Powell Industries Announces Fiscal 2014 First Quarter Results

        Powell Industries Announces Fiscal 2014 First Quarter Results

Reports net income of $0.68 per diluted share

PR Newswire

HOUSTON, Feb. 4, 2014

HOUSTON, Feb.4, 2014 /PRNewswire/ --Powell Industries, Inc. (NASDAQ: POWL)
("Powell"), a leading supplier of custom engineered solutions for the
distribution and control of electrical energy, today announced results for the
fiscal 2014 first quarter ended December 31, 2013.

Revenues for the first quarter of fiscal 2014 were $171.9 million compared to
revenues of $146.9 million for the first quarter of fiscal 2013. Net income
for the first quarter of fiscal 2014 was $8.3 million or $0.68 per diluted
share, compared to net income of $7.4 million, or $0.62 per diluted share, in
the first quarter of fiscal 2013. On January 15, 2014, subsequent to the
first quarter of fiscal 2014, Powell closed the sale of its subsidiary,
Transdyn, Inc. and has recorded the first quarter results of Transdyn as
discontinued operations. Net income from continuing operations for the first
quarter was $7.3 million or $0.60 per diluted share.

Michael A. Lucas, President and Chief Executive Officer, stated, "We are
pleased to begin the year with a solid first quarter, with healthy revenue
growth and order rates continuing at the pace of recent quarters. During the
first quarter, we received orders for several smaller petrochemical projects,
and indications point to larger project awards occurring later this year.
Activity in the Canadian market continues to be strong, and orders for the
first quarter were ahead of our expectations as we began to see the initial
results from the investments we made in Canada. We continue to see
opportunities in the oil and gas market, particularly in pipeline,
petrochemical and LNG projects.

"Although we sold our intelligent transportation business, we retained key
strategic elements that will continue to support our customers with electrical
power management and industrial control solutions. None of the changes
announced this quarter alters our expectations for fiscal 2014 or our positive
market view."

New orders from continuing operations in the fiscal 2014 first quarter were
$192 million compared to $196 million in the fourth quarter of fiscal 2013 and
compared to $251 million in the first quarter of fiscal 2013. The Company's
backlog for continuing operations as of December 31, 2013 was $455 million
compared to $438 million as of September 30, 2013 and compared to $469 million
at the end of last year's first quarter.

On December 30, 2013, Powell amended a supply agreement with one of its major
customers, which resulted in a deferred credit of $5.2 million, net of tax,
which will be recognized over the four year life of the amended agreement,
which began January 1, 2014.

On January 15, 2014, subsequent to the first quarter of fiscal 2014, Powell
closed the sale of its subsidiary, Transdyn, Inc. to Kapsch TrafficCom, a
global provider of electronic toll collection systems, for a price of $16
million subject to post-closing working capital adjustments. Transdyn had
been reported in Powell's Process Control Systems business segment. Powell
retained important strategic operations from its Process Control Systems
business segment that serve the key markets of oil and gas, industrial,
utility and traction power, and these operations have been integrated into the
Electrical Power Products segment.

OUTLOOK
The following statements are based on the current expectations of the Company
for its continuing operations. 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
continues to expect full year fiscal 2014 revenues from continuing operations
to range between $700 million and $750 million. Fiscal year 2014 earnings
guidance from continuing operations has increased to a range of $2.85 to $3.35
per diluted share from the previous guidance of $2.75 to $3.25 per diluted
share. This earnings guidance includes the current year amortization of the
deferred credit related to Powell's amended supply agreement of $0.08 per
diluted share and excludes the discontinued operations of Transdyn, Inc. and
the associated gain from the sale of the business that will be recorded in the
fiscal 2014 second quarter.

CONFERENCE CALL
Powell Industries has scheduled a conference call for Wednesday, February 5,
2014 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 February 12, 2014. To access the replay, dial 303-590-3030 using a
passcode of 4663343#.

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. 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: Don R. Madison, CFO
          Powell Industries, Inc.
          713-947-4422



POWELL INDUSTRIES, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                                              Three Months Ended

                                              December 31,
                                              2013             2012
(In thousands, except per share data)         (Unaudited)
Revenues                                      $  171,872      $  146,858
Cost of goods sold                            136,714          114,456
Gross profit                                  35,158           32,402
Selling, general and administrative expenses  21,632           19,686
Research and development expenses             1,839            1,714
Amortization of intangible assets             416              415
Operating income                              11,271           10,587
Interest expense                              69               61
Interest income                               (3)              (19)
Income before income taxes                    11,205           10,545
Income tax provision                          3,937            3,425
Income from continuing operations             7,268            7,120
Income from discontinued operations, net of   987              265
tax of $502 and $144
Net income                                    $    8,255   $    7,385
Earnings per share:
 Continuing operations                 $     0.61  $     0.60
 Discontinued operations               0.08             0.02
  Basic earnings per share      $     0.69  $     0.62
 Continuing operations                 $     0.60  $     0.60
 Discontinued operations               0.08             0.02
 Diluted earnings per share    $     0.68  $     0.62
Weighted average shares:
 Basic                                 11,994           11,922
 Diluted                               12,054           12,000
SELECTED FINANCIAL DATA:
Depreciation and Amortization                 $    2,978   $     3,072
Capital Expenditures                          $    5,764   $    13,375



POWELL INDUSTRIES, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
                                                   December 31,  September 30,
                                                   2013          2013
(In thousands)                                     (Unaudited)
Assets:
 Current assets                                $  323,666  $   341,931
 Current assets held for sale                  20,903        15,409
 Property, plant and equipment (net)           146,272       144,495
 Long-term assets                              28,606        28,924
 Long-term assets held for sale                155           144
 Total assets                               $  519,602  $   530,903
Liabilities & equity:
 Current liabilities                           $  127,173  $   150,215
 Current liabilities held for sale             19,006        17,848
 Long-term debt and capital lease obligations, 2,800         3,200
net of current maturities
 Deferred and other long-term liabilities      10,876        4,210
 Long-term liabilities held for sale           191           204
 Stockholders' equity                          359,556       355,226
 Total liabilities and stockholders' equity $  519,602  $   530,903



SOURCE Powell Industries, Inc.

Website: http://www.powellind.com
 
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