Powell Industries Announces Fiscal 2013 Third Quarter Results PR Newswire HOUSTON, Aug. 6, 2013 HOUSTON, Aug. 6, 2013 /PRNewswire/ --Powell Industries, Inc. (NASDAQ: POWL), a leading supplier of custom engineered solutions for the management and control of electrical energy and other critical processes, today announced results for the fiscal 2013 third quarter ending June 30, 2013. Revenues for the third quarter of fiscal 2013 were $179.5 million compared to revenues of $194.1 million for the third quarter of fiscal 2012. Net income for the third quarter of fiscal 2013 was $9.3 million, or $0.77 per diluted share, compared to $12.1 million, or $1.02 per diluted share, in the third quarter of fiscal 2012. The third quarter fiscal 2013 results include costs of approximately $1.7 million, or $0.12 per diluted share, related to workforce restructuring in the United Kingdom and relocation costs for the Company's two new manufacturing facilities. Michael A. Lucas, Chief Executive Officer, stated, "Our third quarter proved to be challenging as we worked to mitigate customer-requested schedule changes of a few select large projects. The reduction in revenue due to these delays on the larger projects was difficult to overcome, but I am pleased that strong project execution and limited schedule interruptions on small to mid-sized projects generated solid earnings. "The uncertainty around the timing of large projects is expected to continue into fiscal 2014, impacting both the timing of new awards as well as the execution of orders in the backlog, while activity on small to mid-sized projects continues at steady and healthy levels. Overall, prospects for new capital investments in our key markets are strong. The oil and gas market remains solid, and we are currently supporting proposal work for both onshore and offshore projects. Engineering support in the planning phase for several large petrochemical projects continues at a good pace, and prospects for LNG opportunities, in the longer term, are improving. "We are pleased with the progress on our two facility expansions. Initial production in our new Edmonton Canada facility has begun, and we expect to complete that transition by the end of September. We will start moving into our new Houston facility later this month. These new facilities, located in important geographic markets, are crucial to our ability to manage and support the number and size of the capital investments we expect to be made by our customer base in the months and years ahead." New orders placed during the third quarter of fiscal 2013 totaled approximately $155 million compared to $124 million in the second quarter of fiscal 2013 and $133 million in the third quarter of fiscal 2012. The Company's backlog as of June 30, 2013 was $496 million compared to $522 million as of March 31, 2013 and $433 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, as well as potential additional customer schedule changes, Powell Industries has reduced its expected full year fiscal 2013 revenue range to between $650 million and $675 million from its previous guidance of $675 million to $700 million. Full year fiscal 2013 earnings remain unchanged from previous guidance and are expected to range between $2.30 and $2.55 per diluted share. Included in the Company's earnings outlook is an estimate of $0.25 per diluted share for one-time costs related to the start-up of two new manufacturing facilities. CONFERENCE CALL Powell Industries has scheduled a conference call for Wednesday, August 7, 2013 at 11:00 a.m. eastern time. To participate in the conference call, dial 480-629-9835 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, 2013. To access the replay, dial 303-590-3030 using a passcode of 4627818#. 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 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 powellind.com. Powell Industries, Inc., headquartered in Houston, engineers packaged solutions and systems for the control, distribution and management of electrical energy and other dynamic processes. Powell markets include 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 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 POWELL INDUSTRIES, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended Nine Months Ended June 30, 2013 June 30, June 30, June 30, 2012 2013 2012 (In thousands, except per (Unaudited) (Unaudited) share data) Revenues $ 179,519 $ 194,093 $ 487,375 $ 533,035 Cost of goods sold 141,034 150,250 383,391 434,577 Gross profit 38,485 43,843 103,984 98,458 Selling, general and 23,805 24,826 70,238 66,112 administrative expenses Amortization of 415 704 1,243 2,111 intangible assets Restructuring and 1,717 -- 1,717 -- relocation expenses Operating income 12,548 18,313 30,786 30,235 Other income -- -- (1,709) -- Interest expense 47 59 151 203 Interest income (7) (25) (28) (88) Income before income 12,508 18,279 32,372 30,120 taxes Income tax provision 3,203 6,141 8,864 12,316 Net income $ 9,305 $ 12,138 $ 23,508 $ 17,804 Earnings per share: Basic $ $ $ $ 0.78 1.03 1.97 1.51 Diluted $ $ $ $ 0.77 1.02 1.96 1.50 Weighted average shares: Basic 11,941 11,812 11,932 11,782 Diluted 12,016 11,861 12,007 11,834 SELECTED FINANCIAL DATA: Capital expenditures $ 20,458 $ 6,667 $ 53,728 $ 25,546 Depreciation and $ 2,348 $ 3,391 $ $ amortization 7,775 9,824 POWELL INDUSTRIES, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS June 30, September 30, 2013 2012 (In thousands) (Unaudited) Assets: Current assets $ 354,275 $ 346,410 Property, plant and equipment (net) 123,228 78,652 Other assets 23,709 23,250 Total Assets $ 501,212 $ 448,312 Liabilities and Stockholders' Equity: Current liabilities $ 160,641 $ 130,873 Long-term debt and capital lease 3,200 3,630 obligations, net of current maturities Deferred and other long-term 4,242 3,706 liabilities Stockholders' equity 333,129 310,103 Total Liabilities and $ 501,212 $ 448,312 Stockholders' Equity POWELL INDUSTRIES, INC. & SUBSIDIARIES BUSINESS SEGMENTS Three Months Ended Nine Months Ended June 30, 2013 June 30, 2012 June 30, 2013 June 30, 2012 (In thousands) (Unaudited) (Unaudited) Revenues: Electrical Power $ 170,048 $ 186,272 $ 461,443 $ 510,910 Products Process Control Systems 9,471 7,821 25,932 22,125 Total Revenues $ 179,519 $ 194,093 $ 487,375 $ 533,035 Income (loss) Before Income Taxes: Electrical Power $ 12,149 $ 18,422 $ 32,133 $ 30,066 Products Process Control Systems 359 (143) 239 54 Total Income Before $ 12,508 $ 18,279 $ 32,372 $ 30,120 Income Taxes June 30, September 30, 2013 2012 (In thousands) (Unaudited) Identifiable tangible assets: Electrical Power Products $ 297,893 $ 304,894 Process Control Systems 14,675 14,539 Corporate 174,204 114,455 Total Identifiable Tangible Assets $ 486,772 $ 433,888 Backlog: Electrical Power Products $ 412,028 $ 361,853 Process Control Systems 84,114 74,838 Total Backlog $ 496,142 $ 436,691 SOURCE Powell Industries, Inc. Website: http://www.powellind.com
Powell Industries Announces Fiscal 2013 Third Quarter Results
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