Pioneer Power Solutions, Inc. · NASDAQ:PPSI
Pioneer Power Solutions — Investor Presentation (March 2018)
21 slides from Pioneer Power Solutions's investor presentation, March 2018
Slide 1: Pioneer Power Solutions, Inc. Investor Presentation
Pioneer Power Solutions, Inc. Investor Presentation ©2018 Pioneer Power Solutions, Inc. March 2018
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 manufacturer of highly customized electrical equipment Focus on niche applications and service within large, growing market segments for power equipment – Utility, Industrial, Commercial Balanced mix of revenue streams – Project-based, custom engineered equipment –
Slide 4: Large and Diverse End Markets
Large and Diverse End Markets High Growth Cyclical Growth GDP Growth Wind, solar, biomass Office buildings, shopping Office, government and Battery charging centers, airports, hospitals, apartment buildings government/municipal Outdoor lighting Data centers Outdoor lighting Distribut
Slide 5: Our Business Segments
Our Business Segments 2017 Revenue from Continuing Operations: $101.4 million Equipment T&D 85% 15% Critical 39% 100% Power Transformers 61% Service Based on results as of December 31, 2017 Based on results as of December 31, 2017 Transmission & Distribution Solutions Critical Power Solutions Equi
Slide 6: Products & Services Profile
Products & Services Profile Enabling safe and efficient delivery of power via a diverse portfolio of offerings Low Voltage Medium Voltage and Liquid-Filled Generator Segment/Product Category Distribution Transformers OEM Transformers Transformers Sales & Service Gross Margin % At Below Above Above (
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 T&D Segment Medium and Low Voltage ON-SITE POWER GENERATION Dry-
Slide 8: Customers
Customers Strong customer retention rate of ~85% for 2017 Revenue Distribution Utilities 2017 Revenue from Continuing Operations: $101.4M Industrial 19% 25% Distributors Utilities Commercial and OEM 56% EPC, Commercial and Industrial EPC Firms and Distributors -8-
Slide 9: Investment Highlights
Investment Highlights Attractive portfolio of highly engineered niche products Serving multiple large addressable markets Leveraged to growing parts of the economy – Positive Secular Trends – grid infrastructure, data centers, alternative energy, electric vehicles, energy storage, high-speed r
Slide 10: Industry Size and Structure
Industry Size and Structure Service Life of the U.S. Electrical Infrastructure (a) Large and Growing North American Market Aging Power Grid 42% 50% – Built more than a half century ago – Nearly a majority of T&D infrastructure is near or past its useful service life Demand for reliable power 5
Slide 11: Growth Strategy
Growth Strategy 1 EXPAND PRODUCT / SERVICE OFFERINGS • Continued migration towards more highly engineered power distribution solutions • Maximize sales productivity across portfolio 2 DERIVATIVE PLAY Targeting: Serving as a business enabler and critical component provider for fast-growing energy sto
Slide 12: Recent New Business Developments
Recent New Business Developments Awarded New Contract for Network Transformers – Selected in a competitive bid process by a regional, regulated electric and natural gas utility serving more than 300,000 natural gas and 400,000 electric customers in a larger, Southern city – Five-year contract – Ad
Slide 13: Financial Overview
| |S Financial Overview
Slide 14: Summary Financial Position
Summary Financial Position ($ millions) 12/31/2017 12/31/2016 Cash & cash equivalents $0.2 $0.2 Current Assets $47.1 $46.2 Long-term Assets $22.6 $31.2 Total Assets $69.9 $77.4 Current liabilities $45.7 $43.7 Long-term debt, net of current maturities $6.7 $4.0 Total liabilities $52.4 $51.2 Total sha
Slide 15: Summary Operating Statement Data
Summary Operating Statement Data ($ millions) Revenue (a) Gross Profit (a) (% growth) (as a % of revenue) $22.1 $97.9 $99.6 $101.4 $20.0 $19.4 $87.6 $17.5 22.2% 18.2% 19.7% 18.9% +12% +2% +2% +5% 2014 2015 2016 2017 2014 2015 2016 2017 Adjusted EBITDA (a) (b) (as a % of revenue) $9.8 $8.9 $6.1 9.8%
Slide 16: 2018 Outlook and Growth Drivers
2018 Outlook and Growth Drivers 2018 Outlook Revenue growth from continuing operations in the high-single-digits Adjusted EBITDA higher than 2017 Adjusted EBITDA of $8.9M Expected Revenue Growth Factors Expected Profit Growth Factors T&D Solutions Segment T&D Solutions Segment Growth primarily
Slide 17: Contact Us
Contact Us Corporate Headquarters: Investor Relations: Pioneer Power Solutions, Inc. Brett Maas 400 Kelby Street, 12th 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 - 17 -
Slide 18: Questions & Answers
Questions & Answers
Slide 19: Supplemental Financial Schedules
Supplemental Financial Schedules
Slide 20: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (In thousands, except per share data) Three Months Ended Year Ended December 31, December 31, 2017 2016 2017 2016 Reconciliation to Adjusted EBITDA and EPS Net (loss) / earnings (GAAP measure) (10,022) (2,148) (9,344) (1,063) Addbacks: Loss from discontinued opera
Slide 21: Key Market & Ownership Statistics
Key Market & Ownership Statistics Market Information Stock Trading History Ticker Symbol (NASDAQ): PPSI Recent Closing Price (3/26/2018): $7.05 Shares Outstanding (M): 8.7 Market Capitalization ($M): $61.4 Freely Traded Float (M): 3.3 Valuation Measures Shareholder Breakdown Enterprise Value ($M): $
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