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
Accelerating Growth of e-Bloc and E-BOOST Products Validates Demand for Pioneer’s
Innovative Solutions for Distributed Energy and Mobile EV Charging Markets
Fort Lee, NJ, 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
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 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
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.
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.
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.
Brett Maas, Managing Partner