WSI Industries Reports Results
MINNEAPOLIS--March 31, 2006--WSI Industries, Inc. today reported net sales of $3,574,000 for the second quarter of fiscal 2006 ended February 26, 2006 compared to the year-earlier quarter of $3,654,000. The Company posted net income of $69,000 or $.03 per share, compared to $28,000 or $.01 per share in the second quarter of fiscal 2005.Michael J. Pudil, president and chief executive officer, commented: "We are pleased to have experienced our sixth consecutive quarter of profitability as well as a twelfth consecutive quarter of paying a dividend. As previously announced our fiscal 2006 second quarter sales were down due to reduced customer scheduling in the recreational vehicle portion of our business. Other areas of our business showed increased activity. Our aerospace sales increased by over 50% to $564,000 during this quarter versus the prior year of $372,000 and our quoting activity increased in the majority of markets we serve. We have continued to invest in our business by adding sales personnel in order to meet our objective of diversifying our customer base. We are also adding machining capabilities as well as establishing global supply sources to further our competitiveness in securing new business. Overall, we have a positive outlook on realizing success in this area." Pudil went on to say: "We expect our overall sales to rebound by approximately 15% in the 3rd and 4th quarters as compared to the 2nd quarter and for profitability to also improve in the last half of fiscal 2006."
In keeping with its announced policy to reward its shareholders, the Company also announced today that its Board of Directors has declared a dividend of $.0375 per share. The dividend will be payable April 28, 2006 to holders of record on April 14, 2006.
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, aerospace and defense, recreational vehicles, computers, small engines, marine, bioscience and instrumentation.
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
Second quarter First six months
ended ended
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Feb. 26, Feb. 27, Feb. 26, Feb. 27,
2006 2005 2006 2005
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Net Sales $3,574 $3,654 $7,744 $7,529
Cost of products sold 3,044 3,036 6,490 6,338
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Gross margin 530 618 1,254 1,191
Selling and administrative expense 384 537 791 1,031
Interest and other income (11) (5) (20) (6)
Interest and other expense 45 42 83 82
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Profit from operations
before income taxes 112 44 400 84
Income taxes 43 16 152 30
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Net earnings $69 $28 $248 $54
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Basic earnings per share $0.03 $0.01 $0.09 $0.02
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Diluted earnings per share $0.03 $0.01 $0.09 $0.02
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Weighted average number of
common shares 2,677 2,558 2,675 2,558
Weighted average number of
dilutive common shares
outstanding 2,721 2,630 2,723 2,624
CONDENSED BALANCE SHEETS (Unaudited)
In thousands
Feb. 26, Feb. 27,
2006 2005
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Assets:
Total Current Assets $4,150 $3,359
Property, Plant, and Equipment, net 3,597 3,907
Intangible Assets 3,863 4,054
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Total Assets $11,610 $11,320
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Liabilities and Shareholders' Equity:
Total current liabilities $1,524 $1,613
Long-term debt 2,721 2,776
Shareholders' equity 7,365 6,931
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Total Liabilities and Shareholders' Equity $11,610 $11,320
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