WSI Industries Reports 43% Increase in Sales & 310% Increase in Net Income

  WSI Industries Reports 43% Increase in Sales & 310% Increase in Net Income

Business Wire

MINNEAPOLIS -- January 3, 2013

WSI Industries, Inc. (Nasdaq: WSCI) today reported sales for its fiscal 2013
first quarter ending November 25, 2012 of $8,584,000, a 43% increase versus
the prior year amount of $5,987,000. Net income for the fiscal 2013 first
quarter was $431,000 or $.15 per diluted share which represented a 310%
increase over the prior year quarter of $105,000 or $.04 per diluted share.

Benjamin Rashleger, president and chief executive officer, commented: “We
began fiscal 2013 with significant momentum carried over from the last two
quarters of fiscal 2012. With our fiscal 2013 first quarter, we have completed
a third consecutive quarter where our quarterly sales have increased by 38% or
more year over year.” Rashleger further stated: “While we have experienced
some significant improvements over the past few quarters in our year over year
earnings, we have experienced some softening in our energy business, and
expect to see some near term impact due to this softening, especially when
considering that our second quarter historically is our slowest quarter for
the year due to seasonal market conditions with some of our key customers.
That said, we continue to have confidence in our business for the remainder of
our fiscal 2013 and believe our team has demonstrated the ability to identify
and deliver profitable growth over the long term.” Rashleger concluded: “We
are also pleased to report that our building expansion is going as planned and
we look forward to utilizing the space in the coming months. We view the new
addition as an excellent market advantage as it will allow us to approach
prospective customers with larger outsourcing needs with a readily available
site. We are currently anticipating that we will consume one-third of the new
space almost immediately after it is completed, and it is a critical component
of our ability to continue to expand and develop our business.”

The Company also announced today that its Board of Directors has declared a
quarterly dividend of $.04 per share. The dividend will be payable January 31,
2013 to holders of record on January 17, 2013.

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, energy, recreational vehicles, small
engines, marine, bioscience and the defense markets.

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        
                                                                  
                                                 First quarter ended
                                                 November 25,     November 27,
                                                 2012             2011
Net Sales                                        $8,584           $5,987
Cost of products sold                            7,102           5,059     
Gross margin                                     1,482            928
                                                                  
Selling and administrative expense               728              690
Interest and other income                        (1        )      (2        )
Interest and other expense                       81              76        
Earnings from operations
before income taxes                              674              164
Income taxes                                     243             59        
Net earnings                                     $431            $105      
                                                                  
Basic earnings (loss) per share                  $0.15           $0.04     
                                                                  
Diluted earnings (loss) per share                $0.15           $0.04     
                                                                  

Weighted average number of common shares         2,869            2,838
outstanding
                                                                  

Weighted average number of dilutive common       2,948            2,898
shares outstanding


CONDENSED BALANCE SHEETS (Unaudited)
In thousands
                                                 November 25,     November 27,
                                                 2012             2011
Assets:
Total Current Assets                             $10,596          $8,501
Property, Plant, and Equipment, net              10,334           8,335
Intangible Assets, net                           2,368           2,368     
Total Assets                                     $23,298         $19,204   
                                                                  
Liabilities and Shareholders' Equity:
Total current liabilities                        $4,574           $3,440
Long-term debt                                   5,546            4,877
Deferred tax liabilities                         1,213            377
Shareholders' equity                             11,965          10,510    
Total Liabilities and Shareholders' Equity       $23,298         $19,204   


Contact:

WSI Industries, Inc.
Benjamin Rashleger (President & CEO), 763-295-9202
or
Paul D. Sheely (CFO), 763-295-9202