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Powell Industries Inc. Reports Operating Results (10-Q)

August 04, 2010 | About:
10qk

10qk

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Powell Industries Inc. (POWL) filed Quarterly Report for the period ended 2010-06-30.

Powell Industries Inc. has a market cap of $382.2 million; its shares were traded at around $33.01 with a P/E ratio of 9.4 and P/S ratio of 0.6. Powell Industries Inc. had an annual average earning growth of 8.9% over the past 10 years.POWL is in the portfolios of Chuck Royce of Royce& Associates, Paul Tudor Jones of The Tudor Group, Arnold Van Den Berg of Century Management, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Consolidated revenues decreased $27.0 million to $138.9 million in the third quarter of fiscal 2010 compared to $165.9 million in the third quarter of fiscal 2009. For the third quarter of fiscal 2010, domestic revenues decreased by 24.6% to $93.6 million compared to the third quarter of 2009 as a result of the decrease in demand for our products and services as discussed above. Total international revenues increased to $45.3 million in the third quarter of 2010 compared to $41.8 million in the third quarter of 2009. The acquisition of Powell Canada contributed approximately $18.8 million of our international revenues during the third quarter of fiscal 2010. Gross profit for the third quarter of fiscal 2010, as compared to the third quarter of fiscal 2009, decreased by approximately $2.9 million, to $38.2 million, as a result of the decline in volume. However, the successful negotiation of change orders and the favorable

For the nine months ended June 30, 2010, consolidated revenues decreased $83.6 million to $416.9 million compared to $500.5 million for the nine months ended June 30, 2009. Revenues decreased as a result of the decrease in demand for our products and services as discussed above. For the first nine months of fiscal 2010, domestic revenues decreased by 21.8% to $302.3 million compared to the first nine months of fiscal 2009. Total international revenues remained comparable at $114.6 million in the first nine months of 2010 compared to $114.0 million in the first nine months of fiscal 2009. The acquisition of Powell Canada contributed approximately $36.4 million of our international revenues during the first nine months of fiscal 2010. Gross profit for the first nine months of fiscal 2010, as compared to the first nine months of fiscal 2009, increased by approximately $3.1 million, to $112.6 million, as a result of favorable margins on project completion due to operational efficiencies, the successful negotiation of change orders for which costs were previously recognized and cancellation fees for orders that were cancelled from our backlog. These factors also contributed to the increase in gross profit as a percentage of revenues to 27.0% for the first nine months of fiscal 2010, compared to 21.9% for the first nine months of fiscal 2009.

Our Electrical Power Products business segment recorded revenues of $131.2 million in the third quarter of fiscal 2010, compared to $156.1 million for the third quarter of fiscal 2009. In the third quarter of 2010, revenues from public and private utilities were approximately $32.7 million, compared to $39.2 million in the third quarter of fiscal 2009. Revenues from industrial and commercial customers totaled $88.9 million in the third quarter of 2010, a decrease of $17.1 million compared to the third quarter of fiscal 2009. Municipal and transit projects generated revenues of $9.6 million in the third quarter of fiscal 2010 compared to $10.9 million in the third quarter of fiscal 2009. The acquisition of Powell Canada contributed approximately $18.8 million of our Electrical Power Products business segment revenues during the third quarter of fiscal 2010.

For the nine months ended June 30, 2010, our Electrical Power Products segment recorded revenues of $396.8 million, compared to $478.3 million for the nine months ended June 30, 2009. In the first nine months of fiscal 2009, revenues from public and private utilities were approximately $114.8 million, compared to $107.5 million in the first nine months of fiscal 2009. Revenues from commercial and industrial customers totaled $253.9 million in the first nine months of fiscal 2010, a decrease of $89.4 million compared to the first nine months of fiscal 2009. Municipal and transit projects generated revenues of $28.1 million in the first nine months of fiscal 2010, compared to $27.5 million in the first nine months of fiscal 2009. The acquisition of Powell Canada contributed approximately $36.4 million of our Electrical Power Products business segment revenues during the first nine months of fiscal 2010.

In the third quarter of fiscal 2010, we generated net income of $10.3 million, or $0.88 per diluted share, compared to $13.1 million, or $1.14 per diluted share, in the third quarter of fiscal 2009. For the nine months ended June 30, 2010, we recorded net income of $29.8 million, or $2.56 per diluted share, compared to $29.8 million, or $2.59 per diluted share, for the nine months ended June 30, 2009. We generated improved gross profits for the Company as a whole as a result of favorable margins on project completion due to operational efficiencies and cancellation fees for orders that were cancelled from our backlog for the first nine months of fiscal 2010, along with the successful negotiation of change orders and the favorable negotiation of a customer claim in the third quarter of fiscal 2010 for which costs were previously recognized.

At June 30, 2010, we had cash and cash equivalents of approximately $117.1 million, compared to approximately $97.4 million at September 30, 2009. We have a $58.5 million revolving credit facility in the U.S. and an additional $6.0 million revolving credit facility in the United Kingdom, both of which expire in December 2012. As of June 30, 2010, there were no amounts borrowed under these lines of credit. We also have a $19.1 million revolving credit facility and a $2.4 million single advance term loan in Canada. At June 30, 2010, $10.5 million was outstanding under the Canadian revolving credit facility, subject to certain limitations as defined in the credit agreement, and $2.1 million was outstanding under the Canadian term loan. Total long-term debt and capital lease obligations, including current maturities, totaled $19.9 million at June 30, 2010, compared to $9.5 million at September 30, 2009. Letters of credit outstanding were $14.1 million at June 30, 2010, compared to $17.6 million at September 30, 2009, which reduce our availability under our credit facilities. Amounts available under the U.S. revolving credit facility and the revolving credit facility in the United Kingdom were approximately $44.4 million and $6.0 million, respectively, at June 30, 2010. Amounts available under the Canadian revolving credit facility were approximately $4.9 million at June 30, 2010. For further information regarding our debt, see Notes H and I of Notes to Condensed Consolidated Financial Statements.

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