Management Reiterates Guidance of Full Year
Revenue of $42 to $45 Million, Full year positive EPS;
Company Maintains $33.6 Million
Backlog
FORT
LEE, N.J., Aug. 14, 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 second quarter and six months
ended June 30, 2023.
Financial Highlights for the Second Quarter of 2023:
- Second quarter revenue increased approximately 149% to a record
(since divesting the transformer business in 2019) of $12.1 million, as compared to $4.9 million for the second quarter of 2022.
- Pioneer's total backlog at June 30,
2023 was $33.6 million
compared to $24.3 million at
June 30, 2022, and $37.2 million at December
31, 2022.
- Second quarter gross profit was $2.7
million, or a 22.4% gross margin, as compared to a gross
profit of $63,000, or a 1.3% gross
margin, for the second quarter of 2022.
- Second quarter total loss from operations was $378,000, which is inclusive of $819,000 in one-time non-cash stock-based
compensation, compared to an operating loss of $2.5 million (inclusive of $658,000 in one-time non-cash stock-based
compensation) in the second quarter of last year.
- Excluding the one-time non-cash stock-based compensation,
Pioneer Power generated income from operations of approximately
$441,000 during the second quarter of
2023, as compared to an operating loss of $1.9 million (excluding one-time non-cash
stock-based compensation) during the second quarter of last
year.
- Second quarter net loss was $319,000, or $(0.03) per basic and diluted share, compared to
a net loss of $2.5 million, or
$(0.26) per basic and diluted share,
for the same period last year.
- Excluding one-time non-cash stock-based compensation for both
periods, the Company generated approximately $0.05 in earnings per share compared to
$(0.19) of negative earnings per
share during the second quarter of 2022.
- The Company had cash on hand of $9.6
million at June 30, 2023
compared to $10.3 million at
December 31, 2022.
- The Company had $14.2 million of
net operating loss carryforwards at June 30,
2023.
Nathan Mazurek, Pioneer's
Chairman and Chief Executive Officer, said, "Both our E-Bloc and
e-Boost businesses continue to grow at a rapid pace, with steady
margin expansion, supporting our expectations for at least 50%
revenue growth and positive earnings per share for the full-year.
Excluding one-time non-cash stock-based compensation, we were
profitable during the second quarter, marking the third consecutive
quarter of operational profitability. We are reiterating our
full-year guidance and we have significant momentum as we head into
2024. This progress comes even as we invested approximately
$1.4 million in our new e-Boost
solutions during the first half of the year to drive further
growth."
"We continue to see new and expanding use-cases for E-Bloc, as
we provide a flexible solution to enable distributed generation
with the use of renewable energy sources such as solar and
convenience EV charging," continued Mr. Mazurek. "We expect to
deliver continued growth from both E-Bloc and e-Boost in the
second-half of 2023 compared to the first half. Our critical power
segment, and specifically e-Boost, should deliver incremental
revenue growth in the second half of the year as we continue to
invest in this innovative solution to drive market awareness. We
are seeing strong demand from owners of bus fleets, trucks, and
autonomous driving solutions. Electrification initiatives, and the
government grants to support fleet electrification, are serving as
powerful catalysts for e-Boost."
Second Quarter 2023 Financial Results
Revenue
Total revenue for the three months ended June 30, 2023 was $12.1
million, an increase of approximately 149.4%, as compared to
$4.9 million during the second
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
263%, and revenue from the Critical Power segment increased
approximately 25% during the second quarter of 2023 as compared to
the same period last year.
Gross Profit/Margin
Total gross profit for the second quarter of 2023 was
$2.7 million, or a 22.4% gross
margin, compared to gross profit of $63,000, or a 1.3% 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 power
systems and generation equipment.
Operating Income (Loss)
For the three months ended June 30,
2023, loss from operations was $378,000, as compared to an operating loss of
$2.5 million during the second
quarter of 2022. Included in the operating loss for the second
quarter of 2023 was $819,000 of
non-cash stock-based compensation, as well as continued investment
in marketing, manufacturing capacity and inventory to support our
strategic initiatives. The second quarter of 2022 included
approximately $658,000 of non-cash
stock-based compensation. Excluding the one-time non-cash
stock-based compensation expense, Pioneer Power generated
approximately $441,000 in operating
income during the second quarter of 2023, compared to a loss from
operations of approximately $1.9
million (excluding one-time non-cash stock-based
compensation of $658,000) during the
same period last year.
Net Income (Loss)
The Company's net loss was $319,000, or $(0.03) per basic and diluted share, for the
three months ended June 30, 2023, as
compared to a net loss of $2.5
million, or $(0.26) per basic
and diluted share, during the three months ended June 30, 2022. Excluding non-cash stock-based
compensation expense, Pioneer generated net income of approximately
$500,000, or $0.05 per share, during the second quarter of
2023.
Year-to-Date 2023 Financial Results
Total revenue for the six months ended June 30, 2023 was $20.6
million, an increase of 83.9% compared to $11.2 million during the first six months of last
year. Revenue from the T&D Solutions segment increased
approximately 139%, and revenue from the Critical Power segment
increased approximately 14% during the first six months of the 2023
as compared to the same period last year.
Gross profit for the first six months of 2023 was $4.9 million, or a 23.9% gross margin, compared
to a gross profit of $986,000, or
8.8% of revenues, for the same period last year.
Loss from operations for the first six months of 2023 was
$322,000, as compared to an operating
loss of $3.3 million during the first
six months of last year. Excluding non-recurring stock-based
compensation of $962,000, the Company
generated positive income from operations of $640,000 for the first six months of 2023,
compared to a loss from operations of $2.6
million (excluding non-recurring stock-based compensation of
$716,000) during the first six months
of last year.
The Company's net loss for the first six months of 2023 was
$197,000, or $(0.02) per basic and diluted share, compared to
a net loss of $3.3 million, or
$(0.34) per basic and diluted share,
during the same period of 2022.
Balance Sheet
At June 30, 2023, the Company had
$9.6 million of cash on hand and
working capital of $14.4 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 June 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
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".
Earnings Conference Call:
Management will host a conference call today, Monday, August 14, 2023, at 5 p.m. Eastern Time to discuss Pioneer's 2023
second 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 10181632.
A replay will be available until August
21, 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
10181632 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=1627808&tp_key=3232878469.
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
|
|
Six Months Ended
|
|
June 30,
|
|
June 30,
|
|
2023
|
|
2022 (Revised)
|
|
2023
|
|
2022 (Revised)
|
Revenues
|
$
|
12,130
|
|
$
|
4,863
|
|
$
|
20,638
|
|
$
|
11,225
|
Cost of goods
sold
|
|
9,419
|
|
|
4,800
|
|
|
15,714
|
|
|
10,239
|
Gross
profit
|
|
2,711
|
|
|
63
|
|
|
4,924
|
|
|
986
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
3,089
|
|
|
2,585
|
|
|
5,246
|
|
|
4,331
|
Total operating
expenses
|
|
3,089
|
|
|
2,585
|
|
|
5,246
|
|
|
4,331
|
Loss from
operations
|
|
(378)
|
|
|
(2,522)
|
|
|
(322)
|
|
|
(3,345)
|
Interest
income
|
|
(79)
|
|
|
(104)
|
|
|
(132)
|
|
|
(206)
|
Other expense,
net
|
|
20
|
|
|
117
|
|
|
7
|
|
|
129
|
Loss before income
taxes
|
|
(319)
|
|
|
(2,535)
|
|
|
(197)
|
|
|
(3,268)
|
Income tax
expense
|
|
-
|
|
|
-
|
|
|
-
|
|
|
7
|
Net loss
|
$
|
(319)
|
|
$
|
(2,535)
|
|
$
|
(197)
|
|
$
|
(3,275)
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.03)
|
|
$
|
(0.26)
|
|
$
|
(0.02)
|
|
$
|
(0.34)
|
Diluted
|
$
|
(0.03)
|
|
$
|
(0.26)
|
|
$
|
(0.02)
|
|
$
|
(0.34)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
9,908,434
|
|
|
9,727,878
|
|
|
9,838,989
|
|
|
9,684,610
|
Diluted
|
|
9,908,434
|
|
|
9,727,878
|
|
|
9,838,989
|
|
|
9,684,610
|
PIONEER POWER SOLUTIONS, INC.
|
|
|
|
Consolidated Balance Sheets
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash
|
$
|
9,624
|
|
$
|
10,296
|
Accounts receivable,
net
|
|
5,835
|
|
|
11,139
|
Inventories
|
|
8,457
|
|
|
8,748
|
Prepaid expenses and
other current assets
|
|
2,625
|
|
|
2,853
|
Total current
assets
|
|
26,541
|
|
|
33,036
|
Property and equipment,
net
|
|
2,383
|
|
|
1,800
|
Operating lease
right-of-use assets
|
|
1,110
|
|
|
1,450
|
Financing lease
right-of-use assets
|
|
523
|
|
|
727
|
Other assets
|
|
138
|
|
|
162
|
Total
assets
|
$
|
30,695
|
|
$
|
37,175
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
6,791
|
|
$
|
7,239
|
Current portion of
operating lease liabilities
|
|
733
|
|
|
703
|
Current portion of
financing lease liabilities
|
|
192
|
|
|
355
|
Deferred
revenue
|
|
4,462
|
|
|
10,665
|
Total current
liabilities
|
|
12,178
|
|
|
18,962
|
Operating lease
liabilities, non-current portion
|
|
423
|
|
|
797
|
Financing lease
liabilities, non-current portion
|
|
353
|
|
|
418
|
Other long-term
liabilities
|
|
57
|
|
|
65
|
Total
liabilities
|
|
13,011
|
|
|
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;
9,994,545 and 9,644,545 shares issued and outstanding on June 30,
2023 and December 31, 2022, respectively
|
|
10
|
|
|
10
|
Additional paid-in
capital
|
|
33,821
|
|
|
32,859
|
Accumulated other
comprehensive income
|
|
-
|
|
|
14
|
Accumulated
deficit
|
|
(16,147)
|
|
|
(15,950)
|
Total stockholders'
equity
|
|
17,684
|
|
|
16,933
|
Total liabilities and
stockholders' equity
|
$
|
30,695
|
|
$
|
37,175
|
PIONEER POWER SOLUTIONS, INC.
|
|
|
|
Consolidated Statements of Cash
Flows
|
|
|
|
|
|
(In thousands)
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
June 30,
|
|
2023
|
|
2022 (Revised)
|
Operating activities
|
|
|
|
|
|
Net loss
|
$
|
(197)
|
|
$
|
(3,275)
|
Adjustments to
reconcile net loss to net cash provided by/ (used in) operating
activities:
|
|
|
|
|
|
Depreciation
|
|
227
|
|
|
73
|
Amortization of
right-of-use financing leases
|
|
205
|
|
|
124
|
Amortization of
imputed interest
|
|
-
|
|
|
(214)
|
Amortization of
right-of-use operating leases
|
|
340
|
|
|
328
|
Change in receivable
reserves
|
|
44
|
|
|
(141)
|
Stock-based
compensation
|
|
962
|
|
|
716
|
Other
|
|
(13)
|
|
|
-
|
Changes in current
operating assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
5,283
|
|
|
(2,642)
|
Inventories
|
|
291
|
|
|
(3,987)
|
Prepaid expenses and
other assets
|
|
224
|
|
|
(67)
|
Income
taxes
|
|
(4)
|
|
|
27
|
Accounts payable and
accrued liabilities
|
|
(449)
|
|
|
1,796
|
Deferred
revenue
|
|
(6,204)
|
|
|
5,966
|
Operating lease
liabilities
|
|
(343)
|
|
|
(325)
|
Net cash provided by/
(used in) operating activities
|
|
366
|
|
|
(1,621)
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
|
Purchases of property
and equipment
|
|
(810)
|
|
|
(174)
|
Net cash used in
investing activities
|
|
(810)
|
|
|
(174)
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
|
Net proceeds from the
exercise of options for common stock
|
|
-
|
|
|
17
|
Principal repayments
of financing leases
|
|
(228)
|
|
|
(136)
|
Net cash used in
financing activities
|
|
(228)
|
|
|
(119)
|
|
|
|
|
|
|
Decrease in
cash
|
|
(672)
|
|
|
(1,914)
|
Cash, beginning of
period
|
|
10,296
|
|
|
11,699
|
Cash, end of
period
|
$
|
9,624
|
|
$
|
9,785
|
|
|
|
|
|
|
Non-cash investing and financing
activities:
|
|
|
|
|
|
Acquisition of
right-of-use assets and lease liabilities
|
$
|
-
|
|
$
|
551
|
|
|
|
|
|
|
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SOURCE Pioneer Power Solutions, Inc.