Welcome!

News Feed Item

Powell Industries Announces Fiscal 2014 First Quarter Results

Reports net income of $0.68 per diluted share

HOUSTON, Feb. 4, 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 first quarter ended December 31, 2013. 

Revenues for the first quarter of fiscal 2014 were $171.9 million compared to revenues of $146.9 million for the first quarter of fiscal 2013.  Net income for the first quarter of fiscal 2014 was $8.3 million or $0.68 per diluted share, compared to net income of $7.4 million, or $0.62 per diluted share, in the first quarter of fiscal 2013.  On January 15, 2014, subsequent to the first quarter of fiscal 2014, Powell closed the sale of its subsidiary, Transdyn, Inc. and has recorded the first quarter results of Transdyn as discontinued operations.  Net income from continuing operations for the first quarter was $7.3 million or $0.60 per diluted share.

Michael A. Lucas, President and Chief Executive Officer, stated, "We are pleased to begin the year with a solid first quarter, with healthy revenue growth and order rates continuing at the pace of recent quarters.  During the first quarter, we received orders for several smaller petrochemical projects, and indications point to larger project awards occurring later this year.  Activity in the Canadian market continues to be strong, and orders for the first quarter were ahead of our expectations as we began to see the initial results from the investments we made in Canada.  We continue to see opportunities in the oil and gas market, particularly in pipeline, petrochemical and LNG projects.

"Although we sold our intelligent transportation business, we retained key strategic elements that will continue to support our customers with electrical power management and industrial control solutions. None of the changes announced this quarter alters our expectations for fiscal 2014 or our positive market view."

New orders from continuing operations in the fiscal 2014 first quarter were $192 million compared to $196 million in the fourth quarter of fiscal 2013 and compared to $251 million in the first quarter of fiscal 2013.  The Company's backlog for continuing operations as of December 31, 2013 was $455 million compared to $438 million as of September 30, 2013 and compared to $469 million at the end of last year's first quarter.

On December 30, 2013, Powell amended a supply agreement with one of its major customers, which resulted in a deferred credit of $5.2 million, net of tax, which will be recognized over the four year life of the amended agreement, which began January 1, 2014.

On January 15, 2014, subsequent to the first quarter of fiscal 2014, Powell closed the sale of its subsidiary, Transdyn, Inc. to Kapsch TrafficCom, a global provider of electronic toll collection systems, for a price of $16 million subject to post-closing working capital adjustments.  Transdyn had been reported in Powell's Process Control Systems business segment.  Powell retained important strategic operations from its Process Control Systems business segment that serve the key markets of oil and gas, industrial, utility and traction power, and these operations have been integrated into the Electrical Power Products segment.

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.   Fiscal year 2014 earnings guidance from continuing operations has increased to a range of $2.85 to $3.35 per diluted share from the previous guidance of $2.75 to $3.25 per diluted share.  This earnings guidance includes the current year amortization of the deferred credit related to Powell's amended supply agreement of  $0.08 per diluted share and excludes the discontinued operations of Transdyn, Inc. and the associated gain from the sale of the business that will be recorded in the fiscal 2014 second quarter.

CONFERENCE CALL
Powell Industries has scheduled a conference call for Wednesday, February 5, 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 February 12, 2014.  To access the replay, dial 303-590-3030 using a passcode of 4663343#.

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.

Contacts:

Don R. Madison, CFO


Powell Industries, Inc.


713-947-4422

 

POWELL INDUSTRIES, INC. & SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS



Three Months Ended

December 31,


2013


2012

(In thousands, except per share data)

(Unaudited)





Revenues

$   171,872


$   146,858

Cost of goods sold

136,714


114,456

Gross profit

35,158


32,402





Selling, general and administrative expenses

21,632


19,686

Research and development expenses

1,839


1,714

Amortization of intangible assets

416


415

Operating income

11,271


10,587





Interest expense

69


61

Interest income

(3)


(19)

Income before income taxes

11,205


10,545





Income tax provision

3,937


3,425





Income from continuing operations

7,268


7,120





Income from discontinued operations, net of tax of $502 and $144

987


265





Net income

$        8,255


$        7,385





Earnings per share:




        Continuing operations

$          0.61


$          0.60

        Discontinued operations

0.08


0.02

                Basic earnings per share

$          0.69


$          0.62





        Continuing operations

$          0.60


$          0.60

        Discontinued operations

0.08


0.02

                Diluted earnings per share

$          0.68


$          0.62





Weighted average shares:




        Basic

11,994


11,922

        Diluted

12,054


12,000


SELECTED FINANCIAL DATA:


Depreciation and Amortization

$        2,978


$         3,072

Capital Expenditures

$        5,764


$       13,375

 

POWELL INDUSTRIES, INC. & SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS



December 31,


September 30,


2013


2013

(In thousands)

(Unaudited)







Assets:








     Current assets

$    323,666


$     341,931





     Current assets held for sale

20,903


15,409





     Property, plant and equipment (net)

146,272


144,495





     Long-term assets

28,606


28,924





     Long-term assets held for sale

155


144





        Total assets

$    519,602


$     530,903









Liabilities & equity:








     Current liabilities

$    127,173


$     150,215





     Current liabilities held for sale

19,006


17,848





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

2,800


3,200





     Deferred and other long-term liabilities

10,876


4,210





     Long-term liabilities held for sale

191


204





     Stockholders' equity

359,556


355,226





        Total liabilities and stockholders' equity

$    519,602


$     530,903





 

SOURCE Powell Industries, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
In his session at @DevOpsSummit at 20th Cloud Expo, Kelly Looney, director of DevOps consulting for Skytap, showed how an incremental approach to introducing containers into complex, distributed applications results in modernization with less risk and more reward. He also shared the story of how Skytap used Docker to get out of the business of managing infrastructure, and into the business of delivering innovation and business value. Attendees learned how up-front planning allows for a clean sep...
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, shared examples from a wide range of industries – including en...
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
Enterprise architects are increasingly adopting multi-cloud strategies as they seek to utilize existing data center assets, leverage the advantages of cloud computing and avoid cloud vendor lock-in. This requires a globally aware traffic management strategy that can monitor infrastructure health across data centers and end-user experience globally, while responding to control changes and system specification at the speed of today’s DevOps teams. In his session at 20th Cloud Expo, Josh Gray, Chie...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
"At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
Consumers increasingly expect their electronic "things" to be connected to smart phones, tablets and the Internet. When that thing happens to be a medical device, the risks and benefits of connectivity must be carefully weighed. Once the decision is made that connecting the device is beneficial, medical device manufacturers must design their products to maintain patient safety and prevent compromised personal health information in the face of cybersecurity threats. In his session at @ThingsExpo...
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.