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8-K - FORM 8-K - POWELL INDUSTRIES INC | h79412e8vk.htm |
Exhibit 99.1
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
FIRST QUARTER RESULTS
FIRST QUARTER RESULTS
HOUSTON FEBRUARY 1, 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 first quarter ending December 31, 2010.
Revenues for the first quarter of fiscal 2011 were $124.7 million compared to revenues of
$135.9 million for the first quarter of fiscal 2010. Net income for the first quarter was $2.4
million, or $0.21 per diluted share, compared to net income of $9.6 million, or $0.83 per diluted
share, in the first quarter of fiscal 2010.
Patrick L. McDonald, President and Chief Executive Officer, stated, Our first quarter results
reflect our expectations of a challenging environment in fiscal 2011. We are a backlog driven
company, and both revenues and earnings were impacted by the relative size and competitive nature
of our beginning backlog, which was at its lowest level since 2007. The orders that comprised that
backlog were obtained in a very competitive market environment. We are pleased that orders and
backlog have increased substantially from year-end levels, positioning us for stronger performance
in the coming quarters.
We are encouraged by the increasing activity in the market and are certainly making the most
of opportunities as they are presented to us, although we think it is too soon to know if our first
quarter order activity represents a sustainable shift in market direction. We do believe that a
great deal of pent-up demand exists and that we will participate in much of that business as new
investment activity strengthens.
New orders placed during the first quarter of fiscal 2011 totaled $186 million compared to
$106 million in the fourth quarter of fiscal 2010 and compared to $108 million in the first
quarter of fiscal 2010. The Companys backlog as of December 31, 2010 was $344 million compared to
$282 million as of September 30, 2010 and compared to $342 million at the end of last years first
quarter. A substantial single multi-million dollar project is included in current quarter orders
and backlog.
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 $475 million and $525 million and full year fiscal 2011
earnings to range between $1.25 and $1.75 per diluted share.
CONFERENCE CALL
Powell Industries has scheduled a conference call for Wednesday, February 2, 2011 at 11:00
a.m. eastern time. To participate in the conference call, dial 480-629-9725 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 February 9, 2011. To access the replay, dial 303-590-3030 using a passcode of 4403962#.
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 Companys 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 | ||||||||
December 31, | ||||||||
2010 | 2009 | |||||||
(In thousands, except per share data) | (Unaudited) | |||||||
Revenues |
$ | 124,674 | $ | 135,916 | ||||
Cost of goods sold |
98,809 | 98,099 | ||||||
Gross profit |
25,865 | 37,817 | ||||||
Selling, general and administrative expenses |
20,928 | 21,779 | ||||||
Amortization of intangible assets |
1,167 | 862 | ||||||
Operating income |
3,770 | 15,176 | ||||||
Interest expense |
114 | 182 | ||||||
Interest income |
(45 | ) | (42 | ) | ||||
Income before income taxes |
3,701 | 15,036 | ||||||
Income tax provision |
1,269 | 5,291 | ||||||
Net income |
2,432 | 9,745 | ||||||
Net income attributable to noncontrolling interest |
| (101 | ) | |||||
Net income attributable to Powell Industries, Inc. |
$ | 2,432 | $ | 9,644 | ||||
Net earnings per common share attributable to
Powell Industries, Inc.: |
||||||||
Basic |
$ | 0.21 | $ | 0.84 | ||||
Diluted |
$ | 0.21 | $ | 0.83 | ||||
Weighted average shares: |
||||||||
Basic |
11,640 | 11,476 | ||||||
Diluted |
11,773 | 11,626 | ||||||
SELECTED FINANCIAL DATA: |
||||||||
Depreciation and amortization |
$ | 3,555 | $ | 2,872 | ||||
Capital Expenditures |
$ | 763 | $ | 614 | ||||
POWELL INDUSTRIES, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, | September 30, | |||||||
2010 | 2010 | |||||||
(In thousands) | (Unaudited) | |||||||
Assets: |
||||||||
Current assets |
$ | 301,691 | $ | 302,191 | ||||
Property, plant and equipment (net) |
61,994 | 63,676 | ||||||
Other assets |
35,180 | 34,845 | ||||||
Total assets |
$ | 398,865 | $ | 400,712 | ||||
Liabilities & equity: |
||||||||
Current liabilities |
$ | 109,410 | $ | 114,746 | ||||
Long-term debt and capital lease obligations, net of current maturities |
4,675 | 5,202 | ||||||
Deferred and other long-term liabilities |
3,691 | 3,461 | ||||||
Stockholders equity |
281,089 | 277,303 | ||||||
Total liabilities and stockholders equity |
$ | 398,865 | $ | 400,712 | ||||
POWELL INDUSTRIES, INC. & SUBSIDIARIES
BUSINESS SEGMENTS
Three Months Ended | ||||||||
December 31, | ||||||||
2010 | 2009 | |||||||
(In thousands) | (Unaudited) | |||||||
Revenues: |
||||||||
Electrical Power Products |
$ | 117,143 | $ | 128,129 | ||||
Process Control Systems |
7,531 | 7,787 | ||||||
Total revenues |
$ | 124,674 | $ | 135,916 | ||||
Income before income taxes: |
||||||||
Electrical Power Products |
$ | 4,085 | $ | 13,848 | ||||
Process Control Systems |
(384 | ) | 1,188 | |||||
Total income before income taxes |
$ | 3,701 | $ | 15,036 | ||||
December 31, | September 30, | |||||||
2010 | 2010 | |||||||
(In thousands) | (Unaudited) | |||||||
Identifiable tangible assets: |
||||||||
Electrical Power Products |
$ | 223,597 | $ | 230,111 | ||||
Process Control Systems |
9,186 | 9,617 | ||||||
Corporate |
138,191 | 133,635 | ||||||
Total identifiable tangible assets |
$ | 370,974 | $ | 373,363 | ||||
Backlog: |
||||||||
Electrical Power Products |
$ | 307,534 | $ | 245,433 | ||||
Process Control Systems |
36,535 | 36,870 | ||||||
Total backlog |
$ | 344,069 | $ | 282,303 | ||||
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