Exhibit 99.1
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 | | PressRelease |
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| | | FOR IMMEDIATE RELEASE | | Contacts: | | Don R. Madison, CFO
Powell Industries, Inc.
713-947-4422 |
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| | | | | | | Ken Dennard / ksdennard@drg-e.com
Karen Roan / kcroan@drg-e.com
DRG&E / 713-529-6600 |
POWELL INDUSTRIES ANNOUNCES FISCAL 2008
THIRD QUARTER RESULTS
HOUSTON — AUGUST 6, 2008 — 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 2008 third quarter ended June 30, 2008.
Revenues for the third quarter of fiscal 2008 were $164.1 million compared to revenues of $149.1 million for the third quarter of fiscal 2007. Net income for the third quarter was $7.9 million, or $0.69 per diluted share, compared to net income of $3.2 million, or $0.28 per diluted share, in the third quarter of fiscal 2007.
Thomas W. Powell, Chairman and Chief Executive Officer, stated, “We are very pleased with our third quarter results. With the robust activity in our primary markets, our backlog stands at record levels and the need for energy continues to drive unprecedented strength in our business. The Company is well positioned, and our engineered solutions will continue to participate in world-wide oil and gas production as well as domestic electrical generation and distribution projects.”
Patrick L. McDonald, President and Chief Operating Officer, said, “Managing throughput in times of high business activity can be challenging, and we continue to seek process improvements throughout the Company to consistently meet customer demand. I am very pleased with the hard work and dedication of our employees as they rise to meet the daily challenges of this market.”
The Electrical Power Products segment recorded revenues of $156.5 million in the fiscal 2008 third quarter compared to $143.1 million in the third quarter of fiscal 2007. Income before
income taxes for Electrical Power Products in the third quarter totaled $11.2 million versus income before income taxes of $4.8 million in last year’s third quarter.
The Company’s backlog as of June 30, 2008 was $553 million compared to $537 million as of March 31, 2008 and compared to $411 million at the end of last year’s third fiscal quarter. New orders placed during the third quarter of fiscal 2008 totaled $188 million compared to $196 million in the second quarter of fiscal 2008 and compared to $151 million in the third quarter of fiscal 2007.
YEAR-TO-DATE RESULTS
Revenues for the first nine months of fiscal 2008 were $471.6 million compared to revenues of $413.8 million for the first nine months of fiscal 2007. Net income for the first nine months was $17.5 million, or $1.53 per diluted share, compared to net income of $7.5 million, or $0.67 per diluted share, in the comparable period of fiscal 2007.
The Electrical Power Products segment recorded revenues of $451.7 million in the first nine months of fiscal 2008 compared to $396.4 million in the first nine months of fiscal 2007. Income before income taxes for Electrical Power Products in the first nine months of fiscal 2008 totaled $25.3 million versus income before income taxes of $11.1 million in the comparable period of fiscal 2007.
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 now expects full year fiscal 2008 revenues to range between $645 million and $655 million and full year fiscal 2008 earnings to range between $2.10 and $2.20 per diluted share.
CONFERENCE CALL
Powell Industries has scheduled a conference call for Wednesday, August 6, 2008 at 11:00 a.m. eastern time. To participate in the conference call, dial 303-262-2142 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 13, 2008. To access the replay, dial 303-590-3000 using a passcode of 11117714#.
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, 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
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| | | Three Months Ended | | | Nine Months Ended | |
| | | June 30, 2008 | | | June 30, 2007 | | | June 30, 2008 | | | June 30, 2007 | |
| (In thousands, except per share data) | | (Unaudited) | | | (Unaudited) | |
| Revenues | | $ | 164,123 | | | $ | 149,131 | | | $ | 471,577 | | | $ | 413,819 | |
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| Cost of goods sold | | | 129,121 | | | | 121,705 | | | | 379,188 | | | | 343,538 | |
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| Gross profit | | | 35,002 | | | | 27,426 | | | | 92,389 | | | | 70,281 | |
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| Selling, general and administrative expenses | | | 21,774 | | | | 21,750 | | | | 62,846 | | | | 56,476 | |
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| Income before interest, income taxes and minority interest | | | 13,228 | | | | 5,676 | | | | 29,543 | | | | 13,805 | |
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| Interest expense | | | 697 | | | | 922 | | | | 2,333 | | | | 2,529 | |
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| Interest income | | | (59 | ) | | | (110 | ) | | | (260 | ) | | | (410 | ) |
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| Income before income taxes and minority interest | | | 12,590 | | | | 4,864 | | | | 27,470 | | | | 11,686 | |
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| Income tax provision | | | 4,753 | | | | 1,724 | | | | 10,118 | | | | 4,154 | |
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| Minority interest in net income (loss) | | | (56 | ) | | | (30 | ) | | | (156 | ) | | | 79 | |
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| Net income | | $ | 7,893 | | | $ | 3,170 | | | $ | 17,508 | | | $ | 7,453 | |
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| Net earnings per common share: | | | | | | | | | | | | | | | | |
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| Basic | | $ | 0.70 | | | $ | 0.29 | | | $ | 1.56 | | | $ | 0.68 | |
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| Diluted | | $ | 0.69 | | | $ | 0.28 | | | $ | 1.53 | | | $ | 0.67 | |
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| Weighted average shares: | | | | | | | | | | | | | | | | |
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| Basic | | | 11,310 | | | | 11,082 | | | | 11,233 | | | | 11,023 | |
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| Diluted | | | 11,470 | | | | 11,271 | | | | 11,416 | | | | 11,207 | |
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| SELECTED FINANCIAL DATA: | | | | | | | | | | | | | | | | |
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| Capital Expenditures | | $ | 439 | | | $ | 1,433 | | | $ | 1,969 | | | $ | 11,111 | |
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| Depreciation and amortization | | $ | 2,983 | | | $ | 3,035 | | | $ | 8,935 | | | $ | 8,225 | |
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POWELL INDUSTRIES, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
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| | | June 30, | | | September 30, | |
| | | 2008 | | | 2007 | |
| (In thousands) | | (Unaudited) | | | | | |
| Assets: | | | | | | | | |
| Current assets | | $ | 298,360 | | | $ | 236,886 | |
| Property, plant and equipment (net) | | | 63,006 | | | | 67,401 | |
| Other assets | | | 33,708 | | | | 36,728 | |
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| Total assets | | $ | 395,074 | | | $ | 341,015 | |
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| Liabilities & stockholders’ equity: | | | | | | | | |
| Current liabilities | | $ | 161,844 | | | $ | 135,612 | |
| Long-term debt and capital lease obligations, net of current maturities | | | 30,377 | | | | 27,372 | |
| Deferred and other long-term liabilities | | | 4,056 | | | | 4,184 | |
| Stockholders’ equity and minority interest | | | 198,797 | | | | 173,847 | |
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| Total liabilities and stockholders’ equity | | $ | 395,074 | | | $ | 341,015 | |
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POWELL INDUSTRIES, INC. & SUBSIDIARIES
BUSINESS SEGMENTS
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| | | Three Months Ended | | | Nine Months Ended | |
| | | June 30, 2008 | | | June 30, 2007 | | | June 30, 2008 | | | June 30, 2007 | |
| (In thousands) | | (Unaudited) | | | (Unaudited) | |
| Revenues: | | | | | | | | | | | | | | | | |
| Electrical Power Products | | $ | 156,516 | | | $ | 143,051 | | | $ | 451,699 | | | $ | 396,428 | |
| Process Control Systems | | | 7,607 | | | | 6,080 | | | | 19,878 | | | | 17,391 | |
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| Total revenues | | $ | 164,123 | | | $ | 149,131 | | | $ | 471,577 | | | $ | 413,819 | |
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| Income before income taxes and minority interest: | | | | | | | | | | | | | | | | |
| Electrical Power Products | | $ | 11,244 | | | $ | 4,769 | | | $ | 25,283 | | | $ | 11,107 | |
| Process Control Systems | | | 1,346 | | | | 95 | | | | 2,187 | | | | 579 | |
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| Total income before income taxes and minority interest | | $ | 12,590 | | | $ | 4,864 | | | $ | 27,470 | | | $ | 11,686 | |
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| | | June 30, | | | September 30, | |
| | | 2008 | | | 2007 | |
| (In thousands) | | (Unaudited) | |
| Identifiable tangible assets: | | | | | | | | |
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| Electrical Power Products | | $ | 336,365 | | | $ | 279,901 | |
| Process Control Systems | | | 11,685 | | | | 7,365 | |
| Corporate | | | 19,641 | | | | 23,460 | |
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| Total identifiable tangible assets | | $ | 367,691 | | | $ | 310,726 | |
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| Backlog: | | | | | | | | |
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| Electrical Power Products | | $ | 531,399 | | | $ | 434,902 | |
| Process Control Systems | | | 21,748 | | | | 29,596 | |
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| Total backlog | | $ | 553,147 | | | $ | 464,498 | |
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