Power Solutions International, Inc. Reports First Quarter 2012 Results
Net sales up 53% year over year, 6% sequentially
Net income of
First quarter adjusted net income of
First Quarter 2012 Financial Results
Net sales for the first quarter of 2012 were
Gross profit for the first quarter of 2012 was
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
Operating income of
Other expense for the first quarter includes a non-cash charge of
Net income for the first quarter of 2012, which includes the warrant valuation expense, was
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Summary of Diluted EPS Attributable to Common Stockholders "Adjusted" removes all impact of warrant valuation changes |
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| Q1 2012 | Q4 2011 | Q1 2011 | Seq Growth | Y/Y Growth | |
| EPS |
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117% | 0% |
| Adjusted EPS |
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6% | 46% |
Comparisons of per share results for the first quarter 2012 compared to first 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
"These solid results reflect both the hard work of our employees and the attractiveness of the market opportunities in front of us," stated
First Quarter Earnings Results Conference Call
The Company will discuss its financial results and future outlook in a conference call on
About
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 statement as to confidence in sustaining the high rate of growth and other statements regarding the current expectations of
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.
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Reconciliation of Net Income to Adjusted Net Income (Dollar amounts in millions) |
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| Three months ended March 31, 2012 | Three months ended March 31, 2011 | |
| Net Income |
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| Non-cash expense from warrant revaluation |
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-- |
| Adjusted Net Income |
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| Reconciliation of Diluted EPS to Adjusted Diluted EPS | ||
| Three months ended March 31, 2012 | Three months ended March 31, 2011 | |
| Diluted earnings per share |
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| Non-cash expense from warrant revaluation |
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-- |
| Adjusted diluted earnings per share |
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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
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.
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| 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 | ||
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Series A convertible preferred stock—$0.001 par value Authorized: 114,000 shares. Issued and outstanding: -0- shares at |
-- | -- |
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Common stock—$0.001 par value. Authorized: 50,000,000 shares. Issued and outstanding: 9,064,537 at |
10 | 10 |
| Additional paid-in-capital | 10,154 | 10,154 |
| Retained earnings | 10,560 | 9,410 |
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Treasury stock, at cost, 830,925 shares at |
(4,250) | (4,250) |
| Total stockholders' equity | 16,474 | 15,324 |
| Total liabilities and stockholders' equity | $ 79,215 | $ 71,083 |
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| 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 |
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| Condensed Consolidated Statements of Cash Flows (Unaudited) | ||
| (Dollar amounts in thousands) | ||
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Three months ended |
Three months ended |
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| 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 | -- |
CONTACT:Source:Power Solutions International, Inc. Dan Gorey Chief Financial Officer +1 (630) 451-2290 dgorey@powergreatlakes.comICR, LLC Gary Dvorchak Senior Vice President +1 (310) 954-1123
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