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Powell Industries, Inc. News

Powell Industries Announces Fiscal 2008 Second Quarter Results

HOUSTON, May 7 PRNewswire-FirstCall — Powell Industries, Inc. (Nasdaq: POWL), a leading manufacturer of equipment and systems for the management and control of electrical energy and other critical processes, today announced results for the fiscal 2008 second quarter ended March 31, 2008.

Revenues for the second quarter of fiscal 2008 were $160.3 million compared to revenues of $141.9 million for the second quarter of fiscal 2007. Net income for the second quarter was $6.0 million, or $0.53 per diluted share, compared to net income of $2.3 million, or $0.20 per diluted share, in the second quarter of fiscal 2007.

Thomas W. Powell, Chairman and Chief Executive Officer, stated, "We are pleased to report much improved results for the second quarter, where we continued to see strength in all of our major markets. Our Electrical Power Products business is operating at record levels, and we continue to have success in improving our productivity and throughput while remaining responsive to our customers' needs. Our products and services are very well positioned to meet the requirements of our key market sectors, and we expect to continue to participate in the growth in these markets for the foreseeable future. In addition, we are pleased to report that the Power/Vac(R) transition is complete, with that entire product line now being designed and built in Houston."

The Electrical Power Products segment recorded revenues of $154.1 million in the fiscal 2008 second quarter compared to $136.0 million in the second quarter of fiscal 2007. Income before income taxes for Electrical Power Products in the second quarter totaled $8.4 million versus income before income taxes of $3.1 million in last year's second quarter.

The Company's backlog as of March 31, 2008 was a record $537 million compared to $502 million as of December 31, 2007 and compared to $408 million at the end of last year's second quarter. New orders placed during the second quarter of fiscal 2008 totaled $196 million compared to $185 million in the first quarter of fiscal 2008 and compared to $168 million in the second quarter of fiscal 2007.

YEAR-TO-DATE RESULTS

Revenues for the first six months of fiscal 2008 were $307.5 million compared to revenues of $264.7 million for the first half of fiscal 2007. Net income for the first six months was $9.6 million, or $0.84 per diluted share, compared to net income of $4.3 million, or $0.39 per diluted share, in the comparable period of fiscal 2007.

The Electrical Power Products segment recorded revenues of $295.2 million in the first six months of fiscal 2008 compared to $253.4 million in the first half of fiscal 2007. Income before income taxes for Electrical Power Products in the first half of fiscal 2008 totaled $14.0 million versus income before income taxes of $6.3 million in the comparable period of fiscal 2007.

OUTLOOK

The following statements are based on the current expectations of the Company. These statements are forward-looking and actual results may differ materially as further elaborated in the last paragraph below.

Based on its backlog and current business conditions, Powell Industries is raising its guidance and now expects full year fiscal 2008 revenues to range between $650 million and $660 million and full year fiscal 2008 earnings to range between $1.85 and $2.10 per diluted share.

CONFERENCE CALL

Powell Industries has scheduled a conference call for Wednesday, May 7, 2008 at 11:00 a.m. eastern time. To participate in the conference call, dial 303-275-2125 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 May 14, 2008. To access the replay, dial 303-590-3000 using a passcode of 11113198#.

Investors, analysts and the general public will also have the opportunity to listen to the conference call over the Internet by visiting http://www.powellind.com. To listen to the live call on the web, please visit the website at least fifteen 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 http://www.powellind.com.

Powell Industries, Inc., headquartered in Houston, designs, manufactures and packages systems and equipment for the control, distribution and management of electrical energy and other dynamic processes. Powell provides products and services to large industrial customers such as utilities, oil and gas producers, refineries, petrochemical plants, pulp and paper producers, mining operations, commuter railways and other vehicular transportation facilities. For more information, please visit http://www.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.

Contacts: Don R. Madison, CFO Powell Industries, Inc. 713-947-4422 Ken Dennard / ksdennard@drg-e.com Karen Roan / kcroan@drg-e.com DRG&E / 713-529-6600 - Tables to follow - POWELL INDUSTRIES, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS Three Months Ended Six Months Ended March 31, March 31, March 31, March 31, 2008 2007 2008 2007 (In thousands, except per share data) (Unaudited) (Unaudited) Revenues $160,333 $141,912 $307,454 $264,688 Cost of goods sold 129,641 119,147 250,067 221,833 Gross profit 30,692 22,765 57,387 42,855 Selling, general and administrative expenses 20,961 18,452 41,072 34,726 Income before interest, income taxes and minority interest 9,731 4,313 16,315 8,129 Interest expense 771 919 1,636 1,607 Interest income (86) (120) (201) (300) Income before income taxes and minority interest 9,046 3,514 14,880 6,822 Income tax provision 3,236 1,210 5,365 2,430 Minority interest in net income (loss) (219) 50 (100) 109 Net income $6,029 $2,254 $9,615 $4,283 Net earnings per common share: Basic $0.54 $0.20 $0.86 $0.39 Diluted $0.53 $0.20 $0.84 $0.39 Weighted average shares: Basic 11,232 11,033 11,194 10,987 Diluted 11,416 11,123 11,398 11,090 SELECTED FINANCIAL DATA: Capital Expenditures $784 $4,248 $1,530 $9,678 Depreciation and amortization $3,055 $2,692 $5,952 $5,190 POWELL INDUSTRIES, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS March 31, September 30, 2008 2007 (In thousands) (Unaudited) Assets: Current assets $274,918 $236,886 Property, plant and equipment (net) 64,607 67,401 Other assets 33,785 36,728 Total assets $373,310 $341,015 Liabilities & stockholders' equity: Current liabilities $148,690 $135,612 Long-term debt and capital lease obligations, net of current maturities 32,299 27,372 Deferred and other long-term liabilities 4,232 4,184 Stockholders' equity and minority interest 188,089 173,847 Total liabilities and stockholders' equity $373,310 $341,015 POWELL INDUSTRIES, INC. & SUBSIDIARIES BUSINESS SEGMENTS Three Months Ended Six Months Ended March 31, March 31, March 31, March 31, 2008 2007 2008 2007 (In thousands) (Unaudited) (Unaudited) Revenues: Electrical Power Products $154,094 $136,034 $295,183 $253,377 Process Control Systems 6,239 5,878 12,271 11,311 Total revenues $160,333 $141,912 $307,454 $264,688 Income before income taxes and minority interest: Electrical Power Products $8,425 $3,113 $14,039 $6,338 Process Control Systems 621 401 841 484 Total income before income taxes and minority interest $9,046 $3,514 $14,880 $6,822 March 31, September 30, 2008 2007 (In thousands) (Unaudited) Identifiable tangible assets: Electrical Power Products $315,235 $279,901 Process Control Systems 9,347 7,365 Corporate 20,400 23,460 Total identifiable tangible assets $344,982 $310,726 Backlog: Electrical Power Products $511,221 $434,902 Process Control Systems 25,308 29,596 Total backlog $536,529 $464,498

SOURCE Powell Industries, Inc.

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