Powell Industries Announces Fiscal 2020 Second Quarter Results
HOUSTON, May 5, 2020 /PRNewswire/ -- 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 2020 second quarter ended March 31, 2020.
Revenues for the second quarter of fiscal 2020 were $151.6 million compared to revenues of $134.2 million for the first quarter of fiscal 2020 and revenues of $123.7 million for the second quarter of fiscal 2019. The Company reported net income for the second quarter of 2020 of $7.4 million, or $0.64 per diluted share, compared to net income of $2.8 million, or $0.24 per diluted share, for the first quarter of fiscal 2020 and net income of $1.0 million, or $0.08 per diluted share for the second quarter of fiscal 2019.
New orders placed during the second quarter of fiscal 2020 totaled $301 million compared to $137 million in the first quarter of fiscal 2020 and $197 million in the second quarter of fiscal 2019. The Company's backlog as of March 31, 2020 was $566 million, an increase of 33% sequentially from $426 million at December 31, 2019 and compared to $397 million as of March 31, 2019.
Brett A. Cope, Powell's Chairman and Chief Executive Officer, stated, "As the global community is battling the COVID-19 pandemic, our number one priority has been the safety of our employees, customers and their families. I am very proud of all of our employees for their swift response implementing safe work practices across all of our facilities. We have maintained all of our operations supporting our customers as an essential business, providing critical electrical distribution solutions.
Our second quarter results reflect strong operational momentum that we have been building upon for the last several years. Our backlog at the end of the second quarter, a new company record, of $566 million positions us favorably for the remainder of 2020 and into 2021. Despite the impacts associated with COVID-19 and recent oil price declines, we are in a strong financial position supported by a solid balance sheet and a team of people that has prior experience successfully working through challenging market cycles."
OUTLOOK
Commenting on the company's outlook, Michael Metcalf, Powell's Chief Financial Officer said, "The business recorded another strong quarter to close out the first half of fiscal 2020, generating record backlog in the second quarter of the year. Supported by Powell's strong balance sheet and liquidity, we are well positioned to successfully execute on the backlog. In response to the recent challenges that have arisen as a result of COVID-19 and the impact on the global oil and gas markets, we remain committed to taking the necessary actions required in order to manage through the current market dynamics. We are confident that our focus on supply chain and project execution throughout the second half of the year will result in a profitable fiscal 2020 for the business."
CONFERENCE CALL
Powell Industries has scheduled a conference call for Wednesday, May 6, 2020 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 May 13, 2020. To access the replay, dial 201-612-7415 using a passcode of 13701781#.
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 15 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, 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, March 31,
2020 2019 2020 2019
---
(In thousands, except per share data)
(Unaudited)
Revenues $
151,570 $
123,737 $
285,720 $
233,088
Cost of goods sold 121,885 103,662 234,209 198,382
Gross profit 29,685 20,075 51,511 34,706
Selling, general
and administrative
expenses 18,573 17,195 35,861 33,123
Research and
development
expenses 1,783 1,663 3,258 3,357
Amortization of
intangible assets 44 44 88 88
Operating income
(loss) 9,285 1,173 12,304 (1,862)
Interest expense 60 55 127 111
Interest income (330) (245) (711) (402)
Income (loss)
before income
taxes 9,555 1,363 12,888 (1,571)
Income tax
provision
(benefit) 2,134 405 2,692 166
Net income (loss) $
7,421 $
958 $
10,196 $
(1,737)
Earnings (loss) per share: share:
Basic $
0.64 $
0.08 $
0.88 $
(0.15)
Diluted $
0.64 $
0.08 $
0.87 $
(0.15)
Weighted average shares: shares:
Basic 11,621 11,570 11,617 11,560
Diluted 11,681 11,632 11,673 11,560
SELECTED FINANCIAL DATA:
Depreciation and
Amortization $
2,644 $
3,239 $
5,241 $
6,460
Capital
Expenditures $
1,080 $
1,208 $
3,502 $
1,972
Dividends Paid $
3,015 $
2,996 $
6,028 $
5,988
POWELL INDUSTRIES, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, 2020 September 30, 2019
---
(In thousands)
(Unaudited)
Assets:
Cash, cash
equivalents and
short-term
investments $
120,571 $
124,681
Other current
assets 187,161 203,887
Property, plant
and equipment,
net 115,192 120,812
Long-term assets 23,673 18,031
Total assets $
446,597 $
467,411
Liabilities and equity:
Current
liabilities $
132,996 $
157,896
Long-term debt,
net of current
maturities 400 800
Deferred and other
long-term
liabilities 13,070 9,562
Stockholders'
equity 300,131 299,153
Total liabilities
and stockholders'
equity $
446,597 $
467,411
SELECTED FINANCIAL DATA:
Working capital $
174,736 $
170,672
Contacts:
Michael W. Metcalf, CFO
Powell Industries, Inc.
713-947-4422
Ken Dennard / Natalie Hairston
Dennard Lascar Investor Relations
POWL@dennardlascar.com
713-529-6600
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SOURCE Powell Industries, Inc.
