Judging by PPSI's filings, Provident Pioneer was a major shareholder of PPSI until 2021 but has not been reported among >5% equity holders since then. I am not sure of the reason behind this or whether Provident Pioneer continues to own PPSI's equity, but in any case, I agree that the CEO's incentives are well aligned here.
Management has not yet given any guidance on RemainCo's margin or corporate overhead. The company expects to provide more information during the Q3 earnings call, where we will hopefully receive a more definitive answer. That said, based on e-Boost's historical performance and a reasonable/conservative set of assumptions (30% gross margins and unchanged corporate overheads), I would expect PPSI to become profitable with c. $25m in revenues, compared to the $20m guided for 2024.
The company does have a track record of profitability under the leadership of the current CEO. I would refer you to the period from 2009 to 2013, when PPSI was mostly consistently profitable, although the company was, of course, operating a different business back then. More recently, the company has been admittedly unprofitable. But I will note that PPSI was on the cusp of a profitability inflection in 2024, with an estimated $0.32 EPS for 2024. The math will, of course, change with the recent e-Bloc divestiture, but PPSI might turn profitable as soon as 2025 if the e-Boost business continues to grow.
CEO owns much more than 20% through provident pioneer! He's very well aligned.
Judging by PPSI's filings, Provident Pioneer was a major shareholder of PPSI until 2021 but has not been reported among >5% equity holders since then. I am not sure of the reason behind this or whether Provident Pioneer continues to own PPSI's equity, but in any case, I agree that the CEO's incentives are well aligned here.
At what revenue level does PPSI become profitable based on RemainCo?
Management has not yet given any guidance on RemainCo's margin or corporate overhead. The company expects to provide more information during the Q3 earnings call, where we will hopefully receive a more definitive answer. That said, based on e-Boost's historical performance and a reasonable/conservative set of assumptions (30% gross margins and unchanged corporate overheads), I would expect PPSI to become profitable with c. $25m in revenues, compared to the $20m guided for 2024.
has this company ever been profitable?
The company does have a track record of profitability under the leadership of the current CEO. I would refer you to the period from 2009 to 2013, when PPSI was mostly consistently profitable, although the company was, of course, operating a different business back then. More recently, the company has been admittedly unprofitable. But I will note that PPSI was on the cusp of a profitability inflection in 2024, with an estimated $0.32 EPS for 2024. The math will, of course, change with the recent e-Bloc divestiture, but PPSI might turn profitable as soon as 2025 if the e-Boost business continues to grow.