SOURCE: Western Power & Equipment Corp.

September 28, 2005 09:00 ET

Western Power & Equipment Reports Record Net Income for Fiscal Year

VANCOUVER, WA -- (MARKET WIRE) -- September 28, 2005 -- Western Power & Equipment Corp. (OTC BB: WPEC), a vertically integrated provider of construction and industrial equipment and building materials, today reported record net income of $2.5 million for its fiscal year ended July 31, 2005, a 30% increase over the prior year. Total revenues were $117.2 million, a 1.5 percent increase from the $115.5 million for the prior fiscal year. For fiscal 2005, the Company had net income per share of $0.25 per share ($0.10 per share diluted) compared to net income per share of $0.19 (basic and diluted) in the prior fiscal year.

Revenues were $31.5 million for its fourth fiscal quarter ended July 31, 2005, a 6 percent decrease from the $33.4 million in revenues for the prior year's fourth quarter. For the fourth fiscal quarter, the Company reported net income of $2.0 million ($0.20 per basic share and $0.08 per diluted share) compared with net income of $2.3 million ($0.22 per basic and diluted share) in the prior year's last quarter.

"We are very happy with the year's results particularly in light of the significant start-up costs we incurred for the mining operation over the past year. In addition, we are pleased that we have been able to continue to grow equipment sales in most of our operating areas," said C. Dean McLain, President and Chief Executive Officer of the Company. "The construction and industrial equipment business has continued its strength into the fourth quarter and surpassed last year's results." McLain added, "As long as the construction economy remains strong, we believe Western's construction and industrial equipment business will show continued growth in both sales and profits."

"We continue to ramp up production in the mining operation and expect to see significant increases in aggregate sales over the next few quarters," stated McLain. "Vulcan is in the process of completing the installation of the asphalt plant on our Queen Creek mine site and we expect to start fulfilling all of Vulcan's requirements for that plant starting in the first quarter of the new fiscal year. During the next fiscal year, we expect the mining operation to add incremental profits to the strong construction and industrial equipment business."

Western returned to profitability in its fiscal year ending July 31, 2003 and now has had three consecutive years of net income growth.

About Western Power & Equipment Corp.

Western Power & Equipment Corp. sells, leases, rents, and services construction and industrial equipment for Case Corporation and over 30 other manufacturers. The Company currently operates 14 construction and industrial equipment distribution facilities in Washington, Oregon, Nevada, California, and Alaska. In addition, the Company, through a wholly-owned subsidiary, owns and operates two mines in Arizona producing cinder and basalt aggregate. Western is publicly traded on the NASDAQ Over The Counter Bulletin Board (OTCBB). For more information, please contact the company at 6407-B N.E. 117th Avenue, Vancouver, WA 98662; telephone, (360) 253-2346; fax, (360) 253-4830; email: webmaster@westernpower.com; or visit the company's web site http://www.wpec.com.

Cautionary Note Regarding Forward-Looking Statements

Information contained herein relating to projected revenues, growth, income, potential costs savings, and future results and events constitute forward-looking statements. Actual results may differ materially from the forward-looking statements because of a number of risks and uncertainties, including but not limited to fluctuation in the construction and industrial sectors and general economic cycles; the success of the Company's entry into new markets; the success of the Company's operation of the acquired business; industry conditions and competitors; competitive pricing; the Company's relationship with suppliers; relations with the Company's employees; the Company's ability to manage its operating costs and to integrate the acquired businesses in an effective manner; the continued availability of financing; governmental regulations and environmental matters; and risks associated with regional, national, and world economies. Any forward-looking statements should be considered in light of these factors.

Contact Information

  • Press and Investor inquiries:
    Mark J. Wright
    Vice President & Chief Financial Officer
    Western Power & Equipment Corp.
    (360) 253-2346
    E-mail: Email Contact

    Richard Cooper
    Strategic Growth International, Inc.
    (212) 838-1444
    E-mail: rcooper@sgi-ir-com