Business
Power Solutions International Announces Third Quarter 2021 Financial Results
WOOD DALE, Ill., Nov. 12, 2021 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. (the “Company” or “PSI”) (OTC Pink: PSIX), a leader in the design,
About this update from Power Solutions International, Inc.
[{"type":"text","content":"WOOD DALE, Ill., Nov. 12, 2021 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. (the “Company” or “PSI”) (OTC Pink: PSIX), a leader in the design, engineering and manufacture of emission-certified engines and power systems, announced third quarter 2021 financial results. Third Quarter 2021 Results Sales for the third quarter of 2021 were $117.6 million, an increase of $3.2 million, or 3%, compared to the comparable quarter last year as a result of higher sales of $10.7 million in the industrial end market, partly offset by decreases of $5.5 million and $2.0 million within the transportation and energy end markets, respectively. The increase in industrial end market sales was primarily due to higher demand for products across various applications, with the largest increase attributable to products used within the material handling/forklift industry. The decrease within the transportation end market primarily reflects a decrease in sales within the terminal tractor and school bus markets. Lower energy end market sales were driven by decreased demand for the Company’s power generation products. Gross profit decreased by $6.8 million in the third quarter of 2021 compared to the same period last year. Gross margin in the third quarter of 2021 was 9.6% versus 15.9% last year, primarily due to significantly higher warranty expenses, material cost increases, higher tariff and freight costs, and unfavorable product mix. For the three months ended September 30, 2021, warranty costs were $7.3 million, an increase of $4.6 million compared to warranty costs of $2.7 million last year, due largely to higher charges for adjustments to preexisting warranties and lower recognized recoveries in the third quarter of 2021. Operating expenses decreased by $2.3 million, or 12%, versus the comparable period in 2020, mostly due to lower research, development and engineering expenses of $1.1 million and lower selling, general and administrative costs of $1.0 million. Other expense (income), net experienced no activity during the third quarter of 2021 compared to income of $0.9 million last year primarily due to the receipt of life insurance proceeds upon the death of a former employee during the 2020 period. Net loss in the third quarter of 2021 was $7.2 million, or a loss of $0.31 per share, versus net loss of $1.5 million, or $0.06 per share for...