Business
Power Solutions International Announces First Quarter 2020 Financial Results and the Filing of its Form 10-Q
Gross margin improvement of 1.6 percentage points in Q1 2020 versus last year; Operating cash flow of approximately $24 million contributes to $22 million
About this update from Power Solutions International, Inc.
[{"type":"text","content":"Gross margin improvement of 1.6 percentage points in Q1 2020 versus last year; Operating cash flow of approximately $24 million contributes to $22 million decline in debt during the quarter\nWOOD DALE, Ill., June 30, 2020 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. (“the Company”) (OTC Pink: PSIX), a leader in the design, engineering and manufacture of emission-certified engines and power systems, announced first quarter 2020 financial results and the filing of its Form 10-Q for the three months ended March 31, 2020 with the U.S. Securities and Exchange Commission (the “SEC”).\n First Quarter 2020 Results Sales for the first quarter of 2020 were $105.1 million, a decrease of $10.7 million, or 9%, versus the comparable period last year, as a result of sales declines of $13.4 million and $1.7 million in the industrial and transportation end markets, respectively, partly offset by a $4.4 million increase in the energy end market. Lower industrial end market sales were primarily attributable to reduced demand for products used in the material handling/forklift and arbor care markets. Reduced transportation end market sales are primarily due to lower shipments in the medium duty truck market, which was mostly attributable to the previously disclosed customer-requested acceleration of the delivery of certain engines during the fourth quarter of 2019 that were originally scheduled for the first half of 2020. This negatively impacted sales in the first quarter of 2020, but was partly offset by stronger demand for products used in the school bus market. Higher energy end market sales were primarily driven by increased demand for the Company’s power generation products, including demand response products, partly offset by lower demand for products used within the oil and gas industry. Gross profit was virtually unchanged in the first quarter of 2020 as compared to the same period last year notwithstanding lower sales volume. Gross margin in the first quarter of 2020 was 16.9%, an improvement of 1.6 percentage points versus the same period last year, primarily due to improved product mix and strategic pricing actions, partly offset by reduced operating leverage due to lower sales and higher warranty expense. Operating expenses decreased by $1.9 million, or 8%, versus the comparable period in 2019, in part attributable to lower ...