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| 8-K - WSI INDUSTRIES, INC. | form8-k.htm |
For Immediate Release
WSI Industries Reports Third Quarter Financial Results
June 22, 2017—Minneapolis, MN—WSI Industries, Inc. (Nasdaq: WSCI) today reported sales for its fiscal 2017 third quarter ending May 28, 2017 of $9,594,000 versus the prior year amount of $8,886,000, or an increase of 8%. Year-to-date sales for the period ended May 28, 2017 totaled $22,237,000 versus $27,106,000 in the prior year.
The Company also reported a net loss of $220,000 or $.08 per diluted share for the fiscal 2017 third quarter compared to net income of $78,000 or $.03 per diluted share in the prior year third quarter. Year-to-date, the Company has incurred a net loss of $904,000 or $.31 per diluted share versus net income of $216,000 or $.07 per diluted share in the prior year.
Michael Pudil, president and chief executive officer, commented: “Our third quarter income was affected by one-time expenses related to the change in CEO leadership. In addition, we also realized an impairment in equipment value in the quarter. Without these one-time costs our operations were profitable during the quarter.”
Pudil concluded: “We have an excellent existing customer base who are leaders in their respective businesses. In addition, new business efforts in aerospace, energy and industrial markets look promising. We are in a highly competitive and dynamic marketplace and I intend on WSI being a successful leader in our industry.”
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 vehicles, small engines, bioscience and the defense markets.
# # #
For additional information:
Michael J. Pudil (President & CEO) or Paul D. Sheely (CFO)
763-295-9202
| 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 28, 2017 | May 29, 2016 | May 28, 2017 | May 29, 2016 | |||||||||||||
| Net Sales | $ | 9,594 | $ | 8,886 | $ | 22,237 | $ | 27,106 | ||||||||
| Cost of products sold | 8,563 | 7,934 | 20,692 | 24,620 | ||||||||||||
| Gross margin | 1,031 | 952 | 1,545 | 2,486 | ||||||||||||
| Selling and administrative expense | 1,203 | 788 | 2,684 | 2,209 | ||||||||||||
| Interest and other income | (7 | ) | (16 | ) | (10 | ) | (20 | ) | ||||||||
| Interest and other expense | 220 | 76 | 354 | 236 | ||||||||||||
| Income (loss) from operations before income taxes | (385 | ) | 104 | (1483 | ) | 61 | ||||||||||
| Income tax expense (benefit) | (165 | ) | 26 | (579 | ) | (155 | ) | |||||||||
| Net income (loss) | $ | (220 | ) | $ | 78 | $ | (904 | ) | $ | 216 | ||||||
| Basic income (loss) per share | $ | (0.08 | ) | $ | 0.03 | $ | (0.31 | ) | $ | 0.07 | ||||||
| Diluted (loss) income per share | $ | (0.08 | ) | $ | 0.03 | $ | (0.31 | ) | $ | 0.07 | ||||||
| Weighted average number of common shares | 2,923 | 2,920 | 2,921 | 2,920 | ||||||||||||
| Weighted average number of diluted shares | 2,923 | 2,925 | 2,921 | 2,929 | ||||||||||||
CONDENSED BALANCE SHEETS (Unaudited)
In thousands
| May 28, 2017 | May 29, 2016 | |||||||
| Assets: | ||||||||
| Total Current Assets | $ | 11,714 | $ | 12,746 | ||||
| Property, Plant, and Equipment, net | 10,738 | 11,811 | ||||||
| Intangible Assets | 2,368 | 2,376 | ||||||
| Total Assets | $ | 24,820 | $ | 26,933 | ||||
| Liabilities and Shareholders’ Equity: | ||||||||
| Total current liabilities | $ | 4,935 | $ | 3,811 | ||||
| Long-term debt | 5,796 | 7,180 | ||||||
| Deferred tax liabilities | 823 | 1,951 | ||||||
| Shareholders’ equity | 13,266 | 13,991 | ||||||
| Total Liabilities and Shareholders’ Equity | $ | 24,820 | $ | 26,933 | ||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
In thousands
| Three quarters ended | ||||||||
| May 28, 2017 | May 29, 2016 | |||||||
| Cash flows from operating activities (1) | $ | 2,469 | $ | 3,886 | ||||
| Cash used in investing activities | (786 | ) | (276 | ) | ||||
| Cash provided by (used in) financing activities | 166 | (1,381 | ) | |||||
| Net increase in cash and cash equivalents | 1,849 | 2,229 | ||||||
| Cash and cash equivalents at beginning of period | 3,739 | 4,150 | ||||||
| Cash and cash equivalents at end of period | $ | 5,588 | $ | 6,379 | ||||
(1) Cash flows from operating activities includes non-cash adjustments for depreciation and stock option compensation expense of $1,589 and $1,518 at May 28, 2017 and May 29, 2016, respectively.