THE MICROCAPITALI$T
21 years ago
Wex nails the earnings...strong buy...presently at 2.40........target 5.00:
(COMTEX) B: Winland Electronics, Inc. Announces Record Financial Results
B: Winland Electronics, Inc. Announces Record Financial Results for 2002 -- 4th
Consecutive Quarter of Profitability -- 21% Increase in Quarterly Revenue to
$4.7 Million -- Quarterly Net Income of $416 Thousand or $.14 Per Diluted Share
-- 18% Increase in Revenues to $18.1 Million in 2002 -- Record Net Income of
$1.1 Million for 2002, or $.35 Per Diluted Share -- Generated Almost $2.8
Million in Cash Flow From Operations -- 73% Increase in Cash to Nearly $693
Thousand on December 31, 2002 -- 32
MANKATO, Minn., Feb 24, 2003 /PRNewswire-FirstCall via COMTEX/ --
FlashResults
Winland Electronics, Inc. (Amex: WEX)
(Numbers in Thousands, Except Per Share Data)
4th quarter ended 4th quarter ended
12/31/2002 YTD 12/31/2001 YTD
Sales $4,662 $18,097 $3,844 $15,395
Net Income $416 $1,078 $(106) $(877)
Average Shares 2,973 2,966 2,956 2,954
EPS $.14 $.36 $(.04) $(.30)
Winland Electronics, Inc. (Amex: WEX), a leading designer and manufacturer of
custom electronic control products and systems announced today record financial
results for the year ended December 31, 2002.
Revenues for the three months ended December 31, 2002 increased 21% to
$4,661,811 from $3,843,592 for the same period in the prior year. Gross profits
for the quarter increased 58% to $1,166,256 from $739,504 for the fourth quarter
of 2001. Income from operations increased 378% to $446,190 from $93,275 in 2001.
Net income for the fourth quarter also increased substantially to $415,556, or
$.14 per fully diluted share, versus a loss of $105,796, or ($.04) per fully
diluted share in the fourth quarter of 2001. Fourth quarter net income includes
an annual adjustment for the reinstatement of net deferred tax assets of
$186,000, increasing the net income for 2002 while a deferred tax valuation
allowance of $315,200, increased the net loss for 2001. The income tax (expense)
benefit includes the above adjustments as well as the quarterly income tax
expense.
Revenues for the year ended December 31, 2002 increased 18% to $18,097,466 from
$15,394,754 reported in 2001. Gross Profit increased 65% to $4,295,114, up from
$2,599,509. Operating expenses decreased to $2,840,425 during the 2002 calendar
year from $3,164,297 reported in the year ago period. As a result, operating
income for the 2002 year increased substantially to $1,454,689 from a loss of
$564,788 reported in the year ago period. During 2002, the Company generated
$2,765,275 in cash flow from operations. Net income for the year increased
dramatically to $1,077,805 versus a loss of $876,729 for the prior year period.
Earnings per share for the year also increased significantly to $.35 per diluted
share versus a loss of $.30 per diluted share for 2001.
The balance sheet also strengthened as shareholders' equity increased 32% to
$4,524,157, or $1.48 per diluted share from $3,431,160, or $1.16 per diluted
share in 2001. Further, the Company's cash position increased 73% to $692,700 on
December 31, 2002 from $399,749 on December 31, 2001. Total liabilities
decreased by 30% to $4,457,184 versus $6,383,991 in 2001, including a 15%
reduction in long-term debt, which totaled $2,097,084 on December 31st.
Lorin Krueger, Winland's CEO, stated, "We are extremely pleased to announce
these record results for 2002 as it was the most successful year in our
Company's history. In spite of a difficult economic environment, we were able to
report record profits and have significantly reduced both our short- term and
long-term debt. Further, we finished the year with a strong cash position and
eliminated all money advanced on our short-term lines of credit, which has
strengthened our balance sheet considerably. We are extremely proud to have
achieved profitability in every quarter of 2002, which was the direct result of
substantially increasing our gross profits while decreasing our operating
expenses, including considerable operating and manufacturing efficiencies. We
reached yet another milestone in our relationship with Select Comfort by signing
a three-year manufacturing agreement in August, which is expected to yield
nearly $10 million in revenue in 2003 alone. Other customers also provided
increases in revenue, and our proprietary products in Environmental Sensors and
Security Retail continue to be stable with solid margins.
"We have continued to implement changes and improvements that we believe will
positively impact Winland for years to come. During 2003, we will work
diligently to improve our sales and marketing initiatives and to continue
achieving additional operating efficiencies throughout our organization. We have
begun to build the path toward diversification and consistent profitability.
With these accomplishments we believe we have firmly built a foundation, which
will enable us to meet our future goals."
Winland Electronics, based in Mankato, MN, designs and manufactures custom
electronic control products and systems, as well as proprietary products for the
security/industrial marketplace.
Statements included in this release may constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995. Such
statements, including, but not limited to our expectation with respect to
revenues from Select Comfort in 2003, are subject to risks and uncertainties
which may cause actual results to differ from those anticipated in these forward
looking statements. These risks and uncertainties include, but are not limited
to, (i) Select Comfort may revise or cancel its purchase orders, or delay
acceptance of completed goods, due to changes in demand in its business or for
other reasons; (ii) competitive pressures relating to pricing or technological
advances offered by other manufacturers, (iii) adverse economic conditions
associated with terrorist activities similar to those of September 11, 2001 or
military activities such as the possible war in Iraq, and (iv) limited ability
of the Company to obtain new contracts and accurately estimate net revenues due
to variability in size, scope and duration of projects, and internal issues
which arise with any of the Company's customers. Further information on
potential factors that could affect the company's financial results can be found
in the Company's Reports on Forms 10-K and 10-Q filed with the Securities and
Exchange Commission.
WINLAND ELECTRONICS, INC.
STATEMENTS OF INCOME
For the Quarters and Years Ended December 31, 2002 and 2001
(UNAUDITED) (AUDITED)
Quarters Ended December 31, Years Ended December 31,
2002 2001 2002 2001
Net sales $4,661,811 $3,843,592 $18,097,466 $15,394,754
Cost of sales 3,495,555 3,104,088 13,802,352 12,795,245
Gross profit 1,166,256 739,504 4,295,114 2,599,509
Operating expenses:
General and
administrative 320,081 304,834 1,268,956 1,606,663
Research and
development 182,892 165,485 671,930 840,813
Sales and marketing 217,093 175,910 899,539 716,821
720,066 646,229 2,840,425 3,164,297
Operating income
(loss) 446,190 93,275 1,454,689 (564,788)
Other income (expenses):
Interest expense (45,195) (90,714) (249,515) (482,634)
Other, net 2,561 18,781 6,631 45,093
(42,634) (71,933) (242,884) (437,541)
Income (loss)
before income
taxes 403,556 21,342 1,211,805 (1,002,329)
Income tax (expense)
benefit 12,000 (127,138) (134,000) 125,600
Net income (loss) $415,556 $(105,796) $1,077,805 $(876,729)
Earnings (loss) per
share data:
Basic $0.14 $(0.04) $0.36 $(0.30)
Diluted 0.14 (0.04) 0.35 (0.30)
Weighted-average number
of common shares
outstanding:
Basic 2,972,751 2,955,915 2,966,111 2,954,128
Diluted 3,019,890 2,955,915 3,067,300 2,954,128
BALANCE SHEET HIGHLIGHTS
As of December 31st
2002 2001
Cash $692,700 $399,749
Other Current Assets $4,234,223 $4,710,901
Net Property and Equipment $4,054,418 $4,704,501
Total Assets $8,981,341 $9,815,151
Current Liabilities $2,180,142 $3,742,984
Total Long-Term Liabilities $2,277,042 $2,641,007
Shareholder's Equity $4,524,157 $3,431,160
Total Liabilities and Equity $8,981,341 $9,815,151
SOURCE Winland Electronics, Inc.
CONTACT: Lorin E. Krueger, Chief Executive Officer of Winland
Electronics, Inc., +1-507-625-7231, or Matthew Hayden of Hayd
n
Communications, +1-760-487-1137
URL: http://www.winland.com
http://www.prnewswire.com
Copyright (C) 2003 PR Newswire. All rights reserved.
-0-
KEYWORD: Minnesota
INDUSTRY KEYWORD: CPR
HRD
HTS
SUBJECT CODE: ERN
*** end of story ***
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