Orbital Energy Group, Inc.

Good day, everyone, and welcome to Orbital Energy Group Fourth Quarter 2021 Conference Call. At this time, participants are in a listen-only mode. A question-and-answer session will follow management's remarks. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, John Beisler, Investor Relations.

Thank you, Josh. Good afternoon, everyone, and welcome to Orbital Energy Group's Fourth Quarter 2021 Conference Call. After the market closed today, the company issued a press release for quarter and full year 2021 earnings results. A copy of this release is available in the newsroom under the investor relations section of the Orbital Energy Group website. Speaking on today's call are Jim O'Neill, Vice Chairman and Chief Executive Officer, and Nick Bridenstaff, Chief Financial Officer. Today, management will review the highlights of financial results for the fourth quarter as well as recent developments. Following the formal remarks, management will answer questions. I would also like to remind everyone that today's call will contain certain forward-looking statements made under the Securities Act of 1933 and Securities and Exchange Act of 1934 as amended. Such statements are subject to risk and uncertainties that could cause actual results to vary materially from those projected in forward-looking statements. The company may experience due to With COVID-19, the company's reliance on third-party manufacturers, supplies and service providers, government agency, budgetary, and political constraints, new increased competition, changes in the market demand, and the performance reliability of its products, integrated solutions, and services. These factors and others could cause operating results to vary significantly from those in prior periods and to those projected in forward-looking statements. Additional information with respect to these and other factors which could materially affect the company and its operations are included in certain forms the company has filed with the Securities and Exchange Commission. These forward-looking statements are based on information available to Orbital Energy Group as of today, March 30, 2022, and the company assumes no obligation to update these statements as circumstances change. With that, I would like to turn the call over to Jim O'Neill, Vice Chairman and CEO of Orbital Energy. Jim, please go ahead.

Thank you, John. Good afternoon, and thank you for attending our fourth quarter 2021 earnings conference call. Before I start on my quarterly commentary, I want to welcome Nick Grinstaff, who is joining me today as Orbital Energy Group CFO on his first quarterly conference call. Nick and I have a lot of information to share with you today on some very positive developments at OEG. I also want to thank all of our dedicated employees for their hard work and tenacity as we face the challenges of COVID-19, both personally and professionally, in 2021. Our workforce interfaces with our customers every day, safely providing services that meet and exceed our customers' expectations. Each of you represent the OEG brand, and I very much appreciate your efforts. Our fourth quarter 2021 financial results demonstrated a meaningful improvement sequentially and has positioned the company for positive financial results for the full year of 2022. In the fourth quarter, our consolidated revenues were a record $41 million, a 65% increase compared to the third quarter, and our adjusted EBITDA from continuing operations, a non-GAAP measure, was a loss of $1.2 million, an improvement of $5.9 million compared to the prior period. Nick will provide more details on our operating results in his portion of the call. In the fourth quarter, our reporting segments have been redefined to electric power, telecommunications, and renewables, which better align with how we communicate to our investors and manage our operations. We recently announced the orbital gas business was reclassified to discontinued operations, and we are currently in active discussions to divest our orbital gas UK and Houston operations. Any information being reported or communicated for prior periods has been conformed to align with these new reporting segments. During 2021, we completed two transformational acquisitions, Gibson Technical Services and Frontline Power Construction. that will serve as platforms in our telecommunications and electric power segments, respectively. These two companies have had many years of success and are established leaders in the industry they serve, and we believe will provide meaningful, profitable growth for years to come. The company's transformation over the past year, coupled with the strong market drivers, positions us to execute on our strategy to deliver shareholder value through significant revenue growth and positive adjusted EBITDA from continuing operations for 2022. As such, we are providing a range of revenue and adjusted EBITDA expectations for the full year of 2022. Revenues are expected to range between $375 and $425 million, and adjusted EBITDA is expected to range between $38 and $43 million. This reflects an increase of 382% in revenues and an improvement of $67.5 million in adjusted EBITDA for the full year of 2022 compared to 2021 based on the midpoint of our guidance. Our backlog at year-end has increased over 1,000% year-over-year and 28% sequentially quarter-over-quarter. We anticipate strong year-over-year organic revenue growth from our electric power segment, largely driven by the growing demand for our services from our best-run utility customers as they deploy record levels of CapEx to modernize the grid and interconnect renewable energy sources. Our telecommunications segment will equally experience significant organic growth in 2022, driven by the RDOF, or Rural Deployment of Fiber Program, awards, the deployment of 5G spectrum, and the enhancement of 4G and LTE infrastructure. In our renewable segment, we're experiencing a resurgence of utility-scale solar programs and are currently in construction on two large utility-scale solar programs, the Black Bear and Happy Projects for LightSource BP. Additionally, we are in various stages of negotiations on over a billion-dollar pipeline of additional utility-scale solar opportunities including where we are likely to receive additional solar awards that will move to construction this year. As we enter 2022, we are experiencing positive momentum across all of our segments with strong market drivers that have set the stage for success for many years to come. With that said, I will turn the call over to Nick for his comments.