Shoals Technologies Group, Inc. (NASDAQ:SHLS) Q2 2023 Earnings Conference Call August 1, 2023 5:00 PM ET Company Participants Brandon Moss - Chief Executive Officer Jeff Tolnar - President Dominic Bardos - Chief Financial Officer Dhaval Patel - VP of Investor Relations Mehgan Peetz - Chief Legal Counsel Conference Call Participants Philip Shen - ROTH MKM Jordan Levy - Truist Securities Hilary Cauley - Guggenheim Brian Lee - Goldman Sachs Colin Rusch - Oppenheimer Luke Tilkens - Piper Sandler Derek Soderberg ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission File Number: 001-39942 Shoals Technologies Group, Inc. (Exact name of registrant as specified in its charter) | Delaware | | 85-3774438 ...

Shoals Technologies Group, Inc. (NASDAQ:SHLS) Q1 2023 Earnings Conference Call May 8, 2023 5:00 PM ET Company Participants Mehgan Peetz - Chief Legal Officer Jeffery Tolnar - Interim Chief Executive Officer and President Dominic Bardos - Chief Financial Officer Conference Call Participants Philip Shen - ROTH MKM Mark Strouse - JPMorgan Andrew Percoco - Morgan Stanley Maheep Mandloi - Crédit Suisse Brian Lee - Goldman Sachs Jordan Levy - Truist Securities Colin Rusch - Oppenheimer Kashy Harrison - Piper Sand ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission File Number: 001-39942 Shoals Technologies Group, Inc. (Exact name of registrant as specified in its charter) | Delaware | | 85-3774438 ...

Financial Data and Key Metrics Changes - In the fourth quarter, net income was $118.3 million compared to a net loss of $2.2 million in the prior year, significantly benefiting from a $110.9 million noncash gain related to the termination of a tax receivable agreement [68] - Fourth quarter revenue grew 97% year-over-year to $94.7 million, driven by increased demand for solar and EV solutions [74][136] - Adjusted EBITDA increased 167% to $30.1 million, with an adjusted EBITDA margin of 31.8%, reflecting higher gross margins [148] Business Line Data and Key Metrics Changes - System Solutions revenue grew 150% year-over-year, representing 86% of total revenue, up from 68% in the prior year [136] - The new wire management product line contributed to growth, with an attach rate to BLA continuing to increase [60] - Battery storage products also contributed to growth, with shipments beginning for a 1 gigawatt DC storage project [61] Market Data and Key Metrics Changes - Quoting volumes for international markets, particularly in Latin America, Australia, and EMEA, are increasing, indicating strong demand [63] - The solar market conditions are favorable, with early benefits from the Inflation Reduction Act driving demand for solar and storage offerings [64] - The EV market is seeing increased quote volumes related to fast charging solutions, driven by infrastructure bill funds [64] Company Strategy and Development Direction - The company aims to reach the next $500 million in revenue by fulfilling orders where customers are located, with a focus on international expansion [6] - Investments are being made in sales infrastructure and customer care to support growth and improve customer satisfaction [66][67] - The company is targeting a gross margin in the 40% range for 2023, with expectations for modest margin expansion [70][87] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong growth in 2023, with a revenue target range of $470 million to $510 million, representing a year-over-year increase of 44% to 56% [87] - The company has not seen significant delays in projects or installations due to supply chain issues, maintaining a strong outlook for revenue realization from backlog [93][125] - Management is optimistic about the adoption of new products and the overall market demand, particularly in the EV sector [118] Other Important Information - The company is in the process of transitioning its CEO, with Jeff Tolnar appointed as Interim CEO [75][76] - The company plans to continue investing in SG&A to support scalable long-term growth, anticipating a sequential increase in expenses throughout 2023 [88] Q&A Session Summary Question: Is there any additional upside in the potential revenue guidance should UFLPA resolve faster than expected? - Management is comfortable with the current guidance range and has not seen significant delays affecting revenue [93] Question: Can you talk about the ramp-up in your manufacturing facility and long-term margin expectations? - Management indicated that they expect a 40% gross margin to be achievable and are looking to expand production capacity [109] Question: What percentage of your backlog might be impacted by UFLPA? - Management stated that they do not expect significant impacts from UFLPA and anticipate realizing the backlog within the expected timeframe [98][125] Question: Can you provide an update on the EV charging business and its contribution to 2023 revenues? - The EV charging business is seeing strong adoption, particularly in fleet and school bus electrification, with increased quoting volumes [164]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission File Number: 001-39942 Shoals Technologies Group, Inc. (Exact name of registrant as specified in its charter) | Delaware 8 ...

Shoals Technologies Group, Inc. (NASDAQ:SHLS) Q3 2022 Earnings Conference Call November 14, 2022 5:00 PM ET Company Participants Mehgan Peetz - General Counsel, Chief Legal Officer & Corporate Secretary Jason Whitaker - CEO, President & Director Dominic Bardos - CFO Conference Call Participants Mark Strouse - JPMorgan Chase & Co. Philip Shen - ROTH Capital Partners Maheep Mandloi - Crédit Suisse Martin Malloy - Johnson Rice & Company Colin Rusch - Oppenheimer Kashy Harrison - Piper Sandler Brian Lee - Goldm ...

Financial Data and Key Metrics Changes - The company reported record revenue of $73.5 million for Q2 2022, a 23% increase year-over-year, and gross profit increased by 9% to $28.6 million [11][34] - Gross margin for the quarter was 38.9%, down from 43.8% in the prior year, attributed to a lower mix of BLA sales and higher raw material and logistics costs [12][36] - Adjusted EBITDA was $19.8 million, slightly down from $20.6 million in the prior year, reflecting ongoing investments in SG&A [13][38] - Adjusted net income decreased to $11.8 million from $14.7 million year-over-year [39] Business Line Data and Key Metrics Changes - Components revenue surged by 97% year-over-year, driven by increased shipments of battery storage products and new customer acquisitions [15][34] - System Solutions revenue grew by 11% year-over-year, representing 77% of total revenue, down from 86% in the prior year [17][35] - Backlog and awarded orders reached a record $327.2 million, up 63% year-over-year and 8% sequentially [14][40] Market Data and Key Metrics Changes - The company is experiencing strong demand across its product lines, particularly in battery storage and EV charging solutions [22][24] - International expansion efforts are gaining traction, with successful projects in Honduras and growing interest in European markets [20][21][78] Company Strategy and Development Direction - The company is focused on expanding its product offerings, particularly in battery storage and EV charging, while also ramping up production capabilities [19][22] - Management highlighted the importance of the Inflation Reduction Act as a significant positive for the solar industry, potentially accelerating demand for products [26][58] - The company aims to leverage its low capital intensity and flexible manufacturing processes to adapt to market changes [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of 2022, citing alleviation of previous headwinds and strong demand for solar and EV products [45] - The company reaffirmed its full-year revenue guidance of $300 million to $325 million, representing a year-over-year increase of 41% to 52% [41] - Management noted that the production ramp at the new facility is ahead of schedule, and they are prepared to meet increasing demand [28] Other Important Information - The company announced the appointment of Dominic Bardos as the new Chief Financial Officer, effective Q4 2022 [29] - The addition of Jeannette Mills and Robert Julian to the Board of Directors was also announced, enhancing corporate governance [31][32] Q&A Session Summary Question: Can you quantify the growth in backlog and awarded orders? - Management indicated that backlog is expected to continue increasing quarter-over-quarter, with recent tariff exemptions positively impacting customer sentiment [48][50] Question: What are the margin targets for the second half of the year? - Management expects adjusted EBITDA margins to improve as the mix shifts towards higher-margin BLA solutions, aiming for a return to 30% margins in the future [51][53] Question: How is the Inflation Reduction Act impacting business? - Management views the IRA as a significant positive for the industry, with potential benefits from tax credits and incentives for storage and EV infrastructure [56][58] Question: What is the competitive landscape like? - The competitive environment remains stable, with no significant new entrants affecting the company's market position [71] Question: How is the international market performance? - Management noted that international markets are expected to account for a larger share of business over time, with ongoing efforts to build a pipeline [76][79]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission File Number: 001-39942 Shoals Technologies Group, Inc. (Exact name of registrant as specified in its charter) | Delaware | | 85-3774438 ...

Financial Data and Key Metrics Changes - Revenue for Q1 2022 grew by 49% year-over-year to $68 million, with gross profit increasing by 40% to $26.3 million, setting new records for the company [13][25][26] - Gross margins improved sequentially by over 550 basis points to 38.7%, indicating recovery from lower margins experienced in the previous quarter [13][26] - Adjusted EBITDA rose 17% to $16.5 million compared to $14.1 million in the prior year [27] Business Line Data and Key Metrics Changes - Components revenue surged by 73% year-over-year, driven by battery storage shipments and onboarding new customers [15][25] - System Solutions revenue increased by 40% year-over-year, representing 69% of total revenue, down from 73% in the prior period [25][26] - The average project size for converted customers increased significantly, with seven customers representing up to 2 gigawatts of demand for the year [16] Market Data and Key Metrics Changes - The backlog in awarded orders reached a record $302.3 million, up 67% year-over-year, reflecting strong customer demand [28] - The company is expanding its international presence, receiving orders from three new international customers during the quarter [19] Company Strategy and Development Direction - The company is investing heavily in SG&A to support growth initiatives, including expanding product development capabilities and scaling up the EV business [14] - Strategic partnerships with Ernst & Young and Luminace Brookfield are expected to generate new sales opportunities [21] - The company is focused on transitioning customers to new system solutions and expanding its international sales presence [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the revenue outlook despite potential project delays due to the US Department of Commerce's investigation into solar cells and panels [22][23] - The company reaffirmed its revenue guidance for 2022, expecting revenues between $300 million and $325 million, representing a year-over-year increase of 41% to 52% [29] - Management noted that while backlog growth may slow due to project delays, the current book of business is sufficient to meet plans until the tariff situation is resolved [24] Other Important Information - The company increased its credit facility by $50 million to $150 million, providing additional liquidity for working capital needs [32] - The certification process for new products, including BLA 2.0, is underway, with expected shipments in the second half of the year [18][81] Q&A Session Summary Question: Revenue breakdown for EV business versus solar - Management did not provide specific revenue breakdowns for the EV business but expressed excitement about the growth opportunities in that area [37][38] Question: Risks for 2023 revenue growth - Management indicated that while they are not providing guidance for 2023, they are comfortable with the low end of their 2022 outlook and are monitoring project activity closely [39][41] Question: Revenue from storage in Q1 - Management acknowledged growing revenue opportunities in storage but did not provide specific figures [44][45] Question: Working capital needs in Q2 and beyond - Management expects working capital usage to increase through Q2 and early Q3, with a decrease anticipated in Q4 [53][54] Question: Geographic diversity in quotation activity - Management did not release specific geographic data related to quotation activity but acknowledged the growing international presence [65][66] Question: EV infrastructure growth timelines - Management highlighted significant funding opportunities for school bus electrification and expects this to drive growth in the EV segment [68][70] Question: International business and project commitments - Management confirmed that the three international customers mentioned are committed to specific projects outside the US [76][78]