Slide 1: Array Technologies 1Q 2024 Earnings Call
May 9, 2024 Array Technologies 1Q 2024 Earnings Call 0
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements and Other Information This presentation contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements include information concerning our project
Slide 3: Business Update
Business Update Kevin Hostetler, CEO 2
Slide 4: Executive Summary
Executive Summary Gross Profit, Adj. Gross Profit(1) Net Income (Loss), Adj. EBITDA(1) Operating Cash Flow, Revenue Gross Margin, Adj. Gross Margin(1) Net Income (Loss), Adj. EBITDA Margin(1) Free Cash Flow(1) ($M) 17.8% 26.9% 25.9% $47.5 $45.1 $67.0 $45.8 $101.2 $97.5 $41.9 38.3% 35.9% 17.1% $376.8
Slide 5: Business Update and Market Dynamics
Business Update and Market Dynamics Orderbook Trending ARRY Market Dynamics ► Maintaining strong bookings momentum – cumulative bookings of $1.8 billion over last four quarters $2.1B $1.8B ► Orderbook contains diverse customer mix including $1.7B Utilities/IPPs, developers, and EPCs, with >80% Tier
Slide 6: New Albuquerque Facility Groundbreaking
New Albuquerque Facility Groundbreaking 5
Slide 7: SmarTrack Hail Alert Response Launch
SmarTrackTM Hail Alert Response Launch Proactive Hailstorm Protection Array SmarTrackTM Hail Alert Response ► Launched patented Hail Alert Response system designed to autonomously protect solar assets from hail damage Automated Response Insurance Benefits Utilizing reliable weather data, Meets insur
Slide 8: Benefits of ARRY Passive Wind Stow Technology
Independent report by DNV verifies energy losses from passive stow Benefits of ARRY Passive Wind Stow Technology are lower than the active stow strategies Passive Stow Active Stow Energy savings range up to 4.3% annually based on location Active stowing uses a more conservative approach, stowing Ene
Slide 9: Financial Update
Financial Update Kurt Wood, CFO 8
Slide 10: 1Q 2024 Financial Results
1Q 2024 Financial Results 1Q Snapshot Y/Y Comparison Three Months Ended ► Revenue down 59% primarily from lower volumes and March 31, ASP decline on lower input costs ($ in millions, except EPS Data) 2024 2023 Y/Y Revenue $153.4 $376.8 ($223.4) ► Adjusted gross margin increased to 38.3% from 26.9% G
Slide 11: Reaffirming Full Year 2024 Guidance
Reaffirming Full Year 2024 Guidance Full Year Ending December 31, 2024 Planning Assumptions ► Second quarter revenue of $225 - $235 million Revenue $1.25 billion to $1.40 billion ► Adjusted GM% in the low 30s, inclusive of retained torque tube 45X benefit Adjusted EBITDA(1) (2) $285 million to $315
Slide 12: Appendix
Appendix ARRAY
Slide 13: Adjusted Gross Profit Reconciliation
Adjusted Gross Profit Reconciliation ($ in thousands) Three Months Ended March 31, 2024 2023 Revenue 153,403 376,773 Cost of revenue 98,313 279,233 Gross profit 55,090 97,540 Amortization of developed technology 3,639 3,639 Adjusted gross profit 58,729 101,179 Adjusted gross margin 38.3 % 26.9 % 12
Slide 14: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) Three Months Ended March 31, 2024 2023 Net income $ 2,165 $ 29,635 Preferred dividends and accretion 13,502 12,484 Net (loss) income to common shareholders $ (11,337) $ 17,151 Other expense, net (4,494) (1,425) Foreign currency loss 499 194 Preferred d
Slide 15: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation ($ in thousands) Three Months Ended March 31, 2024 2023 Net income $ 2,165 $ 29,635 Preferred dividends and accretion 13,502 12,484 Net (loss) income to common shareholders $ (11,337) $ 17,151 Amortization of intangibles 9,254 10,282 Amortization of developed techn
Slide 16: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation ($ in thousands, except per share amounts) Three Months Ended March 31, 2024 2023 (Loss) income per common share Basic $ (0.07) $ 0.11 Diluted $ (0.07) $ 0.11 Weighted average number of common shares outstanding Basic 151,351 150,607 Diluted 151,351 151,795 Adjusted net i
Slide 17: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation ($ in thousands) Three Months Ended March 31, 2024 2023 Net cash provided by operating activities 47,502 45,816 Purchase of property, plant and equipment (2,396) (3,883) Free cash flow 45,106 41,933 16