EX-99.1 2 ex991-q318earningsrelease.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1
powelllogo.jpg
PRESS RELEASE



Contacts:    Don R. Madison, CFO
Powell Industries, Inc.
713-947-4422



POWELL INDUSTRIES ANNOUNCES
FISCAL 2018 THIRD QUARTER RESULTS

HOUSTON — AUGUST 7, 2018 — Powell Industries, Inc. (NASDAQ: POWL), a leading supplier of custom engineered solutions for the management, control and distribution of electrical energy, today announced results for the fiscal 2018 third quarter ended June 30, 2018.
Revenues for the third quarter of fiscal 2018 were $122.1 million, compared to revenues of $101.5 million for the second quarter of 2018 and revenues of $85.9 million for the third quarter of fiscal 2017. The Company reported net income for the third quarter of $0.3 million, or $0.03 per diluted share, compared to a net loss of $3.3 million, or $0.29 per diluted share for the second quarter of fiscal 2018 and a net loss of $3.2 million, or $0.28 per diluted share, for the third quarter of fiscal 2017.
Brett A. Cope, Powell’s President and Chief Executive Officer, stated, “Our third quarter 2018 results reflect continued improvements in our operations, driven by U.S. operations. We also continued to make progress completing work on lower margin projects while proactively increasing the volume and margin quality of our backlog. New awards this quarter maintained the pace from last quarter with improved activity in our core markets, especially from refineries, petrochemical facilities and new pipeline projects.”

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New orders placed during the third quarter of fiscal 2018 totaled $139 million compared to $142 million in the second quarter of fiscal 2018 and compared to $91 million in the third quarter of fiscal 2017. The Company’s backlog as of June 30, 2018 was $316 million compared to $300 million as of March 31, 2018 and compared to $233 million at the end of last year’s third quarter.

OUTLOOK
Powell anticipates its fiscal 2018 fourth quarter earnings performance to show continued improvement over the third quarter results. However, the company continues to expect to report a net loss for fiscal 2018.

CONFERENCE CALL
Powell Industries has scheduled a conference call for Wednesday, August 8, 2018 at 11:00 a.m. Eastern time. To participate in the conference call, dial 412-902-0030 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, 2018. To access the replay, dial 201-612-7415 using a passcode of 13681014#.
Investors, analysts and the general public will also have the opportunity to listen to the conference call over the Internet by visiting 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 powellind.com.
Powell Industries, Inc., headquartered in Houston, designs, manufactures and services custom-engineered equipment and systems for the distribution, control and monitoring of electrical energy.  Powell markets include large industrial customers such as utilities, oil and gas producers, refineries, petrochemical plants, pulp and paper producers, mining operations and commuter railways.   For more information, please visit 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,

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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.



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POWELL INDUSTRIES, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS

 
Three months ended June 30,
 
Nine months ended June 30,
 
2018
 
2017
 
2018
 
2017
(In thousands, except per share data)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
Revenues
$
122,130

 
$
85,927

 
$
313,819

 
$
300,948

Cost of goods sold
103,755

 
76,873

 
272,469

 
261,073

Gross profit
18,375

 
9,054

 
41,350

 
39,875

 
 
 
 
 
 
 
 
Selling, general and administrative expenses
16,174

 
14,761

 
48,462

 
46,453

Research and development expenses
1,632

 
1,726

 
4,926

 
4,818

Amortization of intangible assets
44

 
87

 
161

 
263

Restructuring and separation expenses
—

 
—

 
—

 
840

Operating income (loss)
525

 
(7,520
)
 
(12,199
)
 
(12,499
)
 
 
 
 
 
 
 
 
Other income
—

 
(507
)
 
(507
)
 
(1,522
)
Interest expense
51

 
41

 
153

 
122

Interest income
(215
)
 
(156
)
 
(711
)
 
(287
)
Income (loss) before income taxes
689

 
(6,898
)
 
(11,134
)
 
(10,812
)
 
 
 
 
 
 
 
 
Income tax provision (benefit)
388

 
(3,683
)
 
(2,443
)
 
(6,469
)
 
 
 
 
 
 
 
 
Net income (loss)
$
301

 
$
(3,215
)
 
$
(8,691
)
 
$
(4,343
)
 
 
 
 
 
 
 
 
Income (loss) per share:
 
 
 
 
 
 
 
   Basic
$
0.03

 
$
(0.28
)
 
$
(0.76
)
 
$
(0.38
)
   Diluted
$
0.03

 
$
(0.28
)
 
$
(0.76
)
 
$
(0.38
)
 
 
 
 
 
 
 
 
Weighted average shares:
 
 
 
 
 
 
 
   Basic
11,514

 
11,463

 
11,503

 
11,449

   Diluted
11,587

 
11,463

 
11,503

 
11,449

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SELECTED FINANCIAL DATA:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization
$
3,231

 
$
3,167

 
$
9,655

 
$
9,481

Capital Expenditures
$
1,163

 
$
818

 
$
3,978

 
$
2,520

Dividends Paid
$
2,980

 
$
2,971

 
$
8.934

 
$
8,904



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POWELL INDUSTRIES, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

 
June 30, 2018
 
September 30, 2017
(In thousands)
(Unaudited)
 
 
 
 
Assets:
 
 
 
 
 
 
 
   Cash and cash equivalents and short-term investments
$
55,293

 
$
95,188

 
 
 
 
 Restricted cash
19,952

 
15,104

 
 
 
 
   Other current assets
177,177

 
139,779

 
 
 
 
   Property, plant and equipment (net)
130,545

 
139,420

 
 
 
 
 Restricted cash (non-current)
3,635

 
9,747

 
 
 
 
   Long-term assets
22,048

 
15,748

 
 
 
 
      Total assets
$
408,650

 
$
414,986

 
 
 
 
 
 
 
 
Liabilities and equity:
 
 
 
 
 
 
 
   Current liabilities
$
99,119

 
$
85,579

 
 
 
 
   Long-term debt, net of current maturities
1,200

 
1,600

 
 
 
 
   Deferred and other long-term liabilities
6,884

 
6,511

 
 
 
 
   Stockholders’ equity
301,447

 
321,296

 
 
 
 
      Total liabilities and stockholders’ equity
$
408,650

 
$
414,986

 
 
 
 
 
 
 
 
SELECTED FINANCIAL DATA:
 
 
 
 
 
 
 
   Working capital
$
153,303

 
$
164,492

 
 
 
 




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