EXHIBIT 99.1
PressRelease |
FOR IMMEDIATE 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 2006
FOURTH QUARTER AND YEAR-END RESULTS
FOURTH QUARTER AND YEAR-END RESULTS
Fiscal 2006 consists of a two month fourth quarter and an eleven month full year
HOUSTON — DECEMBER 6, 2006 — 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 2006 fourth quarter and year ended September 30, 2006. As previously announced, the Company changed its fiscal year-end to September 30 from October 31. Accordingly, the fiscal 2006 fourth quarter consists of only two months, and the full year consists of eleven months.
Revenues for the two-month fourth quarter of fiscal 2006 were $88.3 million, of which $30.0 million is attributable to business operations of the Company’s July 2005 S&I and August 2006 PowerVac® product line acquisitions, compared to revenues of $83.1 million for the three-month fourth quarter of fiscal 2005. Fourth quarter revenue growth is due primarily to continued broad-based strength in Powell’s Electrical Power Products markets. Net income for the two-month fourth quarter of fiscal 2006 was $2.8 million, or $0.25 per diluted share, compared to $1.8 million, or $0.17 per diluted share, in the three-month fourth quarter of fiscal 2005.
Thomas W. Powell, chairman and chief executive officer, stated, “We are pleased with the improvement in our fourth quarter and full year results. With the success of recent acquisitions combined with the strength of our backlog, we achieved record revenues in 2006. We are continuing to see strength in all of our major markets, resulting in solid increases in
orders and backlog. Our S&I acquisition completed its first full year in 2006 and continues to meet our expectations. This past August we completed the acquisition of the PowerVac® product line from General Electric and entered into a long-term commercial alliance with GE. Given the strength of our markets combined with the benefits from new acquisitions, we expect the Company to continue its positive trends in growth and operational results.”
The Company’s order backlog as of September 30, 2006 was $355 million compared to $259 million in the fourth quarter ended October 31, 2005 and compared to $287 million at the end of the third quarter of fiscal 2006. New orders placed during the two-month fourth quarter totaled $156 million, which includes approximately $49 million in initial orders from GE, compared to $91 million in the three-month fourth quarter of fiscal 2005 and $122 million in the three-month third quarter of fiscal 2006.
FOURTH QUARTER SEGMENT DATA
The Electrical Power Products segment recorded revenues of $82.5 million in the two-month fourth quarter, which include revenues from business operations of the Company’s S&I and PowerVac® product line acquisitions, compared to $73.8 million in the three-month fourth quarter of fiscal 2005. Income before income taxes for Electrical Power Products totaled $2.7 million versus $2.7 million in last year’s fourth quarter.
The Process Control Systems segment recorded revenues for the two-month fourth quarter of $5.8 million compared to $9.4 million for the three-month fourth quarter of fiscal 2005. Income before income taxes for Process Control Systems totaled $849,000 versus $1.0 million in last year’s fourth quarter.
FULL YEAR RESULTS
Revenues for fiscal 2006, an eleven month year, were a record $374.5 million, compared to $256.6 million for fiscal 2005. Revenues attributable to business operations of the Company’s S&I and PowerVac® product line acquisitions were $70.7 million. Net income for fiscal 2006 was $9.8 million, or $0.89 per diluted share, compared to $2.3 million, or $0.21 per diluted share, for fiscal 2005.
The Electrical Power Products segment recorded revenues of $347.9 million for fiscal 2006, which includes revenues from business operations of the Company’s S&I and PowerVac®
product line acquisitions, compared to $220.1 million in fiscal 2005. Income before income taxes for Electrical Power Products totaled $13.5 million in fiscal 2006 versus a loss before income taxes of $438,000 in fiscal 2005.
The Process Control Systems segment recorded revenues for fiscal 2006 of $26.6 million compared to $36.5 million for fiscal 2005. Income before income taxes for Process Control Systems totaled $1.7 million compared to $3.9 million in fiscal 2005. Revenue and income before income taxes in fiscal 2005 were favorably impacted by $1.7 million from the settlement of the Company’s claim related to the Central Artery/Tunnel projects.
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. Powell Industries now expects full year fiscal 2007 revenues to range between $475 million and $500 million and full year fiscal 2007 earnings to range between $1.20 and $1.45 per diluted share, including all integration costs for the PowerVac® product line acquisition.
CONFERENCE CALL
Powell Industries has scheduled a conference call for Wednesday, December 6, 2006, at 11:00 a.m. eastern time. To participate in the conference call, dial 303-262-2143 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 December 13, 2006. To access the replay, dial 303-590-3000 using a passcode of 11077788.
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 STATEMENTS OF OPERATIONS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Two | Three | Eleven | Twelve | |||||||||||||
Months | Months | Months | Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
Sept 30, | October 31, | Sept 30, | October 31, | |||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
(In thousands, except per share data) | (Unaudited) | (Unaudited) | ||||||||||||||
Revenues | $ | 88,282 | $ | 83,127 | $ | 374,547 | $ | 256,645 | ||||||||
Cost of goods sold | 71,652 | 67,229 | 303,304 | 212,785 | ||||||||||||
Gross profit | 16,630 | 15,898 | 71,243 | 43,860 | ||||||||||||
Selling, general and administrative expenses | 12,805 | 13,085 | 55,345 | 41,846 | ||||||||||||
Gain on sale of land and building | — | (1,052 | ) | — | (1,052 | ) | ||||||||||
Income before interest, income taxes and minority interest | 3,825 | 3,865 | 15,898 | 3,066 | ||||||||||||
Interest expense | 488 | 375 | 1,625 | 721 | ||||||||||||
Interest income | (191 | ) | (224 | ) | (927 | ) | (1,107 | ) | ||||||||
Income before income taxes and minority interest | 3,528 | 3,714 | 15,200 | 3,452 | ||||||||||||
Income tax provision | 728 | 1,818 | 5,383 | 1,138 | ||||||||||||
Minority interest in net income (loss) | (25 | ) | 56 | (3 | ) | 63 | ||||||||||
Net income | $ | 2,825 | $ | 1,840 | $ | 9,820 | $ | 2,251 | ||||||||
Net earnings per common share: | ||||||||||||||||
Basic | $ | 0.26 | $ | 0.17 | $ | 0.90 | $ | 0.21 | ||||||||
Diluted | $ | 0.25 | $ | 0.17 | $ | 0.89 | $ | 0.21 | ||||||||
Weighted average shares: | ||||||||||||||||
Basic | 10,907 | 10,844 | 10,876 | 10,779 | ||||||||||||
Diluted | 11,102 | 11,065 | 11,089 | 10,928 | ||||||||||||
SELECTED FINANCIAL DATA: | ||||||||||||||||
Depreciation and amortization | $ | 1,592 | $ | 2,022 | $ | 6,498 | $ | 5,266 | ||||||||
Capital expenditures | $ | 3,632 | $ | 2,882 | $ | 8,435 | $ | 6,108 | ||||||||
POWELL INDUSTRIES, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, | October 31, | |||||||
2006 | 2005 | |||||||
(In thousands) | (Unaudited) | |||||||
Assets: | ||||||||
Current assets | $ | 192,946 | $ | 162,177 | ||||
Property, plant and equipment (net) | 60,336 | 55,678 | ||||||
Other assets | 38,842 | 8,804 | ||||||
Total assets | $ | 292,124 | $ | 226,659 | ||||
Liabilities & stockholders’ equity: | ||||||||
Current liabilities | $ | 96,227 | $ | 58,739 | ||||
Long-term debt and capital lease obligations, net of current maturities | 33,886 | 19,436 | ||||||
Deferred and other long-term liabilities | 2,971 | 3,789 | ||||||
Stockholders’ equity and minority interest | 159,040 | 144,695 | ||||||
Total liabilities and stockholders’ equity | $ | 292,124 | $ | 226,659 | ||||
POWELL INDUSTRIES, INC. & SUBSIDIARIES
BUSINESS SEGMENTS
BUSINESS SEGMENTS
Two | Three | Eleven | Twelve | |||||||||||||
Months | Months | Months | Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
Sept 30, | October 31, | Sept 30, | October 31, | |||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
(In thousands) | (Unaudited) | (Unaudited) | ||||||||||||||
Revenues: | ||||||||||||||||
Electrical Power Products | $ | 82,515 | $ | 73,761 | $ | 347,928 | $ | 220,123 | ||||||||
Process Control Systems | 5,767 | 9,366 | 26,619 | 36,522 | ||||||||||||
Total revenues | $ | 88,282 | $ | 83,127 | $ | 374,547 | $ | 256,645 | ||||||||
Income before income taxes: | ||||||||||||||||
Electrical Power Products | $ | 2,679 | $ | 2,702 | $ | 13,458 | $ | (438 | ) | |||||||
Process Control Systems | 849 | 1,012 | 1,742 | 3,890 | ||||||||||||
Total income before income taxes | $ | 3,528 | $ | 3,714 | $ | 15,200 | $ | 3,452 | ||||||||
September 30, | October 31, | |||||||
2006 | 2005 | |||||||
(In thousands) | (Unaudited) | |||||||
Backlog: | ||||||||
Electrical Power Products | $ | 324,688 | $ | 212,884 | ||||
Process Control Systems | 30,440 | 46,129 | ||||||
Total backlog | $ | 355,128 | $ | 259,013 | ||||
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