Powell Industries Announces Fiscal 2020 Second Quarter Resul

|May 5|magazine16 min read

HOUSTON, May 5, 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 second quarter ended March 31, 2020.

Revenues for the second quarter of fiscal 2020 were $151.6 million compared to revenues of $134.2 million for the first quarter of fiscal 2020 and revenues of $123.7 million for the second quarter of fiscal 2019. The Company reported net income for the second quarter of 2020 of $7.4 million, or $0.64 per diluted share, compared to net income of $2.8 million, or $0.24 per diluted share, for the first quarter of fiscal 2020 and net income of $1.0 million, or $0.08 per diluted share for the second quarter of fiscal 2019.

New orders placed during the second quarter of fiscal 2020 totaled $301 million compared to $137 million in the first quarter of fiscal 2020 and $197 million in the second quarter of fiscal 2019. The Company's backlog as of March 31, 2020 was $566 million, an increase of 33% sequentially from $426 million at December 31, 2019 and compared to $397 million as of March 31, 2019.

Brett A. Cope, Powell's Chairman and Chief Executive Officer, stated, "As the global community is battling the COVID-19 pandemic, our number one priority has been the safety of our employees, customers and their families.  I am very proud of all of our employees for their swift response implementing safe work practices across all of our facilities.  We have maintained all of our operations supporting our customers as an essential business, providing critical electrical distribution solutions. 

Our second quarter results reflect strong operational momentum that we have been building upon for the last several years.  Our backlog at the end of the second quarter, a new company record, of $566 million positions us favorably for the remainder of 2020 and into 2021.  Despite the impacts associated with COVID-19 and recent oil price declines, we are in a strong financial position supported by a solid balance sheet and a team of people that has prior experience successfully working through challenging market cycles."

OUTLOOK

Commenting on the company's outlook, Michael Metcalf, Powell's Chief Financial Officer said, "The business recorded another strong quarter to close out the first half of fiscal 2020, generating record backlog in the second quarter of the year.  Supported by Powell's strong balance sheet and liquidity, we are well positioned to successfully execute on the backlog.  In response to the recent challenges that have arisen as a result of COVID-19 and the impact on the global oil and gas markets, we remain committed to taking the necessary actions required in order to manage through the current market dynamics.  We are confident that our focus on supply chain and project execution throughout the second half of the year will result in a profitable fiscal 2020 for the business."

CONFERENCE CALL 

Powell Industries has scheduled a conference call for Wednesday, May 6, 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 May 13, 2020.  To access the replay, dial 201-612-7415 using a passcode of 13701781#.

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.

 

POWELL INDUSTRIES, INC. & SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS



Three Months Ended
March 31,


Six Months Ended
March 31,


2020


2019


2020


2019

(In thousands, except per share data)









(Unaudited)









Revenues

$

151,570



$

123,737



$

285,720



$

233,088


Cost of goods sold

121,885



103,662



234,209



198,382


Gross profit

29,685



20,075



51,511



34,706










Selling, general and administrative expenses

18,573



17,195



35,861



33,123


Research and development expenses

1,783



1,663



3,258



3,357


Amortization of intangible assets

44



44



88



88


Operating income (loss)

9,285



1,173



12,304



(1,862)










Interest expense

60



55



127



111


Interest income

(330)



(245)



(711)



(402)


Income (loss) before income taxes

9,555



1,363



12,888



(1,571)










Income tax provision (benefit)

2,134



405



2,692



166










Net income (loss)

$

7,421



$

958



$

10,196



$

(1,737)










Earnings (loss) per share: share:








Basic

$

0.64



$

0.08



$

0.88



$

(0.15)


Diluted

$

0.64



$

0.08



$

0.87



$

(0.15)










Weighted average shares: shares:








Basic

11,621



11,570



11,617



11,560


Diluted

11,681



11,632



11,673



11,560


















SELECTED FINANCIAL DATA:
















Depreciation and Amortization

$

2,644



$

3,239



$

5,241



$

6,460


Capital Expenditures

$

1,080



$

1,208



$

3,502



$

1,972


Dividends Paid

$

3,015



$

2,996



$

6,028



$

5,988


 

POWELL INDUSTRIES, INC. & SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS







March 31, 2020


September 30, 2019

(In thousands)

(Unaudited)





Assets:








   Cash, cash equivalents and short-term investments

$

120,571



$

124,681






   Other current assets

187,161



203,887






   Property, plant and equipment, net

115,192



120,812






   Long-term assets

23,673



18,031






      Total assets

$

446,597



$

467,411










Liabilities and equity:








   Current liabilities

$

132,996



$

157,896






   Long-term debt, net of current maturities

400



800






   Deferred and other long-term liabilities

13,070



9,562






   Stockholders' equity

300,131



299,153






      Total liabilities and stockholders' equity

$

446,597



$

467,411










SELECTED FINANCIAL DATA:








   Working capital

$

174,736



$

170,672






 

Contacts:

Michael W. Metcalf, CFO


Powell Industries, Inc.


713-947-4422




Ken Dennard / Natalie Hairston


Dennard Lascar Investor Relations


[email protected]


713-529-6600

 

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SOURCE Powell Industries, Inc.