Williams Controls Announces Fiscal Year End Results
13 January 1998
Williams Controls Announces Fiscal Year End Results; Operating Profit of $.06 Per Share on Continuing Operations
PORTLAND, Ore., Jan. 13 -- Williams Controls, Inc.
announced its results for the fourth quarter ended
September 30, 1997, including net earnings from continuing operations of
$173,000 or $.01 per share. This compared to a net loss from continuing
operations of $281,000 or $.02 per share in the same period one year ago.
Sales from continuing operations in the fiscal fourth quarter were
$13,949,000, an increase of 6% compared to sales from continuing operations of
$13,163,000 in the same period one year ago.
The Company reported net earnings from continuing operations for the
fiscal year ended September 30, 1997 of $1,135,000 or $.06 per share, compared
to $2,363,000 or $.13 per share for the year ended September 30, 1996.
Sales from continuing operations for the fiscal year ended September 30,
1997 were $56,254,000, a 10% increase compared to sales from continuing
operations of $51,279,000 in the twelve months ended September 30, 1996.
The Company reported overall net income for the fourth quarter ended
September 30, 1997 of $173,000 or $.01 per share. There were no losses from
discontinued operations in this quarter. This compared to a net loss of
$971,000 or $.06 per share in the year ago quarter, which included $690,000 of
losses from discontinued operations.
The Company reported an overall net loss for fiscal year 1997 of
$2,037,000 or $.11 per share, including $3,172,000 of losses from the
discontinued operations at Kenco, the Company's automotive aftermarket
accessories subsidiary. This compared to an overall net loss of $561,000 or
$.03 per share for fiscal year 1996, including $2,924,000 of losses from
discontinued operations.
Williams Controls chairman and CEO Thomas W. Itin stated, "These financial
results reflect the continued strong performance by our vehicle components
business, especially at our Portland, OR operation, Williams Controls
Industries. This segment reported nearly a 10% increase in operating earnings
on a 19% sales increase. These gains were offset by results below our
expectations for our Electrical Components business and our Agricultural
Equipment business, as we continue our profit enhancement efforts in these
areas. We believe that the recently announced addition of Ron Velat as
General Manager of Aptek, our electrical components business in Florida, will
provide new leadership and vision that will allow us to accelerate the
turnaround of that subsidiary and turn it into a profitable operation.
Similarly, the addition of Dennis Knowlton, a QS-9000 expert and former
General Motors operations manager, strengthens the management team at our
principal subsidiary, Williams Controls Industries, and provides the strategic
and operating leadership we need in pursuit of new product and market
opportunities for our market-leading electronic throttle controls."
Mr. Itin continued, "To improve the performance of our Electrical
Components businesses, we are focusing on two areas. First, at our GeoFocus
subsidiary, we have previously announced that our train tracking and
information system, TrainTrac(TM), had been installed and was operational on
the Tri-Rail commuter rail system in South Florida. We have recently
completed a second major element in the development of our system, adding an
Audio Announcement Module to the visual displays, which have been installed
and are fully operational. We are now developing an Automated Voice Response
Module so Tri-Rail passengers can use a touch-tone telephone to get scheduling
and arrival information. We are also exploring the development of an
additional module that will provide an Internet connection so Tri-Rail
passengers can go online to get the train information they need. At Aptek, a
series of new products are on schedule for introduction later this year, which
will be sold both inside and outside the Williams Controls organization. We
anticipate that these new products will be a major component of the profit
enhancement effort at Aptek this year."
Mr. Itin also commented that the sale of the Company's Kenco subsidiary
has been restructured to provide more flexibility to Williams Controls in
terms of how the proceeds are paid to the Company. The closing of this
transaction is expected to occur in the current quarter.
Williams Controls is a manufacturer and integrator of sensors, controls,
and communications systems for the transportation, communications and
agriculture industries. For more information, you can reach the Company at
http://www.williamscontrols.com on the World Wide Web.
This news release may contain forward-looking statements relating to the
Company, its current operations and its future prospects, which involve risks
and uncertainties that could cause actual results to differ materially from
those projected. These and other risks relating to the Company's business are
set forth in the Company's most recent Form 10-K and other filings with the
Securities and Exchange Commission.
Williams Controls, Inc.
Audited Condensed Consolidated Statements of Operations
(Dollars in thousands, except per share amounts)
Three mos. Three mos. Full Year Full Year
Ended Ended Ended Ended
9/30/97 9/30/96 9/30/97 9/30/96
Net sales $ 13,949 $ 13,163 $ 56,254 $ 51,279
Cost of sales 11,033 10,685 43,364 37,606
Gross margin 2,916 2,478 12,890 13,673
Operating expenses 1,962 2,593 8,618 8,079
Earnings (loss) from
continuing operations 173 (281) 1,135 2,363
Net loss from
discontinued operations - 0 - (690) (3,172) (2,924)
Net earnings (loss) 173 (971) (2,037) (561)
Earnings (loss) per
common share from
continuing operations .01 (.02) .06 .13
Earnings (loss) per
common share from
discontinued operations .00 (.04) (.17) (.16)
Earnings (loss) per
common share .01 (.06) (.11) (.03)
SOURCE Williams Controls, Inc.