Slide 1: Array Technologies 3Q 2022 Earnings Call
Array Technologies 3Q 2022 Earnings Call November 8, 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 173%, Organic revenue growth of 112% Revenue Adjusted EBITDA(1) ► $1.8 billion in executed contracts and awarded, a 77% increase Adjusted EBITDA % from September 30, 2021 $55.4 $515.0 10.8% ► Gross Margin of 15.6%, up 1250 bps
Slide 5: U.S. Industry & Market Update
U.S. Industry & Market Update • While the growth trajectory from the Act is undeniable, many specifics remain unknown at this time Inflation Reduction • Actively engaged with key trade association and governmental agencies to shape bill implementation Act (IRA) • Continued dialogue with customers an
Slide 6: Business Update
Business Update Focus Areas Progress To-Date Announced the availability of the STI H250 in the U.S.; rolled 1 Mature the processes and execution at STI out matrix organization 2 Reduction of construction headcount by ~70% in Brazil and Further rationalize the STI construction offering 20% in Spain f
Slide 7: Financial Update
Financial Update Nipul Patel 7
Slide 8: 3Q 2022 Financial Results
3Q 2022 Financial Results 3Q Snapshot Y/Y Comparison Three Months Ended September 30, ► Revenue up 173% from addition of $115 million of STI Norland ($ in millions, except EPS Data) 2022 2021 Y/Y business; organic increase in revenue of 112%; higher ASP Revenue $515.0 $188.7 +$326.3 Gross margin 15.
Slide 9: Liquidity and Cash Flow Update
Liquidity and Cash Flow Update Prior Q3 Outlook Q3 Position Term Loan $324 million $324 million Revolver Balance $0 $0 Cash $50 - $75 million $63 million Net Debt(1) $249 - $274 million $261 million Revolver Availability $150 - $170 million $166 million Total Cash & Revolver Availability $200 - $245
Slide 10: Updated FY2022 Guidance
Updated FY2022 Guidance Planning Assumptions ► “AD/CVD” project deliveries between $75 million - $100 million in ‘22 Full Year Ending December 31, 2022(2) ► Adjusted SG&A in Q4 between $28 million - $30 million ► Effective Tax Rate for Adjusted EPS: 22% - 25% Revenue $1.50 billion to $1.60 billion ►
Slide 11: Appendix
Appendix TecuNoLoarts FOLLOW THE SUN. FOLLOW THE LEADER. 11
Slide 12: Adjusted EBITDA Reconciliation
Adjusted EBTIDA Reconciliation ($ in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Net income (loss) $ 40,822 $ (27,561) $ 13,542 $ (28,502) Preferred dividends and accretion 12,257 5,479 36,045 5,479 Net income (loss) to common shareholders $ 28,565
Slide 13: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation ($ in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Net income (loss) $ 40,822 $ (27,561) $ 13,542 $ (28,502) Preferred dividends and accretion 12,257 5,479 36,045 5,479 Net income (loss) to common shareholders $ 28
Slide 14: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Net income (loss) per share of common stock Basic $ 0.19 $ (0.25) $ (0.15) $ (0.26) Diluted $ 0.19 $ (0.25) $ (0.15) $ (0.26) Weighted average number of shares of common stock Basic 150,3
Slide 15: Discussion of Quarter Ended June 30, 2022 Restatement
Discussion of Quarter Ended June 30, 2022 Restatement Background of Restatement On November 7, 2022, management and the Audit Committee of the Company, in consultation with BDO USA LLP (“BDO”), the Company’s independent registered public accounting firm, determined that the Company’s previously issu