WSI Industries Reports 38% Sales Increase Over Prior Year
MINNEAPOLIS--Jan. 6, 2005--WSI Industries, Inc. today reported net sales of $3,874,000 for the first quarter of fiscal 2005 ended November 28, 2004, an increase of 38% from the year-earlier quarter of $2,806,000. The Company posted net income of $26,000 or $.01 per share, compared to $56,000 or $.02 per share in the first quarter of fiscal 2004. Included in results for the first quarter of fiscal 2005 were $168,000 of costs associated with the relocation of the Company's operations to its Monticello, Minnesota facility as well as the continued cost of operating the Company's Osseo, Minnesota facility.Michael J. Pudil, president and chief executive officer, commented: "We are pleased with our top-line sales growth in the first quarter. Revenues increased due to our previously announced new program in the recreational vehicle market, with the Company experiencing its first full quarter of sales from that project." Pudil went on to say: "With the completion of the relocation project in February, we expect to show improved results as the Company benefits from the efficiencies of being in the Monticello facility."
The Company also announced today that its Board of Directors has declared a dividend of $.0375 per share. The dividend will be payable February 4, 2005 to holders of record on January 21, 2005.
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, recreational vehicles, computers, small engines and the defense market.
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.
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CONSOLIDATED STATEMENT OF OPERATIONS (unaudited)
In thousands, except per share amounts
First quarter ended
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November 28, November 30,
2004 2003
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Net Sales $3,874 $2,806
Cost of products sold 3,301 2,384
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Gross margin 573 422
Selling and administrative expense 494 318
Interest and other income (1) (4)
Interest and other expense 40 16
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Earnings from operations
before income taxes 40 92
Income taxes 14 36
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Net earnings $26 $56
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Basic earnings (loss) per share $0.01 $0.02
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Diluted earnings (loss) per share $0.01 $0.02
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Weighted average number of common
shares outstanding 2,558 2,551
Weighted average number of
dilutive common shares outstanding 2,619 2,629
CONDENSED BALANCE SHEETS (Unaudited)
In thousands
November 28, November 30,
2004 2003
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Assets:
Total Current Assets $3,506 $3,423
Property, Plant, and Equipment, net 3,698 1,593
Intangible Assets, net 4,071 4,146
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Total Assets $11,275 $9,162
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Liabilities and Shareholders' Equity:
Total current liabilities $1,757 $1,213
Long-term debt 2,520 597
Shareholders' equity 6,998 7,352
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Total Liabilities and Shareholders'
Equity $11,275 $9,162
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