Spruce Power (US:SPRU)2021-05-18 00:11Financial Data and Key Metrics Changes - Revenues for Q1 2021 totaled approximately $700,000, down from $1.2 million in the prior year period, indicating a decline [23] - Gross loss for the quarter was approximately $700,000 compared to a gross loss of approximately $60,000 in the prior period [23] - Cash and cash equivalents at the end of Q1 2021 were approximately $404 million, up from $330 million in the previous quarter [25] - The company restated its financial statements to account for warrants as liabilities, which had no impact on historical or forward-looking cash flow and operations [26][27][28] Business Line Data and Key Metrics Changes - The acquisition of World Energy Efficiency Services is expected to enhance XL Fleet's charging infrastructure division, XL Grid, and is immediately accretive to the company [13][8] - The partnership with Dickinson Fleet Services expands the service network significantly, providing access to 700 mobile repair units and 800 technicians [16] Market Data and Key Metrics Changes - The company noted that commercial fleet orders follow a seasonal pattern, with significant revenue expected in the second half of the year [30] - Supply chain issues, including the ongoing COVID-19 pandemic and shortages in key production markets, continue to create uncertainty in the industry [29] Company Strategy and Development Direction - The acquisition of World Energy aligns with the company's strategy to provide comprehensive electrification solutions and remove barriers to adoption [9][11] - The company is focused on expanding its product offerings, including all-electric solutions and partnerships with companies like Curbtender for electrified refuse trucks [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improved visibility for the second half of the year as customers refresh their budgets in July [29] - There is a recognition of ongoing industry challenges, but the company remains committed to building the business and innovating new technologies [33] Other Important Information - The company is planning for growth by adding talent across various departments, including engineering, sales, and marketing [20] - Cielo Hernandez joined as Chief Financial Officer, bringing over 25 years of experience [21] Q&A Session Summary Question: Were there any new systems sold as part of the revenue? - Management indicated that they shipped a little over 30 systems in Q1, resulting in a modest increase in cumulative systems [36] Question: Will the combined entity pursue energy efficiency drivers? - Management clarified that World Energy focuses on smaller to medium-sized projects, which aligns with their electrification goals [38] Question: How should expectations for 2021 be framed relative to 2020? - Management expects a majority of revenue to be back-loaded in 2021, with significant pressures alleviating in the second half of the year [42] Question: How is the acquisition of World Energy expected to trend in 2021? - Management expressed confidence in World Energy's strong business and relationships, anticipating continued momentum [49] Question: What are the lead times for EV solutions? - Existing hybrid and plug-in hybrid systems have a lead time of 10 to 14 weeks, while EV solutions are still in product development with longer lead times [58]