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Powell Industries Announces Fiscal 2011 Third Quarter Results

August 2, 2011

HOUSTON, Aug. 2, 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 third quarter ending June 30, 2011.

Revenues for the third quarter of fiscal 2011 were $142.1 million compared to revenues of $138.9 million for the third quarter of fiscal 2010. Net income for the third quarter was $1.7 million, or $0.14 per diluted share, compared to net income of $10.3 million, or $0.88 per diluted share, in the third quarter of fiscal 2010.

Patrick L. McDonald, President and Chief Executive Officer, stated, “We had another strong order input quarter. We are beginning to see some market stabilization in the oil and gas sector; however, most of the activity continues to occur outside the U.S. Other than oil and gas, markets in which we compete continue to be soft, especially those tied to municipal funding.

“Based on our near term orders in backlog and with delivery schedules firming, we have begun hiring and training people, preparing them for a near term rise in our business. We expect our revenues and profits to begin improving between now and the end of the fiscal year.”

New orders placed during the third quarter of fiscal 2011 totaled $198 million compared to $217 million in the second quarter of fiscal 2011 and compared to $136 million in the third quarter of fiscal 2010. The Company’s backlog as of June 30, 2011 was $491 million compared to $437 million as of March 31, 2011 and compared to $310 million at the end of last year’s third 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 $545 million and $570 million and full year fiscal 2011 earnings to range between $1.05 and $1.15 per diluted share.

CONFERENCE CALL

Powell Industries has scheduled a conference call for Wednesday, August 3, 2011 at 11:00 a.m. eastern time. To participate in the conference call, please 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 August 10, 2011. To access the replay, dial 303-590-3030 using a passcode of 4453437#. Investors may also listen to the conference call live over the Internet by visiting http://www.powellind.com. An archive of the web cast 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
                                 June 30,   June 30,
                                   2011       2010
                                ---------  ---------
     (In thousands, except per
            share data)
                                      (Unaudited)

     Revenues                    $142,135   $138,880

     Cost of goods sold           118,637    100,636
                                  -------    -------

     Gross profit                  23,498     38,244

     Selling, general and
      administrative expenses      19,410     21,084

     Amortization of
      intangible assets             1,237      1,132
                                    -----      -----

     Operating income               2,851     16,028

     Other income                     ---        ---

     Interest expense                  88        228

     Interest income                  (66)       (49)
                                      ---        ---

     Income before income
      taxes                         2,829     15,849

     Income tax provision           1,122      5,530
                                    -----      -----

     Net income                     1,707     10,319

     Net income attributable
      to noncontrolling
      interest                        ---        (33)
                                      ---        ---

     Net income attributable
      to Powell Industries,
      Inc.                         $1,707    $10,286
                                   ======    =======

     Earnings per share
      attributable to Powell
      Industries, Inc.:

        Basic                       $0.15      $0.89
                                    =====      =====
        Diluted                     $0.14      $0.88
                                    =====      =====

     Weighted average shares:

        Basic                      11,740     11,556
                                   ======     ======
        Diluted                    11,812     11,679
                                   ======     ======

     SELECTED FINANCIAL DATA:

     Capital Expenditures          $1,405     $2,001
                                   ======     ======

     Depreciation and
      amortization                 $4,005     $3,628
                                   ======     ======


                                    Nine Months Ended
                                 June 30,    June 30,
                                    2011        2010
                                ---------   ---------
     (In thousands, except per
            share data)
                                       (Unaudited)

     Revenues                     $392,407    $416,931

     Cost of goods sold            317,401     304,337
                                   -------     -------

     Gross profit                   75,006     112,594

     Selling, general and
      administrative expenses       61,876      62,821

     Amortization of
      intangible assets              3,658       3,193
                                     -----       -----

     Operating income                9,472      46,580

     Other income                   (1,229)        ---

     Interest expense                  296         638

     Interest income                  (173)       (206)
                                      ----        ----

     Income before income
      taxes                         10,578      46,148

     Income tax provision            3,940      16,199
                                     -----      ------

     Net income                      6,638      29,949

     Net income attributable
      to noncontrolling
      interest                         ---        (159)
                                       ---        ----

     Net income attributable
      to Powell Industries,
      Inc.                          $6,638     $29,790
                                    ======     =======

     Earnings per share
      attributable to Powell
      Industries, Inc.:

        Basic                        $0.57       $2.59
                                     =====       =====
        Diluted                      $0.56       $2.56
                                     =====       =====

     Weighted average shares:

        Basic                       11,730      11,518
                                    ======      ======
        Diluted                     11,806      11,648
                                    ======      ======

     SELECTED FINANCIAL DATA:

     Capital Expenditures           $4,072      $3,461
                                    ======      ======

     Depreciation and
      amortization                 $11,498      $9,997
                                   =======      ======

        POWELL INDUSTRIES, INC. & SUBSIDIARIES
        CONDENSED CONSOLIDATED BALANCE SHEETS
                                                     September
                                    June 30,             30,
                                          2011             2010
                                          ----             ----
            (In thousands)         (Unaudited)

    Assets:

        Current assets                $346,714         $302,191

        Property, plant and
         equipment (net)                59,874           63,676

        Other assets                    33,194           34,845
                                        ------           ------

           Total assets               $439,782         $400,712
                                      ========         ========

    Liabilities & equity:

        Current liabilities           $144,155         $114,746

        Long-term debt and
         capital lease
         obligations, net of
         current maturities              4,387            5,202

        Deferred and other
         long-term
         liabilities                     4,163            3,461

        Stockholders' equity           287,077          277,303
                                       -------          -------

           Total liabilities and
            equity                    $439,782         $400,712
                                      ========         ========

                 POWELL INDUSTRIES, INC. & SUBSIDIARIES
                           BUSINESS SEGMENTS
                                    Three Months Ended
                                  June 30,    June 30,
                                     2011        2010
                                 ---------   ---------
           (In thousands)               (Unaudited)

     Revenues:
        Electrical  Power
         Products                  $135,191    $129,396
        Process Control Systems       6,944       9,484
                                      -----       -----

        Total revenues             $142,135    $138,880
                                   ========    ========

     Income before income
      taxes:

        Electrical  Power
         Products                    $2,689     $14,939
        Process Control Systems         140         910
                                        ---         ---

        Total income before
         income taxes                $2,829     $15,849
                                     ======     =======


                                    Nine Months Ended
                                  June 30,   June 30,
                                    2011        2010
                                 ---------  ---------
           (In thousands)              (Unaudited)

     Revenues:
        Electrical  Power
         Products                 $371,397    $390,926
        Process Control Systems     21,010      26,005
                                    ------      ------

        Total revenues            $392,407    $416,931
                                  ========    ========

     Income before income
      taxes:

        Electrical  Power
         Products                  $10,968     $43,107
        Process Control Systems       (390)      3,041
                                      ----       -----

        Total income before
         income taxes              $10,578     $46,148
                                   =======     =======


                                                  September
                                   June 30,           30,
                                       2011             2010
                                       ----             ----
            (In thousands)                 (Unaudited)
    Identifiable tangible
     assets:

        Electrical Power Products  $246,161         $230,111
        Process Control Systems       9,693            9,617
        Corporate                   159,716          133,635
                                    -------          -------

        Total identifiable
         tangible assets           $415,570         $373,363
                                   ========         ========

    Backlog:

        Electrical Power Products  $440,265         $245,433
        Process Control Systems      51,180           36,870
                                     ------           ------

        Total backlog              $491,445         $282,303
                                   ========         ========

SOURCE Powell Industries, Inc.


Source: newswire