Pioneer Power Solutions, Inc. (NASDAQ:PPSI) Q1 2023 Earnings Conference Call May 15, 2023 4:30 PM ET

Company Participants

Brett Maas - Hayden IR

Nathan Mazurek - President, CEO & Chairman

Walter Michalec - CFO, Treasurer & Secretary

Conference Call Participants

Amit Dayal - H.C. Wainwright & Co.

Shawn Boyd - Next Mark Capital

Operator

Good afternoon, and welcome to the Pioneer Power First Quarter 2023 Financial Results Conference Call. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Brett Maas with Hayden IR. Please go ahead.

Brett Maas

Thank you, and welcome. The call today will be hosted by Nathan Mazurek, Chairman and Chief Executive Officer; Walter Michalec, Chief Financial Officer; and Geo Murickan, President of Pioneer Mobility. Following this discussion, there will be a Q&A session open to participants on the call. We appreciate the opportunity to review the first quarter 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 the call. I'd like to now turn the call over to Nathan Mazurek, Chairman and CEO. Nathan, please go ahead.

Nathan Mazurek

Thank you, Brett, and good afternoon, and thank you all for joining us today. We carried the strong momentum from last year's fourth quarter into the first quarter of 2023, and this year is shaping up to be a record year for us, both in terms of revenue and profit. Demand for our unique solutions continues to grow at an outsized pace. We are adding new dynamic customers. Existing customers are providing us with new purchase orders and opportunities, and we continue to evolve our solutions to better serve the needs of our customers and expand the vertical markets for our solutions.

After growing revenue nearly 50% in 2022, we anticipate 2023 to be another year of 50% growth. We also expect to be profitable for the full year. This marks a significant turnaround in our business following our reset and the sale of our transformer business in August of 2019. Indeed, this was our second consecutive quarter with positive GAAP net income. We have essentially reached a point where our projected annual volume enables us to achieve improved operating leverage and sustainable EPS.