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Powell Industries Announces Fiscal 2010 Third Quarter Results

August 4, 2010

HOUSTON, Aug. 4 /PRNewswire-FirstCall/ — 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 2010 third quarter ending June 30, 2010.

Revenues for the third quarter of fiscal 2010 were $138.9 million compared to revenues of $165.9 million for the third quarter of fiscal 2009. Net income for the third quarter was $10.3 million, or $0.88 per diluted share, compared to net income of $13.1 million, or $1.14 per diluted share, in the third quarter of fiscal 2009.

Patrick L. McDonald, President and Chief Executive Officer, stated, “Our third quarter performance continued to benefit from our investments in project management and ongoing improvements in internal processes. We are pleased with the efforts of all of our employees to improve our business results. The integration of our recent acquisition in Canada is progressing well and remains on track.

“After an extended period of soft market conditions, most of our key markets appear to be stabilizing. We expect to see modest improvement in business activity over the coming year, primarily from capital projects outside of the United States. We continue to focus our efforts on obtaining new customers while strengthening our relationships with current customers, as well as expanding our products and services to support clients on projects not only in North America but around the world.”

The Company’s backlog as of June 30, 2010 was $310 million compared to $313 million as of March 31, 2010 and compared to $426 million at the end of last year’s third quarter. New orders placed during the third quarter of fiscal 2010 totaled $136 million compared to $113 million in the second quarter of fiscal 2010 and compared to $103 million in the third quarter of fiscal 2009.

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 2010 revenues to range between $560 million and $575 million and full year fiscal 2010 earnings to range between $2.95 and $3.20 per diluted share.

CONFERENCE CALL

Powell Industries has scheduled a conference call for Wednesday, August 4, 2010 at 11:00 a.m. eastern time. To participate in the conference call, dial 480-629-9772 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 11, 2010. To access the replay, dial 303-590-3030 using a passcode of 4331080#.

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.


    Contacts:  Don R. Madison, CFO
               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, INC. & SUBSIDIARIES
                   CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

                                             Three Months Ended
                                            June 30,   June 30,
                                              2010       2009
                                           ---------  ---------
    (In thousands, except per share data)
                                                 (Unaudited)

    Revenues                                $138,880   $165,942

    Cost of goods sold                       100,636    124,835
                                             -------    -------

    Gross profit                              38,244     41,107

    Selling, general and administrative
     expenses                                 22,216     20,378
                                              ------     ------

    Operating income                          16,028     20,729

    Interest expense                             228        196

    Interest income                              (49)       (33)
                                                 ---        ---

    Income before income taxes                15,849     20,566

    Income tax provision                       5,530      7,219
                                               -----      -----

    Net income                               $10,319    $13,347

    Net loss attributable to
     noncontrolling interest                      33        209
                                                 ---        ---

    Net income attributable to Powell
     Industries, Inc.                        $10,286    $13,138
                                             =======    =======

    Earnings per share attributable to
     Powell Industries, Inc.

        Basic                                  $0.89      $1.15
                                               =====      =====
        Diluted                                $0.88      $1.14
                                               =====      =====

    Weighted average shares:

        Basic                                 11,556     11,420
                                              ======     ======
        Diluted                               11,679     11,521
                                              ======     ======

    SELECTED FINANCIAL DATA:

    Capital Expenditures                      $2,001     $3,431
                                              ======     ======

    Depreciation and amortization             $3,628     $2,702
                                              ======     ======

                                              Nine Months Ended
                                            June 30,   June 30,
                                              2010       2009
                                           ---------  ---------
    (In thousands, except per share data)
                                                 (Unaudited)

    Revenues                                $416,931   $500,530

    Cost of goods sold                       304,337    391,077
                                             -------    -------

    Gross profit                             112,594    109,453

    Selling, general and administrative
     expenses                                 66,014     62,262
                                              ------     ------

    Operating income                          46,580     47,191

    Interest expense                             638        930

    Interest income                             (206)       (93)
                                                ----        ---

    Income before income taxes                46,148     46,354

    Income tax provision                      16,199     16,271
                                              ------     ------

    Net income                               $29,949    $30,083

    Net loss attributable to
     noncontrolling interest                     159        240
                                                 ---        ---

    Net income attributable to Powell
     Industries, Inc.                        $29,790    $29,843
                                             =======    =======

    Earnings per share attributable to
     Powell Industries, Inc.

        Basic                                  $2.59      $2.61
                                               =====      =====
        Diluted                                $2.56      $2.59
                                               =====      =====

    Weighted average shares:

        Basic                                 11,518     11,416
                                              ======     ======
        Diluted                               11,648     11,501
                                              ======     ======

    SELECTED FINANCIAL DATA:

    Capital Expenditures                      $3,461     $6,412
                                              ======     ======

    Depreciation and amortization             $9,997     $8,204
                                              ======     ======


                      POWELL INDUSTRIES, INC. & SUBSIDIARIES
                       CONDENSED CONSOLIDATED BALANCE SHEETS

                                                    June 30,  September 30,
                                                      2010       2009
                                                      ----       ----
                       (In thousands)              (Unaudited)

    Assets:

        Current assets                               $307,882 $315,003

        Property, plant and equipment (net)            65,046   61,036

        Other assets                                   46,066   28,801
                                                       ------   ------

            Total assets                             $418,994 $404,840
                                                     ======== ========

    Liabilities & stockholders' equity:

        Current liabilities                          $118,034 $149,142

        Long-term debt and capital lease
         obligations, net
         of current maturities                         17,595    4,800

        Deferred and other long-term liabilities        3,945    3,681

        Stockholders' equity and noncontrolling
         interest                                     279,420  247,217
                                                      -------  -------

            Total liabilities and stockholders'
             equity                                  $418,994 $404,840
                                                     ======== ========


                   POWELL INDUSTRIES, INC. & SUBSIDIARIES
                             BUSINESS SEGMENTS

                              Three Months Ended       Nine Months Ended
                             June 30,    June 30,   June 30,   June 30,
                                2010        2009      2010        2009
                            ---------   ---------  ---------  ---------
           (In thousands)        (Unaudited)             (Unaudited)

    Revenues:
        Electrical  Power
         Products             $131,191    $156,077  $396,834    $478,278
        Process Control
         Systems                 7,689       9,865    20,097      22,252
                                 -----       -----    ------      ------

        Total revenues        $138,880    $165,942  $416,931    $500,530
                              ========    ========  ========    ========

    Income before income
     taxes:

        Electrical  Power
         Products              $15,825     $17,731   $45,888     $42,993
        Process Control
         Systems                    24       2,835       260       3,361
                                   ---       -----       ---       -----

        Total income before
         income taxes          $15,849     $20,566   $46,148     $46,354
                               =======     =======   =======     =======


                                     June 30,        September 30,
                                       2010             2009
                                       ----             ----
             (In thousands)                  (Unaudited)
    Identifiable tangible assets:

        Electrical Power Products    $238,883         $258,012
        Process Control Systems        10,993            6,863
        Corporate                     130,761          117,398
                                      -------          -------

        Total identifiable tangible
         assets                      $380,637         $382,273
                                     ========         ========

    Backlog:

        Electrical Power Products    $267,800         $329,558
        Process Control Systems        42,073           36,198
                                       ------           ------

        Total backlog                $309,873         $365,756
                                     ========         ========

SOURCE Powell Industries, Inc.


Source: newswire



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