HOUSTON, May 2, 2023
/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 2023 second quarter ended March
31, 2023. All comparisons are to the comparable period in
the prior fiscal year, unless otherwise noted.
Fiscal Second Quarter Key Highlights:
- Revenues strengthened to $171
million, an increase of 34%;
- Backlog more than doubled to a record $1.0 billion;
- New orders(1) more than tripled to $508 million;
- Gross margin improved 460 basis points to 19.5%;
- Net Income was $8.5 million, or
$0.70 per diluted share; and
- Cash and short-term investments as of March 31, 2023 totaled $163 million.
Brett A. Cope, Powell's Chairman and Chief Executive Officer,
stated, "Powell delivered
quarterly results that were among the best in its history, as our
continued execution against our strategic initiatives combined with
the cyclical recovery of our core markets drove new orders of
$508 million – our highest ever
quarterly total. We also delivered $171
million of revenue, an increase of 34% compared to last
year, which resulted in a book-to-bill ratio(2) of
3.0x – the sixth consecutive quarter above 1.0x. Further, our order
backlog is now over $1.0 billion as
the breadth of order activity across our end markets remains
healthy and is complementing a strong recovery of commercial
activity within our core Industrial markets. Overall, we feel very
confident that our strategic efforts are positioning Powell for long-term success and that we are
well-positioned to drive improved earnings in fiscal 2023."
Revenues for the second fiscal quarter totaled $171.4 million, an increase of 34% compared to
$127.9 million in the prior year,
which represents sequential growth of 35% compared to $126.9 million in the first fiscal quarter.
Gross profit in the quarter totaled $33.4
million, an increase of $14.4
million, or 75%, compared to the prior year, and compared to
$19.5 million in the fiscal first
quarter. Gross margin in the second quarter was 19.5%, an increase
of 460 basis points compared to the prior year and 420 basis points
compared to the fiscal first quarter.
New orders placed in the second quarter more than tripled to
$508 million compared to $151 million in the prior year, and more than
doubled compared to $212 million in
the first quarter.
Backlog as of March 31, 2023 was a
record $1.0 billion, an increase of
50% compared to $680 million as of
December 31, 2022, and compared to
$440 million at the end of the fiscal
second quarter in the prior year.
Net income in the second fiscal quarter totaled $8.5 million, or $0.70 per diluted share, compared to a net loss
of $1.2 million, or a loss of
$0.10 per diluted share, in the prior
year and net income of $1.2 million,
or $0.10 per diluted share, in the
first fiscal quarter.
Cope added, "Order activity in our core Oil, Gas &
Petrochemical markets accelerated in our second quarter as we were
awarded another large domestic LNG project during the quarter,
marking three consecutive quarters with significant new activity in
these markets. We are also very fortunate and pleased to have
secured a large Petrochemical project during the quarter, also for
the US domestic market. The nature and scope of these
projects are core to what Powell
does best. Our 75-year history of success and leadership in the
industry has earned us our current position in this cycle and
leaves us very comfortable with our ability to fulfill our backlog
with the same level of service and execution that has earned us our
reputation. We have taken every dollar of our backlog thoughtfully
and on schedules that we are confident we can achieve."
OUTLOOK
Commenting on the Company's outlook, Michael Metcalf, Powell's Chief Financial Officer, said, "We
are very encouraged by the level of commercial activity across our
core end markets, while many of the margin initiatives that we have
been working on are beginning to deliver positive results. Further,
the current cadence of project activity in our $1.0 billion backlog, combined with our capacity
levels and the strength of the balance sheet, put us in a strong
position to execute on our order book and fulfill our commitments
to our customers. Concurrent with these operational objectives, we
continue to evaluate both new organic investments into the business
as well as inorganic opportunities as we progress our corporate
strategy. As such, and given the current activity levels across our
market sectors, we took an important step forward in the second
fiscal quarter, amending our credit facility by increasing the
capacity in order to ensure our continued commercial success. Taken
altogether, we are confident that Powell will deliver improved revenues and
earnings in fiscal 2023 and into fiscal 2024."
CONFERENCE CALL
Powell Industries has scheduled a conference call for
Wednesday, May 3, 2023, at
11:00 a.m. Eastern time. To
participate in the conference call, dial 1-833-953-2431 (domestic)
or 1-412-317-5760 (international) and ask for the Powell Industries
conference call. A telephonic replay of the conference call
will be available through May 10,
2023 and may be accessed by calling 1-877-344-7529
(domestic) or 1-412-317-0088 (international) and using passcode
2136094#.
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,
liquefied natural gas facilities, 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. Examples of
forward-looking statements include, among others, statements
regarding expected operating results, such as revenue and earnings
growth and recognition of backlog as revenue. 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,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
171,444
|
|
|
$
|
127,854
|
|
|
$
|
298,302
|
|
|
$
|
234,423
|
|
Cost of goods
sold
|
138,007
|
|
|
108,771
|
|
|
245,401
|
|
|
201,904
|
|
Gross profit
|
33,437
|
|
19,083
|
|
|
52,901
|
|
|
32,519
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
21,820
|
|
|
17,067
|
|
|
38,693
|
|
|
32,969
|
|
Research and
development expenses
|
1,543
|
|
|
1,713
|
|
|
3,044
|
|
|
3,537
|
|
Operating income
(loss)
|
10,074
|
|
|
303
|
|
|
11,164
|
|
|
(3,987)
|
|
|
|
|
|
|
|
|
|
Other income
|
-
|
|
|
(279)
|
|
|
-
|
|
|
(279)
|
|
Interest income,
net
|
(899)
|
|
|
(13)
|
|
|
(1,423)
|
|
|
(16)
|
|
Income (loss) before
income taxes
|
10,973
|
|
|
595
|
|
|
12,587
|
|
|
(3,692)
|
|
Income tax
provision
|
2,500
|
|
|
1,812
|
|
|
2,951
|
|
|
371
|
|
Net income
(loss)
|
$
|
8,473
|
|
|
$
|
(1,217)
|
|
|
$
|
9,636
|
|
|
$
|
(4,063)
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.71
|
|
|
$
|
(0.10)
|
|
|
$
|
0.81
|
|
|
$
|
(0.34)
|
|
Diluted
|
$
|
0.70
|
|
|
$
|
(0.10)
|
|
|
$
|
0.80
|
|
|
$
|
(0.34)
|
|
|
|
|
|
|
|
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
Basic
|
11,878
|
|
|
11,801
|
|
|
11,869
|
|
|
11,783
|
|
Diluted
|
12,149
|
|
|
11,801
|
|
|
12,109
|
|
|
11,783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED FINANCIAL
DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
$
|
2,176
|
|
|
$
|
2,417
|
|
|
$
|
4,312
|
|
|
$
|
4,831
|
|
Capital
Expenditures
|
$
|
630
|
|
|
$
|
680
|
|
|
$
|
3,356
|
|
|
$
|
1,116
|
|
Dividends
Paid
|
$
|
3,106
|
|
|
$
|
3,058
|
|
|
$
|
6,180
|
|
|
$
|
6,106
|
|
POWELL INDUSTRIES,
INC. & SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
March 31,
2023
|
|
September 30,
2022
|
(In
thousands)
|
|
|
(Unaudited)
|
Assets:
|
|
|
|
|
|
|
|
Cash, cash
equivalents and short-term investments
|
$
|
163,124
|
|
|
$
|
116,508
|
|
|
|
|
|
Other
current assets
|
300,076
|
|
|
253,475
|
|
|
|
|
|
Property,
plant and equipment, net
|
97,910
|
|
|
98,628
|
|
|
|
|
|
Long-term
assets
|
25,986
|
|
|
24,769
|
|
|
|
|
|
Total
assets
|
$
|
587,096
|
|
|
$
|
493,380
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity:
|
|
|
|
|
|
|
|
Current
liabilities
|
$
|
269,691
|
|
|
$
|
186,373
|
|
|
|
|
|
Deferred
and other long-term liabilities
|
11,610
|
|
|
9,801
|
|
|
|
|
|
Stockholders' equity
|
305,795
|
|
|
297,206
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
587,096
|
|
|
$
|
493,380
|
|
|
|
|
|
|
|
|
|
SELECTED FINANCIAL
DATA:
|
|
|
|
|
|
|
|
Working
capital
|
$
|
193,509
|
|
|
$
|
183,610
|
|
|
|
|
|
(1)
|
New orders (bookings)
represent the estimated value of contracts added to existing
backlog (unsatisfied performance obligations).
|
(2)
|
The book-to-bill ratio
represents the ratio of new orders (bookings) received in the
period divided by the revenues recognized in the period. We believe
the book-to-bill ratio is an important metric for readers as it
relates to the change in the backlog level. A ratio greater than
1.0 indicates growing backlog levels, while a ratio less than 1.0
indicates that the business is experiencing a period of contracting
backlog. The amounts recorded in backlog may not be a reliable
indicator of our future operating results and may not be indicative
of continuing revenue performance over future fiscal quarters or
years primarily due to unexpected contract adjustments,
cancellations or scope reductions.
|
Contacts:
|
Michael W. Metcalf,
CFO
|
|
Powell Industries,
Inc.
|
|
713-947-4422
|
|
|
|
Robert Winters or Ryan
Coleman
|
|
Alpha IR
Group
|
|
POWL@alpha-ir.com
|
|
312-445-2870
|
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content:https://www.prnewswire.com/news-releases/powell-industries-announces-fiscal-2023-second-quarter-results-301813612.html
SOURCE Powell Industries