Array Technologies, Inc. · NASDAQ:ARRY
Array Technologies — Q2 2022 Earnings Presentation
14 slides from Array Technologies's earnings presentation, Aug 9, 2022
Slide 1: Array Technologies 2Q 2022 Earnings Call
Array Technologies 2Q 2022 Earnings Call August 9, 2022 1
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements and Other Information This presenta tion contains forward-looking s ta tem ents , a s the term is us ed wi thin federal securi ties laws. All statemen ts other than those of historical fact which appear in this pr esentation, including (without limita tion) s ta
Slide 3: Business Update
Business Update Kevin Hostetler 3
Slide 4: Executive Summary
Executive Summary Highlights Select Financials ► Total revenue growth of 116%, Organic revenue growth of Revenue Adjusted EBITDA(1) 79% $424.9 $25.9 ► $1.9 billion in executed contracts and awarded, a 110% increase from June 30, 2021 $196.5 ► Gross Margin of 11.1%, up 70 bps from Q2 2021 and 230 bps
Slide 5: U.S. Industry & Market Update
U.S. Industry & Market Update • President Biden’s tariff moratorium provided relief and window of confidence for our customers to move forward U.S. Regulatory • Inflation Reduction Act, passed by the Senate, will be the most impactful legislation for the solar industry ever Environment • UFLPA is ca
Slide 6: Business Update
Business Update Key Foundational Items Focus Areas ► High quality, experienced management team ► Mature the processes and execution at STI – Accelerating integration efforts ► Business and operating models support continued growth and expanding profitability ► Further rationalize the STI constructio
Slide 7: Financial Update
Financial Update Nipul Patel 7
Slide 8: 2Q 2022 Financial Results
2Q 2022 Financial Results 2Q Snapshot Y/Y Comparison Three Months Ended June 30, ► Revenue up 116% from addition of STI Norland business, increase in ($ in millions, except EPS Data) 2022 2021 Y/Y total MWs shipped and an increase in ASP Revenue $424.9 $196.5 +$228.4 Gross margin 11.1% 10.4% + 70 bp
Slide 9: Liquidity and Working Capital Update
Liquidity and Working Capital Update Q2 Position Q3 Outlook Term Loan $325 million $324 million Revolver Balance $68 million $0 Cash $51 million $50 - $75 million Net Debt(1) $341 million $249 - $274 million Revolver Availability $2 million $150 - $170 million Total Cash & Revolver Availability $53
Slide 10: FY2022 Guidance Reaffirmed
FY2022 Guidance Reaffirmed Planning Assumptions ► AD/CVD relief providing minimal upside to 2022 Full Year Ending December 31, 2022 ► Adjusted SG&A between $25 million to $28 million per quarter ► Effective Tax Rate: 26% Revenue $1.30 billion to $1.50 billion ► Fx Rates: Euro to USD 1.05 | Euro to B
Slide 11: Appendix
Appendix TecuNoLoarts FOLLOW THE SUN. FOLLOW THE LEADER. 11
Slide 12: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) Three Months Ended June 30, 2022 2021 Net loss $ (2,777) $ (5,517) Preferred dividends and accretion 12,182 — Net loss to common shareholders $ (14,959) $ (5,517) Other expense, net 2,107 122 Preferred dividends and accretion 12,182 — Interest expense
Slide 13: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation Three Months Ended ($ in thousands) June 30, 2022 2021 Net loss $ (2,777) $ (5,517) Preferred dividends and accretion 12,182 — Net loss to common shareholders $ (14,959) $ (5,517) Amortization of intangibles 24,163 5,875 Amortization of debt discount and issuance c
Slide 14: Adjusted Net Income Reconciliation, Continued
Adjusted Net Income Reconciliation, Continued (a) Represents certain legal fees and other related costs associated with (i) a patent inf ringement action against a competitor f or which a judgement has been entered in our favor and successf ul defense of a related matter and (ii) An action against a