Powell Industries, Inc. (NASDAQ:POWL) Q3 2020 Earnings Conference Call - Final Transcript

Aug 05, 2020 • 11:00 am ET

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Powell Industries, Inc. (NASDAQ:POWL) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Powell Industries Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]

I will now turn the conference over to your host, Zach Vaughan with Dennard Lascar Investor Relations. Thank you. You may begin.

Executive
Zach Vaughan

Thank you, operator and good morning everyone. We appreciate you joining us for Powell Industries conference call today to review fiscal 2020 third quarter results. With me on the call are Brett Cope, Powell's Chairman and CEO and Mike Metcalf, Powell's CFO. There will be a replay of today's call and it will be available via webcast by going to the Company's website powellind.com where a telephonic replay will be available until August 12. The information on how to access the replay was provided in yesterday's earnings release.

Please note that information reported on this call speaks only as of today, August 5th, 2020 and therefore you're advised that any time-sensitive information may no longer be accurate at the time of replay listening or transcript reading.

This conference call includes certain statements, including statements related to the Company's expectations of its future operating results that may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties and that actual results may differ materially from those projected in these forward-looking statements. These risks and uncertainties include, but are not limited to, competition and competitive pressures, sensitivity to general economic and industry conditions, international, political and economic risks, availability and price of raw materials and execution of business strategies. For more information, please refer to the Company's filings with the Securities and Exchange Commission.

Now I will turn the call over to Powell's CEO, Brett Cope. Brett?

Executive
Brett A. Cope

Thanks, Zach and good morning everyone. Thank you for joining us today to review Powell's fiscal 2020 third quarter results. I will make a few comments and then I will turn the call over to Mike for more financial commentary before we take your questions. As a result of the ongoing challenges created by the pandemic, the enhanced safety procedures and protocols that have been implemented across all of our operations continue to be in place across the business. Our top priority has been and remains the safety of our employees, customers and suppliers. I am proud of our people and our partners who have stepped up to this global challenge. We continue to support each other and our customers as an essential business and all of our facilities remain open and 100% operational.

Despite the COVID related operational challenges, we experienced solid margin performance and reasonable cost efficiencies during the quarter. Third quarter revenues were $118 million, down 13% when compared to $136 million from the third quarter fiscal 2019. Revenue declined slightly in the quarter, largely due to a shift in our backlog profile.