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Pioneer Reports Fourth Quarter and Full Year 2021 Financial Results; Backlog More Than Doubles in Three Months, Setting the Stage for Rapid Growth in 2022

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FORT LEE, N.J., March 31, 2022 /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, used and new power generation equipment and mobile electric vehicle (“EV”) charging solutions, today provided a business update and announced its financial results for the fourth quarter and full year ended December 31, 2021.

Recent Business Highlights:

  • Accelerating sales of e-Bloc with more than $2.6 million sold in 2021
  • Developed, prototyped, and launched the E-BOOST portfolio of mobile EV charging solutions
  • Received two E-BOOST orders in Q1 2022, including a $788,000 purchase order from a hotel and casino and a $120,000 order from a leading commercial EV charging infrastructure solutions provider to charge electric school buses
  • Backlog more than doubled in three months to $22.8 million at December 31, 2021 compared to $10.9 million at September 30, 2021 and $12.7 million at December 31, 2020.

Nathan Mazurek, Pioneer's Chairman and Chief Executive Officer, said, “We have successfully repositioned the company as a leading provider of solutions addressing two powerful secular tailwinds: distributed energy resources and electric vehicles. Our e-Bloc technology is a rapidly deployable, highly efficient power system that can be placed nearly anywhere, enabling large retailers, industrial customers, cryptocurrency miners and many other potential customers to effectively leverage a variety of on-grid and off-grid energy sources to streamline electricity costs, ensure reliable power and reduce carbon emissions.”

Mr. Mazurek continued, “Our E-BOOST suite of mobile EV charging solutions, although only launched in November of 2021, has already received nearly a million dollars in orders and actually delivered our first unit in March. E-BOOST enables the charging of EVs almost anywhere, on or off the grid using clean and readily available liquid propane.”

“Demand for these two solutions is exceptionally strong, enabling us to more than double our backlog during the fourth quarter of 2021,” continued Mr. Mazurek. “This backlog, which reached nearly $23 million at December 31, gives us confidence that we will increase our full-year revenue by at least 50% over 2021 levels, with significant margin expansion as well. We expect to generate positive operating cash flow for 2022.”

Fourth Quarter Financial Results

Revenue

Total revenue for the three months ended December 31, 2021 was $3.5 million, down 34.6% compared to $5.4 million for the same period last year, primarily due to a decline in sales from the Company's T&D Solutions segment. Revenue from the Company's switchgear product lines decreased by $1.4 million, or 47.9%, during the fourth quarter of 2021 as compared to the same period last year as a result of lower sales of medium and low voltage switchgear.

Gross Margin

Gross profit for the fourth quarter of 2021 was $25,000, or 0.7% of revenues, compared to $263,000, or 4.9% of revenues, for the year-ago period. The decrease in gross profit was primarily driven by a higher cost of goods as a result of global supply chain challenges, a tighter labor market and inflationary pressures.

Operating Income / (Loss)

For the three months ended December 31, 2021, operating loss was $1.5 million compared to $901,000 during same period last year.

Net Income / (Loss)

The Company's net loss was $1.4 million, or $(0.16) per diluted share, for the three months ended December 31, 2021 compared to a net loss of $744,000, or $(0.09) per diluted share, during the three months ended December 31, 2020.

Full-Year Financial Results

Revenue

Total revenue for the year ended December 31, 2021 was $18.3 million, down 6.0% compared to $19.5 million for the same period last year.

Gross Margin

For the year ended December 31, 2021, Pioneer's gross profit increased 58.1% to $1.4 million, or 7.6% of revenue, from $881,000, or 4.5% of revenue, for the same period last year. The significant increase in gross profit was the result of strict management of overhead costs and pricing power in our end markets.

Operating Income / (Loss)

For the year ended December 31, 2021, operating loss decreased to $3.9 million compared to an operating loss of $4.3 million last year.

Net Income / (Loss)

For the year ended December 31, 2021, net loss was $2.2 million, or $(0.24) per diluted share, compared to a net loss of $3.0 million, or $(0.34) per diluted share, for the year ended December 31, 2020.

Balance Sheet

As of December 31, 2021, the company had $11.7 million in cash, including restricted cash, compared to $7.6 million as of December 31, 2020. During the fourth quarter, the company sold 888,500 shares of common stock under the ATM Program at an average price of $10.13 per share for net proceeds of approximately $8.7 million.

Earnings Conference Call:

Management will host a conference call later today, March 31, 2022 at 4:30 p.m. Eastern Time to discuss the Company's fourth quarter and full year financial results with the investment community.

To participate, please call 1-800-289-0438 if calling within the United States or 1-323-794-2423 if calling internationally. When asked, please reference confirmation code 9557363.

The call will also be accompanied live by webcast over the Internet and accessible at https://viavid.webcasts.com/starthere.jsp?ei=1535963&tp_key=d48566f994.

A replay will be available until April 7, 2022 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 9557363 to access the replay.

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, used and new 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.

Safe Harbor Statement:

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 a single customer 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 and (xii) an outbreak of disease, epidemic or pandemic, such as the global coronavirus pandemic, or fear of such an event.

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. 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 Balance Sheets

(In thousands, except share data)

December 31,

2021

2020

ASSETS

Current assets

Cash

$

9,924

$

7,567

Restricted cash

1,775

Notes receivable

5,778

Accounts receivable, net

2,429

2,587

Insurance receivable

95

Inventories, net

4,160

2,403

Income taxes receivable

407

Prepaid expenses and other current assets

1,069

897

Total current assets

25,135

13,956

Property, plant and equipment, net

516

433

Right-of-use assets

2,237

1,504

Notes receivable

5,350

Other assets

39

44

Total assets

$

27,927

$

21,287

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable and accrued liabilities

$

4,159

$

4,027

Deferred revenue

2,423

714

Current maturities of long-term debt

780

Income taxes payable

17

Total current liabilities

6,582

5,538

Long-term debt

633

Other long-term liabilities

1,793

1,257

Total liabilities

8,375

7,428

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;
9,640,545 and 8,726,045 shares issued and outstanding on December 31, 2021 and 2020, respectively

10

9

Additional paid-in capital

31,840

23,981

Accumulated other comprehensive income

14

14

Accumulated deficit

(12,312)

(10,145)

Total stockholders' equity

19,552

13,859

Total liabilities and stockholders' equity

$

27,927

$

21,287

 

PIONEER POWER SOLUTIONS, INC.

Consolidated Statements of Operations

(In thousands, except per share data)

December 31,

December 31,

2021

2020

2021

2020

Revenues

$

3,498

$

5,352

$

18,311

$

19,490

Cost of goods sold

Cost of goods sold

3,473

5,089

16,918

18,063

Write down of inventory

546

Total cost of goods sold

3,473

5,089

16,918

18,609

Gross profit

25

263

1,393

881

Operating expenses

Selling, general and administrative

1,518

1,164

5,255

5,165

Total operating expenses

1,518

1,164

5,255

5,165

Loss from continuing operations

(1,493)

(901)

(3,862)

(4,284)

Interest income

(99)

(92)

(387)

(334)

Other income

1

(65)

(1,292)

(969)

Loss before taxes

(1,395)

(744)

(2,183)

(2,981)

Income tax (benefit) expense

3

(16)

5

Net loss

$

(1,398)

$

(744)

$

(2,167)

$

(2,986)

Loss per share:

Basic

$

(0.16)

$

(0.09)

$

(0.24)

$

(0.34)

Diluted

$

(0.16)

$

(0.09)

$

(0.24)

$

(0.34)

Weighted average common shares outstanding:

  Basic

8,858

8,726

8,858

8,726

  Diluted

8,858

8,726

8,858

8,726

 

PIONEER POWER SOLUTIONS, INC.

Consolidated Statements of Cash Flows

(In thousands)

For the Year Ended

December 31,

2021

2020

Operating activities

Net loss

$

(2,167)

$

(2,986)

Depreciation

153

203

Amortization of right-of-use assets

285

261

Amortization of imputed interest

(428)

(448)

Interest expense from PPP Loan

4

9

Gain on forgiveness of PPP Loan

(1,417)

Non-cash cost of operating leases

580

622

Change in receivable reserves

71

(57)

Change in inventory reserves

127

(535)

Write down of inventory

546

Change in long term payables

4

Proceeds from insurance receivable

95

1,705

Gain on investments

(968)

Stock-based compensation

186

3

Other

3

Changes in current operating assets and liabilities:

Accounts receivable

115

1,158

Inventories

(1,883)

2,139

Prepaid expenses and other assets

(195)

(692)

Income taxes

397

(501)

Accounts payable and accrued liabilities

27

(3,352)

Deferred revenue

1,709

(727)

Net cash used in operating activities

(2,341)

(3,613)

Investing activities

Additions to property, plant and equipment

(237)

Proceeds from sale of investments

2,436

Change in notes receivable

194

Net cash (used in) / provided by investing activities

(237)

2,630

Financing activities

Bank overdrafts

(374)

Funding from PPP Loan

1,404

Payment of deferred purchase price

(397)

Payment of deferred payroll taxes

(100)

Net proceeds from the exercise of options for common stock

58

Net proceeds from issuance of common stock

8,663

Dividend paid to shareholders

(1,047)

Principal repayments of financing leases

(864)

(296)

Net cash provided by financing activities

6,710

337

 Increase / (decrease) in cash and restricted cash

4,132

(646)

Cash, and restricted cash, beginning of year

7,567

8,213

Cash, and restricted cash, end of period

$

11,699

$

7,567

Supplemental cash flow information:

Interest paid

3

28

Income taxes paid, net of refunds

(395)

507

Non-cash investing and financing activities:

Acquisition of right-of-use assets

1,598

 

Pioneer Power Solutions, Inc. (PRNewsFoto/Pioneer Power Solutions, Inc.)

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/pioneer-reports-fourth-quarter-and-full-year-2021-financial-results-backlog-more-than-doubles-in-three-months-setting-the-stage-for-rapid-growth-in-2022-301515310.html

SOURCE Pioneer Power Solutions, Inc.

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