Pioneer Power Solutions, Inc. · NASDAQ:PPSI
Pioneer Power Solutions — Investor Presentation (November 2011)
20 slides from Pioneer Power Solutions's investor presentation, November 2011
Slide 1: Pioneer Power Solutions, Inc. Investor Presentation
Pioneer Power Solutions, Inc. Investor Presentation ©2011 Pioneer Power Solutions, Inc. November 2011
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: Snapshot of Pioneer Power Solutions, Inc.
Snapshot of Pioneer Power Solutions, Inc. Manufacturer of specialty electrical equipment Electrical Transmission & Distribution Equipment headquartered in Fort Lee, NJ, operating through 3 business Liquid‐Filled Transformers units located in the U.S., Canada and Mexico Provides id a range off hi
Slide 4: Investment Highlights
Investment Highlights Stable and Profitable Core Businesses Recurring Blue Chip Customer Base High Long‐Term Growth Potential Aging North American Electrical Infrastructure Needing Replacement Growth of Renewable Energy Sources Needing Connection to the Power Grid Increasing Demands and
Slide 5: North American Footprint
North American Footprint Facilities Location Sq. Ft Lease/Own Description Pioneer Power Solutions, Inc. Fort Lee, NJ 1,500 Leased Headquarters Pioneer Transformers Ltd. Granby, Quebec 50,000 Owned Manufacturing Toronto, Ontario 1,400 Leased d Sales l & engineering Jefferson Electric, Inc. (a) Sales,
Slide 6: Company History and Evolution
Company History and Evolution History Original business acquired by Pioneer’s CEO from Schneider Electric S.A. in 1995 – Produced d d a single, i l low‐power l product d ffor C Canadian di utilities ili i ((one ~80% 80% customer)) – 1995 sales of ~$12M with approximately 50 employees Management
Slide 7: Liquid-Filled Transformer Products
Liquid‐Filled Transformer Products Pioneer Transformers Ltd. Subsidiary Transformer Basics Major Product Categories Reduces or increases voltage of ➲ Power From 300kVA single phase Transformers f transformers through g to electricity traveling through a wire 30MVA three phase with top voltage in 6
Slide 8: Dry-Type Transformer Products
Dry‐Type Transformer Products Jefferson Electric, Inc. and Bemag Transformer Inc. Jefferson Models Major Product Categories Low and medium voltage, distribution ➲ Ventilated Size ranges from 25kVA to Transformers f 100kVA in single phase, and and power transformers for indoor or from 15kVA to 10MV
Slide 9: Transformer Customers
Transformer Customers Revenue Distribution by Customer Type Representative Customers 2010A Revenue: $47.2 Million (a) Distributors, E&C Firms 24% Utilities 48% Commercial 9% 19% Industrial 9% (a) Does not include Bemag which was acquired on July 1, 2011. ‐9‐
Slide 10: Industry Size and Dynamics
Industry Size and Dynamics U.S. electrical equipment industry to grow Value of U.S. Electrical Equipment Shipments 4.3% annually, in real terms, through 2015 2010: $34.6 Billion Transformers represent p 16% of industryy shipments in 2010, up from 13.1% in 2002 Power, Relays & distribution & $5
Slide 11: Growth Strategy
Growth Strategy Acquisitions – Profitable companies with strengths in complementary market niches – Potential for operating efficiencies through integration – Broaden Pioneer’s range of power solutions through more technically‐ advanced products products, new distribution channels and geographic r
Slide 12: Executive Leadership
Executive Leadership Nathan J. Mazurek Chairman and Chief Executive Officer 20+ years of experience in the electrical equipment and components industry Extensive track record of consolidating companies, factories and product lines – Over 20 consummated acquisition, acquisition divestiture divest
Slide 13: Financial Overview
FP PIONEER "a = ES Financial Overview
Slide 14: Summary Operating Statements
Summary Operating Statements ($ millions, except per share data) FYE December 31, 2008 2009 2010 9M2010 9M2011 R Revenue $43 9 $43.9 $40 6 $40.6 $47 2 $47.2 $34 4 $34.4 $50 1 $50.1 % Growth ‐5.5% ‐7.5% +16.3% ‐ +45.5% Gross Profit $9.0 $ $11.9 $ $11.6 $ $7.8 $ $11.7 $ % Margin 20.5% 29.2% 24.6% 22.8
Slide 15: Financial Position
Financial Position ($ millions) Capital Structure Liquidity 09/30/11 09/30/11 Revolving Bank Debt $4.7 Current Assets $23.6 Term Loan Bank Debt 11.9 Current Liabilities (20.8) Capital Lease Obligations 0.0 Net Working Capital $2.8 Current Ratio 1.1x Cash and Equivalents (0.6) Total Net Debt 16.0 Ope
Slide 16: Investment Highlights
Investment Highlights Stable and Profitable Core Businesses Recurring Blue Chip Customer Base High Long‐Term Growth Potential Aging North American Electrical Infrastructure Needing Replacement Growth of Renewable Energy Sources Needing Connection to the Power Grid Increasing Demands and
Slide 17: Contact Us
Contact Us Corporate Headquarters: Investor Relations: Pioneer Power Solutions, Inc. Howard Gostfrand, President 400 Kelby Street, 9th Floor American Capital Ventures Fort Lee, NJ 07024 (T) 305.918.7000 ( ) 212.867.0700 (T) ( ) 305.466.1747 (F) (F) 212.867.1325 info@amcapventures.com www.pioneerpowe
Slide 18: Questions & Answers
Vad PIONEER POWER SOLUTIONS 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) Nine Months Ended Years Ended December 31, September 30, 2008 2009 2010 2010 2011 Reconciliation to Non‐GAAP Net Earnings and Diluted EPS: Earnings per share from continuing operations (GAAP measure) $ 0 47 0.47 $ 1 10 1.10 $0
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