Earnings call transcript Q4 2022

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Operator

Good day, ladies and gentlemen, and welcome to the Pioneer Power Solutions 2022 Fourth Quarter and Full Year Financial Results Conference Call.

At this time, all participants are in a listen-only mode.

Following this discussion, the call will be opened for questions. [Operator Instructions].

I would now like to turn the call over to Brett Maas of Hayden IR. sir. ahead, go Please

Brett Maas

of welcome. Chairman today Walter and and and Financial and by Michalec, be Nathan Officer, CEO President Murickan, Mazurek, Chief Geo Power The you Mobility. will call hosted Chief Pioneer Thank Executive Officer;

be discussion, opportunity business over the to Q&A this as recent the review fourth the Following full-year a We well financial discuss on results call. session highlights. will there appreciate to participants quarter and as

being you we webcast. recorded get is started, this Before and remind that me call let

During assumptions statements this refer the earnings call. make of Please earlier results may contained in uncertainties forward looking today, based on actual statements. are the looking content materially. call, management subject to and These the current and risks cause issued to differ statements the expectations releases applies to cautionary could and text that to which forward are regarding

Chairman Nathan Nathan, I please call over would to ahead. to the now and CEO. turn Mazurek, like go

Nathan J. Mazurek

and all afternoon Good Brett. thank us you, for today. you Thank joining

Throughout increased a in $XX and of about specifically generation backlog to was and We strong conceived XX% as $X.X year XXXX to million. growth talked XXXX, for solid in and The net for result products increased and income last reported of revenue demand, our These to We revenue distributed increased produced growing earnings growth expected to as the and highlighting solutions $X.XX been target the quarter rapidly million. quarter nearly widespread year in a of vehicle million. full-year out we share customer the fourth of an a three and end XX% $XX.X tripled we the the markets. and laid came aggressive new orders interest. elements strong electric our have together XXXX as months

positive year did inclusive in quarter E-Boost operating expect EPS than benefit generate projecting from XXXX cash performance While to extend fourth and of we the quarter the efficiencies, ahead timetable platforms. of our full-year favorable and we product XXXX continued expected referenced mix and and fourth of a product last for E-Bloc are the indeed higher that we investments

essentially EPS leverage annual our annual an to projected basis. point sustainable operating and achieve us reached have improved on We volume a where enables

While volatility $XX some and and million for bottom our quarter $XX to projecting full-year representing expect we influence million are full at income. both and margin between still a in to XXXX, quarter least expansion lines we positive in continued top XX%, rate year of growth revenue, XXXX, net

XXXX, as note future. near have forwards to approximately is we net income in operating $XX.X net XX, shelter December important It available also the million of in carry that to taxable loss

years at record business I a As three level XXXX our our XX, noted ago. December earlier, for was over divested we transformer million since us backlog $XX.X

production our Angeles an our a From capacity for essentially a we planning manufacturing for is Los facility XXXX actively and XXXX planning expanding in this perspective, point. at capacity are

and we E-Boost directly noted, two catalysts. E-Bloc our secular durable As have address solutions

peak allows these inputs, internal gas resilience. cells, all to peak more protect of control skimming, to compact users additional any existing to natural storage, general and scheme protection allows facilities without the one like outdoor control if than designed circuit system. electrical doing and manage, integrated, upgrades switch an is of or specifically E-Bloc battery E-Bloc their fuel and effectively and sources power E-Bloc facilitating system, engines power. solar shaving, source electrical transfer energy for add user

skid in mounted Finally, a compact package. E-Bloc all competitive presents outdoor these benefits

for is uptime well data facilities all have E-Bloc as distributed demand. as these location generation prisons. for markets facilities and living businesses their physical large with primary addresses really power like hospitals, verticals water initiative The supermarkets been senior our and multi expected E-Bloc sensitive just intense utilities, and retailers getting started and such power centers, squarely a as To-date, footprint

a we for E-Bloc among our XXXX, $XX of from well others solution power well. system the box order announced manufacturing centers December E-Bloc as are retailer. million big as evaluating Other major facilities data In and a retailers as

won market order significant first resilience us from lower more represents to carbon During for data XXXX, over next the our and for we believe we diversified and center owners years footprint. as a and continue package the push data several opportunity market developers a this a center

massive automakers awarded new to the on as largest infrastructure States October E-Bloc million we delivery vehicle us electric and in that $X campus United In innovative a of which year, production. of world integrate an one of power for last announced part in focus their order manufacturing the the their battery of will

water of exciting Finally, our quarter utility first the U.S. than an an fourth we water our order use during million utility order new $X of is expanding more backlog representing XXXX. for for This and case. significantly won

deployed as enabling costs carbon part system, avoid energy will footprint. units better utility sophisticated authority a reduce utility its multiple We control water be delivery the utilization, its providing of be power of E-Bloc and to a to water distributed disruption, the water manage

the deliver to of quarters different expect XXXX California. and We to three these E-Bloc second systems locations in in third Central

platform. our to Turning mobile E-Boost charging

a solution. and solution of a formally introduced We nearly continue mobile old, increasing our interest year XXXX. been anytime charging is to see in half anywhere having November This in easy now

the is reminder, several of platforms. comprised E-Boost a As portfolio

is vehicles EVs. truck (Generator on the with mobility dispatchable enables charging thereby brings E-Boost and capacity demand for convenient skid our with a and helping charging easy version forklift depots truck EV EV facility electric EV Truck) convenience location, owners and a to trailer. location vehicles any services in that G.O.A.T. mounted any range ultimate a footprint. anywhere high a of and charging on is brings car to on and smallest Mini provides gives high a charge else capacity a way just dealerships an within option E-Boost charging and charging It demand of first eliminate convenient of their onboard mounted providing This EV that at anxiety.

that with on and higher trailer mobility that E-Boost the short solution and as notice. Mobile balances mounted of effort for can is capacity charging minimal EV need be such solution the a relocated

multiple on other power with available speed E-Boost convenient at emergency the especially pod provide provides DC all or elevated power charging, more situations stationary needs power also moved or in be backup as is and available necessary. vehicles the such and connectors and power Like outage fulfill E-Boost cultural customizable as high businesses, specific The source options Mobile demand it to can to charging. four large sports and high for other E-Boost charging fast solutions, service a solution for can the can can pod simultaneously. board. gatherings EV serving events, outlets mostly capacity towing speed be higher with if

and dealers, their electric, manufacturers, school customers target have To-date, markets electric for delivery providers, air and trucks, (ph), equipment future and fleet vehicles, of the Other truck package [eptol] and operators sprayers. skis, off esports ejet highway eboats, takeoff companies, management aircraft or eoff like included bus agricultural E-Boost and primarily and include vertical, the taxis, E-Boost bus road etractors associated mining landing access snowmobiles, like. even

NEVI incentives companies Electric adoption. to demand and program policies to charging in the and ultimate work NEVI environmental stations catalyst are be economic provide that accelerating infrastructure. XXXX and are obvious the funding for state example, and domestically charging unfold provide program to businesses a U.S. the Infrastructure to is and charging national business Vehicle with or us interstate providing expect National that network in order we as latest tailwinds, The federal the grant a federal serious We bidding longer Beyond associations highways,

are Company trailer benchmark solution Fleet just E-Boost appealing excitement rural from highways offering. to mounted an especially in platform of January, in continued fastest is announced two Our serve products the In to the we Demand nation's E-Boost uneconomical. grow solution and nation's our fleet's ordered Merchant's merchant XXXX. underserved infrastructure parts EV Fleet, permanent as regarding that larger solutions E-Boost and has solutions where charging growing Management

fleet using system selected system. E-Boost current it battery built sustainably Merchant's propane with is powered powered solar generator E-Boost and direct a mobile, delivers fuel fast an off grid resiliency because storage in Our a charger

as evidence more simply adoption leading on void. that sufficient. EV fill not those of charging represent EV EV that infrastructure regular needs us the the is the have and adoption This is for edge We they and order movement ideal existing customers yet of unique

fleets. fuel commercial moving true we a of school February, charging way particularly by already electric industrial we reduce units to is join has well and bus and also reached significantly quickly This customers, mounted in The the the and as skid announced sales employees organizations solutions and as this charging XXXX. leading outpaced EV and additional costs. environmental a for delivery Where have sectors. manufacturer Many sold options purchases warehouses is are in the manufacturer. impact infrastructure. In company EVs have clear, to are to bus as These built units particular electrification need

continue the infrastructure well with airport E-Boost use waiting arrive buses, to new ability Vietnamese As this shipments electric shipping January cases, EVs Their permanent but as disembarked recharge authorities we as the move units of add they reliance XXXX, through to product need invested shuttles including they passenger behalf our overseas to are and it. of the ability so large their and may to that they a EV further we as of E-Boost fast are as charge Francisco from are passenger in for to terminal. fulfill the San EV we vehicle delivered our to on unloaded year, market manufacturer continued in Port on in vehicles is affirmation two that

important and As and fleets demand mobile increasingly will electrified, are this niche. charging become fills E-Boost unique on

E-Boost generation us significant expect drive we in to XXXX. continue to profit growth result, a As and for

Walter let to over financial to results. CFO our me the turn that, our call With discuss Michalec

Walter Michalec

Thank afternoon, good Nathan, and you, everyone.

to the note unaudited release the today, I'd these into dive earlier that results numbers, we with financial was before earnings issued results. along like discloses financial First, that

increased which Pioneer’s up Power T&D quarter million Revenue manufactures our Critical million XXX% revenues million. solution, XX%. segment, $X.X manufactures our was million. $X.X to Sequentially, E-Boost or year-over-year. up X% Solutions marginally increased And which E-Bloc $X nearly from revenue XXX% segment, to our fourth quarter were fourth $X.X

gross manufacturing was than or profit XX% a for utilization XX.X% the gross systems power of due to an the compared margin $XX,XXX a quarter, doubled profit the quarter revenue, in equipment. quarter Gross and The last fourth sales in a margin high a Sequentially, gross driving to mix higher of fourth during or million improved gross gross compared third more margin year. margin X.X% of E-Bloc our margin gross $X.X favorable was ATS increase with to margin a

of Approximately, This ago was Selling, $XXX,XXX compared in and solutions. of XXXX, in year also XX% sales, a million compensation. intentional demand to revenues spending based decrease expenses E-Bloc of E-Boost $X.X administrative general $X of SG&A quarter these drive for SG&A quarter. stock a in approximately and personnel quarterly our of the fourth or targeting XX% to the and solutions. includes to million related for marketing, for $XXX,XXX is designed incremental prototypes new and investments when

We investments we to through and XXXX these as build XXXX X in grow. new they continue business as expect lines

SG&A. costs wage key including a higher Finally, and role benefits salaries played in

$XX.X up $XX.X Turning million $XX full-year XX% XXXX. results. solutions XX% year increased T&D the was million. percent from to segment the to our Revenue from in Revenue for million

While $X.X. from Power Critical revenue our segment X% to increased

million to of $X.X $X.X or or gross profit was million profit Gross margin. gross of a compared sales X.X% XX.X%

in was compared operating or of or share loss $X.X XXXX $X.XX per last per loss last to Net net compared million million million loss share a $X.XX $X Our year. $X.X $X.X year. was to million

$X.XX bank of cash including debt represents related of notes of This Turning XX, to to had of December the maturity at at of XX, We $XX.X our the at $X.X $XX.X receipt the December zero transformer million reflects December cash compared to units share in million cash, XXXX. cash million in XX, This XXXX. from the balance per XXXX. of sale restricted and XXXX two cash balance approximately sheet. business

that are near investments to are cash our needs. address we capitalized and Accordingly, sufficiently confident we term

we with the backlog can As to Nathan grow as in significant of XX% income compared our when in accelerating revenue continued we expansion as solutions least by expect primarily margin deliver our XXXX at and to new said, and growth based on we believe demand XXXX. well net XXXX positive

expect and earnings also generate net We per positive share. to full-year income

for operator concludes This investors. to questions I remarks. now the from the my turn call back any

Operator

session. time you. and at gentlemen question-and-answer Ladies will Instructions]. be a Thank this conducting [Operator we

from the Sameer of question. proceed Joshi H.C. Please with your first question comes Wainwright. with Our line

Sameer Joshi

related XXXX? Hey, customer to questions and during from strong My mentioned orders my and major on should retailer prepared is first additional a congratulations guys. in that taking E-Bloc Thanks you your flow. that The we question for quarter. expect the remarks orders order

Nathan J. Mazurek

that they're units of we They We inclusive in next for additional have They've produce targeted XX, expect of them. over it We the They're the hundreds did targeting almost XXXX. monitoring. XX how stores. orders seeing years. XXXX the They're several goes.

any would expect we any XXXX. Frankly, so revenue which those item more and of yes, depending would projections us. in delivery before So forth, for including a don't their on these expect make orders orders. I schedule that midyear, our of XXXX which We're for not shipping

Sameer Joshi

E-Boost Got least of in of should we in deliveries you terms you're know expecting in it be front, it. or against on traction XQ XQ, for look or I we E-Boost? Understood. a But expect orders at at And the how the terms of what orders, these do lot -- like should pipeline, seeing

Nathan J. Mazurek

Right.

should is going it to going going and be to I'd So be some is quarter. third from in for majority orders in it's May, the E-Boost very the We exciting most Really or going to But units. say most to announcing for us not it of E-Boost doable fourth third quarter soon. quarter. of announce we're itself, be, April fourth the be for if deliveries are almost

Sameer Joshi

general the comment four be will there And during quarters, I sequential growth. in think heard you lumpiness cadence mentioned fourth about during quarters but also Understood. I the the

look Just quarters understand wanted will to how the the during year.

Nathan J. Mazurek

Yes.

I even something to we're leave The on some not the if escort and nobody's that they available are side, the that these especially on changes that we larger, police that E-Bloc March is going problem have even then gets way, think volatility. through whatever know if if is getting jobs going for to larger doesn't don't XX, reason to the always I were it pushed, so highway happen quarter. exactly sometimes fault. think

in had Nowhere near we the that XXXX. lumpiness

stable we would anywhere looking that then again be second, the say that to I'm And XXXX. will fourth sort had light third not I quarters the close the in if quarter. for first almost the So probably out, and quarter lightest

Sameer Joshi

receivables the receivable, in Got it. high just also may sequentially. now And quarter? I timing accounts lumpiness due delivery explain are the it's I of quite also next is guess guess of this because and which the

Nathan J. Mazurek

Yes. Correct.

it's So to not progress, would on lot don't billings -- receivable of It's but large them. about I that and side. say large with E-Bloc most, And timing. also on I more We're the say most all want go of with also projects. a dealing -- with the a portion. There's

job. tell kind tale of So it's the even it doesn't full of the

Sameer Joshi

that special Got just these it. really one-time here muted should or came is just Was And slightly in we impressive. was forward question gross boost levels talked it there utilization here? or any margins data you The and from going expect the sales mix maybe about?

Nathan J. Mazurek

so say, the went that. for product thank fast, than for would hours super-efficient labor sometimes it you up less on long. that they're I that jobs picking of mix more Yes, some sitting was for accumulate Yes, larger smaller units tend hours just to because I

for what but the it's the definitely in So at least far a That from be muted it we few yes, was quarter. fourth first did away probably super, not super it'd being favorable. bit said, quarters,

Sameer Joshi

it. Got

Nathan J. Mazurek

going to right muted you. the way your think I'm about Thank borrow it. is And to word

Sameer Joshi

lower expense And was the course, SG&A it higher. last of trend. just one sequentially, operating was on year-over-year, actually

even during quarters? So going we make expect million to to T&D say north four than should Or about million when of next pronounced in like you or are just $X invest, we should you previous. the continue $X expect more

Nathan J. Mazurek

too. Yes. you for And that thank noting

we million internally, more less. are assuming as about So we're $X everything, quarter, or a looking through

Sameer Joshi

to on to probably good positive that's line operating -- Good about but that. just That has accounting but revenue EPS luck your to explains and accounts guidance. deferred because I receivables had Maybe this its curious provides Well, – increased, a more you was that -- question. good is also know question, quite that should the actually leverage just item one related one just that. bottom

Nathan J. Mazurek

think Okay, take Walter you this I one.

Walter Michalec

Thank you, question. Sameer. Great Sure.

E-Bloc orders all You're these that billings large to for It's we on the absolutely right. really the out due issue progress side.

Sameer Joshi

it. Got

Okay. questions. luck for That's and me. Good all my thanks taking from

Nathan J. Mazurek

Sameer. welcome You're

Operator

hand There questions no Instructions]. you. back Thank I'd management closing the remarks. queue. to further for [Operator the like in are call to

Nathan J. Mazurek

and we call. support. forward on for time to Have all next again And as evening. you our you updating a all your always, great Thank look

Operator

your and teleconference. for Thank Ladies you conclude gentlemen, today's participation. this does

You this may a and lines wonderful disconnect your at day. have time

Pioneer Power Solutions (PPSI) 30 Mar 232022 Q4 Earnings call transcript