Powell(US:POWL)2024-01-31 16:42Revenue Growth - Revenues increased by 53%, or $67.2 million, to $194.0 million in Q1 Fiscal 2024, driven by a rise in project backlog from large contracts awarded in Fiscal 2023[94] - Domestic revenues rose by 60%, or $59.7 million, to $159.9 million, while international revenues increased by 28%, or $7.4 million, to $34.1 million in Q1 Fiscal 2024[94] - Approximately $713 million of the backlog is expected to be recognized as revenue within the next twelve months, indicating strong future revenue potential[102] Profitability - Gross profit surged by 148%, or $28.7 million, to $48.2 million, with gross profit as a percentage of revenues increasing to 25% from 15% year-over-year[97] - Net income for Q1 Fiscal 2024 was $24.1 million, or $1.98 per diluted share, compared to $1.2 million, or $0.10 per diluted share, in Q1 Fiscal 2023[100] Expenses and Cash Flow - Selling, general and administrative expenses increased by 21%, or $3.5 million, to $20.3 million, but as a percentage of revenues decreased to 10% from 13% year-over-year[98] - Operating activities generated net cash of $83.9 million in Q1 Fiscal 2024, compared to a net cash usage of $0.5 million in the same period of Fiscal 2023[109] - Cash, cash equivalents, and short-term investments rose to $355.3 million at December 31, 2023, up from $279.0 million at September 30, 2023[105] Order Backlog - The order backlog remained at $1.3 billion as of December 31, 2023, reflecting a 91% increase from $679.8 million at December 31, 2022[101] Market and Risk Factors - The company continues to focus on diversifying its project portfolio beyond core oil, gas, and petrochemical sectors, with positive trends in utility and commercial markets[92] - The company is subject to market risk from fluctuating prices of raw materials, which may impact future earnings and cash flows[116] - A hypothetical 100 basis point increase in variable interest rates could have a material impact on financial statements if borrowings were made under the U.S. Revolver[120] - The company had no outstanding borrowings under the U.S. Revolver as of December 31, 2023, thus not experiencing significant interest rate risk[120] Foreign Exchange and Comprehensive Loss - For the three months ended December 31, 2023, the company experienced a realized foreign exchange loss of $0.2 million[117] - As of December 31, 2023, the accumulated other comprehensive loss was $23.8 million, a decrease of $3.1 million compared to September 30, 2023[118] - The company does not typically hedge against potential foreign currency translation adjustments[119]