Headquartered in Illinois, Power Solutions International designs and manufactures engines and power systems for a wide range of commercial, industrial and agricultural vehicles and equipment. Customers have options from engine blocks and integrated fuel systems through complete power systems. Additionally, the Company produces custom engineered electric power generation systems for emergency and primary power in mobile and stationary applications.
In the year ending December 2023, the Company reported $458.97 million in total sales, providing $26.31 million in net income or $1.15 per share. While the topline was lower than the previous year, the Company was successful in building profit margins and controlling operating costs to more than double earnings. In the same year, the Company generated $70.51 million in operating cash flow, representing a sales-to-cash conversion rate of 15.36%.
We expect Power Solutions International to continue along a path of sales and earnings growth. Demand conditions have improved for the Company and management has made progress in right-sizing operations. The balance sheet is levered, but the Company is generating enough internal capital from operating cash flows to support maintenance capital investments as well as paying off debt. Cash resources on the balance sheet were $22.0 million at the end of December 2023.
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