EX-99.1 2 h83970exv99w1.htm EX-99.1 exv99w1
EXHIBIT 99.1
     
[POWELL GRAPHIC]
  Press Release
         
FOR IMMEDIATE RELEASE
  Contacts:   Don R. Madison, CFO
Powell Industries, Inc.
713-947-4422
         
 
      Ken Dennard / ksdennard@drg-l.com
Karen Roan / kcroan@drg-l.com
DRG&L / 713-529-6600
POWELL INDUSTRIES ANNOUNCES FISCAL 2011
THIRD QUARTER RESULTS
Company reports orders of $198 million and backlog of $491 million
HOUSTON — AUGUST 2, 2011 — 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 2011 third quarter ending June 30, 2011.
Revenues for the third quarter of fiscal 2011 were $142.1 million compared to revenues of $138.9 million for the third quarter of fiscal 2010. Net income for the third quarter was $1.7 million, or $0.14 per diluted share, compared to net income of $10.3 million, or $0.88 per diluted share, in the third quarter of fiscal 2010.
Patrick L. McDonald, President and Chief Executive Officer, stated, “We had another strong order input quarter. We are beginning to see some market stabilization in the oil and gas sector; however, most of the activity continues to occur outside the U.S. Other than oil and gas, markets in which we compete continue to be soft, especially those tied to municipal funding.
“Based on our near term orders in backlog and with delivery schedules firming, we have begun hiring and training people, preparing them for a near term rise in our business. We expect our revenues and profits to begin improving between now and the end of the fiscal year.”
New orders placed during the third quarter of fiscal 2011 totaled $198 million compared to $217 million in the second quarter of fiscal 2011 and compared to $136 million in the third quarter of fiscal 2010. The Company’s backlog as of June 30, 2011 was $491 million compared to $437 million as of March 31, 2011 and compared to $310 million at the end of last year’s third quarter.

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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 2011 revenues to range between $545 million and $570 million and full year fiscal 2011 earnings to range between $1.05 and $1.15 per diluted share.
CONFERENCE CALL
Powell Industries has scheduled a conference call for Wednesday, August 3, 2011 at 11:00 a.m. eastern time. To participate in the conference call, please dial 480-629-9645 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 10, 2011. To access the replay, dial 303-590-3030 using a passcode of 4453437#. Investors may also listen to the conference call live over the Internet by visiting http://www.powellind.com. An archive of the web cast 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.

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     POWELL INDUSTRIES, INC. & SUBSIDIARIES
     CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                                 
    Three Months Ended     Nine Months Ended  
    June 30, 2011     June 30, 2010     June 30, 2011     June 30, 2010  
(In thousands, except per share data)   (Unaudited)     (Unaudited)  
Revenues
   $ 142,135     $ 138,880     $ 392,407     $ 416,931  
Cost of goods sold
     118,637       100,636       317,401       304,337  
 
                        
Gross profit
     23,498       38,244       75,006       112,594  
Selling, general and administrative expenses
     19,410       21,084       61,876       62,821  
Amortization of intangible assets
     1,237       1,132       3,658       3,193  
 
                        
Operating income
     2,851       16,028       9,472       46,580  
Other income
     —       —       (1,229 )     —  
Interest expense
     88       228       296       638  
Interest income
     (66 )     (49 )     (173 )     (206 )
 
                        
Income before income taxes
     2,829       15,849       10,578       46,148  
Income tax provision
     1,122       5,530       3,940       16,199  
 
                        
Net income
     1,707       10,319       6,638       29,949  
Net income attributable to noncontrolling interest
     —       (33 )     —       (159 )
 
                        
Net income attributable to Powell Industries, Inc.
   $ 1,707     $ 10,286     $ 6,638     $ 29,790  
 
                        
Earnings per share attributable to Powell Industries, Inc.:
                                
Basic
   $ 0.15     $ 0.89     $ 0.57     $ 2.59  
 
                        
Diluted
   $ 0.14     $ 0.88     $ 0.56     $ 2.56  
 
                        
Weighted average shares:
                                
Basic
     11,740       11,556       11,730       11,518  
 
                        
Diluted
     11,812       11,679       11,806       11,648  
 
                        
SELECTED FINANCIAL DATA:
                                
Capital Expenditures
   $ 1,405     $ 2,001     $ 4,072     $ 3,461  
 
                        
Depreciation and amortization
   $ 4,005     $ 3,628     $ 11,498     $ 9,997  
 
                        

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     POWELL INDUSTRIES, INC. & SUBSIDIARIES
     CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                 
    June 30,     September 30,  
    2011     2010  
(In thousands)   (Unaudited)     (Unaudited)  
Assets:
                
Current assets
   $ 346,714     $ 302,191  
Property, plant and equipment (net)
     59,874       63,676  
Other assets
     33,194       34,845  
 
            
Total assets
   $ 439,782     $ 400,712  
 
            
Liabilities & equity:
                
Current liabilities
   $ 144,155     $ 114,746  
Long-term debt and capital lease
     4,387       5,202  
obligations, net of current maturities Deferred and other long-term liabilities
     4,163       3,461  
Stockholders’ equity
     287,077       277,303  
 
            
Total liabilities and equity
   $ 439,782     $ 400,712  
 
            

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     POWELL INDUSTRIES, INC. & SUBSIDIARIES
     CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                                 
    Three Months Ended     Nine Months Ended  
    June 30, 2011     June 30, 2010     June 30, 2011     June 30, 2010  
(In thousands)   (Unaudited)     (Unaudited)  
Revenues:
                                
Electrical Power Products
   $ 135,191     $ 129,396     $ 371,397     $ 390,926  
Process Control Systems
     6,944       9,484       21,010       26,005  
 
                        
Total revenues
   $ 142,135     $ 138,880     $ 392,407     $ 416,931  
 
                        
Income before income taxes:
                                
Electrical Power Products
   $ 2,689     $ 14,939     $ 10,968     $ 43,107  
Process Control Systems
     140       910       (390 )     3,041  
 
                        
Total income before income taxes.
   $ 2,829     $ 15,849     $ 10,578     $ 46,148  
 
                        
                 
    June 30,     September 30,  
    2011     2010  
(In thousands)   (Unaudited)  
Identifiable tangible assets:
                
Electrical Power Products
   $ 246,161     $ 230,111  
Process Control Systems
     9,693       9,617  
Corporate
     159,716       133,635  
 
            
Total identifiable tangible assets
   $ 415,570     $ 373,363  
 
            
Backlog:
                
Electrical Power Products
   $ 440,265     $ 245,433  
Process Control Systems
     51,180       36,870  
 
            
Total backlog
   $ 491,445     $ 282,303  
 
            
# # #

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