Management Reiterates Guidance of Full Year
Revenue of $42 to $45 Million, Full year positive EPS;
Company Maintains $37.2 Million
Backlog with Strong Quarterly Revenue Growth
FORT
LEE, N.J., May 15, 2023 /PRNewswire/ -- Pioneer
Power Solutions, Inc. (Nasdaq: PPSI) ("Pioneer", "Pioneer Power" 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 first quarter ended
March 31, 2023.
Financial Highlights for the First Quarter of 2023:
- First quarter revenue increased approximately 34% to
$8.5 million, as compared to
$6.4 million for the first quarter of
2022.
- Pioneer's total backlog at March 31,
2023 was $37.0 million, up
$13.4 million (or 57%) when compared
to $23.6 million at March 31, 2022, and essentially flat compared to
Pioneer's ending backlog at December 31,
2022.
- First quarter gross profit increased significantly to
$2.2 million, or a 26.0% gross
margin, which is a 1,150 basis point improvement when compared to a
gross margin of 14.5%, or gross profit of $923,000, for the first quarter of 2022.
- First quarter total operating income was $55,000, compared to an operating loss of
$823,000 in the first quarter of last
year.
- First quarter net income was $122,000, or $0.01
per basic and diluted share, compared to a net loss of $740,000, or $(0.08) per basic and diluted share, for the same
period last year.
- The Company had cash on hand of $11.6
million at March 31, 2023, up
approximately 12% from $10.3 million
of cash on hand at December 31,
2022.
- The Company had $14.3 million of
net operating loss carryforwards at March
31, 2023.
Nathan Mazurek, Pioneer's
Chairman and Chief Executive Officer, said, "Supported by surging
demand and an increasingly strong competitive position, Pioneer
Power continued its momentum in the first quarter, delivering
year-over-year revenue growth of more than $2.1 million, a near doubling of our gross
margins and a positive swing of more than $870,000 in net income. Higher gross margins and
continued expense management enabled us to deliver GAAP
profitability and positive earnings per share on $8.5 million in revenue, further demonstrating
that we have reached a key inflection point for our profitability.
This performance, which builds upon the strong financial results
from the fourth quarter, demonstrates that we are well on our way
to achieving our full-year growth targets of 50% or better.
Encouragingly, we essentially maintained our backlog at
approximately $37.0 million even
while delivering 34% top-line growth, supporting our optimism for
continued growth."
"Our distinct products provide competitive and highly
differentiated solutions to large and underserved needs," continued
Mr. Mazurek. "We are well aligned with two durable, secular
catalysts, distributed generation technology and the rapid
electrification of the transportation system- and our solutions
give our customers greater resilience, lower emissions, ultimate
portability and reduced energy costs. During the first quarter, we
provided our e-Boost system to a major northeastern transportation
agency, facilitating on-demand charging of electric shuttle busses
and other vehicles, providing yet another use-case for e-Boost.
These trends, combined with improving commercial execution and
increased market awareness, should fuel sustained growth for the
foreseeable future. We expect to recognize between $42 and $45 million
in total revenue for 2023, representing at least 50% topline
growth."
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
recorded sales, (ii) that the Company will be able to
satisfactorily complete and deliver all orders and (iii) the timely
payment by customers for all order. This section includes
forward-looking statements. See "Forward-Looking Statements".
First Quarter 2023 Financial Results
Revenue
Total revenue for the three months ended March 31, 2023 was $8.5
million, an increase of approximately 33.7%, as compared to
$6.4 million during the first quarter
of last year primarily due to an increase in sales of our E-Bloc
power systems and automatic transfer switches. Revenue from the
T&D Solutions segment increased approximately 54.7%, and
revenue from the Critical Power segment increased approximately
4.1% during the first quarter of 2023 as compared to the same
period last year.
Gross Profit/Margin
Total gross profit for the first quarter of 2023 was
$2.2 million, or a 26.0% gross
margin, compared to gross profit of $923,000, or a 14.5% gross margin, for the same
period in 2022. The increase in gross profit and margin is
primarily due to higher revenue, driving improved manufacturing
utilization, and a favorable sales mix of higher margin E-Bloc
power systems and automatic transfer switches.
Operating Income (Loss)
For the three months ended March 31,
2023, operating income was $55,000 as compared to an operating loss of
$823,000 during the first quarter of
2022. The $878,000 improvement to
operating income is primarily due to revenue growth and improved
productivity from our manufacturing facility, even as the company
continued to invest in its strategic initiatives, e-Boost and
E-Bloc.
Net Income (Loss)
The Company's net income was $122,000, or $0.01
per basic and diluted share, for the three months ended
March 31, 2023, as compared to a net
loss of $740,000, or $(0.08) per basic and diluted share, during the
three months ended March 31,
2022.
Balance Sheet
At March 31, 2023, the Company had
$11.6 million of cash on hand and
working capital of $14.3 million,
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 on the balance sheet at March 31, 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.
Earnings Conference Call:
Management will host a conference call today, Monday, May 15, 2023, at 4:30 p.m. Eastern Time to discuss Pioneer's 2023
first quarter financial results with the investment community.
Anyone interested in participating should call 1-877-300-8521 if
calling within the United States
or 1-412-317-6026 if calling internationally. When asked, please
reference confirmation code 10178731.
A replay will be available until May 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
10178731 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=1613402&tp_key=2126bcaa44.
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 and (xii) an outbreak of disease, epidemic or
pandemic, such as the global coronavirus pandemic, or fear of such
an event.
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
|
|
March
31,
|
|
2023
|
|
2022
(Revised)
|
Revenues
|
$
|
8,507
|
|
$
|
6,362
|
Cost of goods
sold
|
|
6,294
|
|
|
5,439
|
Gross profit
|
|
2,213
|
|
|
923
|
Operating
expenses
|
|
|
|
|
|
Selling, general and
administrative
|
|
2,158
|
|
|
1,746
|
Total operating
expenses
|
|
2,158
|
|
|
1,746
|
Income (loss) from
operations
|
|
55
|
|
|
(823)
|
Interest
income
|
|
(54)
|
|
|
(101)
|
Other (income) expense,
net
|
|
(13)
|
|
|
11
|
Income (loss) before
taxes
|
|
122
|
|
|
(733)
|
Income tax
expense
|
|
-
|
|
|
7
|
Net income
(loss)
|
$
|
122
|
|
$
|
(740)
|
|
|
|
|
|
|
Income (loss) per
share:
|
|
|
|
|
|
Basic
|
$
|
0.01
|
|
$
|
(0.08)
|
Diluted
|
$
|
0.01
|
|
$
|
(0.08)
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
Basic
|
|
9,769,545
|
|
|
9,640,545
|
Diluted
|
|
9,769,565
|
|
|
9,640,545
|
PIONEER POWER
SOLUTIONS, INC.
Consolidated Balance Sheets
(In thousands, except per share amounts)
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash
|
$
|
11,556
|
|
$
|
10,296
|
Accounts receivable, net
|
|
7,863
|
|
|
11,139
|
Inventories
|
|
9,589
|
|
|
8,748
|
Prepaid expenses and other current assets
|
|
2,900
|
|
|
2,853
|
Total current assets
|
|
31,908
|
|
|
33,036
|
Property and equipment,
net
|
|
1,863
|
|
|
1,800
|
Operating lease
right-of-use assets
|
|
1,281
|
|
|
1,450
|
Financing lease
right-of-use assets
|
|
655
|
|
|
727
|
Other assets
|
|
150
|
|
|
162
|
Total assets
|
$
|
35,857
|
|
$
|
37,175
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
$
|
6,485
|
|
$
|
7,239
|
Current portion of operating lease liabilities
|
|
718
|
|
|
703
|
Current portion of financing lease liabilities
|
|
316
|
|
|
355
|
Deferred revenue
|
|
10,095
|
|
|
10,665
|
Total current
liabilities
|
|
17,614
|
|
|
18,962
|
Operating lease
liabilities, non-current portion
|
|
612
|
|
|
797
|
Financing lease
liabilities, non-current portion
|
|
386
|
|
|
418
|
Other long-term
liabilities
|
|
61
|
|
|
65
|
Total liabilities
|
|
18,673
|
|
|
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;
9,769,545 and 9,644,545 shares issued and
outstanding on March 31, 2023 and December 31,
2022, respectively
|
|
10
|
|
|
10
|
Additional paid-in capital
|
|
33,002
|
|
|
32,859
|
Accumulated other comprehensive income
|
|
-
|
|
|
14
|
Accumulated deficit
|
|
(15,828)
|
|
|
(15,950)
|
Total stockholders'
equity
|
|
17,184
|
|
|
16,933
|
Total liabilities and
stockholders' equity
|
$
|
35,857
|
|
$
|
37,175
|
PIONEER POWER
SOLUTIONS, INC.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2023
|
|
2022
(Revised)
|
Operating
activities
|
|
|
|
|
|
Net income
(loss)
|
$
|
122
|
|
$
|
(740)
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation
|
|
130
|
|
|
36
|
Amortization of
right-of-use financing leases
|
|
73
|
|
|
51
|
Amortization of imputed
interest
|
|
-
|
|
|
(107)
|
Amortization of
right-of-use operating leases
|
|
169
|
|
|
163
|
Change in receivable
reserves
|
|
13
|
|
|
28
|
Stock-based
compensation
|
|
143
|
|
|
57
|
Other
|
|
(14)
|
|
|
-
|
Changes in current
operating assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
3,275
|
|
|
(1,743)
|
Inventories
|
|
(841)
|
|
|
(2,527)
|
Prepaid expenses and
other assets
|
|
(57)
|
|
|
(478)
|
Income taxes
|
|
2
|
|
|
19
|
Accounts payable and
accrued liabilities
|
|
(750)
|
|
|
2,920
|
Deferred
revenue
|
|
(570)
|
|
|
4,569
|
Operating lease
liabilities
|
|
(170)
|
|
|
(161)
|
Net cash provided by
operating activities
|
|
1,525
|
|
|
2,087
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
Purchases of property
and equipment
|
|
(194)
|
|
|
(112)
|
Net cash used in
investing activities
|
|
(194)
|
|
|
(112)
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
Net proceeds from the
exercise of options for common stock
|
|
-
|
|
|
17
|
Principal repayments of
financing leases
|
|
(71)
|
|
|
(48)
|
Net cash used in
financing activities
|
|
(71)
|
|
|
(31)
|
|
|
|
|
|
|
Increase in
cash
|
|
1,260
|
|
|
1,944
|
Cash, beginning of
period
|
|
10,296
|
|
|
11,699
|
Cash, end of
period
|
$
|
11,556
|
|
$
|
13,643
|
|
|
|
|
|
|
Non-cash investing
and financing activities:
|
|
|
|
|
|
Acquisition of
right-of-use assets and lease liabilities
|
|
-
|
|
|
156
|
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SOURCE Pioneer Power Solutions, Inc.