EX-99.1 2 h67620exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
     
(POWELL LOGO)   Press Release
         
 
  Contacts:   Don R. Madison, CFO
 
      Powell Industries, Inc.
FOR IMMEDIATE RELEASE
      713-947-4422
 
        
 
      Ken Dennard / ksdennard@drg-e.com
 
      Karen Roan / kcroan@drg-e.com
 
      DRG&E / 713-529-6600
POWELL INDUSTRIES ANNOUNCES FISCAL 2009
THIRD QUARTER RESULTS
HOUSTON — AUGUST 4, 2009 — Powell Industries, Inc. (NASDAQ: POWL), a leading manufacturer of equipment and systems for the management and control of electrical energy and other critical processes, today announced results for the fiscal 2009 third quarter ended June 30, 2009.
     Revenues for the third quarter of fiscal 2009 were $165.9 million compared to revenues of $164.1 million for the third quarter of fiscal 2008. Net income for the third quarter was $13.1 million, or $1.14 per diluted share, compared to net income of $7.9 million, or $0.69 per diluted share, in the third quarter of fiscal 2008. Fiscal third quarter revenues and earnings benefited by $3.5 million and approximately $0.16 per diluted share, respectively, due to a mediated settlement related to a previously completed contract that had been in dispute for several years.
     Patrick L. McDonald, President and Chief Executive Officer, stated, “We are pleased with our third quarter operating results, especially our margins after factoring out the mediated settlement. We continued to benefit from improvements in our operational processes and our project management initiatives during the quarter.
     “The current economic climate continues to impact project opportunities as many of our customers are adopting a wait and see attitude because of uncertainty regarding future government policies before committing to long-term capital investments. However, we are seeing positive trends for projects in our transit business as well as our service business. In spite of the current economic uncertainty and resultant lack of visibility, we are well positioned in our markets, and long-term prospects for the Company are positive. The world will need more energy, and Powell will play a significant role, along with our customers, in facilitating its delivery to the marketplace.”

 

 

     The Company’s backlog as of June 30, 2009 was $426 million compared to $487 million as of March 31, 2009 and compared to $553 million at the end of last year’s third quarter. New orders placed during the third quarter of fiscal 2009 totaled $103 million compared to $154 million in the second quarter of fiscal 2009 and compared to $188 million in the third quarter of fiscal 2008.
YEAR-TO-DATE RESULTS
     Revenues for the first nine months of fiscal 2009 were $500.5 million compared to revenues of $471.6 million for the first nine months of fiscal 2008. Net income for the first nine months was $29.8 million, or $2.59 per diluted share, compared to net income of $17.5 million, or $1.53 per diluted share, in the comparable period of fiscal 2008. Year-to-date revenues and earnings benefited by $3.5 million and approximately $0.16 per diluted share, respectively, due to a mediated settlement related to a previously completed contract that had been in dispute for several years.
OUTLOOK
     The following statements are based on the current expectations of the Company. These statements are forward-looking, and actual results may differ materially as further elaborated in the last paragraph below.
     Based on its backlog and current business conditions, Powell Industries now expects full year fiscal 2009 revenues to range between $650 million and $665 million and full year fiscal 2009 earnings to range between $3.15 and $3.30 per diluted share.
CONFERENCE CALL
     Powell Industries has scheduled a conference call for Tuesday, August 4, 2009 at 11:00 a.m. eastern time. To participate in the conference call, dial 480-629-9725 at least 10 minutes before the call begins and ask for the Powell Industries conference call. A replay of the call will be available approximately two hours after the live broadcast ends and will be accessible until August 11, 2009. To access the replay, dial 303-590-3030 using a passcode of 4112147#.
     Investors, analysts and the general public will also have the opportunity to listen to the conference call over the Internet by visiting http://www.powellind.com. To listen to the live call on the web, please visit the website at least fifteen minutes before the call begins to register, download and install any necessary audio software. For those who cannot listen to the live webcast, an archive will be available shortly after the call and will remain available for approximately 90 days at http://www.powellind.com.

 

 

     Powell Industries, Inc., headquartered in Houston, designs, manufactures and packages systems and equipment for the control, distribution and management of electrical energy and other dynamic processes. Powell provides products and services to large industrial customers such as utilities, oil and gas producers, refineries, petrochemical plants, pulp and paper producers, mining operations, commuter railways and other vehicular transportation facilities. For more information, please visit www.powellind.com.
Any forward-looking statements in the preceding paragraphs of this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties in that actual results may differ materially from those projected in the forward-looking statements. In the course of operations, we are subject to certain risk factors, competition and competitive pressures, sensitivity to general economic and industrial conditions, international political and economic risks, availability and price of raw materials and execution of business strategy. For further information, please refer to the Company’s filings with the Securities and Exchange Commission, copies of which are available from the Company without charge.

 

 

POWELL INDUSTRIES, INC. & SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                                 
    Three Months Ended     Nine Months Ended  
    June 30, 2009     June 30, 2008     June 30, 2009     June 30, 2008  
(In thousands, except per share data)   (Unaudited)     (Unaudited)  
 
                                
Revenues
   $ 165,942     $ 164,123     $ 500,530     $ 471,577  
 
                                
Cost of goods sold
     124,835       129,121       391,077       379,188  
 
                        
 
                                
Gross profit
     41,107       35,002       109,453       92,389  
 
                                
Selling, general and administrative expenses
     20,378       21,774       62,262       62,846  
 
                        
 
                                
Income before interest, income taxes and minority interest
     20,729       13,228       47,191       29,543  
 
                                
Interest expense
     196       697       930       2,333  
 
                                
Interest income
     (33 )     (59 )     (93 )     (260 )
 
                        
 
                                
Income before income taxes and minority interest
     20,566       12,590       46,354       27,470  
 
                                
Income tax provision
     7,219       4,753       16,271       10,118  
 
                                
Minority interest in net income (loss)
     209       (56 )     240       (156 )
 
                        
 
                                
Net income
   $ 13,138     $ 7,893     $ 29,843     $ 17,508  
 
                        
 
                                
Net earnings per common share:
                                
 
                                
Basic
   $ 1.15     $ 0.70     $ 2.61     $ 1.56  
 
                        
Diluted
   $ 1.14     $ 0.69     $ 2.59     $ 1.53  
 
                        
 
                                
Weighted average shares:
                                
 
                                
Basic
     11,420       11,310       11,416       11,233  
 
                        
Diluted
     11,521       11,470       11,501       11,416  
 
                        
 
                                
SELECTED FINANCIAL DATA:
                                
 
                                
Capital Expenditures
   $ 3,431     $ 439     $ 6,412     $ 1,969  
 
                        
 
                                
Depreciation and amortization
   $ 2,702     $ 2,983     $ 8,204     $ 8,935  
 
                        

 

 

POWELL INDUSTRIES, INC. & SUBSIDIARIES
 
CONDENSED CONSOLIDATED BALANCE SHEETS
                 
    June 30,     September 30,  
    2009     2008  
(In thousands)   (Unaudited)          
 
                
Assets:
                
 
                
Current assets
   $ 325,693     $ 303,435  
 
                
Property, plant and equipment (net)
     61,576       61,546  
 
                
Other assets
     29,394       32,653  
 
            
 
                
Total assets
   $ 416,663     $ 397,634  
 
            
 
                
Liabilities & stockholders’ equity:
                
 
                
Current liabilities
   $ 167,238     $ 152,736  
 
                
Long-term debt and capital lease obligations, net of current maturities
     8,269       33,944  
 
                
Deferred and other long-term liabilities
     3,674       3,832  
 
                
Stockholders’ equity and minority interest
     237,482       207,122  
 
            
 
                
Total liabilities and stockholders’ equity
   $ 416,663     $ 397,634  
 
            

 

 

POWELL INDUSTRIES, INC. & SUBSIDIARIES
 
BUSINESS SEGMENTS
                                 
    Three Months Ended     Nine Months Ended  
    June 30, 2009     June 30, 2008     June 30, 2009     June 30, 2008  
(In thousands)   (Unaudited)     (Unaudited)  
 
                                
Revenues:
                                
Electrical Power Products
   $ 156,077     $ 156,516     $ 478,278     $ 451,699  
Process Control Systems
     9,865       7,607       22,252       19,878  
 
                        
 
                                
Total revenues
   $ 165,942     $ 164,123     $ 500,530     $ 471,577  
 
                        
 
                                
Income before income taxes and minority interest:
                                
 
                                
Electrical Power Products
   $ 17,731     $ 11,244     $ 42,993     $ 25,283  
Process Control Systems
     2,835       1,346       3,361       2,187  
 
                        
 
                                
Total income before income taxes and minority interest
   $ 20,566     $ 12,590     $ 46,354     $ 27,470  
 
                        
                 
    June 30,     September 30,  
    2009     2008  
(In thousands)   (Unaudited)  
Identifiable tangible assets:
                
 
                
Electrical Power Products
   $ 279,589     $ 342,105  
Process Control Systems
     6,631       8,734  
Corporate
     106,955       20,507  
 
            
 
                
Total identifiable tangible assets
   $ 393,175     $ 371,346  
 
            
 
                
Backlog:
                
 
                
Electrical Power Products
   $ 394,622     $ 493,025  
Process Control Systems
     31,108       25,535  
 
            
 
                
Total backlog
   $ 425,730     $ 518,560  
 
            
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