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Powell Industries Inc (POWL) SEC Filing 8-K Material Event for the period ending Tuesday, August 3, 2021

Powell Industries Inc

CIK: 80420 Ticker: POWL

Exhibit 99.1
powelllogoa13a.jpg PRESS RELEASE
FOR IMMEDIATE RELEASE
                        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


POWELL INDUSTRIES ANNOUNCES FISCAL 2021 THIRD QUARTER RESULTS

HOUSTON — August 3, 2021 — 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 third quarter ended June 30, 2021.

Fiscal Third Quarter Key Highlights:
Revenues totaled $116 million;
Backlog as of June 30, 2021 totaled $426 million;
Net Loss was $2.0 million, or a $0.17 loss per diluted share;
Cash and short-term investments as of June 30, 2021 totaled $129 million.

Brett A. Cope, Powell’s Chairman and Chief Executive Officer, stated, “Our consolidated revenues for the fiscal third quarter were largely in-line with both the prior quarter and comparable period in the prior year, while gross profit improved sequentially by 40 basis points. We are encouraged by the $103 million of new orders that we saw in the quarter, and while aggregate activity remains tempered, we are cautiously optimistic that we are beginning to see signs of stabilization in some of our key Industrial end markets. Commercial activity across our Traction and Utility customers remains solid, as revenue in the two segments grew 52% and 57%, respectively. Operationally, this quarter was very similar to the prior quarter while we work closely with our customers as they continue to evaluate schedules and project plans. We
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remain focused on our execution levels and strict cost controls as we navigate the current environment.”

Revenues for the third quarter of fiscal 2021 totaled $115.8 million compared to $118.7 million in the second fiscal quarter of 2021 and $118.1 million in the third fiscal quarter of 2020.

New orders in the third quarter totaled $103 million compared to $89 million in the second fiscal quarter of 2021 and $81 million in the third quarter of fiscal 2020. Backlog as of June 30, 2021 totaled $426 million which represents a sequential decline of 3% and compares to $532 million as of June 30, 2020.

Net loss for the third fiscal quarter was $2.0 million, or a loss of $0.17 per diluted share, compared to loss of $0.2 million, or a $0.02 loss per diluted share, in the second fiscal quarter of 2021. Net income in the third quarter of fiscal 2020 was $3.5 million, or $0.30 per diluted share.

Mr. Cope added, “I am very proud of the team and the critical support they continue to provide to our customers. As we navigate through the current environment, we will continue to actively pursue projects across our non-industrial sectors, such as Utility and Traction, which remain strong. The economics of natural gas also continue to support favorable opportunities in the LNG, gas pipeline and gas to chemical process industries. We are also actively participating in growth areas such as renewable energy and biofuels, and are encouraged by opportunities within carbon capture and sequestration and other less traditional areas of the business.”


OUTLOOK

Commenting on the Company's outlook, Michael Metcalf, Powell’s Chief Financial Officer said, “The $103 million of new orders during the third quarter marked a strong sequential improvement from the prior period. However, considering the lead time of our projects, the current revenue levels and overall operating activity prevent us from fully leveraging our overhead. This, in addition to the recent inflationary impact on commodities such as steel and copper, are creating headwinds to our margin profile. As a result, while we manage through this cycle, our main focus remains on project execution and customer fulfillment as well as diligent cost and cash management. We anticipate that we will continue to build working capital as we execute on our current project mix and are cautiously optimistic that the commercial activity will gradually improve. Our balance sheet and liquidity position remain a core strength of Powell
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and provide the flexibility to navigate through these industry cycles, while also providing an element of optionality.”

CONFERENCE CALL
Powell Industries has scheduled a conference call for Wednesday, August 4, 2021 at 11:00 a.m. Eastern time. To participate in the conference call, dial 833-953-2431 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 August 11, 2021. To access the replay, dial 877-344-7529 using a passcode of 10158438#.

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.

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POWELL INDUSTRIES, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
Three Months Ended
June 30,
Nine Months Ended
June 30,
2021202020212020
(In thousands, except per share data)
(Unaudited)
Revenues$115,813 $118,062 $341,105 $403,781 
Cost of goods sold98,646 96,718 288,513 330,926 
Gross profit17,16721,34452,59272,855
Selling, general and administrative expenses16,710 15,511 50,259 51,372 
Research and development expenses1,772 1,605 5,046 4,863 
Amortization of intangible assets44 44 132 132 
Restructuring and other, net— 1,400 — 1,400 
Operating income (loss)(1,359)2,784 (2,845)15,088 
Interest expense51 52 152 179 
Interest income(72)(190)(230)(901)
Income (loss) before income taxes(1,338)2,922 (2,767)15,810 
Income tax provision (benefit)703 (559)(138)2,133 
Net income (loss)$(2,041)$3,481 $(2,629)$13,677 
Earnings (loss) per share:
Basic$(0.17)$0.30 $(0.22)$1.18 
Diluted$(0.17)$0.30 $(0.22)$1.17 
Weighted average shares:
Basic11,720 11,631 11,700 11,622 
Diluted11,720 11,698 11,700 11,686 
SELECTED FINANCIAL DATA:
Depreciation and Amortization
$2,610 $2,637 $7,899 $7,878 
Capital Expenditures
$857 $809 $2,480 $4,311 
Dividends Paid
$3,039 $3,019 $9,102 $9,047 


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POWELL INDUSTRIES, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

June 30, 2021September 30, 2020
(In thousands)(Unaudited)
Assets:
   Cash, cash equivalents and short-term investments $128,840 $178,921 
   Other current assets 156,694 156,737 
   Property, plant and equipment, net 112,485 114,372 
   Long-term assets
23,942 22,248 
      Total assets
$421,961 $472,278 
Liabilities and equity:
   Current liabilities $105,310 $152,947 
   Long-term debt, net of current maturities
— 400 
   Deferred and other long-term liabilities
13,71012,305
   Stockholders’ equity
302,941 306,626 
      Total liabilities and stockholders’ equity
$421,961 $472,278 
SELECTED FINANCIAL DATA:
   Working capital
$180,224 $182,711 



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Ticker: POWL
CIK: 80420
Form Type: 8-K Corporate News
Accession Number: 0000080420-21-000036
Submitted to the SEC: Tue Aug 03 2021 4:22:41 PM EST
Accepted by the SEC: Tue Aug 03 2021
Period: Tuesday, August 3, 2021
Industry: Switchgear And Switchboard Apparatus
Events:
  1. Earnings Release
  2. Financial Exhibit
  3. Other Events

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