Management Reiterates Guidance of Full Year
Revenue of $42 to $45 Million, Full year positive EPS;
Company Maintains $33.6 Million
Backlog after Record Revenue Quarter
FORT
LEE, N.J., Nov. 14, 2023 /PRNewswire/ -- Pioneer
Power Solutions, Inc. (Nasdaq: PPSI) ("Pioneer" or the "Company"),
a leader in the design, manufacture, service and integration of
electrical power systems, distributed energy resources, power
generation equipment and mobile electric vehicle ("EV") charging
solutions, today provided a business update and announced financial
results for the third quarter and nine months ended September 30, 2023.
Financial Highlights for the Third Quarter of 2023:
- Third quarter revenue was $12.4
million, up approximately 99.1% and a record for the Company
since divesting its transformer business units in August of 2019,
as compared to $6.3 million for the
third quarter of 2022.
- Third quarter gross profit was $3.7
million, or 29.8% of revenue, as compared to $861,000, or 13.8% of revenue for the third
quarter of 2022.
- Third quarter operating income was $953,000, as compared to an operating loss of
$1.4 million during the third quarter
of 2022, an improvement of $2.4
million.
- Third quarter net income was $1.0
million, or $0.10 per basic
and diluted share, compared to a net loss of $1.3 million, or negative $0.13 per basic and diluted share, for the same
period last year.
- Pioneer maintains consolidated backlog at $33.6 million at September
30, 2023, effectively unchanged from June 30, 2023.
- The Company ended the third quarter with $7.6 million of cash on hand and no bank
debt.
- The Company had $14.0 million of
net operating loss carryforwards as of September 30, 2023.
Nathan Mazurek, Pioneer's
Chairman and Chief Executive Officer, said, "The quarter's
financial results reflect the continued market penetration and
value proposition our suite of power solutions offer. E-Bloc
continues to benefit from the exponential growth of the distributed
generation market. Large industrial and commercial users of
electricity are addressing the grid's inability, or anticipated
inability, to meet their power consumption needs. In addition,
alternative power systems can also supplement their power needs
less expensively than their current utility rates. The market
success of E-Bloc has allowed us to attract additional
well-established engineering and construction firms, channel
partners and specialized distributors that integrate and position
E-Bloc as part of their larger solutions and offerings, opening up
even wider market access than we've experienced to date."
"And, after two years of awareness-building, our e-Boost product
platform is becoming synonymous with rapid mobile charging and is
seen as an integral solution for the electrification of EV
fleets and depots," added Mr. Mazurek. "Thus far in 2023, e-Boost
units have provided over 13,000 electric vehicle charges resulting
in over 200 MWh of mobile charging power provided across
the United States. Indeed, we
believe the commercial success of e-Boost year to date is just the
beginning of a decades-long energy transition opportunity."
"Both of our product platforms continue to evolve, as customers
encourage us to modify and expand the product lines," continued Mr.
Mazurek. "For example, we are modifying the E-Bloc architecture to
provide unitized substation solutions, essentially a
'grid-on-a-skid'. Additionally, we will be expanding our e-Boost
mobile charging solutions to offer zero emission alternatives to
propane, as well as more compact DC-DC charging solutions. These
variations are expected to further expand our addressable
market."
Third Quarter 2023 Financial Results
Revenue
Consolidated revenue for the three months ended September 30, 2023 was $12.4 million, an increase of approximately
99.1%, as compared to $6.3 million
during the third quarter of last year, primarily due to an increase
in sales of our power systems from our T&D Solutions segment
and an increase in sales of our equipment from our Critical Power
Solutions segment. Revenue from the T&D Solutions segment
increased approximately 155.8%, and revenue from the Critical Power
segment increased approximately 12.7% during the third quarter of
2023 as compared to the same period last year.
Gross Profit/Margin
Consolidated gross profit for the third quarter of 2023 was
$3.7 million, or 29.8% of revenue,
compared to $861,000, or 13.8% of
revenue, for the same period in 2022. The increase in consolidated
gross profit and margin is primarily due to higher revenue, driving
improved manufacturing utilization, a favorable sales mix and
reductions in input costs.
Operating Income (Loss)
For the three months ended September 30,
2023, income from operations was $953,000, as compared to a loss from operations
of $1.4 million during the third
quarter of 2022, a positive swing of $2.4
million. Increased revenue from both segments, a favorable
sales mix, reductions in input costs and improved productivity were
the primary factors in the Company generating nearly $1.0 million of operating income.
Net Income (Loss)
The Company's net income during the three months ended
September 30, 2023 was $1.0 million, or $0.10 per basic and diluted share, as compared to
a net loss of $1.3 million, or
negative $0.13 per basic and diluted
share, during the same period last year.
Year-to-Date 2023 Financial Results
Consolidated revenue for the nine months ended September 30, 2023 was $33.1 million, an increase of 89.3% when compared
to $17.5 million during the first
nine months of last year. Revenue from the T&D Solutions
segment increased approximately 145.4%, and revenue from the
Critical Power segment increased approximately 13.6%, during the
first nine months of 2023 as compared to the same period last
year.
Gross profit for the first nine months of 2023 was $8.6 million, or 26.1% of revenue, compared to
$1.8 million, or 10.6% of revenues,
for the same period last year, an improvement of $6.8 million.
Pioneer generated $631,000 of
operating income during the first nine months of 2023, as compared
to an operating loss of $4.8 million
during the first nine months of 2022, a positive swing of
$5.4 million. The Company's net
income for the first nine months of 2023 was $827,000, or $0.08
per basic and diluted share, compared to a net loss of $4.6 million, or negative $0.47 per basic and diluted share, during the
same period of 2022.
Balance Sheet
The Company had $7.6 million of
cash on hand, and working capital of $13.7
million, at September 30,
2023, compared to $10.3
million of cash on hand, and working capital of $14.1 million, at December
31, 2022. The Company had no bank debt at September 30, 2023.
2023 Outlook
Management reiterated expectations of total revenue between
$42 and $45
million in fiscal year 2023, or at least 50% over fiscal
year 2022. Management also expects to generate positive earnings
per share for the full fiscal year 2023.
The foregoing projected outlook constitutes forward-looking
information and is intended to provide information about
management's current expectations for the Company's 2023 fiscal
year. Although considered reasonable as of the date hereof, such
outlook and the underlying assumptions may prove to be inaccurate.
Accordingly, actual results could differ materially from the
Company's expectations as set forth herein. See "Forward-Looking
Statements".
In preparing the above outlook, the Company assumed, among other
things, (i) that the Company's backlog orders will translate into
revenue, (ii) that the Company will be able to satisfactorily
complete and deliver all orders and (iii) the timely payment by
customers for all billings. This section includes forward-looking
statements. See "Forward-Looking Statements".
Earnings Conference Call:
Management will host a conference call tomorrow, Wednesday, November 15, 2023 at 9 a.m. Eastern Time to discuss Pioneer's 2023
third quarter and nine months ended financial results with the
investment community.
Anyone interested in participating should call 1-877-423-9813 if
calling within the United States
or 1-201-689-8573 if calling internationally. When asked, please
reference confirmation code 13742491.
A replay will be available until Wednesday, November 22, 2023 which can be
accessed by dialing 1-844-512-2921 if calling within the United States or 1-412-317-6671 if calling
internationally. Please use passcode 13742491 to access the
replay.
The call will also be accompanied live by webcast over the
Internet and accessible at
https://viavid.webcasts.com/starthere.jsp?ei=1642142&tp_key=78f91c3915.
About Pioneer Power Solutions, Inc.
Pioneer Power Solutions, Inc. is a leader in the design,
manufacture, integration, refurbishment, service and distribution
of electric power systems, distributed energy resources, power
generation equipment and mobile EV charging solutions for
applications in the utility, industrial and commercial markets. To
learn more about Pioneer, please visit its website at
www.pioneerpowersolutions.com.
Forward-Looking Statements:
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, as amended. Such statements may be preceded by the words
"intends," "may," "will," "plans," "expects," "anticipates,"
"projects," "predicts," "estimates," "aims," "believes," "hopes,"
"potential" or similar words. Forward-looking statements are not
guarantees of future performance, are based on certain assumptions
and are subject to various known and unknown risks and
uncertainties, many of which are beyond the Company's control, and
cannot be predicted or quantified and consequently, actual results
may differ materially from those expressed or implied by such
forward-looking statements. Such risks and uncertainties include,
without limitation, risks and uncertainties associated with (i) the
Company's ability to successfully increase its revenue and profit
in the future, (ii) general economic conditions and their effect on
demand for electrical equipment, (iii) the effects of fluctuations
in the Company's operating results, (iv) the fact that many of the
Company's competitors are better established and have significantly
greater resources than the Company, (v) the Company's dependence on
two customers for a large portion of its business, (vi) the
potential loss or departure of key personnel, (vii) unanticipated
increases in raw material prices or disruptions in supply, (viii)
the Company's ability to realize revenue reported in the Company's
backlog, (ix) future labor disputes, (x) changes in government
regulations, (xi) the liquidity and trading volume of the Company's
common stock, (xii) an outbreak of disease, epidemic or pandemic,
such as the global coronavirus pandemic, or fear of such an event,
and (xiii) risks associated with litigation and claims, which could
impact our financial results and condition.
More detailed information about the Company and the risk factors
that may affect the realization of forward-looking statements is
set forth in the Company's filings with the Securities and Exchange
Commission, including the Company's Annual and Quarterly Reports on
Form 10-K and Form 10-Q, respectively. Investors and security
holders are urged to read these documents free of charge on the
SEC's web site at www.sec.gov. The Company assumes no obligation to
publicly update or revise its forward-looking statements as a
result of new information, future events or otherwise.
Contact:
Brett Maas,
Managing Partner
Hayden IR
(646) 536-7331
brett@haydenir.com
Tables Follow
PIONEER POWER
SOLUTIONS, INC.
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenues
|
$
|
12,443
|
|
$
|
6,251
|
|
$
|
33,080
|
|
$
|
17,476
|
Cost of goods
sold
|
|
8,732
|
|
|
5,390
|
|
|
24,445
|
|
|
15,629
|
Gross profit
|
|
3,711
|
|
|
861
|
|
|
8,635
|
|
|
1,847
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
2,758
|
|
|
2,305
|
|
|
8,004
|
|
|
6,636
|
Total operating
expenses
|
|
2,758
|
|
|
2,305
|
|
|
8,004
|
|
|
6,636
|
Income (loss) from
operations
|
|
953
|
|
|
(1,444)
|
|
|
631
|
|
|
(4,789)
|
Interest
income
|
|
(60)
|
|
|
(116)
|
|
|
(192)
|
|
|
(322)
|
Other (income) expense,
net
|
|
(11)
|
|
|
(17)
|
|
|
(4)
|
|
|
112
|
Income (loss) before
income taxes
|
|
1,024
|
|
|
(1,311)
|
|
|
827
|
|
|
(4,579)
|
Income tax
expense
|
|
-
|
|
|
-
|
|
|
-
|
|
|
7
|
Net income
(loss)
|
$
|
1,024
|
|
$
|
(1,311)
|
|
$
|
827
|
|
$
|
(4,586)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.10
|
|
$
|
(0.13)
|
|
$
|
0.08
|
|
$
|
(0.47)
|
Diluted
|
$
|
0.10
|
|
$
|
(0.13)
|
|
$
|
0.08
|
|
$
|
(0.47)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
10,010,226
|
|
|
9,769,545
|
|
|
9,896,850
|
|
|
9,713,335
|
Diluted
|
|
10,250,099
|
|
|
9,769,545
|
|
|
10,049,009
|
|
|
9,713,335
|
PIONEER POWER
SOLUTIONS, INC.
|
|
|
|
Consolidated Balance
Sheets
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash
|
$
|
7,581
|
|
$
|
10,296
|
Accounts receivable,
net
|
|
8,936
|
|
|
11,139
|
Inventories
|
|
8,280
|
|
|
8,748
|
Prepaid expenses and
other current assets
|
|
5,518
|
|
|
2,853
|
Total current
assets
|
|
30,315
|
|
|
33,036
|
Property and equipment,
net
|
|
3,775
|
|
|
1,800
|
Operating lease
right-of-use assets
|
|
936
|
|
|
1,450
|
Financing lease
right-of-use assets
|
|
458
|
|
|
727
|
Deferred financing
costs
|
|
195
|
|
|
-
|
Other assets
|
|
82
|
|
|
162
|
Total assets
|
$
|
35,761
|
|
$
|
37,175
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
9,772
|
|
$
|
7,239
|
Current portion of
operating lease liabilities
|
|
704
|
|
|
703
|
Current portion of
financing lease liabilities
|
|
157
|
|
|
355
|
Deferred
revenue
|
|
5,980
|
|
|
10,665
|
Total current
liabilities
|
|
16,613
|
|
|
18,962
|
Operating lease
liabilities, non-current portion
|
|
276
|
|
|
797
|
Financing lease
liabilities, non-current portion
|
|
320
|
|
|
418
|
Other long-term
liabilities
|
|
53
|
|
|
65
|
Total
liabilities
|
|
17,262
|
|
|
20,242
|
Stockholders'
equity
|
|
|
|
|
|
Preferred stock, $0.001
par value, 5,000,000 shares authorized; none issued
|
|
-
|
|
|
-
|
Common stock, $0.001
par value, 30,000,000 shares authorized;
9,930,022 and 9,644,545 shares issued and outstanding on September
30, 2023 and December 31, 2022, respectively
|
|
10
|
|
|
10
|
Additional paid-in
capital
|
|
33,612
|
|
|
32,859
|
Accumulated other
comprehensive income
|
|
-
|
|
|
14
|
Accumulated
deficit
|
|
(15,123)
|
|
|
(15,950)
|
Total stockholders'
equity
|
|
18,499
|
|
|
16,933
|
Total liabilities and
stockholders' equity
|
$
|
35,761
|
|
$
|
37,175
|
PIONEER POWER
SOLUTIONS, INC.
|
|
|
|
Consolidated
Statements of Cash Flows
|
|
|
|
|
|
(In
thousands)
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
September
30,
|
|
2023
|
|
2022
|
Operating
activities
|
|
|
|
|
|
Net income
(loss)
|
$
|
827
|
|
$
|
(4,586)
|
Adjustments to
reconcile net income (loss) to net cash used in operating
activities:
|
|
|
|
|
|
Depreciation
|
|
370
|
|
|
113
|
Amortization of
right-of-use financing leases
|
|
269
|
|
|
177
|
Amortization of imputed
interest
|
|
-
|
|
|
(321)
|
Amortization of
right-of-use operating leases
|
|
514
|
|
|
495
|
Change in receivable
reserves
|
|
80
|
|
|
(140)
|
Stock-based
compensation
|
|
1,246
|
|
|
859
|
Other
|
|
(15)
|
|
|
-
|
Changes in current
operating assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
1,805
|
|
|
(1,253)
|
Inventories
|
|
468
|
|
|
(4,319)
|
Prepaid expenses and
other assets
|
|
(2,990)
|
|
|
167
|
Income taxes
|
|
(4)
|
|
|
24
|
Accounts payable and
accrued liabilities
|
|
2,407
|
|
|
1,141
|
Deferred
revenue
|
|
(4,685)
|
|
|
4,198
|
Operating lease
liabilities
|
|
(520)
|
|
|
(491)
|
Net cash used in
operating activities
|
|
(228)
|
|
|
(3,936)
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
Purchases of property
and equipment
|
|
(2,345)
|
|
|
(391)
|
Net cash used in
investing activities
|
|
(2,345)
|
|
|
(391)
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
Net proceeds from the
exercise of options for common stock
|
|
50
|
|
|
17
|
Net proceeds from
issuance of common stock
|
|
177
|
|
|
-
|
Payment of deferred
financing costs
|
|
(73)
|
|
|
-
|
Principal repayments of
financing leases
|
|
(296)
|
|
|
(179)
|
Net cash used in
financing activities
|
|
(142)
|
|
|
(162)
|
|
|
|
|
|
|
Decrease in
cash
|
|
(2,715)
|
|
|
(4,489)
|
Cash, beginning of
period
|
|
10,296
|
|
|
11,699
|
Cash, end of
period
|
$
|
7,581
|
|
$
|
7,210
|
|
|
|
|
|
|
Non-cash investing
and financing activities:
|
|
|
|
|
|
Acquisition of
right-of-use assets and lease liabilities
|
$
|
-
|
|
$
|
551
|
Deferred financing
costs included in accounts payable and accrued
liabilities
|
|
122
|
|
|
-
|
Surrender and
retirement of common stock
|
|
720
|
|
|
-
|
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SOURCE Pioneer Power Solutions, Inc.