Spark Power Group Inc.

Greetings. Welcome to the Spark Power Corporation Investor Call and Webcast. At this time, all participants are in a listen-only mode. 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 like to turn the conference over to your host, Richard Perry. You may begin.

Good morning and thank you for joining Spark Power's fourth quarter and fiscal 2022 conference call. Joining me on the call today is Richard Jackson, Spark Power's president and CEO. On today's call, we will discuss the company's fourth quarter and annual performance, including key business drivers. We will also provide an update on some of the key strategic initiatives that we have been undertaking to streamline our business and position Spark Power for long-term profitable growth and value creation. In a moment, I will hand the call over to Rich Jackson, who will comment on our business highlights for the fourth quarter and full year, including updates on our key strategic initiatives. I will then provide a financial overview of the quarter and full year and will conclude by briefly detailing some of the reasons why we believe Spark Power is well-positioned for long-term success. Following our prepared remarks, we will open up the call for Q&A. Before proceeding, I would like to remind listeners that our presentation contains certain forward-looking statements that are based on current expectations and are subject to several risks and uncertainties, and actual results may differ materially. Further information identifying risks, uncertainties, and assumptions And additional information on certain non IFRS measures referred to in this call can be found in the disclosure documents filed by Spark Power with the securities regulatory authorities available on CDAR.com. Forward looking statements are made as of the date of this call Wednesday, March 29, 2023. Except as expressly required by applicable law, Spark Power assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. With that, I will now hand the call over to Rich Jackson, President and CEO of Spark Power.

Thank you, Richard, and good morning, everyone. Thank you for joining us on today's call. We are pleased with the progress we made in 2022 as it relates to improving Spark's financial and operating performance. In 22, we made progress on improving our overall revenue mix, gross margin performance, and in the second half of the year, improving our performance and focus related to working capital management. In Q4, we closed with divestiture of Bullfrog. Our team did a great job leading the process from within and working with the buyer to get us to a mutually beneficial result. As reported, the sale of Bullfrog supports our focus on streamlining Spark's core business, while at the same time giving Spark additional capital, which we were able to allocate towards long-term debt and improve liquidity. For the fourth quarter, we continued to drive solid revenues across our technical services and renewable segments, with solar services driving the majority of the growth in renewables. This is an important achievement for our organization, given our intentional shift in focusing our revenue mix to fewer large projects and only work we deem in alignment with our targeted go-to-market plan. The mix of wind-related work in our renewable segment was down in Q4 due to a reduction in large wind projects from prior periods. And speaking of our go-to-market plan, I was extremely pleased with my team and the exciting work completed in 2022 towards a new three-year strategic plan for SPARC. Our new Let's Grow Better 2025 strategy is now fully launched inside our organization and we have begun the work on executing our first year in 2023. The go-to-market plan is a cornerstone of the new strategy and really propels Spark to become more commercialized and targeted on our customer base and the markets we intend to focus on over the strategic cycle. Coupled with our go-to-market, another very focused theme within Spark is our ongoing implementation of standardized key business processes and technology. The previously announced Project Darwin is well underway and supports our strategic pillar, operational excellence. I look forward to reporting out further in the coming months our progress towards maturing our business processes and continuous improvement aimed at driving shareholder value and improving our long-term view on free cash flow generation. In Q4, a major focus of my team was on shortening our total cash cycle and seeking ways to reduce working capital. Our team really placed effort on reducing our contract assets, collecting on cash even more diligently, and working to reduce our billing cycle time. I am pleased with this ongoing focus and with our new business processes and technology coming on, I believe our ability to generate free cash flow and reduce working capital will continue to improve throughout 2023. Throughout 2022, one of our key focus areas was to complete the transition to a one spark operating model through restructuring efforts that resulted in a flatter organizational structure, cost reduction initiatives allowing for profitable growth, and a fully integrated service model that would allow us to optimize available opportunities in the market. To date, we have realized approximately $6.5 million of pro forma annual SG&A cost savings through our various initiatives, and we expect to realize the full benefits of these initiatives through 2023. The majority of our integration work is now completed, and I'm pleased to share that our journey as a OneSpark enterprise continues to gain momentum and become institutionalized in the business. As part of the new strategy, we will intentionally leverage the OneSpark foundation to transform to a Spark way, which is best described as a set of common goals, practices, and purpose to achieve our newly formed vision, mission, and plan strategic priorities as Spark prepares to unlock the next phase in its maturity, supported by a foundation of operational excellence. As I reflect on our accomplishments in 2022, I'm excited about the opportunities that lie ahead of us in 2023. We've experienced expansion across our entire portfolio despite the challenging macroeconomic environment. We are now positioned to continue on our growth strategy and deliver ongoing value creation for all our stakeholders through Let's Grow Better, which we look forward to sharing as we continue to execute on the strategic plan. I want to take a moment to thank all of our employees for their continued hard work and commitment to the company. Once again, they have demonstrated tremendous patience and perseverance over the last year, and I'm extremely proud of their accomplishments. I also want to thank our shareholders for the continued trust you have put into our board and management as we continue to navigate Spark through the maturity curve. I'll now turn the call back over to Richard to discuss the Q4 financial results.