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Powell Industries Announces Fiscal 2012 Second Quarter Results

May 8, 2012

HOUSTON, May 8, 2012 /PRNewswire/ — Powell Industries, Inc. (NASDAQ: POWL), a leading supplier of custom engineered solutions for the management and control of electrical energy and other critical processes, today announced results for the fiscal 2012 second quarter ending March 31, 2012.

Revenues for the second quarter of fiscal 2012 were $181.5 million compared to revenues of $125.1 million for the second quarter of fiscal 2011. Net income for the second quarter of 2012 was $7.4 million, or $0.63 per diluted share, compared to net income of $1.7 million, or $0.15 per diluted share, in the second quarter of fiscal 2011. The year-over-year increase in net income was larger than expected and primarily attributable to several large projects presently in production meeting or exceeding significant milestones.

Thomas W. Powell, Chief Executive Officer, stated, “Our second quarter results demonstrate the nature of a custom engineered project business. Just as unforeseen challenges can at times create costs in excess of estimates, operational excellence can also generate margin improvement. Several large, complex projects provided the margin upside to our second quarter results, and we are extremely pleased with the efficient execution by our organization.

“The market strength continues to be primarily driven by oil and gas, however, we are seeing an increase in activity in the utilities sector and some other industrials. We have also been successful with light rail infrastructure projects, both in the U.S. and Canada.

“We continue to believe that pent up demand exists and that capital projects in our key markets will go forward as the overall economy strengthens. We are working both on opportunities that exist as well as preparing for those that have not yet become apparent.”

New orders placed during the second quarter of fiscal 2012 totaled $203 million compared to $189 million in the first quarter of fiscal 2012 and compared to $217 million in the second quarter of fiscal 2011. The Company’s backlog as of March 31, 2012 was $497 million compared to $474 million as of December 31, 2011 and compared to $437 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 2012 revenues to range between $675 million and $725 million and full year fiscal 2012 earnings to range between $1.25 and $1.50 per diluted share.

CONFERENCE CALL

Powell Industries has scheduled a conference call for Wednesday, May 9, 2012 at 11:00 a.m. eastern time. To participate in the conference call, 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 May 16, 2012. To access the replay, dial 303-590-3030 using a passcode of 4532672#.

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, engineers packaged solutions and systems for the control, distribution and management of electrical energy and other dynamic processes. Powell markets include 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.

    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, INC. & SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
    ----------------------------------------------

                                           Three Months Ended     Six Months Ended
                                             March 31, 2012        March 31, 2011       March 31, 2012       March 31, 2011
                                             --------------        --------------       --------------       --------------
              (In thousands,
              except per share
                   data)
                                               (Unaudited)           (Unaudited)

    Revenues                                            $181,486              $125,111             $338,942             $249,785

    Cost of goods sold                                   147,249               100,234              284,327              199,043
                                                         -------               -------              -------              -------

    Gross profit                                          34,237                24,877               54,615               50,742

    Selling, general
     and administrative
     expenses                                             21,523                21,538               41,286               42,466

    Amortization of
     intangible assets                                       704                 1,254                1,407                2,421
                                                             ---                 -----                -----                -----

    Operating income                                      12,010                 2,085               11,922                5,855

    Gain on sale of
     investment                                              ---                (1,229)                 ---               (1,229)
    Interest expense                                          68                    94                  144                  208
    Interest income                                          (34)                  (62)                 (63)                (107)
                                                             ---                   ---                  ---                 ----

    Income before
     income taxes                                         11,976                 3,282               11,841                6,983

    Income tax
     provision                                             4,565                 1,549                6,175                2,818
                                                           -----                 -----                -----                -----

    Net income                                            $7,411                $1,733               $5,666               $4,165
                                                          ======                ======               ======               ======

    Earnings per share:

            Basic                                          $0.63                 $0.15                $0.48                $0.36
                                                           =====                 =====                =====                =====
            Diluted                                        $0.63                 $0.15                $0.48                $0.35
                                                           =====                 =====                =====                =====

    Weighted average
     shares:

            Basic                                         11,762                11,666               11,765               11,653
                                                          ======                ======               ======               ======
            Diluted                                       11,835                11,799               11,836               11,787
                                                          ======                ======               ======               ======

    SELECTED FINANCIAL
     DATA:

    Capital
     Expenditures                                         $9,501                $1,904              $18,879               $2,667
                                                          ======                ======              =======               ======

    Depreciation and
     amortization                                         $3,257                $3,938               $6,433               $7,493
                                                          ======                ======               ======               ======

    POWELL INDUSTRIES, INC. & SUBSIDIARIES
    --------------------------------------
    CONDENSED CONSOLIDATED BALANCE SHEETS
    -------------------------------------

                                            March 31,           September 30,
                                                           2012                   2011
                                                           ----                   ----
              (In thousands)               (Unaudited)
                                           ----------

    Assets:

            Current assets                             $355,134               $336,682

            Property,
             plant and
             equipment
             (net)                                       73,774                 59,637

            Other assets                                 23,008                 25,357
                                                         ------                 ------

                    Total assets                       $451,916               $421,676
                                                       ========               ========

    Liabilities & equity:

            Current
             liabilities                               $161,693               $137,724

            Long-term
             debt and
             capital lease
             obligations,
             net of
             current
             maturities                                   3,712                  4,301

            Deferred and
             other long-
             term
             liabilities                                  4,037                  4,308

            Stockholders'
             equity                                     282,474                275,343
                                                        -------                -------

                    Total
                     liabilities
                     and equity                        $451,916               $421,676
                                                       ========               ========

    POWELL INDUSTRIES, INC. & SUBSIDIARIES
    --------------------------------------
    BUSINESS SEGMENTS
    -----------------

                                                                 Six Months Ended
                                           Three Months Ended
                                             March 31, 2012                       March 31, 2011       March 31, 2012      March 31, 2011
                                             --------------                       --------------       --------------      --------------
               (In thousands)                  (Unaudited)          (Unaudited)

    Revenues:
    Electrical  Power
     Products                                           $173,974                             $118,576             $324,638            $235,719
    Process Control
     Systems                                               7,512                                6,535               14,304              14,066
                                                           -----                                -----               ------              ------

    Total revenues                                      $181,486                             $125,111             $338,942            $249,785
                                                        ========                             ========             ========            ========

    Income before income taxes:

    Electrical  Power
     Products                                            $11,665                               $3,428              $11,644              $7,513
    Process Control
     Systems                                                 311                                 (146)                 197                (530)
                                                             ---                                 ----                  ---                ----

    Total income before
     income taxes                                        $11,976                               $3,282              $11,841              $6,983
                                                         =======                               ======              =======              ======

                                March 31,        September 30,
                                            2012                   2011
                                            ----                   ----
            (In thousands)     (Unaudited)
    Identifiable tangible
     assets:

            Electrical Power
             Products                   $275,322               $248,155
            Process Control
             Systems                      14,325                 10,711
            Corporate                    146,660                145,683
                                         -------                -------

            Total identifiable
             tangible assets            $436,307               $404,549
                                        ========               ========

    Backlog:

            Electrical Power
             Products                   $448,125               $394,598
            Process Control
             Systems                      48,828                 48,363
                                          ------                 ------

            Total backlog               $496,953               $442,961
                                        ========               ========

SOURCE Powell Industries, Inc.


Source: PR Newswire