Powell Industries Announces Fiscal 2020 First Quarter Result

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|Feb 5|magazine82 min read

HOUSTON, Feb. 4, 2020 /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 2020 first quarter ended December 31, 2019.

Revenues for the first quarter of fiscal 2020 were $134.2 million compared to revenues of $109.4 million in the first quarter of fiscal 2019. The Company reported net income for the first quarter of 2020 of $2.8 million, or $0.24 per diluted share, compared to a net loss of $2.7 million, or $0.23 per diluted share, in the first quarter of fiscal 2019.

New orders placed during the first quarter of fiscal 2020 totaled $137 million compared to $162 million in the fourth quarter of fiscal 2019 and $172 million in the first quarter of fiscal 2019.  The Company's backlog as of December 31, 2019 was $426 million, an increase of 2% sequentially from $419 million at September 30, 2019 and compared to $322 million as of December 31, 2018.

Brett Cope, Powell's Chairman and Chief Executive Officer, stated, "We were pleased with our fiscal 2020 first quarter performance, despite the seasonal impact at the end of the calendar year.  Our backlog position entering Fiscal 2020 positions the business to deliver a year of solid returns based on the convertibility and quality of our order book.  As we progress through Fiscal 2020, we are not only focusing on backlog execution, but also leveraging the commercial pipeline to help offset the cyclical nature of our core end markets."

OUTLOOK

Commenting on the company's outlook, Michael Metcalf, Powell's Chief Financial Officer, said, "From a profitability perspective, the business had the best fiscal first quarter dating back to fiscal 2014, driven by $134 million of revenue, which was generated predominately across our core oil, gas and petrochemical end markets.  We remain committed to delivering another successful year from a profitability perspective, while investing in future growth opportunities by leveraging our research and development investment in technology programs throughout 2020."

CONFERENCE CALL

Powell Industries has scheduled a conference call for Wednesday, February 5, 2020 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 February 12, 2020.  To access the replay, dial 201-612-7415 using a passcode of 13697966#.

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


[email protected]


713-529-6600

 

POWELL INDUSTRIES, INC. & SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS



Three Months Ended
December 31,


2019


2018

(In thousands, except per share data)





(Unaudited)





Revenues

$

134,150



$

109,351


Cost of goods sold

112,324



94,720


Gross profit

21,826



14,631






Selling, general and administrative expenses

17,289



15,928


Research and development expenses

1,474



1,694


Amortization of intangible assets

44



44


Operating income (loss)

3,019



(3,035)






Interest expense

67



56


Interest income

(381)



(157)


Income (loss) before income taxes

3,333



(2,934)






Income tax provision (benefit)

558



(239)






Net income (loss)

$

2,775



$

(2,695)






Earnings (loss) per share:




Basic

$

0.24



$

(0.23)


Diluted

$

0.24



$

(0.23)






Weighted average shares:




Basic

11,614



11,551


Diluted

11,665



11,551










SELECTED FINANCIAL DATA:








Depreciation and Amortization

$

2,597



$

3,221


Capital Expenditures

$

2,422



$

764


Dividends Paid

$

3,013



$

2,992


 

POWELL INDUSTRIES, INC. & SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS



December 31, 2019


September 30, 2019

(In thousands)

(Unaudited)





Assets:








   Cash, cash equivalents and short-term investments

$

120,966



$

124,681






   Other current assets

200,335



203,887






   Property, plant and equipment, net

120,795



120,812






   Long-term assets

24,355



18,031






      Total assets

$

466,451



$

467,411










Liabilities and equity:








   Current liabilities

$

149,543



$

157,896






   Long-term debt, net of current maturities

400



800






   Deferred and other long-term liabilities

14,835



9,562






   Stockholders' equity

301,673



299,153






      Total liabilities and stockholders' equity

$

466,451



$

467,411










SELECTED FINANCIAL DATA:








   Working capital

$

171,758



$

170,672






 

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SOURCE Powell Industries, Inc.