EX-99.1 2 h75053exv99w1.htm EX-99.1 exv99w1
EXHIBIT 99.1
     
(POWELL INDUSTRIES 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
THIRD QUARTER RESULTS
HOUSTON — AUGUST 4, 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 third quarter ending June 30, 2010.
     Revenues for the third quarter of fiscal 2010 were $138.9 million compared to revenues of $165.9 million for the third quarter of fiscal 2009. Net income for the third quarter was $10.3 million, or $0.88 per diluted share, compared to net income of $13.1 million, or $1.14 per diluted share, in the third quarter of fiscal 2009.
     Patrick L. McDonald, President and Chief Executive Officer, stated, “Our third quarter performance continued to benefit from our investments in project management and ongoing improvements in internal processes. We are pleased with the efforts of all of our employees to improve our business results. The integration of our recent acquisition in Canada is progressing well and remains on track.
     “After an extended period of soft market conditions, most of our key markets appear to be stabilizing. We expect to see modest improvement in business activity over the coming year, primarily from capital projects outside of the United States. We continue to focus our efforts on obtaining new customers while strengthening our relationships with current customers, as well as expanding our products and services to support clients on projects not only in North America but around the world.”
     The Company’s backlog as of June 30, 2010 was $310 million compared to $313 million as of March 31, 2010 and compared to $426 million at the end of last year’s third quarter. New

 

 

orders placed during the third quarter of fiscal 2010 totaled $136 million compared to $113 million in the second quarter of fiscal 2010 and compared to $103 million in the third 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 $560 million and $575 million and full year fiscal 2010 earnings to range between $2.95 and $3.20 per diluted share.
CONFERENCE CALL
     Powell Industries has scheduled a conference call for Wednesday, August 4, 2010 at 11:00 a.m. eastern time. To participate in the conference call, dial 480-629-9772 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, 2010. To access the replay, dial 303-590-3030 using a passcode of 4331080#.
     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, 2010     June 30, 2009     June 30, 2010     June 30, 2009  
(In thousands, except per share data)            
    (Unaudited)     (Unaudited)  
 
                                
Revenues
   $ 138,880     $ 165,942     $ 416,931     $ 500,530  
 
                                
Cost of goods sold
     100,636       124,835       304,337       391,077  
 
                        
 
                                
Gross profit
     38,244       41,107       112,594       109,453  
 
                                
Selling, general and administrative expenses
     22,216       20,378       66,014       62,262  
 
                        
 
                                
Operating income
     16,028       20,729       46,580       47,191  
 
                                
Interest expense
     228       196       638       930  
 
                                
Interest income
     (49 )     (33 )     (206 )     (93 )
 
                        
 
                                
Income before income taxes
     15,849       20,566       46,148       46,354  
 
                                
Income tax provision
     5,530       7,219       16,199       16,271  
 
                        
 
                                
Net income
   $ 10,319     $ 13,347     $ 29,949     $ 30,083  
 
                                
Net loss attributable to noncontrolling interest
     33       209       159       240  
 
                        
 
                                
Net income attributable to Powell Industries, Inc.
   $ 10,286     $ 13,138     $ 29,790     $ 29,843  
 
                        
 
                                
Earnings per share attributable to Powell Industries, Inc.
                                
 
                                
Basic
   $ 0.89     $ 1.15     $ 2.59     $ 2.61  
 
                        
Diluted
   $ 0.88     $ 1.14     $ 2.56     $ 2.59  
 
                        
 
                                
Weighted average shares:
                                
 
                                
Basic
     11,556       11,420       11,518       11,416  
 
                        
Diluted
     11,679       11,521       11,648       11,501  
 
                        
 
                                
SELECTED FINANCIAL DATA:
                                
 
                                
Capital Expenditures
   $ 2,001     $ 3,431     $ 3,461     $ 6,412  
 
                        
 
                                
Depreciation and amortization
   $ 3,628     $ 2,702     $ 9,997     $ 8,204  
 
                        

 

 

     POWELL INDUSTRIES, INC. & SUBSIDIARIES
 
     CONDENSED CONSOLIDATED BALANCE SHEETS
                 
    June 30,     September 30,  
    2010     2009  
(In thousands)   (Unaudited)          
 
                
Assets:
                
 
                
Current assets
   $ 307,882     $ 315,003  
 
                
Property, plant and equipment (net)
     65,046       61,036  
 
                
Other assets
     46,066       28,801  
 
            
 
                
Total assets
   $ 418,994     $ 404,840  
 
            
 
                
Liabilities & stockholders’ equity:
                
 
                
Current liabilities
   $ 118,034     $ 149,142  
 
                
Long-term debt and capital lease obligations,
     17,595       4,800  
net of current maturities
                
 
                
Deferred and other long-term liabilities
     3,945       3,681  
 
                
Stockholders’ equity and noncontrolling interest
     279,420       247,217  
 
            
 
                
Total liabilities and stockholders’ equity
   $ 418,994     $ 404,840  
 
            

 

 

     POWELL INDUSTRIES, INC. & SUBSIDIARIES
 
     BUSINESS SEGMENTS
                                 
    Three Months Ended     Nine Months Ended  
    June 30, 2010     June 30, 2009     June 30, 2010     June 30, 2009  
(In thousands)   (Unaudited)     (Unaudited)  
 
                                
Revenues:
                                
Electrical Power Products
   $ 131,191     $ 156,077     $ 396,834     $ 478,278  
Process Control Systems
     7,689       9,865       20,097       22,252  
 
                        
 
                                
Total revenues
   $ 138,880     $ 165,942     $ 416,931     $ 500,530  
 
                        
 
                                
Income before income taxes:
                                
 
                                
Electrical Power Products
   $ 15,825     $ 17,731     $ 45,888     $ 42,993  
Process Control Systems
     24       2,835       260       3,361  
 
                        
 
                                
Total income before income taxes
   $ 15,849     $ 20,566     $ 46,148     $ 46,354  
 
                        
                 
    June 30,     September 30,  
    2010     2009  
(In thousands)   (Unaudited)  
Identifiable tangible assets:
                
 
                
Electrical Power Products
   $ 238,883     $ 258,012  
Process Control Systems
     10,993       6,863  
Corporate
     130,761       117,398  
 
            
 
                
Total identifiable tangible assets
   $ 380,637     $ 382,273  
 
            
 
                
Backlog:
                
 
                
Electrical Power Products
   $ 267,800     $ 329,558  
Process Control Systems
     42,073       36,198  
 
            
 
                
Total backlog
   $ 309,873     $ 365,756  
 
            
# # #