EX-99.1 2 c87412exv99w1.htm EXHIBIT 99.1 Exhibit 99.1

Exhibit 99.1

WSI Industries Reports Improved Quarter on Quarter Results

June 24, 2009—Minneapolis, MN—WSI Industries, Inc. (Nasdaq: WSCI) today reported net sales of $4,736,000 for the third quarter of fiscal 2009 ended May 31, 2009, a decrease of 29% as compared to the year-earlier quarter of $6,703,000. The Company posted net income of $12,000 which equated to break-even on a per share basis for the current quarter, compared to $357,000 or $.13 per share in the third quarter of fiscal 2008. Year-to-date sales in fiscal 2009 were down 23% vs. the prior year as sales decreased to $14,773,000 from $19,099,000 a year ago. Year-to-date diluted earnings per share were a loss of $.07 down from the prior year’s income of $.42.

As compared to the prior fiscal 2009 second quarter, the Company’s sales were up 18%. The Company’s bottom line also improved from a loss of $307,000 in the fiscal 2009 second quarter to its net income of $12,000 in this quarter.

Michael J. Pudil, president and chief executive officer, commented: “Our goal in our fiscal 2009 third quarter was to streamline our cost base and return the Company to profitability without affecting our ability to obtain new business. While our net income was slightly above the break-even point, we made a dramatic improvement from our fiscal 2009 second quarter loss of $307,000. In addition, we have continued to expand our search efforts in order to obtain new customers and projects.” Pudil went on to say: “We anticipate that our fiscal 2009 fourth quarter will be similar to our third quarter that just ended. We will continue working to preserve our balance sheet and conserve our cash as we weather the ongoing recession. We believe that the Company is in an excellent position to capitalize on new opportunities when the country’s economy starts to rebound.”

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, aerospace and defense, energy, recreational vehicles, computers, small engines, marine, bioscience and instrumentation.

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

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.

 

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WSI INDUSTRIES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS      (Unaudited)
In thousands, except per share amounts
                                 
    Third quarter ended     Three quarters ended  
    May 31,     May 25,     May 31,     May 25,  
    2009     2008     2009     2008  
Net Sales
   $ 4,736     $ 6,703     $ 14,773     $ 19,099  
Cost of products sold
     4,083       5,498       13,101       15,410  
 
                        
Gross margin
     653       1,205       1,672       3,689  
Selling and administrative expense
     533       597       1,673       1,824  
Interest and other income
     (5 )     (16 )     (14 )     (164 )
Interest and other expense
     106       75       316       219  
 
                        
Profit (loss) from operations before income taxes
     19       549       (303 )     1810  
Income taxes (benefit)
     7       192       (109 )     633  
 
                        
Net earnings (loss)
   $ 12     $ 357       ($194 )   $ 1,177  
 
                        
 
                                
Basic income (loss) per share
   $ 0.00     $ 0.13       ($0.07 )   $ 0.43  
 
                        
 
                                
Diluted income (loss) per share
   $ 0.00     $ 0.13       ($0.07 )   $ 0.42  
 
                        
 
                                
Weighted average number of common shares
     2,793       2,764       2,789       2,741  
 
                                
Weighted average number of diluted shares
     2,793       2,860       2,789       2,811  
CONDENSED BALANCE SHEETS (Unaudited)
In thousands
                 
    May 31,     May 25,  
    2009     2008  
Assets:
                
Total Current Assets
   $ 7,713     $ 7,962  
Property, Plant, and Equipment, net
     7,791       5,731  
Intangible Assets
     3,035       3,051  
 
            
Total Assets
   $ 18,539     $ 16,744  
 
            
 
                
Liabilities and Shareholders’ Equity:
                
Total current liabilities
   $ 3,266     $ 3,806  
Long-term debt
     6,327       4,077  
Shareholders’ equity
     8,946       8,861  
 
            
Total Liabilities and Shareholders’ Equity
   $ 18,539     $ 16,744