SOURCE: Williams Controls, Inc.

Williams Controls, Inc.

February 07, 2012 09:30 ET

Williams Controls Reports First Fiscal Quarter 2012 Results and Announces Quarterly Dividend

PORTLAND, OR--(Marketwire - Feb 7, 2012) - Williams Controls, Inc. (the "Company") (NYSE Amex: WMCO) today announced financial results for its first fiscal quarter ended December 31, 2011.

Net sales for the quarter were $15,509,000, up 14.5% from $13,550,000 for the first quarter of fiscal 2011. First quarter sales were down 7.4% from the fourth quarter of fiscal 2011 as the first quarter is typically our seasonally slowest quarter of the year primarily due to fewer shipping days arising from regularly scheduled holiday shutdowns.

Net income for the first fiscal quarter was $1,013,000, or $0.13 per diluted share, an increase of 57% over the 2011 first fiscal quarter to net income of $644,000, or $0.09 per diluted share.

Strong NAFTA truck sales led the sales improvement in the quarter, increasing 58% when compared to the first quarter of fiscal 2011. The expiration of the accelerated depreciation in 2011 combined with improved freight tonnage and continued strong replacement demand led to unexpectedly higher demand for NAFTA trucks in the quarter. Worldwide off-road sales increased 35% in the quarter compared to last year's first fiscal quarter due to higher demand for off-road equipment and strong sales of new products by the Company.

Customer supply chain issues and changes in vehicle product mix negatively impacted sales to European and Asian truck customers in the quarter over quarter comparisons. European truck sales were down 28% quarter over quarter primarily due to the timing of shipments to one customer. Asian truck sales decreased 57% over the prior year quarter primarily due to changes in one Korean customer's product mix that resulted in the use of fewer electronic engines.

Operating income was $1,779,000 in the quarter, a $900,000 increase from the 2011 first fiscal quarter operating income of $879,000. In addition to the impact of the higher sales, we reduced our environmental provision $145,000 on an after-tax basis, or $.02 per fully diluted share during the quarter based on revised standards enacted by the State of Oregon in the first fiscal quarter of 2012.

Today the Company also announced its regular quarterly dividend of $0.12 per share payable on February 28, 2012 to stockholders of record as of February 21, 2012.

Commenting on the first quarter results Patrick W. Cavanagh, Williams Controls' President and Chief Executive Officer, stated, "Our strong NAFTA truck and world-wide off-road sales in the quarter offset some temporary timing issues by European and Asian customers, generating a significant improvement in revenues over last year's first quarter. The European and Asian issues were temporary and have been resolved." He continued, "We continue to focus on new product introductions and during the quarter over one-third of our quarter-over-quarter sales increase was due to new products introduced last year and the first quarter of this year." He concluded, "We are optimistic about our future prospects as our core markets recover, we expect that more vehicles will be converted to electronic fuel injection in China, India, Russia and Turkey, and we intend to continue with the aggressive introduction of new products to our existing customers."

Williams Controls will hold an investor conference call at 10:30 A.M. Eastern Time on Tuesday, February 7, 2012 to provide an overview of the first 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 42515097. An audio replay will be available by telephone through February 17, 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 42515097.

ABOUT WILLIAMS CONTROLS
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.

Williams Controls, Inc.
Unaudited Condensed Consolidated Statements of Operations
(Dollars in thousands, except share and per share amounts)
Three month
period ended
December 31,
2011
(unaudited)
Three month
period ended
December 31,
2010
(unaudited)
Net sales $ 15,509 $ 13,550
Cost of sales 10,620 9,253
Gross profit 4,889 4,297
Research and development expense 1,118 1,200
Selling expense 746 671
Administration expense 1,246 1,547
Operating income 1,779 879
Interest expense, net 34 8
Other expense, net 118 38
Income before income taxes 1,627 833
Income tax expense 614 189
Net income $ 1,013 $ 644
Earnings per share information:
Basic -
Net income per common share $ 0.14 $ 0.09
Weighted average shares used in per share calculation - basic 7,304,057 7,290,122
Diluted -
Net income per common share $ 0.13 $ 0.09
Weighted average shares used in per share calculation - diluted 7,494,174 7,436,184
Williams Controls, Inc.
Unaudited Condensed Consolidated Balance Sheets
(Dollars in thousands)
December 31, 2011
(unaudited)
September 30, 2011
(unaudited)
Assets
Current Assets:
Cash and cash equivalents $ 1,448 $ 1,339
Trade accounts receivable, net 10,398 10,561
Other accounts receivable 835 944
Inventories 10,872 11,334
Deferred income taxes 847 847
Prepaid expenses and other current assets 702 552
Total current assets 25,102 25,577
Property, plant and equipment, net 9,088 9,446
Deferred income taxes 3,192 3,181
Other assets, net 360 337
Total assets $ 37,742 $ 38,541
Liabilities and Stockholders' Equity
Current Liabilities:
Revolving loan facility $ 2,616 $ 1,575
Accounts payable 4,405 5,599
Accrued expenses 4,722 5,536
Current portion of employee benefit obligations 201 201
Total current liabilities 11,944 12,911
Long-term Liabilities:
Employee benefit obligations 7,923 8,069
Other long-term liabilities 129 126
Stockholders' Equity:
Preferred stock - -
Common stock 73 73
Additional paid-in capital 38,708 38,521
Accumulated deficit (10,983 ) (11,108 )
Treasury stock (2,734 ) (2,734 )
Accumulated other comprehensive loss (7,318 ) (7,317 )
Total stockholders' equity 17,746 17,435
Total liabilities and stockholders' equity $ 37,742 $ 38,541

Contact Information

  • Contact:
    Mike Rusk
    Financial Controller
    Telephone: (503) 684-8600