Pioneer Power Solutions, Inc. · NASDAQ:PPSI
Pioneer Power Solutions — Investor Presentation (June 2015)
21 slides from Pioneer Power Solutions's investor presentation, June 2015
Slide 1: Pioneer Power Solutions, Inc. Investor Presentation
Pioneer Power Solutions, Inc. Investor Presentation ©2015 Pioneer Power Solutions, Inc. June 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: 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 Wind Farm ON‐SITE POWER GENERATION Commercial & Residential Industrial Users Customers Pioneer’s focu
Slide 7: 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 ‐7‐
Slide 8: 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 9: 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 10: Growth Strategy
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 11: Acquisition and Integration History
Acquisition and Integration History Original business acquired from Schneider Six Acquisitions Completed Since 2010 Electric S.A. in 1994 (Pioneer Transformers Ltd.) – Cornerstone for future expansion – $28MM of acquisitions completed since 2015 (Jan) Harmonics Holdings, Inc. Revenue: <$1.0 millio
Slide 12: Financial Overview
Financial Overview
Slide 13: Summary Operating Statement Data
Summary Operating Statement Data ($ millions, except per share data) Revenue ($M) Gross Profit ($M) 120 30 100.2 92.2 25 21.8 90 88.2 84.0 20 18.9 18.2 18.6 68.8 16.0 60 15 47.2 11.6 10 28.9 30 20.9 5.4 4.9 5 +46% +22% +5% +5% +38% 24.6% +25% 23.2% +23% 22.6% 24.7% 19.7% 23.5% 18.7% 18.6% ‐ ‐ 2010 2
Slide 14: Financial Position
Financial Position ($ millions) Condensed Balance Sheet ($M) Liquidity Measures ($M) 03/31/15 03/31/15 Assets Cash and cash equivalents $ ‐ Current assets $ 32.4 Accounts receivable 15.5 Current liabilities (27.3) Inventories 13.9 Net working capital $ 5.2 Prepaid expenses and other current assets 2
Slide 15: 2015 Guidance
2015 Guidance Full Year Assumptions 2015E Guidance Revenue growth of 25% at mid‐point of ($ millions, except EPS) 2014A 2015E Δ% guidance range, comprised of: – T&D Solutions: 5% organic growth, despite T&D Solutions $86 $85 ‐ 95 ‐1% to 11% oil sector conditions and unfavorable FX‐ Critical Power
Slide 16: 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 17: 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 ‐ 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 March 31, Last 12 2010 2011 2012 2013 2014 2014 2015 Months Reconciliation to Non‐GAAP Net Earnings and EPS: Earnings per share from continuing operations (GAAP measure) $ 0.55 $ 0.42 $ 0.54 $ 0.84 $ (0.04)
Slide 21: Key Market & Ownership Statistics
Key Market & Ownership Statistics Market Information Stock Trading History Ticker Symbol (NASDAQ): PPSI Recent Closing Price (06/22/2015): $7.60 Shares Outstanding (M): 7.4 Market Capitalization ($M): $56.3 Freely Traded Float (M): 2.7 Valuation Measures Major Shareholder Ownership Information Enter
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