Pioneer Achieves 51% Year-Over-Year Increase in Revenue, Reaching $40.8 Million
- Positive full-year net income in 2023 compared to a net loss in 2022.
- Revenue increases to $40.8 million, a growth of 51.1% year-over-year.
- Gross profit rises to $10.4 million, with a gross margin of 25.5%.
- Loss from operations improves to $617,000 from $4.0 million in 2022.
- Net income reaches $138,000, a significant improvement from a net loss of $3.6 million in 2022.
- Backlog surges to $45.9 million, up by 36% sequentially.
- Expects revenue of $52 to $54 million and EPS of $0.31 to $0.34 in 2024.
- Working capital stands at $13.2 million as of December 31, 2023.
- Company projects a 30% year-over-year revenue growth for 2024.
- None.
Insights
Pioneer Power Solutions' financial results demonstrate a significant year-over-year growth in revenue, a substantial increase in gross profit and a positive shift from a net loss to a net income. The backlog growth indicates a strong demand for their products, particularly the E-Bloc systems and mobile EV charging solutions. The company's transition to profitability and the expansion of gross margins reflect improved operational efficiency and a favorable product mix.
From a market perspective, the substantial increase in backlog and the projected revenue for 2024 suggest that Pioneer is well-positioned to capitalize on the growing need for distributed energy resources and EV infrastructure. The shift towards electrification in various sectors, including transportation and utilities, is likely to continue driving demand for Pioneer's offerings. However, investors should monitor the execution of the backlog and the company's ability to maintain or improve margins in a competitive landscape.
Analyzing Pioneer Power Solutions' financial health, the conversion of federal net operating loss carryforwards into a positive net income suggests a more favorable tax position moving forward. The company's ability to improve gross margins while scaling revenue is indicative of effective cost management and pricing strategies. The EPS guidance for 2024 reflects confidence in continued profitability.
Investors should consider the implications of the reported decrease in fourth-quarter revenue and the shift of certain orders to 2024. While this may raise concerns about short-term revenue recognition, the overall positive outlook for 2024 may alleviate some of these concerns. It's critical to evaluate the company's cash position and working capital to ensure it can sustain growth without compromising financial stability.
The energy sector is undergoing a transformation with the integration of distributed energy resources and EV infrastructure. Pioneer's focus on E-Bloc power systems and e-Boost mobile EV charging products aligns with industry trends towards decarbonization and energy independence. The company's success in securing contracts with major automakers and service agreements with large carriers reflects the industry's recognition of Pioneer's technological capabilities.
However, the energy sector is subject to regulatory changes and technological disruptions. The long-term success of Pioneer's products will depend on their adaptability to evolving standards and their competitiveness against emerging technologies. Stakeholders should weigh the potential risks associated with regulatory shifts and market entry by larger competitors with the resources to invest in research and development.
Delivers Positive Full-Year Net Income vs. Net Loss in 2022;
Backlog Surges to
Expects Continued, Rapid Growth in Revenue, EPS and Operating Margins in 2024;
Guides to
Preliminary Financial Highlights for the Full Year 2023 (Unaudited):
-
Revenue was
$40.8 million $27.0 million 51.1% . -
Gross profit was
$10.4 million 25.5% , as compared to$4.6 million 17.1% , for 2022. Gross profit increased125% and gross margin increased 840 basis points. -
Loss from operations was
$617,000 $4.0 million $3.4 million $1.5 million $1.0 million -
Net income was
$138,000 $0.01 $3.6 million $(0.37) $3.7 million -
The Company had
$14.6 million -
Total backlog surged to
$45.9 million 36% as compared to$33.6 million 23% as compared to$37.2 million
Business Highlights for the Full Year 2023
- Delivered a significant increase in mobile charging power via its suite of e-Boost© charging products during 2023; 7,500 charging sessions/220mwh of mobile charging power compared to 350 charging sessions/7.5mwh during 2022.
-
Delivered
$9 million -
Delivered
$6 million California as part of their efforts to decrease their grid reliance. - Introduced and immediately booked orders for a new and innovative E-Bloc solar microgrid series of equipment.
-
Awarded a three-year service agreement from a large
U.S. cellular carrier valued at approximately$5 million -
Completed a turnkey distributed generation project at
Miami International Airport valued at approximately$700,000 - Delivered six new e-Boost units to customers, doubling deliveries compared to 2022.
Nathan Mazurek, Pioneer’s Chairman and Chief Executive Officer, said, “We delivered a record
“Today’s grid infrastructure will not be able to meet the accelerating demand for power for many years to come,” Mazurek continued. “Our E-Bloc series of products such as our solar micro grid line, mini substations, and our charge port series support the installation and throughput of distributed power generation resources and, indeed, enable the deployment of electrical power with greater speed and efficiency. The surge in orders for our E-Bloc product is a strong indicator of the traction we are experiencing. With additional product launches planned in 2024, we believe there is tremendous opportunity for additional revenue and earnings growth as well as margin expansion.”
Mazurek concluded, “We are aggressively marketing our suite of e-Boost mobile EV charging products to electric bus and truck manufacturers, fleet management companies, municipalities and EV infrastructure providers. As awareness of these solutions expands, actual orders for e-Boost have similarly surged, making it a significant driver of the increase in our order backlog at year end. The increasing adoption of electric vehicles by school districts and municipalities, indeed, the overall electrification of all means of transportation, airport ground service equipment and even construction and agricultural equipment, provide a strong tailwind for continued growth in this portion of our business. Strong market demand, a robust backlog and a steady generation of new opportunities give us a high level of confidence for an even stronger and more profitable 2024.”
Preliminary Fourth Quarter 2023 Financial Results (Unaudited)
Revenue
Consolidated revenue for the three months ended December 31, 2023, was
Gross Profit/Margin
Consolidated gross profit for the fourth quarter of 2023 was
Operating Income (Loss)
For the three months ended December 31, 2023, loss from operations was
Net Income (Loss)
The Company’s net loss during the three months ended December 31, 2023, was
Preliminary Full Year 2023 Financial Results (Unaudited)
Consolidated revenue for the 12 months ended December 31, 2023, was
Gross profit for 2023 was
Operating loss was
Preliminary Balance Sheet (Unaudited)
As of December 31, 2023, the company had working capital of
2024 Outlook
Management expects revenue of
The foregoing projected outlook constitutes forward-looking information and is intended to provide information about management's current expectations for the Company's 2024 fiscal year. Although considered reasonable as of the date hereof, this 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 Monday, April 1, 2024, at 5 p.m. Eastern Time to discuss Pioneer’s 2023 fourth quarter and full-year 2023 financial results with the investment community.
Anyone interested in participating should call 1-800-267-6316 if calling within
A replay will be available until Monday, April 8, 2024, which can be accessed by dialing 1-844-512-2921 if calling within
The call will also be accompanied live by webcast over the Internet and accessible at https://viavid.webcasts.com/starthere.jsp?ei=1662001&tp_key=d705ac3c63.
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240401443623/en/
Brett Maas, Managing Partner
Hayden IR
(646) 536-7331
brett@haydenir.com
Source: Pioneer Power Solutions, Inc.
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