Pineapple Energy Inc. (NASDAQ:PEGY) Q1 2023 Earnings Conference Call May 12, 2023 8:00 AM ET

Company Participants

Gary Dvorchak - The Blueshirt Group

Kyle Udseth - Chief Executive Officer

Eric Ingvaldson - Chief Financial Officer

Conference Call Participants

Donovan Schafer - Northland Capital Markets

Chip Moore - EF Hutton

Jeff Grampp - Alliance Global Partners

Operator

Good morning, and welcome to the Pineapple Energy First 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 now like to turn the call over to Gary Dvorchak of The Blueshirt Group. Mr. Dvorchak, please go ahead.

Gary Dvorchak

Thank you. Good morning, and welcome to Pineapple Energy's conference call to discuss results for the first quarter of 2023. With me today are Kyle Udseth, our Chief Executive Officer; and Eric Ingvaldson, our Chief Financial Officer.

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 our 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 disclosed in this call are reconciled to the U.S. GAAP equivalent and can be found in the press release that we issued last night.

With that, I'll turn the call over to our CEO, Kyle Udseth. Kyle, go ahead.

Kyle Udseth

Thanks, Gary, and thanks to everyone for joining us on the call today. Our first full quarter with SUNation was highly successful with strong results company-wide coming in ahead of our own internal plan. SUNation continued its momentum while HEC delivered a very solid quarter demonstrating great resiliency to quickly and fully recover from the December permitting challenges we spoke about on the last call. We entered the second quarter with great momentum in an integrated national business that is poised to continue both organic growth and acquisitions.

Let's start in Hawaii where we grew substantially versus both last year and last quarter on the key forward-looking metric of kilowatts sold. Installations declined sequentially, which is the normal seasonal pattern in Hawaii, but much more importantly, residential kilowatts installed in Q1 were up 14% versus Q1 of 2022, which is a great result that over delivered versus budget.