11/16/2021

speaker
Tom
Operator

Good morning, ladies and gentlemen, and welcome to the Spark PowerCore Investor Call and Webcast. At this time, all participants have been placed on a listen-only mode, but we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn it over to your host, Dan Ardilla. Sir, the floor is yours.

speaker
Dan Ardilla
Executive Vice President and Chief Financial Officer

Thanks, Tom, and good morning. Welcome to our 2021 Third Quarter Conference Call. I am joined today by Spark's President and CEO, Richard Jackson, Chief Investment Officer Eric Waxman, and our newly appointed Executive Vice President and Chief Financial Officer Richard Perry. Rich Jackson will begin the morning with remarks on the current state and outlook for the business, and I will follow with a review of the third quarter. We will then have our usual Q&A session. Before we commence the review, I would like to remind you that our presentation contains certain forward-looking statements that are based on current expectations and are subject to a number of uncertainties and risks, and that actual results may differ materially. Further information identifying risks, uncertainties, and assumptions, and additional information on certain IFRS measures referred to in this call can be found in disclosure documents filed by the company with the securities regulatory authorities and available on CDAR.com. These forward-looking statements are made as of the date of this call, and except as expressly required by applicable law, Spark Power assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. With that, I will turn the call over to our President and CEO, Rich Jackson, for his opening comments.

speaker
Richard "Rich" Jackson
President and Chief Executive Officer

Thanks, Dan. Good morning and welcome to Spark Power's third quarter 2021 earnings conference call. Thank you for taking the time to join us. Before I go into updates on this quarter's activities, I'd like to highlight some news we shared in our press release last night. Dan has announced his retirement from Spark Power at the end of the year. Dan has been an excellent business partner to me and other members of our extended leadership team and has been instrumental in Spark's growth. And I wish him all the best as he embarks on his next chapter. I know he looks forward to some downtime and maybe a few rounds of golf over the winter someplace nice and warm. We are well underway into the company's fourth and final quarter of the year, and I am pleased to share that because of the gains made during our third quarter, we are continuing to experience growth across most of our business segments. In both Canada and the US, the loosening of COVID-19 restrictions has played a significant role in helping our business move forward through the progression and completion of projects and sites that have experienced delays due to the pandemic. Our employees in the field who make Spark Power's work possible and help to sustain customer relationships through excellence and service can once again travel to sites and branches across North America. In our offices, our sales and branch teams are pursuing active and new business leads, which is helping to reinforce Spark's end-to-end service model and team-oriented approach locally. As market demand for electrification continues to accelerate, we are well positioned to take full advantage. Some examples include in the US and in Canada, automated warehouses, data centers, and blockchain facilities have become significant to our business. We are currently engaged in ongoing and upcoming opportunities to grow Spark in this specialized area. Throughout the third quarter in Ontario, we've seen an uptick in the food and beverage segment, along with major industrial projects. Currently, our Eastern Ontario team is working with a large manufacturer to provide low voltage work, including lighting, to an existing and expanding site. In southwestern Ontario, we are also providing ongoing electrical services work to a major food manufacturer with opportunity for future opportunities. These opportunities are sticky and provide spark with long-term services that contribute to our reoccurring revenue profile. In our renewables business segment, we have seen promising growth, particularly throughout the U.S. This aligns with our first and second quarter trajectory, which also showed strong growth. In particular, the wind energy market is driving high billable hour trends. In this quarter, we were awarded our first major electric vehicle charging station project in the U.S., which will break ground in the fourth quarter. Our renewable segment was also awarded our first utility scale solar operations and maintenance contract in the Texas market. The project will enter its O&M phase in early 2022, and SPARC will serve as the turnkey O&M provider to that facility, which includes 24-7 monitoring, performance analytics, and a full scope of services onsite from modules to point of interconnection. This site will become SPARC's largest solar site under an O&M agreement across North America. This quarter, we also completed over 50 megawatts of new battery energy storage projects with a backlog into 22 that is, in fact, larger in capacity than our 2021 services rendered. In general, our U.S. solar services experienced 100% growth quarter over quarter, and we are continuing to see strength in this area, feeling the synergies of an integrated platform and an end-to-end offering throughout our renewables segment. As we capitalize on the market opportunities to accelerate our growth, we also continue to execute on our One Spark strategy to build a common platform to scale our business. I am pleased to share that our new Spark Power Campus in Oakville, Ontario is well underway and on track to be completed in 2022. We are especially excited about the site's state-of-the-art training facility, which will help to ensure our workforce has access to the highest quality education, whether they're working in the field or at the branch level. In September, we proudly launched our Be Powerful Scholarship, the first initiative of its kind for SPARC. This funding, made possible through the $5.3 million grant from the Government of Ontario's Skills Development Fund, will support six students in Ontario from underrepresented communities who are interested in becoming licensed electricians, power line technicians, high voltage technicians or technologists, renewable energy technicians, wind technicians or solar technicians. The application is closed on October 15th and we look forward to sharing more details about our scholarship recipients and progression of this initiative in the new year. Internally, our Project Darwin, which has sparked movement towards incorporating an integrated enterprise class technological environment, will seamlessly tie together our 35 plus branches throughout North America By doing so, we can ensure that data is optimally captured and utilized to enhance our customers' and employees' experiences. This project will further promote collaboration across different areas of our business and provide real-time information across multiple teams. It is the capstone of the integration of our Spark platform. As we are now well into the final quarter of 2021, we are busy planning for the year ahead, which we anticipate will continue to see the company grow across all of our business segments. In support of this, I am pleased to announce some important changes to our leadership that will enhance the continued growth of our business. With the addition of Tom Duncan, our newly appointed Executive Vice President and Chief Operating Officer, and Richard Perry, our newly appointed Executive Vice President and Chief Financial Officer, along with the appoint of Suhag Jaiswal to Vice President of Sustainability, we continue to build a collaborative management structure that ensures leadership is working together. across all segments to strengthen our one-spot culture and maximize our customers' experiences. This newly defined management structure will continue to support the execution of our growth strategy. I would now like to turn it over to Dan to share our financial results. Dan. Thanks, Rich.

Disclaimer

This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.

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