Pioneer Power Solutions, Inc. (NASDAQ:PPSI) Q3 2024 Earnings Conference Call November 18, 2024 4:30 PM ET

Company Participants

Brett Maas - Hayden Investor Relations
Nathan Mazurek - Chairman and Chief Executive Officer
Walter Michalec - Chief Financial Officer
Geo Murickan - President, Pioneer Power eMobility

Conference Call Participants

Rob Brown - Lake Street Capital
Sameer Joshi - H. C. Wainwright

Operator

Greetings and welcome to the Pioneer Power Third Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce our host, Brett Maas of Hayden Investor Relations. Thank you. You may begin.

Brett Maas

Thank you, operator. 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 Power eMobility.

Following this discussion, there'll be a Q&A session open to participants on the call. We appreciate the opportunity to review the third quarter financial results and recent business highlights. Before we get started, let me remind you this call is being recorded and webcast.

During this call, management may 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 containing 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. Good afternoon, and thank you all for joining us today. As you are likely aware by now, on October 29, we sold our Pioneer custom electrical products, PSEP business unit, whose primary product line is the e-block integrated power system, the Mill Point Capital, a New York-based private equity group, for $50 million in a cash and equity transaction.

More specifically, Pioneer received approximately $48 million in cash proceeds from the sale, and in addition received an approximately 6% equity stake in Mill Point's new Volterra’s electrical products platform. Concurrently with the purchase of our e-block business, Mill Point also purchased the Jefferson Electric dry-type transformer business from ERMCO as part of its efforts to build Volterra’s into a significant provider of Power Solutions supporting the generational energy transition going on in the United States right now. We expect the e-block business to continue to grow rapidly and profitably as part of Volterra’s, and we are pleased to be original equity owners of this platform.