Power Solutions International, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Power Solutions International, Inc. has filed its 2023 10-K report detailing financial performance and risks.</b>

AI Summary

POWER SOLUTIONS INTERNATIONAL, INC. (PSIX) filed a Annual Report (10-K) with the SEC on March 14, 2024. Power Solutions International, Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The company is incorporated in Illinois and its fiscal year ends on December 31st. The filing includes financial data for the fiscal years 2023, 2022, and 2021. Key financial statement items such as Common Stock, Additional Paid-In Capital, Retained Earnings, and Treasury Stock are detailed for multiple year-ends. Information regarding customer and supplier concentration risk is presented for specific customers (A, B) and suppliers (A, B, C).

Why It Matters

For investors and stakeholders tracking POWER SOLUTIONS INTERNATIONAL, INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of the company's financial health and operational risks for the fiscal year 2023, crucial for investors to assess performance and future outlook. The detailed breakdown of financial statements and risk factors, including customer and supplier concentration, offers insights into potential vulnerabilities and strategic dependencies.

Risk Assessment

Risk Level: medium — POWER SOLUTIONS INTERNATIONAL, INC. shows moderate risk based on this filing. The company faces medium risk due to disclosed customer and supplier concentration, indicating potential revenue and cost instability if key partners are lost.

Analyst Insight

Investors should analyze the specific customer and supplier concentration data to understand potential impacts on revenue and cost of goods sold.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed Period of Report)
• 2024-03-14 — Filing Date (Filed as of Date)
• 101 — Document Count (Public Document Count)
• 3510 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• POWER SOLUTIONS INTERNATIONAL, INC. (company) — Filer name
• 201 MITTEL DRIVE (address) — Business and Mail Address
• WOOD DALE (location) — Business and Mail Address City
• IL (location) — Business and Mail Address State
• 60191 (postal_code) — Business and Mail Address Zip
• 630-350-9400 (phone_number) — Business Phone
• FORMAT INC (company) — Former Company Name
• Customer A (company) — Customer concentration risk

FAQ

Risk Factors

• Customer Concentration Risk [medium — market]: The company faces risk due to significant revenue and accounts receivable concentration with specific customers, such as Customer A and Customer B.
• Supplier Concentration Risk [medium — market]: The company is exposed to risk from reliance on key suppliers, including Supplier A, Supplier B, and Supplier C, for its cost of goods.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-14: Filing Date — Date the 10-K report was officially filed with the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This filing provides the primary source of detailed financial and operational information for the fiscal year.)

SIC Code

Standard Industrial Classification code used to classify industries. (Indicates the primary industry in which the company operates, providing context for its business activities.)

Key Financial Figures

• $0.001 — g) of the Act: Common Stock, par value $0.001 per share Indicate by check mark if t
• $64.1 million — trant as of such date was approximately $64.1 million). Shares of the registrant's Common Sto
• $60.0 million — the terms of the SPA, Weichai invested $60.0 million in the Company (the "Weichai Transactio
• $0.7 million — and African markets, which resulted in $0.7 million of sales during the year ended December

Filing Documents

• psix-20231231.htm (10-K) — 1651KB
• exhibit1035ltip.htm (EX-10.35) — 26KB
• exhibit211-psiandconsolida.htm (EX-21.1) — 7KB
• exhibit231-bdoconsent.htm (EX-23.1) — 3KB
• exhibit311-ceocertificatio.htm (EX-31.1) — 10KB
• exhibit312-cfocertificatio.htm (EX-31.2) — 10KB
• exhibit321-ceocertificatio.htm (EX-32.1) — 7KB
• exhibit322-cfocertificatio.htm (EX-32.2) — 6KB
• psix-20231231_g1.jpg (GRAPHIC) — 21KB
• 0001137091-24-000007.txt (&nbsp;) — 9568KB
• psix-20231231.xsd (EX-101.SCH) — 59KB
• psix-20231231_cal.xml (EX-101.CAL) — 120KB
• psix-20231231_def.xml (EX-101.DEF) — 255KB
• psix-20231231_lab.xml (EX-101.LAB) — 811KB
• psix-20231231_pre.xml (EX-101.PRE) — 574KB
• psix-20231231_htm.xml (XML) — 1474KB

Forward-Looking Statements 4

Forward-Looking Statements 4

Risk Factors 13

Item 1A. Risk Factors 13

Unresolved Staff Comments 23

Item 1B. Unresolved Staff Comments 23

Cybersecurity 23

Item 1C. Cybersecurity 23

Properties 25

Item 2. Properties 25

Legal Proceedings 25

Item 3. Legal Proceedings 25

Mine Safety Disclosures 25

Item 4. Mine Safety Disclosures 25 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 26

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 26

Management's Discussion and Analysis of Financial Condition and Results of Operations 26

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 26

Quantitative and Qualitative Disclosures about Market Risk 34

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 34

Financial Statements and Supplementary Data 35

Item 8. Financial Statements and Supplementary Data 35

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 66

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 66

Controls and Procedures 66

Item 9A. Controls and Procedures 66

Other Information 66

Item 9B. Other Information 66

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 81

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 81 PART III

Directors, Executive Officers and Corporate Governance 68

Item 10. Directors, Executive Officers and Corporate Governance 68

Executive Compensation 68

Item 11. Executive Compensation 68

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 68

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 68

Certain Relationships and Related Transactions, and Director Independence 68

Item 13. Certain Relationships and Related Transactions, and Director Independence 68

Principal Accounting Fees and Services 68

Item 14. Principal Accounting Fees and Services 68 PART IV

Exhibits, Financial Statement Schedules 69

Item 15. Exhibits, Financial Statement Schedules 69

Form 10-K Summary 71

Item 16. Form 10-K Summary 71 Signatures 72

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Certain statements contained in this Annual Report on Form 10-K ("2023 Annual Report") that are not historical facts are intended to constitute "forward-looking statements" entitled to the safe-harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements may involve risks and uncertainties. These statements often include words such as "anticipate," "believe," "budgeted," "contemplate," "estimate," "expect," "forecast," "guidance," "may," "outlook," "plan," "projection," "should," "target," "will," "would" or similar expressions, but these words are not the exclusive means for identifying such statements. These forward-looking statements include statements regarding Power Solutions International, Inc.'s, a Delaware corporation ("Power Solutions," "PSI" or the "Company"), projected sales, potential profitability and liquidity, strategic initiatives, future business strategies, warranty mitigation efforts and market opportunities, improvements in its business, improvement of product margins, and product market conditions and trends. These statements are not guarantees of performance or results, and they involve risks, uncertainties and assumptions. Although the Company believes that these forward-looking statements are based on reasonable assumptions, there are many factors that could affect the Company's results of operations and liquidity and could cause actual results, performance or achievements to differ materially from those expressed in, or implied by, the Company's forward-looking statements. The Company cautions that the risks, uncertainties and other factors that could cause its actual results to differ materially from those expressed in, or implied by, the forward-looking statements include, without limitation: the factors discussed in this report set forth in Item 1A. Risk Factors; the impact of the macro-economic environment in both the U.S. and internationally on ou

Business

Item 1. Business. General Business Overview Power Solutions International, Inc., incorporated under the laws of the state of Delaware in 2011, designs, engineers, manufactures, markets and sells a broad range of advanced, emission-certified engines and power systems that are powered by a wide variety of clean, alternative fuels, including natural gas, propane, and biofuels, as well as gasoline and diesel options, within the power systems, industrial and transportation end markets. The Company manages the business as a single reportable segment. The Company's products are primarily used by global original equipment manufacturers ("OEMs") and end-user customers across a wide range of applications and equipment that includes standby and prime power generation, demand response, microgrid, combined heat and power, arbor equipment, material handling (including forklifts), agricultural and turf, construction, pumps and irrigation, compressors, utility vehicles, light- and medium-duty vocational trucks, and school and transit buses. The Company provides highly engineered, comprehensive solutions designed to meet specific customer application requirements and technical specifications, including those imposed by environmental regulatory bodies, including the U.S. Environmental Protection Agency ("EPA"), the California Air Resources Board ("CARB") and the People's Republic of China's Ministry of Ecology and Environment ("MEE," formerly the Ministry of Environmental Protection), as well as regulatory bodies within the European Union ("EU"). The Company's products include both sourced and internally designed and manufactured engines that are engineered and integrated with associated components. These comprehensive power systems are tested and validated to meet quality, safety, durability and global environmental standards and regulations. Through advanced research and development ("R&D") and engineering capabilities, the Company is able to provide its customers with highly

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View this 10-K filing on SEC EDGAR