Array Technologies, Inc. · NASDAQ:ARRY
Array Technologies — Q2 2024 Earnings Presentation
17 slides from Array Technologies's earnings presentation, Aug 8, 2024
Slide 1: Array Technologies 2Q 2024 Earnings Call
Array Technologies 2Q 2024 Earnings Call August 8, 2024 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 Neil Manning, President & COO 2
Slide 4: Executive Summary
Executive Summary Gross Profit, Adj. Gross Profit(1) Net Income, Adj. EBITDA(1) Operating Cash Flow, Revenue Gross Margin, Adj. Gross Margin(1) Net Income, Adj. EBITDA Margin(1) Free Cash Flow(1) ($M) 29.6% 28.8% $150.0 $146.4 22.8% $115.6 $20.5 35.0% 33.6% $89.6 $15.0 $86.0 $507.7 21.7% 10.3% $55.4
Slide 5: Industry and Market Dynamics
Industry and Market Dynamics Utility-Scale Solar Industry Environment 2024 Market Dynamics ► Solar continues to dominate new U.S. electric ► Strong new bookings performance and capacity additions1 orderbook remains over $2B ► Some customers continue to elongate timeline ► AI datacenter growth likely
Slide 6: SkyLink System Launch
SkyLink System Launch Key Benefits ► Extreme Weather Response: The PV power control system enables tracker movement regardless of grid status. Ensures trackers always stow with snow accumulation as detected by SmarTrackTM Automated Hail Alert Response. ► Enhanced Production: SkyLink’s eight-row arch
Slide 7: Customer & Industry Engagement Updates
Customer & Industry Engagement Updates ► Insurance Forum July 10-11 in Chandler, AZ ► Customer Forum July 30-31 in Chandler, AZ ➢ Around 35 attendees from insurers, brokers and banks ➢ Over 40 EPC and developer attendees • Impressed at Array’s resilient design for trackers • Focused on extreme weath
Slide 8: Supply Chain & ESG Updates
Supply Chain & ESG Updates Array's Supply Chain Profile ► Capacity: 50+ GW Globally; 30+ GW in the U.S. • Geographic diversity enhances security of supply ► Domestic Maturity: Long-standing U.S. focused presence • 31 domestic factories including our Albuquerque, NM facility • Majority supplying Arra
Slide 9: Financial Update
Financial Update Kevin Hostetler, CEO 8
Slide 10: 2Q 2024 Financial Results
2Q 2024 Financial Results 2Q Snapshot Y/Y Comparison Three Months Ended ► Revenue down 50% primarily from lower volumes and ASP June 30, decline on lower input costs ($ in millions, except EPS Data) 2024 2023 Y/Y Revenue $255.8 $507.7 ($251.9) Gross margin(1) 33.6% 28.8% + 480 bps ► Adjusted gross m
Slide 11: Full Year 2024 Guidance Update
Full Year 2024 Guidance Update Full Year Ending December 31, 2024 Planning Assumptions ► Third quarter revenue of $220 million - $235 million $0.9 billion to $1.0 billion Revenue Prior: $1.25 billion to $1.4 billion ► Adjusted GM% in the low-to-mid 30s, inclusive of torque tube and structural $185 m
Slide 12: Appendix
Appendix ARRAY
Slide 13: Adjusted Gross Profit Reconciliation
Adjusted Gross Profit Reconciliation ($ in thousands) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Revenue 255,766 507,725 409,169 884,498 Cost of revenue 169,813 361,323 268,126 640,556 Gross profit 85,953 146,402 141,043 243,942 Amortization of developed technology 3,6
Slide 14: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net income $ 25,699 $ 65,165 $ 27,863 $ 94,800 Preferred dividends and accretion 13,749 12,784 27,251 25,268 Net income to common shareholders $ 11,950 $ 52,381 $ 612 $ 69,532 Ot
Slide 15: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation ($ in thousands) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net income $ 25,699 $ 65,165 $ 27,864 $ 94,800 Preferred dividends and accretion 13,749 12,784 27,251 25,268 Net income to common shareholders $ 11,950 $ 52,381 $ 613 $ 69,53
Slide 16: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation ($ in thousands, except per share amounts) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Income per common share Basic $ 0.08 $ 0.34 $ — $ 0.47 Diluted $ 0.08 $ 0.34 $ — $ 0.46 Weighted average number of common shares outstanding Basic 151,797
Slide 17: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation ($ in thousands) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net cash provided by operating activities 3,957 20,540 51,459 66,356 Purchase of property, plant and equipment (2,131) (5,541) (4,527) (9,424) Free cash flow 1,826 14,999 46,932 5