Altus Power, Inc.

Good morning and welcome to the Altus Power fourth quarter and year-end 2022 conference call. As a reminder, today's call is being recorded and participants are in a listen-only mode. A question and answer session will follow the formal presentation. At this time, for opening remarks and introductions, I would like to turn the call over to Chris Shelton, Head of Investor Relations.

Good morning and welcome to our investors and analysts. Speaking on today's call are Lars Norell, Co-Chief Executive Officer, and Dustin Weber, Chief Financial Officer. In addition, Co-Chief Executive Officer Greg Felton will be joining us for Q&A. This morning, we issued a press release and a presentation related to the matters to be discussed on this call. You can access both the presentation and the press release on our website, www.altuspower.com, in the investor section. This information is also available on the SEC's website. As a reminder, our comments on this call may contain forward-looking statements. These forward-looking statements refer to future events, including Altus Power's future operations and financial performance. When using this call, the words expect, will, plan, forecast, estimate, outlook, and similar expressions as they relate to Altus Power, as such, identify a forward-looking statement. These statements are subject to various risks and uncertainties and are based on assumptions that could cause actual results to differ materially from those predicted in the forward-looking statements. Altus Power assumes no obligation to update these statements in the future or if circumstances change. For more information, we encourage you to review the risks, uncertainties, and other factors discussed in our SEC filings that could impact these forward-looking statements, specifically our 10-K filed today with the SEC. During this call, we will also refer to adjusted EBITDA, adjusted EBITDA margin, which are non-GAAP financial measures. Our management team uses these non-GAAP financial measures to plan, monitor, and evaluate our financial performance, and we believe this information may be useful to our investors. These non-GAAP financial measures exclude certain items that should not be considered as a substitute for comparable GAAP financial measures. Altus Power's methods of computing these non-GAAP financial measures may differ from similar non-GAAP financial measures used by other companies. More detailed information about these measures and reconciliation from GAAP to these non-GAAP financial measures is contained in both the press release and the presentation we issued today. Finally, our speakers today will reference our 2022 fourth quarter and year-end slide deck during their prepared remarks. We are providing this information to assist you in understanding certain of the financial information we will be discussing today, and it should be viewed in conjunction with this call. And with that, I'm pleased to turn the call over to Lars Norell, Co-Chief Executive Officer of Altus Power.

Good morning, and welcome to all analysts and investors who have joined us today. This earnings call marks the end of our first full year as a public company, which launched our partnership with CBRE. where we combined unrivaled access to commercial real estate with industrial strength, clean electrification. While we're busy laying the foundation for future growth, our 2022 results importantly demonstrate our ability to execute. Please join me on slide three for details on our revenue, net income, and adjusted EBITDA growth. During 2022, Altus Power earned a record of over 101 million of operating revenue. predominantly from the sale of clean energy and clean energy attributes that we generated during the year, a 40.9% increase over full year 2021. Coupled with our efficient cost structure, we generated 58.6 million of adjusted EBITDA for the fiscal year 2022, an annual increase of 42.9%. These results evidence our focus on and ability to deliver one of our key missions, which is profitable growth. During 2022, we produced 456 million kilowatt hours of clean electricity, enough to offset almost 1,800 rail cars of coal burned or over 36 million gallons of gasoline consumed. Moving to slide four, Our focus remains on delivering benefits to our customers and continued profitable growth. Today, we're issuing guidance for 2023 adjusted EBITDA in the range of 97 to $103 million, which at the midpoint would equal more than 70% growth over 2022. And we expect adjusted EBITDA margins in the mid to high 50%. We're very energized with our accomplishments and focused on our goal of growing profitably. And to better assist analysts and investors with mapping out our expected adjusted EBITDA for 2023, we are providing an estimate for what we think of as the exit portfolio annualized rate for 2022, or exit PAR, which was $79 million. To us, this number signifies both the embedded annual adjusted EBITDA potential of our client contracts and asset base that has stood on the last day of 2022, and also helps us quantify the size of the task to deliver on 2023's growth target. Today, I will briefly touch on some of the year's achievements. I will also provide an update on our asset base and growth pipeline, highlighting the increasing velocity of our customer and partner engagement process, as well as the growth of our construction capacity. Next, I will provide a brief recap of what we think are the core strengths of our platform. which has been purposely built to withstand many of the challenges of the current market backdrop. I will then hand over to Dustin who will go through numbers in more detail after we look forward to taking your questions. Turning to slide five and highlighting a number of accomplishments that we believe evidence our teams and platforms ability to execute in environments that continue to offer a varied set of challenges. During 2022, we served customers across 22 states, and pro forma for our TrueGreen acquisition, which we announced in Q4 and closed in February this year, we're now serving customers across 24 states with clean energy made from large solar arrays that we own and operate. We've also grown our position as a dominant player in the community solar space, where we now serve approximately 20,000 customers with clean energy in five states. Evidencing further our ability to access capital at attractive rates, we grew our investment grade rated funding facility with Blackstone by $204 million. We also demonstrated our ability to access alternative forms of funding by executing on $126 million bank facility with KeyBank during 2022. in support of our acquisition of customers and assets from DE Shaw Renewables. Lastly, we executed on a revolving credit facility with a number of large cap banks, a very timely accomplishment given the recent banking crisis. And to reiterate, we don't have relationships with any of the tribal banks, including Silicon Valley Bank, Signature Bank, or First Republic Bank. We expect to make opportunistic use of this access to funding by continuing to source additional customers and assets and by continuing to allocate resources to our development and construction activities. Our growing construction activities will be the last bullet on this slide. Following our previously discussed growth in customer engagement, we have reached a milestone in the number of assets that we have in construction and pre-construction, which currently numbers over 50 projects, the highest in Altus Power's history. Turning now to slide six in our asset base and operation and pipeline of growth assets, Starting with operating growth, asset growth to the top left, while true green is not closed and therefore removed from this pie chart, we've seen a consistent flow of additional opportunities that we consider sufficiently attractive to warrant allocating resources to. To remind everyone on the call why we're so enamored of this part of our business, Altus Power's mission is to build, buy, own, and operate. assets that generate clean electricity, and deliver it into enterprises, homes, and vehicles under long-term contracts. Stepping into 20-year-plus contracts, even if they were originally created by partners of ours, is an effective and attractive way for us to fulfill this mission. Just like the customer engagements and assets we develop and build in-house, winning these assets also provide us the opportunity to grow customer relationships with additional solar, storage, and charging. Moving on to the top right of this page in our development and construction growth pipeline of more than 500 megawatts. We continue to experience a steady flow of new, larger customer engagements that come to us from our partners, predominantly from CBRE, and we remain convinced that programmatic engagement with our customers and partners is the key to scale within commercial solar. The bottom of this slide you will see our asset base in operation as of February 15th of this year, which will update each quarter. With the client and asset additions that we expect during the year from our two sources of growth, the team looks forward to delivering on the growth of revenue and adjusted EBITDA that we've set forth in our guidance. Turning to slide seven, I'd like to go into some detail of the significant progress we made in streamlining the origination process for new customers, as well as some widening in the scope of the services we're signing up. One time-consuming element of our client contracting process has always been agreement on a lease for the rooftop. Today, I'm pleased to share we recently completed work on a form of master lease with both Seabury IM and Trammell Crow Company, which standardizes both the lease terms and other relevant parts of the documentation for properties across all of Seabury IM's portfolio of owned real estate. Another step we've taken is to develop a programmatic playbook for the engagement and onboarding of other stakeholders, for example, tenants. While this took some time to put in place, it will serve to increase the velocity of our origination efforts and make tenant education and onboarding easier for both Altus Power and our real estate owning partners, like CBRE and Blackstone. We believe this will be a significant advantage for our go-to-market strategy, and it's an example of how we've evolved from a platform that was more focused on individual buildings to a company that is now growing programmatic relationships involving portfolios of 25 to 50 megawatts at a time. Another highlight from our work with large property owners is their readiness to introduce storage and charging for fleets and personal vehicles. along with building-based solar for the engagements we're working on. This is an outcome we think of as triple play, and it's a creative both to Altus and to our partners. Turning now to slide eight for an update on our construction capacity, which is front and center for Altus Power, and together with a Seabury product management horsepower, a key differentiator for our platform. We previously communicated additions to our construction platform in terms of staff and resources, And we have continued to hire to bring the platform to the optimal level in order to construct and supervise the construction of the asset flow coming out of our engagement and contracting processes in our development pipeline, as well as to due diligence and onboard of assets coming out of our operating growth pipeline. In addition, The previously announced augmentation of our construction platform with CBRE project management is beginning to be put into practice and show results on actual engagements. Our deliberate additions of resources, as well as partnership with CBRE's construction platform, enable us to be in construction or pre-construction on over 50 projects right now, which is not only a major improvement over this time last year, but also a company record. I want to conclude on slide nine with some highlights before handing the call over to Dustin. We view 2022 as a successful year and feel confident of our position at the start of 2023 for a number of reasons. One, our business generates cash, which we plan to reinvest into more clients and assets. Two, we have proven our ability to execute on large operating acquisitions and to expand our customer base significantly. Three, we have demonstrated our ability to fund our business with multiple high-quality counterparties in challenging markets. Four, we are increasing our construction capacity to accommodate the significant flow of opportunities, in particular from CBRE and its clients. And finally, five, Our assets in operation and asset growth, together with a disciplined approach to SG&A expenses, produce results in the form of growing adjusted EBITDA, which we think is the most important measurement of our performance. Thank you for your time today, and I'll now hand the call over to Dustin.

Thanks, Lars, and thanks to our investors and analysts for joining the call today. Please join me on slide 10 as I cover our financial highlights. Starting with fourth quarter, our revenues grew to $26.8 million compared to $21.6 million in fourth quarter 2021, an increase of 24%. For the full year, we achieved a record $101.2 million of operating revenues, up from $71.8 million in 2021. Both fourth quarter and full year operating revenue growth were driven primarily by additions to our portfolios. Turning to gap net income for the quarter, we posted $67.1 million compared to net income of $14.5 million during fourth quarter 2021. This increase was primarily the result of a non-cash gain of $71.5 million from the fair value remeasurement of our redeemable warrants and alignment shares. This same remeasurement was also a driver for our net income for full year 2022 which amounted to 52.2 million compared to 2021 full year net income of 13 million. Because of the warrant exchange we completed in October, this will be the last quarter we record a remeasurement of our redeemable warrant liability. You should continue to expect a quarterly mark to market of our alignment shares, which will largely be dependent on the change in our share price during the period. Moving to adjusted EBITDA, We reported $16.6 million for fourth quarter of 2022 compared to $12.9 million in fourth quarter 2021, amounting to growth of 29%. For the full year, we reported $58.6 million compared to $41 million last year, again, driven primarily by additions to our portfolio, partially offset by increased G&A expense. We are pleased to report that our adjusted EBITDA margin amounted to 58%, during 2022 compared to 57% in 2021, meeting our guidance expectations for the year and also demonstrating our cost discipline on a year-over-year basis. To summarize our results, fourth quarter capped a successful 2022 for Altus Power. We're pleased to have met our guidance issued last March on both adjusted EBITDA and adjusted EBITDA margin. Achieving results within this guidance range during our first year as a public company demonstrates our ability to execute on our growth plan, which is a track record we aspire to grow on in the future. Turning to our new 2023 guidance, as Lars highlighted, we're forecasting another year of strong growth of adjusted EBITDA in the range of $97 to $103 million, which reflects our expanding customer relationships and highlights our commitment to profitable growth. There are three primary sensitivities we consider when setting our guidance range. The first is the continued growth of our portfolio through asset additions. Second are the variations from historical irradiance on our operating portfolio. And third is the timing of increases to our G&A expense line. As you dive deeper into your quarterly models for the year, you'll recall that seasonality dictates that our first quarter is historically our least generative in terms of solar resource. while second and third quarters have historically been much more impactful. We expect 2023 will be no exception. In addition to our 2023 adjusted EBITDA guidance, we're also guiding to adjusted EBITDA margins in the mid to high 50s, which we believe strikes the right balance between profitability and investing in our platform to facilitate our future growth. We plan to update you on our progress on future quarterly calls. Moving to a summary of our balance sheet, total debt at the end of 2022 was $665 million. Our balance sheet at year end remained well capitalized with $193 million of cash on hand, making our net debt figure $472 million. We continue to be comfortable with our cash and overall liquidity position, particularly in light of our new revolving credit facility. Our current growth plan calls for capital from borrowings under existing debt facilities third-party tax equity investors, cash from our balance sheet, and importantly, cash provided by operations. Cash from operations totaled $35 million in 2022. This is something we haven't highlighted previously, but is noteworthy, particularly in a current environment, setting us apart from many other companies in our sector and providing us an important source of additional capital. Since our third quarter call, we have closed on a number of new sources of debt capital at fixed rates we believe are attractive, particularly in comparison to current market rates. We've press released most of these details prior to today, but slide 10 provides a succinct summary. Our philosophy to utilize long-term fixed rate financing to match our investment in long-duration assets is evident through our recent bank loan and Blackstone term loan financing. In addition to these new term loan financing, we've added flexibility to weather volatility in markets by closing our revolving credit facility. The revolver was undrawn as of year end, but will be used as we take delivery of equipment in an effort to expand our construction capacity. Finally, one new addition to this list is that we've recently executed an interest rate hedge designed to fix our next $250 million of borrowings at 10-year SOFR reference rate of 3%. We initiated this hedge to provide certainty on financing rates for our origination team as they underwrite new customer contracts and investment opportunities during a turbulent period in the broader interest rate environment. To summarize, we delivered on our financial plan in 2022 by meeting the forecast we laid out this time last year. We've initiated guidance for 2023 with adjusted EBITDA growth of over 70% underpinned by meaningful asset additions throughout the year. And we've put in place flexible financial architecture to support our growth and insulate us from volatility in financial markets. Thank you for listening to my prepared remarks.

We are now ready for your questions.

And at this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. And one moment, please, while we poll for questions. Our first question comes from the line of Justin Clare with Roth MKM. Please proceed with your question.

Yeah, hi. Thanks for taking our questions. Absolutely.

Our pleasure.

So I guess first off here, I was wondering if you could just bridge the 2022 year-end portfolio run rates for adjusted EBITDA that you presented here and the 2023 guide for adjusted EBITDA. And maybe you could give us a sense for, you know, how much of the growth in adjusted EBITDA could come from the 220 megawatt acquisition that you already completed versus how much is assumed to come from additional assets. It just looks like the contribution from the acquisition could get you fairly close to the guide, so I wanted to understand the assumptions and what could come from the additional assets.

Hey, Justin, this is Dustin. I'll take this one. Yeah, thanks for the question. And thanks for highlighting the new disclosure that we have with exit PAR. We think that, you know, it provides a nice reference for a starting point of what our EBITDA potential is for the asset base that we had to end the year. You highlighted TruGreen as closing, and thanks for acknowledging that. We're happy to close that in Q1, which, of course, will only add to that exit par as it relates to how we're going to bridge to our 2023 guidance of $97,203 million. I think in addition to TruGreen, some other drivers that are going to impact that bridge are going to be additional assets that are going to come on in 2023 and and contribute to our realized adjusted EBITDA number. And then I would say the other component there is increases in our G&A expense, which we're going to do just to reinvest in our platform and facilitate future growth.

Okay, great.

Thanks. And then just on the assets that are in your, you know, pre-construction and construction phase here. Was wondering if you could talk through, you know, when those assets could be completed. You know, do you have, you know, COD dates expected for 2023 and 2024? And maybe just provide an update on the bottlenecks that you're seeing. I know interconnection and permitting as well as supply chain have been challenges. How are those issues evolving?

Sure. Thanks, Justin. This is Lars. So the pre-construction and construction bucket on page five of the slide deck, which stands at 126 megawatts right now, so like a tad above the 25%, some of those deals are in pre-construction and not actually in construction, but many or most are in construction. And those are some of the asset additions that we will see or expect to see going into operation this year and basically bridge the gap between not only the exit part number that you highlighted, but effectively the exit part number plus the TruGreen contribution for this year. And while you might look at that and say, wait a second, aren't you guys already there? No, there remains some work to do to put those construction assets into operation. And as everyone following our LinkedIn, Instagram, or Facebook posts have been seeing, we're having deals come out of that construction bucket and get turned into operation. And several more are in very near stages of coming in. So those will be part, Justin, of the guidance number of 97-103. As for the delays, you're absolutely correct, or the challenges, shall we say, in the construction market. Let us make two points. There are things that we can control, like solar module availability or components or engineering and construction staff resources in the office and in the field. And we have been and continue to be very focused on adding resources and doing things like keeping inventory of components, even if it costs us some more in working capital. And second, for things that are to some extent outside of our control, like the exact timing of permitting, which we can tell you, by the way, from our interaction with building departments across the country, has still not returned to pre-pandemic timelines. For those things, our mission is to find workarounds, like putting more assets into the permitting queue and into interconnection application processes to make sure that we can increase the flow of assets that make it through and that we can then start construction on to ultimately get turned into operation and contribute to the EBITDA. So that's our sense on that score right now.

Okay, great. And just one more. We did get guidance from the Treasury on the IRA bonus adders for energy community and low-income communities as well. Just given the guidance provided, can you give us a sense for, you know, what your average or weighted average tax credit might be for, you know, those assets that are in pre-construction and construction? And just maybe just speak to the overall opportunity and what you're – access to the tax credits could be.

Sure. This is Greg. I'll take that question. So we are incredibly well positioned by virtue of the mix of assets in our pipeline to benefit from the so-called adders and just a level set. There's now a 30% baseline investment tax credit on all of the projects that we are building today. The adders that Justin's referring to relate to 10% additional adder for domestic content, 20% potential additional adder for low and moderate income customers, 10% adder for building on a brownfield, landfill, et cetera. So these adders, there is some level of visibility, and we feel really good about, again, the mix of assets that we have. For example, the community solar projects in our pipeline are significant. The particular process as it relates to applying for and receiving those credits is still a work in process by the government, and so they have not yet put out the framework for the application, but we're well positioned to participate in those adders as and when we have a little bit more clarity on the process. So we can't, as a consequence of the process that's out there, Justin, give you an exact number to sort of model, but what we would say is that we are absolutely focused on taking advantage of those opportunities.

Okay. Great. That's all for me. Thank you. Thanks.

And our next question comes from the line of Mark Strauss with JPMorgan. Please proceed with your question.

Yeah, good morning. Thank you very much for taking our questions. Just wanted to follow up on Justin's question about the EBITDA bridge this year. In trying to get a sense of the magnitude of the SG&A investments, are you able to specifically comment on SG&A or maybe if you're not able to do that, can you say whether or not the true green acquisition, if those margins kind of align with the corporate average?

Hey, Mark. It's Dustin. Yeah, I can't speak specifically about planned G&A expenses from 2022 to 2023. We ended 2022 at $25 million, and I don't have the growth rate from 2021 in front of me, but I think we've said time and time again that we are very focused on making sure that our Budget is right size to both the assets that we have in service as well as the opportunity set that's in front of us for which we've highlighted that we're seeing a lot of flow there and it's growing. So I think it's safe to assume that we're going to increase the budget and we're going to be thoughtful about it. It's in our DNA to make sure that we're growing profitably and we'll continue to do that.

And we can add, this is Lars, we can add that you should be able to back into what we estimate will be budget increases, approximately at least, given reaching certain goals for the EBITDA and the way you can get their courses from the profit margin mark. Right.

Yeah. Okay. Okay. Kind of following on that line, the EBITDA margin, percentage, excuse me, percentage targets that you laid out at the time that you were going public. Is that still kind of the way that you're thinking about this business over time or has something structurally changed in any color you might have on kind of, you know, not sticking to specific 2024 guidance or anything like that, but just kind of general timeline of when you expect to get there?

Yeah, it's a great question, Mark. Thanks for that. This is Greg. So there is inherent operating leverage in our business. And of course, there's an incredible growth opportunity as well. And so I think what you just heard Dustin speak about is the desire to invest in the growth of SG&A to support the accelerating growth that we're seeing. And so what's very interesting about your question is that We are today absolutely starting to see the benefits of scale. And there's something of a network effect, which produces both a revenue opportunity from our growing asset base and our customer base, and also a cost savings opportunity from our growing national footprint. And all of that translates into the opportunity to increase the margins. And so we feel very good about the margin potential of our business. And, of course, what we determine on an annual basis is how much we want to grow our SG&A to support the growth opportunity in our business, which is significant.

Okay. I'll take the rest offline. Thank you very much. Thank you. Thanks.

And our next question comes from the line of Chris Souther with B. Riley. Please proceed with your question.

Hey, guys. Thanks for taking my question here. Just following up on that, appreciate the breakout on that exit par and, you know, the visibility that you guys are calling out there on this year's growth. But I wanted to clarify, so if the portfolio is growing, you know, 44%, As of, you know, February 15th, can you kind of walk through, is the True Green acquisition kind of a lower revenue? I guess based on the, you know, purchase price, I'd assume it's, you know, it's kind of lower revenue than kind of the overall portfolio in general. But can you just kind of, you know, provide a bit more color there to what the impact of that is on that? additional visibility that we're getting?

Sure. This is Greg. I'll take that. So each of our opportunities that we pursue, whether it's a new construction opportunity or an acquisition opportunity, we are focused on the returns that that investment opportunity can generate for our investors. And those returns are naturally thought about, as we've talked before, in internal rate of return, levered returns, unlevered returns. And so in the case of TruGreen, when you think about that acquisition, naturally there's an interplay between the price we pay and the revenues associated with the assets we acquire. So I just want to be clear that it is difficult from time to time to look at one portfolio or one asset relative to another in terms of revenue. But the returns, you should assume, are substantially similar in terms of what capital we're investing and the returns we expect to achieve out of those assets. Now, in terms of the particulars of TruGreen, it is of a size of acquisition that we will have pro forma financials filed. And Dustin, when do we expect to be those on file?

Yeah, it'll be right around the end of April or the first week of May. We'll be filing the historical financials and then the pro forma information. proforma-ing the acquired entity alongside ours for 2022.

But I think that you'll get more specificity, obviously, on the particular financial profile. But what you'll see there is something that is substantially similar to every asset that we would onboard, which is to say the returns are attractive and consistent with what we've done historically. And we can, of course, you know, catch up with you offline and walk through any particular additional model questions that you have, Chris.

Got it. No, no, that's really helpful and certainly kind of makes sense and it's consistent with what you talked about. But maybe just on kind of the acquisition market, obviously there's, you know, been, you know, movements in rates, you know, movements in kind of costs to build out new projects. I'm just kind of curious what you guys are seeing in the acquisition market. It looks like, you know, Last quarter was really impressive where you reloaded the kind of in-closing kind of bin, and that didn't seem to happen here this quarter.

But I'm curious what you guys are seeing in that, you know, potential acquisition bucket and, you know, what those discussions are like at this stage.

Yeah. So a couple of things here. You'll see that in our in-closing bucket, having just closed the triggering acquisition in Q1, We are, there's a handful of deals, smaller deals that we're currently pursuing closing of, but there's a very large pipeline, as you alluded to, of new opportunities, both in early engagement and a negotiation phase. And we think that the environment is incredibly favorable to Altus Power. If there's one point that we want to make sure that we get across is that we are positioned here as the only pure play public company, as you know, in this space, in an environment where the current market environment is creating enormous challenges for many market participants. And that plays to our advantage. We have obviously both access to significant capital and attractive cost of capital and a very successful proven track record of executing. So we have enormous credibility with counterparties as it relates to what we can deliver. And because of our solid foundation and position in the market, and because of, frankly, the challenges that others are facing, we think it's becoming very much a buyer's market, or we're moving into a mode where it's a buyer's market. And so we think that will play to Altus's advantage. So we're in a good spot, and we look forward to updating you further on how things progress in terms of the acquisition opportunity set.

Got it. And then maybe just my last one. around community solar. I know you guys have talked in the past around, you know, having unique ways of kind of accessing customers. Could you just kind of talk about, you know, strategy there, how that's, you know, starting to play out here, I think would be helpful.

Sure. This is Lars. So, again, for everyone's benefit, community solar is where we merge effectively large commercial partners with real estate where we build large solar arrays on roofs or parking lots of big box buildings or industrial facilities or logistical facilities. But instead of selling the power back into that building, we're selling it to the surrounding community, including households. and specifically a focus of ours and now a focus of the Inflation Reduction Act is to include households that are low to moderate income, which is something that both of our strategic sponsors, CBRE and Blackstone, are very focused on, and many of our other corporate real estate partners as well. We're happy to there also be executing on our plan, which is to add clients and assets, and we now serve over 20,000 community solar residential homeowners And one of the interesting aspects of community solar is that there are significant potential to make those deals slightly more cost effective and efficient by having a lower cost origination process. And there we're beginning to see some fruits coming out of our digital efforts. We're in partnership with CBRE and Blackstone. We're now offering community solar subscription to their employees, courtesy of our app that's on the iPhone and the Android system. And that's an example of an onboarding process and effectively connecting with customers that we used to hire outside providers to do. And now we're able to do it in-house and with the support not only of our partners, but with our emerging digital platform. And so those cost savings go directly to the yield and the lowering of expenses for Dustin and the OPEX, as well as our profit margin. So we're very happy. We're looking forward to do even more on community solar, but that's just an example of what we're busy executing on right now.

Appreciate all the color there. Thanks. I'll hop in the queue.

And we have reached the end of the question and answer session, which also concludes today's conference. And you may disconnect your line at this time. Thank you for your participation.