Attached files
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| 8-K - FORM 8-K - WSI INDUSTRIES, INC. | c19094e8vk.htm |
Exhibit 99.1
For Immediate Release
WSI Industries Reports Improved Third Quarter Results
Sales up 40% & Earnings up 151%
Sales up 40% & Earnings up 151%
June 21, 2011—Minneapolis, MN—WSI Industries, Inc. (Nasdaq: WSCI) today reported operating
results for the fiscal 2011 third quarter ended May 29, 2011.
| • | Net sales of $6,532,000 were up 40% from $4,657,000 in the year earlier period. Year-to-date sales of $17,742,000 were up 37% over the prior year-to-date period. |
| • | Net income for the fiscal 2011 third quarter rose to $397,000 or $.14 per diluted share, an increase of 151% over the prior year’s net income of $158,000 or $.06 per diluted share Year-to-date net income increased to $559,000 or $.19 per diluted share versus the prior year-to-date period of $290,000 or $.10 per diluted share. |
Michael J. Pudil, chief executive officer, commented: “We are happy to report significant
improvements in both our top line sales and bottom line net income results in our fiscal 2011 third
quarter. Our sales growth came from all portions of our business with both our recreational
vehicle market as well as our energy business reporting solid revenue increases.”
President and COO Benjamin Rashleger stated: “During our fiscal 2011 third quarter, we made
significant improvements in our gross margins with respect to our newer programs. The start-up
costs that we incurred in the first two quarters of fiscal 2011 are now behind us.” Rashleger
continued: “These improvements, as well as the continued solid performance in the remainder of our
business propelled our earnings improvement in the third quarter.” Rashleger concluded: “We
remain confident with our overall prospects going forward. The combination of our current base of
business, as well as potential new opportunities bode well for our future success. We feel that
the revenue and earnings improvement that we realized during the fiscal 2011 third quarter was a
result of the investments we have made in personnel and equipment, and it demonstrates that we can
continue to be successful as we grow into the future.”
The Company also announced today that its Board of Directors has declared a quarterly dividend of
$.04 per share. As mentioned in prior quarters, the Company believes that a consistent dividend
program is a further sign of WSI’s financial strength and improved business outlook. The dividend
will be payable July 19, 2011 to holders of record on July 5, 2011.
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, aerospace and
defense, energy, recreational vehicles, computers, small engines, marine, bioscience and
instrumentation.
# # #
For additional information:
Michael J. Pudil (CEO), Benjamin Rashleger (President & COO) or Paul D. Sheely (CFO)
763/295-9202
Michael J. Pudil (CEO), 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 Company’s ability to
retain current programs and obtain additional manufacturing programs, and other factors detailed in
the Company’s 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
| Third quarter ended | Three quarters ended | |||||||||||||||
| May 29, | May 30, | May 29, | May 30, | |||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
Net Sales |
$ | 6,532 | $ | 4,657 | $ | 17,742 | $ | 12,970 | ||||||||
Cost of products sold |
5,066 | 3,744 | 14,679 | 10,618 | ||||||||||||
Gross margin |
1,466 | 913 | 3,063 | 2,352 | ||||||||||||
Selling and administrative expense |
774 | 583 | 1,976 | 1,644 | ||||||||||||
Interest and other income |
(3 | ) | (8 | ) | (10 | ) | (25 | ) | ||||||||
Interest and other expense |
75 | 91 | 223 | 280 | ||||||||||||
Profit (loss) from operations
before income taxes |
620 | 247 | 874 | 453 | ||||||||||||
Income taxes (benefit) |
223 | 89 | 315 | 163 | ||||||||||||
Net earnings (loss) |
$ | 397 | $ | 158 | $ | 559 | $ | 290 | ||||||||
Basic income (loss) per share |
$ | 0.14 | $ | 0.06 | $ | 0.20 | $ | 0.10 | ||||||||
Diluted income (loss) per share |
$ | 0.14 | $ | 0.06 | $ | 0.19 | $ | 0.10 | ||||||||
Weighted average number of common shares |
2,835 | 2,805 | 2,823 | 2,800 | ||||||||||||
Weighted average number of diluted shares |
2,878 | 2,805 | 2,870 | 2,800 | ||||||||||||
CONDENSED BALANCE SHEETS (Unaudited)
In thousands
In thousands
| May 29, | May 30, | |||||||
| 2011 | 2010 | |||||||
Assets: |
||||||||
Total Current Assets |
$ | 7,945 | $ | 7,765 | ||||
Property, Plant, and Equipment, net |
6,897 | 6,740 | ||||||
Intangible Assets |
2,368 | 2,862 | ||||||
Total Assets |
$ | 17,210 | $ | 17,367 | ||||
Liabilities and Shareholders’ Equity: |
||||||||
Total current liabilities |
$ | 3,011 | $ | 3,943 | ||||
Long-term debt |
3,889 | 3,954 | ||||||
Shareholders’ equity |
10,210 | 9,470 | ||||||
Total Liabilities and Shareholders’ Equity |
$ | 17,110 | $ | 17,367 | ||||