FTC Solar, Inc. (NASDAQ:FTCI) Q4 2023 Earnings Call Transcript

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Ahmad Chatila: Thank you, Donovan. This is Ahmad again. What we see is a more contracted than before. That’s what we see. I mean, let me make a statement about infrastructure projects. By default, they are never on time. But we do not want to use that excuse. Our problem is, we’re a smaller company and because of that we get a lot of whiplash because we’re smaller and subscale. And as we increase our bookings, all the time and get to hopefully 150 million a month, then our forecasting will become much, much better. So that’s our issue. But what happened since last time is, we have a lot more contracted than before. So we are more confident right now than the last time that we did the forecast.

Donovan Schafer: Okay. Thank you. That’s helpful. All right. I’ll take the rest of my questions offline.

Operator: Thank you. [Operator Instructions] Our next question comes from Amit Dayal of H.C. Wainwright. Your line is open.

Amit Dayal: Most of my questions have been asked, but I just wanted to touch on the backlog number. In the footnotes in the press release, you indicate some of the backlog is verbal. Just wanted to understand what the extent of the backlog in that number is from the verbal side of things. And what are the triggers that convert this backlog into contracted orders?

Patrick Cook: Yes, we didn’t break it out by what verbal and what’s not. I mean, I think the disclosure we put in here was really more tied to the purchase orders and 415 million of the 1.7 billion has purchase orders associated with it. The way we look at the rest of the backlog is through LOIs or not — or LOIs or verbal agreements in which we check with their customers on a monthly and quarterly basis to make sure these projects are progressing. A lot of this is [indiscernible] working with the customers to define the delivery schedules they’re getting models. Some of these projects we talked about in previous quarters are 2025 NTP type projects that are out into the future as well. So there’s a little bit of mix and breakdown as it relates to that.

Amit Dayal: Okay. Thank you for that. And maybe just the last one for me. As you sort of get into a recovery phase, revenue starts climbing, et cetera, to the 50 million plus levels, how do you feel with respect to your working capital situation to sort of meet that level of demand with what your balance sheet looks like right now?

Cathy Behnen: Yes. And I think that we’re managing our working capital and I think we have sufficient working capital to meet the ramps that we have that we see in the back half of the year. We really look at managing the cash. We look at the fact that we have moved that and we look at the fact that, we have significantly more receivables than we have payables and we continue to manage that. Our project we look at from a cash flow positive approach in terms of deposits that we received from customers. So it really helps us to manage through working capital needs.

Operator: Thank you. I’m showing no further questions at this time. Ladies and gentlemen, this does include today’s conference. Thank you all for participating. You may now disconnect. Have a great day.

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