Sales & Earnings Increase Over Prior Year
MINNEAPOLIS, Dec. 20, 2017 (GLOBE NEWSWIRE) -- WSI Industries, Inc. (Nasdaq:WSCI) today reported sales for its fiscal 2018 first quarter ending November 26, 2017 of $7,529,000, an increase of 19% versus the prior year amount of $6,330,000. The Company also reported net income for the fiscal 2018 first quarter of $86,000 or $.03 per diluted share versus a net loss of $322,000 or $.11 per diluted share in the prior year quarter.
Michael Pudil, president and chief executive officer, commented: “We are pleased with our results from our fiscal 2018 first quarter. We experienced an increase in sales in all of our major business segments and also returned to profitability versus the prior year’s fiscal first quarter. In our prior year fiscal 2017 first quarter, our primary customer shutdown one of their production facilities which negatively affected our sales and earnings in that quarter. The Company experienced a similar shutdown in the fiscal 2018 first quarter with its customer, but we were more effective in managing our production in this year’s quarter which aided the bottom line.” Pudil continued: “Our sales in our energy business, aerospace and other industrial business also grew in the fiscal 2018 first quarter. In particular, our energy business grew 526% while aerospace and industrial grew 61%. Both segments were aided by new customers and new programs.”
Pudil concluded: “We remain optimistic about the balance of fiscal 2018 but realize that much needs to be done. We continue to gain traction in our sales efforts with new customers, and we are bringing in new programs that should benefit us during fiscal 2018. We recognize the tremendous effort that has been put forth by our employees in the gains that we have made.”
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 automotive, avionics and aerospace, energy, recreational powersports vehicles, small engines, marine, bioscience and the defense markets.
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 | |||||||
| First quarter ended | |||||||
| November 26, | November 27, | ||||||
| 2017 | 2016 | ||||||
| Net Sales | $ | 7,529 | $ | 6,330 | |||
| Cost of products sold | 6,630 | 6,022 | |||||
| Gross margin | 899 | 308 | |||||
| Selling and administrative expense | 691 | 761 | |||||
| Interest and other income | (9 | ) | (2 | ) | |||
| Interest and other expense | 78 | 68 | |||||
| Earnings (loss) from operations before income taxes | 139 | (519 | ) | ||||
| Income tax expense (benefit) | 53 | (197 | ) | ||||
| Net income (loss) | $ | 86 | $ | (322 | ) | ||
| Basic earnings (loss) per share | $ | 0.03 | $ | (0.11 | ) | ||
| Diluted earnings (loss) per share | $ | 0.03 | $ | (0.11 | ) | ||
| Weighted average number of common shares outstanding | 2,936 | 2,920 | |||||
| Weighted average number of dilutive common shares outstanding | 2,939 | 2,920 | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
In thousands
| November 26, | November 27, | ||||
| 2017 | 2016 | ||||
| Assets: | |||||
| Total current assets | $ | 13,117 | $ | 10,062 | |
| Property, plant, and equipment, net | 10,856 | 11,023 | |||
| Other assets | 2,369 | 3,624 | |||
| Total Assets | $ | 26,342 | $ | 24,709 | |
| Liabilities and Shareholders' Equity: | |||||
| Total current liabilities | $ | 5,611 | $ | 3,425 | |
| Long-term debt | 6,209 | 6,395 | |||
| Deferred tax liabilities | 1,129 | 1,206 | |||
| Shareholders' equity | 13,393 | 13,683 | |||
| Total Liabilities and Shareholders' Equity | $ | 26,342 | $ | 24,709 | |
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
In thousands
| November 26, | November 27, | ||||||
| 2017 | 2016 | ||||||
| Cash flows from operating activities (1) | $ | 401 | $ | 1,878 | |||
| Cash from (used in) investing activities | 118 | (15 | ) | ||||
| Cash used in financing activities | (379 | ) | (384 | ) | |||
| Net increase in cash and cash equivalents | 140 | 1,479 | |||||
| Cash and cash equivalents at beginning of period | 5,847 | 3,739 | |||||
| Cash and cash equivalents at end of period | $ | 5,987 | $ | 5,218 | |||
(1) Cash flows from operating activities includes non-cash adjustments for depreciation, deferred taxes and stock option compensation expense of $549 and $284 at November 26, 2017 and November 27, 2016, respectively.
For additional information:
Michael J. Pudil (President & CEO) or Paul D. Sheely (CFO)
763-295-9202