News Spotlight: Pioneer Power Solutions (NASDAQ:PPSI)

Pioneer Power Solutions (NASDAQ:PPSI) spotted trading -27.46% off 52-week high price. On the other end, the stock has been noted 10.45% away from the low price over the last 52-weeks. The stock changed 0.21% to recent value of $4.86. The stock transacted 776 shares during most recent day however it has an average volume of 6.36K shares. The company has 8.78M of outstanding shares and 3.31M shares were floated in the market.  

Pioneer Power Solutions (NASDAQ:PPSI) declared its financial results for the fourth quarter and full-year periods ended December 31, 2018.

Full-Year 2018 Results:

Revenue of $106.4 million, down 7.0% compared to $114.4 million in 2017

Gross margin of 18.1% compared to 15.5%, inclusive of $873,000 of non-recurring charges in 2017

Net loss of $5.7 million compared to a net loss of $9.2 million in 2017

Cash provided by operating activities of $2.2 million compared to $1.7 million in 2017

Adjusted EBITDA* of $7.7 million, down 24.1% compared to $10.1 million in 2017

Fourth Quarter 2018 Results and Recent Business Highlights:

Revenue of $26.5 million, compared to $26.4 million in Q4 2017

Gross margin of 16.0% up significantly compared to 0.7% in Q4 2017

Net loss of $4.4 million, a narrowing of 55.7% compared to a net loss of $9.8 million in Q4 2017

Adjusted EBITDA* of $1.6 million compared to Adjusted EBITDA* of $1.4 million in Q4 2017

Backlog as of December 31, 2018 was approximately $47.5 million, up 1.4% compared to $46.8 million at September 30, 2018 and up 34.9% compared to $35.2 million at December 31, 2017

Nathan Mazurek, Pioneer’s Chairman and Chief Executive Officer, said, “Subsequent to the end of the fourth quarter, Pioneer completed the sale of our wholly owned subsidiary, Pioneer Critical Power, to CleanSpark for approximately $4.4 million in CleanSpark shares and warrants, advancing our efforts to monetize undervalued assets. Based on the current share price at March 26, 2019, this transaction is now worth approximately $8.2 million to Pioneer and its shareholders. Operationally, for the full course of 2018, we continued to produce positive adjusted EBITDA and generated more than $2 million in cash from operations. The weaker fourth quarter primarily reflects the impact of several large projects that were pushed into the first half of 2019. We finished the year with a backlog of $47.5 million, and the timing of these large projects further supports our optimism for 2019.”

“Additionally, in the last 120 days, we have made significant progress in our efforts to create greater shareholder value through strategic alternatives, moving well beyond identifying buyers and evaluating interest in certain Pioneer assets,” added Mr. Mazurek. “Indeed, I expect to have material announcements in this regard during the second quarter of 2019, and by the end of 2019, we expect to complete the sale of several business units and currently plan to dividend the proceeds to shareholders subject to legal and market conditions.” 

On May 2, 2018, Pioneer signed a definitive agreement to sell its PCEP switchgear business. As a result, this business unit had been reclassified as discontinued operations for the year ended December 31, 2017. This agreement pertaining to the sale of PCEP ultimately expired and was mutually terminated by the parties in January 2019. Consequently, at December 31, 2018, due to the change of circumstance, the Company has presented the results of PCEP within continuing operations and included results of the switchgear reporting unit in the T&D Solutions Segment for all periods presented.

“The consequence of not selling the entirety of the PCEP business, as we initially intended, resulted in the reclassification of this business as continuing operations for all periods, and contributed to our net loss,” added Mr. Mazurek. “We continue to explore strategic alternatives related to the PCEP business with the goal of monetizing this asset as soon as possible.”

 Its earnings per share (EPS) expected to touch remained -185.40% for this year while earning per share for the next 5-years is expected to reach at 6.00%. PPSI has a gross margin of 18.80%. 

 According to the most recent quarter its current ratio was 1 that represents company’s ability to meet its current financial obligations. The price moved ahead of -2.76% from the mean of 20 days, -6.11% from mean of 50 days SMA and performed -7.96% from mean of 200 days price. Company’s performance for the week was 0.21%, -11.01% for month and YTD performance remained -7.43%.

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