POWELL INDUSTRIES INC - FORM 8-K - EX-99.1 - May 4, 2011

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EXHIBIT 99.1
     
(POWELL LOGO)   Press Release
         
 
  Contacts:   Don R. Madison, CFO
 
      Powell Industries, Inc.
 
      713-947-4422
FOR IMMEDIATE RELEASE
        
 
        
 
      Ken Dennard / ksdennard@drg-l.com
 
      Karen Roan / kcroan@drg-l.com
 
      DRG&L / 713-529-6600
POWELL INDUSTRIES ANNOUNCES FISCAL 2011
SECOND QUARTER RESULTS
Company reports record orders of $217 million
HOUSTON — MAY 3, 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 second quarter ending March 31, 2011.
     Revenues for the second quarter of fiscal 2011 were $125.6 million compared to revenues of $142.1 million for the second quarter of fiscal 2010. Net income for the second quarter was $2.5 million, or $0.21 per diluted share, compared to net income of $9.9 million, or $0.85 per diluted share, in the second quarter of fiscal 2010. A one-time benefit of $1.2 million, resulting from a gain on the sale of the Company’s investment in a Kazakhstan joint venture, is included in fiscal 2011 second quarter results.
     Patrick L. McDonald, President and Chief Executive Officer, stated, “We generated record orders for the second quarter, giving us confidence that we will continue to see gradual improvement in the market. Even taking into account several large contracts included in second quarter bookings, the order pace is what we need to build backlog and drive our results later this year and into fiscal 2012.
     “We still expect this fiscal year to be somewhat challenging. We are a late cycle business, largely driven by available backlog and the ability of our customer base to engage in

 

 

and move capital projects forward. Our backlog is growing, and at this point, we expect our fiscal fourth quarter and fiscal 2012 earnings to reflect a more robust business environment.”
     New orders placed during the second quarter of fiscal 2011 reached a quarterly record of $217 million compared to $186 million in the first quarter of fiscal 2011 and compared to $113 million in the second quarter of fiscal 2010. The Company’s backlog as of March 31, 2011 was $437 million compared to $344 million as of December 31, 2010 and compared to $313 million at the end of last year’s second quarter.
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 $500 million and $550 million and full year fiscal 2011 earnings to range between $1.10 and $1.40 per diluted share.
CONFERENCE CALL
     Powell Industries has scheduled a conference call for Wednesday, May 4, 2011 at 11:00 a.m. eastern time. To participate in the conference call, dial 480-629-9771 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 May 11, 2011. To access the replay, dial 303-590-3030 using a passcode of 4430676#.
     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     Six Months Ended  
    March 31, 2011     March 31, 2010     March 31, 2011     March 31, 2010  
(In thousands, except per share data)   (Unaudited)     (Unaudited)  
Revenues
   $ 125,598     $ 142,135     $ 250,272     $ 278,051  
 
                                
Cost of goods sold
     99,955       105,602       198,764       203,701  
 
                        
 
                                
Gross profit
     25,643       36,533       51,508       74,350  
 
                                
Selling, general and administrative expenses
     21,538       19,958       42,466       41,737  
 
                                
Amortization of intangible assets
     1,254       1,199       2,421       2,061  
 
                        
 
                                
Operating income
     2,851       15,376       6,621       30,552  
 
                                
Other income
     (1,229 )     —       (1,229 )     —  
 
                                
Interest expense
     94       228       208       410  
 
                                
Interest income
     (62 )     (115 )     (107 )     (157 )
 
                        
 
                                
Income before income taxes
     4,048       15,263       7,749       30,299  
 
                                
Income tax provision
     1,549       5,378       2,818       10,669  
 
                        
 
                                
Net income
     2,499       9,885       4,931       19,630  
 
                                
Net income attributable to noncontrolling interest
     —       (25 )     —       (126 )
 
                        
 
                                
Net income attributable to Powell Industries, Inc.
   $ 2,499     $ 9,860     $ 4,931     $ 19,504  
 
                        
 
                                
Earnings per share attributable to Powell Industries, Inc.:
                                
 
                                
Basic
   $ 0.21     $ 0.86     $ 0.42     $ 1.70  
 
                        
Diluted
   $ 0.21     $ 0.85     $ 0.42     $ 1.68  
 
                        
 
                                
Weighted average shares:
                                
 
                                
Basic
     11,666       11,523       11,653       11,498  
 
                        
Diluted
     11,799       11,659       11,787       11,639  
 
                        
 
                                
SELECTED FINANCIAL DATA:
                                
 
                                
Capital Expenditures
   $ 1,904     $ 846     $ 2,667     $ 1,460  
 
                        
 
                                
Depreciation and amortization
   $ 3,938     $ 3,497     $ 7,493     $ 6,369  
 
                        

 

 

POWELL INDUSTRIES, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
                 
    March 31,     September 30,  
    2011     2010  
(In thousands)   (Unaudited)          
Assets:
                
 
                
Current assets
   $ 317,192     $ 302,191  
 
                
Property, plant and equipment (net)
     61,440       63,676  
 
                
Other assets
     34,555       34,845  
 
            
 
                
Total assets
   $ 413,187     $ 400,712  
 
            
 
                
Liabilities & equity:
                
 
                
Current liabilities
   $ 118,775     $ 114,746  
 
                
Long-term debt and capital lease obligations, net of current maturities
     4,543       5,202  
 
                
Deferred and other long-term liabilities
     4,075       3,461  
 
                
Stockholders’ equity
     285,794       277,303  
 
            
 
                
Total liabilities and equity
   $ 413,187     $ 400,712  
 
            

 

 

POWELL INDUSTRIES, INC. & SUBSIDIARIES
BUSINESS SEGMENTS
                                 
    Three Months Ended     Six Months Ended  
    March 31, 2011     March 31, 2010     March 31, 2011     March 31, 2010  
(In thousands)   (Unaudited)     (Unaudited)  
Revenues:
                                
Electrical Power Products
   $ 119,063     $ 133,401     $ 236,206     $ 261,530  
Process Control Systems
     6,535       8,734       14,066       16,521  
 
                        
 
                                
Total revenues
   $ 125,598     $ 142,135     $ 250,272     $ 278,051  
 
                        
 
                                
Income before income taxes:
                                
 
                                
Electrical Power Products
   $ 4,194     $ 14,320     $ 8,279     $ 28,168  
Process Control Systems
     (146 )     943       (530 )     2,131  
 
                        
 
                                
Total income before income taxes
   $ 4,048     $ 15,263     $ 7,749     $ 30,299  
 
                        
                 
    March 31,     September 30,  
    2011     2010  
(In thousands)   (Unaudited)  
Identifiable tangible assets:
                
 
                
Electrical Power Products
   $ 240,925     $ 230,111  
Process Control Systems
     8,521       9,617  
Corporate
     136,817       133,635  
 
            
 
                
Total identifiable tangible assets
   $ 386,263     $ 373,363  
 
            
 
                
Backlog:
                
 
                
Electrical Power Products
   $ 381,032     $ 245,433  
Process Control Systems
     55,545       36,870  
 
            
 
                
Total backlog
   $ 436,577     $ 282,303  
 
            
# # #

 

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