Pioneer Power Solutions, Inc. (NASDAQ:PPSI) Q3 2022 Earnings Conference Call November 14, 2022 5:00 PM ET

Company Participants

Brett Maas - Investor Relations, Hayden IR

Nathan Mazurek - Chairman, Chief Executive Officer

Walter Michalec - Chief Financial Officer

Conference Call Participants

Amit Dayal - H.C. Wainwright

Operator

Good day, ladies and gentlemen, and welcome to the Pioneer Power Solutions, Inc. Third Quarter 2020 Earnings Results Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Brett Maas. Please go ahead.

Brett Maas

Thank you, and welcome. The call today will be hosted by Nathan Mazurek, Chairman and Chief Executive Officer; and Walter McCall, Chief Financial Officer. Following this discussion, there will be a Q&A session opened to participant on the call. We appreciate the opportunity to review the third quarter 2022 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 the 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 and in the posted version of these prepared remarks, both of which apply to the content of the call.

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

Nathan Mazurek

Thank you, Brett. Good afternoon, and thank you all for joining us today for our conference call. This was an important quarter for us with continued strong orders and significant revenue growth, and we believe that this sequential progress will accelerate in the fourth quarter and continue into 2023.

Based on our backlog and confirmed delivery schedules, we are confident that projected fourth quarter revenue will enable us to meet our full year target of 50% year-over-year revenue growth. This guidance obviously signals that we expect to end the year on a very strong revenue note. And indeed, we fully expect that momentum to continue into 2023.

Significantly, in the third quarter, we also expanded our gross margins as evidenced by the 130 base increase in gross margins as compared to the third quarter last year. On an operational level, it's important to note that excluding the ongoing investments to support our new strategic initiatives and associated overhead, our divisions delivered more than $200,000 in positive EBITDA contribution margins.