Form 8-K WSI INDUSTRIES, INC. For: Jun 21

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (date of earliest event reported): June 21, 2016

 

	WSI Industries, Inc.
(Exact name of Registrant as Specified in its Charter)

 

	Minnesota
(State Or Other Jurisdiction Of Incorporation)

 

000-00619		41-0691607
(Commission File Number)		(I.R.S. Employer Identification No.)

 

213 Chelsea Road Monticello, MN		55362
(Address Of Principal Executive Offices)		(Zip Code)

 

	(763) 295-9202
Registrant’s Telephone Number, Including Area Code

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

	[  ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
	[  ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
	[  ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
	[  ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

Items under Sections 1, 3, 4, 5, 6, 7 and 8 are not applicable and therefore omitted.

 

Item 2.02 Results of Operations and Financial Condition.

 

WSI Industries, Inc. (the “Company”) issued a press release on June 21, 2016 disclosing material non-public information regarding its results of operations for the third quarter of fiscal year 2016. The Company hereby furnishes the press release, which is attached hereto as Exhibit 99.1.

 

Item 9.01 Financial Statements And Exhibits.

 

Exhibit No.		Description
99.1		Press Release issued by WSI Industries, Inc. on June 21, 2016.

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	WSI INDUSTRIES, INC.
	By:	/s/ Benjamin T. Rashleger
		Benjamin T. Rashleger
		Chief Executive Office & President

 

Date: June 22, 2016

 

 

For Immediate Release

 

WSI Industries Reports Third Quarter Financial Results

 

June 21, 2016—Minneapolis, MN—WSI Industries, Inc. (Nasdaq: WSCI) today reported sales for its fiscal 2016 third quarter ending May 29, 2016 of $8,886,000 versus the prior year amount of $12,368,000. Year-to-date sales for the period ended May 29, 2016 totaled $27,106,000 versus $34,204,000 in the prior year.

 

The Company also reported net income of $78,000 or $.03 per diluted share for the fiscal 2016 third quarter compared to $409,000 or $.14 per diluted share in the prior year third quarter. Year-to-date income was $216,000 or $.07 per diluted share versus $1,031,000 or $.35 per diluted share in the prior year.

 

Benjamin Rashleger, president and chief executive officer, commented: “We continue to feel downward pressure from our customers due to an uncertain economic environment. For a second consecutive quarter we experienced a year-over-year decline in sales from our major customer. With this decrease, and with the elimination of our energy related work which made up a large percentage of our portfolio, our overall sales decreased from the prior year. However, even with these decreases in sales, we were able to remain profitable in the third quarter.” Rashleger continued: “As previously communicated, we are fully committed to our business development strategy, and are making the investments in staffing and infrastructure to generate the necessary results. We are seeing success in securing new customers and programs in aerospace, defense and automotive markets, and we are continuing to build our pipeline of new opportunities. We have confidence in our strategy and team, and believe we will begin to further realize the results of these efforts.” Rashleger concluded: “WSI Industries remains financially strong. We have over $6.0 million in cash on hand and a high working capital balance. We are well positioned with capital to support both organic growth and external acquisition strategies for the Company.”

 

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 vehicles, small engines, bioscience and the defense markets.

 

# # #

 

For additional information:

Benjamin Rashleger (President & 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.

 

 

WSI INDUSTRIES, INC.

 

CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)

In thousands, except per share amounts

 

		Third quarter ended								Three quarters ended
		May 29, 2016				May 31, 2015				May 29, 2016				May 31, 2015
Net Sales		$	8,886			$	12,368			$	27,106			$	34,204
Cost of products sold			7,934				11,105				24,620				30,218
Gross margin			952				1,263				2,486				3,986
Selling and administrative expense			788				727				2,209				2,340
Interest and other income			(16	)			(2	)			(20	)			(4	)
Interest and other expense			76				89				236				259
Income from operations before income taxes			104				449				61				1,391
Income taxes			26				40				(155	)			360
Net income		$	78			$	409			$	216			$	1,031
Basic income per share		$	0.03			$	0.14			$	0.07			$	0.35
Diluted income per share		$	0.03			$	0.14			$	0.07			$	0.35
Weighted average number of common shares			2,920				2,912				2,909				2,909
Weighted average number of diluted shares			2,925				2,964				2,961				2,961

 

 

CONDENSED BALANCE SHEETS (Unaudited)

In thousands

 

		May 29, 2016				May 31, 2015
Assets:
Total Current Assets		$	12,746			$	13,696
Property, Plant, and Equipment, net			11,811				13,342
Intangible Assets			2,376				2,380
Total Assets		$	26,933			$	29,418
Liabilities and Shareholders’ Equity:
Total current liabilities		$	3,811			$	4,750
Long-term debt			7,180				8,723
Deferred tax liabilities			1,951				1,960
Shareholders’ equity			13,991				13,985
Total Liabilities and Shareholders’ Equity		$	26,933			$	29,418

 

 

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)      

In thousands      

 

		Three quarters ended
		May 29, 2016				May 31, 2015
Cash flows from operating activities (1)		$	3,886			$	1,882
Cash used in investing activities			(276	)			(127	)
Cash used in financing activities			(1,381	)			(1,626	)
Net increase in cash and cash equivalents			2,229				129
Cash and cash equivalents at beginning of period			4,150				3,233
Cash and cash equivalents at end of period		$	6,379			$	3,362

 

(1) Cash flows from operating activities includes non-cash adjustments for depreciation, deferred taxes and stock option compensation expense of $1,540 and $1,642 at May 29, 2016 and May 31, 2015, respectively.

 

 

 

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