POWELL INDUSTRIES ANNOUNCES FISCAL 2023 THIRD QUARTER RESULTS
- Revenues increased by 42% to $192 million
- Backlog nearly tripled to a record $1.3 billion
- New orders totaled $505 million, an increase of $303 million
- Gross margin improved to 22.2%
- Net income more than doubled to $19 million
- Outlook remains positive with continued strength in core end markets and a strong balance sheet and liquidity position
- None.
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
, an increase of$505 million ;$303 million - Gross margin improved 810 basis points to
22.2% ; - Net Income more than doubled to
, or$19 million per diluted share; and$1.52 - Cash and short-term investments as of June 30, 2023 totaled
.$210 million
Brett A. Cope,
Revenues in the third fiscal quarter totaled
Gross profit in the quarter totaled
New orders placed in the third quarter totaled
Backlog as of June 30, 2023 was a record
Net income in the third fiscal quarter more than doubled to
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
OUTLOOK
Commenting on the Company's outlook, Michael Metcalf,
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
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 | |
Alpha IR Group | |
POWL@alpha-ir.com | |
312-445-2870 |
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SOURCE Powell Industries