WSI Industries Reports Second Quarter Results

  WSI Industries Reports Second Quarter Results

Business Wire

MINNEAPOLIS -- March 18, 2013

WSI Industries, Inc. (Nasdaq: WSCI) today reported sales for its fiscal 2013
second quarter ending February 24, 2013 of $7,178,000 versus the prior year
amount of $7,021,000, or an increase of 2% over the prior year quarter.
Year-to-date sales for the six months ended February 24, 2013 totaled
$15,762,000, an increase of 21% versus $13,008,000 in the prior year. The
Company reported net income of $56,000 or $.02 per diluted share for the
fiscal 2013 second quarter which was down from the prior year quarter amount
of $171,000 or $.06 per diluted share. Year-to-date income for the first two
quarters rose with the Company reporting earnings of $487,000 or $.17 per
diluted share versus $276,000 or $.10 per diluted share in the prior year
which represented an increase of 77%.

Benjamin Rashleger, president and chief executive officer, commented: “Our
fiscal 2013 second quarter results reflected a softening in our energy
business that, in combination with the typical seasonality of our second
quarter, led to a lower bottom line net income versus the prior year quarter.
While our sales increased quarter over quarter, our earnings were negatively
impacted mainly by our product mix, and the effect this mix had on our shop
efficiency. From a year-to-date perspective, our net income is still up with
our fiscal 2013 results at $.17 per diluted share versus the prior year of
$.10 per diluted share.” Rashleger continued: “We expect our fiscal third and
fourth quarters to show improvement over our second quarter, however, we
anticipate the full year fiscal 2013 results will fall short of the fiscal
2012 figures. We are optimistic that over time we will see a rebound in our
energy business and that it will remain a key part of our business portfolio.”

Rashleger elaborated: “We remain confident about the core of our business. Our
powersports business continues to grow and also to provide new programs. We
are in the process of purchasing multiple machines to support the growth in
both existing and new programs. In addition, our aerospace business has
increased in fiscal 2013 and as we pursue our AS9100 quality certification
this year, we are hopeful that it will continue to expand. Our efforts at
driving new business remain strong, and the level of open quotes for potential
new programs and customers is excellent.” Rashleger concluded: “Our new 47,000
square foot manufacturing space addition is nearly complete and we have begun
occupying and utilizing the added space. 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
believe we are well positioned to capitalize on further growth opportunities.”

The Company also announced today that its Board of Directors has declared a
quarterly dividend of $.04 per share. The dividend will be payable April 16,
2013 to holders of record on April 2, 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        (Unaudited)
OPERATIONS
In thousands,
except per
share amounts
                                                                    
                    Second quarter ended             First six months ended
                    February 24,     February        February       February
                                     26,             24,            26,
                    2013             2012            2013           2012
Net Sales           $   7,178        $  7,021        $ 15,762       $ 13,008
Cost of                6,406         5,974        13,508       11,033 
products sold
Gross margin            772             1,047          2,254          1,975
                                                                    
Selling and
administrative          605             711            1,332          1,401
expense
Interest and            (1     )        (11    )       (2     )       (13    )
other income
Interest and           81            80           163          156    
other expense
Profit (loss)
from operations         87              267            761            431
before income
taxes
Income taxes           31            96           274          155    
                                                                    
Net earnings        $   56          $  171         $ 487         $ 276    
(loss)
                                                                    
                                                                    
Basic earnings
(loss) per          $   0.02        $  0.06        $ 0.17        $ 0.10   
share
                                                                    
Diluted
earnings (loss)     $   0.02        $  0.06        $ 0.17        $ 0.10   
per share
                                                                    
Weighted
average number          2,884           2,848          2,877          2,843
of common
shares
                                                                    
Weighted
average number
of dilutive             2,939           2,891          2,943          2,894
common shares
outstanding
                                                                    
                                                                    
CONDENSED
BALANCE SHEETS
(Unaudited)
In thousands
                                                                    
                                                     February       February
                                                     24,            26,
                                                     2013           2012
Assets:
Total Current                                        $ 10,629       $ 8,847
Assets
Property,
Plant, and                                             11,899         8,453
Equipment, net
Intangible                                            2,368        2,368  
Assets
Total Assets                                         $ 24,896      $ 19,668 
                                                                    
Liabilities and
Shareholders'
Equity:
Total current                                        $ 6,522        $ 3,808
liabilities
Long-term debt                                         5,179          4,915
Deferred tax                                           1,187          357
liabilities
Shareholders'                                         12,008       10,588 
equity
Total
Liabilities and                                      $ 24,896      $ 19,668 
Shareholders'
Equity
                                                                    

Contact:

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