Williams Controls, Inc.
News Release Contact: Mike RuskFinancial Controller
For Immediate Release Telephone: (503) 684-8600 WILLIAMS CONTROLS REPORTS SECOND QUARTER 2012 RESULTS AND ANNOUNCES QUARTERLY DIVIDEND
PORTLAND, OR….May 1, 2012….Williams Controls, Inc. (the
"Company") (NYSE Amex: WMCO) today announced financial
results for its second fiscal quarter ended March 31,
2012.
Net sales for the quarter were $16,831,000, up 13.8% from net
sales of $14,786,000 reported in the second quarter of fiscal
2011. The Company reported net income in the second fiscal
quarter of $895,000, or $0.12 per diluted share, compared to
net income of $224,000, or
$0.03 per diluted share, for the corresponding quarter of
fiscal 2011.
Net sales for the first six months of fiscal 2012 increased
$4,005,000, or 14.1%, to
$32,340,000 from $28,335,000 for the comparable period last
year. Net income for the six months ended March 31, 2012 was
$1,908,000, or $0.25 per diluted share, more than double the
net income of $868,000, or $0.12 per diluted share, for the
six months ended March 31, 2011.
In the first six months of fiscal 2012, the financial results
include a reduction in our environmental provision of
$145,000 on an after-tax basis, or $0.02 per diluted share.
For fiscal
2011, the second quarter results include after-tax charges of
approximately $290,000, or $0.04 per diluted share, for costs
related to a potential acquisition that the Company was
pursuing but decided to terminate during due diligence in the
second quarter of fiscal 2011, and settlement of a
long-standing legal matter. For the first six months of
fiscal 2011, those same charges resulted in after-tax charges
of approximately $410,000, or $0.06 per diluted share.
Sales to our NAFTA truck customers lead the sales
improvements in both the second quarter and first six months
of fiscal 2012 with increases of 46% for the second quarter
and 51% for the first six months as markets continued to
improve. Sales to Indian and Japanese customers more than
doubled in the quarter over the same period last year with
new product introductions, including the Company's Light
Commercial Vehicle Pedal. Sales to the Company's European
truck customers remained relatively flat on a quarter over
quarter basis, decreasing 1% but were down 14% year to date,
primarily due to the continued uncertainty and stability in
the European economic environment and ordering patterns by
one customer. World-wide off-road sales comprised 25% of
total sales for the Company in the second quarter of fiscal
2012 and, as a percentage of total sales, increased 23% when
compared to the second quarter of fiscal 2011 and
29% over the first six months of fiscal 2011, primarily due
to new product introductions..
Today the Company also announced its regular quarterly
dividend of $0.12 per share payable on May 24, 2012 to
stockholders of record as of May 17, 2012.
Commenting on the second quarter results Patrick W. Cavanagh,
Williams Controls' President and Chief Executive Officer
stated, "In addition to the continued improvement in our core
NAFTA truck markets, volumes in India are ramping up rapidly
as our new Light Commercial Vehicle pedal is being designed
into new applications. We are also moving aggressively with
our planned localization of the supply base in India, which
we believe will improve the operating performance in that
region over the next six months." He continued, "We have
previously targeted the world-wide off-road market as a
significant growth opportunity and as a result our off-road
business has grown to 25% of our total sales." He concluded,
"Our recently introduced line of joysticks has been well
received by several potential off-road customers and we are
optimistic about the opportunities those products
create."
Williams Controls will hold an investor conference call at
4:15 P.M. Eastern Time on
Tuesday, May 1, 2012 to provide an overview of the second
quarter of fiscal 2012 financial
performance and business highlights. You are invited to
listen to the conference call by dialing
1-888-665-2348 (domestic) or 1-973-200-3386 (international).
Participants should call prior to the start time to allow for
registration. The conference access code is 72985367. An
audio replay will be available by telephone through May 11,
2012. The telephone number to access the replay is
1-855-859-2056 (domestic) and 1-404-537-3406 (international).
The access code will be 72985367.
Williams Controls is a leading global designer and
manufacturer of Electronic Throttle Control Systems ("ETCs")
for the heavy truck, bus and off-road markets. Williams
Controls is headquartered in Portland, Oregon and employs
more than 300 people worldwide at locations in North America,
Europe, and Asia. For more information, visit Williams
Controls' website at www.wmco.com. Information posted
on our website is not incorporated into, and does not
constitute a part of, this release.
The statements included in this news release concerning
predictions of economic performance and management's plans
and objectives constitute forward-looking statements made
pursuant to the safe harbor provisions of Section 21E of the
Securities Exchange Act of
1934, as amended. These forward looking statements are based
on management's assumptions and projections, and are
sometimes identifiable by use of the words, "expect to,"
"plan," "will," "believe" and words of similar predictive
nature. Because management's assumptions and projections are
based on anticipation of future events, you should not place
undue emphasis on forward-looking statements. You should
anticipate that our actual performance may vary from these
projections, and variations may be material and adverse. You
should not rely on forward- looking statements in evaluating
an investment or prospective investment in our stock, and
when reading these statements you should consider the
uncertainties and risks that could cause actual results to
differ materially from the forward-looking statements.
Factors which could cause or
contribute to such differences include, but are not limited
to, factors detailed in the Company's Securities and Exchange
Commission filings. These factors include our ability to
maintain positive relationships with key customers; the
concentration of our sales revenues among a limited number of
large customers; our status as a component manufacturer and
the resulting impact on our revenues of demand for vehicles
and equipment in which our products are installed; the effect
of products liability lawsuits that directly affect us and
that indirectly impact us because of their effect on the
transportation and equipment industries generally; the impact
of foreign currency exchange rates on our gross income; the
impact of federal monetary and trade policies that impact the
market for our products; our ability to comply with U.S. and
foreign laws applicable to our oversees operations; and the
status of our relationships with our employees and organized
labor force. These risks and uncertainties are beyond our
control and, in many cases; we cannot predict the risks and
uncertainties that could cause our actual results to differ
materially from those indicated by the forward-looking
statements. Some of the factors that may cause our actual
results in future periods to differ materially from those
currently expected or desired because of a number of risks
and uncertainties include, but are not limited to, those risk
discussed in the section entitled "Risk Factors" in our
Annual Report on Form 10-K for the fiscal year ended
September 30, 2011.
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Williams Controls, Inc. Unaudited Condensed Consolidated Statements of Operations(Dollars in thousands, except share and per share amounts)
Three months ended 3/31/12 (unaudited) | Three months ended 3/31/11 (unaudited) | Six months ended 3/31/12 (unaudited) | Six months ended 3/31/11 (unaudited) | |
Net sales | $ 16,831 | $ 14,786 | $ 32,340 | $ 28,335 |
Cost of sales | 11,836 | 10,340 | 22,456 | 19,593 |
Gross profit | 4,995 | 4,446 | 9,884 | 8,742 |
Research and development expense | 1,279 | 1,170 | 2,397 | 2,370 |
Selling expense | 723 | 706 | 1,470 | 1,376 |
Administration expense | 1,429 | 2,075 | 2,674 | 3,622 |
Operating income | 1,564 | 495 | 3,343 | 1,374 |
Interest income | (2) | (1) | (3) | (2) |
Interest expense | 40 | 16 | 75 | 25 |
Other (income) expense, net | (11) | 3 | 108 | 41 |
Income before income taxes | 1,537 | 477 | 3,163 | 1,310 |
Income tax expense | 642 | 253 | 1,255 | 442 |
Net income | $ 895 | $ 224 | $ 1,908 | $ 868 |
Earnings per share information: | ||||
Basic - | ||||
Net income per common share | $ 0.12 | $ 0.03 | $ 0.26 | $ 0.12 |
Weighted average shares used in per share calculation - basic | 7,321,315 | 7,293,187 | 7,312,638 | 7,291,638 |
Diluted - | ||||
Net income per common share | $ 0.12 | $ 0.03 | $ 0.25 | $ 0.12 |
Weighted average shares used in per share calculation -diluted | 7,502,045 | 7,465,390 | 7,498,366 | 7,452,047 |
March 31, 2012 (unaudited) | September 30, 2011 (unaudited) | |
Assets | ||
Current Assets: | ||
Cash and cash equivalents | $ 1,281 | $ 1,339 |
Trade accounts receivable, net | 10,913 | 10,561 |
Other accounts receivable | 836 | 944 |
Inventories | 9,225 | 11,334 |
Deferred income taxes | 847 | 847 |
Prepaid expenses and other current assets | 564 | 552 |
Total current assets | 23,666 | 25,577 |
Property, plant and equipment, net | 8,875 | 9,446 |
Deferred income taxes | 3,135 | 3,181 |
Other assets, net | 344 | 337 |
Total assets | $ 36,020 | $ 38,541 |
Liabilities and Stockholders' Equity | ||
Current Liabilities: | ||
Revolving loan facility | $ 1,488 | $ 1,575 |
Accounts payable | 4,322 | 5,599 |
Accrued expenses | 4,367 | 5,536 |
Current portion of employee benefit obligations | 201 | 201 |
Total current liabilities | 10,378 | 12,911 |
Long-term Liabilities: | ||
Employee benefit obligations | 7,488 | 8,069 |
Other long-term liabilities | 131 | 126 |
Stockholders' Equity: | ||
Preferred stock | - | - |
Common stock | 73 | 73 |
Additional paid-in capital | 38,857 | 38,521 |
Accumulated deficit | (10,979) | (11,108) |
Treasury stock | (2,734) | (2,734) |
Accumulated other comprehensive loss | (7,194) | (7,317) |
Total stockholders' equity | 18,023 | 17,435 |
Total liabilities and stockholders' equity | $ 36,020 | $ 38,541 |
distributed by |