HOUSTON, Aug. 1, 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 third quarter ended June 30, 2023. All comparisons are to the
comparable period in the prior fiscal year, unless otherwise
noted.
Fiscal Third Quarter Key Highlights:
- Revenues increased 42% to $192
million;
- Backlog(1) nearly tripled to a record
$1.3 billion;
- New orders(2) totaled $505 million, an increase of $303 million;
- Gross margin improved 810 basis points to 22.2%;
- Net Income more than doubled to $19
million, or $1.52 per diluted
share; and
- Cash and short-term investments as of June 30, 2023 totaled $210
million.
Brett A. Cope, Powell's Chairman and Chief Executive Officer,
stated, "Powell delivered another
quarter of financial results that were among the best in our
history, as commercial activity across our end markets and our
solid project execution are supporting our continued strong
performance. We recorded new orders that exceeded $500 million for the second consecutive quarter,
which included two greenfield LNG projects on the Gulf Coast that
combined for roughly $200 million.
Order activity remains healthy, which has resulted in growing the
backlog to $1.3 billion at the end of
the period, a 31% increase from the prior quarter, and the highest
level in the Company's history. Although our end markets remain
strong, the pace at which our backlog has grown over the last nine
months as a result of the large LNG and petrochemical project
bookings, will likely be more measured as we navigate through the
next several quarters. From a profitability perspective, we remain
pleased with our operational execution, increasing our gross margin
to 22.2% in the quarter, which is 810 basis points better versus
the prior year. Taken altogether, our focused efforts on our
strategic initiatives and our outlook for the remainder of fiscal
2023 and into 2024 leave us very confident that the momentum that
we have realized throughout this past fiscal year will continue
into fiscal 2024."
Revenues in the third fiscal quarter totaled $192.4 million, an increase of 42% compared to
$135.5 million in the prior year and
a sequential increase of 12% compared to $171.4 million in the second fiscal quarter.
Gross profit in the quarter totaled $42.7
million, an increase of $23.6
million compared to the prior year and an increase of
$9.3 million compared to $33.4 million in the second fiscal quarter. Gross
margin in the third quarter was 22.2%, an increase of 810 basis
points compared to the prior year and an increase of 270 basis
points compared to the second fiscal quarter.
New orders placed in the third quarter totaled $505 million, compared to $202 million in the prior year and $508 million in the second fiscal quarter.
Backlog as of June 30, 2023 was a
record $1.3 billion, an increase of
31% compared to $1.0 billion as of
March 31, 2023 and an increase of
166% compared to $503 million as of
the end of the third fiscal quarter in the prior year.
Net income in the third fiscal quarter more than doubled to
$18.5 million, or $1.52 per diluted share, compared to $9.1 million, or $0.76 per diluted share, in the prior year. The
prior year period included two non-recurring items that, when
combined, accounted for $7.5 million
of net income, or $0.63 per diluted
share. The net income in the fiscal third quarter also increased
compared to net income in the second fiscal quarter of $8.5 million, or $0.70 per diluted share.
Cope added, "The increased volume leverage and strong project
execution are helping support the margin growth across the
business, while our strategic efforts to diversify our revenue base
continues to yield positive results. Revenue from our newer
Commercial and Other Industrial sector more than doubled compared
to last year to more than $35 million
and we remain very pleased with our growth in this sector. We are
confident in our ability to execute on our backlog and meet
customer expectations through this period of growth. These large
projects are core to Powell's
capabilities and expertise and are being booked with realistic lead
times that will provide us with visibility into project schedules
that stretch into fiscal 2025."
OUTLOOK
Commenting on the Company's outlook, Michael Metcalf,
Powell's Chief Financial Officer,
said, "Looking forward, we anticipate continued strength across
most of our core end markets into fiscal 2024. We are encouraged by
the progress that has been made on margin accretion through a
variety of operational and commercial levers and will remain
focused on our operational priorities as we execute our record
backlog. While we do recognize the typical project challenges of
timing and mix, we are well positioned and confident in our ability
to effectively execute for our customers. Considering our
current backlog and sustained level of market activity, as well as
the strength of our balance sheet and liquidity position, we
anticipate that these variables will continue to support the
momentum of the business as we close out fiscal 2023 and look
forward to fiscal 2024."
CONFERENCE CALL
Powell Industries has scheduled a conference call for
Wednesday, August 2, 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 August 9, 2023 and
may be accessed by calling 1-877-344-7529 (domestic) or
1-412-317-0088 (international) and using passcode
8673999#.
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
June
30,
|
|
Nine Months
Ended
June
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
192,365
|
|
|
$
|
135,483
|
|
|
$
|
490,667
|
|
|
$
|
369,907
|
|
Cost of goods
sold
|
149,695
|
|
|
116,424
|
|
|
395,096
|
|
|
318,329
|
|
Gross profit
|
42,670
|
|
19,059
|
|
95,571
|
|
51,578
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
19,691
|
|
|
16,404
|
|
|
58,384
|
|
|
49,374
|
|
Research and
development expenses
|
1,427
|
|
|
1,806
|
|
|
4,471
|
|
|
5,342
|
|
Operating income
(loss)
|
21,552
|
|
|
849
|
|
|
32,716
|
|
|
(3,138)
|
|
|
|
|
|
|
|
|
|
Other income
|
-
|
|
|
(2,006)
|
|
|
-
|
|
|
(2,285)
|
|
Interest income,
net
|
(2,093)
|
|
|
(63)
|
|
|
(3,516)
|
|
|
(79)
|
|
Income (loss) before
income taxes
|
23,645
|
|
|
2,918
|
|
|
36,232
|
|
|
(774)
|
|
Income tax provision
(benefit)
|
5,191
|
|
|
(6,143)
|
|
|
8,142
|
|
|
(5,772)
|
|
Net income
|
$
|
18,454
|
|
|
$
|
9,061
|
|
|
$
|
28,090
|
|
|
$
|
4,998
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
1.55
|
|
|
$
|
0.77
|
|
|
$
|
2.37
|
|
|
$
|
0.42
|
|
Diluted
|
$
|
1.52
|
|
|
$
|
0.76
|
|
|
$
|
2.32
|
|
|
$
|
0.42
|
|
|
|
|
|
|
|
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
Basic
|
11,889
|
|
|
11,810
|
|
|
11,876
|
|
|
11,792
|
|
Diluted
|
12,140
|
|
|
11,901
|
|
|
12,106
|
|
|
11,877
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED FINANCIAL
DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
$
|
2,188
|
|
|
$
|
2,375
|
|
|
$
|
6,500
|
|
|
$
|
7,206
|
|
Capital
Expenditures
|
$
|
650
|
|
|
$
|
649
|
|
|
$
|
4,006
|
|
|
$
|
1,765
|
|
Dividends
Paid
|
$
|
3,112
|
|
|
$
|
3,064
|
|
|
$
|
9,292
|
|
|
$
|
9,170
|
|
POWELL INDUSTRIES,
INC. & SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
June 30,
2023
|
|
September 30,
2022
|
(In
thousands)
|
|
|
(Unaudited)
|
Assets:
|
|
|
|
|
|
|
|
Cash, cash
equivalents and short-term investments
|
$
|
209,769
|
|
|
$
|
116,508
|
|
|
|
|
|
Other
current assets
|
337,483
|
|
|
253,475
|
|
|
|
|
|
Property,
plant and equipment, net
|
96,876
|
|
|
98,628
|
|
|
|
|
|
Long-term
assets
|
26,970
|
|
|
24,769
|
|
|
|
|
|
Total
assets
|
$
|
671,098
|
|
|
$
|
493,380
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity:
|
|
|
|
|
|
|
|
Current
liabilities
|
$
|
334,996
|
|
|
$
|
186,373
|
|
|
|
|
|
Deferred
and other long-term liabilities
|
12,032
|
|
|
9,801
|
|
|
|
|
|
Stockholders' equity
|
324,070
|
|
|
297,206
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
671,098
|
|
|
$
|
493,380
|
|
|
|
|
|
|
|
|
|
SELECTED FINANCIAL
DATA:
|
|
|
|
|
|
|
|
Working
capital
|
$
|
212,256
|
|
|
$
|
183,610
|
|
|
|
|
|
(1)
|
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.
|
(2)
|
New orders
(bookings) represent the estimated value of contracts added to
existing backlog (unsatisfied performance
obligations).
|
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-third-quarter-results-301890880.html
SOURCE Powell Industries