WSI Industries

WSI Industries, Inc. today reported the securing of a manufacturing and assembly program with a new customer. President and COO Benjamin Rashleger announced that a major defense and aerospace contractor has selected WSI Industries to manufacture a newly developed, complete turn-key assembly for them. Rashleger said: “We are very pleased to announce a multi-year agreement for WSI to provide manufacturing and assembly services for this entirely new program, as well as the beginning of a new relationship for WSI with a highly recognized fortune 100 company.” Rashleger continued: “We believe that the selection of WSI to manufacture the assembly for this exciting new program reflects positively on our manufacturing and assembly capabilities and our ability to provide a complete turn-key product to our customers. It also reinforces and rewards our efforts and focus on growing our business, expanding our market and diversifying our customer base.”

WSI expects to begin shipping assemblies to the customer beginning in the fiscal 2010 fourth quarter ending August 29, 2010.

WSI Industries, Inc. today reported net sales of $4,657,000 for the third quarter of fiscal 2010 ended May 30, 2010, which were comparable to the prior fiscal 2009 third quarter of $4,736,000. The Company’s net income improved significantly to $158,000 or $.06 per diluted share versus the prior year quarter of $12,000 or break-even per diluted share. Year-to-date sales in fiscal 2010 were $12,970,000 as compared to $14,773,000 a year ago. Year-to-date diluted earnings per share for fiscal 2010 were at $.10 as compared to a loss of $.07 in the prior year.

Michael J. Pudil, chief executive officer, commented: “As reflected in our fiscal 2010 third quarter results, we have continued our steady growth out of the recession with our earnings. At $.06 per diluted share, our third quarter net income is at its highest level in 7 quarters.” Pudil continued: “Our ATV and motorcycle markets continue to lead the way with an increase in sales over the prior year quarter. In addition, and for the first time in several quarters, we have seen simultaneous growth in other parts of our core business as we experienced sales increases in our aerospace, defense and biosciences markets over the prior year fiscal third quarter. We anticipate that our fiscal 2010 fourth quarter will show additional improvements.”

President and COO Benjamin Rashleger stated: “We are very pleased with our results for the quarter considering the continued suppression of the manufacturing segment. These results again show WSI’s success in managing our business and costs in parallel with our current business levels. We have begun to see some industries show signs of improvement in their demand, and we will continue to cautiously control our expenses and make the necessary investments and staffing adjustments as we find them necessary to support our customer’s needs.” Rashleger continued: “We are finalizing our branding and marketing strategy, as well as our web site redesign project, and we are optimistic that these tools will provide support to our goal of expanding and diversifying our customer base. We are excited about the opportunities we are working on, and we continue to remain focused on managing our business to provide the highest value of service to our customers – existing and new.”

WSI Industries, Inc. today reported sales for its fiscal 2010 second quarter ending February 28, 2010 of $4,060,000 versus the prior year amount of $4,001,000. Year-to-date sales for the six months ended February 28, 2010 totaled $8,314,000 versus $10,037,000 in the prior year. The Company recorded net income of $28,000 or $.01 per diluted share in the fiscal 2010 second quarter as compared to a net loss of $307,000 or $.11 per diluted share in the prior year quarter. For the year-to-date period ended February 28, 2010 the Company’s net income totaled $132,000 or $.05 per diluted share as opposed to a net loss of $206,000 or $.07 per diluted share in the prior year-to-date period.

Michael J. Pudil, chief executive officer, commented: “We are encouraged by our bottom line results in our fiscal 2010 second quarter. Our net income of $28,000 versus the prior year loss on similar sales volumes can be attributed in part to the steps we have taken over the past year to streamline our cost structure.” Pudil went on to say: “Our overall sales remain mixed. We had some encouraging signs in our fiscal second quarter with our ATV and Motorcycle business which experienced an increase in sales over the prior year quarter, but our total sales were hampered by lower sales from our energy sector.”

Benjamin Rashleger, president and chief operating officer, added: “We continue to remain focused on executing our strategy to expand our business. We recently announced the addition of Lars Ossmo as a business development manager with our sales and marketing group. Mr. Ossmo’s primary responsibility will be to find new sales opportunities for WSI and, with his addition, we now have five individuals on our sales and business management team. We are confident that we have the right balance of people to best allow us to focus on generating new opportunities for WSI, as well as take care of our existing customer base.” Rashleger continued: “It is critical at this time of economic uncertainty to remain diligent in our business development efforts and to promote an environment focused on growth while providing a wide range of tools to our business development managers to aid in their search for new business opportunities. We are making good progress in revamping our branding and marketing communication strategy, and our intention is to develop a brand platform that will put WSI at the forefront of our industry. Included in our marketing and branding strategy is a complete redesign of our website to make it current with the latest technologies, as well as to better communicate and promote our key strengths, values and capabilities. We anticipate our new site will be launched in the next few months.” Rashleger concluded: “Coinciding with our new business objectives is a continued focus on operational excellence. We are consistently evaluating and working to improve our internal systems and processes to insure we are providing a superior value to our customers.”

WSI Industries, Inc. today reported the addition of Lars Ossmo as Business Development Manager. Mr. Ossmo’s position will be focused on the acquisition of new customers and business.

Benjamin Rashleger, president & chief operating officer, commented: “We are very pleased with the addition of Lars Ossmo to WSI Industries. Lars has 35 years of overall sales experience that includes many years of direct experience in the precision machining industry. His addition to our organization will bring valued depth to our sales development efforts.” Rashleger concluded: “The addition of Lars demonstrates WSI’s commitment to locating and securing new business. In addition to bringing in Lars, we have initiated a new marketing and branding effort, and we are confident that we are positioning our organization to best support our focus on generating new business opportunities, even in this challenging economic environment.”

WSI today reported sales for its fiscal 2010 first quarter ending November 29, 2009 of $4,254,000 versus the prior year amount of $6,035,000.   Net income for the fiscal 2010 first quarter was $104,000 or $.04 per diluted share versus $101,000 or $.04 per diluted share in the prior year first quarter.

Michael J. Pudil, chief executive officer, commented:  “We are pleased to report earnings in our first quarter of $.04 per share.  We were successful in generating results similar to the prior year first quarter, but we were able to achieve these results on a significantly lower sales volume.  Our efforts to size the Company’s operations to the current level of business have been positively rewarded.   We have a lean organization that is generating earnings and cash flow.”  Pudil went on to say:  “Even though our bottom line results were positive, we are still experiencing the effects of the nation’s recession on our top line sales.  While there are hints of an economic recovery, this remains a difficult environment from a sales perspective as potential customers have reduced demand for their own products or are bringing their outsourcing requirements back in-house.”  Pudil concluded:  “The picture for the remainder of the fiscal year remains mixed.  Our customers, as well as the nation in general, remain hesitant about their future growth expectations and when the economy will rebound.  During this time, we have increased our efforts on finding new business and we believe we are well positioned for growth given our financial strength and overall business organization.  We are optimistic about the long-term future as our current customers are all leaders in their respective industries and when that is combined with our own financial stability, we believe we have a competitive advantage in our own marketplace.”

WSI Industries, Inc. today reported sales for its fiscal 2010 first quarter ending November 29, 2009 of $4,254,000 versus the prior year amount of $6,035,000. Net income for the fiscal 2010 first quarter was $104,000 or $.04 per diluted share versus $101,000 or $.04 per diluted share in the prior year first quarter.

Michael J. Pudil, chief executive officer, commented: “We are pleased to report earnings in our first quarter of $.04 per share. We were successful in generating results similar to the prior year first quarter, but we were able to achieve these results on a significantly lower sales volume. Our efforts to size the Company’s operations to the current level of business have been positively rewarded. We have a lean organization that is generating earnings and cash flow.” Pudil went on to say: “Even though our bottom line results were positive, we are still experiencing the effects of the nation’s recession on our top line sales. While there are hints of an economic recovery, this remains a difficult environment from a sales perspective as potential customers have reduced demand for their own products or are bringing their outsourcing requirements back in-house.” Pudil concluded: “The picture for the remainder of the fiscal year remains mixed. Our customers, as well as the nation in general, remain hesitant about their future growth expectations and when the economy will rebound. During this time, we have increased our efforts on finding new business and we believe we are well positioned for growth given our financial strength and overall business organization. We are optimistic about the long-term future as our current customers are all leaders in their respective industries and when that is combined with our own financial stability, we believe we have a competitive advantage in our own marketplace.”

WSI Industries, Inc. today reported sales for the fourth quarter ended August 30, 2009, of $3,993,000 versus the prior year fiscal 2008 fourth quarter of $6,783,000. The Company’s net income in the current year’s fourth quarter was $35,000 or $.01 per diluted share as compared to the prior year’s quarter of $301,000 or $.11 per diluted share.

For the full year, sales for fiscal 2009 were $18,766,000, down from the year earlier amount of $25,882,000. For fiscal 2009 the Company experienced a loss of $159,000 or $.06 per diluted share compared to the prior year’s net income of $1,478,000 or $.52 per diluted share.

Michael J. Pudil, chief executive officer, commented: “Like most companies this past year, we have experienced sales declines and the challenge of streamlining costs in order to regain profitability. We believe that WSI had success during the year as shown by our positive cash flow as well as a return to profitability for the second half of the year. As the country emerges out of the recession, we believe WSI is in a strong position with a state of the art facility, new equipment and a strong balance sheet.” Pudil went on to say: “WSI is fortunate that our customers are leaders in their respective industries and that when economic growth commences, they should be poised to capitalize on it.” Pudil concluded: “As announced last week, we are pleased with the addition of Benjamin Rashleger as our new President and Chief Operating Officer. We are looking forward to his fresh leadership and energy as WSI pursues new opportunities in the months and years ahead.”

WSI Industries, Inc. today announced that Benjamin Rashleger has been appointed as President and Chief Operating Officer. Michael Pudil will continue as Chief Executive Officer and Chairman of the Board for the Company. The Company entered into a new employment agreement with Michael Pudil that established a two year transition period that would provide the Company with the opportunity to proactively implement an orderly succession plan.

Michael J. Pudil, Chief Executive Officer, commented: “We are very pleased with the addition of Benjamin Rashleger. Over the past 16 years he has held various positions with Milltronics Manufacturing Company including President & CFO. Over this period, he helped guide the growth and positioned this high-tech machine tool manufacturer for continued success. Looking forward, I have tremendous confidence in Benjamin’s ability to implement the WSI growth strategy that takes full advantage of our strong financial position and established 60 year reputation in the contract machining industry.” In addition to Benjamin Rashleger, Paul Sheely, Chief Financial Officer, will continue to report directly to Michael Pudil.

WSI Industries, Inc. 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.”