Powell Industries Announces Fiscal 2013 Fourth Quarter And Year-End Results Reports record annual orders of $758 million Reports second highest year-end backlog of $517 million PR Newswire HOUSTON, Dec. 3, 2013 HOUSTON, Dec. 3, 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 fourth quarter and year ended September 30, 2013. Revenues for the fourth quarter of fiscal 2013 were $187.4 million compared to revenues of $184.2 million for the fourth quarter of fiscal 2012. Net income for the fourth quarter of 2013 was $18.6 million, or $1.54 per diluted share, compared to net income of $11.9 million, or $0.99 per diluted share, in the fourth quarter of fiscal 2012. Fourth quarter fiscal 2013 results include the following items: $2.9 million from the settlement of a Canadian project claim; restructuring and relocation expenses of $1.7 million pertaining to the facilities expansion; and a $7.1 million release of tax valuation allowance set up in prior years for losses in Canada. Excluding these items, net income for the fourth quarter of fiscal 2013 was $10.3 million, or $0.86 per diluted share. A reconciliation of this non-GAAP financial measure to net income is included in the financial tables below. Michael A. Lucas, President and Chief Executive Officer, stated, "We are pleased to conclude this fiscal year with a solid fourth quarter, resulting in strong full year results. We generated annual revenues of $675 million, second only to last year's record revenues. Additionally, we ended the year with record bookings and the second largest year-end backlog of the Company. "We have also completed the construction and relocation into new production facilities in Houston and Edmonton, both of which are now fully operational. With this expansion complete, we are well positioned to support our customers and their capital projects in the coming years. "The strong finish to fiscal 2013 gives us excellent momentum going into 2014. We continue to see strength in the oil and gas market, particularly the growing petrochemical investment, LNG terminal facilities to allow for the export of U.S. natural gas, and deep water production facilities in the Gulf of Mexico and around the world." New orders placed during the fourth quarter of fiscal 2013 totaled $207 million compared to $155 million in the third quarter of fiscal 2013 and compared to $186 million in the fourth quarter of fiscal 2012. The Company's backlog as of September 30, 2013 was $517 million compared to $496 million as of June 30, 2013 and compared to $437 million at the end of last year's fourth quarter. FISCAL 2013 RESULTS Revenues for fiscal 2013 were $674.8 million compared to $717.2 million in fiscal 2012. Net income for fiscal 2013 was $42.1 million, or $3.51 per diluted share, compared to net income of $29.7 million, or $2.49 per diluted share, last year. Excluding certain fourth quarter items discussed above and a settlement received in the second quarter, net income for fiscal 2013 was $33.8 million, or $2.82 per diluted share. A reconciliation of this non-GAAP financial measure to net income is included in the financial tables below. 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 currently expects full year fiscal 2014 revenues to range between $700 million and $750 million and full year fiscal 2014 earnings to range between $2.75 and $3.25 per diluted share. CONFERENCE CALL Powell Industries has scheduled a conference call for Wednesday, December 4, 2013 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 December 11, 2013. To access the replay, dial 303-590-3030 using a passcode of 4650589#. 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. This press release contains references to certain non-GAAP financial measures discussed above. Please see the financial table below for more details on these non-GAAP financial measures, including a reconciliation of these non-GAAP financial measures to net income and the reasons management believes these measures are useful to investors. Contacts: Don R. Madison, CFO Powell Industries, Inc. 713-947-4422 POWELL INDUSTRIES, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS Three Months Ended Years Ended Sept 30, 2013 Sept 30, Sept 30, Sept 30, 2012 2013 2012 (In thousands, except per (Unaudited) share data) Revenues $ 187,397 $ 184,159 $ 674,772 $ 717,194 Cost of goods sold 144,545 142,679 527,936 577,256 Gross profit 42,852 41,480 146,836 139,938 Selling, general and 19,635 20,756 83,539 81,295 administrative expenses Research and development 2,187 2,079 8,521 7,652 expenses Amortization of 416 488 1,659 2,599 intangible assets Restructuring and 2,210 --- 3,927 -- relocation costs Operating income 18,404 18,157 49,190 48,392 Gain on settlement -- -- (1,709) -- Interest expense 51 69 202 272 Interest income (7) (26) (35) (114) Income before income 18,360 18,114 50,732 48,234 taxes Income tax provision (208) 6,261 8,656 18,577 (benefit) Net income $ 18,568 $ 11,853 $ 42,076 $ 29,657 Earnings per share: Basic $ $ $ $ 1.55 0.99 3.52 2.50 Diluted $ $ $ $ 1.54 0.99 3.51 2.49 Weighted average shares: Basic 11,970 11,916 11,948 11,850 Diluted 12,028 11,971 11,994 11,925 SELECTED FINANCIAL DATA: Capital expenditures $ 20,641 $ 3,517 $ 74,369 $ 29,063 Depreciation and $ 2,415 $ 3,253 $ 10,190 $ 13,077 amortization POWELL INDUSTRIES, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS September 30, September 30, 2013 2012 (In thousands) Assets: Current assets $ 357,341 $ 346,410 Property, plant and equipment (net) 144,589 78,652 Other assets 28,973 23,250 Total Assets $ 530,903 $ 448,312 Liabilities and Stockholders' Equity: Current liabilities $ 168,063 $ 130,873 Long-term debt and capital lease 3,200 3,630 obligations, net of current maturities Deferred and other long-term 4,414 3,706 liabilities Stockholders' equity 355,226 310,103 Total Liabilities and $ 530,903 $ 448,312 Stockholders' Equity POWELL INDUSTRIES, INC. & SUBSIDIARIES BUSINESS SEGMENTS Three Months Ended Years Ended Sept 30, 2013 Sept 30, 2012 Sept 30, 2013 Sept 30, 2012 (In thousands) (Unaudited) Revenues: Electrical Power $ 173,810 $ 175,671 $ 635,253 $ 686,581 Products Process Control 13,587 8,488 39,519 30,613 Systems Total Revenues $ 187,397 $ 184,159 $ 674,772 $ 717,194 Income Before Income Taxes: Electrical Power $ 17,288 $ 17,989 $ 49,421 $ 48,055 Products Process Control 1,072 125 1,311 179 Systems Total Income Before $ 18,360 $ 18,114 $ 50,732 $ 48,234 Income Taxes September 30, September 30, 2013 2012 (In thousands) Segment Assets: Electrical Power Products $ 334,169 $ 319,215 Process Control Systems 17,083 14,540 Corporate 179,651 114,557 Total Segment Assets $ 530,903 $ 448,312 Backlog: Electrical Power Products $ 435,022 $ 361,853 Process Control Systems 81,574 74,838 Total Backlog $ 516,596 $ 436,691 POWELL INDUSTRIES, INC. & SUBSIDIARIES NON-GAAP NET INCOME RECONCILIATION Three Months Ended Years Ended Sept 30, 2013 Sept 30, Sept 30, Sept 30, 2012 2013 2012 (In thousands) (Unaudited) (Unaudited) Net Income: Net income $ 18,568 $ 11,853 $ 42,076 $ 29,657 Canadian project claim (2,850) --- (2,850) --- settlement, net of tax Gain on settlement, net of --- --- (1,328) --- tax Restructuring and relocation expenses, net 1,654 --- 2,964 --- of tax Release of Canadian tax (7,079) --- (7,079) --- valuation allowance Non-GAAP net income $ 10,293 $ 11,853 $ 33,783 $ 29,657 Diluted shares outstanding 12,028 11,971 11,994 11,925 Diluted Earnings Per Share: Earnings per share $ 1.54 $ 0.99 $ 3.51 $ 2.49 Non-GAAP earnings per $ 0.86 $ 0.99 $ 2.82 $ 2.49 share For all periods presented, the Company defines non-GAAP net income as net income which excludes: 1) Canadian project claim settlement, net of tax; 2) Gain on legal settlement, net of tax; 3) Restructuring and relocation expenses, net of tax; and 4) Release of Canadian tax valuation allowance. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. However, the Company believes by excluding these items, these non-GAAP financial measures are helpful in comparing the historical results to current results and measuring operating earnings trends. The Company also believes the disclosure of non-GAAP net income will help investors meaningfully evaluate and compare its cash flow generating capacity from quarter to quarter and year to year. The non-GAAP adjustments, and the basis for excluding them from GAAP financial measures, are outlined below: oCanadian project claim settlement, net of tax – In the fourth quarter, a project claim recovery was received on a large industrial project at Powell Canada. This project experienced significant delays and cost overruns in fiscal 2012. oGain on settlement, net of tax – In the second quarter, we settled a lawsuit filed against the previous owners of Powell Canada. oRestructuring and relocation expenses, net of tax – Significant expenses were incurred related to relocation efforts in connection with the construction of two new manufacturing facilities in fiscal 2013. We also incurred expenses related to the restructuring of our operations in the United Kingdom. oRelease of Canadian tax valuation allowance - In the fourth quarter, we released a tax valuation allowance recorded as an offset to prior years' Canadian pre-tax losses because we believe it is more likely than not that market conditions and our operating results going forward will allow us to realize the deferred tax assets associated with prior year losses in Canada. Due to the nature of these items, the Company does not believe that these items reflect its ongoing operations. SOURCE Powell Industries, Inc. Website: http://www.powellind.com
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Powell Industries Announces Fiscal 2013 Fourth Quarter And Year-End Results
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