Pioneer Power Solutions, Inc. (NASDAQ:PPSI) Q2 2023 Earnings Call Transcript August 14, 2023 5:00 PM ET

Company Participants

Kim Rogers - Hayden IR

Nathan Mazurek - President, CEO & Chairman

Walter Michalec - CFO, Treasurer & Secretary

Conference Call Participants

Sameer Joshi - H. C. Wainwright

David Kreinberg - Globus Capital

Operator

Good afternoon and welcome to the Pioneer Power Solutions 2023 Second Quarter Financial Results Conference Call. [Operator Instructions]. Please note this event is being recorded.

I would now like to turn the conference over to Kim Rogers with Hayden IR. Please go ahead.

Kim Rogers

Thank you, and welcome. Joining us on today's call will be Nathan Mazurek, Chairman, and Chief Executive Officer; Walter Michalec, Chief Financial Officer, and Geo Murickan, President of Pioneer eMobility. Following management prepare comments a Q&A session will be open to the call participant. We appreciate the opportunity to review the second quarter 2023 financial results as well as discuss recent business highlights.

Before we get started, let me remind you this call is being recorded and webcast. During this call, management will make forward-looking statements. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to the cautionary text regarding forward-looking statements contained in the earnings release issued earlier today, which applies to the content of today’s call as well.

I'd now like to turn the call over to Nathan Mazurek, Chairman and CEO. Nathan, please go ahead.

Nathan Mazurek

Thank you, Kim. Good afternoon, and thank you all for joining us today. This was a great quarter for us with both divisions delivering strong performance resulting in record revenue that was up nearly 150% year-over-year for the second quarter, and a bottom line that was solidly profitable, excluding non-cash 1-time charges relating to stock-based compensation. The revenue growth reflects growing demand across both our business segments, and the profitability reflects better operating leverage, manufacturing efficiencies, and a more optimal product mix.

Notably, we are delivering better profitability even as we continue to invest significant monies primarily in our e-Boost business. Even with these large investments, we essentially generated approximately $0.05 per share in GAAP net income, if not for non-cash stock-based compensation charges, and we still expect to generate positive net income for the full year 2023. Both our segments are executing to plan so far. Our T&D solutions unit, which includes our e-Bloc power system and related products, grew revenue 263% to $9.2 million compared to $2.5 million for the second quarter of last year.