Pioneer Power Solutions, Inc. (NASDAQ:PPSI) Q4 2023 Earnings Call Transcript

Amit Dayal: Very good. That’s all I have. Thank you so much.

Nathan Mazurek: Thank you, Amit.

Operator: [Operator Instructions] We’ll go next now to Andrew Parker of Horizon Kinetics.

Andrew Parker: Walter, just one question. I think you just addressed this, but my sense, you didn’t really speak to this so far during the call, but my sense is that manufacturing capacity is one of the issues that you guys are facing. Can you talk a little bit about that?

Walter Michalec: I’ll turn it over to the Chief here. He knows much better on the capacity issues.

Nathan Mazurek: Yes. I mean we’re facing a little bit of a crunch on the E-Bloc side of the business. We’ve been addressing it. I guess, since I don’t know, in the middle of last year, started the program to really move out some of the less value-added operations that we do. We’re probably too vertically integrated in our facility near Los Angeles. And that’s what we’re in the middle of. We’re trying to do it without spending. I mean anybody could go and say, okay, I need a new – my order book is growing, blah, blah, I need another facility, I need more equipment. I need this. I need that. So we’re trying to be more judicious. We’re trying to concentrate on what we’re getting paid for, which is unique engineering and unique design and complicated wiring being able to do complicated wiring of controls and components and things like that and not really – we’re not really compensated for making a 90-inch door.

That’s how we’re addressing it. We don’t think that we’re going to have a capacity issue. Although we’re shifting this year. So it’s a little bit of a consolidation for us, a little bit – a little hatewire, but we don’t expect to have any – we’re not turning down anything because of capacity this year or we don’t anticipate any issues next year either.

Andrew Parker: All right. Thank you, Nathan.

Nathan Mazurek: You’re welcome, Andrew.

Operator: [Operator Instructions] And gentlemen, it appears we have no further questions this afternoon. So that will bring us to the conclusion of today’s call. We’d like to thank everyone for joining the Pioneer Power 2023 fourth quarter and year-end financial results conference call. We wish you all a great evening. Have a good day. Goodbye.

Walter Michalec: Thank you.

Nathan Mazurek: Thank you, Bob.