Good morning, and welcome to the Pineapple Energy third quarter 2023 conference call. As a reminder, today's call is being recorded. All participants are in a listen-only mode. For opening remarks and introductions, I would like to turn the call over to Eric Ingvaldson, CFO of Pineapple Energy. Mr. Ingvaldson, please go ahead. Thank you, Audra. Good morning, and welcome to Pineapple Energy's conference call to discuss results for the third quarter of 2023. With me today is Kyle Udseth, our Chief Executive Officer. This quarter, we also have the pleasure of being joined here at our Minnesota headquarters by Scott Maskin, a Pineapple Board Director and the founder of our SUNation business in New York State. Our call this morning will include statements that speak to the company's expectations, outlook, and predictions of the future, which are considered forward-looking statements. These forward-looking statements are subject to risks and uncertainties, many of which are beyond our control, which may cause our actual results to differ materially from those expressed in or implied by these statements. We are not obliged to revise or update any forward-looking statements except as may be required by law. Please refer to our disclosures regarding risk factors and forward-looking statements in today's earnings release and other SEC filings. A copy of our press release has been posted to the investor relations page of our website for reference. The non-GAAP financial measures discussed in this call are reconciled to the U.S. GAAP equivalent and can be found in the press release that we issued yesterday. With that, I will turn the call over to our CEO, Kyle Udseth. Kyle, please go ahead. Thanks, Eric, and thanks to everyone for joining us on the call this morning. We did push this back one hour this quarter, which I hope has given our West Coast participants the chance to grab a second cup of coffee. As always, we appreciate them joining so early. Today, I'm happy once again to share another strong quarter of operational and financial results from Pineapple Energy. But I won't say it came easy. This is my ninth year in rooftop solar, and I don't recall a more trying quarter for our industry broadly. I think you see the effects of that showing up in the earnings results so far of some of our larger public peers. But in spite of the macro challenges and headwinds, we were able to rally our Pineapple teams to deliver another quarter of positive Adjusted EBITDA. We kept a tight focus on disciplined execution and cost containment while sharpening the pencil on positive ROI growth investments. We'll share more detail in later sections, but in sum, both our Hawaii Energy Connection and SUNation businesses were able to grow gross profit dollars year-over-year in Q3, which is a huge accomplishment in this interest rate environment. While it's still only a cost center and not yet a revenue driver in its own right, we were also able to effectively contain corporate costs, beating budget while continuing to build up our shared services capabilities. We strive to keep improving every quarter, and our culture of high performance, data centricity, and accountability has never been stronger. Delivering results and hitting our goals will continue to be the focus in Q4 and into 2024. Now for a more detailed look at our performance, let's start in Hawaii, where Chris DeBone and his team turned in another excellent quarter. Revenue was up 6% Q3 year-over-year, but the real success story is gross profit increasing 40% year-over-year due to holding the line on pricing while realizing significant decreases in procurement cost. Battery attach rate remained at a tremendous 90%. This is so important as we continue building out the foundation for the grid of the future, where people can produce, store, and consume their own electricity. Due to the expense and the length of the trip, we don't get to spend as much time visiting HEC as we would like to do. I think it had been 18 months since the last time I'd been able to be out there with the team. But Eric and I did get the chance to go in October for a 2024 strategy and planning session, and it was just such a great reminder of how solid our team is there and how hard everyone works to help people go solar and save on their electric bills. And one place you see that reflected is in the referral rate. In Q3, 79% of our systems sold came via customer referrals, which is just a phenomenal number and a testament to the great customer experience that Chris and all of our HEC team deliver every day. Let's turn now to New York, where Scott Maskin and the team also delivered a strong quarter. Revenue was down 16% Q3 year-over-year, but that was against a very strong 2022 comp. Much more importantly, we managed to grow gross profit dollars by 1%, which is a solid result in such a challenging interest rate environment. This impressive result was possible because dealer fees, which are essentially loan origination fees, are included in the revenue number, and those have come down significantly as we've pivoted to new financing partners in the current aggressive interest rate environment. Then the other key driver is the significant decrease in product costs we were able to negotiate. Battery attach rates in New York were only 3% in the quarter, but we expect that to grow in 2024, when time-of-day rates are implemented in our Long Island market. When this happens, we'll be poised to capitalize by leveraging our years of experience and know-how from the Hawaii market. Forty percent of all New York sales in the quarter came from customer referrals, which is truly a great result. This number shows how strong of a job Scott and the whole team do at taking care of customers and delivering that great customer experience. As of quarter end, we have an estimated $40.7 million of probability-weighted installation backlog, giving us good visibility on revenue. Taken together with the revenue numbers we've already delivered through the first three quarters of the year, that backlog gives us continued confidence in our stated full-year revenue range of $80 million-$85 million. Additionally, while Eric will provide more details, I'll just state again here that we were able to deliver another quarter of positive Adjusted EBITDA, our third in a row, and so we're continuing to guide the positive Adjusted EBITDA for full year 2023. That's something we as a leadership team are extremely focused on and that I think is a big differentiator versus competitors.... On this and the last call, you've heard a lot of discussion on organic growth and bottom-line focus at our existing businesses, and that is our foundation, and it is really the support for the whole strategic platform of Pineapple. But the broader vision is absolutely still intact, to drive a roll-up and consolidation of leading local and regional, residential, and commercial solar companies, and we've made steady progress on that front as well. This current environment presents a tremendous buying opportunity for experienced and savvy consolidators who can find and integrate the right companies. With that, I'll now turn the call over to our CFO, Eric Ingvaldson, to walk through our financials in more detail. Eric, please go ahead. Thank you, Kyle. I will, I will review the GAAP financials as required by the SEC, and then review certain pro forma numbers that will give you a better sense of the year-over-year performance of our business. The GAAP numbers are less insightful because Q3 results last year included only the results of our Hawaii operations, and not the results of SUNation, which was acquired in the fourth quarter of 2022. Let's start with the third quarter 2023 GAAP results. Total revenue was $18.3 million, up $12.4 million or 211% from the third quarter of 2022. The increase in revenue was a result of the SUNation acquisition in Q4 of 2022 and organic growth in Hawaii. Total gross profit was $7 million, an increase of $5.6 million, or 401% year-over-year. Gross profit increased due to increased revenue and an improved gross profit margin. The gross profit margin improvements were a result of the SUNation acquisition and an improvement in equipment costs and financing fees. Total operating expenses were $8.6 million, an increase of $4.8 million, or 125% year-over-year. The increase in operating expenses was primarily a result of the SUNation acquisition in Q4 of 2022. Operating expenses in the third quarter of 2023 included $1.3 million of amortization and depreciation expense, $354,000 of stock-based compensation, and a $230,000 unfavorable fair value remeasurement of earn-out consideration. Operating loss in the third quarter was $1.6 million, a decrease of $859,000 and a 35% improvement over the prior year. Other expenses were $769,000, an increase of $650,000 from the prior year. Other expenses increased primarily due to an increase in interest expense due to debt financings closed in the second quarter, and a $240,000 unfavorable fair value remeasurement of the contingent value rights. Net loss from continuing operations attributable to common stockholders was $2.3 million, or a loss of $0.23 per diluted share in the third quarter of 2023. This was an 8% improvement from the net loss from continuing operations of $2.5 million in the third quarter of 2022, and a 32% improvement from a diluted loss per share of $0.34 in the third quarter of 2022. We will not comment on year-over-year U.S. GAAP results for the nine months ended September 30, as the comparable results aren't meaningful due to only three days of operations post-merger, with CSI represented in the first quarter of 2022. Now let's summarize the pro forma results, which assumes we owned SUNation and HEC for the full year in 2022. The pro forma year-over-year comparisons better represent the operational performance of the business versus growth as the result of acquisitions. Q3 pro forma revenue declined 10% compared to the prior year, with HEC revenue up 6% and SUNation revenue down 16%. Pro forma revenue declined 10% due to a 12% decline in residential revenue, offset by a 1% increase in commercial revenue and a 3% increase in service and other revenue. The decrease in residential revenue of 12% is a result of a decrease in residential kilowatts installed of 10%. The average price per residential kilowatt installed declined 3% due to the impact of lower equipment costs and financing fees on customer pricing. Q3 pro forma gross profit, however, increased 9% compared to the prior year, as reduction in equipment costs and financing fees outpaced the slight decline in average selling price of our installed systems, resulting in gross profit margin improvement. Q3 pro forma net loss increased by $2.1 million compared to the prior year, due to income from the employee retention credit of $1.9 million recognized at SUNation in the third quarter of 2022. Pro forma Adjusted EBITDA of $336,000, improved 156% from -$602,000 in the prior year. This improvement was achieved through growth, margin improvement, and operating leverage gained by closely managing the operating costs of the business. Year-to-date pro forma revenue was up 20% from $50.2 million last year to $60.2 million for the nine months ended September 30, 2023. Year-to-date pro forma Adjusted EBITDA of $1 million improved by $4.1 million, or 133%, from -$3.1 million in the prior year. Pro forma Adjusted EBITDA includes adjustments for fair value, remeasurement of earn-out consideration and Contingent Value Rights obligations, stock compensation, gain on sale of assets, impairment losses, and the Employee Retention Credit. ... We ended the quarter with cash available for Pineapple operations of $3.4 million, compared to $2.4 million available at the end of the second quarter. We had another $2.2 million of restricted cash and liquid investments, which is reserved for the CVR holders. Net cash generated from operating activities during the third quarter of $870,000 was the result of positive improvements in working capital. Notable changes in working capital were due to an increase in AP and customer deposits in the quarter, offset by an increase in other assets. Net cash used in financing activities for the quarter was $3.2 million, due to a $3 million payment to the contingent value rights holders, which reduced our restricted cash balance. Now, we would like to open the call for any questions. Operator, please go ahead. Thank you. At this time, I would like to remind everyone, in order to ask a question, press Star, then 1 on your telephone keypad. We'll go first to Donovan Schafer at Northland Capital Markets. Hey, guys. Thanks for taking the questions. I want to first ask about the Long Island, you know, time-of-use billing. Are you seeing anything? Do you have any sort of like, leading indicators that you track, whether it maybe quoting activity, or, you know, inbound interest? Anything that gives you a sense of whether you're already seeing signs of an uptick there, whether it's a battery or attachment inquiries, or, you know, new installs. And then, you know, with that or, or, or potentially in the absence of that, do you have a sense for 2024 of whether you expect that to have an impact earlier in the year or, or more towards the end of the year? Yeah, I mean, I would say the full answer is kinda in the absence of that, right? We are still going through 2024 budgeting right now, and so we haven't, like, fully put pen to paper on all this and the assumptions. I think it's going to be a build over time because they're chunking it out and like, how broadly it's rolled out and what tariffs or customer groups get it over time. So I think it's certainly gonna build up through the year. I don't know. We got Scott here, who probably knows more about this than all of us. I don't know, you got a point of view on this? Sure. So January first, you know, the rollout was slightly delayed for IT issues from the utility. January first, all new meters, new customers will be automatically enrolled in time-of-day rates, in LIPA territory. And, they'll be doing chunks throughout the rest of the year in probably 50,000, 60,000, 70,000-customer groups. That'll be—but the goal is, I believe, that by the end of 2024, the beginning of 2025, all 750,000 ratepayers will have to opt out of time-of-day rates. Yeah, and we were talking about this even just yesterday with Scott here, about how, starting next week, right? He's gonna be back in the office. We're gonna be through earnings release, earnings calls. We had a board meeting still to prep for, but it was one of the top priority items we set is let's make sure we get our analytics team, our sales leadership team together, and we start looking at our pricing book, we start looking at our sales materials, and we make sure that we've got the right training, the right talk tracks, the right pricing in place, to make sure that... You know, it's different, right? But you look at the NEM 3 market in California, and you look how that's evolved since, and you look at, you know, from what we're seeing, this real bifurcation in companies that were prepared for it and had expertise in-house and were savvy and were able to pivot and start selling in a post-NEM 3 world with, you know, solar plus battery storage, and then a lot who weren't. And we're gonna make sure that we're in the group who can, and I think it's a great opportunity to differentiate and separate and elevate yourselves and, and take share. And I think we've got a ton of experience, you know, 20 years in the market, in Long Island, helping customers there. And then, like we mentioned in the script, we've also got the expertise in Hawaii to draw on. So I'm confident that we'll have a great offering and be able to effectively present it to customers. But like, literally just yesterday, we were talking about how this becomes a priority right away. Okay, that's helpful. Thank you. And then turning to revenue, you know, you guys were down sequentially in Q2, and then you're down again in Q3. On the last call, we talked about how, you know, Q1 was at sort of an elevated level due to some of the pushouts from, you know, the Hawaii Building Department issue from late last year. But I wouldn't think that would kinda be a factor going from Q2 to Q3. I know you talked about that the... You know, and we know from all the other residential companies, it's certainly a challenging environment. So I guess the question is, sort of in light of all that, what gives you the confidence for Q4? You've got-- there's sort of the backlog there. Are you getting cases of anything getting canceled or pushed out, or is it what you're seeing there makes you feel like the timeline for the stuff that's in the backlog is firm and wouldn't slip from Q4 to Q1? Is it, is it skewed to CNI or something? What is it about all that, that makes you feel like feel confident, "Yep, it's there, and it's gonna land in Q4"? Yeah, you know, confidence is, I guess, all relative. I was thinking about this a little bit... when you give a guidance range, statistically speaking, what are you actually doing? You're trying to pick a midpoint, and you're trying to say, you know, it's plus or minus on this side, and it's within one standard deviation or two standard deviations or whatever, and what the confidence interval is. So it's never a slam dunk, obviously, but I think that we've got, you know, nine months closed out. We've got the backlog, like we mentioned, and we've got visibility in our CRMs and in our project management systems of what the install calendars look like, you know, in October and for November and December so far, and we can track that against historicals. And then in New York, there's also the CNI pipeline. So I think that we have good visibility and analytics into how the year is going to end, but it's not guaranteed. But, you know, there's downside, there's maybe also upside. You know, I think with 2024, like I said, we're going through the budgeting exercise still. And one of the things that we've been talking about lately is it's just a strange. It's a good thing, but it's a strange business to be in, or maybe a time in the business to be in a declining cost basis industry, right? Because it's great because it helps margins, it's great because it lowers prices for the end consumers, and it increases the value prop overall, but it kind of screws up how you think about revenue and what growth should look like, right? Because there's a number of jobs you do, or there's, you know, kilowatts installed. But if prices are going down, like, that could make it look like your revenue is flat or shrinking, even if that's, like, holding the line or growing. And so we're grappling with that a little bit into 2024, but it's why you—one of the reasons you heard us emphasize gross profit and gross profit dollars more on this call than we have before. I think we've really resolved kind of around to, at the end of the day, your prices go up, your prices go down, like, your costs go up, your costs go down, dealer fees go up, dealer fees go down. You know, you sell what you install, what you do. It all comes out in the wash of what, what are the actual, and not even the percentage, what are the actual quantity of gross profit dollars you generated? And then what was your OpEx? And, and that's, you know, your EBITDA. Scott was even saying yesterday, one of his colleagues, was it five years ago, made a shirt that said GMD on the front of it, gross margin dollars. I think I'm going to make a shirt like that and, you know, wear it to breweries on the weekend or something. But, yeah, I guess that's how we're, we're thinking about the rest of the quarter and, and what gives us confidence in that and, and the things we're working through on our 2024 budgeting. We'll take our next question from Jeff Grampp at Alliance Global Partners. Morning, guys, and appreciate the delay in the call an hour. Hey, Jeff. I know we come first when you guys think about planning things. Question on the margin performance. Now, that continues to be very strong. Is there any more room for growth there, given, you know, the tailwinds on the equipment pricing and hardware and things of that nature, or do you feel we're kind of topping out here around these levels? Well, let me go first, but and then I'll turn it over to Eric, and maybe even Scott has a perspective on it, too. Higher is better, right, in the short term, but I almost worry that our gross margins are starting to get too high, right? It's always that delicate balance of how are you priced relative to competitors and what's the price elasticity. And if you go a little bit lower on pricing and cede a little bit of gross margin, do you more than make that up in volume? Which is something we're going to look at. Our teams have done a tremendous job in both Hawaii and New York, and supported by some great corporate work on negotiating and realizing discounts in procurement. Certainly a trend across the industry, but I'm proud of what we've been able to accomplish on the cost basis on that. And so you see that come through. You know, we're - it's, again, to go back to just the 2024 budgeting, we're trying to form up a perspective on what we actually want the gross margin percentage to be, in 2024, and where the OpEx needs to be, and how that allows us to get 10% or higher EBITDA margin, at each of the operating businesses, and that's also a benchmark we look for at new companies to acquire. So I think there is continued room to drive cost out of the business and keep lowering the cost basis. And then the margin is kind of a question of what we want to do on pricing and what, where the elasticity is at. I don't know, Eric, what do you... Anything to add on to that? Yeah, I think that in today's kind of inflationary environment, consumers are used to costs increasing. So we've been able to maintain or just slightly reduce our selling prices while taking advantage of lowering, you know, equipment costs and dealer fees to enhance our margins, so that we are closely watching our market share numbers to make sure to see what our competitors are doing. We want to make sure that we're still competitive in each market that we're in. But so far, we've been able to maintain pricing and take advantage of lower equipment and financing costs to date. Okay. Yeah, no, I'm okay. Yeah. Great. Helpful. Thank you. And, for my follow-up, I'll ask the obligatory M&A question and just, get an update for what you guys are seeing in that, in that market. You know, it's, potentially opportunity-rich, but obviously a lot of macro uncertainty. So just wondering how you guys are thinking about, you know, potentially executing something in this market. We absolutely want to and remain focused on it, and the absence of announcing a closed deal this quarter and last quarter should not be interpreted to mean an absence of activity there. We've been incredibly active on it. It's a big part of what we focus on, and I think the, I'll say our pipeline is, well, the biggest, I don't know if this is the right term, the healthiest it's ever been, right? Because you start with a lot of companies entering the funnel, and then you get to know them more, you diligence them, and then you have a front-row seat to how they perform over time through good times and through some of the challenges more recently. And then it really shakes out, and you get a greater confidence level in who the right company is, the right fit for you, the best operators. I think we've made a ton of progress on that, and we're really excited about the short list of companies that I'd say are lower down in the funnel. It's a good time to be buying, right? I think if you can raise the money, and I think that it's the only silver lining of the massive drop in the stock prices and the public equity valuations of the solar companies, is that that trickles down to the valuations of the private companies as well. So if you're a consolidator, it's a great time to be buying, if you have confidence in your ability to identify and diligence the right companies and then go fundraise for it. I think we've mentioned this before, but in fundraising, the whole point of being public was to use stock to be able to be a currency in M&A and also to raise the cash for the cash consideration. With the stock price where it is right now, it's just too dilutive to do that, so that's not what we wanna do. So we're thinking about debt as the tool to do it. And I think it's why it's been so critical to get—I mean, when you're our size and starting out, every acquisition is critical, but the Hawaii acquisition was key because it was our first one. The SUNation acquisition was key because it tripled the size of the company and got the company to EBITDA positive and generating cash. And then that puts us in the position of the next acquisition is totally accretive and falls straight to the bottom line. Because we're looking at, healthy, well-run businesses that have strong bottom line and, and EBITDA, we think we can raise debt off of those multiples. So, so we have a few different capital-raising tools at our disposal. Great. Maybe just a quick follow-up on that. Kyle, are, are you seeing... You know, you guys, as you mentioned, you, you get mark to market every day, with, with the public equity. Private companies don't. Do you feel that there's a, a sufficient narrowing in terms of buyer-seller expectations to where there, there's transactions to be done, or does, does, some more market therapy need to kinda, you know, matriculate through on, on the private side? No, I think we're getting really good feedback. Like, we have constructive conversations with people. There are different value or consideration levers in a deal. Cash upfront, seller notes, earnouts, like, what the roles are of individuals going forward, stock, right? So there's a lot of different tools in the toolkit, and I think different sellers have different motivations or put different values on those things. So I think there's a lot of ways to negotiate in a mutually beneficial way. And I think in terms of just where overall multiples are at and where upfront cash consideration is at, I think the adjustment is there. We're at a really healthy place. And then as a public company, these acquisitions are probably gonna be material, and just the size you'd look at, and so there's an audit component that has to happen. There's a fundraising component that has to happen. But it's a good environment for doing what we're trying to do, I'd say. Okay, great. Thank you, guys, for the time. Thanks for joining. Thanks, Jeff. I'm seeing no more questions in the queue. Let me turn the call back to Mr. Udseth to conclude the call. Thank you, operator. Before we conclude, I wanted to mention a few upcoming events. Next Thursday, the 16th, Eric and I will be joining James West of Evercore for a virtual fireside chat at 2:00 P.M. Eastern. Then later this month, on November 30th, we'll be in New York for the Bank of America Flagship Renewables Conference, and we'll be joining Julian for a fireside chat at 4:00 P.M. Eastern. And then we'll be attending the Janney Clean Energy Investment Symposium in New Orleans, December 5th through the 7th. I know I'm gonna eat well on that one. It's an amazing food city. Definitely need to pack the running shoes for sure. We look forward to connecting with anyone who's able to attend those events, and please reach out to your contact at those firms if you'd like to schedule one-on-ones. Now, to conclude, speaking on behalf of the entire Pineapple leadership team, we're excited by the strong first three quarters the company has been able to deliver in 2023. Thanks to everyone listening to or reading this for your ongoing engagement. This past quarter has been a challenging operating environment and a tough time for pretty much everyone I know in the industry. It's hard when you see two huge oil companies both do $50 billion acquisitions while renewable stocks are kicking around five-year lows. We keep fighting the good fight and riding the solar coaster, and as higher interest rates pass through into ever-increasing utility rates in the next round of rate cases, while our equipment costs keep declining, our fundamental value proposition to homeowners is just going to continue to grow and grow. Thank you again for joining us this morning and for your continued support. If you have any questions, please contact Eric or me. This concludes our call today. You may all disconnect. Thank you.