Pioneer Power Solutions, Inc. · NASDAQ:PPSI
Pioneer Power Solutions — Investor Presentation (September 2013)
21 slides from Pioneer Power Solutions's investor presentation, September 2013
Slide 1: Pioneer Power Solutions, Inc. Investor Presentation
Pioneer Power Solutions, Inc. Investor Presentation ©2013 Pioneer Power Solutions, Inc. September 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) Evolving grid requirements – Recurring blue chip customer base – Increasing demands and requirements for grid system stability & effi
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: Liquid-Filled Transformer Product Line
Liquid‐Filled Transformer Product Line Pioneer Transformers Ltd. Transformer Basics Major Product Categories Reduces or increases voltage of ➲ Power From 300kVA single phase Transformers transformers through to electricity traveling through a wire 30MVA three phase with top voltage in 69kV class –
Slide 7: Dry-Type Transformer Product Line
Dry‐Type Transformer Product Line Jefferson Electric, Inc. and Bemag Transformer Inc. Dry‐Type Models Major Product Categories Low and medium voltage, distribution ➲ Medium Size ranges from 30kVA to Voltage 10MVA and up to 35,000 volts, and power transformers for indoor or standard and custom desi
Slide 8: Switchgear Product Line
Switchgear Product Line Pioneer Critical Power Inc. / Power Systems Solutions Switchgear Basics Major Product Categories System of disconnects, fuses and circuit ➲ Paralleling Lineups available in different models to match system design breakers that distribute, monitor and switchgear requirements
Slide 9: Customers and Markets
Customers and Markets Revenue Distribution Utilities 2012A Revenue: $84.0 Million Industrial Utilities 32% Distributors and EPC Firms 50% Commercial Industrial 9% Commercial 9% EPC Firms and Distributors 89% of 2012 revenue originated from repeat customers ‐9‐
Slide 10: Industry Size and Structure
Industry Size and Structure Large and Growing North American Market Value of U.S. T&D Equipment Demand ($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 11: 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 12: Growth Strategy: Organic and Acquisitions
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 13: Financial Overview
Financial Overview
Slide 14: Summary Operating Statement Data
Summary Operating Statement Data ($ millions, except per share data) Revenue ($M) Gross Profit ($M) 100 30 84.0 86.4 25 75 68.8 20.2 18.9 20 16.0 47.2 50 44.5 15 42.1 11.6 10.7 9.4 10 25 5 +46% +22% +6% 24.6% +25% 23.2% +23% 22.6% 22.2% 23.9% 23.4% ‐ ‐ 2010 2011 2012 1H 2012 1H 2013 LTM 2010 2011 20
Slide 15: Financial Position
Financial Position ($ millions) Condensed Balance Sheet ($M) Liquidity Measures ($M) 06/30/13 06/30/13 Assets Cash and cash equivalents $ 0.8 Current assets $ 26.8 Accounts receivable 9.6 Current liabilities (21.0) Inventories 13.8 Net working capital $ 5.8 Prepaid expenses and other current assets
Slide 16: 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 public offering Total Revenue $84 $89 ‐ 95 6 ‐ 13% Dilut
Slide 17: 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 18: 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 ‐ 18 ‐
Slide 19: Questions & Answers
Questions & Answers
Slide 20: Supplemental Financial Schedules
Supplemental Financial Schedules
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non‐GAAP Measures (In thousands, except per share data) Years Ended Six Months Ended December 31, June 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 $ 0.29 $ 0.
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