Pioneer Power Solutions (PPSI) 15 Nov 222022 Q3 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Pioneer Power Solutions, Inc.

Third Quarter 2020 Earnings Results Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Brett Maas. Please go ahead.

welcome. and you, Thank will Officer; by Financial and today and Officer. Mazurek, Chief Executive Walter be call Nathan hosted Chairman The McCall, Chief

to recent the third Following Q&A XXXX financial We will there well quarter the participant as as opened discuss appreciate review this call. highlights. on to be opportunity results the business discussion, session a

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

are release expectations turn and Please CEO. subject to these the to content These During earnings risks posted of Chairman earlier this both statements statements. and the call, assumptions the Nathan regarding I'd Mazurek, to the on differ the forward-looking that in and management uncertainties version prepared like now call in text the the are current call. of ahead. over to results to and statements could refer will today of issued based Nathan, actual contained forward-looking and cautionary make remarks, cause which to go please apply materially.

Thank Significantly, fully all quarter third will momentum fourth to year-over-year believe And to fourth for XXXX. for continue on us expect quarter, growth, expect that for and our and we enable that very delivered year we perspective, compared positive you, revenue also with addressing meet solutions was for year excluding From sequential and This product will that accelerate. secular confident the it's XXXX. this margins issues year. expanded This on our and e-Boost continued and our growth. Based joining thank note to the revenue in in power backlog to revenue base important XX% to us $XXX,XXX a an directly significant we revenue you and generation are investments support guidance important operational On the conference new target a delivery the strategic call. that note. our an into full are are level, of Both projected obviously indeed, evidenced today third These strong initiatives in schedules, segments we end address opportunities distributed strong our the and catalysts as margins challenges we our sales both EBITDA by strong us charging divisions as our last demand signals accelerate orders into Good XXX and in confirmed application that progress afternoon, enjoying Brett. two suites more EV quarter quarter the create. these associated continue to energy our of margins. to and marketing E-Bloc new overhead, verticals. than solutions gross the contribution increase directly tailwinds market these continues gross ongoing quarter and the in and

and skimming protect Let direct E-Bloc the of generation me multiple E-Bloc. such manage, allows shaving, sources all zero-emission with and/or as integrating traditional the to wind, resilience. and start market hydrogen control concept energy inputs, effectively distributed user peak in Distributed options and battery utility general generation including solar, like the facilitating connections. peak these is inputs,

our retailer. In package. from skid-mounted XXXX, $XX competitive of a we solutions addition, these platform December order million major big-box announced compact E-Bloc the provides In in for a distributed outdoor E-Bloc generation

to the this schedule. customers quarter, customer second based reminder, receiving on shipments as the During a delayed were

revenue. XXXX accelerate and expected, fourth quarter, the in the portion revenues in driving a of will this sales significant third we accelerated pace As quarter, believe further

follow-on also the similar beyond. We for stores and additional customer anticipate orders in same from size XXXX

also deploying other and E-Bloc. box this big large market Beyond retailer, are customers additional verticals

represents zero particular data we efficiently sources control initiative. – part to years, the diversified E-Bloc's various center a data over of This footprint. announced and very market opportunity believe and July, a center this to for next net the push was this entry example, resilience large data package carbon us as for it developers point as order into more energy the developers a E-Bloc For a and lower center we past several large integrating market, first zero owners continue energy

user In additional both into with the orders particular fact, we expect contractor market. with us this who end the prime and brought

their and that order the in largest Finally, battery an for will in as million our which part one automakers delivery October, we for E-Bloc manufacturing campus, infrastructure a production. $X focus awarded their electric new us of announced vehicle the cutting-edge world power systems massive of on

and leverage this is now of group users. E-Bloc and developers to Our a early of E-Bloc success to bring focus energy much wider

the Our and new auto scheduled includes plant over current backlog delivered data million including on XX order E-Bloc the retailer, to the major next be orders months, of deliveries well. big-box center to shipments from the XX to $XX.X $XX million as

We E-Bloc next the expect from over to benefit years. order continued several growth

platform. charging mobile E-Boost our to Turning

EV to anytime the business of solution. To one mobile see one delivery created charging continue only we three interest charging platforms. ago, ago, in our mobile year growing anywhere We year comprised E-Boost review,

GOAT First, truck-mounted charging solution, EV This provide generator is charging can which for - a which G-O-A-T, anywhere. stands fully mobile high-speed is E-Boost truck. on and a

could that and and options cultural forklift large businesses, Mobile or provides available E-Boost with is trailer-mounted relocation and events, short minimal specific skid-mounted Second, relocated for a multiple be or be notice. at effort and on solution could sports portable towing

is electric a to mobility E-Boost such brand In In and a to electrical on-demand available can emergency to we for outlets the provide delivered a three Initial in gas outage, and retention Third, E-Boost multiple addition year, needs power with that as-needed have serve E-Boost All truck passenger vehicle $X are school power the power provide million utilize electric almost high-speed vehicle charging. and primary is manufacturers. EV convenient with task and of year-to-date. EV and on product other bus value that manufacturers hotels charging as solution ideal or casino, backup power the million situations stations, business locations source as have $X solution booked customer EV a designed Pad connectors board. charging been of and/or last charging to of E-Boost platforms almost differentiator. retail stationary can adopters This vehicles. increase as traffic primarily

charging with is of infrastructure. businesses wider E-Boost venues shows actively realizing sales our bus truck vehicles electric fleet group of and add charging clear. units. Sales also aviation are manufacturers, The to strongest to restaurants, want quickly casinos, with sports have Retailers, a concert additional solutions. outpaced move traction hotels, significantly assistant working need the other trade are electrical workplaces on and We dealers providers businesses, and roadside and logistics operators

quarter, new ability cases, they - are the case oceangoing added carriers. including as recharge we new EVs During freight from the use to rapidly disembarked

are profits XXXX. fleets on-demand important E-Boost for and become fills As in electrified, mobile represent and more dynamic charging unique us niche. this growth to increasingly E-Boost and will expect and We more fully

Lastly, EVs we electric and to electric to discuss that, our Walter, These fleets expect converting and near-term developments velocity energy also charging, goal E-Bloc and products our to financial of Officer, energy storage. expand the renewable federal me fixed Chief for results. vehicle the With help to Reduction mobile changing and particular, Act turn e-Boost the incentives In consumer demand will local for our Inflation Financial for and the create incentives will provide vehicle and grow landscape government demand financial charging. and vehicles support and state services. call size let over and this for accelerate the of

Thank you, afternoon, everyone. And Nathan. good

Third year-over-year. were $X.X revenues quarter million, up XX%

and played marketing, of in for relates for third to the increased the year. as also e-Boost of during it related to benefited quarterly cost million compensation in non-cash to This or quarter. was of sales absorption. general administrative role XXXX incentive administrative development our $XXX,XXX when $XXX,XXX the E-Bloc third of XX.X% quarter XXXX, intentional the the compared $X.X during and revenues due is an solutions. big-box increase period from investments increased the was in order targeted key SG&A million and XX% investments systems demand million to higher third sales, power third was the of expense, The to expenses ago of Gross were issued quarter SG&A general includes E-Bloc expenses to XX.X% costs grants to and major or a and approximately selling, Approximately same These our of from the designed ongoing new spending Selling, of revenue product profit $XXX,XXX greater for the quarter, The for consultants personnel solutions. of drive of retailer. $XX in year revenues XX% options $X.X compared in SG&A and these $XXX,XXX margin expense. XXXX. employees driving incremental and the higher quarter for reflecting revenues stock-based

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

$X.XX year quarter. SG&A operating were our investments higher to important loss Operating compared our and third an million negative costs, played that of due benefits, of basic expense. $X.XX net for during $X.X loss quarter a note ongoing share salaries third $X.X $XXX,XXX the share to per of to the way, It's third higher also to loss of XXXX XXXX. during in per business excluding diluted the third expenses. or or most these non-cash operating generated losses wage compared $XXX,XXX in net million units quarter ago positive solutions, of the XXXX e-Boost quarter. loss quarter for was EBITDA corporate our investments and in Finally, Net third the including the quarter E-Bloc stock-based loss another of expenses, compensation was of and a during role corporate a in and Put

cash XXXX. of $X.X September zero balance Turning of to restricted sheet hand the represents to cash share per and debt on had cash of compared $XX.X XX, flows. of This XXXX. XXXX, cash XX, million and at cash at XX, September and We December $X.XX approximately million at statement

related to $X.X sufficiently this address from by a expect of maturity to the end capitalized transformer business. cash to receive we are confident our we As our year notes million sale that of reminder, Accordingly, we the two of in investments. are the near-term approximately

and my Wainwright. year track XXXX our growth year Nathan concludes margin said, our primarily questions. as any demand call grow and question backlog, as to ahead. Thank As our This with of back And XX% for H.C. [Operator remarks. XXXX Amit solutions, meaningful accelerating to revenue to operator full We'll I as first believe further, at are view based Dayal well we on we expect when we least for Instructions] significant expansion go by on the in the XXXX. we margin you. from Please the new turn now expansion. take compared a

you Good everyone. you. Can Thank hear afternoon, me...

clearly. you hear can we Yes,

you, far. Congrats Okay. Thank Nathan. execution on so the

else anything than to that is in Is quarter it the little coming I the supply than... bigger, of issues a curious maybe year. fourth bit about Just little higher guess, or XQ just a causing the be chain rest

It want to the was not for. really on not receive large had they the to - that The all ready did contracted customer units were order. they

in been the of we're receiving now fourth Now the every real week. middle that's terms, They're big turnaround. and the in quarter

it's quarter, So fourth the us rest look the compared and year. the as the for that's outsized, that to gives frankly, confidence why to too of going

correctly, - Okay. you from commented don't if this for follow-on a similar-sized customer Understood. this then know I And I XXXX. caught

So E-Bloc's this going XX is that additional customer? retail to

that only they're thing actually us, the POs chunks. it. know the We what it that's you non-cancelable. only and POs hard We of for for hard talking PO that's backlog about a if [ph] hard in That's got would kinds these that announce are we announced

into So that's few year the convert into little the at more gotten XX, we'll targeted discussing. bit all were but that's their ultimately complete drip beginning, first next XXX yet, units, end about we maybe the they January, talking haven't stores this the plan XXX. or what to and a of they're but a year From that

will that for hopefully. on a So go while,

Nathan, then be And this this the currently XX to Okay. have in of filled Understood. next is backlog sort months? you

is, that backlog backlog, Yes. POs we within scope. us, busy to given we is We typically, maybe typically, XX expect for months. us, should how But for although deliver non-cancelable the everything expand

Understood. Okay.

the to is or that are that yet... from Just the one IRA you are haven't seen having materialize respect conversations that incentives in IRA, you one for last me. something With stemming

definitely of there, different It's it. out parts

though is for most for That's the that really the bus school it's a school high and a so Of incentives the very course, the accelerate per for adoption go example, all but manufacturers, us serious. for does That's that credit as project. different for But and part as buses. projects at not bus of serious districts the impact electric That's specifically parts, incentive. the that accelerates far us. ultimately, financial school school good forth,

much. so you Thank Okay.

welcome very Amit. You're

Instructions] go Please We'll Anthony Akiri, our [Operator take next question Private from Investor. ahead.

I there's impact it new, have Hi. forecast you are these used is market. still about the a or would if But future? used in so sales I there wondering that Or did be no when market market. would what was too early? used guess and the on

It's talking probably e-Boost? you're

Yes.

address it's like way, the too right Yeah, We're market. this in for way the solution we'd it. be the early. only But

early-stage So we'll - see it's nascent right a completely adoption. happens. But what this now, is

So yet. there really is no market used

Thanks. Okay.

You're welcome.

appears would questions like the It no closing back presenters further any I we have Instructions] the to remarks. [Operator to in turn additional your queue. conference for or

and Okay. to Thank Thank updating on your you you. forward support. We our you time next look all for again call.

We this appreciate gentlemen, today's and participation. concludes conference. Ladies your

You may now disconnect.