Slide 1: Array Technologies 4Q 2023 Earnings Call
February 27, 2024 Array Technologies 4Q 2023 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 4Q 2023 Highlights Full Year 2023 Highlights ► Significant margin expansion from cost takeout initiatives, non-tracker revenue ► Operational improvements driving increased profitability year-over-year streams and 45X benefit recognition ► Gross Margin of 26.4%(1) and Adjusted Gross
Slide 5: Business & Product Update
Business & Product Update 2023 Business Highlights 2023 Product, Software, & Services Highlights ► Increased global capacity to nearly 50 GW, with more ► Expansion of tracker offerings now provides solution than 30 GW of U.S. capacity; capable of sourcing for every unique project in the market 85%+
Slide 6: Market Update and Revenue Outlook Dynamics
Market Update and Revenue Outlook Dynamics ARRY U.S. High Probability Pipeline Trend ARRY U.S. Market Dynamics ► Expect 2024 ASPs to be down low double digits % year-over- year due to lower commodity costs, structural cost enhancements and partial pass through of 45x benefits ► Project delays contin
Slide 7: Financial Update
Financial Update Kurt Wood, CFO 6
Slide 8: 4Q 2023 Financial Results
4Q 2023 Financial Results 4Q Snapshot Y/Y Comparison Three Months Ended ► Revenue down 15% from ASP decline on lower input costs December 31, ($ in millions, except EPS Data) 2023 2022 Y/Y Revenue $341.6 $402.1 ($60.5) Gross margin(1) 24.7% 19.1% + 560 bps ► Adjusted gross margin increased to 25.7%
Slide 9: Full Year 2023 Financial Results
Full Year 2023 Financial Results Full Year Snapshot Y/Y Comparison Full Year Ended ► Revenue decline driven by lower ASPs on reduced December 31, commodity cost inputs and relatively flat volume in ($ in millions, except EPS Data) 2023 2022 Y/Y addition to the $23.2M Brazil ICMS reclassification Rev
Slide 10: Full Year 2024 Guidance
Full Year 2024 Guidance Full Year Ending December 31, 2024 Planning Assumptions ► Adjusted GM% in the low 30s, inclusive of retained torque tube 45X benefit Revenue $1.25 billion to $1.40 billion ► Adjusted SG&A between $33 million - $35 million per quarter Adjusted EBITDA(1) (2) $285 million to $31
Slide 11: Appendix
Appendix ARRAY
Slide 12: Adjusted Gross Profit Reconciliation
Adjusted Gross Profit Reconciliation ($ in thousands) Three Months Ended Year Ended December 31, December 31, 2023 2022 2023 2022 Revenue 341,615 402,071 1,576,551 1,637,546 Cost of revenue 257,386 325,191 1,161,000 1,424,828 Gross profit 84,229 76,880 415,551 212,718 Amortization of developed techn
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) Three Months Ended Year Ended December 31, December 31, 2023 2022 2023 2022 Net income (loss) $ 19,342 $ (5,251) $ 137,240 $ 4,432 Preferred dividends and accretion 13,332 12,009 51,691 48,054 Net income (loss) to common shareholders $ 6,010 $ (17,260)
Slide 14: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation ($ in thousands) Three Months Ended Year Ended December 31, December 31, 2023 2022 2023 2022 Net income (loss) $ 19,342 $ (5,251) $ 137,240 $ 4,432 Preferred dividends and accretion 13,332 12,009 51,691 48,054 Net income (loss) to common shareholders $ 6,010 $ (17,
Slide 15: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation ($ in thousands, except per share amounts) Three Months Ended Year Ended December 31, December 31, 2023 2022 2023 2022 Loss per common share $ $ $ $ Basic $ 0.04 $ (0.11) $ 0.57 $ (0.29) Diluted $ 0.04 $ (0.11) $ 0.56 $ (0.29) Weighted average common shares outstanding Ba
Slide 16: Proforma Adjusted Gross Profit
Proforma Adjusted Gross Profit ($ in thousands) (a) In 2022, other costs represent remediation and damages incurred because of a shutdown of a key supplier due to a severe weather event. 15