iSun, Inc.

Good morning. My name is Kate, and I will be your conference operator today. At this time, I would like to welcome everyone to the iSUN's earnings conference call for the second quarter 2021. All lines have been placed on mute to prevent any background noise. If you should need assistance during the call, please press star, then zero, and an operator will come back online to assist you. I would now like to turn the call over to Tyler Barnes, iSUN's Investor Relations Consultant. Please go ahead.

Thank you and good morning. We're pleased to welcome you to ISIN's conference call where we will discuss financial operating results for the second quarter 2021. Jeffrey Peck, Chairman and Chief Executive Officer, will illustrate ISIN's strategy in the context of its mission and capabilities. Following Jeff's remarks, John Sullivan, Chief Financial Officer, will provide an overview of the second quarter 2021 financial results. Jeff will then return to provide an update on ISIN's progress towards its growth plan and outlook for 2021 and beyond. After our prepared remarks today, we will open the lines to address any of your questions. As a reminder, the earnings release and updated investor presentation, which can be found on ISIN's website, include financial disclosures and reconciliations for non-GAAP financial measures that should help you analyze results. Comments and answers to questions during the call will include forward-looking statements that refer to management's expectations or future predictions. These statements are made as of the date of this call, and management is under no obligation to update these forward-looking statements in the future. They are subject to risks and uncertainties that could cause actual results to differ from management's expectations. With that, I will now turn the call over to our CEO, Jeff Beck. Good morning, and thanks to everyone who have dialed in today.

I'm excited to share with you the reasons why the solar industry presents such a remarkable growth opportunity, as well as ISON's mission and our strategy to accelerate the adoption of solar energy. I'll then turn the call over to John, who will update you on our results for the quarter before returning with an update of our progress as a public company and how we plan to execute on the growth presented by the evolving energy market. To that point, we are just beginning the electrification of everything. We are seeing this transition happen before our eyes, specifically with investments in the auto industry and infrastructure. The Senate recently passed their infrastructure bill, which includes a $65 billion investment to upgrade transmission lines to facilitate renewable energy expansion, a $7.5 billion to build a national network of electric vehicle chargers to encourage the transition to electric vehicles. This transition is accelerating. There are currently 100 battery-powered EVs planned by 2024, and there are dozens of startup electric vehicle companies entering the space. Most major auto companies have announced their plans to convert to EVs. GM announced its Ultium battery platform to support their EV expansion. Ford has launched the Mustang Mach-E and announced the F-150 EV pickup for 2022. Mercedes-Benz, backed by a $47 billion in funding, is preparing for all EVs by 2030. Volkswagen has a goal of 300 EVs or hybrid models by 2030. And of course, there's Tesla. They recently announced plans to open their supercharger network to other automakers. All of this will accelerate the adoption of electric vehicles. And for some context, the average electric vehicle requires 30 kilowatt hours to travel 100 miles, essentially the same amount of electricity used each day for the average American home. Imagine the implications. Overnight, household electricity demand could double or triple. At the same time, there will be a retreat from coal and other fossil fuels. According to SEIA, there will be a need for more solar power installed each and every year between now and 2031, and has been installed in the United States through 2020. iSun exists to accelerate the adoption of proven technological innovations capable of improving lives. This is not a new concept for iSun. This has been our approach to business since 1972. From building semiconductor clean rooms to installing structured cabling and fiber optics, to transitioning our focus on the solar industry, we have always embraced innovative ideas to best serve our customers. Today, ISUN believes that clean, renewable solar energy is the most important investment we can make, and we are laser-focused on using our capabilities to accelerate the transition from dirty to clean energy. Experience and capabilities perfectly position us to accelerate the transition in every sector of our industry. ISUN has unmatched experience and capabilities to develop and construct solar projects across every solar market sector. We understand the specific customer needs in each solar sector. We know how to add value in each sector. And we are perfectly positioned to help each sector respond to and support this energy transition. We believe that the electric vehicle adoption will be the gateway to accelerating the renewable energy transition in each of these solar markets. For most, purchasing an electric vehicle will be the time that they really start thinking about where their power is coming from. As people charge their electric vehicles at home and their electric bills rise, there will be a growing desire to invest in solar energy for their home. so they are charging their vehicle from a renewable source, decreasing their carbon footprint while creating resiliency for their home and future proofing against increased power costs. At the same time, businesses and institutions will also begin to transfer their fleets to EVs and will naturally want to invest in solar for both the environmental aspects as well as to utilize the tax credits, the accelerated depreciation and to lower and stabilize their power costs. iSUN is uniquely qualified to provide a customized solution to best fit their needs of their specific business, because we provide EV charging solutions, including our branded carports, which can also provide resiliency and serve as a visual representation of an organization's values. We can design and construct custom solar arrays for both their roofs and on their grounds, And we help businesses and institutions structure and create power purchase agreements as needed. Oftentimes, institutions don't have tax credits available to them or businesses have multiple entities for their real estate and businesses. And we have experience in helping structure these power purchase agreements. Naturally, this will also drive the industrial sectors, specifically the 1 megawatt to 50 megawatt size systems that are built for independent power producers, as well as solar asset owners who create group net metering projects, microgrids, and community solar projects, where ISON has a depth of experience and a robust recurring customer list. Again, this increase in demand is coming at a time when we will see a reduction in the use of coal and other fossil fuels. Utilities throughout the country are just beginning to prepare for this transition and will continue to replace coal and other fossil fuels with solar power. There is a $69 billion opportunity ahead in the utility-scale solar sector. ISUN streamlines development services. From land origination, project site diligence, we vet technical feasibilities, execute internal engineering packages on a turnkey basis and run project finance processes, all to assist with the speed of transaction and to move quickly to construct the solar asset. By serving every individual solar sector, all of our customers will benefit from our shared services and economy of scale. ISUN, with its combination of capabilities and experience, is uniquely capable of accelerating the transition required to meet our nation's increasing clean energy demands. We combine the capabilities of a utility and industrial scale EPC with those of a consumer facing residential and commercial EPC and an EV charging solutions provider. These capabilities allow us to both enter new markets and scale within existing markets at a lower customer acquisition cost. It allows us to leverage economies of scale and improve margin performance within each sector and capitalize on the increase in solar investments resulting from the transition to electric vehicles. Having discussed the scale of this opportunity and ISUN's unique ability to capitalize, I'd like to turn the conversation towards our progress thus far in 2021. Our second quarter has not been immune to market conditions. While we remain 57% ahead of our prior year gross revenues for the quarter and 71% year-to-date, the ongoing industry challenges presented by COVID, specifically supply chain delays and labor availability, slowed our progress in executing on our solar project backlog. These delays ultimately resulted in nonlinear cash flows and compressed margins. Although delays due to the supply chain issues Our appreciable stable backlog of $76.8 million at the end of the second quarter means the cash flow generation of the business will be substantial over several quarters in next year. Simultaneously, the strength of our balance sheet enables us to remain focused on our growth strategy for 2021 and beyond. John will now share with you the details of these quarterly results. After his remarks, I'll return to discuss our growth plans and how we will execute on this once-in-a-lifetime opportunity that exists in our industry.