WSI Industries Reports 40% Sales Increase Over Prior Year
MINNEAPOLIS--March 22, 2005--WSI Industries, Inc. today reported net sales of $3,654,000 for the second quarter of fiscal 2005 ended February 27, 2005, an increase of 40% from the year-earlier quarter of $2,615,000. The Company posted net income of $28,000 or $.01 per share, compared to $54,000 or $.02 per share in the second quarter of fiscal 2004. Included in results for the second quarter of fiscal 2005 was $160,000 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: "During the first six months of fiscal 2005, we have experienced a substantial increase in sales while concurrently relocating our entire manufacturing operation. We are pleased to have come through the period profitably while still meeting all of our customer requirements." Pudil went on to say: "With the relocation project behind us, we expect to show improved results during the balance of the fiscal year."
The Company also announced today that its Board of Directors has declared a dividend of $.0375 per share. The dividend will be payable April 20, 2005 to holders of record on April 6, 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.
WSI INDUSTRIES, INC.
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CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
In thousands, except per share amounts
Second quarter ended First six months ended
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February 27, February 29, February 27, February 29,
2005 2004 2005 2004
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Net Sales $3,654 $2,616 $7,529 $5,422
Cost of products
sold 3,036 2,198 6,338 4,582
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Gross margin 618 418 1,191 840
Selling and
administrative
expense 537 324 1,031 642
Interest and other
income (5) (4) (6) (8)
Interest and other
expense 42 15 82 31
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Profit from
operations before
income taxes 44 83 84 175
Income taxes 16 27 30 63
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Net earnings $28 $56 $54 $112
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Basic earnings per
share $0.01 $0.02 $0.02 $0.04
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Diluted earnings
per share $0.01 $0.02 $0.02 $0.04
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Weighted average
number of common
shares 2,558 2,552 2,558 2,552
Weighted average
number of
dilutive common
shares
outstanding 2,630 2,626 2,624 2,628
CONDENSED BALANCE SHEETS (Unaudited)
In thousands
February 27, February 29,
2005 2004
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Assets:
Total Current Assets $3,359 $3,363
Property, Plant, and Equipment, net 3,907 1,464
Intangible Assets 4,054 4,118
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Total Assets $11,320 $8,945
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Liabilities and Shareholders' Equity:
Total current liabilities $1,613 $1,086
Long-term debt 2,776 544
Shareholders' equity 6,931 7,315
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Total Liabilities and Shareholders' Equity $11,320 $8,945
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