HOUSTON, May 7, 2019 /PRNewswire/ -- Powell
Industries, Inc. (NASDAQ: POWL), a leading supplier of custom
engineered solutions for the management, control and distribution
of electrical energy, today announced results for the fiscal 2019
second quarter ended March 31, 2019.
Revenues for the second quarter of fiscal 2019 were $123.7 million compared to revenues of
$109.4 million for the first quarter
of fiscal 2019 and revenues of $101.5
million for the second quarter of fiscal 2018. The
Company reported net income for the second quarter of $1.0 million, or $0.08 per diluted share, compared to a net loss
of $2.7 million, or $0.23 per diluted share, for the first quarter of
fiscal 2019 and a net loss of $3.3
million, or $0.29 per diluted
share, for the second quarter of fiscal 2018.
New orders placed during the second quarter of fiscal 2019
totaled $197 million compared to
$172 million in the first quarter of
fiscal 2019 and compared to $142
million in the second quarter of fiscal 2018. The
Company's backlog as of March 31, 2019 was $397 million up 23% sequentially from
$322 million as of December 31, 2018 and compared to $300 million at the end of last year's second
quarter.
Brett A. Cope, Powell's President and Chief Executive
Officer, stated, "Our second quarter results reflect a combination
of solid operational execution and improved utilization of our
people and facilities. New orders were strong in the quarter
driven largely by our core domestic oil, gas and petrochemical
customers. We also experienced improved orders across our
international operations as activity continues to strengthen in
several of our key global markets."
Cope added, "We are encouraged by the sustained level of market
activity and continue to build a backlog that reflects the
strengthening end market demand. In the second half of fiscal
2019, we will maintain our focus on operational execution and
delivering on the trust our customers have placed in Powell.
New inquiry activity was strong in the second quarter and we expect
this trend to continue through the rest of the fiscal year.
Overall, we expect that the growth and improved quality of our
backlog will position Powell for
modest improvement in the second half of 2019 over the first
half."
OUTLOOK
Commenting on the company's outlook, Michael Metcalf, Powell's Chief Financial Officer said, "We
continue to see strength in our core industrial markets resulting
in an improved backlog position. The business is beginning to
see this benefit through higher global factory volumes and the
associated cost efficiencies driving margin improvement over fiscal
year 2018. Additionally, with this increased level of market
activity, the business has delivered strong free cash flow through
the first half of fiscal 2019. Looking forward, we anticipate
that our focus on end market activity and project execution through
the second half of the year will result in a return to
profitability for the business in fiscal year 2019. We remain
committed to our prudent working capital management and believe
that we are well positioned to deliver on our growing backlog."
CONFERENCE CALL
Powell Industries has scheduled a conference call for
Wednesday, May 8, 2019 at
11:00 a.m. Eastern time. To
participate in the conference call, dial 412-902-0030 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 15, 2019.
To access the replay, dial 201-612-7415 using a passcode of
13689047#.
Investors, analysts and the general public will also have the
opportunity to listen to the conference call over the Internet by
visiting powellind.com. To listen to the live call on the web,
please visit the website at least 15 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 powellind.com.
Powell Industries, Inc., headquartered in Houston, designs, manufactures and services
custom-engineered equipment and systems for the distribution,
control and monitoring of electrical energy. Powell markets include large industrial
customers such as utilities, oil and gas producers, refineries,
petrochemical plants, pulp and paper producers, mining operations
and commuter railways. For more information, please
visit 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.
POWELL INDUSTRIES,
INC. & SUBSIDIARIES
|
CONSOLIDATED
STATEMENT OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
Six Months
Ended
March 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
123,737
|
|
$
|
101,505
|
|
$
|
233,088
|
|
$
|
191,689
|
Cost of goods
sold
|
103,662
|
|
89,084
|
|
198,382
|
|
168,713
|
Gross
profit
|
20,075
|
|
12,421
|
|
34,706
|
|
22,976
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
17,195
|
|
16,073
|
|
33,123
|
|
32,288
|
Research and
development expenses
|
1,663
|
|
1,636
|
|
3,357
|
|
3,294
|
Amortization of
intangible assets
|
44
|
|
44
|
|
88
|
|
117
|
Operating income
(loss)
|
1,173
|
|
(5,332)
|
|
(1,862)
|
|
(12,723)
|
|
|
|
|
|
|
|
|
Other
income
|
—
|
|
—
|
|
—
|
|
(507)
|
Interest
expense
|
55
|
|
51
|
|
111
|
|
102
|
Interest
income
|
(245)
|
|
(293)
|
|
(402)
|
|
(495)
|
Income (loss) before
income taxes
|
1,363
|
|
(5,090)
|
|
(1,571)
|
|
(11,823)
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
405
|
|
(1,760)
|
|
166
|
|
(2,831)
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
958
|
|
$
|
(3,330)
|
|
$
|
(1,737)
|
|
$
|
(8,992)
|
|
|
|
|
|
|
|
|
Income (loss) per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.08
|
|
$
|
(0.29)
|
|
$
|
(0.15)
|
|
$
|
(0.78)
|
Diluted
|
$
|
0.08
|
|
$
|
(0.29)
|
|
$
|
(0.15)
|
|
$
|
(0.78)
|
|
|
|
|
|
|
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
Basic
|
11,570
|
|
11,509
|
|
11,560
|
|
11,503
|
Diluted
|
11,632
|
|
11,509
|
|
11,560
|
|
11,503
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED FINANCIAL
DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
$
|
3,239
|
|
$
|
3,189
|
|
$
|
6,460
|
|
$
|
6,424
|
Capital
Expenditures
|
$
|
1,208
|
|
$
|
1,114
|
|
$
|
1,972
|
|
$
|
2,815
|
Dividends
Paid
|
$
|
2,996
|
|
$
|
2,977
|
|
$
|
5,988
|
|
$
|
5,954
|
POWELL INDUSTRIES,
INC. & SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
March 31,
2019
|
|
September 30,
2018
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
Cash,
cash equivalents and short-term investments
|
$
|
72,367
|
|
|
$
|
49,754
|
|
|
|
|
|
Restricted
cash
|
10,835
|
|
|
19,154
|
|
|
|
|
|
Other
current assets
|
181,157
|
|
|
207,754
|
|
|
|
|
|
Property, plant and equipment
(net)
|
122,836
|
|
|
128,764
|
|
|
|
|
|
Restricted cash (non-current)
|
7,791
|
|
|
5,987
|
|
|
|
|
|
Long-term assets
|
18,618
|
|
|
18,538
|
|
|
|
|
|
Total
assets
|
$
|
413,604
|
|
|
$
|
429,951
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity:
|
|
|
|
|
|
|
|
Current
liabilities
|
$
|
110,283
|
|
|
$
|
117,849
|
|
|
|
|
|
Long-term debt, net of current maturities
|
800
|
|
|
1,200
|
|
|
|
|
|
Deferred
and other long-term liabilities
|
10,227
|
|
|
9,258
|
|
|
|
|
|
Stockholders' equity
|
292,294
|
|
|
301,644
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
413,604
|
|
|
$
|
429,951
|
|
|
|
|
|
|
|
|
|
SELECTED FINANCIAL
DATA:
|
|
|
|
|
|
|
|
Working
capital
|
$
|
154,076
|
|
|
$
|
158,813
|
|
|
|
|
|
Contacts:
|
Mike Metcalf,
CFO
|
|
Powell Industries,
Inc.
|
|
713-947-4422
|
|
|
|
Ken Dennard / Natalie
Hairston
|
|
Dennard Lascar
Investor Relations
|
|
713-529-6600
|
View original
content:http://www.prnewswire.com/news-releases/powell-industries-announces-fiscal-2019-second-quarter-results-300845566.html
SOURCE Powell Industries, Inc.