Pioneer Power Solutions, Inc. · NASDAQ:PPSI
Pioneer Power Solutions — Investor Presentation (May 2012)
21 slides from Pioneer Power Solutions's investor presentation, May 15, 2012
Slide 1: Pioneer Power Solutions, Inc. Investor Presentation
Pioneer Power Solutions, Inc. Investor Presentation ©2012 Pioneer Power Solutions, Inc. May 2012
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: 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 ~$12 million with approximately 50 employees Impl
Slide 6: 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 Commercial & Residential Industrial Users Customers ‐6‐
Slide 7: Liquid-Filled Transformer Products
Liquid‐Filled Transformer Products Pioneer Transformers Ltd. 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 69kV class –
Slide 8: Dry-Type Transformer Products
Dry‐Type Transformer Products 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 g 10MVA and up to 35,000 volts, and power transformers for indoor or standard and custom design
Slide 9: Transformer Customers
Transformer Customers Revenue Distribution by End Market Representative Customers 2011A Revenue: $68.8 Million Distributors, Utilities E&C Firms 32% 34% Commercial Industrial 16% 18% ‐9‐
Slide 10: Industry Size and Dynamics
Industry Size and Dynamics $7.7 billion U.S. market for transformers, Value of Annual U.S. Transformer Demand ($Bn) forecast to grow to $10.1 billion by 2015 (a) 2010: $7.7 Billion Transformers represented p 16% of electrical equipment industry shipments in 2010, up from 13.1% in 2002 (b) Nonuti
Slide 11: Growth Strategy
Growth Strategy Acquisitions – Profitable companies with strengths in complementary market niches – Potential for operating efficiencies through integration – Broaden Pioneer’s range of power solutions through more technically‐ advanced products (not limited to transformers) transformers), new dis
Slide 12: Executive Leadership
Executive Leadership Nathan J. Mazurek Chairman and Chief Executive Officer 20+ years of experience in the electrical equipment and components industry Extensive track record of consolidating companies, factories and product lines – Over 20 consummated acquisition, acquisition divestiture divest
Slide 13: Financial Overview
Vad PIONEER POWER SOLUTIONS Financial Overview
Slide 14: Summary Operating Statements
Summary Operating Statements ($ millions, except per share data) FYE December 31, 2010 2011 1Q 2011 1Q 2012 R Revenue $47 2 $47.2 $68 8 $68.8 $15 7 $15.7 $20 3 $20.3 % Growth +16.3% +45.6% +90.6% +45.6% Gross Profit $11.6 $ $16.0 $ $4.3 $ $4.6 $ % Margin 24.6% 23.2% 27.5% 22.6% Adjusted EBITDA (a) $
Slide 15: Financial Position
Financial Position ($ millions) Capital Structure Liquidity 03/31/12 03/31/12 Revolving Bank Debt $7.0 Current Assets $25.8 Term Loan Bank Debt 11.0 Current Liabilities (21.2) Capital Lease Obligations 0.0 Net Working Capital $4.6 Current Ratio 1.2x Cash and Equivalents 0.0 Total Net Debt 18.0 Opera
Slide 16: 2012 Outlook
2012 Outlook Company Revenue and Earnings Guidance 2012E Guidance Full Year Assumptions 2011A 2012E Δ% Revenue R growth h off 16% at mid‐point id i off range Revenue ($M) $69 $76 ‐ 84 10 ‐ 22% – Targeting 11% growth on an organic basis Diluted EPS (Non‐GAAP) $0.56 $0.65 ‐ 0.75 17 ‐ 35% Stable gr
Slide 17: 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 18: 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 19: Questions & Answers
Vad PIONEER POWER SOLUTIONS 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) Year Ended December 31, Three Months Ended March 31, 2010 2011 2011 2012 Reconciliation to Non‐GAAP Net Earnings and Diluted EPS: Earnings per share from continuing operations (GAAP measure) $ 0 55 0.55 $ 0 42 0.42 $ 0 20 0.20
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