WSCI Wsi Industries Inc. (delisted)

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