Powell Industries, Inc. (NASDAQ:POWL) Q4 2017 Earnings Conference Call Transcript

Dec 06, 2017 • 11:00 am ET


Powell Industries, Inc. (NASDAQ:POWL) Q4 2017 Earnings Conference Call Transcript


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Greetings, and welcome to the Powell Industries Fourth Quarter Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Natalie Hairston, Dennard-Lascar, IR. Thank you Ms. Hairston, you may begin.

Natalie Hairston

Thanks, operator, and good morning, everyone. We appreciate you joining us today for Powell Industries' conference call to review its fiscal year 2017 fourth quarter results. We would also like to welcome our Internet participants listening to the call that is being webcast.

Before I turn the call over to management, I have the usual details to cover. If you did not receive an e-mail of the news release issued yesterday afternoon and would like to get one, please call our offices at Dennard-Lascar IR, and we will get one to you. That number is (713) 529-6600. Also, if you want to be on the e-mail distribution list for Powell releases, please relay that information to us. There will be a replay of today's call, and it will be available via webcast by going to the company's website at powellind.com, or a replay will be available by telephone until December 13. The information on how to access the replay was provided in yesterday's earnings release.

Please note that information recorded on this call speaks only as of today, December 6, 2017. And therefore, you are advised that time-sensitive information may no longer be accurate as of the time of any replay-listening or transcript-reading.

(Forward-Looking Cautionary Statements)With me on the call are Brett Cope, Powell's CEO; and Don Madison, CFO.

Now I'll turn the call over to Brett. Brett?

Brett Cope

Thank you, Natalie, and good morning, everyone. Thank you for joining us today to review our 2017 fourth quarter and year-end results. I will make a few comments, and then I will turn the call over to Don for more financial commentary before we take your questions.

2017 presented Powell with a mix of both operational accomplishments and performance challenges across many of our key customer markets. The spirit of Powell is demonstrated immediately after the landfall of Hurricane Harvey. Several of our US and Canadian facilities teamed up to assist key customers, whose critical Gulf Coast operations have been paralyzed by flood-damaged equipment. Powell's capacity-sharing and supply chain capabilities were highlighted during this crisis, which showcased the strength of our front-end engineering, manufacturing and electrical service teams. Notably, we were able to turn around certain projects in days, which otherwise would have taken weeks or months. This collaboration was across the board. Our employees, customers and suppliers pooled resources to get these devastated facilities back up and running quickly without jeopardizing safety. As a result of Hurricane Harvey, we lost eight to 10 days of production at our Houston factories. This negatively impacted our results for the quarter. However, we are very proud of the response by our employees who mobilized the help, those whose homes were damaged, both through donations and hands-on rebuilding efforts.

We are also proud of