Duos Technologies Group (DUOT) Q1 2025 Earnings Call May 15, 2025 04:30 PM ET Company Participants Charles Ferry - CEO & DirectorAdrian Goldfarb - CFODan Weston - General Manager Conference Call Participants Mike Latimore - Managing Director & Senior Research AnalystEdward Woo - Director of Research & Senior Analyst Operator Good afternoon. Welcome to Duos Technologies First Quarter twenty twenty five Earnings Conference Call. Joining us today's call are Duos' CEO, Chuck Ferry and CFO, Adrian Goldfarb. Foll ...

Financial Data and Key Metrics Changes - Total revenues for Q1 2025 increased 363% to $4,950,000 compared to $1,070,000 in Q1 2024 [11] - Gross margin for Q1 2025 increased 1288% to $1,310,000 compared to $90,000 for Q1 2024 [13] - Net loss for Q1 2025 totaled $2,080,000 compared to a net loss of $2,750,000 for Q1 2024, representing a 24% decrease in net loss [15] Business Line Data and Key Metrics Changes - The power line of business contracted 570 megawatts with APR Energy's gas turbine fleet, an increase of 180 megawatts since the last report [3] - The edge data center business, DuosEdge AI, has customer commitments for an additional eight edge data centers, expecting to complete installations in the next six months [4][8] - Revenues from the asset management agreement (AMA) with APR Energy are expected to positively impact gross margins [11] Market Data and Key Metrics Changes - Current contracts and backlog represent more than $45,000,000 in revenue, with approximately $17,400,000 projected to be recognized in Q2 2025 [18] - The company expects to enter 2026 with more than $3,000,000 in annual recurring revenue from multi-year contracts [9] Company Strategy and Development Direction - The company is focused on executing its strategy to grow into a larger entity through three distinct divisions: Duos Technologies, DuosEdge AI, and DuosEnergy [6] - The edge AI division is actively marketing remote data centers to serve local communities and businesses, with plans to deploy 15 edge data centers by the end of the year [7][8] - The company is evaluating opportunities to acquire additional assets to grow the overall value of APR Energy [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the power business and the edge data center market, noting that both lines of business are currently performing well [34][36] - The company anticipates breakeven or potential profitability in the third and fourth quarters, with a focus on minimizing losses in the first half of the year [19] Other Important Information - The company has improved its balance sheet, with shareholders' equity now over $5,100,000 and cash of $6,480,000 [16] - The company has retired $1,000,000 of debt during the quarter and expects to retire an additional $1,200,000 by year-end [17] Q&A Session Summary Question: What is the expected gross margin for the power business throughout the year? - Management indicated that a gross margin of around 32% is a good range to expect for the year, with opportunities to improve [26][27] Question: Any updates on hyperscaler opportunities in the data center business? - Management confirmed active discussions with three or four hyperscalers interested in utilizing edge data centers and behind-the-meter power solutions [28][29] Question: Has there been any change in the sales cycle due to tariffs? - Management reported no significant impact from tariffs on the power or edge data center businesses, stating that both lines are performing well [33][34] Question: How does the company plan to allocate resources for new projects? - Management noted that they are maintaining a high utilization rate of their assets and are evaluating opportunities for additional acquisitions to support growth [45][46]

Core Viewpoint - Vistra Corp. has announced a definitive agreement to acquire seven modern natural gas generation facilities with a total capacity of approximately 2,600 MW from Lotus Infrastructure Partners for $1.9 billion, enhancing its generation footprint in key markets [2][3]. Acquisition Details - The acquisition includes five combined cycle gas turbine (CCGT) facilities and two combustion turbine (CT) facilities located across PJM, New England, New York, and California, diversifying Vistra's natural gas fleet geographically [2][4]. - The purchase price of $1.9 billion translates to approximately $743 per kW, with an expected multiple of about 7x 2026 Adjusted EBITDA, excluding potential synergies [4][7]. - The transaction is expected to deliver immediate benefits to Vistra shareholders, including ongoing operations adjusted free cash flow per share accretion in the first year following closing [4][7]. Financial Aspects - Vistra plans to fund the acquisition through the assumption of an existing term loan from Lotus and cash on hand, with the term loan expected to be around 50% of the total consideration at closing [4][7]. - The company reiterates its capital allocation plan, targeting long-term net leverage of less than 3x, alongside a commitment to return capital to shareholders through $300 million in annual dividends and at least $1 billion in share repurchases each year [7]. Regulatory and Timing - The transaction is subject to regulatory approvals from the Federal Energy Regulatory Commission and the Department of Justice under the Hart-Scott-Rodino Act, with an expected closing date in late 2025 or early 2026 [5]. Portfolio Overview - The acquired portfolio includes the following assets: - Fairless, Pennsylvania: 1,320 MW, CCGT - Manchester, Rhode Island: 510 MW, CCGT - Garrison, Delaware: 309 MW, CCGT - Hazleton, Pennsylvania: 158 MW, CT - Beaver Falls, New York: 108 MW, CCGT - Syracuse, New York: 103 MW, CCGT - Greenleaf, California: 49 MW, CT - Total: 2,557 MW [4]. Company Background - Vistra is a leading integrated retail electricity and power generation company, focusing on reliability, affordability, and sustainability, operating a diverse fleet of energy resources [9].

Group 1 - CMS Energy announced a new corporate organizational structure to support its operational transformation and long-term strategy, effective July 1, 2025 [1][2] - The new structure aims to provide safe, reliable, affordable, clean, and equitable energy for customers, focusing on the triple bottom line of people, planet, and prosperity [2][3] - The organization will enhance customer service and operational success, with a focus on strategy execution across four key business units [3] Group 2 - Leadership appointments include Lauren Snyder as senior vice president, chief customer and growth officer, overseeing Customer Operations, Experience, Sales, Marketing, and Economic Development [4] - Tonya Berry will serve as executive vice president & chief operating officer, responsible for Electric Supply, Electric Distribution, and Natural Gas Delivery [4] - Other key appointments include Sri Maddipati as president of Electric Supply, Greg Salisbury as president of Electric Distribution, and LeeRoy Wells, Jr. as president of Natural Gas Delivery [4]

Core Viewpoint - Landsvirkjun successfully issued green bonds totaling USD 150 million, exceeding the original target of USD 125 million due to strong investor interest [1] Group 1: Bond Issuance Details - The bonds have maturities of 6 and 8 years and were issued in three tranches, with two tranches having fixed interest rates of 5.17% and 5.37%, reflecting spreads of 115–125 basis points over U.S. Treasury bonds [2] - The third tranche features a floating interest rate indexed to SOFR with a spread of 144 basis points, and the issuance is covenant-free, indicating investor confidence in the company's financial position [2] Group 2: Role of Placement Agents - Barclays Capital Inc. and ING Financial Markets LLC served as joint placement agents for the bond issuance [3] Group 3: Use of Proceeds - Proceeds from the bond issuance will finance Landsvirkjun's power projects, including the Vaðalda Wind Farm, which will be Iceland's first wind power plant, and the Hvammur Hydropower Station, the eighth hydroelectric power plant in the Þjórsá and Tungnaá region [4] Group 4: Green Financing Framework - The bonds are issued under Landsvirkjun's Green Financing Framework, which ensures that proceeds are exclusively used for projects with positive environmental and climate impacts [5]

Financial Data and Key Metrics Changes - The company recorded revenue of $500,000 for Q1 2025, compared to no revenue in Q1 2024, indicating a significant year-over-year improvement [20] - Operating expenses increased to $19,700,000 in Q1 2025 from $19,000,000 in Q1 2024, with R&D costs rising to $12,200,000 from $8,000,000, reflecting increased R&D activities [21] - The net loss for Q1 2025 was $17,300,000, up from $15,600,000 in Q1 2024, indicating ongoing financial challenges [22] Business Line Data and Key Metrics Changes - The company has over 100 units under non-binding Letters of Intent (LOIs) across various markets, including data centers and EV charging, indicating strong interest in the Carnot power module [10] - Initial definitive agreements are in place with early adopter customers, including the U.S. Navy and several Fortune 500 companies, which is a positive sign for future revenue [10] Market Data and Key Metrics Changes - The ACT Expo showcased the Carnot power module, highlighting the underdeveloped state of the power segment and the growing demand for alternative power generation technologies [7][8] - A recent competitor raised over $250 million, signaling investor confidence in the distributed power market, which may benefit the company [8] Company Strategy and Development Direction - The company is focused on delivering reliable, fuel-flexible, and scalable power solutions, with plans to commercialize the Carnot power module by the end of 2025 [19][30] - The company is addressing production challenges by bringing some manufacturing in-house and improving component sourcing, which is expected to enhance production capabilities [13][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the reliability of the Carnot system tested with the U.S. Navy, noting no unplanned downtime since operations began [12][33] - The company remains on track for commercialization and expects to generate revenue between $10 million and $15 million for the full year 2025, driven by early adopter unit deployments [19][27] Other Important Information - The company is facing potential tariff impacts on capital spending, particularly related to additive printers sourced from the EU, which could increase costs by $2 million to $3 million [24] - Capital expenditures for 2025 are now expected to be closer to $30 million, up from the previous estimate of $25 million, due to increased spending on additive printing machines [26] Q&A Session Summary Question: Can you tell us more about the Navy's unit performance? - Management reported strong reliability from the Navy's unit, with no need for repairs or rebuilds since operations began, indicating a stable system [32][33] Question: Given the challenges discussed, how will this impact growth plans for next year? - Management indicated that while production challenges exist, they do not foresee a negative impact on the ability to scale manufacturing next year, with plans to continue commercialization as scheduled [35][37]

EDMONTON, Alberta, May 13, 2025 (GLOBE NEWSWIRE) -- Capital Power Corporation (TSX: CPX) (“Capital Power” or the “Company”) announced today the pricing of a private offering of US$700 million aggregate principal amount of 5.257% senior notes due 2028 (the “2028 Notes”) and US$500 million aggregate principal amount of 6.189% senior notes due 2035 (the “2035 Notes” and, collectively, the “Notes”) to be issued by Capital Power (US Holdings) Inc., a U.S. wholly-owned subsidiary of the Company. The Notes will be ...

Financial Data and Key Metrics Changes - Total operating revenue increased to $117.8 million for Q1 2025 compared to $94.8 million in Q4 2024 and $111.6 million in the prior year period [14] - Net income improved to $10 million for Q1 2025 compared to net losses of $215.8 million in Q4 2024 and the prior year period [14] - Operating cash flow increased to $38.4 million for Q1 2025 compared to $32.5 million in Q4 2024 and $16.4 million in the prior year period [14] - Adjusted EBITDA increased significantly to $19.3 million for Q1 2025 compared to $6.2 million in Q4 2024 and $6.8 million in the prior year period [14] - Total bank debt reduced to $23 million as of March 31, 2025, compared to $44 million at December 31, 2024, and $77 million at March 31, 2024 [15] - Total liquidity increased to $69 million as of March 31, 2025, compared to $37.8 million at December 31, 2024, and $39.5 million at March 31, 2024 [15] Business Line Data and Key Metrics Changes - Electric sales for Q1 2025 increased to $85.9 million compared to $69.7 million in Q4 2024 and $60.7 million in the prior year period [13] - Coal sales were $54.8 million for Q1 2025 compared to $42.4 million in Q4 2024 and $66 million in the prior year period, reflecting a strategic reduction in coal production [13] Market Data and Key Metrics Changes - The forward power curves indicate increasing margins for energy produced at the Merum plant, with accredited capacity sold at prices exceeding $600 per megawatt day in the recent MISO auction [9] - Approximately 3 million megawatt hours have been contracted for the balance of 2025 at an average price of $37.20, and 3.4 million megawatt hours for 2026 at an average price of $44.43 [10] Company Strategy and Development Direction - The company is focused on a strategic shift to a vertically integrated independent power producer, leveraging strong counterparty relationships to manage price volatility [5] - Ongoing negotiations with a leading global data center developer are progressing, with the potential for long-term supply agreements [6] - The company is exploring opportunities to acquire additional dispatchable assets to enhance scale and diversify revenue streams [7] - Plans to evaluate the addition of natural gas co-firing capabilities at the Merum plant to provide fuel flexibility and manage operating expenses [8] Management's Comments on Operating Environment and Future Outlook - Management believes the trend of retiring dispatchable generators in favor of non-dispatchable resources will lead to energy market volatility, enhancing the value of their subsidiary, Howard Power [7] - The company expects to produce approximately 3.8 million tons of coal in 2025, with the potential to increase production if market conditions support it [11] - There is growing demand for reliable power, particularly as grid volatility increases, positioning the company well for sustained growth [12] Other Important Information - The company did not utilize its ATM program in the first quarter and has not used it since Q2 2024 [15] Q&A Session Summary Question: Regarding the exclusivity period with the initial counterparty - Management is evaluating whether to grant an extension for the exclusivity period or continue negotiations non-exclusively while considering other interests [20] Question: Final steps in negotiations with the initial counterparty - Most major points have been negotiated, and the focus is now on finalizing details with the hyperscaler and ensuring alignment among all parties [22] Question: Timing and capital intensity for co-firing with natural gas - The company is analyzing the feasibility of co-firing and expects to provide updates in the future, indicating that the project is very feasible [25] Question: Structure of long-term deals with hyperscalers - The negotiated structure for energy sales is on a unit contingent basis for over a decade in length [26]

Financial Data and Key Metrics Changes - Total operating revenue for Q1 2025 increased to $117.8 million compared to $94.8 million in Q4 2024 and $111.6 million in the prior year period [16] - Net income improved to $10 million in Q1 2025 from a net loss of $215.8 million in Q4 2024 and the prior year period [16] - Operating cash flow increased to $38.4 million in Q1 2025 from $32.5 million in Q4 2024 and $16.4 million in the prior year period [16] - Adjusted EBITDA rose significantly to $19.3 million in Q1 2025 from $6.2 million in Q4 2024 and $6.8 million in the prior year period [16] - Total bank debt was reduced to $23 million as of March 31, 2025, down from $44 million at the end of Q4 2024 and $77 million at the end of Q1 2024 [17] - Total liquidity increased to $69 million as of March 31, 2025, compared to $37.8 million at the end of Q4 2024 and $39.5 million at the end of Q1 2024 [17] Business Line Data and Key Metrics Changes - Electric sales for Q1 2025 increased to $85.9 million compared to $69.7 million in Q4 2024 and $60.7 million in the prior year period [15] - Coal sales were $54.8 million for Q1 2025, compared to $42.4 million in Q4 2024 and $66 million in the prior year period, reflecting a strategic reduction in coal production [15] Market Data and Key Metrics Changes - The forward power curves indicate increasing margins for energy produced at the Merum plant, with accredited capacity sold at prices exceeding $600 per megawatt day in the recent MISO auction [10] - Approximately 3 million megawatt hours have been contracted for the balance of 2025 at an average price of $37.20, and 3.4 million megawatt hours for 2026 at an average price of $44.43, reflecting strong market demand [11] Company Strategy and Development Direction - The company is focused on becoming a vertically integrated independent power producer, leveraging strong counterparty relationships to manage price volatility and demand fluctuations [5][6] - Ongoing negotiations with a leading global data center developer are progressing, with the potential for long-term energy supply agreements [6][7] - The company is exploring opportunities to acquire additional dispatchable assets to enhance scale and diversify revenue streams [8] - Plans to evaluate the addition of natural gas co-firing capabilities at the Merum plant to provide fuel flexibility and manage operating expenses [9] Management's Comments on Operating Environment and Future Outlook - Management believes that the trend of retiring dispatchable generators in favor of non-dispatchable resources will create volatility in energy markets, enhancing the value of their operations [8] - The company expects to produce approximately 3.8 million tons of coal in 2025, with the potential to increase production if market conditions support it [12] - There is growing demand for reliable power, particularly as grid volatility increases, positioning the company well for sustained growth [14] Other Important Information - The company did not utilize its ATM program in the first quarter and has not used it since Q2 2024 [17] - The company is optimistic about selling energy at higher prices in support of data center development and traditional wholesale customers beyond 2026 [11] Q&A Session Summary Question: Regarding the exclusivity period with the counterparty - Management is evaluating whether to grant an extension for the exclusivity period or continue negotiations non-exclusively while considering other interests [20][22] Question: Final steps in negotiations with the initial counterparty - Most major points have been negotiated, and the focus is now on finalizing details with the hyperscaler and ensuring alignment among all parties [24][25] Question: Timing and capital intensity for co-firing with natural gas - The company is analyzing the feasibility of co-firing and expects to provide updates in the future, with positive indications from contractors [26][28] Question: Structure of long-term deals with hyperscalers - The structure has been negotiated to be on a unit contingent basis for over a decade in length [30]

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of NET Power, Inc. regarding a class action lawsuit due to alleged misleading statements and failure to disclose critical information during the class period from June 9, 2023, to March 7, 2025 [1][3]. Summary by Relevant Sections Allegations - The complaint alleges that NET Power was unlikely to complete its first utility-scale plant, Project Permian, on schedule and that the project would be significantly more expensive than previously represented due to supply chain issues and various site-specific challenges [3]. - It is claimed that the projections regarding the time and capital needed to complete Project Permian were unrealistic, which could negatively impact the company's business and financial results [3]. - The public statements made by the defendants were materially false and misleading throughout the relevant period [3]. Class Action Details - The class period for the lawsuit is defined as June 9, 2023, to March 7, 2025, with a deadline for shareholders to register for the class action set for June 17, 2025 [3][4]. - Shareholders who register will be enrolled in a portfolio monitoring software to receive updates on the case's status [4]. Law Firm Background - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting the rights of investors who have suffered losses due to deceit, fraud, and illegal business practices [5]. - The firm aims to ensure that companies adhere to responsible business practices and seeks recovery for investors affected by misleading statements that led to artificial inflation of stock prices [5].