TPI Composites, Inc. (NASDAQ:TPIC) Q2 2023 Earnings Call Transcript

Julien Dumoulin Smith: Yes. Okay. So that’s actually still in play here in the near or medium term.

Bill Siwek: Yes.

Julien Dumoulin Smith: In your discussions are ongoing?

Bill Siwek: Ongoing discussions with multiple parties, yes.

Julien Dumoulin Smith: Okay. All right. But is that a this year thing at this point given the push out?

Bill Siwek: I’m sorry, is that what? Oh this year?

Julien Dumoulin Smith: Is that 2023 issue?

Bill Siwek: I don’t think it was ever a – I mean it’s, as far as building a facility, no, as far as identifying, we’re in that process right now. So yes, I mean, is it possible that something gets announced before the end of the year. Certainly, my guess it’s probably more of a late 2023 or 2024 time frame.

Julien Dumoulin Smith: Got it. Sorry, I didn’t mean to press you too much on that.

Bill Siwek: It’s alright.

Julien Dumoulin Smith: And to clarify earlier, Nordex, the payment there offsets the dividend payment. If I heard that right?

Bill Siwek: Yes. What we’re losing in that factory today is essentially equivalent to what the dividend payment will be for Oaktree next year.

Julien Dumoulin Smith: Right. Or said differently, the liquidity that Nordex is paying you is effectively equivalent?

Bill Siwek: I’m sorry, say that again.

Julien Dumoulin Smith: The Nordex, the compensation is effectively equivalent at that point?

Ryan Miller: Yes, that’s correct, Julien. We get back in 2024 at a pace that we’re pretty close to breakeven. So the losses we experienced last year and this year, which were about $40 million a year, about $10 million kind of run rate a quarter. That effectively ends beginning January 1, 2024.

Julien Dumoulin Smith: Well, thank you guys. Sorry for all the questions.

Bill Siwek: Yes. Thanks. No problem.

Operator: Bill, there are no further questions at this time. Please proceed with your closing remarks.

Bill Siwek: Sorry, I had a sip of water. Thanks again for your time today and continued interest in support of TPI. I look forward to speaking with you again shortly and next quarter. Thank you.

Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for joining, and you may now disconnect your lines. Thank you.