Minneapolis, MN, Oct. 16, 2017 (GLOBE NEWSWIRE) -- WSI Industries, Inc. (Nasdaq: WSCI) today reported that for the fiscal 2017 fourth quarter, the Company had sales of $8,404,000 versus the prior year’s quarter of $8,110,000 and had net income of $90,000 or $.03 per diluted share as compared to a net loss of $43,000 or $.01 per diluted share in the prior year’s fiscal fourth quarter.
The Company also reported annual sales for the fiscal 2017 year ending August 27, 2017 of $30,641,000 versus the prior year’s sales of $35,216,000. The Company also reported a full year net loss of $814,000, or $.28 per diluted share versus net income of $173,000 or $.06 per diluted share in the prior year.
Michael Pudil, president and chief executive officer, commented: “We are pleased with the progress we have made in the last several months. During the quarter, we experienced higher year over year sales in all of our major business segments: powersports, aerospace and energy. We were able to achieve the improvement in our results by a combination of reduction in overhead costs, improved productivity and an increased level of business.”
Pudil concluded: “We continue to have success in developing new business. With new orders that we have received, we expect that our base of business will continue to diversify in fiscal 2018. Our focus on obtaining new customers and programs continues to show promising results.”
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 automotive, avionics and aerospace, energy, recreational powersports vehicles, small engines, marine, bioscience and the defense market.
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CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
In thousands, except per share amounts
| Quarter ended | Year ended | ||||||||||||||
| August 27, | August 28, | August 27, | August 28, | ||||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||||||
| Net Sales | $8,404 | $8,110 | $30,641 | $35,216 | |||||||||||
| Cost of products sold | 7,503 | 7,672 | 28,195 | 32,292 | |||||||||||
| Gross margin | 901 | 438 | 2,446 | 2,924 | |||||||||||
| Selling and administrative expense | 661 | 803 | 3,346 | 3,012 | |||||||||||
| Interest and other income | (8 | ) | (1 | ) | (19 | ) | (22 | ) | |||||||
| Interest and other expense | 69 | 72 | 423 | 308 | |||||||||||
| Net Income (loss) before taxes | 179 | (436 | ) | (1,304 | ) | (374 | ) | ||||||||
| Income tax expense (benefit) | 89 | (393 | ) | (490 | ) | (547 | ) | ||||||||
| Net income (loss) | $90 | ($43 | ) | ($814 | ) | $173 | |||||||||
| Basic earnings (loss) per share | $0.03 | ($0.01 | ) | ($0.28 | ) | $0.06 | |||||||||
| Diluted earnings (loss) per share | $0.03 | ($0.01 | ) | ($0.28 | ) | $0.06 | |||||||||
| Weighted average number of common shares outstanding | 2,940 | 2,920 | 2,924 | 2,920 | |||||||||||
| Weighted average number of common and dilutive potential common shares | 2,940 | 2,920 | 2,924 | 2,928 | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
In thousands
| August 27, | August 28, | |||||
| 2017 | 2016 | |||||
| Assets: | ||||||
| Total Current Assets | $11,796 | $10,897 | ||||
| Property, Plant, and Equipment, Net | 10,321 | 11,461 | ||||
| Other Assets | 2,368 | 3,625 | ||||
| Total Assets | $24,485 | $25,983 | ||||
| Liabilities and Shareholders' Equity: | ||||||
| Total Current Liabilities | $4,692 | $3,815 | ||||
| Long-Term Debt | 5,442 | 6,786 | ||||
| Deferred Tax Liabilities | 915 | 1,403 | ||||
| Shareholders' Equity | 13,436 | 13,979 | ||||
| Total Liabilities and Shareholders' Equity | $24,485 | $25,983 | ||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
In thousands
| Year Ended | ||||||||
| August 27, | August 28, | |||||||
| 2017 | 2016 | |||||||
| Cash flows from operating activities (1) | $3,129 | $2,978 | ||||||
| Cash used in investing activities | (806 | ) | (378 | ) | ||||
| Cash used in financing activities | (215 | ) | (3,011 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | 2,108 | (411 | ) | |||||
| Cash and cash equivalents at beginning of period | 3,739 | 4,150 | ||||||
| Cash and cash equivalents at end of period | $5,847 | $3,739 | ||||||
| (1) Cash flows from operating activities includes non-cash adjustments for depreciation and stock option compensation expense of $2,109 and $2,001 at August 27, 2017 and August 28, 2016, respectively. |