WSI Industries, Inc. (Nasdaq: WSCI) today reported sales for its fiscal 2013 third quarter ending May 26, 2013 of $9,169,000 versus the prior year amount of $9,483,000 or a decrease of 3% over the prior year quarter. Year-to-date sales for the nine months ended May 26, 2013 totaled $24,931,000, an increase of 11% versus $22,491,000 in the prior year.
The Company also reported net income of $106,000 or $.04 per diluted share for the fiscal 2013 third quarter compared to $598,000 or $.21 per diluted share in the prior year third quarter. Year-to-date income was $593,000 or $.20 per diluted share versus $874,000 or $.30 per diluted share in the prior year.
Benjamin Rashleger, president and chief executive officer, commented: “This was a particularly difficult year over year comparison for us. During last year’s third quarter we were running at nearly full capacity in all of the markets we serve. Since then we have suffered a reduction in our energy business which has resulted in volume and production inefficiencies. Also in our current fiscal 2013 third quarter, we experienced startup costs in new programs in our recreational vehicle market as well as our new firearms business.” Rashleger further stated: “While our energy business is down, we have remained focused on managing our business around our long-term goals of profitable revenue growth, along with diversification of our customers and markets, and focusing on building a world-class level of excellence in our operations. Our recently completed facility expansion and the purchase of several machines in anticipation of new programs that will ramp up in production over the coming quarters are examples of this and they are critical requirements for us to meet our objectives.”
Rashleger continued: “Our business has and will be cyclical in nature. However, we must drive the business by making decisions that best support our long-term goal of profitably growing the business, which in turn will drive increasing shareholder return. We are very confident in the potential that exists for WSI and are excited about our potential looking forward. In the coming year we expect new recreational products programs, in which we are currently making investments, to reach full production. We also anticipate that our energy market will begin to show signs of recovery and refill our available capacity. Our new firearms program, which is a new customer and market for WSI, should start to provide revenue over the coming year. And finally, we expect to complete our AS9100 aerospace quality certification in our fourth quarter of our fiscal 2013, which will enhance our ability to secure new aerospace business, as well as offer diversification to our business and the markets we serve.” Rashleger concluded: “Our backlog is strong and we are confident in the potential for our business in both our existing programs and the opportunities we are actively pursuing.”
The Company also announced today that its Board of Directors has declared a quarterly dividend of $.04 per share. The dividend will be payable July 16, 2013 to holders of record on July 2, 2013.
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, firearms, 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|
|Third quarter ended||Three quarters ended|
|May 26||May 27||May 26||May 27|
|Cost of products sold||8,241||7,561||21,749||18,594|
|Selling and administrative expense||689||909||2,021||2,310|
|Interest and other income||(6||)||(1||)||(8||)||(13||)|
|Interest and other expense||80||80||243||235|
|Profit (loss) from operations|
|before income taxes||165||934||926||1365|
|Income taxes (benefit)||59||336||333||491|
|Net earnings (loss)||$106||$598||$593||$874|
|Basic income (loss) per share||$0.04||$0.21||$0.21||$0.31|
|Diluted income (loss) per share||$0.04||$0.21||$0.20||$0.30|
|Weighted average number of common shares||2,889||2,854||2,881||2,847|
|Weighted average number of diluted shares||2,942||2,907||2,943||2,900|
|CONDENSED BALANCE SHEETS (Unaudited)|
|May 26,||May 27,|
|Total Current Assets||$10,779||$10,129|
|Property, Plant, and Equipment, net||13,729||8,467|
|Liabilities and Shareholders' Equity:|
|Total current liabilities||$4,342||$4,342|
|Deferred tax liablities||1,240||691|
|Total Liabilities and Shareholders' Equity||$26,896||$20,964|
Benjamin Rashleger (President & CEO), 763-295-9202
Paul D. Sheely (CFO), 763-295-9202
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