WSI Industries Reports Profitable Fourth Quarter

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.

For additional information:Michael J. Pudil (President & CEO) or Paul D. Sheely (CFO) 763-295-9202

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