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Thu, January 22, 2009
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Published in House and Home on Thursday, January 8th 2009 at 14:37 GMT, Last Modified on 2009-01-08 14:38:20 by Market Wire🞛 This publication is a summary or evaluation of another publication
MINNEAPOLIS--([ BUSINESS WIRE ])--WSI Industries, Inc. (Nasdaq: WSCI) today reported sales for its fiscal 2009 first quarter ending November 30, 2008 of $6,035,000, a slight increase over the prior year amount of $5,975,000. Net income for the fiscal 2009 first quarter was $101,000 or $.04 versus $387,000 or $.14 per share in the prior year first quarter. Included in the prior year fiscal 2008 first quarter income was a gain on sale of equipment which contributed $98,000 to pre-tax income.
Michael J. Pudil, president and chief executive officer, commented: "As expected, our fiscal 2009 first quarter revenues were flat in comparison to the prior year. During the quarter, our sales were affected by delays in program start-ups in our energy business as well as the deterioration in the overall economy. While our recreational vehicle market sales held up well during the quarter, our revenues from the energy business experienced a quarter on quarter decline as compared to the fiscal 2008 fourth quarter. Our net earnings were negatively affected by the program start-up costs as well as volume inefficiencies." Pudil went on to say: "Unfortunately WSI is not immune to the economic downturn that is facing the country. We expect a further deterioration in revenues in our fiscal 2009 second quarter; however, we are hopeful of a rebound in the last half of fiscal 2009." Pudil concluded: "While it is difficult to predict how economic conditions might impact business, we remain confident about the position we have established for WSI. We are a key supplier of value added components to a number of customers serving a wide variety of markets. We have a strong balance sheet, excellent employees, facilities and equipment and have several new business opportunities that we are pursuing. We are optimistic about our prospects for long-term success."
The Company also announced today that, given the current economic conditions and the prudent need to conserve cash, its Board of Directors is not declaring a dividend this quarter.
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, 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 25, | |||||||||||||
| 2008 | 2007 | |||||||||||||
| Net Sales | $ | 6,035 | $ | 5,975 | ||||||||||
| Cost of products sold | 5,209 | 4,856 | ||||||||||||
| Gross margin | 826 | 1,119 | ||||||||||||
| Selling and administrative expense | 581 | 577 | ||||||||||||
| Gain on sale of equipment | - | (98 | ) | |||||||||||
| Interest and other income | (4 | ) | (22 | ) | ||||||||||
| Interest and other expense | 92 | 67 | ||||||||||||
Earnings from operations before income taxes | 157 | 595 | ||||||||||||
| Income taxes | 56 | 208 | ||||||||||||
| Net earnings | $ | 101 | $ | 387 | ||||||||||
| Basic earnings (loss) per share | $ | 0.04 | $ | 0.14 | ||||||||||
| Diluted earnings (loss) per share | $ | 0.04 | $ | 0.14 | ||||||||||
| ||||||||||||||
Weighted average number of common shares outstanding | 2,785 | 2,724 | ||||||||||||
| ||||||||||||||
Weighted average number of dilutive common shares outstanding | 2,798 | 2,804 | ||||||||||||
| CONDENSED BALANCE SHEETS (Unaudited) | ||||||||||||||
| In thousands | ||||||||||||||
| November 30, | November 25, | |||||||||||||
| 2008 | 2007 | |||||||||||||
| Assets: | ||||||||||||||
| Total Current Assets | $ | 8,615 | $ | 6,882 | ||||||||||
| Property, Plant, and Equipment, net | 8,164 | 5,565 | ||||||||||||
| Intangible Assets, net | 2,847 | 3,079 | ||||||||||||
| Total Assets | $ | 19,626 | $ | 15,526 | ||||||||||
| Liabilities and Shareholders' Equity: | ||||||||||||||
| Total current liabilities | $ | 4,011 | $ | 3,078 | ||||||||||
| Long-term debt | 6,477 | 4,243 | ||||||||||||
| Shareholders' equity | 9,138 | 8,205 | ||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 19,626 | $ | 15,526 | ||||||||||