Accounting Restatement

9 Months Ended

Jun. 30, 2011

Accounting Restatement [Abstract]

ACCOUNTING RESTATEMENT

M. ACCOUNTING RESTATEMENT

Previously issued financial statements as of and for the three and nine months ended June 30, 2011 are being restated to correct accounting errors at Powell Canada related to inaccurate recording of customer change orders, an erroneous journal entry recorded in accounts payable, incorrect close-out of costs and billings on certain jobs, and the application of an incorrect manufacturing overhead rate. This restatement decreased revenue and increased cost of goods sold, which resulted in a decrease in net income, earnings per share, total assets, and total stockholders’ equity as of and for the periods stated below.

The effects of the restatement adjustments on the Company’s unaudited Condensed Consolidated Statement of Operations follow (in thousands):

	Three Months			Nine Months
	Ended			Ended
	June 30, 2011			June 30, 2011
Revenue:
As previously reported	$	142,135		$	392,407
Adjustments		(766	)		(1,254	)
As restated	$	141,369		$	391,153
Cost of goods sold:
As previously reported	$	118,637		$	317,401
Adjustments		868			1,147
As restated	$	119,505		$	318,548
Gross Profit:
As previously reported	$	23,498		$	75,006
Adjustments to revenue		(766	)		(1,254	)
Adjustments to cost of goods sold		(868	)		(1,147	)
As restated	$	21,864		$	72,605
Operating Income:
As previously reported	$	2,851		$	9,472
Adjustments to revenue		(766	)		(1,254	)
Adjustments to cost of goods sold		(868	)		(1,147	)
As restated	$	1,217		$	7,071
Income before income taxes:
As previously reported	$	2,829		$	10,578
Adjustments to revenue		(766	)		(1,254	)
Adjustments to cost of goods sold		(868	)		(1,147	)
As restated	$	1,195		$	8,177
Net income:
As previously reported	$	1,707		$	6,638
Adjustments to revenue		(766	)		(1,254	)
Adjustments to cost of goods sold		(868	)		(1,147	)
As restated	$	73		$	4,237
Earnings per share:
Basic:
As previously reported	$	0.15		$	0.57
Adjustments		(0.14	)		(0.21	)
As restated	$	0.01		$	0.36
Diluted:
As previously reported	$	0.14		$	0.56
Adjustments		(0.13	)		(0.20	)
As restated	$	0.01		$	0.36

The effects of the restatement adjustments on the Company’s unaudited Condensed Consolidated Balance Sheet follow (in thousands):

	June 30, 2011
Cost and estimated earnings in excess of billings on uncompleted contracts:
As previously reported	$	43,927
Adjustments to estimated contract revenue on uncompleted contracts		(1,263	)
As restated	$	42,664
Inventories, net:
As previously reported	$	41,344
Adjustments to cost of goods sold		(135	)
As restated	$	41,209
Accounts payable:
As previously reported	$	46,777
Adjustments to cost of goods sold		1,003
As restated	$	47,780
Retained earnings:
As previously reported	$	251,607
Adjustments to net income		(2,401	)
As restated	$	249,206

While the restatement adjustments had an effect on net income and certain changes in operating assets and liabilities, there was no change to Net Cash provided by Operating Activities on the Company’s unaudited Condensed Consolidated Statement of Cash Flows.