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8-K - FORM 8-K - WSI INDUSTRIES, INC. | c60922e8vk.htm |
EX-99.2 - EX-99.2 - WSI INDUSTRIES, INC. | c60922exv99w2.htm |
EXHIBIT 99.1
WSI Industries Reports Strong 4th Quarter & Year End Results
& Reinstatement of the Dividend Program
& Reinstatement of the Dividend Program
October 19, 2010Minneapolis, MNWSI Industries, Inc. (Nasdaq: WSCI) today reported sales for the
fourth quarter ended August 29, 2010, of $5,856,000 versus the prior year fiscal 2009 fourth
quarter of $3,993,000, or an increase of 47%. The Companys net income in the current years
fourth quarter was $348,000 or $.12 per diluted share as compared to the prior years quarter of
$35,000 or $.01 per diluted share.
For the full year, sales for fiscal 2010 were $18,827,000, a slight increase over the prior year
amount of $18,766,000. For fiscal 2010 the Company experienced net income of $637,000 or $.23 per
diluted share compared to the prior years net loss of $159,000 or $.06 loss per diluted share.
Michael J. Pudil, chief executive officer, commented: We are pleased to report a dramatic
increase in sales and earnings in our fiscal 2010 fourth quarter as compared to the same period
last year. WSI experienced a surge in activity in our fourth quarter, and due to the steps we have
taken to streamline our costs and improve efficiencies, we were able to capitalize on the increase
in activity. Looking forward, we anticipate that overall fiscal 2011 will also show improvement
from fiscal 2010.
The Company also announced today that its Board of Directors has declared a quarterly dividend of
$.04 per share. The dividend will be payable November 17, 2010 to holders of record on November 3,
2010. Pudil commented: We are also pleased to announce the reinstatement of the dividend program
that was suspended in January 2009 because of uncertain economic conditions. We believe that a
consistent dividend program is a further sign of WSIs financial strength and improved business
outlook. It is our objective to reward our shareholders with cash dividends as well as increasing
share appreciation while, at the same time, maintaining our strong financial position. We believe
the dividend program helps us accomplish these goals.
Benjamin Rashleger, president and chief operating officer, added We are beginning to capitalize on
our new business efforts over the past year. We announced in July that we were awarded an assembly
program for a major defense contractor. We recently have successfully completed initial runs for
two additional new customers, and have been qualified and approved for multiple new programs with
each. One of these new customers will expand our penetration into the energy sector, while the
other is in an entirely new market for WSI. In addition, we also have several opportunities that we
are working on and hope to expand on the recent success of our new business efforts and the
securing of additional new business for WSI. Rashleger continued To support both our new
customers and increases in business with our current customers we are investing in our business in
both capital equipment and human resources. Rashleger concluded We must remain focused on our
ability to execute. We are making the necessary capital and personnel investments to best support
our current customer demands, as well as making adjustments in our organization to be able to
support future customers and their demands.
WSI Industries, Inc. is a leading contract manufacturer that specializes in the machining of
complex, high-precision parts for a wide range of industries, including avionics and aerospace,
energy, recreational vehicles, small engines, marine, bioscience and the defense market.
# # #
For additional information:
Michael J. Pudil (CEO) or Benjamin Rashleger (President & COO) or Paul D. Sheely (CFO)
763-295-9202
The statements included herein which are not historical or current facts are forward-looking
statements made pursuant to the safe harbor provisions of the Private Securities Reform Act of
1995. There are certain important factors which could cause actual results to differ materially
from those anticipated by some of the statements made herein, including the Companys ability to
retain current programs and obtain additional manufacturing programs, and other factors detailed in
the Companys filings with the Securities and Exchange Commission.
WSI INDUSTRIES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
In thousands, except per share amounts
In thousands, except per share amounts
Quarter ended | Year ended | |||||||||||||||
August 29, | August 30, | August 29, | August 30, | |||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Net Sales |
$ | 5,856 | $ | 3,993 | $ | 18,827 | $ | 18,766 | ||||||||
Cost of products sold |
4,462 | 3,293 | 15,080 | 16,395 | ||||||||||||
Gross margin |
1,394 | 700 | 3,747 | 2,371 | ||||||||||||
Selling and administrative expense |
778 | 552 | 2,425 | 2,226 | ||||||||||||
Interest and other income |
(6 | ) | (7 | ) | (33 | ) | (23 | ) | ||||||||
Interest and other expense |
79 | 101 | 359 | 417 | ||||||||||||
Net Income before taxes |
543 | 54 | 996 | (249 | ) | |||||||||||
Income tax expense (benefit) |
195 | 19 | 359 | (90 | ) | |||||||||||
Net income (loss) |
$ | 348 | $ | 35 | $ | 637 | ($159 | ) | ||||||||
Basic earnings (loss) per share |
$ | 0.12 | $ | 0.01 | $ | 0.23 | ($0.06 | ) | ||||||||
Diluted earnings (loss) per share |
$ | 0.12 | $ | 0.01 | $ | 0.23 | ($0.06 | ) | ||||||||
Weighted average number of common
shares outstanding |
2,805 | 2,793 | 2,801 | 2,790 | ||||||||||||
Weighted average number of common and
dilutive potential common shares |
2,805 | 2,793 | 2,801 | 2,790 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
In thousands
In thousands
August 29, | August 30, | |||||||
2010 | 2009 | |||||||
Assets: |
||||||||
Total Current Assets |
$ | 7,852 | $ | 7,971 | ||||
Property, Plant, and Equipment, net |
6,507 | 7,520 | ||||||
Intangible Assets |
2,627 | 3,013 | ||||||
Total Assets |
$ | 16,986 | $ | 18,504 | ||||
Liabilities and Shareholders Equity: |
||||||||
Total current liabilities |
$ | 3,414 | $ | 4,568 | ||||
Long-term debt |
3,737 | 4,902 | ||||||
Shareholders equity |
9,835 | 9,034 | ||||||
Total Liabilities and
Shareholders Equity |
$ | 16,986 | $ | 18,504 | ||||