EX-99.1 2 h49416exv99w1.htm PRESS RELEASE exv99w1
 

EXHIBIT 99.1
(POWELL PRESS RELEASE LOGO)
         
 
  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 2007
THIRD QUARTER RESULTS
HOUSTON — AUGUST 8, 2007 — 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 2007 third quarter ended June 30, 2007. As previously announced, the Company changed its fiscal year-end to September 30 from October 31, effective September 30, 2006; therefore, the comparable period of fiscal 2006 is comprised of the three months ended July 31, 2006.
     Revenues for the third quarter of fiscal 2007 were $149.1 million compared to revenues of $104.0 million for the third quarter of fiscal 2006. The business operations of the Company’s August 2006 Power/Vac® product line acquisition contributed revenues of $19.3 million in the third quarter of fiscal 2007. Net income for the third quarter was $3.2 million, or $0.28 per diluted share, compared to net income of $1.6 million, or $0.14 per diluted share, in the third quarter of fiscal 2006.
     Thomas W. Powell, chairman and chief executive officer, stated, “Activity continues to be strong in all of our markets, as can be seen from our record backlog of $411 million. We hear from our customers and see in the marketplace that our industry is working at near full capacity. Powell always has been and will continue to be very responsive to our customers’ needs. We are working in all areas of our business to enhance our productive capabilities and continue to be the supplier of choice for our customers.”

 

 

     The Electrical Power Products segment recorded revenues of $143.1 million in the fiscal 2007 third quarter compared to $96.9 million in the third quarter of fiscal 2006. The business operations of the Company’s August 2006 Power/Vac product line acquisition contributed revenues of $19.3 million in the third quarter of fiscal 2007. Income before income taxes for Electrical Power Products in the third quarter totaled $4.8 million versus income before income taxes of $2.6 million in last year’s fiscal third quarter.
     The company’s order backlog as of June 30, 2007 was a record $411 million compared to $287 million at the end of the fiscal 2006 third quarter ended July 31, 2006 and compared to $408 million at the end of the second quarter of fiscal 2007 ended March 31, 2007. New orders placed during the third quarter totaled $151 million compared to $122 million in the third quarter of fiscal 2006 and compared to $168 million in the second quarter of fiscal 2007.
YEAR-TO-DATE RESULTS
     Revenues for the first nine months of fiscal 2007 were $413.8 million compared to revenues of $286.3 million for the first nine months of fiscal 2006. The business operations of the Company’s August 2006 Power/Vac product line acquisition contributed revenues of $66.6 million in the first nine months of fiscal 2007. Net income for the first nine months was $7.5 million, or $0.67 per diluted share, compared to net income of $6.2 million, or $0.56 per diluted share, in the comparable period of fiscal 2006.
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.
     Powell Industries expects full year fiscal 2007 revenues to range between $550 million and $575 million and full year fiscal 2007 earnings to range between $0.83 and $0.88 per diluted share.
CONFERENCE CALL
     Powell Industries has scheduled a conference call for Wednesday, August 8, 2007, at 11:00 a.m. eastern time. To participate in the conference call, dial 303-262-2143 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 15, 2007. To access the replay, dial 303-590-3000 using a passcode of 11093473.
     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, including but not limited to the results of the Company’s internal investigation relating to the accounting errors, 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.
- Tables to follow -

 

 

     POWELL INDUSTRIES, INC. & SUBSIDIARIES
 
     CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                                 
    Three Months Ended     Nine Months Ended  
    June 30, 2007     July 31, 2006     June 30, 2007     July 31, 2006  
            (As restated)             (As restated)  
(In thousands, except per share data)   (Unaudited)     (Unaudited)  
 
                                
Revenues
   $ 149,131     $ 104,021     $ 413,819     $ 286,265  
 
                                
Cost of goods sold
     121,705       85,249       343,538       232,909  
 
                        
 
                                
Gross profit
     27,426       18,772       70,281       53,356  
 
                                
Selling, general and administrative expenses
     21,750       15,705       56,476       42,540  
 
                        
 
                                
Income before interest, income taxes and minority interest
     5,676       3,067       13,805       10,816  
 
                                
Interest expense
     922       476       2,529       1,137  
 
                                
Interest income
     (110 )     (197 )     (410 )     (736 )
 
                        
 
                                
Income before income taxes and minority interest
     4,864       2,788       11,686       10,415  
 
                                
Income tax provision
     1,724       1,231       4,154       4,210  
 
                                
Minority interest in net income (loss)
     (30 )     7       79       22  
 
                        
 
                                
Net income
   $ 3,170     $ 1,550     $ 7,453     $ 6,183  
 
                        
 
                                
Net earnings per common share:
                                
 
                                
Basic
   $ 0.29     $ 0.14     $ 0.68     $ 0.57  
 
                        
Diluted
   $ 0.28     $ 0.14     $ 0.67     $ 0.56  
 
                        
 
                                
Weighted average shares:
                                
 
                                
Basic
     11,082       10,888       11,023       10,869  
 
                        
Diluted
     11,271       11,140       11,207       11,090  
 
                        
 
                                
SELECTED FINANCIAL DATA:
                                
 
                                
Capital Expenditures
   $ 1,433     $ 2,158     $ 11,111     $ 4,803  
 
                        
 
                                
Depreciation and amortization
   $ 3,035     $ 1,443     $ 8,225     $ 4,906  
 
                        

 

 

     POWELL INDUSTRIES, INC. & SUBSIDIARIES
 
     CONDENSED CONSOLIDATED BALANCE SHEETS
                 
    June 30,     September 30,  
    2007     2006  
(In thousands)   (Unaudited)     (As restated)  
 
                
Assets:
                
 
                
Current assets
   $ 237,916     $ 193,500  
 
                
Property, plant and equipment (net)
     66,337       60,336  
 
                
Other assets
     36,531       38,842  
 
            
 
                
Total assets
   $ 340,784     $ 292,678  
 
            
 
                
Liabilities & stockholders’ equity:
                
 
                
Current liabilities
   $ 123,938     $ 98,612  
 
                
Long-term debt and capital lease obligations, net of current maturities
     43,302       33,886  
 
                
Deferred and other long-term liabilities
     2,967       2,971  
 
                
Stockholders’ equity and minority interest
     170,577       157,209  
 
            
 
                
Total liabilities and stockholders’ equity
   $ 340,784     $ 292,678  
 
            

 

 

     POWELL INDUSTRIES, INC. & SUBSIDIARIES
 
     BUSINESS SEGMENTS
                                 
    Three Months Ended     Nine Months Ended  
    June 30, 2007     July 31, 2006     June 30, 2007     July 31, 2006  
            (As restated)             (As restated)  
(In thousands)   (Unaudited)     (Unaudited)  
 
                                
Revenues:
                                
Electrical Power Products
   $ 143,051     $ 96,896     $ 396,428     $ 265,413  
Process Control Systems
     6,080       7,125       17,391       20,852  
 
                        
 
                                
Total revenues
   $ 149,131     $ 104,021     $ 413,819     $ 286,265  
 
                        
 
                                
Income before income taxes:
                                
 
                                
Electrical Power Products
   $ 4,769     $ 2,621     $ 11,107     $ 9,522  
Process Control Systems
     95       167       579       893  
 
                        
 
                                
Total income before income taxes
   $ 4,864     $ 2,788     $ 11,686     $ 10,415  
 
                        
                 
    June 30,     September 30,  
    2007     2006  
(In thousands)   (Unaudited)  
Backlog:
                
 
                
Electrical Power Products
   $ 381,862     $ 324,688  
Process Control Systems
     29,015       30,440  
 
            
 
                
Total backlog
   $ 410,877     $ 355,128  
 
            
# # #