MINNEAPOLIS, MN--(Marketwired - Dec 21, 2015) - WSI Industries, Inc. (
Related to the quarter results, Benjamin Rashleger, president and chief executive officer, commented: "Our fiscal 2016 first quarter sales were down from the prior year quarter due to the continued slump in our energy business. However, our core business in the recreational powersports market experienced another rise with sales increasing by 11% over the prior year quarter." Rashleger continued: "The impact of the low price of oil and natural gas has essentially idled our energy related business. This reduction has, and will continue to, impact our results while we backfill our available and underutilized capacity which leaves us well positioned to capture new business."
Related to the business, Rashleger commented: "We understand the importance of having a robust business development system in place to drive our diversification and growth goals. We have been making important and strategic changes to our organization and strategy as it relates to business development, and we were pleased to recently announce the addition of Tom Schmeling as our Director of Business Development and Marketing. Tom will lead an independent and dedicated department and team with the sole responsibility of developing new business in strategic industries and with strategic accounts in those industries. Tom will be responsible for all of our business development and marketing strategies and the execution towards those strategies. We are excited about the potential Tom will bring to our organization, and for the benefit his contribution and leadership will bring to our diversification and growth goals. Tom's addition will complement and further improve the traction we've developed in our current business development efforts, and we believe the quality of our existing opportunities remains good."
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, 2016 to holders of record on January 6, 2016.
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 29, | November 30, | ||||||
| 2015 | 2014 | ||||||
| Net Sales | $ | 9,731 | $ | 10,098 | |||
| Cost of products sold | 8,843 | 9,059 | |||||
| Gross margin | 888 | 1,039 | |||||
| Selling and administrative expense | 705 | 700 | |||||
| Interest and other income | (1 | ) | (2 | ) | |||
| Interest and other expense | 82 | 88 | |||||
| Earnings from operations before income taxes | 102 | 253 | |||||
| Income tax expense (benefit) | (30 | ) | 86 | ||||
| Net earnings | $ | 132 | $ | 167 | |||
| Basic earnings per share | $ | 0.05 | $ | 0.06 | |||
| Diluted earnings per share | $ | 0.05 | $ | 0.06 | |||
| Weighted average number of common shares outstanding | 2,920 | 2,904 | |||||
| Weighted average number of dilutive common shares outstanding | 2,932 | 2,961 | |||||
| CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||
| In thousands | |||||||
| November 29, | November 30, | ||||||
| 2015 | 2014 | ||||||
| Assets: | |||||||
| Total Current Assets | $ | 13,114 | $ | 12,982 | |||
| Property, Plant, and Equipment, net | 12,465 | 12,831 | |||||
| Intangible Assets, net | 2,378 | 2,382 | |||||
| Total Assets | $ | 27,957 | $ | 28,195 | |||
| Liabilities and Shareholders' Equity: | |||||||
| Total current liabilities | $ | 4,244 | $ | 4,720 | |||
| Long-term debt | 7,959 | 8,203 | |||||
| Deferred tax liabilities | 1,826 | 2,060 | |||||
| Shareholders' equity | 13,928 | 13,212 | |||||
| Total Liabilities and Shareholders' Equity | $ | 27,957 | $ | 28,195 | |||
| CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) | |||||||
| In thousands | |||||||
| November 29, | November 30, | ||||||
| 2015 | 2014 | ||||||
| Cash flows from operating activities (1) | $ | 1,454 | $ | 436 | |||
| Cash used in investing activities | (50 | ) | (33 | ) | |||
| Cash used in financing activities | (513 | ) | (546 | ) | |||
| Net increase (decrease) in cash and cash equivalents | 891 | (143 | ) | ||||
| Cash and cash equivalents at beginning of period | 4,150 | 3,233 | |||||
| Cash and cash equivalents at end of period | $ | 5,041 | $ | 3,090 | |||
| (1) Cash flows from operating activities includes non-cash adjustments for depreciation, deferred taxes and stock option compensation expense of $619 and $619 at November 29, 2015 and November 30, 2014, respectively. | |||||||
For additional information: Benjamin Rashleger (President & CEO) or Paul D. Sheely (CFO) 763-295-9202
