WSI Industries Reports Fiscal 2015 First Quarter Financial Results

MINNEAPOLIS--()--WSI Industries, Inc. (Nasdaq: WSCI) today reported sales for its fiscal 2015 first quarter ending November 30, 2014 of $10,098,000, versus the prior year amount of $10,199,000. Net income for the fiscal 2015 first quarter was $167,000 or $.06 per diluted share versus the prior year quarter of $345,000 or $.12 per diluted share.

Benjamin Rashleger, president and chief executive officer, commented: “Our fiscal 2015 first quarter sales were down slightly from last year’s first quarter. We experienced a moderate increase in our energy business which was offset by declines in both our aerospace and defense businesses. Our gross margin was down year-over-year due primarily to product mix as well as some production inefficiencies.” Rashleger continued: “Based on our backlog and customer forecasts, we anticipate that sales will increase in the coming quarters, and we are actively ramping up our human resource recruiting efforts in order to meet our upcoming customer requirements. We are also continuing to expand our business development efforts with new customers and opportunities. Our search is focused primarily on the aerospace and automotive industries, although we also are considering other areas that support the diversification of our business portfolio. While our near term sales expectations are strong, we will continue our efforts to grow and diversify our business.”

The Company also announced today that its Board of Directors has declared a quarterly dividend of $.04 per share. The dividend will be payable January 20, 2015 to holders of record on January 6, 2015.

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 30,     November 24,
2014 2013
Net Sales $10,098 $10,199
Cost of products sold 9,059   8,848  
Gross margin 1,039 1,351
 
Selling and administrative expense 700 700
Interest and other income (2 ) (1 )
Interest and other expense 88   113  

Earnings from operations before income taxes

253 539
Income taxes 86   194  
Net earnings $167   $345  
 
Basic earnings per share $0.06   $0.12  
 
Diluted earnings per share $0.06   $0.12  
 

Weighted average number of common shares outstanding

2,904 2,892
 

Weighted average number of dilutive common shares outstanding

2,961 2,950
 
 
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
In thousands        
November 30, November 24,
2014 2013
Assets:
Total Current Assets $12,982 $11,099
Property, Plant, and Equipment, net 12,831 14,756
Intangible Assets, net 2,382 2,386
Total Assets $28,195 $28,241
 
Liabilities and Shareholders' Equity:
Total current liabilities $4,720 $4,587
Long-term debt 8,203 9,739
Deferred tax liabilities 2,060 1,516
Shareholders' equity 13,212 12,399
Total Liabilities and Shareholders' Equity $28,195 $28,241
 
 
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
In thousands        
November 30, November 24,
2014 2013
 
Cash flows from operating activities (1) $436 $1,453
Cash used in investing activities (33 ) (26 )
Cash used in financing activities (546 ) (607 )
Net increase (decrease) in cash and cash equivalents (143 ) 820
 
Cash and cash equivalents at beginning of period 3,233   1,906  
 
Cash and cash equivalents at end of period $3,090   $2,726  
 

(1) Cash flows from operating activities includes non-cash adjustments for depreciation, deferred taxes and stock option compensation expense of $619 and $809 at November 30, 2014 and November 24, 2013, respectively.

Contacts

WSI Industries, Inc.
Benjamin Rashleger (President & CEO) or Paul D. Sheely (CFO)
763-295-9202

Contacts

WSI Industries, Inc.
Benjamin Rashleger (President & CEO) or Paul D. Sheely (CFO)
763-295-9202