Powell Industries Announces Fiscal 2011 Second Quarter Results
HOUSTON, May 3, 2011 /PRNewswire/ — 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.
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, March 31, March 31, March 31,
2011 2010 2011 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, March 31, March 31, March 31,
2011 2010 2011 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
======== ========
SOURCE Powell Industries, Inc.
