Powell Industries has scheduled a conference call for Wednesday, December 9, 2020 at 11:00 a.m. To participate in the conference call, dial 877-270-2148 at least 10 minutes before. 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.
ITEM 1. BUSINESS
Powell Industries, Inc. ('Powell' or the 'Company') was incorporated under the laws of the State of Nevada in December 1968. The Company is the successor to a corporation founded by William E. Powell in 1947, which merged into the Company in 1977.
The Company sells, designs, develops, manufactures, packages and services systems and equipment for the distribution, control and management of electrical energy and other dynamic processes. The Company's offices are located in Houston, Texas with plants located in Houston, Greenville and Jacinto Port, Texas; Elyria and North Canton, Ohio; Franklin Park, Illinois; Pleasanton and Watsonville, California; and Norcross, Georgia. Waytech development driver. Most of the products manufactured by the Company are made pursuant to specifications required for a particular order.
PRODUCTS AND SYSTEMS
Powell designs, develops, manufactures, sells and services electrical power distribution and control equipment and systems through its subsidiaries: Powell Electrical Manufacturing Company; Powell-ESCO Company; Unibus, Inc.; Delta-Unibus Corp. and Transdyn Controls, Inc. As applicable to the context, the 'Company' is also sometimes used herein to refer to Powell and its subsidiaries.
The principal products are switchgear and related equipment, bus duct and process control systems. These products and systems are utilized primarily by refineries, petrochemical plants, utilities, paper mills, offshore platforms, commuter railways, vehicular transportation and numerous other industrial, commercial and governmental facilities. A brief description of each of the major products follows:
Switchgear and other related Equipment:
Switchgear is defined as free-standing metal enclosures containing a selection of electrical components that protect, monitor and control the flow of electricity from its source to motors, transformers and other electrically powered equipment as well as customized portable buildings to house switchgear and related equipment (PCR(R)). Major electrical components include circuit breakers, protective relays, meters, control switches, fuses, motor control centers and both current and potential transformers. During the fiscal years ended October 31, 1998, 1997 and 1996, sales and service of switchgear and other related equipment accounted for 77%, 73% and 76%, respectively, of consolidated revenues of the Company.
Bus duct consists of insulated power conductors housed in a metal enclosure. Individual pieces of bus duct are arranged in whatever physical configuration may be required to distribute electrical power to or from a generator, transformer, switching device or other electrical apparatus. The Company can provide the nonsegregated phase, segregated phase and isolated phase styles of bus duct with numerous amperage and voltage ratings. Sales of bus duct accounted for 12%, 17% and 15% of consolidated revenues for fiscal years 1998, 1997 and 1996, respectively.
Process Control Systems:
The process control systems supplied by the Company consist principally of instrumentation, computer control, communications, and data management systems. Demand for process control systems has been for modernization and expansion projects as well as new facilities that mainly serve the Company=s transportation, environmental and utilities industries. During the fiscal years ended October 31, 1998, 1997 and 1996, sales of process control systems accounted for 11%, 10% and 9%, respectively, of consolidated revenues of the Company.
All of the Company's products are manufactured using components and materials that are readily available from numerous domestic suppliers. The Company has three principal suppliers of components and anticipates no difficulty in obtaining its components in sufficient quantities to support its manufacturing and assembly operations.
METHODS OF DISTRIBUTION AND CUSTOMERS
The Company's products are sold through manufacturers' representatives and its internal sales force. The Company is not dependent on any single customer for sales and the loss of any specific customer would not have a material adverse effect upon the Company. No single customer or export country accounted for more than 10% of consolidated revenues in the fiscal years ended 1998, 1997 or 1996. Export revenues were $85,448,000, $88,107,000 and $63,884,000 in fiscal years 1998, 1997 and 1996, respectively. See Note I of the Notes to Consolidated Financial Statements showing the geographic areas in which these revenues were recorded.
The Company is engaged in a highly competitive business which is characterized by a small number of much larger companies that dominate the bulk of the market and a large number of smaller companies that compete for a limited share of such market. In the opinion of management, the competitive position of the Company is dependent on the ability of the Company to provide quality products to a customer's specifications, on a timely basis, at a competitive price, utilizing state-of-the-art materials, design and production methods. Some of the Company's principal competitors are larger and have greater capital and management resources.
At October 31, 1998, the Company employed 1,253 employees on a full-time basis. Management considers its employee relations to be good.
Powell Industries Port Devices Driver Ed
The Company's backlog of orders was $143,394,000 and $137,295,000 at October 31, 1998 and 1997, respectively, and the percentage of its 1998 year end backlog that it does not expect to fill in fiscal year 1999 is 17%. Orders included in the backlog are represented by purchase orders which the Company believes to be firm. The terms on which the Company accepts orders include a penalty for cancellation. Historically, no material amount of orders included in backlog has been canceled. No material portion of the Company's business is seasonal in nature.
Powell Industries Port Devices Driver Updater
RESEARCH AND DEVELOPMENT
Powell Industries Port Devices Drivers
During the fiscal years ended October 31, 1998, 1997 and 1996, the Company spent approximately $2,693,000, $2,649,000 and $2,283,000 respectively, on research and development programs.