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Photo Release -- PSI Announces Successful 4.3L LP Engine Program for Hyundai Forklifts
WOOD DALE, Ill., April 26, 2013 (GLOBE NEWSWIRE) -- Clean technology engine supplier Power Solutions International, Inc. ("PSI") (PSIX) today announced successful results for its Tier IV diesel engine replacement program with Hyundai Heavy Industries Co., Ltd. PSI supplies Hyundai with 4.3-liter liquid propane engines for its 7A series 60/70L LPG forklift trucks, supporting production at Hyundai's manufacturing facility in Ulsan, South Korea.
A photo accompanying this release is available at http://www.globenewswire.com/newsroom/prs/?pkgid=18367
"PSI is delighted to work with Hyundai to power their 7A LPG forklifts," said Gary Winemaster, Chief Executive Officer of PSI. "The project is helping us build a stronger supply partnership with Hyundai, and also serves as an excellent demonstration of how well our propane industrial engines outperform other options in terms of power and torque."
The PSI 4.3-liter LP engine delivers 118 horsepower and 240 ft-lbs of torque at 2,600 rpm when running on liquid propane fuel. The high-output engine offers end-users greater acceleration, better gradability, and fast travel speeds on tough terrains and slopes. PSI's fuel and emission control system meets all EPA and CARB emission regulations for large spark-ignited (LSI) engines.
"Customers expect our Series 7A forklifts to provide strong acceleration and powerful torque in combination with excellent fuel economy and durability," said Tim Webb, Manager, Product Development, Hyundai Construction Equipment, Americas. "PSI's 4.3-liter engine meets all of our performance demands in a cost-effective, emission-compliant package that is helping us gain market share."
"The forklift market has been one of PSI's fastest growing segments in recent years, as OEMs continue to shift to cost-competitive, emission-compliant liquid propane engines. As a result, PSI's forklift engines sales nearly tripled in the last two years," said Jeremy Lessaris, Director of Marketing at PSI.
Propane engines now represent between 80% and 90% of the internal combustion forklift lift market—over 670,000 engines in the US according to the Propane Education & Research Council (PERC). Forklift users have shifted to propane-fueled equipment due to lower costs, operational advantages, and reduced emissions, particularly since Tier IV diesel emission regulations went into effect. Compared to diesel engines, propane-powered forklifts generally have lower life-cycle costs for both maintenance and fuel-related expenses. Operationally, propane offers greater convenience in refueling, ease of storage, greater safety, and indoor/outdoor-use flexibility. Propane-powered forklifts also provide consistent 100%-power throughout operations, as well as faster ground speeds compared to electric vehicles.
About PSI
Power Solutions International (PSI) is a leader in the design, engineering and manufacture of emissions-certified, alternative-fuel power systems. PSI provides integrated turnkey solutions to leading global original equipment manufacturers in the industrial, off- and on-road markets. The company's unique in-house design, prototyping, engineering and testing capacities allow PSI to customize clean, high-performance engines that run on a wide variety of fuels including natural gas, propane, biogas, and gasoline.
PSI develops and delivers complete power systems ranging from .97-liter to 22-liters of displacement, including the 8.8-liter engine aimed at industrial and on-highway markets such as medium-duty fleets, delivery trucks, school buses, and refuse trucks. PSI power systems are currently used worldwide in power generators, forklifts, aerial lifts, and industrial sweepers, as well as in oil and gas, aircraft ground support, agricultural, and construction equipment.
For more information on PSI, visit http://www.psiengines.com.
Contact:
Jeremy Lessaris
Director of Marketing
Power Solutions International
Mobile: 1.630.350.9400
E-mail: jlessaris@psiengines.com
PSI and Capacity Launch Medium-Duty Truck Collaboration at MATS 2013
WOOD DALE, Ill., March 27, 2013 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. (PSIX), and Capacity of Texas, Inc. announced a collaboration to bring the attractive economics of natural gas engines to the medium-duty truck market. The alternatively-fueled PSI 8.8-liter, on-highway-certified engine will be used in Capacity's TJ5000 tractor, which is designed for warehouse and distribution applications. The two companies exhibited this option in the Capacity booth at the 2013 Mid-America Trucking Show (MATS), an annual forum for the heavy-duty trucking industry that took place March 21--23 at the Kentucky Expo Center in Louisville, Kentucky.
"PSI is broadening its range of medium- to heavy-duty truck offerings," said Jeremy Lessaris, Director of Marketing at PSI. "We are excited to continue that growth by collaborating with Capacity."
According to Lessaris, the high-performance, 8.8-liter "big block" replacement offers 20% across-the-board improvements in power and 15% better fuel-efficiency over its most popular alternative, the now-discontinued General Motors 8.1-liter. PSI designed the engine to run on a variety of fuels, including compressed natural gas, propane, and gasoline. The PSI 8.8-liter provides 430 horsepower and 600 lb.-ft. of torque at 3400 RPM.
Dan Grohoski, Director of New Business Development for PSI, explained that medium- to heavy-duty truck markets are actively seeking engine replacements as existing big block inventories wind down. "Up until now, most offerings compromised on power, efficiency or emissions reduction," Mr. Grohoski added. "The PSI 8.8-liter offers OEMs a totally integrated solution with no compromises."
Capacity's durable and functional TJ5000 tractor provides 81,000 pounds of gross combined weight capability and is designed for a wide variety of yard, warehouse and distribution applications.
"Capacity is a terminal truck design leader because we listen to our customers," said Phillip Ford, the President of Capacity of Texas. "This collaboration with PSI helps us to continue pushing the cargo industry forward by offering cost-effective, alternative-fuel products that meet the demands of today's market."
PSI launched the 8.8-liter engine at the RVIA National RV Trade Show in November 2011. The 8.8-liter is capable of fulfilling power, efficiency, emissions and fuel-flexibility needs across a wide range of applications, including waste-hauling trucks, school buses, recreational vehicles, and medium-duty trucks.
About Power Solutions International, Inc.
Power Solutions International, Inc. (PSI) is a leader in the design, engineering and manufacture of emission-certified, alternative-fuel power systems. PSI provides integrated turnkey solutions to global original equipment manufacturers in the industrial off- and on-road markets. The company's in-house design, prototyping, engineering and testing capacities allows PSI to customize clean, high-performance engines that run on a wide variety of fuels including natural gas, propane, biogas and gasoline.
PSI develops and delivers complete power systems with engines ranging from .97-Liter to 22-Liters of displacement, including the new 8.8-Liter engine aimed at the industrial and on-highway markets including medium duty fleets, delivery trucks, school buses and garbage/refuse trucks. PSI power systems are currently used worldwide in power generators, forklifts, aerial lifts, and industrial sweepers, as well as in oil and gas, aircraft ground support, agricultural, and construction equipment. For more information on PSI, visit http://www.psiengines.com.
About Capacity of Texas, Inc.
Capacity of Texas, Inc., has been serving the terminal tractor industry for nearly 40 years under the Trailer Jockey(R) brand. Capacity manufactures the Trailer Jockey(R) completely in-house and is solely focused on the manufacture and support of this product. Located in Longview, Texas, Capacity is a wholly owned subsidiary of Allied Specialty Vehicles, Inc, ("ASV") and is the largest American owned manufacturer of terminal tractors in North America, offering a full product line of terminal trucks used throughout the world. Capacity distributes products through a national and international authorized representative network. For a current listing of Capacity products and authorized representatives, visit www.capacitytexas.com.
Contact:
Jeremy Lessaris
Director of Marketing
Power Solutions International
Mobile: +1 (630) 350-9400
E-mail: jlessaris@psiengines.com
Power Solutions International Extends Supply Agreement With General Motors Into On-Highway Applications
WOOD DALE, Ill., March 25, 2013 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. (PSIX), a leader in the design, engineering and manufacture of emissions-certified alternative-fuel and conventional power systems, today announced a multi-year supply agreement with General Motors (GM) that will extend the company's product line targeted at On-Highway applications.
PSI will use GM's 4.8-Liter and 6.0-Liter engines and associated transmission as the foundation for complete powertrain solutions for the medium-duty truck and bus market. The 4.8-Liter and 6.0-Liter represent additional power nodes complementing PSI's 8.8-Liter power system announced in 2012. With this product line extension, PSI believes it has one of the most comprehensive ranges of powertrains for vehicle OEMs in the Class 4 through Class 7 truck and bus market.
PSI has been using GM engines for industrial applications since 1995. With this extension into on-highway applications, the agreement represents a strengthening of PSI's partnership with GM.
"PSI is proud of its longstanding relationship with General Motors," said Gary Winemaster, Chief Executive Officer of PSI. "We have had great success in collaboration with GM in the industrial markets, and are confident this new extension into on-highway vehicles will be equally successful. There are many exciting opportunities for alternative fuel engines in the medium-duty truck and bus market, and we now have an extensive power system lineup to pursue these opportunities."
"Our expanded product line can simplify our customers' operations, reduce complexity and unify support across all of our OEM customers' products," said Dan Grohoski, Director of New Business Development for PSI. "Our fuel-flexible engines allow fleets to select the fuel strategy that best fits their needs. In addition, reduced supply chain complexity is a significant benefit for our OEM customers. We enable them to work with a single control and software platform, one parts and servicing company, and one training system."
For more information about PSI, visit http://www.psiengines.com.
About Power Solutions International, Inc.
Power Solutions International, Inc. (PSI) is a leader in the design, engineering and manufacture of emission-certified, alternative-fuel power systems. PSI provides integrated turnkey solutions to global original equipment manufacturers in the industrial off- and on-road markets. The company's in-house design, prototyping, engineering and testing capacities allows PSI to customize clean, high-performance engines that run on a wide variety of fuels including natural gas, propane, biogas and gasoline.
PSI develops and delivers complete power systems with engines ranging from .97-Liter to 22-Liters of displacement, including the new 8.8-Liter engine aimed at the industrial and on-highway markets including medium duty fleets, delivery trucks, school buses and garbage/refuse trucks. PSI power systems are currently used worldwide in power generators, forklifts, aerial lifts, and industrial sweepers, as well as in oil and gas, aircraft ground support, agricultural, and construction equipment.
Contacts and Verifications
For more information about this release, please contact:
Contact:
Jeremy Lessaris
Director of Marketing
Power Solutions International
Mobile: +1 (630) 350-9400
E-mail: jlessaris@psiengines.com
Power Solutions International, Inc. Reports Fourth Quarter and Full Year 2012 Results
Fourth quarter net sales up 15% year over year, 1% sequentially
Fourth quarter net income of $745,000 or $0.08 per diluted common share
Fourth quarter adjusted net income of $1,973,000 or $0.21 per diluted common share
WOOD DALE, Ill., Feb. 28, 2013 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. (PSIX), a leader in the design, engineering and manufacture of emissions-certified alternative-fuel and conventional power systems, today announced its financial results for the fourth quarter and year ended December 31, 2012.
Fourth Quarter 2012 Results
Net sales for the fourth quarter of 2012 were $52,452,000, an increase of 15% from $45,489,000 in the fourth quarter of 2011, and a 1% increase from the third quarter of 2012. Sales in the quarter increased across most of the Company's major end markets.
Operating income was $3,014,000, an increase of 16% from $2,599,000 in the fourth quarter of 2011, and a 5% increase from the third quarter of 2012. Operating margin of 5.7% was unchanged from the previous year, and up slightly from the third quarter of 2012. Operating income in the fourth quarter of 2012 includes costs of $206,000 related to the early termination of a lease. The Company terminated this lease as part of its previously announced facility consolidation. The after-tax impact of the early termination cost reduced net income by $124,000, or $0.01 per diluted common share.
Other expense for the fourth quarter includes a non-cash charge of $1,104,000 (or $0.12 per diluted common share) resulting from an increase in the estimated fair value of the liability associated with the warrants issued in the Company's April 2011 private placement.
Net income for the fourth quarter of 2012, which includes the warrant revaluation adjustment and lease termination costs, was $745,000 or $0.08 per diluted common share. This compares to net income of $585,000 or $0.06 per diluted common share for the fourth quarter of 2011, which also includes a warrant revaluation adjustment. Net income for the fourth quarter of 2012 adjusted to remove the warrant revaluation impact and lease termination costs was $1,973,000 or $0.21 per diluted common share. This compares to adjusted net income for the fourth quarter of 2011 of $1,658,000 or $0.18 per diluted common share.
Summary of Diluted EPS Attributable to Common Stockholders
"Adjusted" removes the impact of warrant revaluation and facility consolidation costs
Q4 2012 Q3 2012 Q4 2011 Seq. Growth Y/Y Growth
EPS $0.08 $0.20 $0.06 (60%) 33%
Adjusted EPS $0.21 $0.20 $0.18 5% 17%
Reconciliation of Net Income to Adjusted Net Income
(Dollar amounts in 000's)
Three
months
ended
December
31, 2012 Three
months
ended
December
31, 2011
Net Income $ 745 $ 585
Non-cash expense from warrant revaluation 1,104 1,073
Facility relocation costs 124 --
Adjusted Net Income $ 1,973 $ 1,658
Reconciliation of Diluted EPS to Adjusted Diluted EPS
Three
months
ended
December
31, 2012 Three
months
ended
December
31, 2011
Diluted earnings per common share $ 0.08 $ 0.06
Non-cash expense from warrant revaluation 0.12 0.12
Facility relocation costs 0.01 --
Adjusted diluted earnings per common share $ 0.21 $ 0.18
Reconciliation of Net Income to Adjusted Net Income
(Dollar amounts in 000's)
Twelve
months
ended
December
31, 2012 Twelve
months
ended
December
31, 2011
Net Income $ 6,702 $ 4,061
Non-cash expense from warrant revaluation 448 382
Facility relocation costs 305 --
Adjusted Net Income $ 7,455 $ 4,443
Reconciliation of Diluted EPS to Adjusted Diluted EPS
Twelve
months
ended
December
31, 2012 Twelve
months
ended
December
31, 2011
Diluted earnings per common share $ 0.74 $ 0.44
Non-cash expense from warrant revaluation 0.04 0.04
Facility relocation costs 0.03 --
Adjusted diluted earnings per common share $ 0.81 $ 0.48
Power Solutions International, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
(Dollar amounts in thousands, except per share amount)
December 31,
2012 December 31,
2011
ASSETS
Current assets
Cash $ 543 $ --
Accounts receivable, net 37,480 29,523
Inventories, net 39,968 33,393
Prepaid expenses and other current assets 1,910 1,291
Deferred income taxes 2,176 1,814
Total current assets 82,077 66,021
Property, plant, & equipment, net 7,145 3,611
Other noncurrent assets 1,543 1,451
Total assets $ 90,765 $ 71,083
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 26,579 $ 27,574
Income taxes payable 1,074 564
Accrued liabilities 5,011 4,015
Revolving line of credit -- 19,666
Current maturities of long-term debt -- 23
Total current liabilities 32,664 51,842
Revolving line of credit 30,942 --
Deferred income taxes 136 490
Long-term debt, net of current maturities -- 41
Private placement warrants 3,666 3,270
Other noncurrent liabilities 623 116
Total liabilities 68,031 55,759
Commitments and contingencies -- --
Stockholders' equity
Series A convertible preferred stock--$0.001 par value. Authorized: 114,000 shares. Issued and outstanding: -0- shares at December 31, 2012 and 2011. -- --
Common stock--$0.001 par value. Authorized: 50,000,000 shares. Issued: 9,909,212 and 9,895,462 shares at December 31, 2012 and 2011, respectively. Outstanding: 9,078,287 and 9,064,537 shares at December 31, 2012 and 2011, respectively. 10 10
Additional paid-in-capital 10,862 10,154
Retained earnings 16,112 9,410
Treasury stock, at cost, 830,925 shares at December 31, 2012 and 2011. (4,250) (4,250)
Total stockholders' equity 22,734 15,324
Total liabilities and stockholders' equity $ 90,765 $ 71,083
Power Solutions International, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(Dollar amounts in thousands, except per share amounts)
Three months
ended
December 31,
2012 Three months
ended
December 31,
2011 Twelve
months ended
December 31,
2012 Twelve
months ended
December 31,
2011
Net sales $ 52,452 $ 45,489 $ 202,342 $ 154,969
Cost of sales 44,006 38,087 168,425 128,541
Gross profit 8,446 7,402 33,917 26,428
Operating expenses
Research & development and engineering 1,832 1,445 7,377 4,713
Selling and service 1,325 1,891 5,925 6,666
General and administrative 2,275 1,467 8,299 5,244
Total operating expense 5,432 4,803 21,601 16,623
Operating income 3,014 2,599 12,316 9,805
Other (income) expense
Interest expense 257 215 1,023 1,340
Loss on debt extinguishment -- -- -- 485
Other (income) expense, net 1,010 1,079 448 1,146
Total other (income) expense 1,267 1,294 1,471 2,971
Income before income taxes 1,747 1,305 10,845 6,834
Income tax provision 1,002 720 4,143 2,773
Net income $ 745 $ 585 $ 6,702 $ 4,061
Undistributed earnings $ 745 $ 585 $ 6,702 $ 4,061
Undistributed earnings allocable to Series A convertible preferred shares $ -- $ -- $ -- $ 2,513
Undistributed earnings allocable to common shares $ 745 $ 585 $ 6,702 $ 1,548
Weighted-average common shares outstanding
Basic 9,078,287 9,335,491 9,068,846 3,512,534
Diluted 9,078,287 9,335,491 9,068,846 3,512,534
Undistributed earnings per common share
Basic $ 0.08 $ 0.06 $ 0.74 $ 0.44
Diluted $ 0.08 $ 0.06 $ 0.74 $ 0.44
Power Solutions International, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(Dollar amounts in thousands)
Twelve months
ended
December 31,
2012 Twelve months
ended
December 31,
2011
Cash flows from operating activities
Net income $ 6,702 $ 4,061
Adjustments to reconcile net income to net cash used in operating activities
Depreciation and amortization 1,105 820
Deferred income taxes (716) (870)
Equity based compensation expense 478 --
Increase (decrease) in accounts receivable allowances -- (249)
Increase in valuation of private placement warrants 448 382
Loss on disposal of assets 111 6
Loss on debt extinguishment -- 485
(Increase) decrease in operating assets
Accounts receivable (7,957) (12,992)
Inventories (6,575) (1,225)
Prepaid and other current assets (619) (410)
Other noncurrent assets 84 173
Increase (decrease) in operating liabilities
Accounts payable 2,473 7,365
Accrued liabilities 924 1,609
Income taxes payable 510 (55)
Other noncurrent liabilities 91 (73)
Net cash used in operating activities (2,941) (973)
Cash flows from investing activities
Purchases of property, plant, equipment and other assets (3,890) (1,557)
Increase in cash surrender value of life insurance (8) (13)
Net cash used in investing activities (3,898) (1,570)
Cash flows from financing activities
Increase (decrease) in cash overdraft (3,780) 3,251
Increase (decrease) in revolving line of credit 11,276 (20,305)
Initial proceeds from borrowings under prior line of credit -- 18,338
Proceeds from issuance of preferred stock with warrants -- 18,000
Proceeds from exercise of private placement warrants 178 --
Proceeds from long-term debt -- 43
Payments on long-term debt and capital lease obligations (64) (7,880)
Repurchase of common stock -- (4,250)
Cash paid for transaction and financing fees (228) (4,654)
Net cash provided by financing activities 7,382 2,543
Increase in cash 543 --
Cash at beginning of the year -- --
Cash at end of the year $ 543 $ --
Supplemental disclosures of cash flow information
Cash paid for interest $ 912 $ 1,163
Cash paid for income taxes $ 4,353 $ 3,695
Quantum to Unveil Natural Gas Engine Fuel System on a Power Solutions International 8.8-Liter CNG Engine at National Truck Equipment Association (NTEA) Show March 5th in Indianapolis
LAKE FOREST, Calif., Feb. 28, 2013 /PRNewswire/ -- Quantum Fuel Systems Technologies Worldwide, Inc. (NASDAQ: QTWW), a global leader in natural gas storage systems, integration and vehicle system technologies, today announced that it will showcase a new Power Solutions International (PSI) 8.8-Liter natural gas engine with Quantum's compressed natural gas (CNG) fuel system at the 2013 NTEA Work Truck Show on March 5th in Indianapolis.
(Photo: http://photos.prnewswire.com/prnh/20130228/LA68270)
The PSI 8.8-Liter CNG engine will come in naturally aspirated and turbocharged variants. The naturally aspirated version will be rated at 250 hp and 500 lb-ft of torque and the turbocharged version at 350 hp and 660 lb-ft of torque. These engine models are specifically matched to the performance required for Class 4-6 trucks where there are very limited options available today. PSI is one of the largest industrial and alternative fuel engine providers in North America with decades of experience in optimizing engines and has supplied in excess of 2 million cost-effective engines for a variety of applications including mobility and power generation.
Quantum is designing, developing, and validating an OEM level CNG fuel supply system to maximize the efficiency and durability of the CNG components. The system is based on the over 20,000 alternative fuel systems that Quantum has supplied to a variety of automotive manufacturers, including General Motors for cars, vans, light-duty and medium-duty trucks over the last two decades. Quantum intends to supply select components to PSI to support volume production of the 8.8-Liter engine.
Packaging the new PSI 8.8-Liter natural gas engine with Quantum's industry-leading Q-Lite™ ultra-lightweight carbon composite natural gas storage systems will enable the companies to provide complete, pre-qualified and fully-integrated CNG drive systems to medium-duty truck manufacturers.
"Medium-duty truck manufacturers haven't had an option for CNG engines in the larger Class 4-6 truck applications," said Gary Winemaster, CEO of Power Solutions International. "Truck OEMs have asked for an engine with the performance of our 8.8-Liter CNG engine and we'll be delivering later this year."
"Quantum is proud to be supporting PSI in the new 8.8-Liter natural gas engine development," said Brian Olson, President and CEO of Quantum. "We are pleased to leverage our experience in developing natural gas fuel systems and performing Tier-1 level system integration, validation and volume production of systems."
About Quantum:
Quantum Fuel Systems Technologies Worldwide, Inc. is a leader in the development and production of natural gas fuel storage and system technologies, alternative fuel vehicles, and advanced vehicle propulsion systems. Quantum's portfolio of technologies includes natural gas and hydrogen storage and metering systems, electronic and software controls, hybrid electric drive systems, and other alternative fuel technologies and solutions that enable fuel efficient, low emission natural gas and hybrid, plug-in hybrid electric and fuel cell vehicles. Quantum's powertrain engineering, system integration, vehicle manufacturing, and assembly capabilities provide fast-to-market solutions to support the production of natural gas, plug-in hybrid, hydrogen-powered hybrid, fuel cell, and specialty vehicles, as well as modular, transportable hydrogen refueling stations.
Quantum's customer base includes automotive OEMs, fleets, aerospace industry, military and other governmental agencies, and other strategic alliance partners. Quantum's wholly owned subsidiary, Schneider Power Inc., and affiliate, Asola Solarpower GmbH, complement Quantum's alternative and renewable energy presence through the development and ownership of wind and solar farms, and the manufacture of high efficiency solar modules for traditional and automotive applications.
Quantum is headquartered in Lake Forest, California, and has operations and affiliations in the USA, Canada, Germany and India.
About Power Solutions International:
Power Solutions International, Inc. (OTCBB: PSIX) is a leader in the design, engineering and manufacture of emission-certified, alternative-fuel power systems. PSI provides integrated turnkey solutions to global original equipment manufacturers in the industrial off- and on-road markets. The company's in-house design, prototyping, engineering and testing capacities allows PSI to customize clean, high-performance engines that run on a wide variety of fuels including natural gas, propane, biogas and gasoline.
PSI develops and delivers complete power systems with engines ranging from .97-Liter to 22-Liters of displacement, including the new 8.8-Liter engine aimed at the industrial and on-highway markets including medium duty fleets, delivery trucks, school buses and garbage/refuse trucks. PSI power systems are currently used worldwide in power generators, forklifts, aerial lifts, and industrial sweepers, as well as in oil and gas, aircraft ground support, agricultural, and construction equipment.
Forward Looking Statements:
This press release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements included in this report, other than those that are historical, are forward-looking statements and can generally be identified by words such as "may," "could," "will," "should," "assume," "expect," "anticipate," "plan," "intend," "believe," "predict," "estimate," "forecast," "outlook," "potential," or "continue," or the negative of these terms, and other comparable terminology. Various risks and other factors could cause actual results, and actual events that occur, to differ materially from those contemplated by the forward looking statements. The risk factors include the ability of Quantum to successfully develop the natural gas engine system and secure supply contract for production systems. The Company undertakes no obligation to update the information in this press release to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated or unanticipated events.
More information can be found about the products and services of Quantum at http://www.qtww.com/ or you may contact:
Brion D. Tanous
Principal, CleanTech IR, Inc.
Email: btanous@cleantech-ir.com
310-541-6824
PSI Announces Launch of Retooled Website
WOOD DALE, Ill., Feb. 19, 2013 (GLOBE NEWSWIRE) -- Clean technology engine supplier Power Solutions International, Inc. ("PSI") (PSIX) announced today the launch of its newly redesigned website. The site -- located at http://www.psiengines.com -- was created to provide customers and shareholders with more convenient access to details about the company and its expanded products and service offerings.
"We know visitors will be very pleased with the redesign," said Jeremy Lessaris, Director of Marketing for PSI. "Our newly designed site is a reflection of our true capabilities, highlighting our commitment to delivering world-class products to our customers and focus on future innovations."
The retooled website features streamlined navigation and a visual index of PSI's engine products, together with detailed information on the services the company offers. It also boasts dedicated sections for investors and career-related visitors, and an updated user interface for its web-based warranty system. The site also features a page-translation tool for international visitors. Companies looking to connect with PSI at an industry or financial event can find this information in the "News & Events" section of the site.
For more information on PSI, visit http://www.psiengines.com.
About Power Solutions International, Inc.
Power Solutions International, Inc. (PSI) is a leader in the design, engineering and manufacture of emission-certified, alternative-fuel power systems. PSI provides integrated turnkey solutions to global original equipment manufacturers in the industrial off- and on-road markets. The company's in-house design, prototyping, engineering and testing capacities allows PSI to customize clean, high-performance engines that run on a wide variety of fuels including natural gas, propane, biogas and gasoline.
PSI develops and delivers complete power systems with engines ranging from .97-Liter to 22-Liters of displacement, including the new 8.8-Liter engine aimed at the industrial and on-highway markets including medium duty fleets, delivery trucks, school buses and garbage/refuse trucks. PSI power systems are currently used worldwide in power generators, forklifts, aerial lifts, and industrial sweepers, as well as in oil and gas, aircraft ground support, agricultural, and construction equipment.
Contact:
Jeremy Lessaris
Director of Marketing
Power Solutions International, Inc.
Mobile: 1.630.350.9400
E-mail: jlessaris@psiengines.com
Power Solutions International to Report Fourth Quarter and Full Year 2012 Financial Results on Thursday, February 28th
Conference Call to Follow at 4:30 p.m. EST
WOOD DALE, Ill., Feb. 14, 2013 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. (PSIX) announced today that it will release financial results for the fourth quarter and full year 2012 after the market closes on Thursday, February 28th. An investor conference call will follow at 4:30 p.m. EST/3:30 p.m. CST. Gary Winemaster, Chief Executive Officer, Eric Cohen, Chief Operating Officer, and Daniel Gorey, Chief Financial Officer, will host the call.
Investors in the U.S. interested in participating in the live call should dial +1 (888) 428-9470. Those calling from outside the U.S. should dial +1 (719) 325-2396. Passcode 6349786 should be entered for both. A telephone replay will be available approximately two hours after the call concludes through March 14, 2013 by dialing from the U.S. +1 (877) 870-5176, or from international locations +1 (858) 384-5517, also entering passcode 6349786.
A simultaneous live webcast will be available on the Investor Relations section of the Company's website at http://www.psiengines.com. The webcast will be archived on the website for one year.
About Power Solutions International, Inc.
Power Solutions International, Inc. (PSI) is a leader in the design, engineering and manufacture of emissions-certified, alternative-fuel power systems. PSI provides integrated turnkey solutions to leading global original equipment manufacturers in the industrial, off-and on-road markets. The company's unique in-house design, prototyping, engineering and testing capacities allows PSI to customize clean, high-performance engines that run on a wide variety of fuels including natural gas, propane, biogas, diesel, gasoline, or hybrid systems.
PSI develops and delivers complete .97 to 22 liter power systems, including the new 8.8 liter engine aimed at the industrial and on-highway markets including; medium duty fleets, delivery trucks, school buses and garbage/refuse trucks. PSI power systems are currently used worldwide in power generators, forklifts, aerial lifts, and industrial sweepers, as well as in oil and gas, aircraft ground support, agricultural and construction equipment.
Contact:
Investor Relations:
ICR, LLC
Gary Dvorchak, CFA
Senior Vice President
+1 (310) 954-1123
gary.dvorchak@icrinc.com
Company:
Power Solutions International, Inc.
Daniel P. Gorey
Chief Financial Officer
+1 (630) 451-2290
dan.gorey@psiengines.com
PSI Earns EPA & CARB Certification on 2.0-Liter & 2.4-Liter Engines
WOOD DALE, Ill., Jan. 22, 2013 (GLOBE NEWSWIRE) -- Cleantech engine supplier Power Solutions International, Inc. ("PSI") (PSIX) earned US Environmental Protection Agency (EPA) and California Air Resources Board (CARB) certification for two of its spark-ignited industrial engines, the 2.0-Liter and 2.4-Liter. Both engines meet the CARB/EPA standards for off-road, large spark-ignited (LSI) engines for mobile applications running on propane and natural gas.
The newly certified engines enable mobile industrial equipment OEMs to produce low emission products that meet increasingly stringent CARB/EPA regulations. The certified models will in turn help end-users reduce their impact on the environment, provide cleaner working environments for employees, and meet sustainability goals.
As the Manufacturer of Record, PSI takes all emission certification responsibility for the engines, as well as for engineering and applications support. The engines utilize controls, diagnostic and service platforms common to PSI's entire product line.
"PSI is committed to producing engines that meet our customers' highest performance demands, while also protecting the environment," said Gary Winemaster, CEO of PSI. "Our goal was to provide a cost-effective four cylinder on a robust automotive platform, ruggedized for industrial applications with a long term product plan. What we have produced is a high-tech, four cylinder 2.0-Liter and 2.4-Liter engine with cast iron blocks, industrial leading valve insert technology and product plan that leads into the 2020's. These certified engines will support industrial OEMs in the process of compliance and help their customers meet and exceed emission regulations for the future."
PSI developed the 2.0-Liter and 2.4-Liter engines as low-emission forklift engines filling a much needed gap in the industry. These new displacements operate at lower speeds for better fuel efficiency.
Starting with a proven base engine, PSI has upgraded select components to further improve the durability of the valvetrain. Premium valve seat inserts extend the valvetrain life to well beyond 10,000 hours when operating on gaseous fuels, while the premium camshaft and balance shaft belts extend the service interval to 5,000 hours on these components. The company has leveraged advanced fuel systems and controls to further enhance the engines' overall operation and durability. State of the art fuel controls enable seamless operation on gaseous fuels or gasoline while minimizing emission levels. The 58X crank / 1X cam position sensing for the ignition system optimizes engine performance and startability, while the inlet side thermostat enables faster warm-up and reduced thermal cycling after a cold start. Both 2.0-Liter and 2.4-Liter engines incorporate a balance shaft and structural bearing ladder for reduced noise and vibration compared to the predecessor engines.
With the certified 2.0-Liter and 2.4-Liter engines, PSI expands its product line of mobile industrial equipment power systems. The company adds these new certifications to a long list of CARB/EPA certified engines.
About PSI
Power Solutions International, Inc. (PSI) is a leader in the design, engineering and manufacture of emissions-certified, alternative-fuel power systems. PSI provides integrated turnkey solutions to leading global original equipment manufacturers in the industrial, off- and on-road markets. The company's unique in-house design, prototyping, engineering and testing capacities allows PSI to customize clean, high-performance engines that run on a wide variety of fuels including natural gas, propane, biogas, diesel, gasoline, or hybrid systems.
PSI develops and delivers complete .97 to 22 liter power systems, including the new 8.8 liter engine aimed at the industrial and on-highway markets including; medium duty fleets, delivery trucks, school buses and garbage/refuse trucks. PSI power systems are currently used worldwide in power generators, forklifts, aerial lifts, and industrial sweepers, as well as in oil and gas, aircraft ground support, agricultural and construction equipment.
Contact:
Jeremy Lessaris
Director of Marketing
Power Solutions International, Inc.
Mobile: 1.630.350.9400
E-mail: media@psiengines.com
Vista Partners Initiates Coverage on Power Solutions, Inc.; $26.00 Target Price
SAN FRANCISCO, CA--(Marketwire - Jan 15, 2013) - Vista Partners announced today that it has initiated coverage on Power Solutions Inc. ( OTCBB : PSIX ) ("The Company," or "PSIX"); with a twelve month target price of $26.00. Ross Silver, Principal Analyst at Vista Partners, stated, "The robust secular trend to alternative-fuel power systems in industrial markets, along with PSIX's comprehensive product line, positions them well for future growth. Management recently reaffirmed 2012 sales guidance of $190-210 million, a 23-35% increase year over year." Mr. Silver concludes, "The average low prices for natural gas and other alternative fuels and the increased standards by the EPA may drive industrial power systems sales for PSI in 2013-2015."
To download a FREE copy of the Power Solutions Inc. research report, please visit http://www.vistapglobal.com and click the "download research" icon to gain access to the report.
About Vista Partners:
Vista Partners LLC, founded in 2005, is a Registered Investment Advisor in the States of California and Oregon. The firm's professional staff has backgrounds in finance, corporate communications and investment banking.
Please follow us on Twitter @VistaPResearch & Facebook at Vista-Partners to receive updates, thoughts and ideas about our coverage universe of companies.
Disclaimer & Disclosure:
For a full list of disclaimers and disclosures, please visit our website www.vistapglobal.com or click here.
Contact:
Vista Partners LLC
877.215.4813
Email Contact
PSI and MAT to Bring Cleantech Engine Production to Asia
WOOD DALE, Ill., Dec. 17, 2012 (GLOBE NEWSWIRE) -- Cleantech engine supplier Power Solutions International, Inc. ("PSI") (PSIX) announced today a China-based joint venture with global manufacturer MAT Holdings, Inc. ("MAT"). The partnership will allow the companies to support PSI's existing customers in Asia and better serve that region's growing market for natural gas-, propane-, and gasoline-fueled engines.
The joint venture will draw on relationships that both companies have already established in the region. PSI sells a large number of engines to customers based in Asia, and the MAT family of companies manufactures in multiple worldwide locations including China, Vietnam, and India. The joint venture will utilize MAT's extensive network of Asian vendors and contacts to establish a Chinese business based on PSI's innovative cleantech engine line up.
PSI currently supplies engines to Chinese forklift manufacturers and other material-handling equipment manufacturers from its US base of operations. According to Eric Cohen, PSI's Chief Operating Officer, PSI's customers collectively comprise more than 50% of China's forklift market, having collected combined revenue of over $1.3 billion in 20111. China accounts for over 70% of the Asian forklift market and is reported to be the largest forklift market in the world with sales exceeding 300,000 units per year2.
"PSI's existing and prospective customers have requested that we establish operations in China," Mr. Cohen said. "Our customers see a wave of demand building in China for PSI's state-of-the-art clean-fuel engines. Our JV partnership with MAT, utilizing MAT's extensive operational capabilities in China, will allow us to set up and grow rapidly in China."
PSI's leadership believes that the company's emphasis on leading-edge technologies and investments in personnel will give the joint venture a significant advantage over competing Asian businesses. Along with its existing product line, PSI will contribute engineering resources, customer service tools, and key financing to the endeavor.
MAT and its subsidiaries utilize global manufacturing and logistics to supply high-quality products in three main areas, including automotive hard parts, power equipment, and hardware.
The joint venture will begin by supplying 2.0 liter and 2.4 liter engines to PSI's material-handling customers based in China. The ultimate plan for the new company is to supply throughout Asia alternative-fuel engines and power systems suited to a wide variety of applications.
Current trends in the Asia market -- especially in China -- may favor business projects involving alternative fuels. According to the International Energy Agency's June 2012 report3, China should more than double its natural gas consumption over the next five years. In addition, the country's most recent Five-Year Plan calls for a 17% reduction in carbon emissions by 20154.
About PSI
Power Solutions International (PSI) is a leading global provider of cleantech power solutions. The company designs, engineers, and manufactures engine assemblies for the industrial and on-road sectors and offers fuel-flexible, low-emission engines ranging from .97 liters to 22 liters of displacement. PSI's power systems are used worldwide in trucks and buses, power generators, forklifts, aerial lifts, and industrial sweepers, as well as in equipment used for oil and gas extraction, aircraft ground support, agriculture, and construction. More information is available online at www.powersint.com.
About MAT Holdings
MAT Holdings, Inc. is a privately held company, founded in 1984, that has quickly grown as a respected global manufacturer, distributor and marketer of products in the automotive, fencing and hardware, and power equipment sectors. Headquartered in Long Grove, Illinois it has operations on three continents, including 2.1 million square feet of U.S. distribution and manufacturing space, and provides its customers with a full range of services including U.S. and overseas engineering, quality assurance, logistical and distribution support, strategic warehousing, bi-lingual sourcing, product development and marketing. For more information regarding MAT Holdings, Inc. and its family of companies go to www.mat-holdings.com.
1 Based on internal data together with data from the World Industrial Truck Statistics (WITS) organization.
2 Per the Research In China 2012 "Global and China Forklift Industry Report." Available at http://www.reportlinker.com/p0332464-summary/Global-and-China-Forklift-Industry-Report.html.
3 "Medium-Term Gas Market Report 2012," released at the World Gas Conference 2012. See www.iea.org.
4 As reported in the US-China Economic and Security Review Commission publication,"Backgrounder: China's 12th Five-Year Plan." See http://www.uscc.gov/researchpapers/2011/12th-FiveYearPlan_062811.pdf.
Contact:
For more information about this release, please contact:
Jeremy Lessaris
Director of Marketing
Power Solutions International
201 Mittel Dr.
Wood Dale, IL 60191
www.psiengines.com
Phone: +1 (630) 350-9400
E-mail: jlessaris@psiengines.com
Bob Craig
Media Contact
MAT Holdings
Phone: +1 (847) 383-8595
Photo Release -- PSI Presents New Engine Lineup at POWER-GEN
ORLANDO, Fla., Dec. 12, 2012 (GLOBE NEWSWIRE) -- Cleantech engine supplier Power Solutions International, Inc. ("PSI") (PSIX) is showcasing its expanded engine lineup at the 2012 POWER-GEN International Trade Show, December 11--13 in Orlando. The company is presenting power systems from .97-liter to 21.9-liter, including three engines that can now achieve industry-first power outputs: the .97-liter turbo, the 5.7-liter turbo charge air-cooled, and the 8.8-liter, available in four new options.
Photos accompanying this release are available at
http://www.globenewswire.com/newsroom/prs/?pkgid=16229
http://www.globenewswire.com/newsroom/prs/?pkgid=16230
"These engines are just what industrial OEMs are looking for--compact, cost-effective power solutions," said Eric Cohen, Chief Operating Officer of PSI. "Our new systems provide greater outputs in smaller packages at a lower cost per kilowatt."
PSI is displaying four industrial engines--the .97-liter, 3.0-liter, 5.7-liter and 8.8-liter--as well as four engines from the PSI Heavy-Duty line: the 11.1-liter, 14.6-liter, 18.3-liter and 21.9-liter. The new .97-liter, 5.7-liter and 8.8-liter engines are notable for providing unprecedented power for their respective displacements.
The all-new .97-liter turbo is a 4-cylinder, electronic fuel-injected gas engine that produces nearly 25% more power and torque than the naturally aspirated version reaching 25 kWe. PSI introduced the .97-liter turbo at the 2012 Golf Industry Show powering John Deere's Gator Utility Vehicles. The new emission certified stationary model featured at POWER-GEN provides diesel-level power, performance, durability, and reduced noise, vibration and harshness through features including a closed-loop port-injected EFI, a cross-flow cylinder head to optimize fuel combustion, high silicon content pistons, sintered powder-metal exhaust, valve seat inserts and a poly V-belt harmonic balancer.
The all-new 5.7-liter turbo/gearbox/charge air-cooled engine is capable of producing 130 kWe of power. The system offers OEMs a durable, cost-effective alternative to the Ford 6.8-liter engine.
PSI's big block 8.8-liter engine, first introduced in 2011, is now available in four new options capable of producing 100--180 kWe: naturally aspirated, turbo-charged, and two charge air-cooled versions. The newly designed and engineered engine offers 20% across-the-board improvements in power and 15% better fuel-efficiency than its predecessor, the General Motors 8.1L.
The PSI Heavy-Duty line features heavy-duty engines with expanded outputs spanning from 80 kWe to 430 kWe. The fuel-flexible Heavy-Duty engines range includes 8.1-liter to 21.9-liter blocks designed to deliver performance and reliability for demanding applications.
PSI is showing its expanded engine lineup in booth number 2006 at the 2012 POWER-GEN International Trade Show, taking place December 11--13 at the Orange County Convention Center in Orlando, FL.
About PSI
Power Solutions International (PSI) is a leading global provider of cleantech power solutions. The company designs and manufactures engine assemblies for the industrial and on-road sectors and offers fuel-flexible, low-emission engines ranging from .97 liters to 22 liters of displacement. PSI's power systems are used worldwide in trucks and buses, power generators, forklifts, aerial lifts, and industrial sweepers, as well as in equipment used for oil and gas extraction, aircraft ground support, agriculture, and construction.
The photos are also available via AP PhotoExpress.
Contact:
Jeremy Lessaris
Director of Marketing
Power Solutions International
Mobile: 1.847.366.4300
E-mail: jlessaris@psiengines.com
Power Solutions initiated yesterday with a Buy at Craig-Hallum
Target $26.
http://www.theflyonthewall.com/permalinks/entry.php/PSIXid1748039/PSIX-Power-Solutions-initiated-yesterday-with-a-Buy-at-CraigHallum
We have an answer.
A PSIX PR is out now and it explains that the gas engine is theirs! The prior PR was from SPAR so it didn't explain the details.
http://finance.yahoo.com/news/photo-release-psi-spartan-chassis-173021747.html
This PR is interesting. Does this mean that the new 8.8L engine is capable of running on both natural gas and gasoline?
Spartan Chassis Presents New Extol Concept Gas Chassis at RVIA Tradeshow
Chassis Includes New High Output/Performance 8.8 Liter Engine
LOUISVILLE, Ky., Nov. 27, 2012 (GLOBE NEWSWIRE) -- Spartan Chassis, a subsidiary of Spartan Motors, Inc. (SPAR), today presented a new Class A Front Engine Gasoline (FEG) concept chassis to capitalize on the growth of smaller Class A recreational vehicles (22K to 28K GVWR) and the increasing demand for gasoline powered engines in the motorized segment. Code named the Extol, this chassis presented at the RVIA National RV Trade Show in Louisville, KY offers significant powertrain and chassis performance improvements which will enable RV OEMs and their dealers to capture additional sales.
Powered by an 8.8 Liter engine that offers 430 HP and 512 lb.-ft. of torque (@3400 RPM) the engine offers a sizable performance improvement over current offerings in the market today. Branded Spartan and developed in cooperation with Power Solutions International, Inc. ("PSI") (PSIX) a leader in the design, engineering and manufacture of engines for industrial and off/on-road markets, the engine is right-sized to the Class A growth opportunity and offers the performance end-users seek for an improved driving and ownership experience.
"Spartan Chassis has been known for decades as a leader in the Class A diesel market. This Extol concept chassis is an excellent brand extension which should expand our product portfolio and fill what we perceive as a gap in the RV chassis market," said Tom Gorman, Chief Operating Officer, Spartan Motors. "This new chassis development illustrates both our long-term commitment to the RV business and, more importantly, our interest to continually find new business growth opportunities for our OEM partners in the RV industry."
The Extol value proposition includes multiple dimensions including:
Chassis performance: a superior ride quality achieved through use of Spartan's proprietary suspension and the new Compression Fluid Strut
Superior handling: achieved by tuning the chassis to the size, weight distribution, and profile of the RV OEM's body
Engine performance: the 8.8-liter gasoline engine provides a durable, high-performance big block engine which delivers a 20% improvement in power and 15% better fuel-efficiency than previous models
Engine durability: the heavy-duty, durable design includes a significantly stronger crankcase and a forged and induction hardened crankshaft, creating a block that can deliver 1,000 ft-lb of torque
"All of us at PSI are excited about the launch of our newly developed on-highway market applications with Spartan Chassis, a leader in the specialty vehicle category," said Jeremy Lessaris, Director of Marketing at PSI.
Spartan has always led the industry with after the sale support:
Customer support: superior after the sale service provided by over 585 authorized Spartan service providers
Customer service: the best Roadside Assistance program provided in partnership with Good Sam and their network of over 40,000 mobile service providers
The Spartan Chassis display at the Kentucky Expo Center is located in booth #1526. The PSI display is located in booth #248.
About Spartan Chassis, Inc.
Spartan Chassis, Inc. is a world-class leader in the engineering, manufacturing and marketing of chassis and aftermarket parts for emergency-response, recreational vehicle (RV), defense and specialty vehicles. End users recognize and request the Spartan Chassis brand, which consistently delivers superior performance, exceptional safety ratings and innovations which distinguish us from the competition. Visit Spartan Chassis at spartanchassis.com.
About Spartan Motors
Spartan Motors, Inc. designs, engineers and manufactures specialty chassis, specialty vehicles, truck bodies and aftermarket parts for the recreational vehicle, emergency response, government services, defense, and delivery and service markets. The company's brand names - Spartan(TM), Spartan ERV(TM) and Utilimaster(R) - are known for quality, performance, service and first-to-market innovation. The company employs approximately 1,700 associates at facilities in Michigan, Pennsylvania, South Dakota, Indiana, Florida and Texas. Spartan reported sales of $426 million in 2011 and is focused on becoming a global leader in the design, engineering and manufacture of specialty vehicles and chassis. Visit Spartan Motors at www.spartanmotors.com.
About PSI
Power Solutions International, Inc. (PSI) is a leader in the design, engineering and manufacture of emissions-certified alternative-fuel and conventional power systems. PSI provides integrated turnkey solutions to leading global original equipment manufacturers in the industrial, off- and on-road markets. Our unique in-house design, prototyping, engineering and testing capacities mean we can customize clean, high-performance engines that run on a wide variety of fuels including natural gas, propane, biogas, diesel, gasoline, or hybrid systems and meet applicable environmental standards. We develop and deliver complete .97 to 22-liter power systems to meet our customers' specific applications and power needs, as well as provide service parts and support. PSI power systems are used worldwide in power generators, forklifts, aerial lifts, and industrial sweepers, as well as in oil and gas, aircraft ground support, agricultural and construction equipment. Visit PSI at http://psiengines.com/
This release contains several forward-looking statements that are not historical facts, including statements concerning our business, strategic position, financial strength, future plans, objectives, and the performance of our products. These statements can be identified by words such as "believe," "expect," "intend," "potential," "future," "may," "will," "should," and similar expressions regarding future expectations. These forward-looking statements involve various known and unknown risks, uncertainties, and assumptions that are difficult to predict with regard to timing, extent, and likelihood. Therefore, actual performance and results may materially differ from what may be expressed or forecasted in such forward-looking statements. Factors that could contribute to these differences include operational and other complications that may arise affecting the implementation of our plans and business objectives; continued pressures caused by economic conditions and the pace and extent of the economic recovery; challenges that may arise in connection with the integration of new businesses or assets we acquire or the disposition of assets; issues unique to government contracting, such as competitive bidding processes, qualification requirements, and delays or changes in funding; disruptions within our dealer network; changes in our relationships with major customers, suppliers, or other business partners, including Isuzu; changes in the demand or supply of products within our markets or raw materials needed to manufacture those products; and changes in laws and regulations affecting our business. Other factors that could affect outcomes are set forth in our Annual Report on Form 10-K and other filings we make with the Securities and Exchange Commission (SEC), which are available at www.sec.gov or our website. All forward-looking statements in this release are qualified by this paragraph. Investors should not place undue reliance on forward-looking statements as a prediction of actual results. We undertake no obligation to publicly update or revise any forward-looking statements in this release, whether as a result of new information, future events, or otherwise.
Contact:
Russell T. Chick
Corporate Director of Marketing
Spartan Motors, Inc.
517.997.3852 or Russell.chick@spartanmotors.com
Jeremy Lessaris, Director of Marketing
Power Solutions International, Inc.
jlessaris@psiengines.com
Natural gas drillers target US truck, bus market
http://news.yahoo.com/natural-gas-drillers-target-us-truck-bus-market-182633169--finance.html
Those are solid results. They beat by $0.01.
Power Solutions International, Inc. Reports Third Quarter 2012 Results
Net Sales Up 21% Year Over Year, 3% Sequentially
Net Income of $1.8 Million or $0.20 Per Diluted Common Share
WOOD DALE, Ill., Nov. 12, 2012 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. (PSIX), a leader in the design, engineering and manufacture of emissions-certified alternative-fuel and conventional power systems, today announced its financial results for the third quarter and nine months ended September 30, 2012. Net sales for the quarter were up 21% year over year and 3% sequentially. Both net income and adjusted net income were $1.8 million or $0.20 per diluted common share.
"Our company reported strong results this quarter while also preparing for substantial future growth," stated Gary Winemaster, Chief Executive Officer of Power Solutions. "During the quarter we relocated to expanded manufacturing facilities that should be able to support our growth to $500 million or more in annual sales. During that move, we sustained production, avoided unplanned costs, and recorded a new high in quarterly revenue. The robust secular trend to alternative-fuel power systems in industrial markets, along with our comprehensive product line, positions us well for future growth."
Third Quarter 2012 Financial Results
Net sales for the third quarter of 2012 were $51.7 million, an increase of 21% from the third quarter of 2011. Net sales increased 3% from the second quarter of 2012. Sales in the quarter were driven in part by growth in the Company's large power systems.
Gross profit for the third quarter of 2012 was $8.4 million, resulting in a gross margin of 16.3%. Gross margin improved when compared to the third quarter 2011 gross margin of 15.3%, due to higher sales volumes, better mix, and improved efficiency in the supply chain for the Company's material handling products.
Operating expense increased to 10.7% of sales in the third quarter, compared to 9.9% of sales in the third quarter of 2011. The increase was driven by larger investments in research and development, as well as greater general and administrative expenses associated with becoming a publicly traded company.
Operating expense in the third quarter of 2012 also includes costs of $303,000 ($182,000 after tax or $0.02 per diluted common share) incurred in connection with the relocation of the Company's production, warehousing and administrative offices into new facilities. These leased facilities enabled the Company to consolidate its production and warehousing into two principal facilities, as well as establish a separate facility exclusively for its research, development and engineering activities.
Operating income of $2.9 million increased 23% from the third quarter of 2011. Operating margin of 5.6% was slightly higher than the 5.5% recorded in the year-earlier period.
Other (income) expense for the third quarter includes a non-cash gain of $199,000 (or $0.02 per diluted common share) resulting from the decrease in the estimated fair value of the liability associated with the warrants issued in the Company's April 2011 private placement.
Net income for the third quarter of 2012, which includes the warrant revaluation adjustment and facility relocation costs, was $1.8 million, or $0.20 per diluted common share. This compares to net income of $1.9 million or $0.19 per diluted common share for the third quarter of 2011, which also includes a warrant revaluation adjustment. Net income for the third quarter of 2012 adjusted to remove the warrant revaluation impact and facility relocation costs was also $1.8 million, or $0.20 per diluted common share. This compares to adjusted net income for the third quarter of 2011 of $1.3 million, or $0.13 per diluted common share.
Summary of Diluted EPS Attributable to Common Stockholders
"Adjusted" removes all impact of warrant revaluation and facility relocation costs
Q3 2012 Q2 2012 Q3 2011 Seq. Growth Y/Y Growth
EPS $0.20 $0.33 $0.19 (39%) 5%
Adjusted EPS $0.20 $0.21 $0.13 (5%) 54%
Comparisons of per share results for the third quarter 2012 compared to the third quarter 2011 are impacted by the simplified capital structure under which the Company is now operating. As previously reported, all of the Company's outstanding shares of preferred stock were converted into common stock as of August 26, 2011.
Third Quarter Earnings Results Conference Call
The Company will discuss its financial results and outlook in a conference call on November 12, 2012 at 3:30 PM CST. The call will be hosted by Gary Winemaster, Chief Executive Officer, and Daniel Gorey, Chief Financial Officer.
Investors in the U.S. interested in participating in the live call should dial +1 (888) 293-6952. Those calling from outside the U.S. should dial +1 (719) 325-2258. Passcode 2874780 should be entered for both. A telephone replay will be available approximately two hours after the call concludes through November 26, 2012. The replay can be accessed by dialing from the U.S. +1 (877) 870-5176, or from international locations +1 (858) 384-5517, and entering passcode: 2874780.
A simultaneous live webcast will be available on the Investor Relations section of the Company's website at http://www.powersint.com. The webcast will be archived on the website for one year.
About Power Solutions International, Inc.
Power Solutions International, Inc. (PSI) is a leader in the design, engineering and manufacture of emissions-certified, alternative-fuel power systems. PSI provides integrated turnkey solutions to leading global original equipment manufacturers in the industrial, off- and on-road markets. The company's unique in-house design, prototyping, engineering and testing capacities allows PSI to customize clean, high-performance engines that run on a wide variety of fuels including natural gas, propane, biogas, diesel, gasoline, or hybrid systems.
PSI develops and delivers complete .97 to 22 liter power systems, including the new 8.8 liter engine aimed at the industrial and on-highway markets including; medium duty fleets, delivery trucks, school buses and garbage/refuse trucks. PSI power systems are currently used worldwide in power generators, forklifts, aerial lifts, and industrial sweepers, as well as in oil and gas, aircraft ground support, agricultural and construction equipment.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding the current expectations of Power Solutions International, Inc. (the "Company") about its prospects and opportunities, including expectations for the Company's expanded manufacturing facilities. The Company has tried to identify these forward looking statements by using words such as "expect," "anticipate," "estimate," "plan," "will," "would," "should," "forecast," "believe," "guidance," "projection" or similar expressions, but these words are not the exclusive means for identifying such statements. The Company cautions that a number of risks, uncertainties and other important factors could cause the Company's actual results to differ materially from those expressed in, or implied by, the forward-looking statements, including, without limitation, the development of the market for alternative fuel power systems, technological and other risks relating to the Company's development of its new 8.8 liter engine, introduction of other new products and entry into on-road markets (including the risk that these initiatives may not be successful), the significant strain on our senior management team, support teams, manufacturing lines, information technology platforms and other resources resulting from rapid expansion of our operations, changes in environmental and regulatory policies, significant competition, general economic conditions and the Company's dependence on key suppliers. For a detailed discussion of factors that could affect the Company's future operating results, please see the Company's SEC filings, including the disclosures under "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in those filings. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason.
Non-GAAP Financial Measures and Reconciliations
As used herein, "GAAP" refers to generally accepted accounting principles in the United States. The Company uses certain numerical measures in this press release which are or may be considered "Non-GAAP financial measures" under Regulation G. The Company has provided below for your reference supplemental financial disclosure for these measures, including the most directly comparable GAAP measures and associated reconciliations.
Reconciliation of Net Income to Adjusted Net Income
(Dollar amounts in millions)
Three
months
ended
September
30, 2012 Three
months
ended
September
30, 2011
Net Income $1.8 $1.9
Non-cash expense from warrant revaluation (0.2) (0.6)
Facility relocation costs 0.2 0.0
Adjusted Net Income $1.8 $1.3
Reconciliation of Diluted EPS to Adjusted Diluted EPS
Three
months
ended
September
30, 2012 Three
months
ended
September
30, 2011
Diluted earnings per common share $0.20 $0.19
Non-cash expense from warrant revaluation (0.02) (0.06)
Facility relocation costs 0.02 0.00
Adjusted diluted earnings per common share $0.20 $0.13
Power Solutions International, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
(Dollar amounts in thousands, except per share amount)
September 30,
2012 December 31,
2011
ASSETS
Current assets
Cash $ 655 $ --
Accounts receivable, net 31,751 29,523
Inventories, net 44,551 33,393
Prepaid expenses and other current assets 1,023 1,291
Deferred income taxes 2,122 1,814
Total current assets 80,102 66,021
Property, plant, & equipment, net 6,413 3,611
Other noncurrent assets 1,978 1,451
Total assets $ 88,493 $ 71,083
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Income taxes payable $ 729 $ 564
Current maturities of long-term debt 23 23
Revolving line of credit -- 19,666
Accounts payable 28,867 27,574
Accrued liabilities 3,662 4,015
Total current liabilities 33,281 51,842
Revolving line of credit 29,713 --
Deferred income taxes 490 490
Private placement warrants 2,562 3,270
Long-term debt, net of current maturities 20 41
Other noncurrent liabilities 649 116
Total liabilities 66,715 55,759
Commitments and contingencies -- --
Stockholders' equity
Series A convertible preferred stock--$0.001 par value. Authorized: 114,000 shares. Issued and outstanding: -0- shares at September 30, 2012 and December 31, 2011. -- --
Common stock--$0.001 par value. Authorized: 50,000,000 shares. Issued: 9,909,212 and 9,895,462 shares at September 30, 2012 and December 31, 2011, respectively. Outstanding: 9,078,287 and 9,064,537 shares at September 30, 2012 and December 31, 2011, respectively. 10 10
Additional paid-in-capital 10,651 10,154
Retained earnings 15,367 9,410
Treasury stock, at cost, 830,925 shares at September 30, 2012 and December 31, 2011. (4,250) (4,250)
Total stockholders' equity 21,778 15,324
Total liabilities and stockholders' equity $ 88,493 $ 71,083
Power Solutions International, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(Dollar amounts in thousands, except per share amounts)
Three months
ended
September 30,
2012 Three months
ended
September 30,
2011 Nine months
ended
September 30,
2012 Nine months
ended
September 30,
2011
Net sales $ 51,703 $ 42,798 $ 149,890 $ 109,480
Cost of sales 43,293 36,236 124,419 90,454
Gross profit 8,410 6,562 25,471 19,026
Operating expenses
Research & development and engineering 2,010 1,260 5,545 3,268
Selling and service 1,315 1,608 4,600 4,775
General and administrative 2,212 1,351 6,024 3,777
Total operating expense 5,537 4,219 16,169 11,820
Operating income 2,873 2,343 9,302 7,206
Other (income) expense
Interest expense 249 195 766 1,125
Loss on debt extinguishment -- -- -- 485
Other (income) expense, net (199) (591) (562) 67
Total other (income) expense 50 (396) 204 1,677
Income before income taxes 2,823 2,739 9,098 5,529
Income tax provision 977 838 3,141 2,053
Net income $ 1,846 $ 1,901 $ 5,957 $ 3,476
Undistributed earnings $ 1,846 $ 1,901 $ 5,957 $ 3,476
Undistributed earnings allocable to Series A convertible preferred shares $ -- $ 1,115 $ -- $ 2,881
Undistributed earnings allocable to common shares $ 1,846 $ 786 $ 5,957 $ 595
Weighted-average common shares outstanding
Basic 9,068,024 4,072,968 9,065,699 1,571,549
Diluted 9,068,024 4,072,968 9,065,699 1,571,549
Undistributed earnings per common share
Basic $ 0.20 $ 0.19 $ 0.66 $ 0.38
Diluted $ 0.20 $ 0.19 $ 0.66 $ 0.38
Power Solutions International, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(Dollar amounts in thousands)
Nine months
ended
September 30,
2012 Nine months
ended
September 30,
2011
Cash flows from operating activities
Net income $ 5,957 $ 3,476
Adjustments to reconcile net income to net cash used in operating activities
Depreciation and amortization 748 604
Deferred income taxes (308) (128)
Equity-based compensation 267 --
Increase (decrease) in accounts receivable allowances 57 (43)
Decrease in valuation of private placement warrants (656) (690)
Loss on disposal of assets 95 --
Loss on debt extinguishment -- 485
(Increase) decrease in operating assets
Accounts receivable (2,285) (10,379)
Inventories (11,158) (407)
Prepaid and other current assets 268 (243)
Other noncurrent assets (359) 403
Increase (decrease) in operating liabilities
Accounts payable 4,878 4,376
Accrued liabilities (425) 415
Income taxes payable 165 (431)
Other noncurrent liabilities 113 --
Net cash used in operating activities (2,643) (2,562)
Cash flows from investing activities
Purchases of property, plant, equipment and other assets (2,900) (699)
Increase in cash surrender value of life insurance -- (12)
Net cash used in investing activities (2,900) (711)
Cash flows from financing activities
(Decrease) increase in cash overdraft (3,780) 1,661
Increase (decrease) in revolving line of credit 10,047 (22,791)
Initial proceeds from borrowings under prior line of credit -- 18,338
Proceeds from issuance of preferred stock with warrants -- 18,000
Proceeds from exercise of private placement warrants 178 --
Proceeds from long-term debt -- 43
Payments on long-term debt and capital lease obligations (21) (7,875)
Cash paid for transaction and financing fees (226) (4,103)
Net cash provided by financing activities 6,198 3,273
Net change in cash 655 --
Cash at beginning of period -- --
Cash at end of period $ 655 $ --
Supplemental disclosures of cash flow information
Cash paid for interest $ 666 $ 933
Cash paid for income taxes $ 3,290 $ 2,630
Here is a new article on PSIX. My article is referenced at the end.
http://otcadventures.com/?p=366
Photo Release -- PSI Showcases the New .97L Turbo Engine at 2012 GIE Expo
http://investor.powersint.com/releasedetail.cfm?ReleaseID=716456
I thought it was very good. I'm looking forward to the 10-Q.
What is your analysis of today's Q?
Here is an article I wrote on PSIX:
http://microcapclub.com/2012/06/opportunities-in-natural-gas-engines-part-2/#more-1186
TA put out a PR today about a MOU to create at least 200 natural gas fueling lanes on at least 100 TA locations. This is interesting news for the industry as it represents a significant increase to the roughly 1,100 existing natural gas fueling stations in the US. While this doesn't directly impact PSIX's main market, it may be of help to their on-road initiatives in the future. Also, it shows the significant progress that is happening in the natural gas engine space.
http://finance.yahoo.com/news/travelcenters-america-llc-enters-memorandum-123000864.html
PSIX was initiated with an Outperform by Barrington Research. They have a price target of $25.
The PSIX earnings estimate for 2012 was just increased from $0.76/share to $0.80/share and the 2013 earnings estimate was increased from $1.14/share to $1.15/share.
PSIX related news...
Government of British Columbia Announces $62 Million Incentive Program to Promote Adoption of Natural Gas Vehicles in the Province
~Program Expects to Incentivise Purchase of over 1,000 Heavy-Duty Natural Gas Trucks and Related Infrastructure~
VANCOUVER, May 15, 2012 /PRNewswire/ - The B.C. Ministry of Energy and Mines today announced the Greenhouse Gas Reduction regulation that advances the adoption and deployment of natural gas vehicles (NGVs) in BC. Westport Innovations believes this important program will benefit British Columbia's economy, environment and transportation options for industry. The regulation permits a utility to spend up to $62 million on vehicle and ferry incentives, up to $12 million on compressed natural gas (CNG) fuelling stations and up to $30.5 million on liquefied natural gas stations, for a total of $104.5 million.
"This is a positive step that will promote the use of domestic BC natural gas as a transportation fuel, and generate both environmental and economic benefits for our province and residents," said David Demers, CEO of Westport Innovations. "British Columbia is home to world-class companies that both generate and use natural gas transportation technology, and this program will allow the accelerated adoption of natural gas heavy-duty vehicles."
This regulation allows utility companies to deliver natural gas transportation programs until March 31, 2017, including the opportunity to:
Offer incentives to transportation fleets that would use natural gas such as buses, trucks or ferries
Build, own and operate compressed natural gas fuelling stations or liquefied natural gas fuelling stations
Upgrade facilities to provide training to safely maintain natural gas vehicles
The Greenhouse Gas Reduction regulation will promote the use of British Columbia's abundant natural gas resources as a transportation fuel in heavy-duty transport vehicles, such as trucks, transit buses, school buses, refuse trucks and marine vessels.
The program's objectives include displacing high carbon fuel, reducing greenhouse gas (GHG) emissions, and increasing natural gas fueling infrastructure. Natural gas vehicles are a proven technology used across the globe. Natural gas is 25 to 40 per cent cheaper than gasoline and diesel and produces up to 25 per cent fewer GHG emissions compared to a gasoline or diesel vehicle.
In addition, the Province is offering direct grants of up to $2,500 to purchasers of qualifying CNG vehicles. This is being offered through the $14.3 million Clean Energy Vehicle Program, announced in Nov. 2011.
BC has an abundant supply of low cost and low carbon natural gas. This program will allow local governments and businesses to take advantage of the benefits of natural gas, including lower fueling costs and reduced greenhouse gas emissions. The Province will require annual reporting on the programs being offered to review success and determine if any changes are required.
About Westport Innovations Inc.
Westport Innovations Inc. is a leading global supplier of proprietary solutions that allow engines to operate on clean-burning fuels such as compressed natural gas (CNG), liquefied natural gas (LNG), hydrogen, and renewable natural gas (RNG) fuels such as landfill gas and helps reduce greenhouse gas emissions (GHG). Westport technology offers advanced LNG fueling systems with direct injection natural gas engine technology for heavy-duty vehicles such as highway trucks and off-road applications such as mining and rail. Westport's joint venture with Cummins Inc., Cummins Westport Inc. designs, engineers and markets spark-ignited natural gas engines for North American transportation applications such as trucks and buses. Westport LD division is one of the global leaders for natural gas and liquefied petroleum gas (LPG) fuel in passenger cars, light-duty trucks and industrial applications such as forklifts. To learn more about our business, visit our website or subscribe to our RSS feed at www.westport.com, or follow us on Twitter @WestportDotCom.
Forward- looking Information Disclaimer
Note: This document contains forward-looking statements. Forward-looking information is typically identified by words such as "anticipate", "estimate", "expect", "forecast", "may", "will", "could", "plan", "intend", "should", "believe", "outlook", "project", "potential", "target" and similar words suggesting future events or future performance. In particular, this press release contains forward-looking information which includes statements regarding the number of heavy duty natural gas vehicles expected to be purchased as a result of incentives, demand for our products, the future success of our business and technology strategies, intentions of partners and potential customers, the performance and competitiveness of our products and expansion of product coverage, future market opportunities,. These statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties and are based on assumptions that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activities, performance or achievements expressed in or implied by these forward looking statements. These risks and assumptions include risks and assumptions related to our revenue growth, operating results, industry and products, the general economy, conditions of and access to the capital and debt markets, governmental policies and regulation, technology innovations, fluctuations in foreign exchange rates, the availability and price of natural gas, global government stimulus packages, the acceptance of and shift to natural gas vehicles in fleet markets, the relaxation or waiver of fuel emission standards, the inability of fleets to access capital or government funding to purchase natural gas vehicles, the development of competing technologies as well as other risk factors and assumptions that may affect our actual results, performance or achievements or financial position discussed in our most recent Annual Information Form and other filings with securities regulators. Readers should not place undue reliance on any such forward-looking statements, which speak only as of the date they were made. We disclaim any obligation to publicly update or revise such statements to reflect any change in our expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward- looking statements except as required by National Instrument 51-102.
Power Solutions International, Inc. Reports First Quarter 2012 Results
Net sales up 53% year over year, 6% sequentially
Net income of $1.1 million or $0.13 per diluted share
First quarter adjusted net income of $1.7 million or $0.19 per diluted share which excludes the Company's warrant revaluation
WOOD DALE, Ill., May 14, 2012 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. (OTCBB:PSIX.OB - News), a leader in the design, engineering and manufacture of emissions-certified alternative-fuel and conventional power systems, today announced its financial results for the quarter ended March 31, 2012.
First Quarter 2012 Financial Results
Net sales for the first quarter of 2012 were $48.1 million, an increase of $16.7 million, or 53%, from the first quarter of 2011. Net sales increased $2.6 million or 6%, from the fourth quarter of 2011. The Company saw substantial sales growth in all major product lines and industries served compared to the first quarter last year. The 6% sales growth compared to the fourth quarter of 2011 was the result of notable strength in large power systems, aftermarket products, and other traditional markets served.
Gross profit for the first quarter of 2012 was $8.2 million, resulting in a gross margin of 17.1%. Gross margin continued to improve sequentially as mix shifted to higher margin products.
Operating expenses declined to 10.8% of sales compared to 11.8% of sales in the first quarter of 2011. The Company maintained its commitment to research and development, however, by increasing R&D spending 74% to $1.7 million compared to the year-ago quarter.
Operating income of $3.0 million increased 32% from the first quarter of 2011 and rose 17% from the fourth quarter of 2011.
Other expense for the first quarter includes a non-cash charge of $0.6 million resulting from the increase in the estimated fair value of the liability associated with the warrants issued in the Company's April 2011 private placement.
Net income for the first quarter of 2012, which includes the warrant valuation expense, was $1.1 million, or $0.13 per diluted share. Net income adjusted to remove the warrant valuation impact was $1.7 million, or $0.19 per diluted share. This compares to net income for the first quarter of 2011 of $1.1 million, or $0.13 per diluted share.
Summary of Diluted EPS Attributable to Common Stockholders
"Adjusted" removes all impact of warrant valuation changes
Q1 2012 Q4 2011 Q1 2011 Seq Growth Y/Y Growth
EPS $0.13 $0.06 $0.13 117% 0%
Adjusted EPS $0.19 $0.18 $0.13 6% 46%
Reconciliation of Net Income to Adjusted Net Income
(Dollar amounts in millions)
Three months ended March 31, 2012 Three months ended March 31, 2011
Net Income $1.1 $1.1
Non-cash expense from warrant revaluation $0.6 --
Adjusted Net Income $1.7 $1.1
Reconciliation of Diluted EPS to Adjusted Diluted EPS
Three months ended March 31, 2012 Three months ended March 31, 2011
Diluted earnings per share $0.13 $0.13
Non-cash expense from warrant revaluation $0.06 --
Adjusted diluted earnings per share $0.19 $0.13
Power Solutions International, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
(Dollar amounts in thousands, except per share amount)
March 31, 2012 March 31, 2012
ASSETS
Current assets
Cash $ 156 $ --
Accounts receivable, net 27,585 29,523
Inventories, net 42,213 33,393
Prepaid expenses and other current assets 1,425 1,291
Deferred income taxes 2,122 1,814
Total current assets 73,501 66,021
Property, plant, & equipment, net 3,710 3,611
Other noncurrent assets 2,004 1,451
Total assets $ 79,215 $ 71,083
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Income taxes payable $ 1,748 $ 564
Current maturities of long-term debt 23 23
Line of credit -- 19,666
Accounts payable 31,972 27,574
Accrued liabilities 3,769 4,015
Total current liabilities 37,512 51,842
Line of credit 20,751 --
Deferred income taxes 490 490
Private placement warrants 3,863 3,270
Long-term debt, net of current maturities 35 41
Other noncurrent liabilities 90 116
Total liabilities 62,741 55,759
Commitments and contingencies -- --
Stockholders' equity
Series A convertible preferred stock--$0.001 par value Authorized: 114,000 shares. Issued and outstanding: -0- shares at March 31, 2012 and December 31, 2011. -- --
Common stock--$0.001 par value. Authorized: 50,000,000 shares. Issued and outstanding: 9,064,537 at March 31, 2012 and December 31, 2011. 10 10
Additional paid-in-capital 10,154 10,154
Retained earnings 10,560 9,410
Treasury stock, at cost, 830,925 shares at March 31, 2012 and December 31, 2011. (4,250) (4,250)
Total stockholders' equity 16,474 15,324
Total liabilities and stockholders' equity $ 79,215 $ 71,083
Power Solutions International, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(Dollar amounts in thousands, except per share amounts)
Three months ended March 31, 2012 Three months ended March 31, 2011
Net sales $ 48,072 $ 31,353
Cost of sales 39,843 25,374
Gross profit 8,229 5,979
Operating expenses
Research & development and engineering 1,727 992
Selling and service 1,702 1,392
General and administrative 1,764 1,302
Total operating expense 5,193 3,686
Operating income 3,036 2,293
Other expense
Interest expense 227 629
Other expense, net 628 --
Total other expense 855 629
Income before income taxes 2,181 1,664
Income tax provision 1,031 603
Net income $ 1,150 $ 1,061
Undistributed earnings $ 1,150 $ 1,061
Undistributed earnings allocable to Series A convertible preferred shares $ -- $ 1,021
Undistributed earnings allocable to common shares $ 1,150 $ 40
Weighted-average common shares outstanding
Basic 9,064,537 312,500
Diluted 9,064,537 312,500
Undistributed earnings per common share
Basic $ 0.13 $ 0.13
Diluted $ 0.13 $ 0.13
Power Solutions International, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(Dollar amounts in thousands)
Three months ended March 31, 2012 Three months ended March 31, 2011
Cash flows from operating activities
Net income $ 1,150 $ 1,061
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization 232 181
Deferred income taxes (308) (79)
Increase in accounts receivable allowances 42 64
Increase in valuation of private placement warrants 593 --
Loss on disposal of assets 36 --
(Increase) decrease in operating assets
Accounts receivable 1,896 (2,288)
Inventories (8,820) 1,480
Prepaid and other current assets (134) --
Other noncurrent assets (388) (154)
Increase (decrease) in operating liabilities
Accounts payable 8,089 1,364
Accrued liabilities (246) (108)
Deferred revenue (26) --
Income taxes payable 1,184 682
Net cash provided by operating activities 3,300 2,203
Cash flows from investing activities
Purchases of property, plant, equipment and other assets (345) (314)
Net cash used in investing activities (345) (314)
Cash flows from financing activities
Decrease in cash overdraft (3,780) (301)
Increase (decrease) in revolving line of credit 1,085 (669)
Proceeds from long-term debt -- 43
Payments on long-term debt and capital lease obligations (6) (609)
Cash paid for transaction and financing fees (98) (353)
Net cash used in financing activities (2,799) (1,889)
Net change in cash 156 --
Cash at beginning of the period -- --
Cash at end of the period $ 156 $ --
Supplemental disclosures of cash flow information
Cash paid for interest $ 189 $ 580
Cash paid for income taxes 155 --
Power Solutions International to Attend Upcoming Investor Conferences
WOOD DALE, Ill., May 9, 2012 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. (OTCBB:PSIX.OB), a leader in the design, engineering and manufacture of emissions-certified alternative-fuel and conventional power systems, today announced that the Company will participate in the following investor conferences:
On Wednesday, May 16, 2012, Power Solutions Chief Strategy Officer Thomas Somodi and Chief Financial Officer Daniel Gorey will attend the Barrington Research 6th Annual Industrial & Business Services Conference at the Four Seasons Hotel in Chicago. The Company will be available for investor meetings throughout the day. Investors interested in meeting with Power Solutions should contact their Barrington Research sales representative.
As previously announced, on Tuesday, May 15 through Thursday, May 17, the Company will exhibit at the Alternative Clean Transportation Expo at the Long Beach Convention Center in Long Beach, California. The Company's Chief Executive Officer Gary Winemaster and Chief Operating Officer Eric Cohen will be available for investor meetings while attending the show. Please contact the Company's investor relations firm ICR to schedule a meeting.
On Wednesday and Thursday, May 30 and 31, 2012, Mr. Somodi and Mr. Gorey will attend the Lazard Capital Markets Alternative Energy Investor Summit at the Mandarin Oriental Hotel in New York City. The Company will be available for investor meetings throughout the day. Investors interested in meeting with Power Solutions should contact their Lazard Capital Markets institutional sales representative.
On Thursday, June 7, 2012, Mr. Somodi and Mr. Gorey will present at the Ardour Capital Investments 10th Annual Energy Technology Conference at the offices of Chadbourne & Park LLP in New York City. Mr. Somodi will give a formal presentation at 2:30 PM ET, followed by a break-out session. Mr. Somodi and Mr. Gorey will also be available throughout the day for investor meetings. Attendance at the conference is by invitation only for clients of Ardour Capital, but the formal presentation will be webcast. A link to the webcast will be available in the Investor Relations section of the Company's website at www.powersint.com. For those who are not able to listen to the webcast live, the webcast will be archived for 90 days on the website. Investors interested in a meeting with the Company should contact their Ardour institutional sales representative.
About Power Solutions International, Inc.
Power Solutions International, Inc. is a leader in the design, engineering and manufacture of emissions-certified alternative-fuel and conventional power systems. PSI can provide integrated turnkey solutions to leading global original equipment manufacturers in the industrial, off-road and on-road markets. The Company's unique in-house design, prototyping, engineering and testing capacities enable the customized production of clean, high-performance engines that run on a wide variety of fuels, including natural gas, propane, biogas, diesel, gasoline, and hybrid systems.
PSI develops and delivers complete .97 to 22 liter power systems, including a new 8.8 liter engine aimed at the industrial and on-highway markets. PSI power systems are used worldwide in power generators, forklifts, aerial lifts and industrial sweepers, as well as in equipment for oil and gas production, aircraft ground support, agriculture, and construction. The new 8.8 liter system will be marketed to medium duty fleets, delivery trucks, school buses, and the garbage and waste truck segments.
Contact:
Power Solutions International, Inc.
Dan Gorey
Chief Financial Officer
+1 (630) 451-2290
dgorey@powergreatlakes.com
ICR, LLC
Gary Dvorchak
Senior Vice President
+1 (310) 954-1123
gary.dvorchak@icrinc.com
A 50K share block of PSIX just traded at $16.
Truck, Engine Makers See Natural Gas as Practical Alternative to Diesel Fuel
http://www.ttnews.com/articles/basetemplate.aspx?storyid=29045
Power Solutions International to Report First Quarter 2012 Financial Results on Monday, May 14th
WOOD DALE, Ill., May 1, 2012 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. (PSIX.OB - News) announced today that it will release financial results for the first quarter of 2012 after the market closes on Monday, May 14, 2012. An investor conference call will follow at 4:30 p.m. EST/3:30 p.m. CST. Gary Winemaster, Chief Executive Officer, and Daniel Gorey, Chief Financial Officer, will host the call.
Investors in the U.S. interested in participating in the live call should dial +1 (888) 428-9496. Those calling from outside the U.S. should dial +1 (719) 325-2354. A telephone replay will be available approximately two hours after the call concludes through May 28, 2012 by dialing from the U.S. +1 (877) 870-5176, or from international locations +1 (858) 384-5517, and entering passcode: 9534931. A simultaneous live webcast will be available on the Investor Relations section of the Company's website at http://www.powersint.com. The webcast will be archived on the website for one year.
About Power Solutions International
Power Solutions International, Inc. (PSIX.OB - News) is a leader in the design, engineering and manufacture of emissions-certified alternative-fuel and conventional power systems. PSI can provide integrated turnkey solutions to leading global original equipment manufacturers in the industrial, off-road and on-road markets. The Company's unique in-house design, prototyping, engineering and testing capacities enable the customized production of clean, high-performance engines that run on a wide variety of fuels, including natural gas, propane, biogas, diesel, gasoline, and hybrid systems.
PSI develops and delivers complete .97 to 22 liter power systems, including a new 8.8 liter engine aimed at the industrial and on-highway markets. PSI power systems are used worldwide in power generators, forklifts, aerial lifts and industrial sweepers, as well as in equipment for oil and gas production, aircraft ground support, agriculture, and construction. The new 8.8 liter system will be marketed to medium duty fleets, delivery trucks, school buses, and the garbage and waste truck segments.
Contact:
Investor Relations:
ICR, LLC
Gary Dvorchak, CFA
Senior Vice President
+1 (310) 954-1123
gary.dvorchak@icrinc.com
Company:
Power Solutions International, Inc.
Daniel P. Gorey
Chief Financial Officer
+1 (630) 451-2290
dgorey@powergreatlakes.com
I know that there are government incentives for purchasing a natural gas vehicle like a car. I don't know if there are any incentives for things like forklifts or garbage trucks. I'll see if I can find out.
do they have any "in" w the government??
Photo Release -- PSI to Present New Clean-Vehicle Systems at 2012 ACT Expo
WOOD DALE, Ill., April 30, 2012 (GLOBE NEWSWIRE) -- In response to continued high demand for alternative-fuel engine systems, Power Solutions International, Inc. (PSIX.OB - News) will showcase its latest alternative-fuel systems at the 2012 Alternative Clean Transportation (ACT) Expo, the largest gathering of clean-vehicle stakeholders in the US.
Website
Photos accompanying this release are available at
http://www.globenewswire.com/newsroom/prs/?pkgid=12637
http://www.globenewswire.com/newsroom/prs/?pkgid=12638
PSI will feature its newly designed and engineered 8.8-liter engine, following the engine's introduction at the National RV Trade Show and Power-Gen International shows in November and December 2011. The company will also unveil a new product that will further target the clean transportation market. The 2012 ACT Expo takes place May 15--17 at the Long Beach Convention Center in Long Beach, California.
"The solutions we are bringing to the market are exactly what the industry has been waiting for and we are excited to showcase our new engine lineup at ACT," said Gary Winemaster, CEO of PSI.
The company's 8.8-liter engine fills an important need for fleets fitted with General Motors' "big block" engines. GM stopped producing the 8.1-liter 8100 in 2009, and companies using them are now sourcing their replacement. PSI has not yet released details on the other new engine to be unveiled at the ACT Expo.
The launch of these new engines marks PSI's entry into the on-road market. The company has had consistently strong sales in turnkey engine solutions for the industrial and off-road markets, and the new engines will extend PSI's services to the on-highway Class 4, 5, 6 and 7 vehicle markets. These engines are found in a wide range of applications, including light- and medium-duty trucks, delivery and refuse/garbage vehicles, and school/transit buses. Key benefits, according to Winemaster, include durability, cost, fuel-flexibility, power, efficiency, and emissions compliance.
"PSI is about compliance without compromise, and we're pleased to extend these solutions to the truck, bus, and industrial-OEM markets," said Winemaster of the expansion, "We hope our sponsorship of the expo demonstrates our commitment to clean-vehicle technologies."
As trade publications like Large & Medium Truck have reported, companies shifting to alternative-fuels has been a significant trend, with compressed natural gas (CNG) emerging as the preferred option for several segments. The costs of maintaining more complex, emissions-compliant diesel systems--together with rising diesel fuel prices--have made diesel engines increasingly cost-prohibitive.
In addition, as inventory stocks of 8-liter big-block engines have dwindled, OEMs (Original Equipment Manufacturers) seeking to replace their medium-duty engines have found existing product offerings to be compromises that only partially met their specific application demands. Some have turned to smaller engines only to find that they are too light for the job, while others have gone with heavier engines that weren't cost-effective.
PSI designed their 8.8-liter system to fill this medium-duty need. According to Don Wilkins, PSI's Vice President of Advanced Product Development, the new 8.8-liter offers drop-in convenience and provides uncompromised power performance with the capacity to run on natural gas, liquid propane or gasoline. He says the design also offers several performance-boosting enhancements to the traditional big block engine. "Our design advances have resulted in 20% increases in power and torque over previous automotive big blocks, as well as across-the-board improvements in efficiency and emissions control," said Wilkins.
In addition, rather than delivering stand-alone engines, PSI can customize power systems for each client's unique application.
"Our in-house design, prototyping, engineering and testing capabilities enable us to customize the system to a wide range of application-specific power, fuel, and emissions needs," Wilkins said. Customization is a significant benefit for engineers who are struggling to maintain performance standards while meeting new emissions requirements, such as the Tier-4 emission standard that went into effect in 2010 for on-road applications.
PSI will be showcasing its new products at booth number 345 at the ACT Expo held at Long Beach Convention Center on May 15--17.
Power Solutions International, Inc. (PSIX.OB - News) is a leader in the design, engineering and manufacture of emissions-certified alternative-fuel and conventional power systems. PSI provides integrated turnkey solutions to leading global original equipment manufacturers in the industrial, off- and on-road markets. Our unique in-house design, prototyping, engineering and testing capacities mean we can customize clean, high-performance engines that run on a wide variety of fuels including natural gas, propane, biogas, diesel, gasoline, or hybrid systems and meet applicable environmental standards. We develop and deliver complete .97 to 22-liter power systems to meet our customers' specific applications and power needs, as well as provide service parts and support. PSI power systems are used worldwide in power generators, forklifts, aerial lifts, and industrial sweepers, as well as in oil and gas, aircraft ground support, agricultural and construction equipment.
About the Alternative Clean Transportation (ACT) Expo
The ACT Expo is North America's premiere alternative fuels and clean vehicles conference and expo representing all alternative fuel types. ACT Expo showcases the latest in advanced clean vehicle technologies and funding opportunities, and provides a forum for policy and regulation updates and sharing best practices to support the increased deployment of AFV technologies.
The photo is also available at Newscom, www.newscom.com, and via AP PhotoExpress
Contact:
Jeremy Lessaris, Director of Marketing
jlessaris@psiengines.com
PSIX related article - Hickenlooper joins other govs in call for more natural gas vehicles
http://www.examiner.com/article/hickenlooper-joins-other-govs-call-for-more-natural-gas-vehicles
Here is another article about the benefits of forklifts fueled by natural gas.
http://www.jiffygas.com/forklifts/
Natural Gas Forklifts: Improve Indoor Environment
http://www.virginianaturalgas.com/Business/Equipment/Forklifts.aspx
Here is a discussion on the benefits of using natural gas for forklifts.: http://www.jiffygas.com/forklifts/
According to the 10-K, insider ownership is 82.5%.
Diesel engines are still 95%+ of the industrial space. I wouldn't be surprised to see that drop to 75% or less in the next few years as natural gas engines become more popular. PSIX likely would get a large percentage of that demand. That doesn't even begin to talk about the increased on-road usage for natural gas engines.
I listened to a couple of the presentations and it seems like an interesting company with very nice growth and a bit of moat. Seems management/insiders own in the 90% range. On one of the calls they seemed to be looking for deals too. Considering their growth and (limited) cash I am not sure I understand why.
I don't like paying up even if it does become a nifty 50 and may miss this one but I added it to a watch list. Appreciate the work you do finding stocks like this.
Roth Capital has a $24 price target for PSIX. That is 41% higher than the current price. I think it will go much higher than $24 over the next several years.
PSIX is a new favorite and is my largest holding. They make natural gas engines and are growing very rapidly. I think they have great odds of being a multi-bagger over the next several years. Here are some details on why I like them:
1. The really low prices for natural gas are causing a transition to natural gas engines. PSIX has been focused on the industrial market (e.g. forklifts) where the transition is easiest as a larger network of filling stations isn't required. They are also moving into the on-road market with a an 8.8L offering that is targeted at garbage trucks, light delivery trucks, school buses, and RVs. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=74777512
2. Due to new emissions regulations, natural gas engines are now cheaper than diesel engines. Also, new regulations are increasing the size of diesel engines and some will not even fit in the compartments of the equipment/vehicles that they were designed to fit within.
3. Most pure play natural gas engine companies are not profitable. PSIX is one of only two companies in this industry that I know are profitable. Also, a well known name in this space, WPRT, has a market cap that is 10 times greater than PSIX but only 2 times the revenue and it is not even profitable. PSIX is very undervalued relative to it's peers.
4. The analyst that is covering PSIX is expecting their rapid growth to continue. Revenue is expected to jump to $203M in 2012 and $269M in 2013. They had revenue of $155M, $101M, and $83M in 2011, 2010, and 2009 respectively. Earnings are expected to grow from $0.56/share in 2011 to $0.76/share in 2012 and $1.14/share in 2013. Given their rapid growth, I think they can achieve a PE multiple of 50.
5. PSIX has a number of competitive advantages including:
a. They have agreements in place with many OEMs (e.g. 8 of the 12 top fork lift companies) which would be difficult for someone else to replicate.
b. They have emissions certifications on their engines and have expertise in obtaining certification.
c. They have been in this industry for a long time and thus have a first mover advantage.
6. I expect PSIX to uplist as soon as regulations allow which is in spring of 2013.
7. They have large insider ownership and a small float.
8. Their presentation at ROTH provides a great overview on the company:
http://wsw.com/webcast/roth26/register.aspx?conf=roth26&page=psix&url=http%3A//wsw.com/webcast/roth26/psix/
The ROTH presentation provides a great overview to PSIX. You can watch it here:
http://wsw.com/webcast/roth26/register.aspx?conf=roth26&page=psix&url=http%3A//wsw.com/webcast/roth26/psix/
Power Solutions International, Inc. to Present at the 24th Annual ROTH Conference
WOOD DALE, Ill., March 7, 2012 (GLOBE NEWSWIRE) -- Power Solutions International, Inc (OTC-BB: PSIX.OB) (the "Company") today announced that it will present at the ROTH Conference at The Ritz-Carlton in Laguna Niguel, California March 11-14, 2012. The Company will be represented by Chairman and Chief Executive Officer Gary Winemaster and Chief Financial Officer and Chief Operating Officer Thomas Somodi. They will present at 2:00 PM PDT on Tuesday, March 13. The Company will be available for one-on-one meetings that day scheduled by a ROTH representative. Winemaster also will appear on a panel "The Future of Natural Gas in the United States" on Sunday, March 11 from 4:00-5:30 PM PDT.
About Power Solutions International
Power Solutions International, Inc. (OTC-BB: PSIX.OB) is a leader in the design, engineering and manufacture of emissions-certified alternative-fuel and conventional power systems. PSI can provide integrated turnkey solutions to leading global original equipment manufacturers in the industrial, off-road and on-road markets. The Company's unique in-house design, prototyping, engineering and testing capacities enable the customized production of clean, high-performance engines that run on a wide variety of fuels, including natural gas, propane, biogas, diesel, gasoline, or hybrid systems. The Company also has hardware and proprietary software that integrates hybridization to further expand alternative fuel engine options.
PSI develops and delivers complete .97 to 22 liter power systems, including a new 8.8 liter engine aimed at the on-highway market. PSI power systems are used worldwide in power generators, forklifts, aerial lifts, industrial sweepers, as well as in equipment for oil and gas production, aircraft ground support, agriculture, and construction. The new 8.8 liter system will be marketed to medium duty fleets, delivery trucks, school buses, and the garbage and waste truck segments.
About ROTH Capital Partners
ROTH is an investment banking firm dedicated to the small-cap public market. Since its inception in 1984, ROTH has been an innovator in this market. Headquartered in Newport Beach, California, ROTH has regional offices in San Diego, Los Angeles, Seattle, New York and Pennsylvania. International offices include Shanghai and Hong Kong.
About the 24th Annual ROTH Conference
ROTH's annual three-day conference brings together executives from over 400 growth companies, one of the largest of its kind in the United States. This event is designed to provide investors with a unique opportunity to gain insight into small and mid-cap growth companies across a variety of sectors, including Business Services, Clean Technology, Consumer, Electronics, Financial Institutions, Global Energy and Industrials, Gaming, Healthcare, Media, Retail and Software.
Contact:
Investor Relations:
ICR, LLC
Gary Dvorchak, CFA
Senior Vice President
+1 (310) 954-1123
gary.dvorchak@icrinc.com
Company:
Power Solutions International, Inc.
Daniel P. Gorey
Senior Vice President of Finance
+1 (630) 451-2290
dgorey@powergreatlakes.com
Power Solutions International, Inc. Reports Fourth Quarter and Full Year 2011 Results
Fourth Quarter Net Sales Up 52% Year Over Year, 6% Sequentially
Fourth Quarter Net Income of $0.6 Million or $0.06 Per Diluted Share
Fourth Quarter Adjusted Net Income of $1.7 Million or $0.18 Per Diluted Share
WOOD DALE, Ill., March 26, 2012 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. (OTCBB:PSIX), a leader in the design, engineering and manufacture of emissions-certified alternative-fuel and conventional power systems, today announced its financial results for the fourth quarter and year ended December 31, 2011.
Fourth Quarter 2011 Results
Net sales for the fourth quarter of 2011 were $45.5 million, an increase of $15.6 million, or 52%, from the fourth quarter of 2010 and a 6% increase from the third quarter of 2011. The Company reported net income of $0.6 million, or $0.06 per diluted share, in the fourth quarter of 2011 compared to $0.8 million, or $0.09 per diluted share, in last year's fourth quarter. The 2011 fourth quarter includes a non-cash expense of $1.1 million, or $0.12 per diluted share, related to an increase in the estimated fair value of the liability associated with warrants issued in the Company's April 2011 private placement. Excluding this amount, net income for the fourth quarter was $1.7 million, or $0.18 per diluted share.
"Our results reflect our successful new product and market initiatives, as well as the rapid movement toward the use of clean fuels," said Gary Winemaster, Power Solutions' Chief Executive Officer. "Few companies are as able as Power Solutions to exploit the new energy environment of sustainably inexpensive natural gas. Natural gas-powered engines are no longer an 'alternative', but make economic sense for an increasing number of applications. This dynamic is apparent in the growth we achieved in 2011, and in our outlook for continued strong growth in 2012."
Gross profit for the fourth quarter of 2011 was $7.4 million, resulting in a gross margin of 16.3%. Gross margin improved as expected from the lower 15.3% level in the third quarter of 2011 as we resolved certain short term supply chain interruptions, resulting in strong sales of our higher margin large power systems in the fourth quarter.
Operating income of $2.6 million increased 78% from the fourth quarter of 2010 and rose 11% from the third quarter of 2011.
Other income and expense was $1.3 million in expense for the fourth quarter. Other income and expense also includes the non-cash charge of $1.1 million resulting from the increase in the estimated fair value of the liability associated with the warrants issued in the Company's April 2011 private placement.
Net income for the fourth quarter of 2011, adjusted to remove the warrant valuation impact, was $1.7 million or $0.18 per diluted share. Net income which includes the warrant valuation expense was $0.6 million, or $0.06 per diluted share. Net income for the fourth quarter of 2010 was $0.8 million, or $0.09 per diluted share.
Summary of Fully Diluted EPS Attributable to Common Shareholders
"Adjusted" removes all impact of warrant valuation changes
Q4 2011 Q3 2011 Q4 2010 Seq Growth Y/Y Growth
EPS $0.06 $0.19 $0.09 (68%) (33%)
Adjusted EPS $0.18 $0.13 $0.09 38% 100%
Fourth quarter 2011 is the first quarter in which the company is reporting EPS under its simplified capital structure. As previously reported, all of the Company's outstanding shares of preferred stock were converted into common stock as of August 26, 2011.
Full Year 2011 Results
Sales for 2011 were $155.0 million, an increase of $54.5 million, or 54%, from $100.5 million for 2010. Net income for the twelve months of 2011 was $4.1 million, or $0.44 per diluted share, compared to $1.6 million, or $0.19 per diluted share, for 2010.
Outlook
Winemaster continued, "We are optimistic about 2012 due to the initiatives we are undertaking to capture our expanding market opportunities. Inexpensive natural gas combined with environmental concerns is accelerating the shift away from diesel. To exploit that, we are introducing new products that we expect to accelerate our growth in the years ahead. In 2012, we plan to ramp up production of the 2.0 and 2.4 liter engines that we expect will gain acceptance in the forklift market. Our new 8.8 liter engine should be an attractive offering for both off-road and ultimately on-road applications. Finally, we are developing hybrid systems for which we expect future industrial demand."
Fourth Quarter Conference Call and Presentation
The Company will discuss its financial results and future outlook in a conference call on March 27, 2012 at 8:30AM ET. It will be hosted by Gary Winemaster, Chief Executive Officer and Tom Somodi, Chief Financial Officer. Investors in the United States interested in participating in the call should dial +1 (888) 401-4669 (or +1 (719) 325-2209 international and toll) and enter passcode 5194656. A telephonic replay will be available two hours after the call and will be available for one week by dialing +1 (877) 870-5176 from the United States or +1 (858) 384-5517 from international locations and entering passcode 5194656. There also will be a simultaneous live webcast that will be available on the Company's website at http://www.powersint.com. Afterward, it will be archived on the Company's website.
About Power Solutions International, Inc.
Power Solutions International, Inc. (OTCBB:PSIX) is a leader in the design, engineering and manufacture of emissions-certified alternative-fuel and conventional power systems. PSI can provide integrated turnkey solutions to leading global original equipment manufacturers in the industrial, off-road and on-road markets. The Company's unique in-house design, prototyping, engineering and testing capacities enable the customized production of clean, high-performance engines that run on a wide variety of fuels, including natural gas, propane, biogas, diesel, gasoline, and hybrid systems.
PSI develops and delivers complete .97 to 22 liter power systems, including a new 8.8 liter engine aimed at the industrial and on-highway markets. PSI power systems are used worldwide in power generators, forklifts, aerial lifts and industrial sweepers, as well as in equipment for oil and gas production, aircraft ground support, agriculture, and construction. The new 8.8 liter system will be marketed to medium duty fleets, delivery trucks, school buses, and the garbage and waste truck segments.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements, including the statements under the heading "Outlook" and other statements regarding the current expectations of Power Solutions International, Inc. (the "Company") about its prospects and opportunities. The Company has tried to identify these forward looking statements by using words such as "expect," "anticipate," "estimate," "plan," "will," "would," "should," "forecast," "believe," "guidance," "projection" or similar expressions, but these words are not the exclusive means for identifying such statements. The Company cautions that a number of risks, uncertainties and other important factors could cause the Company's actual results to differ materially from those expressed in, or implied by, the forward-looking statements, including, without limitation, the development of the market for alternative fuel systems, technological and other risks relating to the Company's development of its new 8.8 liter engine, introduction of other new products and entry into on-road markets (including the risk that these initiatives may not be successful) changes in environmental and regulatory policies, significant competition, general economic conditions and the Company's dependence on key suppliers. For a detailed discussion of factors that could affect the Company's future operating results, please see the Company's SEC filings, including the disclosures under "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in those filings. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason.
Non-GAAP Financial Measures and Reconciliations
As used herein, "GAAP" refers to generally accepted accounting principles in the United States. We use certain numerical measures in this press release which are or may be considered "Non-GAAP financial measures" under Regulation G. We have provided below for your reference supplemental financial disclosure for these measures, including the most directly comparable GAAP measures and associated reconciliations.
Reconciliation of Net Income to Adjusted Net Income
(Dollar amounts in millions)
Three months ended December 31, 2011 Three months ended December 31, 2010
Net Income $0.6 $0.8
Non-cash expense from warrant revaluation $1.1 $0.0
Adjusted Net Income $1.7 $0.8
Reconciliation of EPS to Adjusted EPS
Three months ended December 31, 2011 Three months ended December 31, 2010
Earnings per share $0.06 $0.09
Non-cash expense from warrant revaluation $0.12 $0.00
Adjusted diluted earnings per share $0.18 $0.09
Note: Adjusted net income and adjusted diluted earnings per share are derived from GAAP results by excluding the non-cash expense related to the increase in the estimated fair value of the liability associated with the warrants issued in the Company's April 2011 private placement. The Company believes supplementing its consolidated financial statements presented in accordance with GAAP with non-GAAP measures will provide investors further understanding of the Company's short-term and long-term trends. Investors may want to consider excluding the impact of this non-operating, non-cash expense, as the Company believes it is not indicative of its core operating results or future performance. The warrant revaluation results from facts and circumstances that fluctuate in impact and is excluded by management in its forecast and evaluation of the Company's operational performance.
Adjusted net income, adjusted diluted earnings per share and other non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. Investors should consider non-GAAP measures in addition to, and not as a substitute for, or as superior to, financial performance measures prepared in accordance with GAAP.
Power Solutions International, Inc.
Condensed Consolidated Balance Sheets
(Dollar amounts in thousands)
Unaudited
December 31, 2011 December 31, 2010
ASSETS
Current assets:
Cash $ -- $ --
Accounts receivable, net 29,523 16,282
Inventories 33,393 32,168
Prepaid expenses and other current assets 1,291 1,028
Deferred income taxes 1,814 687
Total current assets 66,021 50,165
Property, plant, and equipment, net 3,611 2,883
Other noncurrent assets 1,451 2,305
Total assets $ 71,083 $ 55,353
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Income taxes payable $ 564 $ 619
Current maturities of long-term debt and capital lease obligations 23 2,226
Line of credit 19,666 21,633
Accounts payable 27,574 17,210
Accrued liabilities 4,015 2,211
Total current liabilities 51,842 43,899
Other noncurrent liabilities 116 189
Deferred income taxes 490 233
Private placement warrants 3,270 --
Long-term debt and capital lease obligations, net of current maturities 41 5,676
Total liabilities 55,759 49,997
Commitments and contingencies -- --
Stockholders' Equity:
Series A convertible preferred stock—$0.001 par value: Authorized 114,000 shares. Issued and outstanding: 0 and 95,961 shares at December 31, 2011 and December 31, 2010, respectively -- --
Common stock—$0.001 par value. Authorized 50,000,000 shares. Issued: 9,895,462 and 312,500 shares at December 31, 2011 and December 31, 2010, respectively --
Additional paid-in capital 10,154 7
Retained earnings 9,410 5,349
Treasury stock, at cost, 830,925 shares and 0 at December 31, 2011 and 2010, respectively (4,250) --
Total stockholders' equity 15,324 5,356
Total liabilities and stockholders' equity $ 71,083 $ 55,353
Power Solutions International, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(Dollar amounts in thousands, except per share amounts)
Three months
ended
December 31,
2011 Three months
ended
December 31,
2010 Twelve months
ended
December 31,
2011 Twelve months
ended
December 31,
2010
Net sales $ 45,489 $ 29,873 $ 154,969 $ 100,521
Cost of sales 38,087 24,490 128,541 83,894
Gross profit 7,402 5,383 26,428 16,627
Operating expenses:
Research & development and engineering 1,445 1,086 4,713 3,846
Selling and service 1,891 1,781 6,666 5,465
General and administrative 1,467 1,054 5,244 3,250
Operating income 2,599 1,462 9,805 4,066
Other (income) expense:
Interest expense 215 508 1,340 2,131
Loss on debt extinguishment -- -- 485 --
Other (income) expense, net 1,079 -- 1,146 --
Income before income taxes 1,305 954 6,834 1,935
Income tax provision 720 183 2,773 366
Net income $ 585 $ 771 $ 4,061 $ 1,569
Undistributed earnings $ 585 $ 771 $ 4,061 $ 1,569
Undistributed earnings allocable to Series A convertible preferred shares -- $ 742 $ 2,513 $ 1,510
Undistributed earnings allocable to common shares $ 585 $ 29 $ 1,548 $ 59
Weighted-average common shares outstanding:
Basic 9,335,491 312,500 3,512,534 312,500
Diluted 9,335,491 312,500 3,512,534 312,500
Undistributed earnings per share
- Basic
Common shares $ 0.06 $ 0.09 $ 0.44 $ 0.19
Undistributed earnings per share
- Diluted
Common shares $ 0.06 $ 0.09 $ 0.44 $ 0.19
Power Solutions International, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(Dollar amounts in thousands)
Twelve months
ended
December 31,
2011 Twelve months
ended
December 31,
2010
Cash flows from operating activities:
Net income $ 4,061 $ 1,569
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 820 988
Deferred income taxes (870) (159)
Increase (decrease) in accounts receivable allowances (249) 246
Change in valuation of private placement warrants 382 --
Loss on debt extinguishment 485 --
Loss on disposal of assets 6 --
(Increase) decrease in operating assets:
Accounts receivable (12,992) 12,012
Inventories (1,225) (1,001)
Prepaid and other current assets (410) (533)
Other noncurrent assets 173 76
Increase (decrease) in operating liabilities:
Accounts payable 7,365 (9,255)
Accrued liabilities 1,609 463
Deferred revenue (73) 189
Income taxes payable (55) (671)
Net cash (used in) provided by operating activities (973) 3,924
Cash flows from Investing activities:
Purchases of property, plant, equipment and other assets (1,557) (541)
Increase in cash surrender value of life insurance (13) (42)
Net cash used in investing activities (1,570) (583)
Cash flows from financing activities:
Increase (decrease) in cash overdraft 3,251 (120)
Initial proceeds from borrowings under current line of credit 18,338 --
Net change in current line of credit 1,328 (776)
Repayment of prior line of credit (21,633) --
Proceeds from long-term debt 43 95
Proceeds from issuance of preferred stock with warrants 18,000 --
Payments on long-term debt and capital lease obligations (7,880) (2,226)
Repurchase of common stock (4,250) --
Cash paid for transaction and financing fees (4,654) (314)
Net cash provided by (used in) financing activities 2,543 (3,341)
Change in cash -- --
Cash at beginning of the year -- --
Cash at end of the year $ -- $ --
Supplemental disclosures of cash flow information:
Cash paid for interest $ 1,163 $ 1,899
Cash paid for income taxes 3,695 1,196
Power Solutions International, Inc. Reports Third Quarter 2011 Results
WOOD DALE, Ill., Nov. 14, 2011 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. (OTCBB:PSIX) today announced its financial results for the third quarter and nine months ended September 30, 2011.
Third Quarter 2011 Financial Highlights:
Third quarter sales of $42.8 million, up 57% from the prior year comparable quarter
Third quarter diluted common EPS of $0.19
Sales for the nine months of $109 million, up 55% from the prior year
Net sales for the third quarter of 2011 were $42.8 million, an increase of $15.6 million or 57% from the third quarter of 2010 and a 21% increase from the second quarter of 2011. The Company reported net income of $1.9 million or $0.19 per diluted share in the third quarter of 2011 compared to $.05 per diluted share in last year's third quarter. Growth during the quarter was driven by strong unit volumes to Asia and in the domestic material handling market.
"We are pleased with the strong growth in our business," said Gary Winemaster, PSI's Chief Executive Officer. "Our business continues to improve as a result of the improving economic conditions for our customers. More significant, however, has been the major impact of our new product and new market initiatives. As an example, we started shipping to Asian-based customers in 2010, and that part of our business is growing rapidly as our products' design superiority and value proposition become increasingly embraced."
Gross profit for the third quarter of 2011 was $6.6 million. The gross profit margin was 15.3%. This compares to 15.1% in third quarter of 2010, but was down from the 18.4% gross margin in the second quarter of 2011. The Company reported that its sales mix contributed to the decline in gross margin on a sequential basis and expects to see improvement in the near-term.
Operating profit of $2.3 million was more than double from the third quarter 2010 but down somewhat from the second quarter 2011 operating profit of $2.6 million. The sequential decline in operating profit was due to the lower gross margin, offset in part by operating expense leverage.
Other income and expense, which includes interest expense, was $396,000 in the third quarter. This includes non-cash income of $585,000, resulting from a decrease in the estimated fair value of the liability associated with the warrants issued in the Company's April 2011 private placement.
Net income for the third quarter of 2011 was $1.9 million. Of this amount, $1.1 million was allocable to the average outstanding shares of the Company's Series A Convertible Preferred Stock during the quarter. The balance of $786,000 of earnings was allocable to common shareholders, of which there were 4.1 million average shares outstanding during the quarter. This represents diluted EPS of $0.19, which compares to diluted EPS of $0.05 in the third quarter of 2010. The Company said its capital structure was simplified during the quarter, with all of the preferred shares converted into common shares as of August 26, 2011.
Sales for the nine months ended September 30, 2011 were $109.5 million, an increase of $38.9 million or 55% from $70.6 million during the same period last year. Net income for the nine month period was $3.5 million or $0.38 per common share, compared to $0.8 million, or $0.10 per common share, for the same period in 2010.
"The whole team at PSI is excited by the progress we have made in our first full quarter as a publicly traded company," said Gary Winemaster, Chief Executive Officer. "We believe we have the right products and leading technologies, and along with our talented group of employees, are well positioned for future growth. The abundant supply of natural gas and continuing movement toward clean fuels will drive strong growth for alternative-fueled engines, attracting more applications over time. PSI intends to be the leader in this expanding market."
Third Quarter Conference Call and Presentation
The Company will discuss its financial results and future outlook in a conference call today at 4:30 p.m. EST, hosted by Gary Winemaster, Chief Executive Officer, and Tom Somodi, Chief Financial Officer. Investors in the U.S. interested in participating in the live call should dial +1 (888) 378-4361 and enter passcode: 6483352. Those calling from outside the U.S. should dial +1 (719) 325-2249 and use the same passcode: 6483352. A telephone replay will be available approximately two hours after the call concludes through November 21, 2011 by dialing from the U.S. +1 (877) 870-5176, or from international locations +1 (858) 384-5517, and entering passcode: 6483352. There will also be a simultaneous live webcast that will be available at http://www.powersint.com. The webcast will be archived on that website.
About Power Solutions International, Inc.
Power Solutions International, Inc. (OTCBB:PSIX) is one of the leaders in the design, engineering and manufacture of emissions-certified alternative-fuel and conventional power systems. PSI can provide integrated turnkey solutions to leading global original equipment manufacturers in the industrial, off-road and on-road markets. The Company's unique in-house design, prototyping, engineering and testing capacities enable the customized production of clean, high-performance engines that run on a wide variety of fuels, including natural gas, propane, biogas, diesel and gasoline. PSI develops and delivers complete .97 to 22 liter power systems that meet both its customers' specific power needs and applicable environmental standards. The Company also provides aftermarket products and support. PSI power systems are used worldwide in power generators, forklifts, aerial lifts, and industrial sweepers, as well as in equipment for oil and gas production, aircraft ground support, agriculture, and construction.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding the current expectations of Power Solutions International, Inc. (the "Company") about its prospects and opportunities. The Company has tried to identify these forward looking statements by using words such as "expect," "anticipate," "estimate," "plan," "will," "would," "should," "forecast," "believe," "guidance," "projection" or similar expressions, but these words are not the exclusive means for identifying such statements. The Company cautions that a number of risks, uncertainties and other important factors could cause the Company's actual results to differ materially from those expressed in, or implied by, the forward-looking statements, including, without limitation, the current challenging economic conditions, the development of the market for alternative fuel systems, changes in environmental and regulatory policies, significant competition and the Company's dependence on key suppliers. For a detailed discussion of factors that could affect the Company's future operating results, please see the Company's SEC filings, including the disclosures under "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in those filings. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason.
Power Solutions International, Inc.
Condensed Consolidated Balance Sheets
(Dollar amounts in thousands)
(Unaudited)
September 30, December 31,
2011 2010
ASSETS
Current assets:
Cash $ -- $ --
Accounts receivable, net 26,704 16,282
Inventories 32,575 32,168
Prepaid expenses and other current assets 1,124 1,028
Deferred income taxes 779 687
Total current assets 61,182 50,165
Property, plant, and equipment, net 2,905 2,883
Other noncurrent assets 1,231 2,305
Total assets $ 65,318 $ 55,353
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Income taxes payable $ 188 $ 619
Current maturities of long-term debt and capital lease obligations 22 2,226
Line of credit 17,180 21,633
Accounts payable 23,103 17,210
Accrued liabilities 3,195 2,211
Total current liabilities 43,688 43,899
Other noncurrent liabilities 188 189
Deferred income taxes 197 233
Private placement warrants 2,198 --
Long-term debt and capital lease obligations, net of current maturities 48 5,676
Total liabilities 46,319 49,997
Commitments and contingencies -- --
Stockholders' Equity:
Series A convertible preferred stock -- $0.001 par value: Authorized
114,000 shares. Issued and outstanding: none and 95,961 shares at
September 30, 2011 and December 31, 2010, respectively. -- --
Common stock -- $0.001 par value. Authorized 50,000,000 shares.
Issued and outstanding: 9,895,461 and 312,500 shares at September
30, 2011 and December 31, 2010, respectively. 10 --
Common stock warrant --
Additional paid-in capital 10,164 7
Retained earnings 8,825 5,349
Total stockholders' equity 18,999 5,356
Total liabilities and stockholders' equity $ 65,318 $ 55,353
Power Solutions International, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(Dollar amounts in thousands, except per share amounts)
Three months
ended
September 30,
2011 Three months
ended
September 30,
2010 Nine months
ended
September 30,
2011 Nine months
ended
September 30,
2010
Net sales $ 42,798 $ 27,249 $ 109,480 $ 70,648
Cost of sales 36,236 23,145 90,454 59,404
Gross profit 6,562 4,104 19,026 11,244
Operating expenses:
Research & development and engineering 1,260 1,020 3,268 2,760
Selling and service 1,608 1,226 4,775 3,684
General and administrative 1,351 756 3,777 2,196
4,219 3,002 11,820 8,640
Operating income 2,343 1,102 7,206 2,604
Other income (expense):
Interest expense 195 625 1,125 1,623
Loss on debt extinguishment -- -- 485 --
Other income (expense), net (591) -- 67 --
(396) 625 1,677 1,623
Income before income taxes 2,739 477 5,529 981
Income tax provision 838 88 2,053 183
Net income $ 1,901 $ 389 $ 3,476 $ 798
Undistributed earnings $ 1,901 $ 389 $ 3,476 $ 798
Undistributed earnings allocable to
Series A convertible preferred shares $ 1,115 $ 374 $ 2,881 $ 768
Undistributed earnings allocable to
common shares $ 786 $ 15 $ 595 $ 30
Weighted-average common shares outstanding:
Basic 4,072,968 312,500 1,571,549 312,500
Diluted 4,072,968 312,500 1,571,549 312,500
Undistributed earnings per share
- Basic
Common shares $ 0.19 $ 0.05 $ 0.38 $ 0.10
Undistributed earnings per share
- Diluted
Common shares $ 0.19 $ 0.05 $ 0.38 $ 0.10
Power Solutions International, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(Dollar amounts in thousands)
Nine months
ended
September 30,
2011 Nine months
ended
September 30,
2010
Cash flows from operating activities:
Net income $ 3,476 $ 798
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization 604 686
Deferred income taxes (128) 59
Increase (decrease) in accounts receivable allowances (43) 71
Decrease in valuation of private placement warrants (690) --
Loss on debt extinguishment 485 --
(Increase) decrease in operating assets:
Accounts receivable (10,379) 13,464
Inventories (407) (1,398)
Prepaid and other current assets (243) (456)
Other noncurrent assets 403 333
Increase (decrease) in operating liabilities:
Accounts payable 4,376 (7,825)
Accrued liabilities 415 (96)
Income taxes payable (431) (1,073)
Deferred revenue -- --
Net cash (used in) provided by operating activities (2,562) 4,563
Cash flows from Investing activities:
Purchase of property, plant, equipment and other assets (699) (376)
Increase in cash surrender value of life insurance (12) --
Net cash used in investing activities (711) (376)
Cash flows from financing activities:
Increase in cash overdraft 1,661 189
Initial proceeds from borrowings under current line of credit 18,338 --
Net decrease in current line of credit (1,158) --
Repayment of prior line of credit (21,633) (2,645)
Proceeds from long-term debt 43 52
Proceeds from issuance of preferred stock with warrants 18,000 --
Payments on long-term debt and capital lease obligations (7,875) (1,664)
Cash paid for transaction and financing fees (4,103) (119)
Net cash provided by (used in) financing activities 3,273 (4,187)
Net change in cash -- --
Cash at beginning of period -- --
Cash at end of period $ -- $ --
Supplemental disclosures of cash flow information:
Cash paid for interest $ 993 $ 1,376
Cash paid for income taxes 2,630 1,196
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