Pioneer Power Solutions, Inc. · NASDAQ:PPSI
Pioneer Power Solutions — Sixth Annual LD Micro Conference 2013
20 slides from Pioneer Power Solutions's conference presentation, Dec 4, 2013
Slide 1: Investor Presentation, Sixth Annual LD Micro Conference
Pioneer Power Solutions, Inc. Investor Presentation Sixth Annual LD Micro Conference December 4, 2013 © 2013 Pioneer Power Solutions, Inc.
Slide 2: Forward-Looking Statements
Forward - Looking Statements This presentation contains certain "forward - looking statements" within the meaning of the Private Securities Litigation Reform A ct 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 transmission and distribution (T&D) equipment – Headquartered in Fort Lee, NJ – Built through 5 acquisitions, operations in the U.S., Canada and Mexico; ~350 employees Broad range of highly engineered solutions for niche applications
Slide 4: Investment Highlights
Investment Highlights - 4 - ▪ Management track record of growth ▪ Successful acquisition strategy & integration Organic growth of 10+% (2x industry) (a) – Recurring blue chip customer base – 89% of 2012 revenue originated from repeat customers Engineered - to - order solutions – Higher margin opport
Slide 5: Pioneer's Position in the Electrical Grid
Pioneer’s Position in the Electrical Grid - 5 - GENERATION Power Station TRANSMISSION Transmission Substation Distribution Substation Distribution / Control Equipment DISTRIBUTION Power Transformers Commercial & Industrial Users Residential Customers Solar Wind Farm Pioneer’s focus is on niche marke
Slide 6: Market Positioning by Product Category
Market Positioning by Product Category - 6 - Product Category Low - Voltage Switchboard/ Panelboards Low Voltage Dry - Type Transformers Medium - Voltage “Power - Dry” Transformers Liquid - Filled Transformers Paralleling Switchgear and Generator Controls Business Process Variables Primary End Marke
Slide 7: Customers and Markets
Customers and Markets - 7 - Revenue Distribution 2012A Revenue: $84.0 Million Utilities 32% Industrial 9% Commercial 9% Distributors and EPC Firms 50% 89% of 2012 revenue originated from repeat customers Utilities Industrial EPC Firms and Distributors Commercial
Slide 8: Industry Size and Structure
Industry Size and Structure Large and Growing North American Market – Utilities represent the majority of demand (52%) (a) – Next are industrial/nonutility generators (32%) ( a) – High diversity of product and market niches – The majors: ABB, GE, Schneider, Siemens – ~2,400 manufacturers serving Nor
Slide 9: Industry Growth Drivers
Industry Growth Drivers - 9 - Aging Power Grid Built more than a half century ago, designed for our needs at the time, has not changed since Nearly a majority of T&D infrastructure is near or past its useful service life Demand for Reliable Power Rising number of TLR events demonstrates power grid’s
Slide 10: Growth Strategy
Growth Strategy - 10 - FINANCIAL PROFILE Profitable companies and turnaround candidates whose performance can be improved through inclusion within the Pioneer group OPERATING EFFICIENCIES Potential for meaningful operating efficiencies through integration with existing business units STRATEGIC FIT B
Slide 11: Financial Overview
a fice ey 3 | Financial Overview
Slide 12: Summary Operating Statement Data
Summary Operating Statement Data ($ millions, except per share data) - 12 - (a) Non - GAAP measures, from continuing operations. See appendix for a reconciliation of GAAP to non - GAAP measures. Revenue ($M) Gross Profit ($M) +46% +22% +9% +25% +23% Adjusted EBITDA ($M) (a) Non-GAAP EPS ($) (a) +12%
Slide 13: Financial Position
Financial Position ($ millions) - 13 - Liquidity Measures ($M) Condensed Balance Sheet ($M) (a) Excluding cash and equivalents, current maturities of debt and discontinued operations (b) Demand facilities, subject to annual review for renewal (always classified as due < 1 year) Debt Repayment Schedu
Slide 14: Current View for 2013: Updated Guidance
Current View for 2013 Updated Revenue and Earnings Guidance - 14 - Full Year Assumptions Non - GAAP EPS of $0.76 to $0.82 – Adjusted for dilution of Sep - 2013 public offering Expecting 10% revenue growth at midpoint of guidance range 2013 gross margin improvement over 2012 Higher operating expense
Slide 15: Investment Summary
Investment Summary - 15 - ▪ Stable & profitable core businesses ▪ Recurring blue chip customer base ▪ Aging North American electrical infrastructure needing replacement ▪ Increasing demands and requirements for grid system stability & efficiency ▪ Rising investment in on - site backup power & distri
Slide 16: Contact Us
Contact Us - 16 - Investor Relations: Brett Maas Managing Partner Hayden IR, LLC (T) 646.536.7331 brett@haydenir.com www.haydenir.com Corporate Headquarters: Pioneer Power Solutions, Inc. 400 Kelby Street, 9 th Floor Fort Lee, NJ 07024 (T) 212.867.0700 (F) 212.867.1325 www.pioneerpowersolutions.com
Slide 17: Questions & Answers
a fice ey 3 | Questions & Answers
Slide 18: Supplemental Financial Schedules
Supplemental Financial Schedules
Slide 19: Reconciliation of Non-GAAP Measures
Reconciliation of Non - GAAP Measures (In thousands, except per share data) - 19 - Years Ended Nine Months Ended December 31, September 30, 2010 2011 2012 2012 2013 Reconciliation to Non-GAAP Net Earnings and Diluted EPS: Earnings per share from continuing operations (GAAP measure) 0.55$ 0.42$ 0.54$
Slide 20: Key Market & Ownership Statistics
Key Market & Ownership Statistics Ticker Symbol (NASDAQ): PPSI Last Closing Price (11/25/2013): $8.99 Shares Outstanding (M): 7.172 Market Capitalization ($M): $64.5 Freely Traded Float (M): 2.1 - 20 - (a) Based on mid - point of Company’s earnings guidance (b) Beneficial ownership, as adjusted for
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