Powell Industries Announces Fiscal 2021 First Quarter Results

Rhea-AI Summary

Powell Industries reported fiscal Q1 2021 revenues of $107 million, down from $134.2 million in Q1 2020. The company incurred a net loss of $364,000 or $0.03 per diluted share. New orders totaled $91 million, a significant increase from $57 million in Q4 2020, yet lower than $137 million in Q1 2020. Backlog decreased to $465 million, a 2% decline from Q4 2020. Despite challenges in core markets, Powell remains optimistic about its backlog conversion and potential growth opportunities, especially in Utility and Traction sectors.

Positive

• New orders surged to $91 million, up from $57 million in Q4 2020.
• Strong backlog of $465 million, despite a 2% decrease from the previous quarter.
• Financial strength with $150 million in cash and short-term investments.

Negative

• Revenue decreased 21% year-over-year from $134.2 million in Q1 2020.
• Net loss of $364,000 compared to a profit of $2.8 million in Q1 2020.
• Backlog declined 2% from $477 million as of September 30, 2020.

HOUSTON, Feb. 2, 2021 /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 2021 first quarter ended December 31, 2020.

Fiscal First Quarter Key Highlights:

• Revenues totaled $107 million;
• Backlog as of December 31, 2020 totaled $465 million;
• Net Loss was $364 thousand, or a $0.03 loss per diluted share;
• Cash and short-term investments as of December 31, 2020 totaled $150 million.

Brett A. Cope, Powell's Chairman and Chief Executive Officer, stated, "Despite ongoing challenges of the pandemic and traditional seasonality in year-end capital activity, we are encouraged by the sequential uptick in new awards. The $91 million in new orders further supports our strong backlog and improves our ability to plan the business for better financial performance over the balance of fiscal 2021. Although our core Oil, Gas and Petrochemical end markets remain challenged, we continue to experience more stable activity across the other sectors we serve, including Utility and Traction. While this moderate shift in mix may have an impact on the quality of our backlog looking forward, our ongoing strong execution of engineering only projects in our backlog should enable us to leverage our cost structure and workforce while the energy markets continue to recover."

Revenues for the first quarter of fiscal 2021 totaled $106.6 million compared to $114.7 million in the fourth fiscal quarter of 2020 and revenue of $134.2 million for the first quarter of fiscal 2020.

New orders placed in the first quarter totaled $91 million compared to $57 million of net new orders in the fourth quarter of 2020 and $137 million of new orders in the first quarter of fiscal 2020.

Backlog as of December 31, 2020 totaled $465 million, representing a sequential decline of 2% compared to $477 million as of September 30, 2020 and compared to $426 million as of December 31, 2019.

Net loss for the first fiscal quarter was $0.4 million, or $0.03 loss per diluted share, compared to fourth quarter of fiscal 2020 net income of $3.0 million, or $0.25 per diluted share, and compared to net income of $2.8 million, or $0.24 per diluted share, in the first quarter of fiscal 2020.  

Mr. Cope added, "Our overall financial strength, as well as Powell's reputation as a premier electrical equipment and solutions provider with a solid performance and safety record, position us well for the future. This provides the business with significant flexibility in this environment as we assess opportunities that may complement our business and help position the Company for future growth. We remain focused on providing unsurpassed value for our customers as we navigate through this dynamic environment."

OUTLOOK
Commenting on the company's outlook, Michael Metcalf, Powell's Chief Financial Officer said, "We continue to expect a challenging macro-environment across our industrial end markets through fiscal 2021.  That said, we anticipate that commercial activity for projects that are led by low priced, abundant natural gas will continue to exhibit more favorable economics than our other industrial end markets; while we expect that the Utility and Traction markets will remain solid throughout fiscal 2021.  Our expectation is that over half of our current backlog will convert to revenue throughout the fiscal year. As we navigate through this cycle, we remain focused on flawless project execution, as well as cost and cash discipline, in order to optimize margin levels and preserve the strength of our balance sheet."

CONFERENCE CALL 
Powell Industries has scheduled a conference call for Wednesday, February 3, 2021 at 11:00 a.m. Eastern time.   To participate in the conference call, dial 877-270-2148 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 10, 2021.  To access the replay, dial 877-344-7529 using a passcode of 10151716#.

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. 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 December 31,
	2020				2019
(In thousands, except per share data)
	(Unaudited)
Revenues	$	106,575			$	134,150
Cost of goods sold	88,304				112,324
Gross profit	18,271				21,826
Selling, general and administrative expenses	16,874				17,289
Research and development expenses	1,673				1,474
Amortization of intangible assets	44				44
Operating income (loss)	(320)				3,019
Interest expense	50				67
Interest income	(111)				(381)
Income (loss) before income taxes	(259)				3,333
Income tax provision	105				558
Net income (loss)	$	(364)			$	2,775
Earnings (loss) per share:
Basic	$	(0.03)			$	0.24
Diluted	$	(0.03)			$	0.24
Weighted average shares:
Basic	11,674				11,614
Diluted	11,674				11,665
SELECTED FINANCIAL DATA:
Depreciation and Amortization	$	2,630			$	2,597
Capital Expenditures	$	961			$	2,422
Dividends Paid	$	3,028			$	3,013

 

POWELL INDUSTRIES, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
	December 31, 2020				September 30, 2020
(In thousands)	(Unaudited)
Assets:
Cash, cash equivalents and short-term investments	$	149,710			$	178,921
Other current assets	160,581				156,737
Property, plant and equipment, net	114,866				114,372
Long-term assets	23,153				22,248
Total assets	$	448,310			$	472,278
Liabilities and equity:
Current liabilities	$	126,828			$	152,947
Long-term debt, net of current maturities	__				400
Deferred and other long-term liabilities	13,637				12,305
Stockholders' equity	307,845				306,626
Total liabilities and stockholders' equity	$	448,310			$	472,278
SELECTED FINANCIAL DATA:
Working capital	$	183,463			$	182,711

 

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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SOURCE Powell Industries

FAQ

What were Powell Industries' Q1 2021 revenue figures?

Powell Industries reported Q1 2021 revenues of $107 million.

What is the net loss reported by Powell Industries for Q1 2021?

The net loss for Q1 2021 was $364,000, or $0.03 per diluted share.

How much in new orders did Powell Industries receive in Q1 2021?

Powell Industries received $91 million in new orders during Q1 2021.

What was Powell Industries' backlog as of December 31, 2020?

As of December 31, 2020, Powell Industries had a backlog of $465 million.

What is the outlook for Powell Industries in fiscal 2021?

Powell Industries expects a challenging macro-environment but anticipates strong performance in Utility and Traction markets.