Pioneer Power Increases Revenue 149% during the Second Quarter to a Record $12.1 Million; Gross Profit Increases to $2.7 Million, Achieving a 22% Gross Margin
- Q2 revenue increased 149% to $12.1 million
- Q2 gross profit was $2.7 million with a 22.4% margin
- Cash on hand at June 30, 2023, was $9.6 million
- Management expects at least 50% revenue growth in 2023 and positive earnings per share
- None.
Management Reiterates Guidance of Full Year Revenue of
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 , as compared to$12.1 million for the second quarter of 2022.$4.9 million - Pioneer's total backlog at June 30, 2023 was
compared to$33.6 million at June 30, 2022, and$24.3 million at December 31, 2022.$37.2 million - Second quarter gross profit was
, or a$2.7 million 22.4% gross margin, as compared to a gross profit of , or a$63,000 1.3% gross margin, for the second quarter of 2022. - Second quarter total loss from operations was
, which is inclusive of$378,000 in one-time non-cash stock-based compensation, compared to an operating loss of$819,000 (inclusive of$2.5 million in one-time non-cash stock-based compensation) in the second quarter of last year.$658,000 - Excluding the one-time non-cash stock-based compensation, Pioneer Power generated income from operations of approximately
during the second quarter of 2023, as compared to an operating loss of$441,000 (excluding one-time non-cash stock-based compensation) during the second quarter of last year.$1.9 million - Second quarter net loss was
, or$319,000 per basic and diluted share, compared to a net loss of$(0.03) , or$2.5 million per basic and diluted share, for the same period last year.$(0.26) - Excluding one-time non-cash stock-based compensation for both periods, the Company generated approximately
in earnings per share compared to$0.05 of negative earnings per share during the second quarter of 2022.$(0.19) - The Company had cash on hand of
at June 30, 2023 compared to$9.6 million at December 31, 2022.$10.3 million - The Company had
of net operating loss carryforwards at June 30, 2023.$14.2 million
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
"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
Gross Profit/Margin
Total gross profit for the second quarter of 2023 was
Operating Income (Loss)
For the three months ended June 30, 2023, loss from operations was
Net Income (Loss)
The Company's net loss was
Year-to-Date 2023 Financial Results
Total revenue for the six months ended June 30, 2023 was
Gross profit for the first six months of 2023 was
Loss from operations for the first six months of 2023 was
The Company's net loss for the first six months of 2023 was
Balance Sheet
At June 30, 2023, the Company had
2023 Outlook
Management reiterated expectations of total revenue between
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
A replay will be available until August 21, 2023 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=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, | - | - | |||
Common stock, | 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.