August 6, 2019 - 4:20 PM EDT
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Powell Industries Announces Fiscal 2019 Third Quarter Results

Highest Backlog Since Fiscal 2016

HOUSTON, Aug. 6, 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 third quarter ended June 30, 2019.

Revenues for the third quarter of fiscal 2019 were $135.6 million compared to revenues of $123.7 million for the second quarter of fiscal 2019 and revenues of $122.1 million for the third quarter of fiscal 2018.  The Company reported net income for the third quarter of $5.1 million, or $0.44 per diluted share, compared to net income of $1.0 million, or $0.08 per diluted share, for the second quarter of fiscal 2019 and net income of $0.3 million, or $0.03 per diluted share, for the third quarter of fiscal 2018.

New orders placed during the third quarter of fiscal 2019 totaled $145 million compared to $197 million in the second quarter of fiscal 2019 and compared to $139 million in the third quarter of fiscal 2018.  The Company's backlog as of June 30, 2019 was $407 million up 2.5% sequentially from $397 million as of March 31, 2019 and compared to $316 million at the end of last year's third quarter.

Brett A. Cope, Powell's President and Chief Executive Officer, stated, "We continue to build on the momentum from the previous quarter, delivering on our customer commitments while also improving the utilization of our people and facilities.  Our third quarter results reflect our continued focus on operational execution across the company while we continue to work towards an improved quality and mix of our backlog."

Cope added, "Powell's $145 million of new orders in the third quarter were driven more broadly from our core oil, gas, and petrochemical customers, as well as the industrial and utility sectors from both domestic and international markets. We enter the fourth quarter with a strong backlog and a healthy funnel of inquiry activity, particularly in the US Gulf Coast region where we continue to support the development of several, larger projects driven in part by the availability of low cost natural gas."

OUTLOOK

Commenting on the company's outlook, Michael Metcalf, Powell's Chief Financial Officer said, "Looking ahead, we expect continued growth across our key end markets, specifically within the industrial sector.  Similar to the third quarter, our fourth quarter focus on operational priorities should generate increased productivity from both volume leverage and associated SG&A cost efficiencies, all of which are providing margin uplift.  Additionally, we expect to deliver solid operating cash flow through the remainder of fiscal 2019 with strong working capital discipline."

"Finally, we anticipate that our customer focus, coupled with sustained end market activity will provide a platform for continued profitability in the fourth quarter of fiscal 2019 and into fiscal 2020," Metcalf concluded.

CONFERENCE CALL

Powell Industries has scheduled a conference call for Wednesday, August 7, 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 August 14, 2019.  To access the replay, dial 201-612-7415 using a passcode of 13691710#.

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.

Contacts:

Michael W. Metcalf, CFO


Powell Industries, Inc.


713-947-4422




Ken Dennard / Natalie Hairston


Dennard Lascar Investor Relations


[email protected]


713-529-6600




POWELL INDUSTRIES, INC. & SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS



Three Months Ended
June 30,


Nine Months Ended
June 30,


2019


2018


2019


2018

(In thousands, except per share data)









(Unaudited)









Revenues

$

135,588



$

122,130



$

368,676



$

313,819


Cost of goods sold

111,873



103,755



310,255



272,469


Gross profit

23,715



18,375



58,421



41,350










Selling, general and administrative expenses

17,117



16,174



50,240



48,462


Research and development expenses

1,631



1,632



4,988



4,926


Amortization of intangible assets

44



44



132



161


Insurance proceeds

(950)





(950)




Restructuring and other, net

233





233




Operating income (loss)

5,640



525



3,778



(12,199)










Other income







(507)


Interest expense

59



51



170



153


Interest income

(305)



(215)



(707)



(711)


Income (loss) before income taxes

5,886



689



4,315



(11,134)










Income tax expense (benefit)

797



388



963



(2,443)










Net income (loss)

$

5,089



$

301



$

3,352



$

(8,691)










Income (loss) per share:








   Basic

$

0.44



$

0.03



$

0.29



$

(0.76)


   Diluted

$

0.44



$

0.03



$

0.29



$

(0.76)










Weighted average shares:








   Basic

11,579



11,514



11,567



11,503


   Diluted

11,603



11,587



11,589



11,503


















SELECTED FINANCIAL DATA:
















Depreciation and Amortization

$

2,948



$

3,231



$

9,408



$

9,655


Capital Expenditures

$

1,269



$

1,163



$

3,241



$

3,978


Dividends Paid

$

3,003



$

2,980



$

8,991



$

8,934





POWELL INDUSTRIES, INC. & SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS



June 30, 2019


September 30, 2018

(In thousands)

(Unaudited)





Assets:








  Cash, cash equivalents and short-term investments

$

78,030



$

49,754






 Restricted cash

8,188



19,154






  Other current assets

201,052



207,754






  Property, plant and equipment (net)

121,909



128,764






 Restricted cash (non-current)

8,476



5,987






  Long-term assets

19,451



18,538






      Total assets

$

437,106



$

429,951










Liabilities and equity:








  Current liabilities

$

129,801



$

117,849






  Long-term debt, net of current maturities

800



1,200






  Deferred and other long-term liabilities

10,846



9,258






  Stockholders' equity

295,659



301,644






      Total liabilities and stockholders' equity

$

437,106



$

429,951










SELECTED FINANCIAL DATA:








  Working capital

$

157,469



$

158,813






 

 

Cision View original content:http://www.prnewswire.com/news-releases/powell-industries-announces-fiscal-2019-third-quarter-results-300897123.html

SOURCE Powell Industries, Inc.


Source: PR Newswire (August 6, 2019 - 4:20 PM EDT)

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