Pioneer Power Solutions, Inc. · NASDAQ:PPSI
Pioneer Power Solutions — Investor Presentation (March 2016)
22 slides from Pioneer Power Solutions's investor presentation, March 2016
Slide 1: Pioneer Power Solutions Investor Presentation
Pioneer Power Solutions, Inc. Investor Presentation ©2016 Pioneer Power Solutions, Inc. March 2016
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 A diversified electrical equipment manufacturer, sales Transmission & Distribution Solutions and service company Liquid-Filled Transformers – Headquartered in Fort Lee, NJ 1995 – ~500 employees in U.S., Canada and Mexico Dry-Type Transformers Focus on niche applications and serv
Slide 4: Large and Diverse End Markets
Large and Diverse End Markets Alternative Energy OEMs Backup Power Primary Power Wind, solar, biomass Battery charging Data centers Independent power plants Commercial Construction Data centers Hospitals Remote power Drive systems Prisons Military Office buildings, shopping E
Slide 5: Our Business Segments
Our Business Segments 2015 Revenue: $106.5 million (a) Engineered Products Equipment 65% 65% Critical T&D 79% 21% Power 35% 35% Catalog Recurring Products Service Based on results as of September 30, 2015 Based on results as of September 30, 2015 Transmission & Distribution Solutions Critical Power
Slide 6: Products & Services Profile
Products & Services Profile Low Voltage Medium Voltage Liquid- Switchgear & Segment/Product Low & Medium Generator Distribution & OEM Filled Generator Category Transformers Transformers Transformers Voltage Switchgear Sales & Service Controls Low (equipment) Gross Margin % Low High High Medium High
Slide 7: 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 Liquid Filled Transformers Wind Farm Industrial/Utility Switchgear T&D Segment Medium and Low Voltage
Slide 8: Customers
Customers Revenue Distribution Utilities 2015 Revenue: $106.5 Million Industrial 30% Distributors and EPC Utilities Firms 50% Commercial 8% Industrial 12% Commercial EPC Firms and Distributors Revenue distribution based on results as of September 30, 2015 -8-
Slide 9: Investment Highlights
Investment Highlights Profitable core business poised for accelerated growth Stable, Profitable Business Growth Opportunities 8% organic growth (a) is ~2x industry Evolving grid requirements – Recurring blue chip customer base – Increasing demands and requirements for – Historically, >80% of rev
Slide 10: Industry Size and Structure
Industry Size and Structure Service Life of the U.S. Electrical Infrastructure (a) Large and Growing North American Market Aging Power Grid 42% 50% – Built more than a half century ago – Nearly a majority of T&D infrastructure is near or past its useful service life Demand for reliable power 5
Slide 11: 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 12: Acquisition and Integration History
Acquisition and Integration History Original business acquired from Schneider Seven Acquisitions Completed Since 2010 Electric S.A. in 1994 (Pioneer Transformers Ltd.) – Cornerstone for future expansion – $30MM of acquisitions completed 2015 Pacific Power Systems Integration (Aug) Revenue: $5 mill
Slide 13: Financial Overview
Vad PIONEER POWER SOLUTIONS Financial Overview
Slide 14: Summary Financial Position
Summary Financial Position ($ millions) Summary Balance Sheet ($M) Liquidity Measures ($M) 9/30/2015 12/31/2014 9/30/2015 Cash & cash equivalents $0.0 $3.8 Net working capital ($1.3) Current Assets $35.2 $34.0 Long-term Assets $37.4 $38.8 Current ratio 1.0x Total Assets $72.6 $72.8 Trade net working
Slide 15: Summary Operating Statement Data
Summary Operating Statement Data ($ millions, except per share data) Revenue ($M) Gross Profit ($M) $106.5 $88.2 $92.2 $21.8 $84.0 $21.1 $18.9 $18.2 $68.8 $16.0 24.7% $47.2 $11.6 +16% 22.6% 19.7% 19.8% +46% 23.2% +22% +18% 24.6% +5% +5% 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 Adj
Slide 16: 2016 Revenue & Profit Growth Drivers
2016 Revenue & Profit Growth Drivers Expected Revenue Growth Factors Expected Profit Growth Factors T&D Solutions Segment T&D Solutions Segment Siemens renewal and expansion Facility Consolidations (6 facilities into 3) – DOE 2016 requirements, higher pricing (a) Increased offshoring and outso
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, 12th 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
[1 = 2 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) Three Months Ended Nine Months Ended September 30, September 30, Last 12 2010 2011 2012 2013 2014 2014 2015 2014 2015 Months Reconciliation to Non-GAAP Net Earnings (Loss) and EPS: Earnings per share from continuing operations
Slide 22: Key Market & Ownership Statistics
Key Market & Ownership Statistics Market Information Stock Trading History Ticker Symbol (NASDAQ): PPSI Recent Closing Price (3/10/2016): $3.68 Shares Outstanding (M): 8.7 Market Capitalization ($M): $32.0 Freely Traded Float (M): 3.4 Valuation Measures Major Shareholder Ownership Information Enterp
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