Powell Industries (POWL) 8-K Powell Industries Announces Fiscal 2011 Second Quarter Results

EXHIBIT 99.1

PressRelease

	Contacts:	Don R. Madison, CFO
		Powell Industries, Inc.
		713-947-4422
FOR IMMEDIATE RELEASE
		Ken Dennard / ksdennard@drg-l.com
		Karen Roan / kcroan@drg-l.com
		DRG&L / 713-529-6600

POWELL INDUSTRIES ANNOUNCES FISCAL 2011
SECOND QUARTER RESULTS

Company reports record orders of $217 million

HOUSTON — MAY 3, 2011 — Powell Industries, Inc. (NASDAQ: POWL), a leading manufacturer of equipment and systems for the management and control of electrical energy and other critical processes, today announced results for the fiscal 2011 second quarter ending March 31, 2011.

     Revenues for the second quarter of fiscal 2011 were $125.6 million compared to revenues of $142.1 million for the second quarter of fiscal 2010. Net income for the second quarter was $2.5 million, or $0.21 per diluted share, compared to net income of $9.9 million, or $0.85 per diluted share, in the second quarter of fiscal 2010. A one-time benefit of $1.2 million, resulting from a gain on the sale of the Company’s investment in a Kazakhstan joint venture, is included in fiscal 2011 second quarter results.

     Patrick L. McDonald, President and Chief Executive Officer, stated, “We generated record orders for the second quarter, giving us confidence that we will continue to see gradual improvement in the market. Even taking into account several large contracts included in second quarter bookings, the order pace is what we need to build backlog and drive our results later this year and into fiscal 2012.

     “We still expect this fiscal year to be somewhat challenging. We are a late cycle business, largely driven by available backlog and the ability of our customer base to engage in

and move capital projects forward. Our backlog is growing, and at this point, we expect our fiscal fourth quarter and fiscal 2012 earnings to reflect a more robust business environment.”

     New orders placed during the second quarter of fiscal 2011 reached a quarterly record of $217 million compared to $186 million in the first quarter of fiscal 2011 and compared to $113 million in the second quarter of fiscal 2010. The Company’s backlog as of March 31, 2011 was $437 million compared to $344 million as of December 31, 2010 and compared to $313 million at the end of last year’s second quarter.

OUTLOOK

     The following statements are based on the current expectations of the Company. 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 expects full year fiscal 2011 revenues to range between $500 million and $550 million and full year fiscal 2011 earnings to range between $1.10 and $1.40 per diluted share.

CONFERENCE CALL

     Powell Industries has scheduled a conference call for Wednesday, May 4, 2011 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 11, 2011. To access the replay, dial 303-590-3030 using a passcode of 4430676#.

     Investors, analysts and the general public will also have the opportunity to listen to the conference call over the Internet by visiting http://www.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 http://www.powellind.com.

Powell Industries, Inc., headquartered in Houston, designs, manufactures and packages systems and equipment for the control, distribution and management of electrical energy and other dynamic processes. Powell provides products and services to large industrial customers such as utilities, oil and gas producers, refineries, petrochemical plants, pulp and paper producers,

mining operations, commuter railways and other vehicular transportation facilities. For more information, please visit www.powellind.com.

Any forward-looking statements in the preceding paragraphs of this release are made pursuant to thesafe 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, 2011			March 31, 2010			March 31, 2011			March 31, 2010
(In thousands, except per share data)	(Unaudited)						(Unaudited)
Revenues	$	125,598		$	142,135		$	250,272		$	278,051
Cost of goods sold		99,955			105,602			198,764			203,701
Gross profit		25,643			36,533			51,508			74,350
Selling, general and administrative expenses		21,538			19,958			42,466			41,737
Amortization of intangible assets		1,254			1,199			2,421			2,061
Operating income		2,851			15,376			6,621			30,552
Other income		(1,229	)		—			(1,229	)		—
Interest expense		94			228			208			410
Interest income		(62	)		(115	)		(107	)		(157	)
Income before income taxes		4,048			15,263			7,749			30,299
Income tax provision		1,549			5,378			2,818			10,669
Net income		2,499			9,885			4,931			19,630
Net income attributable to noncontrolling interest		—			(25	)		—			(126	)
Net income attributable to Powell Industries, Inc.	$	2,499		$	9,860		$	4,931		$	19,504
Earnings per share attributable to Powell Industries, Inc.:
Basic	$	0.21		$	0.86		$	0.42		$	1.70
Diluted	$	0.21		$	0.85		$	0.42		$	1.68
Weighted average shares:
Basic		11,666			11,523			11,653			11,498
Diluted		11,799			11,659			11,787			11,639
SELECTED FINANCIAL DATA:
Capital Expenditures	$	1,904		$	846		$	2,667		$	1,460
Depreciation and amortization	$	3,938		$	3,497		$	7,493		$	6,369

POWELL INDUSTRIES, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

	March 31,		September 30,
	2011		2010
(In thousands)	(Unaudited)
Assets:
Current assets	$	317,192	$	302,191
Property, plant and equipment (net)		61,440		63,676
Other assets		34,555		34,845
Total assets	$	413,187	$	400,712
Liabilities & equity:
Current liabilities	$	118,775	$	114,746
Long-term debt and capital lease obligations, net of current maturities		4,543		5,202
Deferred and other long-term liabilities		4,075		3,461
Stockholders’ equity		285,794		277,303
Total liabilities and equity	$	413,187	$	400,712

POWELL INDUSTRIES, INC. & SUBSIDIARIES
BUSINESS SEGMENTS

	Three Months Ended					Six Months Ended
	March 31, 2011			March 31, 2010		March 31, 2011			March 31, 2010
(In thousands)	(Unaudited)					(Unaudited)
Revenues:
Electrical Power Products	$	119,063		$	133,401	$	236,206		$	261,530
Process Control Systems		6,535			8,734		14,066			16,521
Total revenues	$	125,598		$	142,135	$	250,272		$	278,051
Income before income taxes:
Electrical Power Products	$	4,194		$	14,320	$	8,279		$	28,168
Process Control Systems		(146	)		943		(530	)		2,131
Total income before income taxes	$	4,048		$	15,263	$	7,749		$	30,299

	March 31,		September 30,
	2011		2010
(In thousands)	(Unaudited)
Identifiable tangible assets:
Electrical Power Products	$	240,925	$	230,111
Process Control Systems		8,521		9,617
Corporate		136,817		133,635
Total identifiable tangible assets	$	386,263	$	373,363
Backlog:
Electrical Power Products	$	381,032	$	245,433
Process Control Systems		55,545		36,870
Total backlog	$	436,577	$	282,303

# # #