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Powell Industries Announces Fiscal 2011 Second Quarter Results

May 3, 2011

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.


Source: newswire



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