Pioneer Power Solutions, Inc. (NASDAQ:PPSI) Q3 2023 Earnings Call Transcript

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Nathan Mazurek: Yes. Again, I’m not sure specifically. I don’t remember anything in Las Vegas. We have shipped a couple of jobs there if I try to rack my brain, but I’m not sure specifically what you’re referring to. The order mix has been going, especially on the E-Bloc side. It’s — the ticket sizes get bigger and bigger, the projects get bigger and bigger. We announced earlier when we received the order from the large automotive business of $9 million. I mean that’s the largest that we’ve ever taken post the selling of the transformer business probably even before that. So the year — this year has been anchored by some large orders like that. And then a lot of orders more in the, I guess, $200, 000 range and everything in between.

So I don’t know if that helps at all or if there’s something more specific. And we expect the same in 2024. It’s going to be anchored by some very large projects and then a lot of the smaller ones or repeat of certain units if you’re a retailer or somebody else with multi-locations.

Albert Jones: All right. That’s all I got. Thanks guys.

Operator: Thank you. [Operator Instructions] Next question comes from the line of Bruce Callaway [Ph] with Callaway Capital. Please go ahead.

Unidentified Analyst: Hey congratulations on a good quarter. I’m just trying to delve into the numbers a little more. It looks like e-Boost is probably going to do about $8-ish million this year, $8 million to $10 million, and you said a quadrupling next year. So does that imply about $30 million to $40 million. And also on your capacity issues for E-Bloc. Looks like maybe $35 million to $40 million is full capacity. And how much more can you squeeze out from that plant? And I guess the demand is way more than that for next year, what do you think you could increase those sales by like 30%, 40%? And also my second question is the share count went by like 400,000, 500,000. Is that mostly compensation for the executives?

Nathan Mazurek: Okay. I mean, we’ll — I’ll answer the first two, and then I’ll let Walter go through the third. The options, but I think that you are correct on stock-based compensation and some other awards that we gave to employees. But from a — I’ll go backwards then, from a capacity point of view, I think we talked about it a little earlier on e-Boost. Yes, we’ll do about $35 million more or less this year out of the Los Angeles facility. And that’s what I call statistical 100%. We’ve said several times but we’ll say it more formally now. We’re in the process of subcontracting out certain, I guess, lower value-added processes that we perform there, like some of the metal bending, some of the copper bending that we do, we traditionally grew up just doing everything.

We expect that to probably increase the capacity there more than 50%. I don’t know exactly how much. If it works out amazingly well, it’d be closer to 100%. If it doesn’t work out so well, maybe it’ll be a little bit below 50%. We’ll see as 2024 unfold, even though we’re sort of at the beginning of that right now. Yes. And e-Boost, yes, the little trick there with e-Boost, so the e-Boost sales, I’m doing it by units. A lot of what you see in Critical Power is some of it’s not related to e-Boost. A lot of it is not a lot of it is pure service work that we still do. So let’s use — I’m glad you raised it because we should have actually had it in the remarks and been more formal and maybe next call and next release will be more formal. But e-Boost sales this year will be somewhere over $1 million.

Now that includes rental income as well. So there’s more expensive unit behind a longer-term lease. When we say quadruple. Quadruple is easy, frankly, that would be $4 million. Again, we haven’t done the formal guidance, but we’re kind of using rental income and product sales of about $10 million additional sales next year related to e-Boost. So maybe that helps a little, at least be more clear to you.

Unidentified Analyst: All right. That’s good.

Nathan Mazurek: Okay, thank you Bruce.

Operator: Thank you. There are no further questions at this time. I would now like to turn the floor over to Nathan Mazurek, for closing comments.

Nathan Mazurek: All right. Thank you all for your time and support. We look forward to updating you as we win additional projects and more formally update you on our next earnings call.

Operator: Thank you. This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.

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