Pioneer Power Solutions(US:PPSI)2023-04-11 21:00Financial Performance - Total consolidated revenues for 2022 were $27 million, a 47.5% increase from $18.3 million in 2021[127]. - The T&D Solutions segment generated revenues of $17.4 million in 2022, up 83.5% from $9.5 million in 2021[127]. - The Critical Power Solutions segment reported revenues of $9.6 million in 2022, a 8.8% increase from $8.8 million in 2021[127]. - The company's gross profit for 2022 was $4.6 million, compared to $1.4 million in 2021, reflecting a significant improvement[127]. - For the year ended December 31, 2022, consolidated revenue increased by $8.7 million, or 47.5%, to $27.0 million, up from $18.3 million in 2021, primarily due to increased sales of power systems from the T&D Solutions segment[129]. - Revenue from switchgear and E-Bloc power system product lines increased by $7.9 million, or 83.3%, compared to 2021, driven by higher sales of E-Bloc power systems and automatic transfer switches[130]. - Gross profit for the year ended December 31, 2022, was $4.6 million, a 230.7% increase from $1.4 million in 2021, with a consolidated gross margin percentage of 17.1%, up from 7.6%[132]. Order Backlog - The order backlog at December 31, 2022, was $37.2 million, an increase of $14.4 million, or 63%, compared to $22.8 million at December 31, 2021[128]. - The T&D Solutions backlog increased to $30.9 million in 2022 from $17.5 million in 2021[128]. - The Critical Power Solutions backlog rose to $6.3 million in 2022 from $5.3 million in 2021[128]. Expenses and Losses - The net loss for 2022 was $3.6 million, compared to a net loss of $2.2 million in 2021[127]. - Selling, general and administrative expenses increased to $8.4 million in 2022 from $5.1 million in 2021[127]. - Consolidated selling, general and administrative expenses increased by approximately $3.4 million, or 64.3%, to $8.6 million in 2022, as a percentage of revenue rising to 31.3% from 28.1% in 2021[135]. - The Critical Power segment reported an operating loss of $2.0 million for the year ended December 31, 2022, an increase of $1.6 million, or 420.3%, compared to 2021, mainly due to higher consulting and marketing costs[141]. - Unallocated corporate overhead expenses increased by $1.4 million, or 57.6%, during the year ended December 31, 2022, primarily due to increased payroll and stock-based compensation[143]. Cash Flow and Working Capital - Cash on hand as of December 31, 2022, was $10.3 million, an increase from $9.9 million in 2021, with total cash and restricted cash reported at $10.3 million compared to $11.7 million in 2021[150]. - Cash used in operating activities increased to $5.8 million in 2022 from $3.2 million in 2021, primarily due to working capital fluctuations[153]. - Cash provided by investing activities was $4.7 million in 2022, a significant increase from cash used of $237 in 2021, mainly due to collecting unpaid principal and interest from Seller Notes[154]. - Cash used in financing activities was $353 in 2022, compared to cash provided of $7.6 million in 2021, which included net proceeds from common stock issuance[155]. - Working capital decreased to $14.1 million as of December 31, 2022, from $18.6 million in 2021, with cash on hand of $10.3 million[156]. - The company expects cash requirements to be primarily for operating activities, capital improvements, and product development, with sufficient cash balance to fund operations for the next twelve months[162]. Capital Expenditures and Future Outlook - Additions to property and equipment were $1.5 million in 2022, up from $237 in 2021, indicating increased capital expenditures[164]. - The company has no off-balance sheet transactions or obligations that could materially affect its financial condition as of December 31, 2022[163][167]. - Future operating results may be impacted by factors such as cyclical industry nature, raw material price fluctuations, and ongoing economic conditions, including the effects of COVID-19 and geopolitical tensions[165]. - As of December 31, 2022, $8.6 million of common stock remained available for issuance under the ATM Program[160]. Business Strategy - The company plans to grow its business through continued internal investments in product development and expansion of personnel[114]. - Interest income for the year ended December 31, 2022, was approximately $465, up from $387 in 2021, primarily generated from Seller Notes and cash on hand[144]. - The company received a PPP Loan of $1.4 million, which was fully forgiven in Q1 2021, resulting in a gain recognized as other income[151][152].