WSI Industries Reports Profitable Fourth Quarter

Monday, October 16, 2017 9:00 PM UTC

Minneapolis, MN, Oct. 16, 2017 -- 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.

# # #

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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WSI Industries Reports Profitable Fourth Quarter

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