Good day, ladies and gentlemen, and welcome to the Pioneer Power Solutions, Inc. third quarter 2022 earnings results call. Today's conference is being recorded. At this time, I'd like to turn the conversation to Brett Maas. Please go ahead.
Thank you, and welcome. The call today will be hosted by Nathan Mazurek, Chairman and Chief Executive Officer, and Walter Michalec, Chief Financial Officer. Following this discussion, there'll be a Q&A session open to participants on the call. We appreciate the opportunity to review the third quarter 2022 financial results, as well as discuss recent business highlights. Before we get started, let me remind you this call is being recorded and webcast. During this call, management will make forward-looking statements. These statements are based on the current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to the cautionary text regarding forward-looking statements contained in the earnings release issued earlier today and in the posted version of these prepared remarks, both of which apply to the content of the call.
I'd now like to turn the call over to Nathan Mazurek, Chairman and CEO. Nathan, please go ahead.
Thank you, Brett. Good afternoon, and thank you all for joining us today for our conference call. This was an important quarter for us with continued strong orders and significant revenue growth, and we believe that this sequential progress will accelerate in the fourth quarter and continue into 2023. Based on our backlog and confirmed delivery schedules, we are confident that projected fourth quarter revenue will enable us to meet our full year target of 50% year-over-year revenue growth. This guidance obviously signals that we expect to end the year on a very strong revenue note, and indeed we fully expect that momentum to continue into 2023. Significantly, in the third quarter, we also expanded our gross margins, as evidenced by the 130 basis point increase in gross margins as compared to the third quarter last year.
On an operational level, it's important to note that excluding the ongoing investments to support our new strategic initiatives and associated overhead, our divisions delivered more than $200,000 in positive EBITDA contribution margins. From a sales and marketing perspective, demand for both our E-Bloc and e-Boost product suites continues to accelerate. These two new solutions are directly addressing application issues and power challenges in the distributed energy generation and EV charging verticals. Both of these market segments are enjoying strong secular tailwinds, and our solutions directly address the opportunities these catalysts create. Let me start with the distributed generation market and E-Bloc. Distributed generation is the concept of integrating multiple energy inputs, including zero-emission options like solar, wind, battery, and/or hydrogen, and traditional sources such as direct utility connections.
E-Bloc allows the user to effectively manage, control, and protect all these inputs, facilitating peak shaving, peak skimming, and general resilience. In addition, E-Bloc provides these solutions in a compact, outdoor, competitive skid-mounted package. In December of 2021, we announced a $12 million order for our E-Bloc distributed generation platform from a major big box retailer. During the second quarter, as a reminder, shipments were delayed to this customer based on the customer's receiving schedule. As expected, revenues accelerated in the third quarter, and we believe this pace will accelerate further in the fourth quarter, driving a significant portion of 2022's sales revenue. We also anticipate similar size follow-on orders from this same customer for additional stores in 2023 and beyond. Beyond this large big box retailer, additional customers and other market verticals are also deploying E-Bloc.
For example, this past July, we announced a large data center order integrating E-Bloc to efficiently control the various energy sources as part of this particular energy developer's net zero initiative. This was E-Bloc's first entry point into the data center market, and we believe it represents a very large market opportunity for us over the next several years as data center developers and owners continue to push for a more diversified resilience package and a lower carbon footprint. In fact, we expect additional orders both with the end user and with the prime contractor who brought us into this particular market.
Finally, in October, we announced that one of the largest automakers in the world awarded us a $8 million order for our E-Bloc systems as part of their cutting-edge power delivery infrastructure for a new massive manufacturing campus which will focus on their electric vehicle and battery production. Our focus now is to leverage this early success of E-Bloc and bring E-Bloc to a much wider group of energy developers and users. Our current backlog includes $13.8 million of E-Bloc orders to be delivered over the next 12-18 months, including scheduled shipments on the $12 million order from the major big box retailer, deliveries to the data center and new auto plant as well. We expect to benefit from continued E-Bloc order growth over the next several years.
Turning to our e-Boost mobile charging platform, we continue to see growing interest in our anytime, anywhere mobile EV charging solution. To review, one year ago, only one year ago, we created the e-Boost mobile charging business comprised of three delivery platforms. First, e-Boost GOAT, G-O-A-T, which stands for generator on a truck. This is a truck-mounted EV charging solution which is fully mobile and can provide high-speed charging anywhere. Second, e-Boost Mobile is a trailer-mounted or skid-mounted portable solution that provides multiple options for towing or forklift relocation and can be available at specific businesses, large sports and cultural events, and can be relocated with minimal effort and on short notice. Third, e-Boost Pod is a primarily stationary EV charging solution with as-needed mobility that can provide EV charging to multiple vehicles.
This is the ideal solution for gas stations, hotels, and other retail locations that utilize EV charging to increase customer traffic and/or retention, or as a brand differentiator. All three e-Boost platforms are designed to provide on-demand power needs in addition to the primary task of high-speed electric vehicle charging. In emergency situations such as a power outage, e-Boost can serve as a backup power source with convenient power connectors and outlets available on board. In the last year, we have booked almost $2 million of e-Boost business and delivered almost $1 million of valued product year to date. Initial adopters have been casinos, electric truck and school bus manufacturers, and electric passenger vehicle manufacturers. We are realizing our strongest sales traction with a wider group of truck and bus manufacturers, dealers, and fleet operators.
We are also actively working with electric aviation businesses, roadside assistance businesses, and logistics providers on additional e-Boost units. The need is clear. Sales of electric vehicles have significantly outpaced the charging infrastructure. Retailers, restaurants, hotels, casinos, concerts, trade shows, and other sports venues, workplaces want to move quickly to add charging solutions. During the quarter, we added new use cases, including the ability to rapidly recharge EVs as they are disembarked from ocean-going freight carriers. As more and more fleets are electrified, mobile and on-demand charging will become increasingly important, and e-Boost fills this unique niche. We fully expect e-Boost to represent dynamic growth and profits for us in 2023. Lastly, we also expect the Inflation Reduction Act to expand consumer incentives for electric vehicles and provide financial support and incentives for electric vehicle charging, renewable energy, and energy storage.
In particular, the goal of converting federal, state, and local government vehicle fleets to EVs will help grow the size and velocity of this changing landscape and create near-term demand for fixed and mobile charging. These developments will accelerate the demand for our E-Bloc and e-Boost products and services. With that, let me turn the call over to Walter, our Chief Financial Officer, to discuss our financial results.
Thank you, Nathan, and good afternoon, everyone. Third quarter revenues were $6.3 million, up 10% year-over-year. The third quarter benefited from increased sales of our E-Bloc power systems as it relates to the $12 million order from the major big box retailer. Gross profit for the third quarter of 2022 was $861,000, or 13.8% of revenues, compared to $713,000 or 12.5% of revenues for the same period in 2021. The higher margin was due to increased revenue during the third quarter, driving greater cost absorption.
Selling, general, and administrative expenses of $2.3 million were approximately 37% of revenues for the third quarter of 2022, an increase of 87% when compared to $1.2 million of selling, general, and administrative expenses in the year ago quarter. Approximately $143 thousand of the quarterly SG&A was related to non-cash stock-based compensation expense, reflecting incentive options and grants issued to employees and consultants during the year. SG&A also includes $781 thousand in incremental investments in sales, marketing, personnel, and product development costs for our E-Bloc and e-Boost solutions. These ongoing investments played a key role in the higher SG&A expense. This is intentional and targeted spending designed to drive demand for these new solutions.
We expect investments in 2022 to continue through 2023 as we build and scale these two new business lines as they grow. Finally, higher wage costs, including salaries and benefits, also played a role in higher SG&A expense. Operating loss for the third quarter of 2022 was $1.4 million, compared to an operating loss of $518 thousand in the year ago quarter. Net loss for the third quarter of 2022 was $1.3 million, or a net loss per basic and diluted share of $0.13, compared to a net loss of $434 thousand or -$0.05 per share during the third quarter of 2021.
It's important to note that most of our losses during the third quarter were due to ongoing investments in our E-Bloc and e-Boost solutions.
Non-cash stock-based compensation and corporate expenses. Put another way, excluding these investments in corporate expenses, our operating business units generated positive EBITDA during the third quarter. Turning to the balance sheet and statement of cash flows. We had cash on hand of $7.2 million and zero debt at September 30, 2022, compared to cash and restricted cash of $11.7 million at December 31st, 2021. This represents cash per share of approximately $0.75 at September 30th, 2022. As a reminder, we expect to receive approximately $6.2 million in cash by the end of this year from the maturity of two notes related to the sale of our transformer business. Accordingly, we are confident that we are sufficiently capitalized to address our near-term investments.
As Nathan said, we view 2022 as a year of growth and margin expansion. Based primarily on our backlog as well as the significant and accelerating demand for our new solutions, we believe we are on track to grow full year revenue by at least 50% in 2022 when compared to 2021. Further, we expect meaningful margin expansion. This concludes my remarks. I now turn the call back to the operator for any questions.
Thank you. Ladies and gentlemen, if you'd like to ask a question, you may do so by pressing star one on your telephone keypad. Star one for questions. Please make sure the mute function on your phone is turned off so the signal can be read by our equipment. Star one for questions. We'll pause a moment to assemble the phone queue. We'll take our first question from Amit Dayal with H.C. Wainwright. Please go ahead.
Thank you. Good afternoon, everyone. Can you guys hear me okay?
Good afternoon, Amit. Yes, we can hear you clearly.
Okay. Thank you, Nathan. You know, congrats on the execution so far. You know, just curious about the fourth quarter coming in maybe a little higher than the rest of the year. Is it just supply chain issues or anything else that is causing, you know, 4Q to be a little bit bigger, I guess, than, you know, the
It was really on that large order. The customer they were not ready to receive all the units that they had contracted for. You know, now we're, you know, we're in the middle of the fourth quarter now in real terms, and, you know, that's been the big turnaround. You know, they're receiving every week. That gives us the confidence for the fourth quarter, and that's why it's gonna look, you know, too outsized, frankly, as compared to the rest of the year.
Okay. Understood. Then you commented, I don't know if I caught this correctly, a similar size follow on from this customer for 2023. Is that 62 additional E-Bloc going to this retail customer?
That's what they're talking about these kinds of chunks. You know, we wouldn't, you know, we would announce it if we actually got, you know, a hard PO for it. You know, we only announce hard POs, and, you know, that's the only thing that's in the backlog for us. You know, hard POs that are non-cancelable. We haven't gotten that yet, but that's what they're discussing. You know, from the beginning, they were talking about a targeted 400 stores. The end of this year or maybe a little bit dip into next year and into January, a few more units, we'll complete the first 62. That's ultimately their plan to convert all 400. That'll go on for a while, hopefully.
Okay. Understood. This backlog you have currently, Nathan, is this to be filled in the next sort of 12 months?
Yes. We typically, you know, for us, backlog, although given how busy everything is, maybe we should expand the scope. Typically for us, backlog is non-cancelable POs that we expect to deliver within 12 months.
Okay. Understood. Just one last one from me. With respect to the IRA, are you having conversations that are stemming from incentives in the IRA or, you know, is that something that, you haven't seen, you know, materialize yet?
It's definitely out there, you know, different parts of it. You know, of course, there's the credit part as far as projects go, although it's not that high per project. But the incentives, you know, at different parts, like for example, you know, most specifically for us is the school bus incentive. You know, that's a serious financial impact, and that really does accelerate for the school bus manufacturers ultimately, but for the school districts and so forth, that accelerates the adoption of electric school buses. That's all good for us.
Okay. That's all I have. Thank you so much.
You're very welcome, Amit.
As a reminder, star one for questions or comments, please. Star one. We'll pause a moment to assemble the queue. Star one for questions or comments, please. We'll take our next question from Anthony Akuri, Private Investor. Please go ahead.
Hi. I was wondering about the used market. I guess these are still new, so there's no used market. Did you forecast if or when there would be a used market and what impact that would have on sales in the future? Or is it too early?
You're talking e-Boost?
Yeah.
Yeah, it's way too early. You know, we'd be the right address for it. We're the only solution like this in the market. You know, we'll see what happens. Right now, this is completely nascent, early stage adoption. There really is no used market yet.
Great. Thanks.
You're welcome.
Star one for questions. We'll pause a moment to assemble the queue. It appears we have no further questions in the queue. I would like to turn the conference back to your presenters for any additional or closing remarks.
Okay. Thank you all for your time and support. We look forward to updating you again on our next call. Thank you.
Ladies and gentlemen, this concludes today's conference. We appreciate your participation. You may now disconnect.