Pioneer Power Announces Filing of Annual Report on Form 10-K for the Fiscal Year Ended December 31, 2023
Reaffirms Full-Year 2024 Financial Guidance
Expects Exceptionally Strong Second Half of 2024
Fort Lee, NJ, July 26, 2024 / BUSINESS WIRE / Pioneer Power Solutions, Inc. (Nasdaq: PPSI) (“Pioneer” or the “Company”), a leader in the design, manufacture, service and integration of electrical power systems, distributed energy resources, power generation equipment and mobile electric vehicle (“EV”) charging solutions, today announced the filing of its delayed annual report on Form 10-K.
Financial Highlights for Full Year 2023, as compared to 2022 (restated):
- Revenue was $41.5 million, as compared to $25.9 million during 2022, an increase of 60.3%.
- Gross profit was $8.4 million, or a gross margin of 20.1%, as compared to $2.8 million, or a gross margin of 10.9%, for 2022. Gross profit increased 196% in the comparable periods.
- Loss from operations was $2.7 million, compared to a loss from operations of $5.8 million during 2022, a $3.1 million improvement year-over-year. The Company recognized $1.5 million of non-cash, stock-based compensation expense during 2023, as compared to $1.0 million during 2022. Additionally, the Company recognized $885,000 of research and development expense during 2023 and none during 2022.
- Net loss was $1.9 million, or $(0.19) per share, compared to a net loss of $5.4 million, or $(0.56) per share last year, an improvement of $3.5 million.
- The Company had $18.2 million of federal net operating loss carryforwards as of December 31, 2023.
- Total backlog increased to $45.2 million as of December 31, 2023, up 18% as compared to $38.3 million as of December 31, 2022.
Explanatory Note on the Restatement of Previously Issued Financial Statements
As previously disclosed in our Current Report on Form 8-K filed with the Securities and Exchange Commission on June 6, 2024, in connection with the preparation of our consolidated financial statements for the fiscal year ended December 31, 2023, the Audit Committee of our Board of Directors, concluded that certain previously filed financial statements should no longer be relied upon and should be restated. The restatement relates to the recognition of revenues and costs associated with customer contracts that require performance obligations to be satisfied over time and is explained in more detail within the recently filed Annual Report on Form 10-K for the year ended December 31, 2023. The restatement adjustments had no impact to the Company’s cash on hand or total cash flow from operations. Cumulatively, the restatement adjustments will not change the profitability of the Company and will net to zero over time as the Company completes its customer contracts. Further, the changes resulting from the restatement adjustments led to the recognition of the majority of costs for certain contracts prior to the recognition of the majority of the related revenue for those same contracts and, as a result, the Company expects to recognize revenue in 2024 for certain contracts for which it has already recognized the majority of costs in 2023.
2024 Outlook
Based on current customer delivery schedules, management expects to have an exceptionally strong second half of 2024 and reaffirms its expectation for revenue of $52 to $54 million for the full year 2024, which represents year-over-year growth of approximately 30% and EPS of $0.31 to $0.34.
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.”
Conference Call
Management plans to host an investor conference call soon after filing its quarterly results on Form 10-Q for the period ending March 31, 2024.
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, (xiii) risks associated with litigation and claims, which could impact our financial results and condition, (xiv) the Company’s ability to deliver its orders to customers on a timely manner and (xv) the Company’s ability to regain and maintain compliance with the continued listing requirements of the Nasdaq Capital Market.
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