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Powell Industries Announces Fiscal 2013 Fourth Quarter And Year-End Results

 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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