Energy Options Worldwide Publicizes File Second Quarter 2024 Monetary Outcomes

Internet Revenue was $21.5 million, a rise of
236% from a 12 months earlier,

Gross Margin was 31.8%, a rise of 9.7% from a 12 months earlier,

EPS have been $0.94, an enhance of $0.66 from a 12 months earlier,

Debt decreased $5.0 million,

Shareholder Fairness elevated to $24.8 million.

WOOD DALE, Ailing., Aug. 12, 2024 (GLOBE NEWSWIRE) — Energy Options Worldwide, Inc. (the “Firm” or “PSI”) (OTC Pink: PSIX), a pacesetter within the design, engineering and manufacture of emission-certified engines and energy programs, publicizes second quarter 2024 monetary outcomes.

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Second Quarter 2024 Outcomes

In the present day, Energy Options Worldwide, Inc., reported file revenue for the three months ended June 30, 2024, with internet revenue of $21.5 million and diluted earnings per share of $0.94, in comparison with internet revenue of $6.4 million and diluted earnings per share of $0.28 for the second quarter of 2023.

Dino Xykis, Chief Govt Officer, commented, “I’m happy to report that within the second quarter, we achieved record-breaking outcomes with a gross margin of 31.8% and internet revenue of $21.5 million. Our gross sales efficiency was pushed by excessive demand within the energy programs market, offset by the lower in gross sales from a few of our transportation prospects and the softness we noticed within the industrial market. Our crew has demonstrated outstanding dedication to revenue maximization and value administration, which has considerably bolstered margin, profitability and shareholder fairness this quarter.”

Xykis continued, “Trying forward, we stay optimistic about gross sales enhance for the rest of the 12 months, because of the continued sturdy demand for merchandise within the energy programs, particularly PSI merchandise serving the expansion of Knowledge Middle markets that PSI has been actively pursuing since final 12 months. We now have efficiently secured and are within the technique of finalizing a number of main multi-year gross sales agreements with key prospects for Knowledge Middle purposes. These strategic partnerships are poised to drive future development on this phase now and sooner or later. Our focus stays on leveraging these alternatives to drive additional worthwhile development and ship sustained worth to our shareholders.”

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Gross sales for the second quarter of 2024 have been $110.6 million, a lower of $11.3 million, or 9%, in comparison with the second quarter of 2023, on account of decrease gross sales of $14.1 million and $15.8 million throughout the industrial and transportation finish markets, respectively, partially offset by a rise of $18.6 million within the energy programs finish market. Greater energy programs finish market gross sales are primarily as a consequence of elevated demand for merchandise throughout numerous purposes, with the most important will increase attributable to merchandise used throughout the packaging market resembling enclosures serving the fast-growing Knowledge Middle market, in addition to oil and fuel merchandise and demand response merchandise. We’re strategically prioritizing the quickly increasing Knowledge Middle sector, bettering and growing our manufacturing capability and capabilities to fulfill and exceed our prospects’ evolving demand for our merchandise. The decreased gross sales throughout the transportation finish market have been primarily attributable to decrease gross sales within the truck and college bus market as buyer merchandise have advanced, and new compliance and regulatory necessities have modified engine product choices. Decreased industrial finish market gross sales are primarily as a consequence of decreases in demand for merchandise used throughout the materials dealing with and arbor care markets, in addition to the direct results of enforcement of the Uyghur Compelled Labor Prevention Act (“UFLPA”), which restricted the Firm’s skill to import sure uncooked supplies in early 2024.

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Gross revenue elevated by $8.2 million, or 31%, throughout the second quarter of 2024 as in comparison with the identical interval within the prior 12 months. Gross margin within the second quarter of 2024 was 31.8%, a rise of 9.7 proportion factors in comparison with 22.1% in the identical interval final 12 months, primarily as a consequence of improved combine, pricing actions, larger working efficiencies, decrease guarantee prices primarily attributable to the Firm’s gross sales shift away from a few of our transportation prospects.

Promoting, common and administrative bills decreased throughout the second quarter of 2024 by $6.0 million, or 57%, in comparison with the identical interval within the prior 12 months, principally attributable to a lower within the authorized reserve, decrease skilled charges, and the lower promoting bills related to decreased gross sales within the transportation phase.

Curiosity expense was $2.9 million within the second quarter of 2024 as in comparison with $4.6 million in the identical interval within the prior 12 months, largely as a consequence of decreased excellent debt, partially offset by larger general efficient rates of interest.

Internet revenue was $21.5 million, or internet revenue per share of $0.94 within the second quarter of 2024, in comparison with internet revenue of $6.4 million, or internet revenue per share of $0.28 for the second quarter of 2023.

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Debt Replace

The Firm’s complete debt was roughly $135.1 million at June 30, 2024, whereas money and money equivalents have been roughly $28.8 million. This compares to complete debt of roughly $145.2 million and money and money equivalents of roughly $22.8 million at December 31, 2023. Included within the Firm’s complete debt at June 30, 2024, have been borrowings of $40.0 million below the Uncommitted Revolving Credit score Settlement (“Credit score Settlement”) with Normal Chartered Financial institution, borrowings of $25.0 million, $50.0 million, and $19.8 million respectively, below the assorted Shareholder Mortgage Agreements, with Weichai America Corp., its majority stockholder, as described in additional element within the Firm’s Type 10-Q for the primary quarter of 2024. The Firm made funds totaling $5.0 million associated to the Credit score Settlement, throughout the second quarter of 2024. The Firm is proactively in search of alternatives to optimize and strengthen our debt construction.

Outlook for 2024

The Firm expects its gross sales in 2024 to extend by roughly 3% versus 2023 ranges, a results of expectations for sturdy development within the energy programs finish market paired with flat gross sales within the industrial finish market and a forecasted discount within the transportation finish markets. However this outlook, which is being pushed partially by expectations for steady enchancment in provide chain dynamics, together with timelier availability of elements and a continuation of favorable financial circumstances inside the US and throughout the Firm’s numerous markets, the Firm cautions that vital uncertainty stays on account of provide chain challenges, inflationary prices, commodity volatility, and the influence on the worldwide economic system of the struggle in Ukraine and Israel, amongst different elements.

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About Energy Options Worldwide, Inc.

Energy Options Worldwide, Inc. (PSI) is a pacesetter within the design, engineering and manufacture of a broad vary of superior, emission-certified engines and energy programs. PSI offers built-in turnkey options to main world unique gear producers and end-user prospects throughout the energy programs, industrial and transportation finish markets. The Firm’s distinctive in-house design, prototyping, engineering and testing capabilities enable PSI to customise clear, high-performance engines utilizing a gasoline agnostic technique to run on all kinds of fuels, together with pure fuel, propane, gasoline, diesel and biofuels.

PSI develops and delivers full energy programs which might be used worldwide in stationary and cellular energy era purposes supporting standby, prime, demand response, microgrid, and co-generation energy (CHP) purposes; and industrial purposes that embrace forklifts, agricultural and turf, arbor care, industrial sweepers, aerial lifts, irrigation pumps, floor help, and building gear. As well as, PSI develops and delivers powertrains purpose-built for medium-duty vehicles and buses together with faculty and transit buses, work vehicles, terminal tractors, and numerous different vocational autos. For extra info on PSI, go to www.psiengines.com.

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Cautionary Notice Concerning Ahead-Trying Statements

This press launch incorporates forward-looking statements relating to the present expectations of the Firm about its prospects and alternatives. These forward-looking statements are entitled to the safe-harbor provisions of Part 21E of the Securities Trade Act of 1934, as amended (the “Trade Act”). These statements could contain dangers and uncertainties. These statements typically embrace phrases resembling “anticipate,” “consider,” “budgeted,” “ponder,” “estimate,” “count on,” “forecast,” “steering,” “could,” “outlook,” “plan,” “projection,” “ought to,” “goal,” “will,” “would” or comparable expressions, however these phrases should not the unique means for figuring out such statements. These statements should not ensures of efficiency or outcomes, and so they contain dangers, uncertainties and assumptions. Though the Firm believes that these forward-looking statements are primarily based on cheap assumptions, there are a lot of elements that would have an effect on the Firm’s outcomes of operations and liquidity and will trigger precise outcomes, efficiency or achievements to vary materially from these expressed in, or implied by, the Firm’s forward-looking statements.

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The Firm cautions that the dangers, uncertainties and different elements that would trigger its precise outcomes to vary materially from these expressed in, or implied by, the forward-looking statements embrace, with out limitation: the influence of the macro-economic surroundings in each the U.S. and internationally on our enterprise and expectations relating to development of the business; uncertainties arising from world occasions (together with the Russia-Ukraine and Israel-Hamas conflicts), pure disasters or pandemics, and their influence on materials costs; the results of strategic investments on our operations, together with our efforts to develop our world market share and actions taken to extend gross sales development; the power to develop and efficiently launch new merchandise; labor prices and different employment-related prices; lack of suppliers and disruptions within the provide of uncooked supplies; the Firm’s skill to proceed as a going concern; the Firm’s skill to boost extra capital when wanted and its liquidity; uncertainties across the Firm’s skill to fulfill funding circumstances below its financing preparations and entry to capital thereunder; the potential acceleration of the maturity at any time of the loans below the Firm’s uncommitted senior secured revolving credit score facility by way of the train by Normal Chartered Financial institution of its demand proper; the influence of rising rates of interest; adjustments in financial circumstances, together with inflationary traits within the worth of uncooked supplies; our reliance on info expertise and the related threat involving potential safety lapses and/or cyber-attacks; the power of the Firm to precisely forecast gross sales, and the extent to which gross sales lead to recorded revenues; adjustments in buyer demand for the Firm’s merchandise; volatility in oil and fuel costs; the influence of U.S. tariffs on imports, the influence of provide chain interruptions and uncooked materials shortages, together with compliance disruptions such because the UFLPA delaying items from China; the potential influence of upper guarantee prices and the Firm’s skill to mitigate such prices; any delays and challenges in recruiting and retaining key workers in line with the Firm’s plans; any unfavorable impacts from delisting of the Firm’s frequent inventory par worth $0.001 from the NASDAQ Inventory Market and any delays and challenges in acquiring a re-listing on a inventory change; and the dangers and uncertainties described in stories filed by the Firm with the SEC, together with with out limitation its Annual Report on Type 10-Okay for the fiscal 12 months ended December 31, 2023 and the Firm’s subsequent filings with the SEC.

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The Firm’s forward-looking statements are offered as of the date hereof. Besides as required by regulation, the Firm expressly disclaims any intention or obligation to revise or replace any forward-looking statements, whether or not on account of new info, future occasions or in any other case.

Outcomes of operations for the three and 6 months ended June 30, 2024, in contrast with the three and 6 months ended June 30, 2023 (UNAUDITED):

(in hundreds, besides per share quantities)	For the Three Months Ended June 30,											For the Six Months Ended June 30,
	2024			2023			Change			% Change		2024			2023			Change			% Change
Internet gross sales (from associated events $253 and $1,000 for the three months ended June 30, 2024 and June 30, 2023, respectively, $453 and $2,100 for the six months ended June 30, 2024 and June 30, 2023, respectively)	$	110,586		$	121,865		$	(11,279	)	(9	)%	$	205,826		$	238,334		$	(32,508	)	(14	)%
Price of gross sales (from associated events $176 and $600 for the three months ended June 30, 2024 and June 30, 2023, respectively, and $329 and $1,500 for the six months ended June 30, 2024 and June 30, 2023, respectively)		75,398			94,911			(19,513	)	(21	)%		144,882			187,911			(43,029	)	(23	)%
Gross revenue		35,188			26,954			8,234		31	%		60,944			50,423			10,521		21	%
Gross margin %		31.8	%		22.1	%		9.7	%				29.6	%		21.2	%		8.5	%
Working bills:
Analysis and improvement bills		4,959			4,662			297		6	%		10,156			9,266			890		10	%
Analysis and improvement bills as a % of gross sales		4.5	%		3.8	%		0.7	%				4.9	%		3.9	%		1.0	%
Promoting, common and administrative bills		4,520			10,550			(6,030	)	(57	)%		14,052			20,455			(6,403	)	(31	)%
Promoting, common and administrative bills as a % of gross sales		4.1	%		8.7	%	(4.6)%						6.8	%		8.6	%	(1.8)%
Amortization of intangible property		365			437			(72	)	(16	)%		730			873			(143	)	(16	)%
Complete working bills		9,844			15,649			(5,805	)	(37	)%		24,938			30,594			(5,656	)	(18	)%
Working revenue		25,344			11,305			14,039		124	%		36,006			19,829			16,177		82	%
Curiosity expense (from associated events $2,216 and $1,816 for the three months ended June 30, 2024 and 2023, respectively, and 4,438 and three,799 for the six months ended June 30, 2024 and June 30, 2023, respectively)		2,909			4,645			(1,736	)	(37	)%		6,255			9,310			(3,055	)	(33	)%
Revenue earlier than revenue taxes		22,435			6,660			15,775		NM			29,751			10,519			19,232		183	%
Revenue tax expense		895			243			652		NM			1,096			378			718		190	%
Internet revenue	$	21,540		$	6,417		$	15,123		236	%	$	28,655		$	10,141		$	18,514		183	%

Earnings per frequent share:
Primary	$	0.94		$	0.28		$	0.66		NM		$	1.25		$	0.44		$	0.81		184	%
Diluted	$	0.94		$	0.28		$	0.66		NM		$	1.25		$	0.44		$	0.81		184	%

Non-GAAP Monetary Measures:
Adjusted internet revenue *	$	16,559		$	6,357		$	10,202		160	%	$	23,600		$	10,168		$	13,432		132	%
Adjusted internet revenue per share – diluted *	$	0.72		$	0.28		$	0.44		157	%	$	1.04		$	0.44		$	0.60		136	%
EBITDA *	$	26,662		$	12,707		$	13,955		110	%	$	38,641		$	22,677		$	15,964		70	%
Adjusted EBITDA *	$	21,681		$	12,647		$	9,034		71	%	$	33,586		$	22,704		$	10,882		48	%

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NM Not significant
* See reconciliation of non-GAAP monetary measures to GAAP outcomes under

POWER SOLUTIONS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

(in hundreds, besides par values)	As of June 30, 2024 (unaudited)			As of December 31, 2023
ASSETS
Present property:
Money and money equivalents	$	28,801		$	22,758
Restricted money		3,191			3,836
Accounts receivable, internet of allowances of $5,367 and $5,975 as of June 30, 2024 and December 31, 2023, respectively; (from associated events $818 and $777 as of June 30, 2024 and December 31, 2023, respectively)		64,260			66,979
Revenue tax receivable		293			550
Inventories, internet		93,446			84,947
Pay as you go bills and different present property		41,613			26,312
Complete present property		231,604			205,382
Property, plant and gear, internet		14,625			14,928
Proper-of-use property, internet		25,343			27,145
Intangible property, internet		3,184			3,914
Goodwill		29,835			29,835
Different noncurrent property		2,971			3,099
TOTAL ASSETS	$	307,562		$	284,303

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Present liabilities:
Accounts payable (to associated events $25,500 and $24,496 as of June 30, 2024 and December 31, 2023, respectively)	$	66,945		$	67,355
Present maturities of long-term debt		96			139
Revolving line of credit score		40,000			50,000
Finance lease legal responsibility, present		77			76
Working lease legal responsibility, present		4,246			3,912
Different short-term financing (from associated events $94,820 as of each June 30, 2024 and December 31, 2023)		94,820			94,820
Different accrued liabilities (to associated events $2,216 and $1,833 as of June 30, 2024 and December 31, 2023, respectively)		37,659			31,999
Complete present liabilities		243,843			248,301
Deferred revenue taxes		1,586			1,478
Lengthy-term debt, internet of present maturities		64			90
Finance lease legal responsibility, long-term		55			94
Working lease legal responsibility, long-term		23,004			25,070
Noncurrent contract liabilities		2,042			2,401
Different noncurrent liabilities		12,203			10,786
TOTAL LIABILITIES	$	282,797		$	288,220

Commitments and Contingencies (Notice 9)

STOCKHOLDERS’ EQUITY (DEFICIT)
Most well-liked inventory – $0.001 par worth. Shares licensed: 5,000. No shares issued and excellent in any respect dates.	$	—		$	—
Frequent inventory – $0.001 par worth; 50,000 shares licensed; 23,117 shares issued; 22,975 and 22,968 shares excellent at June 30, 2024 and December 31, 2023, respectively		23			23
Further paid-in capital		157,737			157,770
Gathered deficit		(132,135	)		(160,790	)
Treasury inventory, at price, 142 and 149 shares at June 30, 2024 and December 31, 2023, respectively		(860	)		(920	)
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT)		24,765			(3,917	)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)	$	307,562		$	284,303

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See Notes to Consolidated Monetary Statements

POWER SOLUTIONS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

(in hundreds)	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2024			2023			2024			2023
Money offered by working actions
Internet revenue	$	21,540		$	6,417		$	28,655		$	10,141
Changes to reconcile internet revenue to internet money offered by working actions:
Amortization of intangible property		365			437			730			873
Depreciation		953			965			1,905			1,975
Inventory-based compensation expense		22			37			48			106
Amortization of financing charges		29			245			273			694
Deferred revenue taxes		54			26			108			87
(Credit score) for losses in accounts receivable		(109	)		(4,114	)		(608	)		(3,704	)
Improve in allowance for stock obsolescence		405			914			1,351			1,798
Different changes, internet		51			(11	)		51			(8	)
Modifications in working property and liabilities:
Accounts receivable		(14,860	)		8,995			3,327			15,402
Inventories		(5,052	)		18,140			(9,850	)		5,547
Pay as you go bills, right-of-use property and different property		(6,190	)		1,088			(12,388	)		510
Accounts payable		(5,883	)		(8,872	)		(538	)		(5,433	)
Revenue taxes receivable		119			—			257			—
Accrued bills		8,986			(2,220	)		5,458			(1,754	)
Different noncurrent liabilities		1,104			(474	)		(1,615	)		340
Internet money offered by working actions		1,534			21,573			17,164			26,574
Money utilized in investing actions
Capital expenditures		(712	)		(642	)		(1,527	)		(1,254	)
Internet money utilized in investing actions		(712	)		(642	)		(1,527	)		(1,254	)
Money utilized in financing actions
Compensation of long-term debt and lease liabilities		(51	)		(47	)		(102	)		(100	)
Compensation of short-term financings		(5,000	)		(20,000	)		(10,000	)		(20,594	)
Funds of deferred financing prices		13			2			(117	)		(984	)
Tax profit from train of inventory primarily based compensation		(20	)		—			(20	)		—
Internet money utilized in financing actions		(5,058	)		(20,045	)		(10,239	)		(21,678	)
Internet enhance in money, money equivalents, and restricted money		(4,236	)		886			5,398			3,642
Money, money equivalents, and restricted money at starting of the interval		36,228			30,656			26,594			27,900
Money, money equivalents, and restricted money at finish of the interval	$	31,992		$	31,542		$	31,992		$	31,542

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Non-GAAP Monetary Measures

Along with the outcomes offered in accordance with accounting rules typically accepted in the US (“U.S. GAAP”) above, this press launch additionally contains non-GAAP (adjusted) monetary measures. Non-GAAP monetary measures present perception into chosen monetary info and must be evaluated within the context during which they’re offered. These non-GAAP monetary measures have limitations as analytical instruments and shouldn’t be thought-about in isolation from, or as an alternative to, monetary info offered in compliance with U.S. GAAP, and non-GAAP monetary measures as reported by the Firm might not be akin to equally titled quantities reported by different firms. The non-GAAP monetary measures must be thought-about together with the consolidated monetary statements, together with the associated notes, and Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations throughout the Firm’s Type 10-Q for the quarter ended June 30, 2024. Administration doesn’t use these non-GAAP monetary measures for any function aside from the explanations acknowledged under.

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Non-GAAP Monetary Measure	Comparable GAAP Monetary Measure
Adjusted internet revenue	Internet revenue
Adjusted internet revenue per share – diluted	Internet revenue per share – diluted
EBITDA	Internet revenue
Adjusted EBITDA	Internet revenue

The Firm believes that Adjusted internet revenue, Adjusted internet revenue per share – diluted, EBITDA, and Adjusted EBITDA present related and helpful info, which is extensively utilized by analysts, buyers and opponents in its business in addition to by the Firm’s administration in assessing the efficiency of the Firm. Adjusted internet revenue is outlined as internet revenue as adjusted for sure gadgets that the Firm believes should not indicative of its ongoing working efficiency. Adjusted internet revenue per share – diluted is a measure of the Firm’s diluted earnings per frequent share adjusted for the influence of particular gadgets. EBITDA offers the Firm with an understanding of earnings earlier than the influence of investing and financing prices and revenue taxes. Adjusted EBITDA additional excludes the results of different non-cash prices and sure different gadgets that don’t replicate the peculiar earnings of the Firm’s operations.

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Adjusted internet revenue, Adjusted internet revenue per share – diluted, EBITDA, and Adjusted EBITDA are utilized by administration for numerous functions, together with as a measure of efficiency of the Firm’s operations and as a foundation for strategic planning and forecasting. Adjusted internet revenue, Adjusted internet revenue per share – diluted, and Adjusted EBITDA could also be helpful to an investor as a result of these measures are extensively used to judge firms’ working efficiency with out regard to gadgets excluded from the calculation of such measures, which might fluctuate considerably from firm to firm relying on the accounting strategies, the ebook worth of property, the capital construction and the strategy by which the property have been acquired, amongst different elements. They aren’t, nevertheless, supposed as various measures of working outcomes or money movement from operations as decided in accordance with U.S. GAAP.

The next desk presents a reconciliation from Internet revenue to Adjusted internet revenue for the three and 6 months ended June 30, 2024 and 2023 (UNAUDITED):

(in hundreds)	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2024			2023			2024			2023
Internet revenue	$	21,540		$	6,417		$	28,655		$	10,141
Inventory-based compensation ¹		22			37			48			106
Different authorized issues ²		(5,003	)		3			(5,103	)		21
Insurance coverage proceeds ³		—			(100	)		—			(100	)
Adjusted internet revenue	$	16,559		$	6,357		$	23,600		$	10,168

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The next desk presents a reconciliation from Internet revenue per share – diluted to Adjusted internet revenue per share – diluted for the three and 6 months ended June 30, 2024 and 2023 (UNAUDITED):

	For the Three Months Ended June 30,					For the Six Months Ended June 30,
	2024			2023		2024			2023
Internet revenue per share – primary	$	0.94		$	0.28	$	1.25		$	0.44
Different authorized issues²		(0.22	)		—		(0.21	)		—
Adjusted internet revenue per share – diluted	$	0.72		$	0.28	$	1.04		$	0.44

Diluted shares (in hundreds)		22,993			22,966		22,983			22,967

The next desk presents a reconciliation from Internet revenue to EBITDA and Adjusted EBITDA for the three and 6 months ended June 30, 2024 and 2023 (UNAUDITED):

(in hundreds)	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2024			2023			2024			2023
Internet revenue	$	21,540		$	6,417		$	28,655		$	10,141
Curiosity expense		2,909			4,645			6,255			9,310
Revenue tax expense		895			243			1,096			378
Depreciation		953			965			1,905			1,975
Amortization of intangible property		365			437			730			873
EBITDA		26,662			12,707			38,641			22,677
Inventory-based compensation ¹		22			37			48			106
Different authorized issues ²		(5,003	)		3			(5,103	)		21
Insurance coverage proceeds ³		—			(100	)		—			(100	)
Adjusted EBITDA	$	21,681		$	12,647		$	33,586		$	22,704

Quantities replicate non-cash stock-based compensation expense and haven’t any materials influence on the Adjusted internet revenue per share – diluted for the three and 6 months ended June 30, 2024 and 2023.
Quantities embrace authorized settlements for the three and 6 months ended June 30, 2024 and 2023.
Quantities embrace insurance coverage recoveries associated to a previous 12 months incident and haven’t any materials influence on the Adjusted internet revenue per share – diluted for the three and 6 months ended June 30, 2024 and 2023.