Powell Industries Announces Fiscal 2019 Third Quarter Results

HOUSTON, Aug. 6, 2019 /PRNewswire/ -- Powell Industries, Inc. POWL, a leading supplier of custom engineered solutions for the management, control and distribution of electrical energy, today announced results for the fiscal 2019 third quarter ended June 30, 2019.

Revenues for the third quarter of fiscal 2019 were $135.6 million compared to revenues of $123.7 million for the second quarter of fiscal 2019 and revenues of $122.1 million for the third quarter of fiscal 2018.  The Company reported net income for the third quarter of $5.1 million, or $0.44 per diluted share, compared to net income of $1.0 million, or $0.08 per diluted share, for the second quarter of fiscal 2019 and net income of $0.3 million, or $0.03 per diluted share, for the third quarter of fiscal 2018.

New orders placed during the third quarter of fiscal 2019 totaled $145 million compared to $197 million in the second quarter of fiscal 2019 and compared to $139 million in the third quarter of fiscal 2018.  The Company's backlog as of June 30, 2019 was $407 million up 2.5% sequentially from $397 million as of March 31, 2019 and compared to $316 million at the end of last year's third quarter.

Brett A. Cope, Powell's President and Chief Executive Officer, stated, "We continue to build on the momentum from the previous quarter, delivering on our customer commitments while also improving the utilization of our people and facilities.  Our third quarter results reflect our continued focus on operational execution across the company while we continue to work towards an improved quality and mix of our backlog."

Cope added, "Powell's $145 million of new orders in the third quarter were driven more broadly from our core oil, gas, and petrochemical customers, as well as the industrial and utility sectors from both domestic and international markets. We enter the fourth quarter with a strong backlog and a healthy funnel of inquiry activity, particularly in the US Gulf Coast region where we continue to support the development of several, larger projects driven in part by the availability of low cost natural gas."

OUTLOOK

Commenting on the company's outlook, Michael Metcalf, Powell's Chief Financial Officer said, "Looking ahead, we expect continued growth across our key end markets, specifically within the industrial sector.  Similar to the third quarter, our fourth quarter focus on operational priorities should generate increased productivity from both volume leverage and associated SG&A cost efficiencies, all of which are providing margin uplift.  Additionally, we expect to deliver solid operating cash flow through the remainder of fiscal 2019 with strong working capital discipline."

"Finally, we anticipate that our customer focus, coupled with sustained end market activity will provide a platform for continued profitability in the fourth quarter of fiscal 2019 and into fiscal 2020," Metcalf concluded.

CONFERENCE CALL

Powell Industries has scheduled a conference call for Wednesday, August 7, 2019 at 11:00 a.m. Eastern time.  To participate in the conference call, dial 412-902-0030 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 August 14, 2019.  To access the replay, dial 201-612-7415 using a passcode of 13691710#.

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 15 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, designs, manufactures and services custom-engineered equipment and systems for the distribution, control and monitoring 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:

Michael W. Metcalf, CFO



Powell Industries, Inc.



713-947-4422







Ken Dennard / Natalie Hairston



Dennard Lascar Investor Relations



POWL@dennardlascar.com



713-529-6600







POWELL INDUSTRIES, INC. & SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS





Three Months Ended

June 30,



Nine Months Ended

June 30,



2019



2018



2019



2018

(In thousands, except per share data)

















(Unaudited)

















Revenues

$

135,588





$

122,130





$

368,676





$

313,819



Cost of goods sold

111,873





103,755





310,255





272,469



Gross profit

23,715





18,375





58,421





41,350



















Selling, general and administrative expenses

17,117





16,174





50,240





48,462



Research and development expenses

1,631





1,632





4,988





4,926



Amortization of intangible assets

44





44





132





161



Insurance proceeds

(950)









(950)







Restructuring and other, net

233









233







Operating income (loss)

5,640





525





3,778





(12,199)



















Other income













(507)



Interest expense

59





51





170





153



Interest income

(305)





(215)





(707)





(711)



Income (loss) before income taxes

5,886





689





4,315





(11,134)



















Income tax expense (benefit)

797





388





963





(2,443)



















Net income (loss)

$

5,089





$

301





$

3,352





$

(8,691)



















Income (loss) per share:















   Basic

$

0.44





$

0.03





$

0.29





$

(0.76)



   Diluted

$

0.44





$

0.03





$

0.29





$

(0.76)



















Weighted average shares:















   Basic

11,579





11,514





11,567





11,503



   Diluted

11,603





11,587





11,589





11,503



































SELECTED FINANCIAL DATA:































Depreciation and Amortization

$

2,948





$

3,231





$

9,408





$

9,655



Capital Expenditures

$

1,269





$

1,163





$

3,241





$

3,978



Dividends Paid

$

3,003





$

2,980





$

8,991





$

8,934









POWELL INDUSTRIES, INC. & SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS





June 30, 2019



September 30, 2018

(In thousands)

(Unaudited)









Assets:















  Cash, cash equivalents and short-term investments

$

78,030





$

49,754











 Restricted cash

8,188





19,154











  Other current assets

201,052





207,754











  Property, plant and equipment (net)

121,909





128,764











 Restricted cash (non-current)

8,476





5,987











  Long-term assets

19,451





18,538











      Total assets

$

437,106





$

429,951



















Liabilities and equity:















  Current liabilities

$

129,801





$

117,849











  Long-term debt, net of current maturities

800





1,200











  Deferred and other long-term liabilities

10,846





9,258











  Stockholders' equity

295,659





301,644











      Total liabilities and stockholders' equity

$

437,106





$

429,951



















SELECTED FINANCIAL DATA:















  Working capital

$

157,469





$

158,813











 

 

Cision View original content:http://www.prnewswire.com/news-releases/powell-industries-announces-fiscal-2019-third-quarter-results-300897123.html

SOURCE Powell Industries, Inc.

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