Charge Enterprises, Inc. (NASDAQ:CRGE) Q3 2023 Earnings Call Transcript

Leah Schweller: Thanks for the question. Obviously, no business is immune from macroeconomic challenges. We managed through these challenges every day, but it really comes down to our strong backlog. This, combined with diligently managing our cost structure, gives us confidence in our ability to not only deliver positive adjusted EBITDA for the first quarter of 2024, but for the full year.

Operator: The next question comes from Chris Pierce with Needham. You’re consistently hearing from the dealer community that they have too many EVs versus customer demand. Is this more of a short-term phenomenon within the longer-term adoption curve? How is this impacting Charge’s business in any way?

Craig Denson: Great question, Chris. Yes, there has been recent news in the automotive industry regarding this topic. While this is a shift from the initial aggressive stance on EV sales by the OEMs, we view it as a short-term consumer adoption issue. What I want to emphasize is that there remains a lack of EV charging infrastructure, which in part is impacting consumer adoption. We see ourselves as well positioned to be a solution to this problem. It is also important to note that we have a diversified portfolio of revenues. So in the event of a setback or pause in any single area of our business, we have other robust revenue streams that support the company.

Operator: We will now go to questions sent in by Jeff Grampp with Alliance Group. Can you provide an update on the M&A market and discuss whether or not you’re actively evaluating opportunities given other recent commentary about an inward focus?

Craig Denson: Our primary focus is on integrating Greenspeed and executing our strategic initiatives. Of course, we remain an optimistic approach when it comes to considering M&A opportunities that present themselves.

Operator: Is there an update you can provide on plans to address the near-term debt maturity?

Leah Schweller: Jeff, we are on track to fully pay the outstanding notes, which have an aggregate face value of $27.8 million on or before the maturity date of November 19, 2023.

Operator: Thank you both for the update on the Greenspeed integration. Is there an estimate for when that will be fully integrated?

Leah Schweller: The business integration is well underway. We are on track with our internal goal to complete our integration by Q3 of 2024. Paul and his team are fully immersed and are already identifying efficiencies and sales opportunities.

Operator: Ladies and gentlemen, that will conclude the question-and-answer session and Charge Enterprises Third Quarter 2023 Financial Webcast. We wish you a great day. Goodbye.