Exhibit 99.1
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 | | PressRelease |
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| | | Contacts: | | Don R. Madison, CFO |
| | | | | Powell Industries, Inc. |
FOR IMMEDIATE RELEASE | | | | |
| | | | | 713-947-4422 |
| | | | | |
| | | | | Ken Dennard / ksdennard@drg-e.com |
| | | | | Karen Roan / kcroan@drg-e.com |
| | | | | DRG&E / 713-529-6600 |
POWELL INDUSTRIES ANNOUNCES FISCAL 2009
FIRST QUARTER RESULTS
HOUSTON — FEBRUARY 9, 2009 — 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 2009 first quarter ended December 31, 2008.
Revenues for the first quarter of fiscal 2009 were $170.5 million compared to revenues of $147.1 million for the first quarter of fiscal 2008. Net income for the first quarter was $7.9 million, or $0.68 per diluted share, compared to net income of $3.6 million, or $0.32 per diluted share, in the first quarter of fiscal 2008.
Patrick L. McDonald, President and Chief Executive Officer, stated, “We are pleased with our solid first quarter results in what is traditionally a tough quarter for the Company. The health of our backlog and our demonstrated performance in this quarter support our continued confidence in our full year outlook during this challenging economic environment.
“Looking forward, we continue our efforts to broaden our scope and leverage the market opportunities while we seek new solutions with smart systems and intelligent products that provide even greater value to our customer base. Powell’s long-term prospects are bright, and our long-term outlook remains upbeat.”
The Company’s backlog as of December 31, 2008 was $509 million compared to $519 million as of September 30, 2008 and compared to $502 million at the end of last year’s first quarter. New orders placed during the first quarter of fiscal 2009 totaled $172 million compared to $136 million in the fourth quarter of fiscal 2008 and compared to $185 million in the first quarter of fiscal 2008.
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 continues to expect full year fiscal 2009 revenues to range between $700 million and $725 million and full year fiscal 2009 earnings to range between $2.60 and $2.85 per diluted share.
CONFERENCE CALL
Powell Industries has scheduled a conference call for Tuesday, February 10, 2009 at 11:00 a.m. eastern time. To participate in the conference call, dial 303-262-2161 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 February 17, 2009. To access the replay, dial 303-590-3000 using a passcode of 11125908#.
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 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
| | | | | | | | | |
| | | Three Months Ended | |
| | | December 31, | |
| | | 2008 | | | 2007 | |
| (In thousands, except per share data) | | (Unaudited) | |
| Revenues | | $ | 170,489 | | | $ | 147,121 | |
| Cost of goods sold | | | 135,987 | | | | 120,426 | |
| | | | | | | |
| Gross profit | | | 34,502 | | | | 26,695 | |
| Selling, general and administrative expenses | | | 21,561 | | | | 20,111 | |
| | | | | | | |
| Income before interest, income taxes and minority interest | | | 12,941 | | | | 6,584 | |
| Interest expense | | | 472 | | | | 865 | |
| Interest income | | | (57 | ) | | | (115 | ) |
| | | | | | | |
| Income before income taxes and minority interest | | | 12,526 | | | | 5,834 | |
| Income tax provision | | | 4,397 | | | | 2,129 | |
| Minority interest | | | 276 | | | | 119 | |
| | | | | | | |
| Net income | | $ | 7,853 | | | $ | 3,586 | |
| | | | | | | |
| | | | | | | | | |
| Net earnings per common share: | | | | | | | | |
| Basic | | $ | 0.69 | | | $ | 0.32 | |
| | | | | | | |
| Diluted | | $ | 0.68 | | | $ | 0.32 | |
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| | | | | | | | | |
| Weighted average shares: | | | | | | | | |
| Basic | | | 11,413 | | | | 11,155 | |
| | | | | | | |
| Diluted | | | 11,479 | | | | 11,372 | |
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| SELECTED FINANCIAL DATA: | | | | | | | | |
| Depreciation and amortization | | $ | 2,795 | | | $ | 2,897 | |
| | | | | | | |
| Capital Expenditures | | $ | 1,965 | | | $ | 746 | |
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POWELL INDUSTRIES, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
| | | | | | | | | |
| | | December 31, | | | September 30, | |
| | | 2008 | | | 2008 | |
| (In thousands) | | (Unaudited) | | | | | |
| | | | | | | | | |
| Assets: | | | | | | | | |
| Current assets | | $ | 309,129 | | | $ | 303,435 | |
| Property, plant and equipment (net) | | | 59,839 | | | | 61,546 | |
| Other assets | | | 31,313 | | | | 32,653 | |
| | | | | | | |
| Total assets | | $ | 400,281 | | | $ | 397,634 | |
| | | | | | | |
| | | | | | | | | |
| Liabilities & stockholders’ equity: | | | | | | | | |
| Current liabilities | | $ | 177,750 | | | $ | 152,736 | |
| Long-term debt and capital lease obligations, net of current maturities | | | 8,709 | | | | 33,944 | |
| Deferred and other long-term liabilities | | | 3,803 | | | | 3,832 | |
| Stockholders’ equity and minority interest | | | 210,019 | | | | 207,122 | |
| | | | | | | |
| Total liabilities and stockholders’ equity | | $ | 400,281 | | | $ | 397,634 | |
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POWELL INDUSTRIES, INC. & SUBSIDIARIES
BUSINESS SEGMENTS
| | | | | | | | | |
| | | Three Months Ended | |
| | | December 31, | |
| | | 2008 | | | 2007 | |
| (In thousands) | | (Unaudited) | |
| | | | | | | | | |
| Revenues: | | | | | | | | |
| Electrical Power Products | | $ | 163,910 | | | $ | 141,089 | |
| Process Control Systems | | | 6,579 | | | | 6,032 | |
| | | | | | | |
| Total revenues | | $ | 170,489 | | | $ | 147,121 | |
| | | | | | | |
| | | | | | | | | |
| Income before income taxes: | | | | | | | | |
| Electrical Power Products | | $ | 12,119 | | | $ | 5,614 | |
| Process Control Systems | | | 407 | | | | 220 | |
| | | | | | | |
| Total income before income taxes | | $ | 12,526 | | | $ | 5,834 | |
| | | | | | | |
| | | | | | | | | |
| | | December 31, | | | September 30, | |
| | | 2008 | | | 2008 | |
| (In thousands) | | (Unaudited) | |
| | | | | | | | | |
| Identifiable tangible assets: | | | | | | | | |
| Electrical Power Products | | $ | 330,334 | | | $ | 342,105 | |
| Process Control Systems | | | 8,056 | | | | 8,734 | |
| Corporate | | | 36,842 | | | | 20,507 | |
| | | | | | | |
| Total identifiable tangible assets | | $ | 375,232 | | | $ | 371,346 | |
| | | | | | | |
| | | | | | | | | |
| Backlog: | | | | | | | | |
| Electrical Power Products | | $ | 484,464 | | | $ | 493,025 | |
| Process Control Systems | | | 24,964 | | | | 25,535 | |
| | | | | | | |
| Total backlog | | $ | 509,428 | | | $ | 518,560 | |
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