EXHIBIT 99.1
| | | | | |
| | | Contacts: | | Don R. Madison, CFO |
FOR IMMEDIATE RELEASE | | | | 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 2007
THIRD QUARTER RESULTS
HOUSTON — AUGUST 8, 2007 — 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 2007 third quarter ended June 30, 2007. As previously announced, the Company changed its fiscal year-end to September 30 from October 31, effective September 30, 2006; therefore, the comparable period of fiscal 2006 is comprised of the three months ended July 31, 2006.
Revenues for the third quarter of fiscal 2007 were $149.1 million compared to revenues of $104.0 million for the third quarter of fiscal 2006. The business operations of the Company’s August 2006 Power/Vac® product line acquisition contributed revenues of $19.3 million in the third quarter of fiscal 2007. Net income for the third quarter was $3.2 million, or $0.28 per diluted share, compared to net income of $1.6 million, or $0.14 per diluted share, in the third quarter of fiscal 2006.
Thomas W. Powell, chairman and chief executive officer, stated, “Activity continues to be strong in all of our markets, as can be seen from our record backlog of $411 million. We hear from our customers and see in the marketplace that our industry is working at near full capacity. Powell always has been and will continue to be very responsive to our customers’ needs. We are working in all areas of our business to enhance our productive capabilities and continue to be the supplier of choice for our customers.”
The Electrical Power Products segment recorded revenues of $143.1 million in the fiscal 2007 third quarter compared to $96.9 million in the third quarter of fiscal 2006. The business operations of the Company’s August 2006 Power/Vac product line acquisition contributed revenues of $19.3 million in the third quarter of fiscal 2007. Income before income taxes for Electrical Power Products in the third quarter totaled $4.8 million versus income before income taxes of $2.6 million in last year’s fiscal third quarter.
The company’s order backlog as of June 30, 2007 was a record $411 million compared to $287 million at the end of the fiscal 2006 third quarter ended July 31, 2006 and compared to $408 million at the end of the second quarter of fiscal 2007 ended March 31, 2007. New orders placed during the third quarter totaled $151 million compared to $122 million in the third quarter of fiscal 2006 and compared to $168 million in the second quarter of fiscal 2007.
YEAR-TO-DATE RESULTS
Revenues for the first nine months of fiscal 2007 were $413.8 million compared to revenues of $286.3 million for the first nine months of fiscal 2006. The business operations of the Company’s August 2006 Power/Vac product line acquisition contributed revenues of $66.6 million in the first nine months of fiscal 2007. Net income for the first nine months was $7.5 million, or $0.67 per diluted share, compared to net income of $6.2 million, or $0.56 per diluted share, in the comparable period of fiscal 2006.
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 expects full year fiscal 2007 revenues to range between $550 million and $575 million and full year fiscal 2007 earnings to range between $0.83 and $0.88 per diluted share.
CONFERENCE CALL
Powell Industries has scheduled a conference call for Wednesday, August 8, 2007, 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 August 15, 2007. To access the replay, dial 303-590-3000 using a passcode of 11093473.
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, 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 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 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, including but not limited to the results of the Company’s internal investigation relating to the accounting errors, 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 | |
| | | June 30, 2007 | | | July 31, 2006 | | | June 30, 2007 | | | July 31, 2006 | |
| | | | | | | (As restated) | | | | | | | (As restated) | |
| (In thousands, except per share data) | | (Unaudited) | | | (Unaudited) | |
| | | | | | | | | | | | | | | | | |
| Revenues | | $ | 149,131 | | | $ | 104,021 | | | $ | 413,819 | | | $ | 286,265 | |
| | | | | | | | | | | | | | | | | |
| Cost of goods sold | | | 121,705 | | | | 85,249 | | | | 343,538 | | | | 232,909 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Gross profit | | | 27,426 | | | | 18,772 | | | | 70,281 | | | | 53,356 | |
| | | | | | | | | | | | | | | | | |
| Selling, general and administrative expenses | | | 21,750 | | | | 15,705 | | | | 56,476 | | | | 42,540 | |
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| | | | | | | | | | | | | | | | | |
| Income before interest, income taxes and minority interest | | | 5,676 | | | | 3,067 | | | | 13,805 | | | | 10,816 | |
| | | | | | | | | | | | | | | | | |
| Interest expense | | | 922 | | | | 476 | | | | 2,529 | | | | 1,137 | |
| | | | | | | | | | | | | | | | | |
| Interest income | | | (110 | ) | | | (197 | ) | | | (410 | ) | | | (736 | ) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Income before income taxes and minority interest | | | 4,864 | | | | 2,788 | | | | 11,686 | | | | 10,415 | |
| | | | | | | | | | | | | | | | | |
| Income tax provision | | | 1,724 | | | | 1,231 | | | | 4,154 | | | | 4,210 | |
| | | | | | | | | | | | | | | | | |
| Minority interest in net income (loss) | | | (30 | ) | | | 7 | | | | 79 | | | | 22 | |
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| | | | | | | | | | | | | | | | | |
| Net income | | $ | 3,170 | | | $ | 1,550 | | | $ | 7,453 | | | $ | 6,183 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net earnings per common share: | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.29 | | | $ | 0.14 | | | $ | 0.68 | | | $ | 0.57 | |
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| Diluted | | $ | 0.28 | | | $ | 0.14 | | | $ | 0.67 | | | $ | 0.56 | |
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| Weighted average shares: | | | | | | | | | | | | | | | | |
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| Basic | | | 11,082 | | | | 10,888 | | | | 11,023 | | | | 10,869 | |
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| Diluted | | | 11,271 | | | | 11,140 | | | | 11,207 | | | | 11,090 | |
| | | | | | | | | | | | | |
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| SELECTED FINANCIAL DATA: | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Capital Expenditures | | $ | 1,433 | | | $ | 2,158 | | | $ | 11,111 | | | $ | 4,803 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Depreciation and amortization | | $ | 3,035 | | | $ | 1,443 | | | $ | 8,225 | | | $ | 4,906 | |
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POWELL INDUSTRIES, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
| | | | | | | | | |
| | | June 30, | | | September 30, | |
| | | 2007 | | | 2006 | |
| (In thousands) | | (Unaudited) | | | (As restated) | |
| | | | | | | | | |
| Assets: | | | | | | | | |
| | | | | | | | | |
| Current assets | | $ | 237,916 | | | $ | 193,500 | |
| | | | | | | | | |
| Property, plant and equipment (net) | | | 66,337 | | | | 60,336 | |
| | | | | | | | | |
| Other assets | | | 36,531 | | | | 38,842 | |
| | | | | | | |
| | | | | | | | | |
| Total assets | | $ | 340,784 | | | $ | 292,678 | |
| | | | | | | |
| | | | | | | | | |
| Liabilities & stockholders’ equity: | | | | | | | | |
| | | | | | | | | |
| Current liabilities | | $ | 123,938 | | | $ | 98,612 | |
| | | | | | | | | |
| Long-term debt and capital lease obligations, net of current maturities | | | 43,302 | | | | 33,886 | |
| | | | | | | | | |
| Deferred and other long-term liabilities | | | 2,967 | | | | 2,971 | |
| | | | | | | | | |
| Stockholders’ equity and minority interest | | | 170,577 | | | | 157,209 | |
| | | | | | | |
| | | | | | | | | |
| Total liabilities and stockholders’ equity | | $ | 340,784 | | | $ | 292,678 | |
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POWELL INDUSTRIES, INC. & SUBSIDIARIES
BUSINESS SEGMENTS
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | June 30, 2007 | | | July 31, 2006 | | | June 30, 2007 | | | July 31, 2006 | |
| | | | | | | (As restated) | | | | | | | (As restated) | |
| (In thousands) | | (Unaudited) | | | (Unaudited) | |
| | | | | | | | | | | | | | | | | |
| Revenues: | | | | | | | | | | | | | | | | |
| Electrical Power Products | | $ | 143,051 | | | $ | 96,896 | | | $ | 396,428 | | | $ | 265,413 | |
| Process Control Systems | | | 6,080 | | | | 7,125 | | | | 17,391 | | | | 20,852 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Total revenues | | $ | 149,131 | | | $ | 104,021 | | | $ | 413,819 | | | $ | 286,265 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Income before income taxes: | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Electrical Power Products | | $ | 4,769 | | | $ | 2,621 | | | $ | 11,107 | | | $ | 9,522 | |
| Process Control Systems | | | 95 | | | | 167 | | | | 579 | | | | 893 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Total income before income taxes | | $ | 4,864 | | | $ | 2,788 | | | $ | 11,686 | | | $ | 10,415 | |
| | | | | | | | | | | | | |
| | | | | | | | | |
| | | June 30, | | | September 30, | |
| | | 2007 | | | 2006 | |
| (In thousands) | | (Unaudited) | |
| Backlog: | | | | | | | | |
| | | | | | | | | |
| Electrical Power Products | | $ | 381,862 | | | $ | 324,688 | |
| Process Control Systems | | | 29,015 | | | | 30,440 | |
| | | | | | | |
| | | | | | | | | |
| Total backlog | | $ | 410,877 | | | $ | 355,128 | |
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