Pioneer Power Solutions, Inc. · NASDAQ:PPSI
Pioneer Power Solutions — Investor Presentation (November 2015)
26 slides from Pioneer Power Solutions's investor presentation, November 2015
Slide 1: Pioneer Power Solutions Investor Presentation
Pioneer Power Solutions, Inc. Investor Presentation ©2015 Pioneer Power Solutions, Inc. November 2015
Slide 2: Forward-Looking Statements
Forward‐Looking Statements This presentation contains certain "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," "
Slide 3: Company Snapshot
Company Snapshot A diversified electrical equipment manufacturer, sales Transmission & Distribution Solutions and service company Liquid‐Filled Transformers – Headquartered in Fort Lee, NJ 1995 – ~500 employees in U.S., Canada and Mexico Dry‐Type Transformers Focus on niche applications and serv
Slide 4: Large and Diverse End Markets
Large and Diverse End Markets Alternative Energy OEMs Backup Power Primary Power Wind, solar, biomass Battery charging Data centers Independent power plants Commercial Construction Data centers Hospitals Remote power Drive systems Prisons Military Office buildings, shopping E
Slide 5: Our Business Segments
Our Business Segments 2015E Revenue: $115 million (a) Engineered Products Equipment 65% 65% T&D Critical 80% Power 20% Recurring Service Catalog Products 35% 35% Transmission & Distribution Solutions Critical Power Solutions Equipment that distributes, controls, conditions and monitors Onsite po
Slide 6: Products & Services Profile
Products & Services Profile Low Voltage Medium Voltage Liquid‐ Switchgear & Segment/Product Low & Medium Generator Distribution & OEM Filled Generator Category Voltage Switchgear Sales & Service Transformers Transformers Transformers Controls 2015E $29 $19 $30 $13 $23 $1 Revenue ($M) Low (equipment)
Slide 7: Pioneer's Position in the Electrical Grid
Pioneer’s Position in the Electrical Grid GENERATION TRANSMISSION DISTRIBUTION Power Transformers Transmission Power Substation Distribution Station Substation Distribution / Control Equipment Solar Liquid Filled Transformers Wind Farm Industrial/Utility Switchgear T&D Segment Medium and Low Voltage
Slide 8: Customers
Customers Revenue Distribution Utilities 2014A Revenue: $92.2 Million Industrial Utilities 30% Distributors and EPC Firms 50% Commercial Industrial 8% Commercial 12% EPC Firms and Distributors >80% of 2014 revenue originated from repeat customers ‐8‐
Slide 9: Investment Highlights
Investment Highlights Profitable core business poised for accelerated growth Stable, Profitable Business Growth Opportunities 8% organic growth (a) (vs 4.7% for industry) Evolving grid requirements – Recurring blue chip customer base – Increasing demands and requirements for – Over 80% of 2014 r
Slide 10: Industry Size and Structure
Industry Size and Structure Large and Growing North American Market Value of U.S. T&D Equipment Demand ($Bn) (a) – Utilities represent the majority of demand (53%)(a) 6% – Next are industrial/nonutility generators (32%)(a) 7% – High diversity of product and market niches 2014 – The majors: ABB, GE
Slide 11: Industry Growth Drivers
Industry Growth Drivers Aging Power Grid Service Life of the U.S. Electrical Infrastructure (a) Built more than a half century ago, designed for our 100% needs at the time, has not changed since 75% 42% 50% Nearly a majority of T&D infrastructure is near or past its useful service life 50% Deman
Slide 12: Growth Strategy: Organic and Acquisitions
Growth Strategy Organic Acquisitions EXPAND PRODUCT/SERVICE OFFERINGS STRATEGIC FIT Continued migration towards more Broaden range of solutions by augmentation of highly engineered power distribution solutions. technical expertise, new and existing sales Maximize sales productivity across portfolio
Slide 13: Acquisition and Integration History
Acquisition and Integration History Original business acquired from Schneider Seven Acquisitions Completed Since 2010 Electric S.A. in 1994 (Pioneer Transformers Ltd.) – Cornerstone for future expansion – $30MM of acquisitions completed since 2015 Pacific Power Systems Integration (Aug) Revenue: $
Slide 14: Financial Overview
Financial Overview
Slide 15: Financial Position
Financial Position ($ millions) Condensed Balance Sheet ($M) Liquidity Measures ($M) 06/30/15 06/30/15 Assets Cash and cash equivalents $ ‐ Current assets $ 33.7 Accounts receivable 14.7 Current liabilities (29.5) Inventories 15.6 Net working capital $ 4.3 Prepaid expenses and other current assets 2
Slide 16: Summary Operating Statement Data
Summary Operating Statement Data ($ millions, except per share data) Revenue ($M) Gross Profit ($M) 120 30 105.6 92.2 25 21.8 90 88.2 84.0 20 18.9 19.4 18.2 68.8 16.0 60 55.3 15 47.2 11.6 42.0 10.3 10 9.1 30 5 +46% +22% +5% +5% +32% 24.6% +25% 23.2% +23% 22.6% 24.7% 19.7% 21.7% 18.7% 18.4% ‐ ‐ 2010
Slide 17: 2013 to 2015 Revenue Bridge
2013 to 2015 Revenue Bridge ($M) 150 Original guidance of Original guidance of Original guidance of $89 ‐ $95M $92 ‐ $96M $110 ‐ $120M LA switchgear First full‐year for LA business continues at switchgear plant, OEM project growth ~100%+ growth, All‐time record year expands rapidly in continues, new
Slide 18: 2013 to 2015 Adjusted EBITDA Bridge
2013 to 2015 Adjusted EBITDA Bridge ($M) 9 8.9 Operating losses from ramp‐up growth phase narrowing, aided by cuts and Pacific acquisition Management All‐time record year. changes take effect, Increased OEM, strong new/existing 1‐month results medium voltage & customer orders in 6 post‐acquisition h
Slide 19: 2016 Revenue & Profit Growth Drivers
2016 Revenue & Profit Growth Drivers Expected Revenue Growth Factors Expected Profit Growth Factors T&D Solutions Segment T&D Solutions Segment Siemens renewal and expansion Facility Consolidations – DOE 2016 requirements, higher pricing (a) – Quebec dry‐type transformer production to – 80% volu
Slide 20: 2015 Guidance and 2016 Outlook
2015 Guidance and 2016 Outlook Full Year Assumptions 2015E Guidance 2015 Guidance ($ millions, except EPS) 2014A 2015E Δ% Revenue growth of 25% at mid‐point of range, T&D Solutions $86 $85 ‐ 95 ‐1% to 11% in face of Canada economic & oil sector conditions, unfavorable FX fluctuation Critical Power
Slide 21: Investment Summary
Investment Summary Stable & profitable core businesses Recurring blue chip customer base Aging North American electrical infrastructure needing replacement Increasing demands and requirements for grid system stability & efficiency Rising investment in on‐site backup power & distributed gen
Slide 22: Contact Us
Contact Us Corporate Headquarters: Investor Relations: Pioneer Power Solutions, Inc. Brett Maas 400 Kelby Street, 9th Floor Managing Partner Fort Lee, NJ 07024 Hayden IR, LLC (T) 212.867.0700 (T) 646.536.7331 (F) 212.867.1325 [email protected] www.pioneerpowersolutions.com www.haydenir.com ‐ 22 ‐
Slide 23: Questions & Answers
Questions & Answers
Slide 24: Supplemental Financial Schedules
Supplemental Financial Schedules
Slide 25: Reconciliation of Non-GAAP Measures
Reconciliation of Non‐GAAP Measures (In thousands, except per share data) Six Months Ended Years Ended December 31, June 30, Last 12 2010 2011 2012 2013 2014 2014 2015 Months Reconciliation to Non‐GAAP Net Earnings (Loss) and EPS: Earnings per share from continuing operations (GAAP measure) $ 0.55 $
Slide 26: Key Market & Ownership Statistics
Key Market & Ownership Statistics Market Information Stock Trading History Ticker Symbol (NASDAQ): PPSI Recent Closing Price (11/12/2015): $4.38 Shares Outstanding (M): 8.7 Market Capitalization ($M): $38.1 Freely Traded Float (M): 4.0 Valuation Measures Major Shareholder Ownership Information Enter
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