Power Solutions International Files 10-K for 2018 and Provides 2019 Financial Outlook

Significant gross margin and profitability improvement expected for 2019

WOOD DALE, Ill., Dec. 27, 2019 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. ("the Company") (OTC Pink:  PSIX), a leader in the design, engineering and manufacture of emission-certified engines and power systems, announced that it has filed its Annual Report on Form 10-K for the year ended December 31, 2018 with the U.S. Securities and Exchange Commission (“SEC”).    

Anticipated Timing for 2019 Filings
The Company currently anticipates filing its Quarterly Reports on Form 10-Q for the quarters ended March 31, June 30 and September 30, 2019, and its Form 10-K for the year ended December 31, 2019 by March 30, 2020.  Upon filing the aforementioned documents with the SEC, the Company will become current and timely with its filings and will seek to relist its common stock on a national exchange. 

Outlook for Full Year of 2019
Projected sales for the full year of 2019 are expected to be above the $496 million level achieved in 2018, marking the Company’s third consecutive year of annual sales growth, and up considerably from sales of $339 million in 2016.  Gross profit is anticipated to improve substantially versus 2018 due to healthy sales growth, favorable mix, strategic pricing actions, lower warranty costs and operational productivity improvements, which collectively are expected to drive a strong gross margin improvement.  In addition, the Company’s operating income is expected to be favorably impacted by lower selling, general and administrative expenses primarily as a result of a decline in restatement-related expenses.  As a result, the Company also expects its profitability to show a major improvement versus 2018. The Company cautions that this outlook is subject to change upon the finalization of PSI’s audited financial statements for the full year of 2019.

The Company’s total debt obligations were approximately $92 million at September 30, 2019, a decrease of approximately $18 million as compared with total debt at December 31, 2018. The decline in debt includes the net impact of customer prepayments of approximately $11 million.

Management Comments
John Miller, chief executive officer, commented, “We continue to execute against our business objectives, which includes continued investment in the expansion of our engine portfolio and the improvement of our profitability.  During 2019, we added several engines to our product lineup, including 20L, 40L, and 53L diesel models, which received EPA emergency standby certification.  The addition of these diesel models and others to our portfolio follows the introduction of 32L and 40L natural gas engines during 2018 and complements our strong suite of natural gas products.  Importantly, we’ve expanded our addressable market within power generation, and have set the stage for long-term growth, particularly within our energy end market where we’ve historically achieved stronger margins.”