Powell(US:POWL)2023-02-01 19:33Financial Performance - Revenues increased by 19%, or $20.3 million, to $126.9 million in Q1 Fiscal 2023, driven by a 43% increase in backlog to $592.2 million[93] - Domestic revenues rose by 22%, or $18.0 million, to $100.1 million, with a significant project contributing approximately 13% of consolidated revenues[93] - Gross profit increased by 45%, or $6.0 million, to $19.5 million, with gross profit margin rising to 15% from 13% year-over-year[95] - Net income for Q1 Fiscal 2023 was $1.2 million, or $0.10 per diluted share, compared to a net loss of $2.8 million, or $0.24 per diluted share, in Q1 Fiscal 2022[98] - Selling, general and administrative expenses increased by 6%, or $1.0 million, to $16.9 million, but as a percentage of revenues decreased to 13% from 15%[96] Backlog and Bookings - Backlog at December 31, 2022, was $679.8 million, a 15% increase from $592.2 million at September 30, 2022, and a 63% increase from $416.0 million at December 31, 2021[99] - Bookings in Q1 Fiscal 2023 increased by 97% to $211.8 million, compared to $107.7 million in Q1 Fiscal 2022, reflecting improved strength in core markets[99] Cash and Liquidity - Cash, cash equivalents, and short-term investments decreased to $110.7 million at December 31, 2022, from $116.5 million at September 30, 2022[103] - The company has a $75.0 million revolving credit facility, with no amounts borrowed as of December 31, 2022, and $41.2 million available for issuance[104] - Operating activities used net cash of $0.5 million during Q1 Fiscal 2023, a significant improvement from $27.8 million used in the same period in Fiscal 2022[109] Market and Commodity Risks - The company is exposed to general market risk, particularly from customers in the oil and gas and petrochemical sectors, which may impact accounts receivable and estimated earnings[115] - The company faces commodity price risk due to fluctuating prices of raw materials, with efforts to pass these costs to customers on a contract basis[116] - A derivative contract has been entered into to hedge a portion of commodity price risk, although it is immaterial for Q1 Fiscal 2023[117] Foreign Exchange and Interest Rate Risks - Foreign operations expose the company to foreign currency exchange rate risk, with a realized foreign exchange loss of $0.2 million for the three months ended December 31, 2022[118] - The accumulated other comprehensive loss was $26.6 million as of December 31, 2022, a decrease of $2.4 million from September 30, 2022, due to currency fluctuations[119] - The company does not typically hedge against potential foreign currency translation adjustments[120] - Interest rate risk exists if the company borrows under its U.S. Revolver, with a hypothetical 100 basis point increase in variable interest rates potentially having a material impact[121]