的網站上找到。我們鼓勵您仔細查看這些文件。

Lastly, a copy of our earnings press release and a webcast replay for today's call may be found on the investor relations section of our website, which again is at ir.urban-gro.com.

最後，我們的收益新聞稿副本和今天電話會議的網路廣播重播可以在我們網站的投資者關係部分找到，該部分也位於 ir.urban-gro.com。

With that, I'll now turn the call over to Brad.

現在，我將把電話轉給布拉德。

Thank you, Dan. Good afternoon, everyone, and thank you for joining us today. Slightly over a year ago, we launched the diversification initiative, focused upon leveraging our professional services [team] to efficiently seek and build out additional revenue streams for the company.

謝謝你，丹。大家下午好，感謝您今天加入我們。大約一年多前，我們啟動了多元化計劃，重點是利用我們的專業服務[團隊]有效地為公司尋求和建立額外的收入來源。

I'm excited to report that we continued to execute and gain momentum on this strategy as urban-gro has evolved into a multisector-focused professional services consulting firm with more than 140 architects, interior designers, engineers, construction managers, project managers, horticulturists and others on our team, we have successfully expanded our operating focus beyond our before controlled environment practice to include clients across multiple sectors, including industrial, commercial, hospitality, recreation, education, and healthcare.

我很高興地報告，隨著Urban-gro 已發展成為一家專注於多部門的專業服務顧問公司，擁有140 多名建築師、室內設計師、工程師、施工經理、專案經理、園藝師，我們將繼續執行此策略並獲得動力和我們團隊的其他成員，我們成功地將我們的營運重點擴展到先前的受控環境實踐之外，涵蓋多個行業的客戶，包括工業、商業、酒店、娛樂、教育和醫療保健。

In regards to our third quarter performance, and consistent with expectations, we marked another sequential improvement in both revenues and adjusted EBITDA. Revenue of $20.9 million, a sequential improvement of $2.1 million or 11%, came very close to exceeding our all-time quarterly high of %21.1 million reached in Q1 '22.

就我們第三季的業績而言，與預期一致，我們的營收和調整後 EBITDA 再次連續改善。營收為 2,090 萬美元，季增 210 萬美元或 11%，非常接近超過 22 年第一季達到的歷史季度最高點 2,110 萬美元。

The adjusted EBITDA loss was $1.3 million, a sequential improvement of $0.7 million. And while our significant revenues this quarter resulted in retiring 27% of our Q3 beginning backlog, we signed enough new contracts to drive our backlog entering the fourth quarter to $84 million -- a 6% sequential increase.

調整後的 EBITDA 損失為 130 萬美元，比上一季減少了 70 萬美元。雖然我們本季度的巨額收入導致我們取消了第三季度開始積壓訂單的 27%，但我們簽署了足夠的新合同，使進入第四季度的積壓訂單達到 8400 萬美元，環比增長 6%。

Despite the ongoing headwinds within the CEA centers, our diversification strategy has served as a source of strength for the company. Our team is now more efficiently adapting to the shifting environment, and we continue to focus on optimizing the productivity of our professional services employees as we work towards a period of more marked revenue acceleration.

儘管 CEA 中心內部持續存在阻力，但我們的多元化策略已成為公司的力量來源。我們的團隊現在正在更有效地適應不斷變化的環境，我們將繼續專注於優化專業服務員工的生產力，並努力邁向收入更顯著加速的時期。

Although we made some difficult decisions to right-size our staff earlier in the first half of the year, we feel comfortable at current levels given the demand that we see.

儘管我們在上半年做出了一些調整員工規模的艱難決定，但考慮到我們所看到的需求，我們對目前的水平感到滿意。

Now turning to [prints] and sector trends. Sector diversification has most definitely assisted in insulating our business from the broader weakness that the cannabis and vertical farming segments are working through. Although the CEA sector remains an important component of our future growth, our success is no longer fully dependent on its success. We've evolved into, and are now regarded by our clients as, a professional services consulting company that offers turnkey design build, and equipment integration solutions to multiple markets.

現在轉向[印刷品]和行業趨勢。行業多元化無疑有助於我們的業務免受大麻和垂直農業領域正在解決的更廣泛弱點的影響。儘管 CEA 部門仍然是我們未來成長的重要組成部分，但我們的成功不再完全依賴它的成功。我們已發展成為一家專業服務顧問公司，現已被客戶視為為多個市場提供交鑰匙設計建造和設備整合解決方案的公司。

Consistent with the second quarter, more than two-thirds of our revenue this quarter was generated in these sectors outside of CEA and included a combination of new projects with both existing and new clients, and continues to include top-tier companies, and some Fortune 50 clients as well.

與第二季一致，本季超過三分之二的收入來自 CEA 以外的這些行業，包括與現有客戶和新客戶的新項目組合，並且繼續包括頂級公司和一些《財富》雜誌還有50個客戶。

In the CEA sector, our equipment revenues continued to be compressed by the weak cannabis market. During the first nine months of '23, we have experienced a period-over-period decline of more than $20 million of 18% margin business. While it's impossible to ignore the negative impact that this has had on our financial performance, our diversification has enabled us to keep our experienced team strong and intact. And as a result, we remain well positioned in this sector, but we'll be ready to handle the surge in demand when the cannabis market rebuilds.

在 CEA 領域，我們的設備收入持續受到大麻市場疲軟的壓縮。 2023 年的前 9 個月，我們的利潤率為 18% 的業務年減了超過 2,000 萬美元。雖然不可能忽視這對我們的財務表現的負面影響，但我們的多元化使我們能夠保持經驗豐富的團隊的強大和完整。因此，我們在這個領域仍然處於有利地位，但當大麻市場重建時，我們將準備好應對需求激增。

As being said, in the interim, we're still seeing steady activity and are expecting to continue to sign design build contracts in a variety of states. For urban-gro today, and apart from our cannabis clients lacking access to much needed capital, the primary block to more rapidly increasing our business in this market is one that we cannot control. However, it's also one that will continue to slowly dissipate.

如上所述，在此期間，我們仍然看到穩定的活動，並期望繼續在多個州簽署設計建造合約。對於今天的城市種植業來說，除了我們的大麻客戶缺乏獲得急需的資金之外，我們無法控制在這個市場上更快地增加業務的主要障礙。然而，它也會繼續慢慢消散。

There are a number of legalized states like New York, Alabama, and Georgia, among others, for example, that have paused the awarding of licenses due to regulatory and legal delays within their state. We have a significant number of clients with projects in these states, some of which have already completed design.

例如，紐約州、阿拉巴馬州和喬治亞州等一些合法化的州由於州內監管和法律上的延誤而暫停了許可證的頒發。我們在這些州擁有大量專案客戶，其中一些已經完成設計。

But we're confident they'll move forward to the construction build stage with these delays are resolved and licenses are received. This is evidenced in the third quarter, where we had two such clients move forward to construction, and we'll continue to announce these successes as contracts are signed.

但我們相信，隨著這些延誤得到解決並獲得許可證，他們將進入施工階段。這在第三季度得到了證明，我們有兩個這樣的客戶進入了施工階段，我們將在合約簽署後繼續宣布這些成功。

As it relates to our European entity, the size and quality of the company's European pipeline is the strongest that it's been since opening the entity since June of '22. While the cannabis markets abroad continue to show green shoots in multiple countries, our European business will still take time to sustainably scale its operations.

由於與我們的歐洲實體相關，該公司歐洲通路的規模和品質是自 22 年 6 月開設該實體以來最強勁的。儘管海外大麻市場在多個國家繼續萌芽，但我們的歐洲業務仍需要時間來永續擴大業務規模。

I was in Europe last week meeting with both clients and the team, and I can assure you that they remain diligently focused on driving strong returns.

上週我在歐洲與客戶和團隊會面，我可以向您保證，他們仍然致力於推動強勁的回報。

Now shifting to our guidance through the fourth quarter of '23. Demonstrating our ongoing commitment to deliver sequential growth on both the top and bottom line, we anticipate revenues to be approximately $30 million, which I would add would be a new record for us by more than 40%. And we expect to realize breakeven to slightly positive adjusted EBITDA, which would mark an important shift back to positive cash flow and subsequently meeting a goal that we've been working hard to achieve this past year.

現在轉向我們 2023 年第四季的指導。我們預計收入將達到約 3000 萬美元，這反映了我們對實現營收和利潤連續增長的持續承諾，我想補充一下，這將是我們的新紀錄，增幅超過 40%。我們預計將實現盈虧平衡，調整後的 EBITDA 略有正數，這將標誌著回到正現金流的重要轉變，並隨後實現我們去年一直努力實現的目標。

In closing, the company continues to remain closely aligned with the interests of our shareholders. In addition to the open market equity purchasesm, made by myself and other directors in the second and third quarters, and totaling about 1.5% of shares outstanding, my leadership team demonstrated their commitment as well.

最後，公司繼續與股東的利益保持緊密一致。除了我和其他董事在第二季和第三季進行的公開市場股票購買（總計約 1.5% 的已發行股票）之外，我的領導團隊也表現出了他們的承諾。

Led with a 50% commitment for myself, each executive vice president and officer of the company voluntarily opted to take a stock grant in lieu of up to 50% of their base salary during the third quarter.

在我自己承諾 50% 的情況下，公司的每位執行副總裁和管理人員都自願選擇在第三季以股票獎勵代替其基本工資的 50%。

The key takeaways here -- first, our Board, as well as our leadership team and their teams, continue to strongly believe in the future of the company. Second, our diversification strategy is working. It continues to gain momentum, and we have alignment on our goals across our organization. And third, we're doing everything in our power to maintain this positive momentum.

這裡的關鍵要點是——首先，我們的董事會以及我們的領導團隊及其團隊繼續堅信公司的未來。其次，我們的多元化策略正在發揮作用。它繼續獲得動力，並且我們整個組織的目標保持一致。第三，我們正在盡一切努力保持這種積極勢頭。

Thank you, and with that, I will now turn the call over to Dick.

謝謝您，我現在將把電話轉給迪克。

Thanks, Brad. In the third quarter of 2023, we generated revenue of $20.9 million, which represents a sequential improvement of $2.1 million, or 11% over the $18.8 million of revenue generated in the second quarter of 2023 -- and an $8.6 million or 69% improvement over the $12.4 million of revenue generated in the prior year period.

謝謝，布拉德。 2023 年第三季度，我們的營收為2,090 萬美元，比2023 年第二季的1,880 萬美元營收連續增加了210 萬美元，即11%，比2023 年第二季的營收增加了860 萬美元，即69%。上一年期間產生的收入為 1,240 萬美元。

The increase in revenue over the prior year period was driven by a $9.4 million increase in organic growth of construction design-build revenue, reflecting increases in the number of projects and average size of projects that we are working on in sectors outside of CEA. This increase was offset by a decrease in equipment systems revenue, which, as Brad discussed earlier, we attribute to the ongoing softness in the cannabis sector.

上年同期收入的成長是由建築設計建造收入有機增長 940 萬美元推動的，反映了我們在 CEA 以外的行業開展的項目數量和項目平均規模的增加。這一增長被設備系統收入的下降所抵消，正如布拉德之前所討論的，我們將其歸因於大麻行業的持續疲軟。

Gross profit was $2.9 million, or 14% of revenue, in the third quarter of 2023 compared to $2.9 million or 15% of revenue in the second quarter of 2023 -- and $2.6 million, or 21% of revenue, in the prior year period. The decrease in gross profit margin for both of these comparative periods was driven by the impact of revenue mix, where we experienced a substantial increase in lower-margin construction design build revenue, as well as a decrease in higher margin equipment systems rebates.

2023 年第三季的毛利為290 萬美元，佔營收的14%，而2023 年第二季的毛利為290 萬美元，佔營收的15%，去年同期毛利為260 萬美元，佔收入的21% 。這兩個比較時期的毛利率下降是由收入組合的影響所推動的，其中我們經歷了利潤率較低的建築設計建造收入的大幅增加，以及利潤率較高的設備系統回扣的減少。

Operating expenses were $6 million in the third quarter of 2023, which on a sequential basis, is a decrease of $0.8 million. Operating expenses in the third quarter of 2023 are $3.5 million less than operating expenses of $9.5 million in the third quarter of 2022.

2023 年第三季營運費用為 600 萬美元，季減 80 萬美元。 2023 年第三季的營運費用比 2022 年第三季的 950 萬美元減少了 350 萬美元。

The prior year quarter included a one-time business development expense of $3.3 million. But even excluding this one-time expense, operating expenses decreased $0.2 million on a year-over-year basis. Both of these decreases are associated with the company's expense optimization and resource reallocation initiative.

去年同期的一次性業務開發費用為 330 萬美元。但即使排除這筆一次性費用，營運費用也比去年同期減少了 20 萬美元。這兩項下降都與公司的費用優化和資源重新分配計劃有關。

Non-operating expenses were $0.3 million in the third quarter of 2023, compared to non-operating expenses of $1.8 million in the prior year quarter. Net loss was $3.4 million, or a negative $0.29 per diluted share, in the current quarter compared to a net loss of $8.7 million or a negative $0.81 per diluted share in the prior year period.

2023 年第三季的非營運支出為 30 萬美元，而去年同期的非營運支出為 180 萬美元。本季淨虧損為 340 萬美元，即稀釋後每股負 0.29 美元，去年同期淨虧損為 870 萬美元，即稀釋後每股負 0.81 美元。

Adjusted EBITDA improved by $0.7 million sequentially to negative $1.3 million in the third quarter of 2023, which is an improvement of $1.0 million compared to the prior year period. The sequential improvement in our adjusted EBITDA was driven by lower operating expenses as previously discussed.

2023 年第三季調整後 EBITDA 環比增加 70 萬美元，達到負 130 萬美元，比去年同期增加 100 萬美元。如同前面所討論的，我們調整後的 EBITDA 的連續改善是由營運費用降低所推動的。

For the first nine months of 2023, we reported total revenue of $56.5 million compared to $49.7 million in the first nine months of 2022, representing an increase of $6.8 million or 14%. Net loss was $14.0 million compared to a net loss of $11.1 million, and adjusted EBITDA was negative $6.8 million compared to negative $2.2 million in the prior year comparable period.

2023 年前 9 個月，我們的總收入為 5,650 萬美元，而 2022 年前 9 個月的總收入為 4,970 萬美元，增加了 680 萬美元，增幅為 14%。淨虧損為 1,400 萬美元，而去年同期淨虧損為 1,110 萬美元；調整後 EBITDA 為負 680 萬美元，而去年同期為負 220 萬美元。

This decrease in adjusted EBITDA was predominantly due to the combined impact of an increase in general and administrative expenses of $3.2 million and a reduction in gross profit of $2.4 million.

調整後 EBITDA 的下降主要是由於一般和管理費用增加 320 萬美元以及毛利減少 240 萬美元的綜合影響。

Turning to our balance sheet, we ended the third quarter with $4.8 million of cash and no bank debt. To support the strong performance of our construction operations, subsequent to September 30, we entered into a non-dilutive asset-based lending facility in order to better manage our working capital. To date, that facility remains undrawn.

看看我們的資產負債表，第三季末我們有 480 萬美元現金，沒有銀行債務。為了支持我們建築業務的強勁表現，9 月 30 日之後，我們簽訂了一項非稀釋性資產貸款安排，以便更好地管理我們的營運資金。迄今為止，該貸款仍​​未動用。

Our total backlog as of September 30, 2023 was approximately $84 million, reflecting an increase of $5 million or 6%, on a sequential basis, and $17 million, or 25%, versus the prior year. This backlog is comprised of $77 million in construction design build, $5 million of professional services, and $2 million of equipment systems contracts, and we continue to be encouraged by the increasing number of sectors that make up our backlog.

截至 2023 年 9 月 30 日，我們的積壓訂單總額約為 8,400 萬美元，季增 500 萬美元，即 6%；與前一年相比，增加 1,700 萬美元，即 25%。該積壓訂單包括 7700 萬美元的建築設計建造、500 萬美元的專業服務和 200 萬美元的設備系統合同，我們繼續對構成我們積壓訂單的行業數量不斷增加感到鼓舞。

As communicated on past calls, our backlog remains a realistic and trusted indication of our future business. Supported by our increasing backlog and pipeline, we remain confident that our cash position, combined with our asset-based non-dilutive lending facility, will provide us the necessary flexibility to manage through the macroeconomic market circumstance. We continue to remain focused on our execution and returning to positive adjusted EBITDA.

正如過去電話中所傳達的那樣，我們的積壓訂單仍然是我們未來業務的現實且值得信賴的指標。在我們不斷增加的積壓和管道的支持下，我們仍然相信我們的現金狀況，加上我們基於資產的非稀釋貸款安排，將為我們提供必要的靈活性來管理宏觀經濟市場環境。我們繼續專注於我們的執行並恢復正向調整後的 EBITDA。

That concludes our prepared remarks. Operator, please open the call for questions.

我們準備好的演講到此結束。接線員，請打開電話提問。

Thank you. The floor is now open for questions. (Operator Instructions)

謝謝。現在可以提問。 （操作員說明）

Our first question is coming from Eric Des Lauriers of Craig-Hallum. Please go ahead.

我們的第一個問題來自 Craig-Hallum 的 Eric Des Lauriers。請繼續。

Great. Thank you for taking my questions. First one is on the non-dilutive asset-backed facility. Certainly great to hear you guys get some added balance sheet flexibility here. Could you just provide some more details on whether that's the overall size of the facility? What assets is this backed by? Just any more detail you can provide on that facility would be great. Thanks.

偉大的。感謝您回答我的問題。第一個是非稀釋性資產支援工具。當然很高興聽到你們在這裡獲得了一些額外的資產負債表彈性。您能否提供更多細節來說明這是否是該設施的整體規模？這是由什麼資產支持的？如果您能提供有關該設施的更多詳細信息，那就太好了。謝謝。

Thanks, Eric. Dick, you want to take that? Please.

謝謝，埃里克。迪克，你想接受這個嗎？請。

Sure. Eric, yes, it's a facility really backed by the receivables and primarily backed by the construction receivables. We've seen a large increase in that asset base for us as that construction operations sector has really grown for us.

當然。艾瑞克，是的，這是一項真正由應收帳款支援的設施，主要由建築應收款項支援。我們看到我們的資產基礎大幅增加，因為建築營運行業確實在成長。

The facility we entered into is for up to the $8 million lending on that. And then like I say, it's really receivables-based.

我們為此提供了高達 800 萬美元的貸款。就像我說的，它實際上是基於應收帳款的。

And then is that a revolving facility, where you're able to sort of pay that down as needed or? Yes.

那麼這是一個循環設施，您可以根據需要支付費用嗎？是的。

It's not a term facility, so it is a kind of borrow-as-needed basis from the standpoint of of what we do under that facility. So we'll only incur interest as we have borrowing against that.

這不是一項定期貸款，因此從我們在該貸款下所做的事情的角度來看，它是一種按需借款的基礎。因此，只有當我們有抵押借款時，我們才會產生利息。

Alright, great.

好吧，太棒了。

(multiple speakers) -- We're looking to support the growth expected here in the quarters ahead.

（多名發言者）－我們希望支持未來幾季的預期成長。

Yes. No, yes, that's a great to hear. And again, yes, good to see the added flexibility. My next question is on G&A. It's very nice to see these costs coming down here.

是的。不，是的，很高興聽到這個消息。再說一次，是的，很高興看到靈活性的增加。我的下一個問題是關於一般行政費用。很高興看到這些成本在這裡下降。

Obviously, you guys are doing a good job kind of keeping a lid on that. I understood there's some deferrals to stock-based compensation over cash. How should we think of that G&A line? Maybe excluding stock-based comp, going forward whether that's just kind of Q4, or sort of into 2024?

顯然，你們在這方面做得很好。據我了解，以股票為基礎的薪酬比現金薪酬有些延期。我們該如何看待 G&A 線？也許不包括基於股票的比較，無論是第四季度還是 2024 年？

As the business does ramp going forward, is this something that we should see -- should we see G&A sort of going up commensurate with revenues or with gross profit? Or are these sort of more permanent cost cuts that you've done? I guess if you could just provide some more color on some of the cost cuts that you've made so far, and how to think of those going forward? Thanks.

隨著業務確實在向前發展，這是我們應該看到的嗎？我們是否應該看到一般管理費用與收入或毛利相稱的增長？或者說，這些是您已經完成的更持久的成本削減措施嗎？我想您是否可以就您迄今為止所做的一些成本削減提供更多信息，以及如何看待未來的這些削減？謝謝。

Thanks Eric. I'll start, Dick, then I'll turn it to you for the detail. As I've communicated on past calls, Eric, we are -- and we acknowledged -- we're top end loaded when we made the acquisitions. We moved the leaders of those companies into Senior EVP roles within the company.

謝謝埃里克。我先開始，迪克，然後我會把細節交給你。正如我在過去的電話中所傳達的那樣，埃里克，我們承認，當我們進行收購時，我們已經處於高端狀態。我們將這些公司的領導者調任為公司內的高階執行副總裁。

One of the reasons we made the acquisitions we did was to hire that specific skill set or talent. And so as we grow as we start to deliver $30 million to $50 million plus quarters, we don't we do not anticipate needing to add any more senior management EVP. or higher. So it will be it will be a nice evolution into the future.

我們進行收購的原因之一是僱用特定的技能或人才。因此，隨著我們開始交付 3,000 萬至 5,000 萬美元以上的季度業績，我們預計不會再增加任何高階管理執行副總裁。或更高。所以這將是未來的一個很好的演變。

We didn't want to cut into the muscle when we cut earlier this year. So it was a sacrifice that we are willing to make in order to maintain the brain power for future quarters.

今年早些時候削減時我們不想削減肌肉。因此，為了維持未來幾季的腦力，我們願意做出犧牲。

Dick, did you want to jump in for the detail?

迪克，你想了解細節嗎？

Yes, and I'd add to that, Eric, that kind of goes to our adjusted EBITDA reconciliation. So in the current year, one of the items that we have included in G&A that we've talked about before is because of the growth we were seeing, we felt it necessary to put in a retention incentive program for 2023.

是的，我想補充一點，埃里克，這涉及到我們調整後的 EBITDA 調節表。因此，今年，我們之前討論過的 G&A 中包含的項目之一是，由於我們看到的增長，我們認為有必要在 2023 年制定保留激勵計劃。

That will not be in place going forward. That's going to be a reduction for us going into 2024. But to reiterate with what Brad said, we really feel that with the staffing we have right now, we can handle much more revenue than we have in place today on a quarterly basis.

今後這一點將不再適用。進入 2024 年，這對我們來說將是一個減少。但重申一下 Brad 所說的，我們確實認為，憑藉我們現在擁有的人員配置，我們可以按季度處理比目前多得多的收入。

We're seeing the number of jobs -- the jobs that we have, the much larger size dollar amount -- and we're able to handle that without really increasing the number of staffing that we have. So even though the G&A will go up some, it will be anywhere near proportionate to the growth in the revenue we're going to see.

我們看到了工作的數量——我們擁有的工作，更大的美元金額——我們能夠在不真正增加員工數量的情況下處理這個問題。因此，儘管一般行政費用會增加一些，但它與我們將看到的收入成長幾乎成正比。

All right. That's great to hear. Thank you for taking my questions.

好的。聽到這個消息我很高興。感謝您回答我的問題。

Thank you.

謝謝。

Thank you.

謝謝。

Brian Wright, ROTH Capital Partners.

布萊恩‧賴特 (Brian Wright)，羅仕資本合夥人。

Thanks. Good afternoon. I mean, can we dive a little bit deeper on that detail because like for the quarter, there were some deferrals where people were buying stock back particularly beneath their regular salary. So, seeing in the fourth quarter that [revert], unless that's been extended. So just wondering about for that line item, kind of understand what's the incremental increase from third quarter to fourth quarter?

謝謝。午安.我的意思是，我們可以更深入地研究這個細節嗎？因為就像本季一樣，有一些延期，人們以低於正常工資的價格回購股票。因此，在第四季度看到[恢復]，除非延長了。因此，只是想知道該訂單項，了解第三季到第四季的增量是多少？

Yes, Brian, as you've indicated, there was there was a reflective reduction in G&A because of that salary option taken in stock by people. There was a little bit of it in Q2, it's primarily in Q3. So that does mean we're going to see a little bit of an increase in G&A in the fourth quarter.

是的，布萊恩，正如你所指出的，由於人們將工資選擇存入股票，一般行政費用有所減少。第二季有一點，主要是第三季。因此，這確實意味著我們將在第四季度看到一般管理費用略有增加。

I mean, just to kind of clarify, we're not talking millions of dollars here or anything because of what people did. The total was right around $200,000 in terms of what people took as a reduction of their salary in stock instead.

我的意思是，只是為了澄清一下，我們在這裡談論的不是數百萬美元或其他任何事情，因為人們做了什麼。就人們認為股票工資的減少而言，總金額約為 20 萬美元。

So there is going to be an increase in G&A related to that. But we're also going to see some other savings taking place in the fourth quarter to basically keep our G&A. Although as projected right now, slightly over where our Q3 is? Not significantly over where Q3 is.

因此，與此相關的一般管理費用將會增加。但我們還將在第四季度看到其他一些節省，以基本上維持我們的一般管理費用。儘管按照目前的預測，略高於我們第三季的水平？與第三季的情況沒有顯著差異。

Great. Thank you so much for the additional color on that. Maybe the [key's] off, but I just hadn't seen it yet.

偉大的。非常感謝您為此添加的顏色。也許[鑰匙]關了，但我只是還沒看到它。

So, wanted to think about just like end markets as far as the backlog and where the end market -- how you would kind of allocate the backlog from an end market perspective between you know, however you want to do it. Healthcare versus CEA. versus you name it, but just some insights on how to think about the industries of the backlog?

因此，想像終端市場一樣考慮積壓和終端市場在哪裡——從終端市場的角度來看，你將如何在你知道的、你想做的事情之間分配積壓的訂單。醫療保健與 CEA。不是你能想到的，而是關於如何思考積壓產業的一些見解？

Sure Brian. So Brian, whereas our quarterly revenues is more than two-thirds were non-CEA, our backlog's still -- the majority of i,t more than two-thirds, is in the controlled and [farm-and-eggs] space. We anticipate growth on both sides. But on the non-CEA side, these contracts are typically shorter in length. And when they sign, they immediately want us to start executing on whether it's design or on the construction side.

當然，布萊恩。所以布萊恩，雖然我們的季度收入超過三分之二來自非 CEA，但我們的積壓訂單仍然——其中大部分超過三分之二——是在受控和[農場和雞蛋]領域。我們預計雙方都會成長。但在非 CEA 方面，這些合約的長度通常較短。當他們簽字時，他們立即希望我們開始執行，無論是設計還是施工方面。

The CEA contracts, especially now, as we're focused on the projects that we are signing, they're larger and they're more extensive with design and build. Those can spread out over six quarters, sometimes even as long as eight quarters.

CEA 合同，尤其是現在，因為我們專注於我們正在簽署的項目，它們的規模更大，設計和建造也更廣泛。這些可能分散到六個季度，有時甚至長達八個季度。

Great. Okay. Thank you for that color. You know, I'm kind of like, torn, because I churned through your commentary about the $30 million in quarterly revenue and even the $50 million optionality to get into those levels. So I'm assuming there you see things that we don't see right as far as kind of that optimism.

偉大的。好的。謝謝你的那個顏色。你知道，我有點左右為難，因為我仔細閱讀了你對 3000 萬美元季度收入的評論，甚至還有 5000 萬美元進入這些水平的選擇。所以我假設你看到了一些我們不認為是樂觀的事情。

But then -- so that's great on the positive side. But then if I look at just like that, ramp sequentially third quarter, from the $21 million up to the around $30 million for the fourth quarter. So you could -- how can we get comfort with that kind of ramp in the fourth quarter?

但是，從積極的方面來說，這很好。但如果我這樣看的話，第三季將連續成長，從 2,100 萬美元成長到第四季的 3,000 萬美元左右。所以你可以－我們如何對第四季的這種成長感到滿意？

I understand, Brian, completely on the question, and what we have insight into and haven't said anything on goes to kind of our sales funnel, which which we don't talk about. But there are a lot of projects in the sales funnel, getting ready to -- in our mind -- come to fruition. That would be announced when those are signed.

布萊恩，我完全理解這個問題，我們已經深入了解但沒有說什麼的內容涉及我們的銷售漏斗，我們不談論這一點。但在我們看來，銷售漏斗中有許多項目正準備實現。這將在簽署時宣布。

Clearly a substantial amount of the revenue that we're talking about for the quarter -- fourth quarter -- is going to be from a construction perspective. So as those larger projects get signed, there's a lot of work that can be done on those projects upfront.

顯然，我們談論的本季（第四季）收入的很大一部分將來自建築方面。因此，當這些較大的項目簽署時，可以在這些項目上預先完成大量工作。

So I completely understand from the question that you asked, and that you might not necessarily see it in the backlog that we're reporting as of the end of September. But with our insight into the funnel, we're highly confident that that revenue is going to be there.

因此，我完全理解您提出的問題，並且您不一定會在我們截至 9 月底報告的積壓工作中看到它。但憑藉我們對通路的深入了解，我們非常有信心該收入將會存在。

And Brian, I'll add to the back of it. In the third quarter, we retired 27% of our beginning backlog. And so now looking at entering the fourth quarter with $84 million. If we're able to maintain that proportion of what we recognized in the quarter, it shows the other side of what Dick was talking about in terms of the confidence level of where we're starting. And then you add what Dick's discussing on, what we're anticipating, to top it off in order to hit the $30 million mark.

布萊恩，我將添加到它的後面。第三季度，我們淘汰了初期積壓工作的 27%。現在預計第四季的營收將達到 8,400 萬美元。如果我們能夠保持我們在本季度所認識到的這一比例，那就表明了迪克所談論的另一面，即我們對起點的信心水平。然後添加迪克正在討論的內容以及我們的預期內容，以達到 3000 萬美元的目標。

Great. Great. And then are there any other things that are a part of that? You know, just details like Ohio approval for adult use, things of that nature, that you could point to as well?

偉大的。偉大的。還有其他的東西是其中的一部分嗎？您知道，您也可以指出諸如俄亥俄州批准成人使用之類的細節嗎？

Ohio? Fantastic for the industry. Another state legalized. By the time they get the regulations in place, you're probably looking at third quarter of '24. So for us, it would be great. We were talking to clients ahead of time. They would start hopefully to move forward in more serious discussions with us.

俄亥俄州？對於這個行業來說非常棒。另一個州合法化。當他們制定法規時，您可能會看到 24 年第三季。所以對我們來說，這會很棒。我們提前與客戶交談。他們將滿懷希望地開始與我們進行更認真的討論。

But I would -- I touched on it a little bit earlier. For us, we don't need the entire industry to turn around, right? Of course, we're fully supportive and pulling for rescheduling and safe banking, et cetera, to pass.

但我會——我早些時候談到過它。對我們來說，我們不需要整個產業都扭虧為盈，對嗎？當然，我們完全支持並推動重新安排和安全銀行業務等的通過。

But for us, we have a lot of clients in these states that just have regulatory delays and they are funded. All they need is a license, then the funding will be released and then they move forward to the construction side. So very optimistic.

但對我們來說，我們在這些州有很多客戶，只是監管延遲，但他們得到了資金。他們所需要的只是一個許可證，然後資金就會被釋放，然後他們就會進入施工方。所以非常樂觀。

States like New Jersey is rapidly opening up now. Hopefully, New York won't be too far behind. And when they do open up, and they award the licenses, for us, we can't guess because it could take a week or it could take three months.

像新澤西州這樣的州現在正在迅速開放。希望紐約不會落後太遠。當他們開放並授予我們許可證時，我們無法猜測，因為這可能需要一周或三個月的時間。

But as soon as they open up, and we sign those contracts, we'll definitely want to get them up and announce them for sure, but we don't have to wait for overall industry turnaround to successfully generate significant revenues and profits.

但一旦他們開放，我們簽署這些合同，我們肯定會想讓他們起來並宣布它們，但我們不必等待整個行業的轉變才能成功產生可觀的收入和利潤。

Great, great. That sounds great. I think that does it for me.

很棒很棒。聽起來不錯。我認為這對我有用。

Thank you very much. Appreciate it. See you next week.

非常感謝。欣賞它。下週見。

Anthony Vendetti, Maxim Group.

安東尼文代蒂，馬克西姆集團。

Hey, guys, this is Thomas McGovern on for Anthony. Thanks for taking my questions. So start, just kind of piggybacking on what you guys were just discussing, you just mentioned that New Jersey is starting to open up. In the cannabis sector and you're seeing some positive signs in New York.

嘿，夥計們，這是安東尼的托馬斯·麥戈文。感謝您回答我的問題。所以開始吧，只是藉用你們剛才討論的內容，你們剛剛提到新澤西州正在開始開放。在大麻產業，你在紐約看到了一些正面的跡象。

I'm just wondering, you know, now that we have a little bit more visibility off of last quarter, do you guys see any potential inflection points in the cannabis market as a whole? I know you just said that you don't need a full industry turnaround to start recognizing some revenue there, but just maybe you could provide your industry insight in there and then just how the market is starting to shape up. I'd appreciate that.

我只是想知道，現在我們對上季度的情況有了更多的了解，你們是否看到整個大麻市場有任何潛在的轉折點？我知道您剛才說過，您不需要整個行業的轉變才能開始認識到那裡的一些收入，但也許您可以提供您的行業見解，然後了解市場如何開始形成。我將不勝感激。

Sure. Thanks a lot. Thanks for the question. Inflection point, of course, the main one will be rescheduling. And as I sit on the board of the National Cannabis Roundtable, and as most know, this is probably something that would take place in Q2 of next year -- remain very optimistic. The industry needs something significant like rescheduling for sure.

當然。多謝。謝謝你的提問。當然，最主要的拐點將是重新安排。正如我擔任全國大麻圓桌會議的董事會成員一樣，正如大多數人所知，這可能會在明年第二季度發生——保持非常樂觀。該行業確實需要一些重大的事情，例如重新安排時間。

In terms of at a state level for us, it could be awarding new licenses in existing states like Florida, for example, it is New York moving forward at a more rapid speed and expanding the award of licenses to additional groups that are tied into specific segments. New Jersey when it opened up.

就我們的州一級而言，它可能會在佛羅裡達州等現有州頒發新的許可證，例如，紐約以更快的速度前進，並將許可證授予擴大到與特定領域相關的其他團體段。新澤西州開放時。

We have had great -- we've made great progress with certain clients, but there's also another funding hurdle as well that these individual groups have to jump over too. So hopefully something like a safe banking passing. It was hopeful again, like last year, that could happen by the end of the year.

我們與某些客戶取得了很大的進展，但還有另一個資金障礙，這些單獨的團體也必須跨越。所以希望銀行能安全通過。就像去年一樣，人們再次充滿希望，這可能會在年底實現。

It's now most highly unlikely that it will happen. It could spill into Q1 or Q2, but there's a lot of hurdles, of course, facing the industry.

現在看來這種情況發生的可能性極小。它可能會蔓延到第一季或第二季度，但當然，該行業面臨著許多障礙。

But for us, it's just releasing the licenses that are active in already legal states, and getting through those regulatory delays. I wish we could forecast it better for sure, but it's quite amazing how quickly they can they can pop up and how fast the clients want to move.

但對我們來說，它只是發佈在已經合法的州有效的許可證，並克服這些監管延誤。我希望我們能夠更好地預測它，但令人驚訝的是它們能夠以多快的速度突然出現，以及客戶想要多快地移動。

We had two in Q3, and those are both projects that we had anticipated, probably that would move toward a couple of quarters faster. And we had them in the schedule for Q4, Q1 and boom. They moved forward once those licenses were released. So it's a nice pleasant surprise when it happens for sure.

我們在第三季有兩個項目，這些都是我們預期的項目，可能會加快幾個季度的速度。我們將它們列入了第四季、第一季和繁榮期的時間表中。一旦這些許可證被釋放，他們就會繼續前進。所以當它確實發生時，這是一個令人愉快的驚喜。

Understood. I appreciate that color. And then my next question is on the international front. So last quarter you guys mentioned you had the highest top line and most of that had been driven by design. You also discussed how Germany was establishing some regulations, but it was taking some time, as you were even looking at some opportunities in vertical farming in the Middle East.

明白了。我很欣賞那種顏色。我的下一個問題是關於國際方面的。所以上個季度你們提到你們擁有最高的營收，其中大部分是由設計驅動的。您也討論了德國如何制定一些法規，但這需要一些時間，因為您甚至正在尋找中東垂直農業的一些機會。

Being that you were just there last week, if you could provide us an update on how you guys are looking at the international market and kind of what to expect moving into '24? That would be appreciated as well. Thanks.

鑑於您上週剛在那裡，您能否向我們介紹一下您如何看待國際市場以及對 24 世紀的展望？這也將不勝感激。謝謝。

Yes, in the Middle East, that's not a focus for us right now. It was initially when we opened that office. But we quickly decided just to focus in our backyard -- in and around the Netherlands, our offices, right outside of Amsterdam.

是的，在中東，這不是我們現在的焦點。那是我們最初開設該辦公室的時候。但我們很快就決定只專注於我們的後院——荷蘭及其周邊地區，我們的辦公室，就在阿姆斯特丹郊外。

And I was there last week. Met with clients in both the cannabis side, and then also the vertical farming side. On vertical farming, there's a strong focus on moving strawberries indoors. But we've also had clients in the North American market where we're having those same discussions of design building those facilities around moving berry production indoors.

上週我在那裡。會見了大麻方面的客戶，然後又會見了垂直農業方面的客戶。在垂直農業中，人們非常關注將草莓移入室內。但我們在北美市場也有客戶，我們正在圍繞將漿果生產轉移到室內進行設計建造這些設施的討論。

From a cannabis standpoint, the experiments that has been active in the Netherlands for over two years now -- it is moving forward. These groups are being funded, and they're moving forward with the buildout of their facilities. So that's nice to see, because there was a long pause of about four or five quarters.

從大麻的角度來看，在荷蘭已經活躍了兩年多的實驗正在向前邁進。這些團體正在獲得資助，並且正在推進其設施的建設。所以很高興看到這一點，因為有大約四到五個季度的長時間停頓。

So it's nice to see that start to move forward and it would be a good strong accomplishment for urban-gro to go to the next stage, past design, with one of these entities. As far as Germany, similar to what I just mentioned on Ohio, it's just getting the regulations in place.

因此，很高興看到這一點開始向前發展，對於城市發展來說，與這些實體之一一起進入下一階段（過去的設計）將是一項巨大的成就。就德國而言，與我剛才提到的俄亥俄州類似，它只是將法規落實到位。

Originally they were going to move forward. Facilities had to be built in country. But that went against the overall EU mandate, and so now they've toned it down. They're looking at more of a social club phase one approach.

本來他們是要繼續往前走的。設施必須在國內建造。但這違背了歐盟的整體授權，因此現在他們已經緩和了態度。他們正在考慮更多社交俱樂部第一階段的方法。

Fortunately, for us, a social club approach, it still requires the build-out of facilities because hundreds of social club licenses can go together to build out a facility. So right now, the Netherlands, the UK, and Germany, are our key, I'd say the top three countries we're focused on right now.

幸運的是，對我們來說，社交俱樂部的方法仍然需要擴大設施，因為數百個社交俱樂部許可證可以一起建造一個設施。所以現在，荷蘭、英國和德國是我們的關鍵，我想說的是我們現在最關注的三個國家。

Great. Appreciate that. And if I could just ask one last quick question before hopping into queue. So you guys mentioned last call that you guys were starting to look at potentially resuming some of your M&A activity in 2024. I'm just curious, given the macro market, if that's still something you're looking at and kind of just your general perspective returning to some of the acquisition activity you guys have done historically?

偉大的。感謝。如果我能在排隊之前問最後一個問題。所以你們在上次電話會議中提到，你們開始考慮在 2024 年恢復部分併購活動。我只是好奇，考慮到宏觀市場，這是否仍然是你們正在考慮的事情，並且只是你們的總體目標回顧一下你們歷史上做過的一些收購活動？

I appreciate you guys taking the time to take my questions.

我很感謝你們花時間回答我的問題。

Perfect, thanks. Right now, we're just focused on getting back to generating cash and growing within our own shell. As I mentioned at the start, we are top end loaded. And so we have a lot of room to grow within, and really be able to register good, strong, profitable quarters in the quarters ahead.

很好，謝謝。現在，我們只是專注於重新創造現金並在我們自己的殼內發展。正如我在開始時提到的，我們處於高端負載狀態。因此，我們有很大的成長空間，並且真正能夠在未來幾季實現良好、強勁、獲利的季度。

Long run, of course, whether it's to access contracts or access a specific service area that we don't offer now, it's something we want to look at. But right now, it's not even on the near term plan for sure. it's just getting back and maintaining positive cash flow.

當然，從長遠來看，無論是獲得合約還是訪問我們現在不提供的特定服務領域，都是我們想要考慮的。但現在，它甚至不在近期計劃中。它只是恢復並保持正現金流。

Great. Thanks again.

偉大的。再次感謝。

Thank you.

謝謝。

Eric Bedder, SCC Research.

艾瑞克‧貝德 (Eric Bedder)，SCC 研究中心。

Good afternoon.

午安.

Hi, Eric.

嗨，艾瑞克。

Hi. I'm going to step back and talk a little bit about your ability to win contracts outside of the CEA. What -- you're competing against a lot larger people and people who have done it for multiple years -- and I guess you could argue certain lead sometimes more resources. How are you winning those contracts and what gives you the confidence going forward that you'll continue to win them and to get, as you've mentioned, bigger contracts?

你好。我將退一步談談你們在 CEA 之外贏得合約的能力。什麼——你正在與許多更大的人和已經做了多年的人競爭——我想你可能會爭辯說某些人有時會獲得更多的資源。您是如何贏得這些合約的？是什麼讓您有信心繼續贏得這些合約並獲得（正如您所提到的）更大的合約？

Great question, Eric. In terms of winning additional contracts with current clients, we're doing it. When we acquired the construction management firm that were working with a large Fortune 50 client, and doing a couple small projects a year, we're now doing multiple projects and looking to expand that portfolio.

好問題，埃里克。在與現有客戶贏得更多合約方面，我們正在這樣做。當我們收購了一家與財富 50 強客戶合作的建築管理公司並每年開展幾個小型專案時，我們現在正在進行多個專案並尋求擴大該投資組合。

And the project size is three to six times larger. So we're deliberately doing what we're doing. We're walking the talk. We're delivering on what we said we're going to do, and we're delivering good, strong service levels.

而且專案規模要大三到六倍。所以我們是故意做我們正在做的事情。我們言行一致。我們正在兌現我們所說的我們要做的事情，我們正在提供良好、強大的服務水準。

We have set up a project management office internally. We have on-site superintendents, internal project managers and a whole biz dev relationship team. So we've put a lot of work into building out that go-to-market strategy. When JT Archer joined us as COO, and that's that expertise and brainpower that he brought in, we're also utilizing systems a lot more than we did in the past.

我們內部設立了專案管理辦公室。我們有現場主管、內部專案經理和整個業務開發關係團隊。因此，我們投入了大量的工作來制定進入市場的策略。當 JT Archer 加入我們擔任營運長時，他帶來了專業知識和人才，我們也比過去更多地利用系統。

We've got a great client and vendor facing portal that allows clients to see real time where their project stands, when equipment is arriving and what's needed, or outstanding items to complete. So we're giving a good service level.

我們有一個面向客戶和供應商的出色門戶，使客戶可以即時查看他們的專案進度、設備何時到達以及需要什麼或需要完成的未完成專案。所以我們提供良好的服務水準。

And of course, there's a lot of large multibillion-dollar construction management companies. We are subbed in to some of those companies. They're not built to go after $10 million, $20 million projects. They're focusing on infrastructure projects, and other large $1 billion plus projects.

當然，還有很多價值數十億美元的大型建築管理公司。我們被派往其中一些公司。它們並不是為了追求 1000 萬美元、2000 萬美元的項目而設計的。他們專注於基礎設施項目和其他價值超過 10 億美元的大型項目。

We found a really nice sweet spot at around $10 million to $30 million, where the turnkey aspect doesn't really exist in the industry. We signed a golf resort actually -- a hospitality and recreation project in the southeast, and on that project they were thrilled to find out that they could they could procure all of the services in one full package from urban-gro.

我們找到了一個非常好的最佳點，價格約為 1000 萬至 3000 萬美元，而交鑰匙方面在行業中並不真正存在。我們實際上簽署了一個高爾夫度假村——東南部的一個酒店和娛樂項目，在該項目上，他們很高興地發現他們可以從 Urban-gro 一次性採購所有服務。

Otherwise they were going to bring on their own site superintendent. They were going to have to hire architecture and engineering on their own. So that was a really nice moment of awakening that for at least need to see that there's definitely a value in what we're offering for sure at that level.

否則，他們將聘請自己的現場管理員。他們將不得不自己聘請建築和工程人員。所以那是一個非常美好的覺醒時刻，至少需要看到我們在那個層面上提供的東西肯定是有價值的。

We're also working on a lot of projects. Another project is working with an international hotel chain just to do $30,000-$40,000 of engineering, but 15 times a year for the foreseeable three-to-five-year future. So it's not all these design build.

我們也致力於很多項目。另一個項目是與國際連鎖飯店合作，進行工程費用為 30,000 至 40,000 美元，但在可預見的三到五年內每年進行 15 次。所以這並不是所有這些設計所建構的。

Our engineers -- it's a 20-year company that we bought based in Houston. They have a lot of relationships. They have a lot of skill sets. So one is fire and safety, for example, that they're known for in that specific southeast, southwestern region. So we're building on our strengths and doing a good job in delivering and what we commit to.

我們的工程師—這是我們收購的一家擁有 20 年歷史的公司，總部位於休士頓。他們有很多關係。他們擁有很多技能。例如，其中之一就是消防和安全，他們在特定的東南、西南地區聞名。因此，我們正在發揮我們的優勢，並出色地實現我們的承諾。

Right. So a little more granular. When you look at Q4 revenues, do you still expect it to be about two-thirds non-CEA?

正確的。所以更細化一點。當您查看第四季度的收入時，您是否仍然預計非 CEA 收入約為三分之二？

So for Q2 and Q3, it's maintained at, I would say, based upon our pipeline and what's expected to close and the backlog that we have, I would expect it to stay at that level. If we continue to have good, strong CEA announcements this quarter, like we started to see in Q3, I would say you could see that begin to go more towards the 50-50 mark in Q1 and Q2 next year as the at the cannabis facilities or the vertical farm facilities ramp up.

因此，對於第二季度和第三季度，我想說，根據我們的管道、預期關閉的項目以及我們的積壓，我預計它會保持在這個水平。如果我們本季繼續有良好、強勁的CEA 公告，就像我們在第三季度開始看到的那樣，我想說，您可以看到明年第一季和第二季開始朝著50-50 大關邁進，就像大麻設施一樣或垂直農場設施的增加。

Great. And last question. In terms of the equipment, obviously you need more CEA to drive the equipment business. Are there opportunities here given that your purchase of equipment here, I'm assuming that a lot of people are having the same issues you are with CEA, that the margins in equipment when they come back can be, I guess, in theory a little bit stronger because the equipment companies right now are having problems selling their product? Thank you.

偉大的。最後一個問題。就設備而言，顯然需要更多的 CEA 來推動設備業務。鑑於您在這裡購買設備，這裡是否有機會，我假設很多人都遇到與您在 CEA 相同的問題，我想，理論上，當他們回來時，設備的利潤可能會有點更強一點是因為設備公司現在在銷售產品時遇到問題？謝謝。

Yes, Eric. I would look at it is we can't get greedy. Like when you look at the nine month performance that's close to $4 million, right, in margins that we weren't able to take advantage of this year. I feel we have relationships with dozens of manufacturers, and I feel that we're in a place to better serve our clients.

是的，埃里克。我認為我們不能貪婪。就像你看一下 9 個月的業績，接近 400 萬美元，對吧，我們今年無法利用的利潤。我覺得我們與數十家製造商有合作關係，而且我覺得我們能夠更好地為客戶服務。

If we have a cost plus markup -- if we're working with them on those services -- we're then moving forward to construction, and then it goes to equipment. We want to be equipment-agnostic. And to do that, we just have a set markup in our contracts and then we work with multiple manufacturers.

如果我們有成本加價——如果我們在這些服務上與他們合作——那麼我們就會轉向建設，然後轉向設備。我們希望與設備無關。為此，我們只需在合約中設定一個加價，然後與多家製造商合作。

And those manufacturers just are not in the US, they're also in Europe as well. But we will definitely we definitely want to increase the equipment, Eric, and I think you asked on the last call, we have in Q3, we did successfully integrate mechanicals -- or close to mechanical contract. We haven't shipped yet, but into a non-CEA very large clients. So it is a focus for us to spread, or casts a larger web, and also sell into those other markets -- equipment systems too.

這些製造商並不在美國，他們也在歐洲。但我們肯定會想要增加設備，埃里克，我想你在上次電話中問過，我們在第三季度，我們確實成功地集成了機械 - 或者接近機械合同。我們還沒有出貨，但是進入了非CEA非常大的客戶。因此，我們的重點是傳播或建立更大的網絡，並向其他市場（包括設備系統）銷售產品。

Great. Thank you.

偉大的。謝謝。

Thank you.

謝謝。

Ellis Acklin, First Berlin.

艾利斯‧阿克林，《第一柏林》。

Hey guys, how's it going? Thanks for taking my questions. For starters, I'd like to circle back to your earlier comments about keeping you team and key staff members in place so that you have the capacity to handle much larger revenue going forward.

嘿夥計們，怎麼樣？感謝您回答我的問題。首先，我想回顧一下您之前關於保持團隊和關鍵員工到位的評論，以便您有能力處理未來更大的收入。

I was just wondering if you could share some insight as to what the inflection point might be in terms of revenue volume so that you guys can consistently generate a positive adjusted EBITDA with the current staffing and G&A cost structure?

我只是想知道您是否可以分享一些關於收入量方面的拐點可能是什麼的見解，以便你們能夠在當前的人員配置和一般行政費用結構下持續產生積極的調整後 EBITDA？

I'll take that one. Good question. I think as we've indicated before, we think we can still see a relatively substantial increase in revenue with the staffing that we have.

我會接受那個。好問題。我認為正如我們之前所指出的，我們認為憑藉我們現有的人員配置，我們仍然可以看到收入的相對大幅成長。

As I've said in here today, kind of swagging that, I would say I'm pretty comfortable that we can get up to at least $40 million of quarterly revenue without having substantial increases from a personnel standpoint. And again, part of that is just we're just seeing an increase in the size of the jobs that we're doing, especially on the construction side.

正如我今天在這裡所說的，有點自吹自擂，我想說，我很滿意我們能夠獲得至少 4000 萬美元的季度收入，而從人員的角度來看，沒有大幅增加。再說一次，部分原因是我們剛剛看到我們正在做的工作規模增加，特別是在建築方面。

And then when the cannabis equipment side does come back, the ordering of that equipment doesn't take a lot of people. So I kind of played around with our projections going forward. And I certainly think that $40 million of revenue, $45 million of revenue a quarter, it's just -- it's not going to require very many more, if any, people for us.

然後，當大麻設備方面確實回來時，訂購該設備並不需要很多人。所以我對未來的預測做了一些調整。我當然認為 4000 萬美元的收入，每個季度 4500 萬美元的收入，這只是——我們不需要更多（如果有的話）人員。

And that was kind of the way we've built the business. It's just unfortunately, with the falloff in cannabis, and especially with the way it hurt equipment, it just kind of whack us from the standpoint of our income statement with that downturn.

這就是我們建立業務的方式。不幸的是，隨著大麻的衰退，特別是它對設備的損害，從我們的損益表的角度來看，這次低迷對我們造成了打擊。

But when it comes back, we've really got the people in place to be able to handle things.

但當它回來時，我們確實已經有了能夠處理事情的人員。

(multiple speakers)

（多個發言者）

Just a little bit, Ellis, I'll add onto that back there. As as our revenues increase, we will add architects or engineers or site superintendents. Those will be the key roles that we continue to hire and bring operational expertise in certain areas, we'll bring those individuals as well. But as far as the senior executive team, EVP and higher, we don't anticipate much need for that in the very near future for sure.

艾利斯，我會補充一點。隨著我們收入的增加，我們將增加建築師、工程師或現場管理員。這些將是我們繼續僱用的關鍵角色，並帶來某些領域的營運專業知識，我們也將帶來這些個人。但就高階管理團隊、執行副總裁及更高級別而言，我們預計在不久的將來肯定不會有太多需要。

Okay. Just to continue along with this line of thinking, my question is more assuming that the business mix remains as it is going forward for a while, and keeping the staff you have in place, where is the point is it in revenues where you can breakeven consistently at the adjusted EBITDA levels? At $25 million? $30 million? $35 million?

好的。為了繼續沿著這種思路，我的問題更多的是假設業務組合保持在一段時間內，並保持現有員工到位，那麼收入的重點在哪裡，你可以實現收支平衡始終保持調整後的EBITDA水平？ 2500萬美元？ 3000萬美元？ 3500萬美元？

Or like Dick was talking about, $40 million? Is there a spot that you guys target to say, okay, we're breaking even here?

或者像迪克所說的那樣，4000 萬美元？你們有沒有一個目標是說，好吧，我們在這裡收支平衡？

It all depends on that mix, right.

這一切都取決於這種組合，對吧。

Assuming the mix stays about where it is right now. It was the --

假設混合保持在現在的水平。這是——

It's where our guidance is. Yes, where our guidance is, Ellis, right now. Right at approximately $30 million in revenue.

這就是我們的指導所在。是的，艾利斯，我們的指導現在就在哪裡。收入約 3000 萬美元。

$30 million. Okay.

3000萬美元。好的。

That's right. And that's only with less than 10% equipment in the quarter. So that equipment changes, you see some inflection points hit in the cannabis space, that can decrease. But our guidance is approximately $30 million of revenues and and breakeven to positive EBITDA where they are right now.

這是正確的。這也僅涉及本季不到 10% 的設備。因此，當設備發生變化時，您會看到大麻領域遇到了一些拐點，這些拐點可能會減少。但我們的指導是大約 3000 萬美元的收入和目前的正 EBITDA 盈虧平衡。

Okay. That's great. And then if I may, just one quick follow up, regarding the project you had to take out of the backlog last quarter. Is there any update on that? When that might stop idling, or if you might be able to put it back in at some point?

好的。那太棒了。然後，如果可以的話，請快速跟進您上季度必須從積壓工作中刪除的項目。有更新嗎？什麼時候它可能會停止空轉，或者您是否可以在某個時候將其重新啟動？

We're still in discussions with that client. I do not believe that that client will move forward, but they're working to sell their license and their facility. So we have talked to a couple of prospective purchasers of that license. So I remain positive that that project can resume at some point in the future, but perhaps it won't be with that specific client.

我們仍在與該客戶進行討論。我不相信該客戶會繼續前進，但他們正在努力出售他們的許可證和設施。因此，我們已經與該許可證的幾個潛在購買者進行了交談。因此，我仍然樂觀地認為該專案可以在未來的某個時候恢復，但也許不會是針對那個特定的客戶。

Okay, great, guys. Thanks a lot. Have a good day out there.

好吧，太好了，夥計們。多謝。祝你有個愉快的一天。

Thank you very much, Ellis.

非常感謝你，艾利斯。

Thanks Ellis.

謝謝埃利斯。

Thank you. That's all the questions we have for today. Please reach out to investors.urban-gro.com with any additional questions. Thank you and have a nice evening.

謝謝。這就是我們今天要問的所有問題。如有任何其他問題，請聯絡 Investors.urban-gro.com。謝謝您，祝您有個愉快的夜晚。