Power Solutions International Announces CFO Transition

Rhea-AI Summary

Power Solutions International (PSIX) announced the appointment of Matthew Thomas as interim CFO effective April 8, 2022, following Donald P. Klein's resignation to pursue other interests. Thomas, who has over 12 years of experience in accounting and finance, has been with the company since 2018, serving as corporate controller since May 2021. The company plans to file its Form 10-K for the fiscal year ending December 31, 2021, on March 31, 2022.

Positive

• None.

Negative

• The resignation of the CFO could indicate instability at the executive level.
• The company faces ongoing risks from the COVID-19 pandemic impacting business performance.
• Potential challenges in accessing capital and liquidity issues could arise.
• The company is addressing material weaknesses in internal controls.
• Delisting risks from NASDAQ may negatively affect stock performance.

WOOD DALE, Ill., March 30, 2022 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. (“PSI” or “the Company”) (OTC Pink: PSIX), a leader in the design, engineering and manufacture of emission-certified engines and power systems, announced that effective April 8, 2022 (the “effective date”), it will appoint current corporate controller Matthew Thomas as its interim chief financial officer while the Company conducts a search for a permanent chief financial officer. Mr. Thomas will succeed Donald P. Klein, who will be departing the Company to pursue other interests. Mr. Klein’s resignation is unrelated to any disagreement with the Company. Mr. Klein will continue to serve in his current role until the effective date to ensure an orderly transition.   

Mr. Thomas, who possesses over 12 years of experience in the areas of accounting and finance, has served as PSI’s corporate controller since May 2021 with responsibilities for leading the accounting, internal/external reporting, and treasury areas.  He originally joined the Company as director of accounting in March 2018 and served in this capacity until June 2019. From June 2019 until May 2021, he served as the Company’s assistant controller. Prior to joining PSI, from November 2014 through March 2018, he served as senior manager, accounting at Akorn, Inc., which was a publicly traded specialty pharmaceuticals company. Prior to that role, from July 2009 to November 2014, he was an audit supervisor with accounting firm Miller Cooper & Co., Ltd.  He holds a Bachelor of Science degree in Accountancy from Northern Illinois University and is a licensed CPA.

Lance Arnett, chief executive officer, commented, “We are grateful for the contributions that Don has made over the past few years and wish him well in his future endeavors. We would also like to welcome Matt to the interim CFO role.”

The Company intends to file its Form 10-K for the fiscal year ended December 31, 2021, on March 31, 2022.

About Power Solutions International, Inc.

Power Solutions International, Inc. (PSI) is a leader in the design, engineering and manufacture of a broad range of advanced, emission-certified engines and power systems. PSI provides integrated turnkey solutions to leading global original equipment manufacturers and end-user customers within the power systems, industrial and transportation end markets. The Company's unique in-house design, prototyping, engineering and testing capabilities allow PSI to customize clean, high-performance engines using a fuel agnostic strategy to run on a wide variety of fuels, including natural gas, propane, gasoline, diesel and biofuels.

PSI develops and delivers complete power systems that are used worldwide in stationary and mobile power generation applications supporting standby, prime, demand response, microgrid, and co-generation power (CHP) applications; and industrial applications that include forklifts, agricultural and turf, arbor care, industrial sweepers, aerial lifts, irrigation pumps, ground support, and construction equipment. In addition, PSI develops and delivers powertrains purpose-built for medium-duty trucks and buses including school and transit buses, work trucks, terminal tractors, and various other vocational vehicles. For more information on PSI, visit www.psiengines.com. 

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements regarding the current expectations of the Company about its prospects and opportunities. These forward-looking statements are entitled to the safe-harbor provisions of Section 21E of the Securities Exchange Act of 1934. The Company has tried to identify these forward-looking statements by using words such as “anticipate,” “believe,” “budgeted,” “contemplate,” “estimate,” “expect,” “forecast,” “guidance,” “may,” “outlook,” “plan,” “projection,” “should,” “target,” “will,” “would,” or similar expressions, but these words are not the exclusive means for identifying such statements. These statements are subject to a number of risks, uncertainties, and assumptions that may cause actual results, performance or achievements to be materially different from those expressed in, or implied by, such statements.

The Company cautions that the risks, uncertainties and other factors that could cause its actual results to differ materially from those expressed in, or implied by, the forward-looking statements, include, without limitation: the impact of the ongoing COVID-19 pandemic could have on the Company’s business and financial results; the Company’s ability to continue as a going concern; the Company’s ability to raise additional capital when needed and its liquidity; uncertainties around the Company’s ability to meet funding conditions under its financing arrangements and access to capital thereunder; the potential acceleration of the maturity at any time of the loans under the Company’s uncommitted senior secured revolving credit facility through the exercise by Standard Chartered Bank of its demand right; the timing of completion of steps to address, and the inability to address and remedy, material weaknesses; the identification of additional material weaknesses or significant deficiencies; risks related to complying with the terms and conditions of the settlements with the Securities and Exchange Commission (the “SEC”) and the United States Attorney’s Office for the Northern District of Illinois (the “USAO”); variances in non-recurring expenses; risks relating to the substantial costs and diversion of personnel’s attention and resources deployed to address the internal control matters; the Company’s obligations to indemnify past and present directors and officers and certain current and former employees with respect to the investigations conducted by the SEC and the criminal division of the USAO, which will be funded by the Company with its existing cash resources due to the exhaustion of its historical primary directors’ and officers’ insurance coverage; the ability of the Company to accurately forecast sales, and the extent to which sales result in recorded revenues; changes in customer demand for the Company’s products; volatility in oil and gas prices; the impact of U.S. tariffs on imports from China on the Company’s supply chain; disruptions to the Company’s supply chain; the impact of increasing warranty costs and the Company’s ability to mitigate such costs; any delays and challenges in recruiting key employees consistent with the Company’s plans; any negative impacts from delisting of the Company’s common stock par value $0.001 from the NASDAQ Stock Market and any delays and challenges in obtaining a re-listing on a stock exchange; and the risks and uncertainties described in reports filed by the Company with the SEC, including without limitation its Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and the Company’s subsequent filings with the SEC.

The Company’s forward-looking statements are presented as of the date hereof. Except as required by law, the Company expressly disclaims any intention or obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

Power Solutions International, Inc.
Philip Kranz
Director of Investor Relations
+1 (630) 509-6470
Philip.Kranz@psiengines.com

FAQ

When did Power Solutions International announce the CFO transition?

Power Solutions International announced the CFO transition on March 30, 2022.

Who is the new interim CFO of PSIX?

Matthew Thomas has been appointed as the interim CFO of Power Solutions International.

What is the effective date for the new interim CFO at PSIX?

The effective date for Matthew Thomas as interim CFO is April 8, 2022.

Why did Donald P. Klein leave Power Solutions International?

Donald P. Klein resigned to pursue other interests, and his departure is unrelated to any disagreement with the company.

When will Power Solutions International file its Form 10-K?

Power Solutions International intends to file its Form 10-K for the fiscal year ended December 31, 2021, on March 31, 2022.