Powell Industries Announces Fiscal 2014 Second Quarter Results - wave3.com-Louisville News, Weather & Sports

Powell Industries Announces Fiscal 2014 Second Quarter Results

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE Powell Industries, Inc.

HOUSTON, May 6, 2014 /PRNewswire/ -- Powell Industries, Inc. (NASDAQ: POWL) ("Powell"), a leading supplier of custom engineered solutions for the distribution and control of electrical energy, today announced results for the fiscal 2014 second quarter ended March 31, 2014. 

Revenues for the second quarter of fiscal 2014 were $162.3 million compared to revenues of $146.0 million for the second quarter of fiscal 2013.  Income from continuing operations for the second quarter of fiscal 2014 was $7.0 million, or $0.58 per diluted share, compared to income from continuing operations of $6.2 million, or $0.52 per diluted share, in the second quarter of fiscal 2013. 

On January 15, 2014, Powell closed the sale of Transdyn, Inc. and has recorded the results of Transdyn as discontinued operations.  Income from discontinued operations in the second quarter of 2014, including the gain on sale, was $8.6 million, or $0.71 per diluted share.  Net income for the second quarter of fiscal 2014 was $15.6 million, or $1.29 per diluted share.

Michael A. Lucas, President and Chief Executive Officer, stated, "We had a solid second quarter, with improving margins as a result of our process enhancements and cost saving activities, and have a healthy ending backlog.  At the request of customers, we rescheduled shipments of a few large projects, which will result in some revenues being pushed into subsequent quarters.  These delivery changes are not uncommon to our project-based business, and we are working to add some short cycle work to fill available short-term capacity.  Additionally, we continued to manage efficiency and utilization challenges as we ramped up capacity in our Canadian operations.  In spite of this temporary issue, we are delivering on time and meeting customer commitments.

"We continue to see strength in the oil and gas market, with a significant portion of our activity in North America.  We remain optimistic about the key segments of pipelines, petrochemical and LNG.  Inquiry activity continues at a healthy pace, as we leverage our strong position in the U.S. and Canadian markets."

New orders from continuing operations in the fiscal 2014 second quarter were $163 million compared to $192 million in the first quarter of fiscal 2014 and compared to $118 million in the second quarter of fiscal 2013.  The Company's backlog for continuing operations as of March 31, 2014 was $452 million compared to $455 million as of December 31, 2013 and compared to $439 million at the end of last year's second quarter.

OUTLOOK
The following statements are based on the current expectations of the Company for its continuing operations.  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 2014 revenues from continuing operations to range between $700 million and $750 million and fiscal year 2014 earnings to range between $2.85 and $3.35 per diluted share.  This earnings guidance excludes the discontinued operations of Transdyn, Inc. and the associated gain on sale.

CONFERENCE CALL
Powell Industries has scheduled a conference call for Wednesday, May 7, 2014 at 11:00 a.m. eastern time.  To participate in the conference call, dial 480-629-9771 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 May 14, 2014.  To access the replay, dial 303-590-3030 using a passcode of 4679229#.

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, engineers packaged solutions and systems for the control, distribution and management 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, 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.

 

POWELL INDUSTRIES, INC. & SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS





Three Months Ended

Six Months Ended


March 31, 2014

March 31, 2013

March 31, 2014

March 31, 2013

(In thousands, except per share data)





(Unaudited)






Revenues

$   162,295

$   146,041

$   334,167

$   292,899

Cost of goods sold

127,367

116,498

$   264,081

230,954

Gross profit

34,928

29,543

70,086

61,945






Selling, general and administrative expenses

22,088

20,989

43,722

40,675

Research and development expenses

2,157

1,850

3,996

3,564

Amortization of intangible assets

121

413

536

828

Operating income

10,562

6,291

21,832

16,878






Other income

(507)

(1,709)

(507)

(1,709)

Interest expense

41

43

110

104

Interest income

(3)

(2)

(6)

(21)

Income from continuing operations before income taxes

11,031

7,959

22,235

18,504






Income tax provision

4,055

1,757

7,992

5,182






Income from continuing operations

6,976

6,202

14,243

13,322






Income from discontinued operations, net of tax

8,617

616

9,604

881






Net income

$     15,593

$       6,818

$     23,847

$     14,203






Earnings per share:





        Continuing operations

$         0.58

$         0.52

$         1.19

$         1.12

        Discontinued operations

$         0.72

$         0.05

$         0.80

$         0.07

                Basic earnings per share

$         1.30

$         0.57

$         1.99

$         1.19






        Continuing operations

$         0.58

$         0.52

$         1.18

$         1.11

        Discontinued operations

$         0.71

$         0.05

$         0.80

$         0.07

                Diluted earnings per share

$         1.29

$         0.57

$         1.98

$         1.18






Weighted average shares:





        Basic

12,004

11,953

11,999

11,946

        Diluted

12,064

12,029

12,057

12,021











SELECTED FINANCIAL DATA:










Depreciation and Amortization

$     2,617

$     2,355

$     5,595

$     5,427

Capital Expenditures

$     2,700

$   19,895

$     8,464

$   33,270

 

POWELL INDUSTRIES, INC. & SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS






March 31,


September 30,


2014


2013

(In thousands)

(Unaudited)







Assets:








     Current assets

$    341,941


$     341,931





     Current assets held for sale

---


15,409





     Property, plant and equipment (net)

145,055


144,495





     Long-term assets

28,068


28,924





     Long-term assets held for sale

---


144





        Total assets

$    515,064


$     530,903









Liabilities & equity:








     Current liabilities

$    130,241


$     150,215





     Current liabilities held for sale

---


17,848





     Long-term debt and capital lease obligations, net of current maturities

2,800


3,200





     Deferred and other long-term liabilities

10,476


4,210





     Long-term liabilities held for sale

---


204





     Stockholders' equity

371,547


355,226





        Total liabilities and stockholders' equity

$    515,064


$     530,903





 

Contacts:     

Don R. Madison, CFO 


Powell Industries, Inc.


713-947-4422

 

©2012 PR Newswire. All Rights Reserved.