Powell Industries Announces Fiscal 2014 Second Quarter Results

        Powell Industries Announces Fiscal 2014 Second Quarter Results  PR Newswire  HOUSTON, May 6, 2014  HOUSTON, May 6, 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 second quarter ended March 31, 2014.  Revenues for the second quarter of fiscal 2014 were $162.3 million compared to revenues of $146.0 million for the second quarter of fiscal 2013. Income from continuing operations for the second quarter of fiscal 2014 was $7.0 million, or $0.58 per diluted share, compared to income from continuing operations of $6.2 million, or $0.52 per diluted share, in the second quarter of fiscal 2013.  On January 15, 2014, Powell closed the sale of Transdyn, Inc. and has recorded the results of Transdyn as discontinued operations. Income from discontinued operations in the second quarter of 2014, including the gain on sale, was $8.6 million, or $0.71 per diluted share. Net income for the second quarter of fiscal 2014 was $15.6 million, or $1.29 per diluted share.  Michael A. Lucas, President and Chief Executive Officer, stated, "We had a solid second quarter, with improving margins as a result of our process enhancements and cost saving activities, and have a healthy ending backlog. At the request of customers, we rescheduled shipments of a few large projects, which will result in some revenues being pushed into subsequent quarters. These delivery changes are not uncommon to our project-based business, and we are working to add some short cycle work to fill available short-term capacity. Additionally, we continued to manage efficiency and utilization challenges as we ramped up capacity in our Canadian operations. In spite of this temporary issue, we are delivering on time and meeting customer commitments.  "We continue to see strength in the oil and gas market, with a significant portion of our activity in North America. We remain optimistic about the key segments of pipelines, petrochemical and LNG. Inquiry activity continues at a healthy pace, as we leverage our strong position in the U.S. and Canadian markets."  New orders from continuing operations in the fiscal 2014 second quarter were $163 million compared to $192 million in the first quarter of fiscal 2014 and compared to $118 million in the second quarter of fiscal 2013. The Company's backlog for continuing operations as of March 31, 2014 was $452 million compared to $455 million as of December 31, 2013 and compared to $439 million at the end of last year's second quarter.  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 and fiscal year 2014 earnings to range between $2.85 and $3.35 per diluted share. This earnings guidance excludes the discontinued operations of Transdyn, Inc. and the associated gain on sale.  CONFERENCE CALL Powell Industries has scheduled a conference call for Wednesday, May 7, 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 May 14, 2014. To access the replay, dial 303-590-3030 using a passcode of 4679229#.  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.    POWELL INDUSTRIES, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS                             Three Months Ended       Six Months Ended                             March 31,    March 31,   March 31,    March 31,                             2014         2013        2014         2013 (In thousands, except per share data)                             (Unaudited) Revenues                    $  162,295  $  146,041 $  334,167  $  292,899 Cost of goods sold          127,367      116,498     $  264,081  230,954 Gross profit                34,928       29,543      70,086       61,945 Selling, general and        22,088       20,989      43,722       40,675 administrative expenses Research and development    2,157        1,850       3,996        3,564 expenses Amortization of intangible  121          413         536          828 assets Operating income            10,562       6,291       21,832       16,878 Other income                (507)        (1,709)     (507)        (1,709) Interest expense            41           43          110          104 Interest income             (3)          (2)         (6)          (21) Income from continuing operations before income    11,031       7,959       22,235       18,504 taxes Income tax provision        4,055        1,757       7,992        5,182 Income from continuing      6,976        6,202       14,243       13,322 operations Income from discontinued    8,617        616         9,604        881 operations, net of tax Net income                  $   15,593 $        $   23,847 $   14,203                                          6,818 Earnings per share:  Continuing          $        $       $        $     operations                  0.58         0.52        1.19         1.12  Discontinued        $        $       $        $     operations                  0.72         0.05        0.80         0.07   Basic       $        $       $        $     earnings per share          1.30         0.57        1.99         1.19  Continuing          $        $       $        $     operations                  0.58         0.52        1.18         1.11  Discontinued        $        $       $        $     operations                  0.71         0.05        0.80         0.07  Diluted     $        $       $        $     earnings per share          1.29         0.57        1.98         1.18 Weighted average shares:  Basic               12,004       11,953      11,999       11,946  Diluted             12,064       12,029      12,057       12,021 SELECTED FINANCIAL DATA: Depreciation and            $   2,617  $   2,355 $   5,595  $   5,427 Amortization Capital Expenditures        $   2,700  $  19,895  $   8,464  $  33,270    POWELL INDUSTRIES, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS                                                    March 31,     September 30,                                                    2014          2013 (In thousands)                                     (Unaudited) Assets:  Current assets                                $  341,941  $   341,931  Current assets held for sale                  ---           15,409  Property, plant and equipment (net)           145,055       144,495  Long-term assets                              28,068        28,924  Long-term assets held for sale                ---           144  Total assets                               $  515,064  $   530,903 Liabilities & equity:  Current liabilities                           $  130,241  $   150,215  Current liabilities held for sale             ---           17,848  Long-term debt and capital lease obligations, 2,800         3,200 net of current maturities  Deferred and other long-term liabilities      10,476        4,210  Long-term liabilities held for sale           ---           204  Stockholders' equity                          371,547       355,226  Total liabilities and stockholders' equity $  515,064  $   530,903    Contacts: Don R. Madison, CFO                Powell Industries, Inc.                713-947-4422    SOURCE Powell Industries, Inc.  Website: http://www.powellind.com  
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