EXHIBIT 99.1
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 | | Press Release |
Contacts: Don R. Madison, CFO
Powell Industries, Inc.
713-947-4422
Ken Dennard / ksdennard@drg-e.com
Karen Roan / kcroan@drg-e.com
DRG&E / 713-529-6600
POWELL INDUSTRIES ANNOUNCES FISCAL 2005
THIRD QUARTER RESULTS
HOUSTON — SEPTEMBER 8, 2005 — 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 2005 third quarter ended July 31, 2005.
Revenues for the third quarter of 2005 were $66.9 million compared to revenues of $52.8 million for the third quarter of 2004. The revenue growth is due primarily to improvements in Powell’s domestic electrical power products business. Net income for the third quarter was $2.1 million, or $0.19 per diluted share, compared to $0.7 million, or $0.07 per diluted share, in the same period a year ago.
Thomas W. Powell, chairman and chief executive officer, stated, “We experienced marked improvement in our U.S. operations in the third quarter and continue to be pleased with the strength of new orders and backlog. We are excited about our acquisition of S&I and the favorable response from both the S&I employees and customers. Overall, we continue to be encouraged by the direction of the company and our markets. ”
The Electrical Power Products segment recorded revenues of $58.2 million in the third quarter compared to $43.3 million in the third quarter a year ago. Income before income taxes for Electrical Power Products totaled $994,000 versus $185,000 in last year’s third quarter. The operating results of S&I, acquired by Powell on July 4, 2005, are included in the Electrical Power Products segment.
Process Control Systems’ revenues for the third quarter were $8.7 million compared to $9.5 million for the same period a year ago. Income before income taxes for Process Control Systems totaled $1.8 million versus $473,000 a year ago.
The company’s order backlog as of July 31, 2005, was $251 million, compared to $120.4 million at the end of the third quarter one year ago and compared to $161.4 million at the end of the second quarter of fiscal 2005. New orders placed during the third quarter of 2005 totaled $135.4 million versus $42.1 million in the third quarter a year ago and versus $73.6 million in this year’s second quarter. As announced on May 26, 2005, the Washington Metropolitan Area Transit Authority (WMATA) contract totaling $51 million was included in Powell’s new orders for the third quarter.
Revenues for the first nine months of fiscal 2005 were $173.5 million compared to revenues of $157.5 million for the first nine months of fiscal 2004. Net income for the first nine months was $411,000, or $0.04 per diluted share, versus net income of $1.8 million, or $0.17 per diluted share, for the first nine months of fiscal 2004.
The Electrical Power Products segment recorded revenues of $146.4 million in the first nine months of fiscal 2005 compared to $133.4 million for the same period a year ago. The company reported a loss before income taxes year-to-date for Electrical Power Products of $3.1 million compared to income before income taxes of $1.4 million in the first nine months of fiscal 2004.
Process Control Systems’ revenues for the first nine months of fiscal 2005 were $27.2 million compared to $24.1 million for the same period a year ago. Income before income taxes for Process Control Systems year-to-date totaled $2.9 million versus $1.0 million for the same period a year ago.
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 current booking trends, Powell Industries now expects fiscal 2005 fourth quarter earnings to range between $0.11 and $0.16 per diluted share, and full year 2005 earnings
to range between $0.15 and $0.20 per diluted share. Fiscal 2005 revenue is expected to range between $245 million and $250 million.
CONFERENCE CALL
Powell Industries has scheduled a conference call for Thursday, September 8, 2005, at 11:00 a.m. eastern time. To participate in the conference call, dial (303) 262-2131 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 September 15, 2005. To access the replay, dial (303) 590-3000 using a passcode of 11038422.
Investors, analysts and the general public will also have the opportunity to listen to the conference call over the Internet by visitinghttp://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 athttp://www.powellind.com.
Powell Industries, Inc., headquartered in Houston, TX, designs, manufactures and services equipment and systems for the management and control of electrical energy and other critical processes. Powell provides products and services to the transportation, environmental, industrial and utility industries. For more information, please visitwww.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 uncertainty 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, including but not limited to 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.
Tables to follow
POWELL INDUSTRIES, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | July 31, | | | July 31, | |
| | | 2005 | | | 2004 | | | 2005 | | | 2004 | |
| (In thousands, except per share data) | | (Unaudited) | | | (Unaudited) | |
| Revenues | | $ | 66,915 | | | $ | 52,805 | | | $ | 173,518 | | | $ | 157,508 | |
| Cost of goods sold | | | 54,354 | | | | 43,488 | | | | 145,556 | | | | 130,017 | |
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| Gross profit | | | 12,561 | | | | 9,317 | | | | 27,962 | | | | 27,491 | |
| Selling, general and administrative expenses | | | 9,887 | | | | 8,849 | | | | 28,761 | | | | 25,574 | |
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| Income (loss) before interest, income taxes and minority interest | | | 2,674 | | | | 468 | | | | (799 | ) | | | 1,917 | |
| Interest expense | | | 130 | | | | 45 | | | | 346 | | | | 108 | |
| Interest income | | | (289 | ) | | | (235 | ) | | | (883 | ) | | | (602 | ) |
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| Income (loss) before income taxes and minority interest | | | 2,833 | | | | 658 | | | | (262 | ) | | | 2,411 | |
| Income tax provision (benefit) | | | 695 | | | | (79 | ) | | | (680 | ) | | | 567 | |
| Minority interest in net income | | | 6 | | | | — | | | | 7 | | | | — | |
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| Net income | | $ | 2,132 | | | $ | 737 | | | $ | 411 | | | $ | 1,844 | |
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| Net earnings per common share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.20 | | | $ | 0.07 | | | $ | 0.04 | | | $ | 0.17 | |
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| Diluted | | $ | 0.19 | | | $ | 0.07 | | | $ | 0.04 | | | $ | 0.17 | |
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| Weighted average shares: Basic | | | 10,775 | | | | 10,701 | | | | 10,757 | | | | 10,676 | |
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| Diluted | | | 10,939 | | | | 10,777 | | | | 10,886 | | | | 10,768 | |
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| SELECTED FINANCIAL DATA: | | | | | | | | | | | | | | | | |
| Capital Expenditures | | $ | 1,165 | | | $ | 1,785 | | | $ | 3,226 | | | $ | 4,920 | |
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| Depreciation and amortization | | $ | 1,202 | | | $ | 1,057 | | | $ | 3,244 | | | $ | 3,396 | |
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POWELL INDUSTRIES, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS| | | | | | | | | |
| | | July 31, | | | October 31, | |
| | | 2005 | | | 2004 | |
| (In thousands) | (Unaudited) | | | | |
| Assets: | | | | | | | | |
| Current assets | | $ | 153,598 | | | $ | 145,620 | |
| Property, plant and equipment (net) | | | 54,386 | | | | 45,041 | |
| Other assets | | | 9,841 | | | | 5,418 | |
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| Total assets | | $ | 217,825 | | | $ | 196,079 | |
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| Liabilities & stockholders’ equity: | | | | | | | | |
| Current liabilities | | $ | 56,184 | | | $ | 46,350 | |
| Long-term debt and capital lease obligations, net of current maturities | | | 16,018 | | | | 6,626 | |
| Deferred and other long-term liabilities | | | 3,282 | | | | 3,050 | |
| Stockholders’ equity and minority interest | | | 142,341 | | | | 140,053 | |
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| Total liabilities and stockholders’ equity | | $ | 217,825 | | | $ | 196,079 | |
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POWELL INDUSTRIES, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | July 31, | | | July 31, | |
| | | 2005 | | | 2004 | | | 2005 | | | 2004 | |
| (In thousands) | | (Unaudited) | | | (Unaudited) | |
| Revenues: | | | | | | | | | | | | | | | | |
| Electrical Power Products | | $ | 58,214 | | | $ | 43,256 | | | $ | 146,362 | | | $ | 133,408 | |
| Process Control Systems | | | 8,701 | | | | 9,549 | | | | 27,156 | | | | 24,100 | |
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| Total revenues | | $ | 66,915 | | | $ | 52,805 | | | $ | 173,518 | | | $ | 157,508 | |
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| Income (loss) before income taxes: | | | | | | | | | | | | | | | | |
| Electrical Power Products | | $ | 994 | | | $ | 185 | | | $ | (3,140 | ) | | $ | 1,386 | |
| Process Control Systems | | | 1,839 | | | | 473 | | | | 2,878 | | | | 1,025 | |
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| Total income (loss) before income taxes | | $ | 2,833 | | | $ | 658 | | | $ | (262 | ) | | $ | 2,411 | |
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| | | July 31, | | | October 31, | |
| | | 2005 | | | 2004 | |
| (In thousands) | | (Unaudited) | | | | | |
| Identifiable tangible assets: | | | | | | | | |
| Electrical Power Products | | $ | 166,231 | | | $ | 114,374 | |
| Process Control Systems | | | 13,441 | | | | 11,889 | |
| Corporate | | | 33,422 | | | | 69,141 | |
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| Total identifiable tangible assets | | $ | 213,094 | | | $ | 195,404 | |
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| Backlog: | | | | | | | | |
| Electrical Power Products | | $ | 210,097 | | | $ | 89,491 | |
| Process Control Systems | | | 40,662 | | | | 44,763 | |
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| Total backlog | | $ | 250,759 | | | $ | 134,254 | |
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