Pioneer Power Solutions(US:PPSI)2022-04-01 01:52Financial Data and Key Metrics Changes - Revenues for Q4 2021 were $3.5 million, down 35% year-over-year from $5.4 million in Q4 2020 [30] - Total revenue for the full year 2021 was $18.3 million, a decrease of 6% compared to $19.5 million in 2020 [32] - The net loss for Q4 2021 was $1.4 million or negative $0.16 per share, compared to a net loss of $744,000 or negative $0.09 per share in Q4 2020 [31] - The full year net loss was $2.2 million or negative $0.24 per share, an improvement from a net loss of $3 million or negative $0.34 per share in 2020 [34] Business Line Data and Key Metrics Changes - The company reported a significant increase in gross profit for the full year 2021, rising 58% to $1.4 million or 8% of revenue, compared to $881,000 or 5% of revenue in 2020 [32] - Selling, general and administrative expenses for Q4 2021 were $1.5 million, representing 43% of revenues, an increase from $1.2 million in the same quarter last year [31] - The backlog more than doubled from $10.9 million at September 30 to $22.8 million as of December 31, indicating strong demand for future orders [27] Market Data and Key Metrics Changes - The company is focusing on the growing demand for distributed generation and electric vehicle (EV) markets, with a strategic shift in response to customer needs [8][9] - The E-Bloc solution received a significant order valued at approximately $12 million, marking a critical milestone in the company's market penetration [15] - E-Boost is expected to represent as much as 10% of annual revenue in 2022, with anticipated revenue doubling in 2023 [26] Company Strategy and Development Direction - The company has repositioned itself as a provider of equipment and services for distributed generation and EV markets, driven by customer demand and market trends [8][9] - The launch of the E-Boost product line aims to address the growing need for mobile EV charging solutions, with three delivery platforms designed to meet varied user requirements [19][20][22] - The company plans to leverage its first-mover advantage in the market to expand its addressable market and improve margins [28] Management's Comments on Operating Environment and Future Outlook - Management expects year-over-year revenue growth of more than 50% in 2022, driven by a strong backlog and accelerating demand for new solutions [37] - The company anticipates significant margin expansion due to the introduction of new products and improved operational efficiencies [34][37] - Management is optimistic about the future, viewing 2022 as a year of growth and transition into a recognized leader in the distributed generation and EV charging marketplace [50] Other Important Information - The company had cash, including restricted cash, of $11.7 million and zero debt as of December 31, 2021, compared to $7.6 million and $1.4 million in debt at the end of 2020 [34] - The company sold 888,500 shares of common stock under the ATM program for net proceeds of approximately $8.7 million, which will be used to advance its E-Bloc and E-Boost businesses [35] Q&A Session Summary Question: What is the outlook for gross margin improvements? - Management indicated that improvements are expected from both the T&D segment and the Critical Power segment, with volume leverage in T&D and profitable E-Boost sales in Critical Power [39][41] Question: What is the expected cadence of quarterly revenues for the year? - Management expects stronger revenue gains in the second half of the year, with noticeable improvements already in Q1 2022 [43] Question: Are there any supply chain challenges affecting delivery schedules? - Management acknowledged ongoing supply chain challenges but emphasized efforts to hold critical inventory to meet delivery schedules [45] Question: How is the E-Boost performing for customers? - Management reported no complaints from customers, indicating positive performance so far [46]