Polar Power Reports Third Quarter 2024 Financial Results
Polar Power (NASDAQ: POLA) reported strong Q3 2024 financial results with net sales of $4.9 million, marking a 157% year-over-year increase and third consecutive quarter of sequential growth. The company achieved a gross profit of $1.4 million (29% of sales), compared to a loss last year. Operating expenses decreased to $1.4 million from $1.6 million in Q3 2023. The company reported net income of $13,000, a significant improvement from a $1.84 million loss in Q3 2023. Working capital stood at $10.1 million, including $15.0 million in inventory, with a backlog of $3.1 million. The company is expanding internationally in telecommunications and military markets while planning a reverse stock split to maintain Nasdaq compliance.
Polar Power (NASDAQ: POLA) ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con vendite nette di 4,9 milioni di dollari, segnando un aumento del 157% rispetto all’anno scorso e il terzo trimestre consecutivo di crescita sequenziale. L'azienda ha raggiunto un utile lordo di 1,4 milioni di dollari (29% delle vendite), rispetto a una perdita dello scorso anno. Le spese operative sono diminuite a 1,4 milioni di dollari, rispetto ai 1,6 milioni di dollari del terzo trimestre del 2023. L'azienda ha riportato un utile netto di 13.000 dollari, un significativo miglioramento rispetto a una perdita di 1,84 milioni di dollari nel terzo trimestre del 2023. Il capitale circolante si attestava a 10,1 milioni di dollari, comprensivi di 15,0 milioni di dollari in inventario, con un arretrato di 3,1 milioni di dollari. L'azienda si sta espandendo a livello internazionale nei settori delle telecomunicazioni e militari, mentre pianifica uno scorporo azionario inverso per mantenere la conformità con il Nasdaq.
Polar Power (NASDAQ: POLA) reportó resultados financieros sólidos para el tercer trimestre de 2024, con ventas netas de 4,9 millones de dólares, lo que representa un aumento del 157% con respecto al año anterior y el tercer trimestre consecutivo de crecimiento secuencial. La empresa logró un beneficio bruto de 1,4 millones de dólares (29% de las ventas), en comparación con una pérdida el año pasado. Los gastos operativos disminuyeron a 1,4 millones de dólares desde 1,6 millones en el tercer trimestre de 2023. La compañía reportó un ingreso neto de 13,000 dólares, una mejora significativa respecto a una pérdida de 1,84 millones de dólares en el tercer trimestre de 2023. El capital de trabajo se situó en 10,1 millones de dólares, incluyendo 15,0 millones de dólares en inventario, con un backlog de 3,1 millones. La empresa se está expandiendo internacionalmente en los mercados de telecomunicaciones y militares, mientras planea una división de acciones inversa para mantener la conformidad con Nasdaq.
폴라파워 (NASDAQ: POLA)는 2024년 3분기 재무 실적이 우수하다고 보고했으며, 순매출 490만 달러를 기록하여 전년 대비 157% 증가하였고, 연속 세 번째 분기 성장세를 이어갔습니다. 회사는 총 이익 140만 달러 (매출의 29%)를 달성했으며, 작년에는 손실을 기록했습니다. 운영 비용은 2023년 3분기 160만 달러에서 140만 달러로 감소했습니다. 회사는 순이익 1만 3천 달러를 보고했으며, 이는 2023년 3분기 184만 달러 손실에 비해 상당히 개선된 수치입니다. 운전 자본은 1천만 달러로, 1천5백만 달러의 재고를 포함하며, 310만 달러의 미결제 주문이 있습니다. 회사는 통신 및 군사 시장에서 국제적으로 확장하고 있으며, Nasdaq 준수를 유지하기 위해 역 주식 분할을 계획하고 있습니다.
Polar Power (NASDAQ: POLA) a annoncé des résultats financiers solides pour le troisième trimestre 2024, avec un chiffre d'affaires net de 4,9 millions de dollars, marquant une augmentation de 157% par rapport à l'année précédente et le troisième trimestre consécutif de croissance séquentielle. L'entreprise a réalisé un bénéfice brut de 1,4 million de dollars (29% des ventes), contre une perte l'année dernière. Les dépenses d'exploitation ont diminué à 1,4 million de dollars contre 1,6 million de dollars au troisième trimestre 2023. L'entreprise a déclaré un bénéfice net de 13 000 dollars, une amélioration significative par rapport à une perte de 1,84 million de dollars au troisième trimestre 2023. Le fonds de roulement s'élevait à 10,1 millions de dollars, y compris 15,0 millions de dollars en inventaire, avec une commande en attente de 3,1 millions de dollars. L'entreprise s'étend à l'international dans les marchés des télécommunications et militaires, tout en planifiant une division inversée des actions pour maintenir la conformité avec le Nasdaq.
Polar Power (NASDAQ: POLA) meldete für das dritte Quartal 2024 starke Finanzdaten mit Nettoverkaufserlösen von 4,9 Millionen Dollar, was einem Anstieg von 157% im Vergleich zum Vorjahr entspricht und das dritte aufeinanderfolgende Quartal mit sequenzieller Wachstumssteigerung darstellt. Das Unternehmen erreichte einen Brutto Gewinn von 1,4 Millionen Dollar (29% der Verkäufe), im Vergleich zu einem Verlust im vergangenen Jahr. Die Betriebskosten sanken auf 1,4 Millionen Dollar von 1,6 Millionen Dollar im dritten Quartal 2023. Das Unternehmen berichtete von einem Nettoeinkommen von 13.000 Dollar, eine erhebliche Verbesserung gegenüber einem Verlust von 1,84 Millionen Dollar im dritten Quartal 2023. Das Working Capital betrug 10,1 Millionen Dollar, einschließlich 15,0 Millionen Dollar an Lagerbeständen, mit einem Auftragsbestand von 3,1 Millionen Dollar. Das Unternehmen expandiert international in den Bereichen Telekommunikation und Militärmärkte und plant eine Umkehraktienaufspaltung, um die Nasdaq-Vorgaben einzuhalten.
- 157% year-over-year increase in net sales to $4.9 million
- Achieved gross profit of $1.4 million (29% margin) vs. loss last year
- Reduced operating expenses to $1.4 million from $1.6 million YoY
- Turned profitable with net income of $13,000 vs. $1.84 million loss YoY
- Strong working capital position of $10.1 million
- Minimal net income of $0.00 per share despite revenue growth
- Facing Nasdaq compliance issues requiring reverse stock split
- High inventory level of $15.0 million relative to sales
Insights
The Q3 results show significant operational improvement for Polar Power. Net sales of
However, there are concerns to note. The
The company's strategic expansion into international markets, particularly the South Pacific telecommunications sector, represents a promising diversification strategy. The focus on rural and underdeveloped regions' telecommunications infrastructure aligns with global digital inclusion initiatives, potentially providing sustained growth opportunities over the next 5-10 years.
The increased military sales and international market penetration have positively impacted margins, suggesting a more profitable revenue mix. However, the company's heavy reliance on tier-1 telecom customers remains a concentration risk, despite ongoing diversification efforts.
GARDENA, CA, Nov. 14, 2024 (GLOBE NEWSWIRE) -- Polar Power, Inc. (“Polar Power” or the “Company”) (NASDAQ: POLA), a global provider of prime, backup, and solar hybrid DC power solutions, reports its financial results for the third quarter of 2024.
Q3 2024 Financial Highlights
- Net sales were
$4.9 million , representing the third consecutive quarter of sequential sales improvement and a year-over-year quarterly improvement of157% - Gross profit of
$1.4 million , or29% of sales, represents a positive swing of approximately$1.5 million compared to a gross loss of$108,000 in the same period last year - Operating expenses of
$1.4 million compared favorably to$1.6 million in the third quarter of 2023 - Net income of
$13,000 , or$0.00 per basic and diluted share, represents an increase of$1.9 million compared to a net loss of$1,844,000 , or ($0.14) per basic and diluted share, in the same period in 2023 - Working capital of
$10.1 million as of September 30, 2024, included$15.0 million in inventory - Backlog at September 30, 2024 was
$3.1 million
Arthur Sams, CEO of Polar Power, commented, “Our financial results in the third quarter reflect steady progress and a continued recovery in our top-line and the second consecutive quarter of inflection from losses into profitability. While we continue to see recovering order volumes from our tier 1 telecom customers, we are also diversifying our revenue base and have orders and sales coming from a broader range of both end-markets and geographic markets.
“We have several telecommunications customers in the South Pacific region purchasing our DC generators to develop the telecommunications infrastructure in that region. We believe the implementation and ongoing development of broadband networks, along with programs to develop the telecommunications infrastructure in rural and underdeveloped countries, will continue to fuel our growth in the telecommunications market over the next five to ten years. Along with increased international sales, military sales also increased in the third quarter, and both developments positively impacted our margins.
“Our focus continues to be on converting our sales pipeline into purchase orders, and we are particularly encouraged by opportunities with some large overseas deals. We continue to take steps to foster our recent operational and financial momentum as we head into 2025.
“Lastly, on an administrative matter, we are taking steps to regain Nasdaq compliance with respect to continued listing requirements and plan to effect a reverse stock split that we believe should address our current deficiency while maintaining our Nasdaq listing throughout the process,” concluded Mr. Sams.
About Polar Power, Inc.
Polar Power (NASDAQ: POLA) is pioneering technological changes that radically change the production, consumption, and environmental impact of power generation and is a leading provider of DC advanced power and cooling systems, pioneering innovations across diverse industrial applications. Its product portfolio, known for innovation, durability, and efficiency, presently includes standard products for telecom, military, renewable energy, marine, automotive, residential, commercial, oil field and mining applications. Polar Power’s systems can be configured to operate on any energy source including photovoltaics, diesel, LPG (propane and butane), and renewable fuels.
Polar Power’s telecom power solutions offer significant cost savings with installation, permitting, site leases, and operation. Its military solutions provide compact, lightweight, fuel efficient, reliable power solutions for robotics, drone, communications, hybrid propulsion, and other applications. Its mobile rapid battery charging technology enables on-demand roadside charging for electric vehicles. Its combined heat and power (CHP) residential systems offer innovative vehicle charging and integrated home power systems via natural gas or propane feedstocks, optimizing performance and system costs. Polar Power’s micro / nano grid solutions provide lower cost energy in “bad-grid or no-grid” environments. Its commitment to technological advancement extends to hybrid propulsion systems for marine and specialty vehicles, ensuring efficiency, comfort, reliability, and cost savings.
For more information, please visit www.polarpower.com. or follow us on www.linkedin.com/company/polar-power-inc/.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This news release contains certain statements of a forward-looking nature relating to future events or future business performance. Forward-looking statements can be identified by the words “expects,” “anticipates,” “believes,” “intends,” “estimates,” “plans,” “will,” “outlook” and similar expressions. Forward-looking statements are based on management’s current plans, estimates, assumptions and projections, and speak only as of the date they are made. With the exception of historical information, the matters discussed in this press release including, without limitation, Polar Power’s belief that orders from its telecom customers will continue to materialize; Polar Power’s expectations that its planned investment in sales and marketing will accelerate sales growth, and managing operating expenses should enable both top- and bottom-line improvements throughout 2024 are forward-looking statements and considerations that involve a number of risks and uncertainties. The actual future results of Polar Power could differ from those statements. Factors that could cause or contribute to such differences include, but are not limited to, adverse domestic and foreign economic and market conditions, including demand for its Summit Series, 27 kW DC generator product line; trade tariffs on raw materials; changes in domestic and foreign governmental regulations and policies; the impact of inflation and changing prices on raw materials; supply chain constraints causing significant delays in sourcing raw materials; labor shortages as a result of the pandemic, low unemployment rates, or other factors limiting the availability of qualified workers; and other events, factors and risks. It undertakes no obligation to update any forward-looking statement in light of new information or future events, except as otherwise required by law. Forward-looking statements involve inherent risks and uncertainties, most of which are difficult to predict and are generally beyond Polar Power’s control. Actual results or outcomes may differ materially from those implied by the forward-looking statements as a result of the impact of a number of factors, many of which are discussed in more detail in Polar Power’s reports filed with the Securities and Exchange Commission.
Media and Investor Relations:
CoreIR
Peter Seltzberg, SVP Investor Relations and Corporate Advisory
+1 212-655-0924
ir@polarpowerinc.com
www.CoreIR.com
Company Contact:
Polar Power, Inc.
249 E. Gardena Blvd.
Gardena, CA 90248
Tel: 310-830-9153
ir@polarpowerinc.com
www.polarpower.com
POLAR POWER, INC.
CONDENSED BALANCE SHEETS
(in thousands, except share and per share data)
| September 30, 2024 | December 31, 2023 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 498 | $ | 549 | ||||
| Accounts receivable | 2,949 | 1,676 | ||||||
| Inventories | 15,029 | 16,522 | ||||||
| Prepaid expenses | 171 | 455 | ||||||
| Employee retention credit receivable | — | 2,000 | ||||||
| Income taxes receivable | — | 787 | ||||||
| Total current assets | 18,647 | 21,989 | ||||||
| Other assets: | ||||||||
| Operating lease right-of-use assets, net | 1,944 | 2,818 | ||||||
| Property and equipment, net | 217 | 344 | ||||||
| Deposits | 108 | 108 | ||||||
| Total assets | $ | 20,916 | $ | 25,259 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 346 | $ | 1,762 | ||||
| Customer deposits | 750 | 1,618 | ||||||
| Accrued liabilities and other current liabilities | 1,171 | 1,151 | ||||||
| Line of credit | 4,661 | 4,238 | ||||||
| Notes payable-related party, current portion | 265 | 257 | ||||||
| Notes payable, current portion | — | 64 | ||||||
| Operating lease liabilities, current portion | 1,322 | 1,124 | ||||||
| Total current liabilities | 8,515 | 10,214 | ||||||
| Operating lease liabilities, net of current portion | 840 | 1,856 | ||||||
| Total liabilities | 9,355 | 12,070 | ||||||
| Commitments and Contingencies | ||||||||
| Stockholders’ Equity | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | 2 | 2 | ||||||
| Additional paid-in capital | 38,886 | 38,886 | ||||||
| Accumulated deficit | (27,287 | ) | (25,659 | ) | ||||
| Treasury Stock, at cost (17,477 shares) | (40 | ) | (40 | ) | ||||
| Total stockholders’ equity | 11,561 | 13,189 | ||||||
| Total liabilities and stockholders’ equity | $ | 20,916 | $ | 25,259 | ||||
POLAR POWER, INC.
UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
| Three Months Ended September 30, | Nine months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net Sales | $ | 4,914 | $ | 1,911 | $ | 11,348 | $ | 11,688 | ||||||||
| Cost of Sales | 3,490 | 2,019 | 8,494 | 9,566 | ||||||||||||
| Gross profit (loss) | 1,424 | (108 | ) | 2,854 | 2,122 | |||||||||||
| Operating Expenses | ||||||||||||||||
| Sales and marketing | 252 | 274 | 746 | 917 | ||||||||||||
| Research and development | 172 | 299 | 586 | 983 | ||||||||||||
| General and administrative | 960 | 992 | 3,001 | 3,240 | ||||||||||||
| Total operating expenses | 1,384 | 1,565 | 4,333 | 5,140 | ||||||||||||
| Income (loss) from operations | 40 | (1,673 | ) | (1,479 | ) | (3,018 | ) | |||||||||
| Other income (expenses) | ||||||||||||||||
| Interest expense and finance costs | (153 | ) | (171 | ) | (496 | ) | (375 | ) | ||||||||
| Other Income (expense), net | 126 | — | 347 | — | ||||||||||||
| Total other income (expenses), net | (27 | ) | (171 | ) | (149 | ) | (375 | ) | ||||||||
| Net income (loss) | $ | 13 | $ | (1,844 | ) | $ | (1,628 | ) | $ | (3,393 | ) | |||||
| Net income (loss) per share – basic and diluted | $ | 0.00 | $ | (0.14 | ) | $ | (0.09 | ) | $ | (0.26 | ) | |||||
| Weighted average shares outstanding, basic and diluted | 17,561,612 | 12,949,550 | 17,561,612 | 12,949,550 | ||||||||||||
POLAR POWER, INC.
UNAUDITED CONDENSED STATEMENTS OF CASH FLOW
(in thousands)
| Nine months Ended September 30, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (1,628 | ) | $ | (3,393 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 146 | 309 | ||||||
| Changes in operating assets and liabilities | ||||||||
| Accounts receivable | (1,273 | ) | 648 | |||||
| Employee retention credit | 2,000 | — | ||||||
| Inventories | 1,492 | (3,695 | ) | |||||
| Prepaid expenses | 284 | 1,687 | ||||||
| Deposits | — | (15 | ) | |||||
| Income tax receivable | 787 | — | ||||||
| Operating lease right-of-use asset | 874 | (2,863 | ) | |||||
| Accounts payable | (1,416 | ) | 1,758 | |||||
| Customer deposits | (868 | ) | (406 | ) | ||||
| Accrued expenses and other current liabilities | 20 | (53 | ) | |||||
| Operating lease liability | (818 | ) | 2,939 | |||||
| Net cash used in operating activities | (400 | ) | (3,084 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Acquisition of property and equipment | (18 | ) | (194 | ) | ||||
| Net cash used in investing activities | (18 | ) | (194 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from advances from credit facility | 423 | 3,310 | ||||||
| Proceeds from notes payable, related party | 8 | 233 | ||||||
| Repayment of notes payable | (64 | ) | (180 | ) | ||||
| Net cash provided by financing activities | 367 | 3,363 | ||||||
| Increase (decrease) in cash and cash equivalents | (51 | ) | 85 | |||||
| Cash and cash equivalents, beginning of period | 549 | 211 | ||||||
| Cash and cash equivalents, end of period | $ | 498 | $ | 296 | ||||
FAQ
What was Polar Power's (POLA) revenue growth in Q3 2024?
What was POLA's profit margin in Q3 2024?
How much working capital does Polar Power (POLA) have as of Q3 2024?
What is Polar Power's (POLA) current backlog as of Q3 2024?
