SOURCE: Western Power & Equipment

June 15, 2005 08:30 ET

Western Power & Equipment Reports Results for the Third Fiscal Quarter

VANCOUVER, WA -- (MARKET WIRE) -- June 15, 2005 -- Western Power & Equipment Corp. (OTC BB: WPEC), a vertically integrated provider of construction and industrial equipment and building materials, today reported revenues for the three-month period ended April 30, 2005, were $28.7 million, an 8.5 percent increase from the $26.4 million for the three-month period ended April 30, 2004. Revenues for the nine-month period ended April 30, 2005, increased 4.4% to $85.8 million compared with $82.1 million for the nine-month period ended April 30, 2004.

"Revenues are up from last year's third quarter and the comparative year-to-date period as a result of an increased activity in our operating areas," said C. Dean McLain, President and Chief Executive Officer of the Company. "The construction and industrial equipment business has continued to gather strength through the third quarter and has showed greatly improved results over the prior year's periods. The construction and industrial equipment business had net income of $1,222,000 for the nine-month year-to-date period compared with a net loss of $356,000 for the prior year nine-month year-to-date period." McLain added, "Going into the fourth fiscal quarter, which has historically been our strongest quarter for the equipment business, we expect the mining operation to start being profitable in the next few months as well as we continue to ramp up its production and sales activities."

Start-up costs for the mining operation resulted in a consolidated net loss for the third quarter of $135,000 ($0.01 per share basic and diluted) compared with a net loss of $702,000 ($0.07 per share basic and diluted) for the prior year's third fiscal quarter. The Company reported nine-month year-to-date net income of $501,000 ($0.05 per share basic and $0.04 per share diluted) compared with a net loss of $356,000 ($0.04 per share basic and diluted) in the prior year's comparative year-to-date period. "Now that we have completed the start-up phase of the mining operation and are done with the associated start-up costs, we are starting to produce significant quantities of aggregate to sell into the booming Phoenix market," stated McLain.

Western returned to profitability in its fiscal year ending July 31, 2003, and continues to be profitable this year. The Company had previously announced that its fiscal year 2004 (ended July 31, 2004) net income was $1.9 million, a 364% increase from the previous fiscal year.

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 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: Email Contact