iSun, Inc.

Greetings and welcome to the ISAN first quarter 2023 earnings conference call. At this time all participants are placed on a listen only mode and a question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host Mary Conway. Ma'am You may begin.

Thank you, operator, and good morning. We are pleased to welcome you to ISUN's conference call, where we will discuss financial and operating results for the first quarter of 2023. Jeffrey Peck, Chairman and Chief Executive Officer, will provide an update on the overall solar energy landscape in our operating performance quarter, along with our outlook for 2023. John Sullivan, Chief Financial Officer, will provide an overview of the first quarter 2023 financial results. After our prepared remarks today, we will open the lines to address any questions. As a reminder, the earnings release that was released this morning and which can be found on ISUN's investors website at www.isunenergy.com includes financial disclosures and reconciliations for non-GAAP financial measures. Any comments that we make on today's call may include forward-looking statements that refer to management's expectations or future predictions. These statements are made as of today and management undertakes no obligation to update these forward-looking statements in the future. Such statements are subject to risks and uncertainties that could cause actual results to differ from management's expectations. With that, I will now turn it over to our CEO, Jeff Peck.

Thank you. Good morning, everyone. Thank you for joining us today. I'm pleased to share ISUN's progress during the first quarter of 2023 and update you on our plans for this year. We are pleased with the energy and the success our team has achieved out of the gates in 2023. While there are always seasonal challenges, I'm excited to report that we continue to see our backlog transition to signed contracts and active projects, as I said when we reported our full-year results a month ago. The continuation of this trend and our success in winning important new contracts in solar and EV infrastructure provides us with confidence in our ability to execute effectively against our strategic plan to achieve our mission to accelerate the nation's adoption of solar energy. Last quarter, I spoke in detail about the work we've done over the past year to establish the infrastructure we need to support our growth plans and execute on the recurring revenue opportunities that we created through our investments and our platform approach. This platform approach is a competitive, differentiating advantage for us in positions I've spent for long-term sustainable growth. We see the proof of this strategy in execution in the first quarter year-over-year revenue growth. We've also made good strides in improving our efficiency, and the initial results of those efforts are clear in our first quarter results, with lower operating expenses, improved productivity, and a lower net loss. We have made operational improvements on the residential side to accelerate project execution. Similarly, the combination of our commercial industrial divisions at the beginning of this year are also showing good results with higher labor productivity, better utilization coordination. And while it's not reflected in our results just yet, we continue to make good progress on our project pipeline front that I described last quarter. I'll share an update shortly on that. Quickly reviewing our first quarter results, revenue increased by 15% to $17.4 million. Gross margins were 20.5% down slightly from 21% in 2022's first quarter, mostly reflecting ramped up efforts ahead of our implementation to drive installations on the residential side in Q2 this year. In the first quarter, 39% of our revenues came from the residential segment where gross margins tend to be higher. We remain confident that as we scale and drive synergies and efficiencies throughout the organization, we'll continue to expand our margins on an annual basis. As of March 31st, 2023, our total backlog was 178.8 million. Our pipeline remained at 1.6 gigawatts of projects as of the end of the first quarter of 2023. The backlog and pipeline underscore the increased customer demand that we are experiencing, as well as the effectiveness of our ongoing strategic initiatives. Our success reflects a high level of customer satisfaction, specifically in the residential segment, which generates strong referrals, creating lower customer acquisition costs. Let me share a few words about the performance of our three divisions in the past quarter. The residential division did very well, even though this is a seasonally slower period in the Northeast, since we are limited in installation during unfavorable weather and shorter days. We continue to build more business and expect a heavy period of installation in the coming quarters. The commercial and industrial division, which we combined as of the beginning of 2023, is off to a strong start. It generated more than half of our revenues this quarter as we begin to work through our backlog and add more business to the backlog through competitive contract wins. We're pleased with the division's productivity in the quarter, enhancing our labor utilization with a major rationale for the combination. Our utility and development division is off to a slower start, although the backlog the group is addressing remains large. Project delays around expected implementation, especially on the utility side, affect revenue generation, but delays simply mean that the work will appear later and resulting revenues will be recognized later this year. The expertise and knowledge that our teams bring and the strong customer relationships they've established have led to many recent contracts. We've added $32 million in new deals, one over the past quarter, across our business lines, including both solar and EV infrastructure. Let me share a few details on a few of them. We were recently awarded a 2.2 megawatt solar carport project for a major financial institution. This project is expected to be the first of many for this financial institution. As has been our approach with all of our customers, we hope to cultivate this relationship to create recurring opportunities. Additionally, at the end of the first quarter, we were awarded seven separate solar projects valued at $10 million for existing customers. We take great pride in building these long-term relationships and working collaboratively with our customers to accelerate the adoption of solar. We remain convinced that the IRA legislation passed last year will afford ISUN and the industry genuine benefits, even as we await the finalized language and rules from the Treasury Department regarding tax credits and other elements. Once those rules are disseminated, we expect to provide an update as to how they will impact our operations this year and years ahead. We expect more specific roles and the removal of uncertainty will increase the value of the solar assets of those both in development as well as those under construction, which in our case will lead to a higher valuation of our pipeline as it spurs increased demand that we'll address in 2024 and beyond. In 2023, considering all of the evolving macroeconomics factors, we expect to continue to demonstrate strong growth and attain operating profitability along with expanded margins. Thus, we are affirming our expectations for total revenues for fiscal year 2023 of $95 to $100 million, reflecting a 24 to a 31% increase over the total revenues in 2022, along with gross margin expansion on an annual basis in full-year EBITDA profitability. With that, I'll turn the floor over to John. John?