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Form 8-K WSI INDUSTRIES, INC. For: Jun 23

June 24, 2015 9:22 AM EDT

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 23, 2015

 

 

 

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, 6, and 7 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 23, 2015 disclosing material non-public information regarding its results of operations for the third quarter of fiscal year 2015. The Company hereby furnishes the press release, which is attached hereto as Exhibit 99.1.

 

 

Item 8.01     Other Events.

 

On June 23, 2015, the Company’s Board of Directors declared a dividend of $.04 per share payable July 21, 2015 to holders of record on July 7, 2015.

 

Item 9.01     Financial Statements And Exhibits.

 

Exhibit No.

 

Description

99.1

 

Press Release issued by WSI Industries, Inc. on June 23, 2015.

 

 

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 24, 2015

 

For Immediate Release                                                                                                                                                                                                                               EXHIBIT 99.1     

 

WSI Industries Reports Third Quarter Financial Results

 

June 23, 2015—Minneapolis, MN—WSI Industries, Inc. (Nasdaq: WSCI) today reported sales for its fiscal 2015 third quarter ending May 31, 2015 of $12,368,000 versus the prior year amount of $10,702,000 or an increase of 16% over the prior year quarter. Year-to-date sales for the nine months ended May 31, 2015 totaled $34,204,000, an increase of 9% versus $31,385,000 in the prior year.

 

The Company also reported net income of $409,000 or $.14 per diluted share for the fiscal 2015 third quarter compared to $321,000 or $.11 per diluted share in the prior year third quarter or an increase of 27%. Included in the fiscal 2015 third quarter net income was an income tax benefit related to research and development tax credits of $113,000. Year-to-date income was $1,031,000 or $.35 per diluted share versus $924,000 or $.31 per diluted share in the prior year or an increase of 12%.

 

Benjamin Rashleger, president and chief executive officer, commented: “We are pleased to report that our fiscal 2015 third quarter provided both top line sales and bottom line net income growth over the prior year quarter. Our results continue to be driven by our recreational vehicle powersports business which experienced another quarter of year over year growth with revenues expanding by 24%. Our aerospace and other market segments also experienced a sales increase with revenues growing by 17% over the prior year’s quarter.” Rashleger continued: “Our energy business continued to soften with sales down quarterly year over year. With the price of oil remaining at unusually low levels, our customers continue to see a very weak demand for their products, which in turn eliminates their need to outsource their manufacturing requirements. This sales decrease created underutilized capacity which contributed to a lower gross margin level than the prior year quarter. The lack of energy business will continue to negatively impact our sales, capital utilization, and margins, and it will continue to do so until the energy market has stabilized and investment returns.” Rashleger concluded: “These industry cycles further reinforce our priority of expanding our business development efforts, with an intentional focus on diversification into other industries and customers. We are pleased with the level and quality of our quoting activity, and our optimism for our future business and potential remains high.”

 

The Company also announced today that its Board of Directors has declared a quarterly dividend of $.04 per share. The dividend will be payable July 21, 2015 to holders of record on July 7, 2015.

 

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 31,

   

May 25,

   

May 31,

   

May 25,

 
   

2015

   

2014

   

2015

   

2014

 

Net Sales

  $ 12,368     $ 10,702     $ 34,204     $ 31,385  

Cost of products sold

    11,105       9,221       30,218       27,302  

Gross margin

    1,263       1,481       3,986       4,083  
                                 

Selling and administrative expense

    727       883       2,340       2,329  

Interest and other income

    (2 )     (2 )     (4 )     (4 )

Interest and other expense

    89       98       259       314  

Profit from operations before income taxes

    449       502       1391       1444  

Income taxes

    40       181       360       520  

Net earnings

  $ 409     $ 321     $ 1,031     $ 924  
                                 
                                 

Basic income per share

  $ 0.14     $ 0.11     $ 0.35     $ 0.32  
                                 

Diluted income per share

  $ 0.14     $ 0.11     $ 0.35     $ 0.31  
                                 

Weighted average number of common shares

    2,912       2,903       2,909       2,898  
                                 

Weighted average number of diluted shares

    2,964       2,979       2,961       2,961  

 

 

CONDENSED BALANCE SHEETS (Unaudited)

In thousands

 

   

May 31,

   

May 25,

 
   

2015

   

2014

 

Assets:

               

Total Current Assets

  $ 13,696     $ 12,405  

Property, Plant, and Equipment, net

    13,342       13,802  

Intangible Assets

    2,380       2,384  

Total Assets

  $ 29,418     $ 28,591  
                 

Liabilities and Shareholders' Equity:

               

Total current liabilities

  $ 4,750     $ 4,981  

Long-term debt

    8,723       8,917  

Deferred tax liabilities

    1,960       1,826  

Shareholders' equity

    13,985       12,867  

Total Liabilities and Shareholders' Equity

  $ 29,418     $ 28,591  

 

 

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

In thousands

 

   

First nine months ended

 
   

May 31,

   

May 25,

 
   

2015

   

2014

 
                 

Cash flows from operating activities (1)

  $ 1,882     $ 3,614  

Cash used in investing activities

    (127 )     (190 )

Cash used in financing activities

    (1,626 )     (1,791 )

Net increase in cash and cash equivalents

    129       1,633  
                 

Cash and cash equivalents at beginning of period

    3,233       1,906  
                 

Cash and cash equivalents at end of period

  $ 3,362     $ 3,539  

 

(1)

Cash flows from operating activities includes non-cash adjustments for depreciation, deferred taxes and stock option compensation expense of $1,642 and $2,382 at May 31, 2015 and May 25, 2014, respectively.



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