Powell Industries Announces Fiscal 2020 Second Quarter Results
Highest Backlog in Company History
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
March 31,
Six Months Ended
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
713-529-6600
View original content:http://www.prnewswire.com/news-releases/powell-industries-announces-fiscal-2020-second-quarter-results-301053349.html
SOURCE Powell Industries, Inc.
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 |
||||||||||||||
|
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 |
|
|
713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/powell-industries-announces-fiscal-2020-second-quarter-results-301053349.html
SOURCE Powell Industries, Inc.