Business
Pioneer Reports First Quarter 2019 Financial Results
FORT LEE, N.J., May 14, 2019 /PRNewswire/ -- Pioneer Power Solutions, Inc. (Nasdaq: PPSI) ("Pioneer" or the "Company"), a company engaged in the manufacture,
About this update from Pioneer Power Solutions, Inc.
[{"type":"text","content":"FORT LEE, N.J., May 14, 2019 /PRNewswire/ -- Pioneer Power Solutions, Inc. (Nasdaq: PPSI) (\"Pioneer\" or the \"Company\"), a company engaged in the manufacture, sale and service of electrical transmission, distribution and on-site power generation equipment, today announced its financial results for the first quarter ended March 31, 2019.\nFirst Quarter 2019 Results and Recent Business Highlights:\nRevenue of $24.7 million, down 9.1% compared to $27.2 million in Q1 2018 Gross margins were 16.6% compared to 19.1% in Q1 2018 Net income of $5.6 million (which included a gain on sale of a subsidiary of $4.2 million, and $1.6 million in income taxes accrued for on the sale), up from a net loss of $574,000 in Q1 2018. Excluding the gain on sale of the subsidiary, and the associated income taxes, net income would have been nominally positive Adjusted EBITDA* of $9.1 million compared to Adjusted EBITDA* of $1.3 million in Q1 2018 Backlog as of March 31, 2019 was approximately $48.6 million, up 2.4% compared to $47.5 million at December 31, 2018, and up 36.0% compared to $35.7 million at March 31, 2018Nathan Mazurek, Pioneer's Chairman and Chief Executive Officer, said, \"The first quarter demonstrates the progress we have made in streamlining our cost structure, as we nearly doubled operating income despite lower revenues and reduced gross profit. We expect revenues to grow as we move through the year. Our overall business is enjoying record levels of demand as evidenced by our ever-growing backlog and we have seen a notable uptick in demand for our transformer business.\" \nSummary Financial Results\nRevenue \nTotal revenue for the three-month period ended March 31, 2019 was $24.7 million, down 9.1% compared to $27.2 million for the first quarter of 2018. For the three months ended March 31, 2019, service revenue decreased by $436,000, or 19.7%, as compared to the same period in the prior year.\nGross Margin \nFor the three months ended March 31, 2019, Pioneer's gross profit was $4.1 million, or 16.6% of revenues, compared to $5.2 million, or 19.1% of revenues, for the year-ago period. The decrease in gross profit was driven primarily by reduced margins on our switchgear sales and generator service business, which are anticipated to normalize during the second and third quarter of 2019. \nOperating Income \nFor the three months ended ...