EX-99.1 2 h72769exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
     
(POWELL LOGO)
  Press Release
         
 
  Contacts:   Don R. Madison, CFO
FOR IMMEDIATE RELEASE
      Powell Industries, Inc.
 
      713-947-4422 
 
        
 
      Ken Dennard / ksdennard@drg-e.com
 
      Karen Roan / kcroan@drg-e.com
 
      DRG&E / 713-529-6600
POWELL INDUSTRIES ANNOUNCES FISCAL 2010
SECOND QUARTER RESULTS
HOUSTON — MAY 5, 2010 — 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 2010 second quarter ending March 31, 2010.
     Revenues for the second quarter of fiscal 2010 were $142.1 million compared to revenues of $164.1 million for the second quarter of fiscal 2009. Net income for the second quarter was $9.9 million, or $0.85 per diluted share, compared to net income of $8.9 million, or $0.77 per diluted share, in the second quarter of fiscal 2009.
     Patrick L. McDonald, President and Chief Executive Officer, stated, “Our exceptional performance yielded strong results in the second quarter. We are pleased with our initiatives to strengthen project management and continue to see improvements in operational efficiency. We are excited about our recent acquisition in Canada, which has received a favorable response from both customers and employees.
     “Our marketplace remains one of uncertainty, and we believe the events of the past week in the Gulf of Mexico may make the decisions of our oil and gas customers even more difficult in the near term. Currently, we are unable to predict when the economic issues and regulatory environment will stabilize and confidence to bring about new U.S. capital infrastructure investments will return. Our focus continues to be on our customer relationships and our ability to maintain the capabilities and resources to support our customers on projects not only in the U.S. but around the world.”

 

 

     The Company’s backlog as of March 31, 2010 was $313 million compared to $342 million as of December 31, 2009 and compared to $486 million at the end of last year’s second quarter. New orders placed during the second quarter of fiscal 2010 totaled $113 million compared to $108 million in the first quarter of fiscal 2010 and compared to $154 million in the second quarter of fiscal 2009.
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 expects full year fiscal 2010 revenues to range between $550 million and $575 million and full year fiscal 2010 earnings to range between $2.10 and $2.35 per diluted share.
CONFERENCE CALL
     Powell Industries has scheduled a conference call for Wednesday, May 5, 2010 at 11:00 a.m. eastern time. To participate in the conference call, dial 480-629-9692 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 May 12, 2010. To access the replay, dial 303-590-3030 using a passcode of 4285994#.
     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     Six Months Ended  
    March 31, 2010     March 31, 2009     March 31, 2010     March 31, 2009  
(In thousands, except per share data)            
    (Unaudited)     (Unaudited)  
Revenues
   $ 142,135     $ 164,099     $ 278,051     $ 334,588  
 
                                
Cost of goods sold
     105,602       130,255       203,701       266,242  
 
                        
 
                                
Gross profit
     36,533       33,844       74,350       68,346  
 
                                
Selling, general and administrative expenses
     21,157       20,323       43,798       41,884  
 
                        
 
                                
Operating income
     15,376       13,521       30,552       26,462  
 
                                
Interest expense
     228       262       410       734  
 
                                
Interest income
     (115 )     (3 )     (157 )     (60 )
 
                        
 
                                
Income before income taxes
     15,263       13,262       30,299       25,788  
 
                                
Income tax provision
     5,378       4,655       10,669       9,052  
 
                        
 
                                
Net income
     9,885       8,607       19,630       16,736  
 
                                
Net (income) loss attributable to noncontrolling interest
     (25 )     245       (126 )     (31 )
 
                        
 
                                
Net income attributable to Powell Industries, Inc.
   $ 9,860     $ 8,852     $ 19,504     $ 16,705  
 
                        
 
                                
Earnings per share attributable to Powell Industries, Inc.:
                                
 
                                
Basic
   $ 0.86     $ 0.78     $ 1.70     $ 1.46  
 
                        
Diluted
   $ 0.85     $ 0.77     $ 1.68     $ 1.45  
 
                        
 
                                
Weighted average shares:
                                
 
                                
Basic
     11,523       11,413       11,498       11,413  
 
                        
Diluted
     11,659       11,495       11,639       11,487  
 
                        
 
                                
SELECTED FINANCIAL DATA:
                                
 
                                
Capital Expenditures
   $ 846     $ 1,016     $ 1,460     $ 2,981  
 
                        
 
                                
Depreciation and amortization
   $ 3,497     $ 2,707     $ 6,369     $ 5,502  
 
                        

 

 

POWELL INDUSTRIES, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
                 
    March 31,     September 30,  
    2010     2009  
(In thousands)   (Unaudited)          
Assets:
                
Current assets
   $ 305,471     $ 315,003  
Property, plant and equipment (net)
     66,041       61,036  
Other assets
     42,114       28,801  
 
            
Total assets
   $ 413,626     $ 404,840  
 
            
 
                
Liabilities & equity:
                
Current liabilities
   $ 121,296     $ 149,142  
Long-term debt and capital lease obligations, net of current maturities
     20,073       4,800  
Deferred and other long-term liabilities
     3,944       3,681  
Stockholders’ equity and minority interest
     268,313       247,217  
 
            
Total liabilities and equity
   $ 413,626     $ 404,840  
 
            

 

 

POWELL INDUSTRIES, INC. & SUBSIDIARIES
BUSINESS SEGMENTS
                                 
    Three Months Ended     Six Months Ended  
    March 31, 2010     March 31, 2009     March 31, 2010     March 31, 2009  
(In thousands)   (Unaudited)     (Unaudited)  
Revenues:
                                
Electrical Power Products
   $ 135,133     $ 158,291     $ 265,643     $ 322,201  
Process Control Systems
     7,002       5,808       12,408       12,387  
 
                        
 
                                
Total revenues
   $ 142,135     $ 164,099     $ 278,051     $ 334,588  
 
                        
 
                                
Income before income taxes:
                                
 
                                
Electrical Power Products
   $ 15,076     $ 13,143     $ 30,063     $ 25,262  
Process Control Systems
     187       119       236       526  
 
                        
 
                                
Total income before income taxes
   $ 15,263     $ 13,262     $ 30,299     $ 25,788  
 
                        
                 
    March 31,     September 30,  
    2010     2009  
(In thousands)   (Unaudited)  
Identifiable tangible assets:
                
 
                
Electrical Power Products
   $ 244,105     $ 258,012  
Process Control Systems
     9,086       6,863  
Corporate
     125,698       117,398  
 
            
 
                
Total identifiable tangible assets
   $ 378,889     $ 382,273  
 
            
 
                
Backlog:
                
 
                
Electrical Power Products
   $ 270,746     $ 329,558  
Process Control Systems
     42,281       36,198  
 
            
 
                
Total backlog
   $ 313,027     $ 365,756  
 
            
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