Pioneer Power Solutions(PPSI) - 2024 Q3 - Quarterly Report

Revenue Performance - For the three months ended September 30, 2024, consolidated revenues were $10,911, a decrease of 4.7$11,453 for the same period in 2023[101] - For the three months ended September 30, 2024, consolidated revenue decreased by $542, or 4.7$10,911, down from $11,453 during the same period in 2023[105] - For the nine months ended September 30, 2024, consolidated revenue decreased by$7,450, or 22.4%, to $25,841, down from$33,291 during the same period in 2023[106] - Revenue from the Electrical Infrastructure segment decreased by $4,165, or 48.1$4,495 for the three months ended September 30, 2024[107] - Revenue from the Electrical Infrastructure segment decreased by $12,130, or 48.8$12,715 for the nine months ended September 30, 2024[108] - Revenue from the Critical Power Solutions segment increased by $3,623, or 129.8$6,416 for the three months ended September 30, 2024[109] - Revenue from equipment sales in the Critical Power segment increased by $3,941, or 157.2$6,448 for the nine months ended September 30, 2024[110] Profitability and Loss - Gross profit for the three months ended September 30, 2024, was $2,066, down from$3,698 for the same period in 2023, reflecting a gross margin of 18.9%[101] - Consolidated gross margin decreased to 18.9% for the three months ended September 30, 2024, down from 32.3% during the same period in 2023[112] - For the nine months ended September 30, 2024, gross margin decreased to 17.2%, down from 31.3% during the same period in 2023[113] - Operating loss from continuing operations for the three months ended September 30, 2024, was $(1,097), compared to an operating income of$940 for the same period in 2023[101] - The company reported a net loss of $(1,121) for the three months ended September 30, 2024, compared to a net income of$1,011 for the same period in 2023[101] - The company generated a net loss of $1,121 for the three months ended September 30, 2024, compared to net income of$1,011 for the same period in 2023, resulting in a net loss per share of $0.10[134] Expenses - Selling, general and administrative expenses increased by approximately$155, or 5.7%, to $2,881 for the three months ended September 30, 2024[120] - Selling, general and administrative expenses as a percentage of consolidated revenue increased to 31.6$256, compared to $0 for the same period in 2023[101] - Consolidated depreciation and amortization expense decreased by$6, or 18.8%, to $26 for the three months ended September 30, 2024, compared to$32 for the same period in 2023[122] Order Backlog - The total order backlog as of September 30, 2024, was $66,150, a slight decrease from$66,921 as of June 30, 2024[103] - The backlog for Electrical Infrastructure was $42,112 as of September 30, 2024, up from$39,670 as of June 30, 2024[103] - The company anticipates that approximately $13,236, or 20$4,118 during the nine months ended September 30, 2024, compared to $228 for the same period in 2023, reflecting increased net loss and working capital fluctuations[139] - Cash provided by financing activities was$4,893 during the nine months ended September 30, 2024, compared to cash used of $142 in the same period in 2023, mainly due to stock sales under the ATM Program[141] - As of September 30, 2024, working capital was$9,103, including $3,080 in cash, down from$9,421 as of December 31, 2023[142] - The company expects to meet cash needs through working capital and operating cash flows, with ongoing product development and promotional activities anticipated[145] - The company sold an aggregate of 919,557 shares of common stock for approximately $5,147 under the ATM Program during the nine months ended September 30, 2024[136] Segment Performance - Operating loss from the Electrical Infrastructure segment decreased by$3,047 during the three months ended September 30, 2024, primarily due to decreased sales and increased expenses[124] - Operating income from the Critical Power segment increased by $832 during the three months ended September 30, 2024, driven by higher sales of e-Boost equipment[126] Other Information - The company completed the sale of its Electrical Infrastructure segment on October 29, 2024, for total consideration of$50,000, including $48,000 in cash[92][93] - The company had no off-balance sheet transactions or obligations that could materially affect its financial condition as of September 30, 2024[146]