Pioneer Power Solutions, Inc. · NASDAQ:PPSI
Pioneer Power Solutions — Investor Presentation (December 2013)
20 slides from Pioneer Power Solutions's investor presentation, December 2013
Slide 1: Pioneer Power Solutions, Inc. Investor Presentation
Pioneer Power Solutions, Inc. Investor Presentation ©2013 Pioneer Power Solutions, Inc. December 2013
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 Diversified manufacturer of specialty electrical Electrical Transmission & Distribution Equipment transmission and distribution (T&D) equipment Liquid‐Filled Transformers – Headquartered in Fort Lee, NJ 1995 – Built through 5 acquisitions, operations in the U.S., Canada and Mexico
Slide 4: Investment Highlights
Investment Highlights Profitable core business poised for accelerated growth Stable, Profitable Business Growth Opportunities Organic growth of 10+% (2x industry) (a) Evolving grid requirements – Recurring blue chip customer base – Increasing demands and requirements for grid system stability &
Slide 5: 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 BACKUP POWER & DISTRIBUTED GENERATION Commercial & Residential Industrial Users Cus
Slide 6: Market Positioning by Product Category
Market Positioning by Product Category Low‐Voltage Low Voltage Medium‐Voltage Liquid‐ Paralleling Switchgear Product Category Switchboard/ Dry‐Type “Power‐Dry” Filled and Generator Panelboards Transformers Transformers Transformers Controls Sales Velocity Sales Cycle Order Value $ Degree of Customiz
Slide 7: Customers and Markets
Customers and Markets Revenue Distribution Utilities 2012A Revenue: $84.0 Million Industrial Utilities 32% Distributors and EPC Firms 50% Commercial Industrial 9% Commercial 9% EPC Firms and Distributors 89% of 2012 revenue originated from repeat customers ‐7‐
Slide 8: Industry Size and Structure
Industry Size and Structure Large and Growing North American Market Value of U.S. T&D Equipment Demand ($Bn) (a) – Utilities represent the majority of demand (52%)(a) 6% – Next are industrial/nonutility generators (32%)(a) 6% – High diversity of product and market niches 2012 – The majors: ABB, GE
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: Financial Overview
Financial Overview
Slide 12: Summary Operating Statement Data
Summary Operating Statement Data ($ millions, except per share data) Revenue ($M) Gross Profit ($M) 100 30 89.6 84.0 25 75 68.8 21.9 67.0 61.4 20 18.9 16.0 16.6 47.2 13.6 50 15 11.6 10 25 5 +46% +22% +9% 24.6% +25% 23.2% +23% 22.6% 22.1% 24.7% 24.5% ‐ ‐ 2010 2011 2012 YTD 2012 YTD 2013 LTM 2010 2011
Slide 13: Financial Position
Financial Position ($ millions) Condensed Balance Sheet ($M) Liquidity Measures ($M) 09/30/13 09/30/13 Assets Cash and cash equivalents $ 3.3 Current assets $ 30.9 Accounts receivable 12.1 Current liabilities (17.9) Inventories 13.4 Net working capital $ 13.0 Prepaid expenses and other current asset
Slide 14: Current View for 2013
Current View for 2013 Updated Revenue and Earnings Guidance 2013E Guidance Full Year Assumptions 2012A 2013E ∆% Non‐GAAP EPS of $0.76 to $0.82 Transformers $84 $89 ‐ 92 6 ‐ 10% Switchgear/board ‐ 2‐ 3 pos. – Adjusted for dilution of Sep‐2013 Total Revenue $84 $89 ‐ 95 6 ‐ 13% public offering Dilut
Slide 15: 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 16: 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 brett@haydenir.com www.pioneerpowersolutions.com www.haydenir.com ‐ 16 ‐
Slide 17: Questions & Answers
Questions & Answers
Slide 18: Supplemental Financial Schedules
Supplemental Financial Schedules
Slide 19: Reconciliation of Non-GAAP Measures
Reconciliation of Non‐GAAP Measures (In thousands, except per share data) Years Ended Nine Months Ended December 31, September 30, 2010 2011 2012 2012 2013 Reconciliation to Non‐GAAP Net Earnings and Diluted EPS: Earnings per share from continuing operations (GAAP measure) $ 0.55 $ 0.42 $ 0.54 $ 0.3
Slide 20: Key Market & Ownership Statistics
Key Market & Ownership Statistics Market Information Stock Trading History Ticker Symbol (NASDAQ): PPSI Last Closing Price (12/04/2013): $9.01 Shares Outstanding (M): 7.2 Market Capitalization ($M): $64.6 Freely Traded Float (M): 2.5 Valuation Measures Major Shareholder Ownership Information (b) Ent
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