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Powell Industries Announces Fiscal 2018 Third Quarter Results

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Powell Industries Announces Fiscal 2018 Third Quarter Results

PR Newswire

HOUSTON, Aug. 7, 2018 /PRNewswire/ -- Powell Industries, Inc. (NASDAQ:POWL), a leading supplier of custom engineered solutions for the management, control and distribution of electrical energy, today announced results for the fiscal 2018 third quarter ended June 30, 2018.

Revenues for the third quarter of fiscal 2018 were $122.1 million, compared to revenues of $101.5 million for the second quarter of 2018 and revenues of $85.9 million for the third quarter of fiscal 2017.  The Company reported net income for the third quarter of $0.3 million, or $0.03 per diluted share, compared to a net loss of $3.3 million, or $0.29 per diluted share for the second quarter of fiscal 2018 and a net loss of $3.2 million, or $0.28 per diluted share, for the third quarter of fiscal 2017.

Brett A. Cope, Powell's President and Chief Executive Officer, stated, "Our third quarter 2018 results reflect continued improvements in our operations, driven by our U.S. operations.  We also continued to make progress completing work on lower margin projects while proactively increasing the volume and margin quality of our backlog.  New awards this quarter maintained the pace from last quarter with improved activity in our core markets, especially from refineries, petrochemical facilities and pipeline projects."    

New orders placed during the third quarter of fiscal 2018 totaled $139 million compared to $142 million in the second quarter of fiscal 2018 and compared to $91 million in the third quarter of fiscal 2017.  The Company's backlog as of June 30, 2018 was $316 million compared to $300 million as of March 31, 2018 and compared to $233 million at the end of last year's third quarter.

OUTLOOK

Powell anticipates its fiscal 2018 fourth quarter earnings performance to show continued improvement over the third quarter results.  However, the Company continues to expect to report a net loss for fiscal 2018. 

CONFERENCE CALL

Powell Industries has scheduled a conference call for Wednesday, August 8, 2018 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 15, 2018.  To access the replay, dial 201-612-7415 using a passcode of 13681014#.

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, 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.

 

POWELL INDUSTRIES, INC. & SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS




Three Months Ended June 30,


Nine Months Ended June 30,


2018


2017


2018


2017

(In thousands, except per share data)









(Unaudited)









Revenues

$

122,130



$

85,927



$

313,819



$

300,948


Cost of goods sold

103,755



76,873



272,469



261,073


Gross profit

18,375



9,054



41,350



39,875










Selling, general and administrative expenses

16,174



14,761



48,462



46,453


Research and development expenses

1,632



1,726



4,926



4,818


Amortization of intangible assets

44



87



161



263


Restructuring and separation expenses







840


Operating income (loss)

525



(7,520)



(12,199)



(12,499)










Other income



(507)



(507)



(1,522)


Interest expense

51



41



153



122


Interest income

(215)



(156)



(711)



(287)


Income (loss) before income taxes

689



(6,898)



(11,134)



(10,812)










Income tax provision (benefit)

388



(3,683)



(2,443)



(6,469)










Net income (loss)

$

301



$

(3,215)



$

(8,691)



$

(4,343)










Income (loss) per share:








   Basic

$

0.03



$

(0.28)



$

(0.76)



$

(0.38)


   Diluted

$

0.03



$

(0.28)



$

(0.76)



$

(0.38)










Weighted average shares:








   Basic

11,514



11,463



11,503



11,449


   Diluted

11,587



11,463



11,503



11,449


















SELECTED FINANCIAL DATA:
















Depreciation and Amortization

$

3,231



$

3,167



$

9,655



$

9,481


Capital Expenditures

$

1,163



$

818



$

3,978



$

2,520


Dividends Paid

$

2,980



$

2,971



$

8.934



$

8,904


 

POWELL INDUSTRIES, INC. & SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS










June 30, 2018


September 30, 2017

(In thousands)

(Unaudited)





Assets:








   Cash and cash equivalents and short-term investments

$

55,293



$

95,188






 Restricted cash

19,952



15,104






   Other current assets

177,177


139,779






   Property, plant and equipment (net)

130,545



139,420






 Restricted cash (non-current)

3,635



9,747






   Long-term assets

22,048



15,748






      Total assets

$

408,650



$

414,986










Liabilities and equity:








   Current liabilities

$

99,119



$

85,579






   Long-term debt, net of current maturities

1,200



1,600






   Deferred and other long-term liabilities

6,884



6,511






   Stockholders' equity

301,447



321,296






      Total liabilities and stockholders' equity

$

408,650



$

414,986










SELECTED FINANCIAL DATA:








   Working capital

$

153,303



$

164,492






 

Contacts:   

Don R. Madison, CFO


Powell Industries, Inc.


713-947-4422

 

Cision View original content:http://www.prnewswire.com/news-releases/powell-industries-announces-fiscal-2018-third-quarter-results-300693334.html

SOURCE Powell Industries, Inc.

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