Q4 2021 Pioneer Power Solutions Inc Earnings Call
Please stand by.
Please standby.
Good day, and welcome to the Pioneer Power Solutions.
Good day and welcome to the Pioneer Power Solutions, Inc. Fourth quarter and year end 2021 earnings results call. Today's conference is being recorded at this time I'd like to turn the conference over to Brett Maas from Hayden IR. Please go ahead.
fourth quarter and year-end 2021 earnings results call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Brett Sheriff.
Bret: Thank you and welcome. The call today will be hosted by Nathan Masurick, Chairman and Chief Executive Officer, Walter Michalik, Chief Financial Officer, and also on the call today's GEO.
Thank you and welcome the call today will be hosted by Nathan Macerich, Chairman and Chief Executive Officer, Walter <unk>, Chief Financial Officer, and also on the call today is Jill Richard.
Speaker Change: President of this company's recently launched Pioneer Power Mobility Business Unit.
President there's companies recently launched pioneer power mobility business unit.
Speaker Change: Following this discussion, there'll be a Q&A session over the participants on the call. We appreciate the opportunity to review the fourth quarter full year financial results as well as discuss recent business highlights.
Following this discussion there will be a Q&A session open to participants on the call. We appreciate the opportunity to review the fourth quarter and full year financial results as well as discuss recent business highlights before we get started let me remind you that this call's being recorded and webcast. During this call management will make forward looking statements. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual.
Speaker Change: Before we get started, let me remind you that this call is being recorded in webcasts. During this call, management will make forward-looking statements. These statements are based on current expectations and assumptions and are subject to risk and uncertainties that could cause actual results to different material. Please refer to the cautionary text regarding forward-looking statements containing the earnings release issue 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 Mazerick, Chairman and CEO . Nathan, please go ahead.
Also differ materially please refer to the cautionary text regarding forward looking statements contained in the earnings release issued earlier today as opposed to 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 Magic Chairman and CEO Nathan. Please go ahead.
Nathan: Thank you, Brett. Good afternoon and thank you all for joining us today for our conference call. This was a watershed quarter for the company. We have successfully repositioned Pioneer as a valued provider of equipment and services to the rapidly growing distributed generation and electric vehicle market.
Thank you Brad good afternoon, and thank you all for joining US today for our conference call. This was a watershed quarter for the company. We have successfully repositioned pioneer is a valued provider of equipment and services to the rapidly growing distributed generation and electric vehicle markets the shift in.
Nathan: The shift in strategic direction that has taken place in the last 18 months is in direct response to specific customer demand and is predicated on two durable secular catalysts. The first reality is the intense focus of many larger power users to utilize multiple power sources in order to reduce electric power costs, provide resiliency, and decrease their carbon footprint.
Direction that has taken place in the last 18 months is in direct response to specific customer demand and there's and it's predicated on two durable secular catalysts. The first reality is the intense focus of many larger power users to utilize multiple power sources.
In order to reduce electric power costs provide resiliency and decrease their carbon footprint.
Nathan: Sole reliance on the grid is no longer acceptable from a reliability or sustainability point of view. The episode in Texas in the winter of 2021 demonstrated this challenge as has the multiple brownouts enrolling blackouts in California and other locations during the summer months.
So reliance on the grid is no longer acceptable from a reliability, where sustainability point of view the episode in Texas are in the winter of 'twenty 'twenty. One demonstrated this challenge as has the multiple brownouts and rolling blackouts in California, and other locations during the summer months.
Nathan: For data centers, call centers, refineries, industrial facilities, and retailers with perishable inventory, even a brief power interruption is a business challenge that cannot be tolerated. For others, it is the never-ending increase on their power bill relating to demand charts.
For data centers call centers refineries industrial facilities and retailers with perishable even inventory even a brief power interruption as a business challenge that cannot be tolerated for others. It is a never ending increase on their power bill relating to demand charges.
Nathan: Backup generation, peak shaving, peak skimming, battery storage, and the use of renewable energy sources is a matter of business continuity and profitability, achieving these objectives, however, it can be challenged.
Backup generation peak shaving peaks skimming battery storage and the use of renewable energy sources as a matter of business continuity and profitability achieving these objectives. However, it can be challenging.
Nathan: The second secular tailwind is the growing popularity of electric vehicles. The charging infrastructure for electric vehicles has not kept up with their demand, and there is a growing need for high-capacity, off-grid charging solutions. Retailers, restaurants, hotels and casinos, concerts, trade shows, and sport venues and workplaces are moving quickly to add charging solutions.
The second secular tailwind is the growing popularity of electric vehicles, the charging infrastructure for electric vehicles has not kept up with their demand and there is a growing need for high capacity off grid charging solutions retailers restaurants hotels and casinos concerts trade shows and sports venues in workplaces.
We are moving quickly to add charging solutions. These additions are not simple requiring city county type permits civil and electrical and architectural engineering and third party approvals like utilities and facility owners. All of this takes time, usually more than a year and occurs additional call.
Nathan: These additions are not simple, requiring city, county-type permits, civil and electrical and architectural engineering, and third-party approvals like utilities and facility owners. All of this takes time, usually more than a year, and occurs additional costs that are slowing down the necessary EB charging infrastructure build-out, impacting the EB vehicle adoption.
That is slowing down the necessary EV charging infrastructure build out impacting the EV vehicle adoption.
Nathan: The biggest hurdle in this process is often the grid capacity itself and the necessary power infrastructure to add the large demand from EV charging in locations like older apartments and condo complexes, rendering these locations with no solution for EV charging and those building residents with no option to adopt electric vehicles.
The biggest hurdle in this process is often the grid capacity itself and the necessary power infrastructure to add the large demand from EV charging in locations like older apartment and condo complexes rendering these locations with no solution for EV charging and those building residents with no option two.
Adopt electric vehicles. This has been driving the demand for a decarbonising off grid mobile solution for EV charging.
Nathan: This has been driving the demand for a decarbonizing off-grid mobile solution for EV charging.
Nathan: Our eBlock solution provides a critical system for expanded distributed energy generation.
R E block solution provides a critical system for expanded distributed energy generation.
Nathan: Our grid on a SKID eBlock is a rapidly deployable, customized product.
Our grid on a skit E block is a rapidly deployable customized product that enables easy connection of onsite solar wind peak shaving energy storage or backup generation. It is skid mounted outdoor right. It can be deployed almost anywhere and can manage.
Nathan: that enables easy connection of on-site solar, wind, peak shaving, energy storage, or backup generation. It is skid-mounted outdoor
Nathan: can be deployed almost anywhere and can manage almost any type of energy resource. With this, customers can utilize solar, wind, or any other renewable energy source.
Most any type of energy resource with this customers can utilize solar wind or any other renewable energy source, while maintaining their traditional connection to the grid.
Nathan: while maintaining their traditional connection to the grid.
Nathan: More specifically, during the fourth quarter, we were awarded our largest e-block order to date, valued at approximately $12 million.
More specifically during the fourth quarter, we were awarded our largest E block order to date valued at approximately $12 million.
Nathan: The order comprises 62 e-block units destined to be installed at 62 different store locations of one of the nation's largest mass retailers. These units will improve the electrical resiliency, redundancy, and power capacity at these locations and are expected to begin shipping in the second quarter this year.
The order comprises 62 E block units destined to be installed at 62 different store locations one of the nation's largest mass retailers. These units will improve will improve the electrical resiliency redundancy and power capacity at the look at these locations and are expected to be.
Again shipping in the second quarter this year.
Nathan: In addition, these units represent only the initial phase of this retailer's target of approximately 500 additional store locations over the next few years. I'd note this retailer has several thousand locations overall and this is just one of many large retailers that we are targeting.
In addition, these units represented only the initial phase of this retailers target of approximately 500 additional store locations over the next few years I'd note. This retailer has several thousand locations overall and this is just one of many large retailers that we are targeting.
Nathan: In addition, during the fourth quarter, we also received a $500,000 order for eBlock to be deployed as part of a Southern California Utilities Hydrogen Fuel Cell Residential Demonstration Project.
In addition, during the fourth quarter. We also received a $500000 500000 dollar order for E block to be deployed as part of a southern California utilities hydrogen fuel cell residential demonstration project.
Nathan: Our eBlock solution will provide a packaged electrical solution tasked with integrating and controlling the various distributed energy resources, including a hydrogen fuel cell.
R E block solution will provide a packaged electrical solution tasked with integrating and controlling the various distributed energy resources, including a hydrogen fuel cell.
Nathan: photovoltaic solar and energy storage to form an islanded microgrid that can support the power needs of the prototype to StoryModelHome. This system eliminates the need for connectivity to a public utility grid. We expect to ship this system in the second quarter of this series.
Photovoltaic solar and energy storage to form an island at micro grid that can support the power needs of the prototype two story model home. This system eliminates the need for connectivity to a public utility grid, we expect to ship. This system in the second quarter of this year.
Nathan: These two wins for eBlock validate our development of this innovative product. Our focus now is to leverage this initial success to bring eBlock to a much wider group of energy developers and users.
These two wins for E Black E block validate our development of this innovative product. Our focus now is to leverage. This initial success to bring E block to a much wider group of energy developers and users.
Nathan: eBlock is a compelling solution to a persistent problem. It makes distributed generation easy, affordable, and fast.
E block as a compelling solution to a persistent problem. It makes distributed generation easy affordable and fast customers are seeking energy energy independence or at least grid independence to utilize more than one energy source, including solar and wind and insulate businesses from the issues are.
Nathan: Customers are seeking energy independence or at least grid independence.
Nathan: to utilize more than one energy source, including solar and wind and insulate businesses from the issues of an aging energy grid. In addition, many customers are looking to add charging system for EVs to their infrastructure. We make both possible much more rapidly and cost-effectively than historical solutions. More importantly, they represent just a tiny portion of a much larger opportunity and an opportunity that is growing quickly. During 2020,
And aging energy grid. In addition, many customers are looking to add charging system for evs to their infrastructure, we make both possible much more rapidly and cost effectively than historical solutions more importantly, they represent just a tiny portion.
Are they much larger opportunity and an opportunity that it's growing quickly during 2022 .
Nathan: We will be delivering eBlock to senior living centers, supermarket change, chains, and warehouse fulfillment centers. These are just some of the orders already committed and in our backlog. Again, our focus is on expanding the addressable market, and we are making steady progress in achieving this goal.
We will be delivering E block the senior living centers supermarket change chains and warehouse fulfillment centers. These are just some of the orders already committed and in our backlog again, our focus is on expanding the addressable market and we are making steady progress in achieving this goal.
Nathan: The other secular trend I mentioned with EB Charging, and we have created a new business unit, Pioneer Power Mobility, and launched a new suite of solutions for this market in November called eBoost. eBoost is a self-contained high-capacity mobile charging solution, sustainably powered through a green fuel with low GHG emissions, and designed for roadside, event and quick charge logistics.
The other secular trend I mentioned with EV charging and we have created a new business unit pioneer power mobility and launched a new suite of solutions for this market in November called eat boost E. Boost is a self contained high capacity mobile charging solution sustainably powered.
Through green fuel with low G. H G emissions and designed for roadside event and quick charge logistics. The rapid growth of Bvs has made on demand off grid charging a priority we are poised to meet this demand.
Nathan: The rapid growth of ebbs has made undemand off-grid charging a priority. We are poised to meet this demand.
Nathan: We have created three delivery platforms of eBoost in order to better serve varied user requirements.
We have created three delivery platforms of E boost in order to better serve varied user requirements.
First.
Nathan: is E-Boost G-O-A-T GOAT, which stands for Generator on a Truck. This is a truck mounted EV charging solution, which is fully mobile and can provide high-speed charging anywhere.
Is he boost G O a T goat, which stands for generator on a truck. This is a truck mounted EV charging solution, which is fully mobile and can provide high speed charging anywhere.
Nathan: Second, eBoost Mobile is a trailer-mounted solution that provides multiple options for towing and can be available at specific businesses, large sports and cultural events, and can be relocated with minimal effort and on short notice.
Second E boost mobile is a trailer mounted solution that provides multiple options for towing and can be available at specific businesses large sports and cultural events and can be relocated with minimal effort and on short notice.
Nathan: Finally, there is E-Boost Pod, a primarily stationary
There is E booth pod it primarily stationery.
Nathan: pod and skid-based EV charging solution with as needed mobility that can provide easy charging to multiple vehicles.
Pat and skip based EV charging solution with as needed mobility that can provide easy charging to multiple vehicles. This is an ideal solution for gas stations hotels and other retail locations that utilize EV charging to increase customer traffic in.
Nathan: This is an ideal solution for gas stations, hotels, and other retail locations that utilize EV charging.
Nathan: to increase customer traffic and retention, or as merely a brand differentiator. All eBoost platforms are designed to provide on-demand power needs, especially in emergency situations.
Retention or is merely a brand differentiator all E. Boost platforms are designed to provide on the manpower needs, especially in emergency situations such as a power outage, serving as a backup power source with convenient power connections and outlets available on board, we have already booked in <unk>.
Nathan: such as a power outage, serving as a backup power source with convenient power connections and outlets available on board.
Nathan: We have already booked and shipped our first sale, a significant order of nearly $800,000 being deployed at a hotel and casino, and will recognize meaningful revenue from e-boost in the first quarter or current quarter.
Their first sale a significant order of nearly $800000 being deployed at a hotel and casino and will recognize meaningful revenue from E boost in the first quarter our current quarter.
Nathan: Just recently, we won a second order from a turnkey EV fleet charging infrastructure solutions provider and a pioneer authorized channel partner. The sale is for two of our e-booth skid-mounted pod solutions.
Just recently, we won a second order from a turnkey EV fleet charging infrastructure solutions provider and a pioneer authorized channel partner the sale list for two of our E. Booth skid mounted part solutions to be used for recharging trucks.
Nathan: to be used for recharging trucks at the customer's dealerships and electrical school buses at the bus depot. The selection of e-boosts was made on the basis that it was off-grid.
The customers dealerships and electrical school buses at the bus depot the selection of Ey booths was made on the basis that it was off grid sustainable portable and can be delivered to the EV manufacturer in a timely fashion and support their dealerships with this.
Nathan: sustainable, portable, and could be delivered to the EV manufacturer in a timely fashion and support their dealerships with subsequent sales of these products. We expect these units to be delivered during the second quarter this year.
Subsequent sales, which subsequent sales of these products. We expect these units to be delivered during the second quarter. This year.
Nathan: These two orders were won soon after we launched the suite of e-boost products in November of last year. Market reception is overwhelming. We believe we are the only company offering a high-capacity, fast-charging, mobile solution powered by transportable and available liquid propane. This allows a user greater charging capacity and faster charging than any other solution.
These two orders were what were one soon after we launched the suite of <unk> products in November of last year market reception is overwhelming we believe we are the only company offering a high capacity fast charging mobile solution powered by transportable and available liquid propane.
This allows a greater user greater charging capacity and faster charging than any other solution. In fact for 2022, we expect a boost to represent as much as 10% of our annual revenue.
Nathan: In fact, for 2022, we expect e-boos to represent as much as 10% of our annual revenue.
Nathan: Not our pipeline or our backlog, but recognized revenue in 2022. Further, we expect e-boost revenue to double in 2023 from 2022 levels.
Not our pipeline or our backlog, but recognized revenue in 2022 further we expect E boost revenue to double in 2023 from 2022 levels. The.
Nathan: The progress we've made is reflected in our backlog. During the fourth quarter, our backlog more than doubled from $10.9 million at September 30 to $22.8 million as of December 31. Again, our backlog is not a pipeline. Our backlog represents firm, non-cancelable orders, most of which are expected to be delivered over the next 12 days.
The progress we've made is reflected in our backlog during the fourth quarter, our backlog more than doubled from $10 $9 million at September 30th to $22 $8 million as of December 31.
Again, our backlog is not a pipeline or backlog represents firm noncancelable orders most of which are expected to be delivered over the next 12 months based on this backlog and the accelerating demand for these solutions, we expect year over year revenue to grow by more than 50 person.
Nathan: Based on this backlog and the accelerating demand for these solutions, we expect year over year revenue to grow by more than 50 percent this year.
This year.
Nathan: The underlying trends are strong and the market opportunity is significant. We do not see any slowdown in this.
The underlying trends are strong and the market opportunity is significant we do not see any slowdown in these trends our focus is to capitalize on them to the best of our ability benefiting from our first mover advantage. In addition, we expect significant margin expansion expansion.
Nathan: Our focus is to capitalize on them to the best of our ability, benefiting from our first mover advantage. In addition, we expect significant margin expansion.
Nathan: The growth is exciting and validates our strategy. We have developed differentiated solutions that meet a large and growing demand, but more importantly, these products will enable us to expand our margins as well. You should expect to see steady year-over-year improvements in our margins as we move through this year.
The growth is exciting and validates our strategy, we have develop differentiated solutions that meet a large and growing demand, but more importantly, these products will enable us to expand our margins as well you should expect to see steady year over year improvements in our margins as we move through.
This year.
Nathan: Over the coming weeks and months, I am confident you will hear more from us about new deployments of e-boost and e-block and the positive impacts our solutions are having for our cars.
Over the coming weeks and months I'm confident you will hear more from us about new deployments of E. Boosting E block and the positive impacts our solutions are having for our customers.
Nathan: With that, let me turn the call over to Walter, our CFO , to discuss our financial results. Thank you, Nathan.
With that let me turn the call over to Walter our CFO to discuss our financial results.
Thank you Nathan and good afternoon, everyone.
Walter McHaeick: Revenues were $3.5 million for the fourth quarter of 2021, down 35% year-over-year compared to $5.4 million in the fourth quarter of 2020.
Revenues were $3 $5 million for the fourth quarter of 2021.
Down 35% year over year compared to $5 4 million in the fourth quarter of 2020.
Walter McHaeick: As Nathan indicated, we are just beginning to see the significant contribution of e-block sales. And the first e-boost sale was booked during the current quarter.
As Nathan indicated we are just beginning to see the significant contribution of E block sales and the first <unk> sale was booked during the current quarter.
Walter McHaeick: Additionally, our fourth quarter results were impacted by supply chain disruptions pushing a significant amount of revenue into 2022.
Additionally, our fourth quarter results were impacted by supply chain disruptions pushing a significant amount of revenue into 2022.
Selling general and administrative expenses of $1 5 million during the fourth quarter were 43% of revenues an increase of approximately $300000 when compared to $1 $2 million and a year ago quarter.
Walter McHaeick: selling, general, and administrative expenses of $1.5 million during the fourth quarter were 43 percent of revenue.
Walter McHaeick: an increase of approximately $300,000 when compared to $1.2 million in the year ago quarter.
Walter McHaeick: Operating loss for the fourth quarter of 2021 was 1.5 million.
Operating loss for the fourth quarter of 2021 was $1 5 million.
Walter McHaeick: compared to an operating loss of 900,000.
Compared to an operating loss of 900000.
In the year ago period.
Walter McHaeick: Net loss for the fourth quarter of 2021 was $1.4 million or negative $0.16 per share compared to a net loss of $744,000 or negative $0.09 per share during the fourth quarter of 2020. Now, turning to the full-year financial results. Total revenue for the fourth quarter of 2021 was $1.4 million or negative $0.10 per share during the fourth quarter of 2020.
Net loss for the fourth quarter of 2021 was $1 $4 million were negative 16 cents per share compared to a net loss of $744000 or negative nine cents per share during the fourth quarter of 2020.
Now turning to the full year financial results.
Total revenue was $18 $3 million down, 6% compared to 19 and a half million dollars for the same period last year.
Walter McHaeick: down 6% compared to $19.5 million for the same period last year.
Walter McHaeick: Pioneer's gross profit increased 58% to 1.4 million or 8% of revenue from 881,000 or 5% of revenue for the same period last year.
Pioneers growth gross profit increased 58% to $1 4 million.
Or 8% of revenue.
From 881000 or 5% of revenue for the same period last year.
Walter McHaeick: The significant increase in the gross profit was the result of strict management of overhead costs and pricing power in our end markets.
The significant increase in gross profit was the result of strict management of overhead costs and pricing power in our end markets. Additionally.
Walter McHaeick: Additionally, the company recognized a $546,000 write-down of inventory during 2020 as a result of management's strategic decisions to rationalize its traditional product offerings and focus on higher-margin equipment.
Additionally, the company recognized a $546000 write down of inventory during 2020 as a result of management's strategic decisions to rationalize its traditional product offerings and focus on higher margin equipment sales and there was no comparable write off.
Walter McHaeick: and there was no comparable write-off during 2021.
During 2021.
Walter McHaeick: Full year, SG&A expenses were up 2% to $5.3 million, where 29%
Full year, SG&A expenses were up 2% to $5 $3 million or 29% of revenues compared to $5 2 million or 27% of revenues during 2020.
Walter McHaeick: compared to 5.2 million, where 27% of revenues during 2020.
Walter McHaeick: Operating loss during 2021 decreased 10% to $3.9 million.
Operating loss during 2021 decreased 10% to $3 9 million from $4 $3 million during 2020.
Walter McHaeick: from $4.3 million during 2020.
Net loss was $2 2 million or negative <unk> 24 cents per share.
Walter McHaeick: net loss was $2.2 million or negative $0.24 per share compared to a net loss of $3 million or negative $0.34 per share last year.
Compared to a net loss of 3 million or negative 34 cents per share last year.
Walter McHaeick: That's approximately a 30 percent improvement to our bottom line.
That's approximately a 30% improvement to our bottom line.
Turning to the balance sheet and statement of cash flows.
Walter McHaeick: We had cash, including restricted cash, of $11.7 million and zero debt at December 31, 2021, compared to cash of $7.6 million and debt of $1.4 million at December 31, 2020.
We had cash including restricted cash of $11 $7 million and zero debt at December 31, 2021.
Compared to cash of $7 $6 million.
And debt of $1 $4 million at December 31, 2020.
Walter McHaeick: During the 4th quarter, the company sold 888,500 shares of common stock under the ATM program at an average price of $10.13 per share for net proceeds of approximately $8.7 million.
During the fourth quarter. The company sold 888500 shares of common stock under the ATM program at an average price of $10.13 per share for net proceeds of approximately $8 $7 million.
Walter McHaeick: We plan to use the net proceeds to advance our eBlock and eBoost mobile charging businesses, working capital needs, and other general corporate purposes.
We plan to use the net proceeds to advance our E block and E boost mobile charging businesses working capital needs and other general corporate purposes.
Walter McHaeick: For the year end of December 31, 2021, our cash used in operations decreased to $2.4 million compared to 2022 when we used cash in operations of $3.6 million.
For the year ended December 31, 2021, our cash used in operations decreased to $2 $4 million compared to 2022, when we used cash in operations of $3 $6 million.
Walter McHaeick: I also think it's worth noting that as part of the sale of our Transformer Business Units in the second half of 2019, we received two subordinated promissory notes.
I also think it's worth noting that as part of the sale of our transformer business units in the second half of 2019, we.
We received two subordinated promissory notes.
Walter McHaeick: We expect to receive approximately six and a half million dollars in cash from the maturity of those notes by the end of this year, 2022.
We expect to receive approximately six and a half million dollars in cash from the maturity of those notes by the end of this year 2022.
Walter McHaeick: As Nathan said, we view 2022 as a year of growth and margin expansion.
As Nathan said, we view 2022, as a year of growth and margin expansion based.
Walter McHaeick: based primarily on our backlog, as well as the significant and accelerating demand for our new solutions. We believe we can grow revenue by at least 50% in 2022, compared to 2021. And further, we expect meaningful margin expansion.
Based primarily on our backlog as well as the significant and accelerating demand for our new solutions. We believe we can grow revenue by at least 50% in 2022, when compared to 2021 and further we expect meaningful margin expansion.
Speaker Change: This concludes my remarks, and now I turn the call back over to the operator for any questions. Thank you all for your time.
This concludes my remarks, and I'll now I turn the call back over to the operator for any questions.
Thank you all for your time, Okay, I'm sorry, operator.
Speaker Change: Thank you. If you would like to signal with questions, please press star 1 on your touch tone telephone. If you're joining us today using a speakerphone, please make sure your mute function is turned off to allow your signal.
Thank you if you would like to signal with questions. Please press star one on your Touchtone telephone.
Joining us today use a speaker phone. Please make sure. Your mute function is turned off to allow your signal to reach our equipment again that is star. One if you would like to signal with question Star one or.
Speaker Change: Again, that is star one, if you would like to signal with questions, star one. Our first question today will come from Almond Dale with H7.
Our first question today will come from Amit Dayal with H C Wainwright.
Yeah.
Thank you good afternoon, everyone.
Dale: Nathan, just on the gross margin, hey Nathan, on the gross margin outlook, are we
Listen on the gross margin.
Just on the gross margin outlook E <unk>.
Mathan: expecting margin improvements primarily to come from the TND segment or the critical power segment?
Expecting margin improvements primarily to come from the T&D segment or liquidity or critical power segment.
Both.
Mathan: Okay. And on the T&D segment, it's going to come mostly really from the volume, so we get the leverage there on the volume, and on the critical power segment, that's where the e-booth sales are being segmented, and they are good margin profitable sales for us.
Okay and on the on the T&D segment, that's going to come mostly really from the volume. So we get the we get the leverage there on the volume in on the on the critical power segment, that's where the E boost sales our are being <unk>.
Being segmented in and they are they are good.
Good margin profitable sales for us.
So.
Mathan: Can you maybe set a range of what we could potentially expect from, you know, these improvements, is it, you know, 10% to 15% and ended margins?
Can you maybe slipped a range of what we could potentially expect from these improvements.
10% to 15% margins.
Speaker Change: Yeah, we hesitate to do it until we get at least one quarter under our belts at a different volume than we've been used to the last two years with the different mix.
Yeah, we we hesitated to do it until we get at least one quarter under our belt at a different volume than we've been used to the last two years with with the different mix. So we're really going to wait you know we we of course know what the revenues are already for the first quarter, we're going to wait and see you know what what kind of <unk>.
Speaker Change: So, we're really going to wait, you know, we of course know what the revenues are already for the first quarter, we're going to wait and see, you know, what kind of improvement we had, what was it due to, what can we really expect and that we hope maybe on the call we do in mid-May that we can kind of give an outlook for what we expect the year, you know, the year contribution margin to look like.
<unk>, we had what was it due to what can we really expect and that we hope maybe on the call. We do in mid May that we can kind of give an outlook for what we expect the year you know the year contribution margin to look like.
Okay understood.
Speaker Change: the 50% year-over-year growth you're expecting, could you sort of give us the cadence of quarterly revenues that you're expecting? Is this going to be weighed more towards the second half of the year or are you expecting sort of an even distribution given that your backlog has grown pretty strong?
This.
The 50% year over year growth, you're expecting could you sort of give us a.
The cadence of quarterly revenues that Youre expecting is this gonna be weighed more towards the second half of the year.
Or are you expecting sort of an even distribution given that you know your backlog has grown pretty strongly.
Speaker Change: Yeah I would say that definitely the second half of the year the cadence is going to be even higher but I think that you will you will see already not just the small amount but you'll see quite
Yeah, I would say that definitely the second half of the year. The cadence is going to be even higher but I think that you will you will see already not just a small amount, but you will see quite a quite quite it's quite quite strong gains you know year over year, both sequentially into the into the first quarter of 2021.
Speaker Change: quite strong gains, you know, year over year, both sequentially into the first quarter of 2021 in 2022 compared. Those will be evident already in the first quarter. Okay.
In 2022 compared to those will be evident already in the first quarter.
Okay.
And your the.
Speaker Change: the relationship with the national retail customer. Have you spotted deliveries for them already in 2020? No, the first deliveries are slated for the end of the second quarter.
The relationship with the National major customer have you started deliveries for them already.
No. The first the first deliveries are slated for the end of the second quarter, assuming everything goes according to hoyle. So far so good anything could happen, but that's.
Speaker Change: assuming everything, you know, goes according to Hoyle, so far so good, anything could happen, but that's what we're expecting. Delivery start at the very end in June and the bulk of them, the bulk will probably be in the third quarter and they'll probably be a little bit left over into the fourth quarter.
That's that's what we're expecting delivery start the very end in June .
And the bulk of them the bulk would probably be in the third quarter and they'll probably be a little bit left over into the fourth quarter.
Okay. Thank you.
Speaker Change: Any issues from supply chain related challenges in terms of meeting these deliveries?
Any any issues from a supply chain related challenges in terms of meeting these.
The government is good news.
Speaker Change: All day long, we've tried on both sides of the business. We've tried to be ahead of it. We're holding a lot of critical and more difficult components, long lead items as early as we can, like circuit breakers and other kinds of control components.
So all day long.
We've tried on both sides of the business we've tried to be ahead of it.
We're holding a lot of critical and more difficult components long lead items as early as we can like like circuit breakers and other kinds of control components.
Speaker Change: We're holding engine inventory so that we're able to meet some of these. Frankly, if we wouldn't have had the inventory, we wouldn't have sold, you know, the e-boost unit that we sold two weeks ago. We wouldn't have taken the order that we just did for this trucking slash electrical bus business. It just wouldn't happen. So having the inventory is great.
Where we were holding engine inventory so that we're able to meet some of these frankly, if we wouldn't have had the inventory we wouldn't have so you know the <unk> unit that we sold two weeks ago, we wouldn't have taken the order that we just did.
For this trucking slash electrical bus business it just wouldn't happen.
Having the inventory is great.
And that's we're trying to be judicious about it.
Speaker Change: How is the e-boost performing for customers?
Okay awesome.
How is the most books lobbing for customer social.
Ethan: So far, so good, you know, very few call to tell you how great you are, they only call to complain, so I mean, no complaints, so that's good.
So far so far so good you know very few call to tell you how great. You are the only called the complaint so I mean no complaints so that's good.
Ethan: Thank you so much. That's a lot of time. Thank you, Emmett. Pleasure to hear you.
Good to hear that.
Thank you so much that's all lives. Thank you Amit pleasure to hear you.
Once again, if you would like to signal with questions. Please press star one on your Touchtone telephone.
Ethan: questions, please press star one on your touchtone telephone.
Ethan: That is star one if you would like to signal with questions.
That is star one.
If you would like to signal with questions, we will pause for just a moment.
Speaker Change: At this time, there are no further questions. I now turn the conference back to you.
At this time there are no further questions I'll now turn the conference back over to you for any additional or closing remarks.
Thank you operator, thank you all for your time and support we believe that this will be a milestone year for pioneer power as we emerge and transition into a recognized leader in the distributed generation and EV charging marketplace. We look forward to updating you again on our next call.
Speaker Change: Thank you operator. Thank you all for your time and support. We believe that this will be a milestone year for Pioneer Power as we emerge and transition into a recognized leader in the distributed generation and EV charging marketplace. We look forward to updating you again on our next call.
Well, thank you and that does conclude today's conference. We do thank you for your participation and have an excellent day.
Thank you.