Array Technologies, Inc.

Hello and welcome to the Array Technologies first quarter 2022 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to turn the call over to Corey Mueller, Investor Relations Array. Please go ahead.

Good evening. And thank you for joining us on today's conference call to discuss Array Technologies' first quarter 2022 results. Slides for today's presentation are available on the investor relations section of our website, arraytechinc.com. During this conference call, management will make forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect because of other factors discussed in today's earnings press release, the comments made during this conference call, or in our latest reports and filings with the Securities and Exchange Commission, which can be found on our website, arraytechinc.com. We do not undertake any duty to update any forward-looking statements. Today's presentation also includes references to non-GAAP financial measures. You should refer to the information contained in the company's first quarter press release for definitional information and reconciliations of historical non-GAAP measures to the comparable GAAP financial measures. With that, let me turn the call over to Kevin Hostetler, Array Technologies CEO. Thanks, Cody, and good evening, everyone.

Thank you for joining us on today's call. In addition to Cody, I'm also joined by Nipal Patel, our Chief Financial Officer. I'm excited to join you on my first Array Technologies earnings call, and on day 23 as the CEO of Array. Now, there is still a lot of work I need to do and much more time to be spent with employees, customers, suppliers, and investors in order to give my full assessment on the state of the company. But I did want to provide some early observations about the company and the industry before turning it over to NIPL for a more detailed discussion of the quarter and our revised outlook for 2022. First, And I think this is critical context for everything else that is going on. My decision to come to Array was largely influenced by two fundamental factors. One, the world is transitioning to renewable energy. Combating climate change is no longer a niche pursuit by a few. It is now core to the identity of the world's largest governments, corporations, and asset managers. And there is simply no feasible way to meet the stated goals of these entities without significant increases in the amount of solar energy produced. And two, Array is positioned incredibly well to be a global leader in this solar energy transition. Array has differentiated products that more and more customers are selecting. It has the bankability of over 30 years in the industry. and has an asset-like business model that enables quick and nimble scalability. Now, I recognize these are not new statements to many of you, but I start there because despite some of the near-term challenges within our industry, when I think about the long-term horizon and companies and industries that are poised to make a lasting change in the world while at the same time driving shareholder value, Array operates in a unique space. Since joining, I have not only experienced firsthand these differentiated capabilities, but have also been able to deepen my appreciation for the complexity of the problems we are solving and the employees who are solving them. As many of you know, I have now spent decades leading engineered product companies, and I will tell you, experiences taught me if you can find a great product serving a growing and necessary market, supported by a skilled and dedicated workforce, you have the key elements of a formula to drive strong shareholder value. This being said, it's also important to realize we must execute in the near term in order to continue to build the trust of our customers and investors, which we will need for the opportunity to make that lasting change. Over the last year, an extremely volatile cost and logistics landscape coupled with an uneven and constantly shifting demand profile has made execution a bit more challenging. And let's be clear, over the next few quarters, the landscape is not going to get much easier. The ADCBD investigation has placed uncertainty around the timing of some of our projects and has vastly increased the complexity of managing our supply chain and logistics. Adding to this, the conflict in Ukraine has slowed supply chains throughout Europe, and we're seeing the direct impact of this on projects in Europe as component supplies are rerouted. While these issues will reduce our outlook for 2022, they are far from unmanageable. My experience, coupled with the steps the newly reformed senior leadership team have already taken, leave me confident we will execute on what is within our control. This includes managing not only our material and logistics costs, but also aligning our SG&A spend with changing volume levels. It also means we will need to have a laser focus on working capital management to ensure we don't incur inefficiencies as projects shift left and shift right. This near-term market uncertainty presents an opportunity for us to further differentiate ourselves from our competitors. To this end, we will focus intently on working with our customers to solve their module challenges by playing an active and flexible role in their rapid system redesign efforts all while delivering our products on time with an unparalleled customer experience. Finally, it is also an opportunity to identify and focus on customers and suppliers who are truly willing to be partners. Industry challenges like this require collaboration and a sharing of risk. We are certainly ready to do our part, and we'll be evaluating which partners are willing to do the same. Array has made a lot of progress since becoming a public company a little over a year and a half ago, but we still have room for improvement. Over the coming months, I'll continue my comprehensive review of Array's operating systems and core business processes to further identify areas in which we can drive operational efficiencies. I look forward to updating you all on the progress of my reviews in our next quarter's call. With that, I'd like to give a heartfelt thank you to the employees of Array who have been extremely welcoming and turn the call over to Nipal. Thanks, Kevin.