Array Technologies, Inc. (NASDAQ:ARRY) Q3 2022 Earnings Conference Call November 8, 2022 5:00 PM ET
Company Participants
Cody Mueller - Vice President of Finance & Investor Relations
Kevin Hostetler - Chief Executive Officer
Nipul Patel - Chief Financial Officer
Conference Call Participants
Brian Lee - Goldman Sachs
Mark Strouse - JPMorgan
Philip Shen - ROTH Capital Partners
Martin Malloy - Johnson Rice
Donovan Schafer - Northland Capital Markets
Maheep Mandloi - Credit Suisse
Kashy Harrison - Piper Sandler
Joseph Osha - Guggenheim
Jeff Osborne - Cowen & Company
Operator
Hello and welcome to the Array Technologies Third Quarter 2022 Earnings Call. question-and-answer session will follow the formal presentation. It is now my pleasure to turn the call over to Cody Mueller, Array Technologies. Please go ahead, sir.
Cody Mueller
Good evening and thank you for joining us on today's conference call to discuss Array Technologies third quarter 2022 results. Slides for today's presentation are available on the Investor Relations section of our website, arraytecinc.com.
During this conference call, management will make forward-looking statements based on current expectations and assumptions which are subject to risks and uncertainties. Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect. We identify the principal risks and uncertainties that may affect our performance in our reports and filings with the Securities and Exchange Commission which can also be found on our Investor Relations website. We do not undertake any duty to update any forward-looking statements. Today's presentation also includes references to non-GAAP financial measures. You should refer to the information contained in the company's third quarter press release for definitional information and reconciliations of historical non-GAAP measures to the comparable GAAP financial measures. Earlier today, the company filed an 8-K and an amended Form 10-Q for the quarter ended June 30, 2022. The restatement was due to an accounting error caused by a clerical error in the sales order entry process for contract value which overstated revenue and gross profit as well as a consolidation error that understated the reclassification of personnel costs from general and administrative to cost of revenue.
The total income statement of impact of these 2 errors for the 3 and 6 months ended June 30, 2022, was a reduction of revenue and adjusted EBITDA of $5.1 million, a reduction of gross profit of $7.4 million, a reduction of G&A expense of $2.4 million and a reduction of net income of $2.4 million. These errors had no impact on the company's previously reported cash flow from operations and does not cause noncompliance with any financial covenants as of June 30. Any reference to the quarter or 6 months ended June 30, 2022, in today's conference call and on our accompanying presentation reflects the restated values. For more information regarding these errors, please refer to the appendix of our accompanying presentation as well as the Form 8-K and the explanatory note in our Form 10-Q.