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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