POWELL INDUSTRIES ANNOUNCES FISCAL 2022 SECOND QUARTER RESULTS

Rhea-AI Summary

Powell Industries reported fiscal Q2 2022 results with revenues of $128 million, showing a year-over-year growth compared to $118.7 million in Q2 2021. The net loss for the quarter was $1.2 million, or $0.10 per diluted share, an improvement from the previous quarter's loss of $2.8 million. New orders reached $151 million, reflecting a 6% growth in backlog totaling $440 million. The company is optimistic about recovery in core markets and expects profitability to improve further in the second half of fiscal 2022.

Positive

• Revenues increased to $128 million from $118.7 million year-over-year.
• Improved gross margin of 14.9%, up 230 basis points sequentially.
• New orders of $151 million indicate a strong demand, marking four consecutive quarters of growth.
• Backlog increased to $440 million, indicating solid future revenue potential.
• Expectations of improved profitability as operational efficiencies and cost controls take effect.

Negative

• Net loss of $1.2 million, although improved from prior quarter.
• Current loss is higher compared to a net loss of $0.2 million in Q2 2021.

HOUSTON, May 3, 2022 /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 2022 second quarter ended March 31, 2022.

Fiscal Second Quarter Key Highlights:

• Revenues totaled $128 million;
• Net Loss was $1.2 million, or a loss of $0.10 per diluted share;
• New orders totaled $151 million;
• Backlog as of March 31, 2022 totaled $440 million;
• Cash and short-term investments as of March 31, 2022 totaled $114 million.

Brett A. Cope, Powell's Chairman and Chief Executive Officer, stated, "Powell delivered improved second quarter results that reflected ongoing initiatives supporting diligent and deliberate strategic efforts to diversify our business mix and broaden our Services offerings. Revenue totaled $128 million with associated gross margin of 14.9%, an improvement of 230 basis points sequentially, as we continue to navigate this challenging cost environment and the timing of new projects. Most notably, new orders in the quarter totaled $151 million which marks four consecutive quarters of increasing new orders despite the lack of a full recovery in our core industrial end markets. The strength across our utility and light commercial sectors clearly demonstrates the focused efforts to grow our presence in the non-industrial markets where Powell has not historically maintained a sustainable base of commercial activity. Overall, we are encouraged by both the direction of the recovery within our end markets as well as the positive developments we are seeing from our strategic initiatives."

Revenues for the second quarter totaled $127.9 million compared to $106.6 million in the first quarter and compared to $118.7 million in the second quarter in the prior year.

New orders placed in the second quarter totaled $151 million which compares to $122 million of gross new orders in the first fiscal quarter and compares to $89 million of new orders in the second quarter of the prior fiscal year.

Backlog as of March 31, 2022 totaled $440 million which represents sequential growth of 6% compared to $416 million as of December 31, 2021 and compares to $437 million as of March 31, 2021.

Net loss for the fiscal second quarter was $1.2 million, or $0.10 per diluted share, compared to a net loss of $2.8 million, or a loss of $0.24 per diluted share, in the fiscal first quarter. In anticipation of higher than previously expected pre-tax income on a total year fiscal 2022 basis, a tax provision was recorded in the second fiscal quarter which resulted in the current period net loss. Net loss was $0.2 million, or $0.02 per diluted share, in the second fiscal quarter in the prior year. 

Cope added, "Over the near-term, we continue to see stabilization of our Oil & Gas and Petrochemical end markets and the fundamentals within LNG, gas pipeline and gas-to-chemical projects remain favorable. In addition, we are encouraged by the efficiency of our operations and by the execution throughout the Company."

OUTLOOK

Commenting on the Company's outlook, Michael Metcalf, Powell's Chief Financial Officer said, "We are optimistic that our core industrial end markets will continue to steadily recover, while we are also encouraged by the strength across the utility and light commercial end markets, recognizing a consolidated 1.2x book-to-bill ratio in the fiscal second quarter. As we navigate through the current inflationary environment that is dominated by supply chain constraints, we continue to pursue proactive actions in order to help offset these headwinds, as demonstrated by the sequential improvement in profitability. Looking forward, we anticipate that profitability will continue to improve as we progress through the second half of fiscal 2022 as pricing, factory efficiencies and cost controls gain momentum, while continuing to execute on our $440 million order book."

CONFERENCE CALL

Powell Industries has scheduled a conference call for Wednesday, May 4, 2022 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) at least 10 minutes before the call begins and ask for the Powell Industries conference call. A telephonic replay of the conference call will be available through May 11, 2022 and may be accessed by calling 1-877-344-7529 (domestic) or 1-412-317-0088 (international) and using passcode 8444747#. 

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 March 31,								Six Months Ended March 31,
	2022				2021				2022				2021
(In thousands, except per share data)
	(Unaudited)
Revenues	$	127,854			$	118,716			$	234,423			$	225,291
Cost of goods sold	108,771				101,563				201,904				189,867
Gross profit	19,083				17,153				32,519				35,424
Selling, general and administrative expenses	17,067				16,675				32,969				33,549
Research and development expenses	1,713				1,601				3,537				3,274
Amortization of intangible assets	--				44				--				88
Operating income (loss)	303				(1,167)				(3,987)				(1,487)
Other income	(279)				--				(279)				--
Interest expense (income)	(13)				4				(16)				(57)
Income (loss) before income taxes	595				(1,171)				(3,692)				(1,430)
Income tax provision (benefit)	1,812				(946)				371				(841)
Net loss	$	(1,217)			$	(225)			$	(4,063)			$	(589)
Loss per share:
Basic	$	(0.10)			$	(0.02)			$	(0.34)			$	(0.05)
Diluted	$	(0.10)			$	(0.02)			$	(0.34)			$	(0.05)
Weighted average shares:
Basic	11,801				11,707				11,783				11,690
Diluted	11,801				11,707				11,783				11,690
SELECTED FINANCIAL DATA:
Depreciation and Amortization	$	2,417			$	2,659			$	4,831			$	5,289
Capital Expenditures	$	680			$	662			$	1,116			$	1,623
Dividends Paid	$	3,058			$	3,035			$	6,106			$	6,063

 

 

POWELL INDUSTRIES, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
	March 31, 2022				September 30, 2021
(In thousands)	(Unaudited)
Assets:
Cash, cash equivalents and short-term investments	$	113,574			$	133,981
Other current assets	198,105				168,480
Property, plant and equipment, net	105,968				109,457
Long-term assets	22,058				24,274
Total assets	$	439,705			$	436,192
Liabilities and equity:
Current liabilities	$	132,883			$	121,156
Deferred and other long-term liabilities	13,952				13,813
Stockholders' equity	292,870				301,223
Total liabilities and stockholders' equity	$	439,705			$	436,192
SELECTED FINANCIAL DATA:
Working capital	$	178,796			$	181,305

 

 

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' revenues in Q2 2022?

Powell Industries reported revenues of $128 million in Q2 2022.

What is the net loss reported by Powell Industries for Q2 2022?

The net loss for Q2 2022 was $1.2 million, or $0.10 per diluted share.

How much new orders did Powell Industries receive in Q2 2022?

Powell Industries received new orders totaling $151 million in Q2 2022.

What is the current backlog for Powell Industries?

As of March 31, 2022, Powell Industries' backlog amounted to $440 million.

What is Powell Industries' outlook for the second half of 2022?

Powell Industries anticipates improved profitability in the second half of 2022 due to better pricing and operational efficiencies.