WDHD Woodhead Industries (MM)

Woodhead Industries, Inc., (NASDAQ:WDHD) today announced financial results for its fiscal first quarter ended December 31, 2005. The company reported first quarter revenue of $53.4 million, up $4.8 million, or 9.8%, compared to the same period last year. Income from operations totaled $3.6 million, up from $0.2 million during the first quarter of 2005. Net income was $2.2 million, or $0.18 per share for the 2006 first quarter, compared to net income of $1.2 million, or $0.10 per share for the same period in 2005. The previously announced litigation settlement contributed $1.6 million to revenue and $0.07 to earnings per share during the quarter, while foreign exchange negatively impacted the year-over-year revenue comparison by $1.8 million. Both items are included in the Connectivity segment. Philippe Lemaitre, Woodhead Industries' Chairman and Chief Executive Officer, commented, "We are pleased to report a solid start to our 2006 fiscal year. Revenue from our North American Connectivity business was up 22% (14% without the legal settlement), and we realized significant improvement in our European markets. In addition to our performance on the revenue line, we are diligently managing costs, as evidenced by flat operating expenses on a year-over-year basis." In the Connectivity segment, sales were $40.4 million, up 9.5% from $36.9 million in 2005. Income from operations totaled $1.7 million, compared to $0.1 million last year. Operating margins in this segment improved substantially as a result of higher volume, improved utilization and the legal settlement, which added $0.6 million to operating profit during the quarter. Electrical segment revenue increased 10.8% to $13.1 million, as compared to $11.8 million last year. Income from operations was $1.2 million, up from $0.3 million during the same period last year. The sizeable increase in profitability is primarily attributable to the higher volume this year and the operating improvements made during the last three quarters of 2005. Backlog grew $1.9 million, or 12% during the first quarter and has grown an additional $2.3 million in January, to $20.5 million. Outlook Lemaitre noted, "Given our current view of the economic and competitive conditions in our markets, we anticipate revenues during the second quarter of $57 - $59 million, and earnings per share of $0.18 - $0.21. For the full year, we anticipate revenues of $227 - $231 million, and earnings per share of $0.79 - $0.85." This press release contains statements that are forward-looking. These statements are based on current expectations that are subject to risks and uncertainties. In particular, such risks include future actions, prospective products, future performance or results of current or anticipated products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, general economic and business conditions, competition, and other issues discussed in our Form 10-K and other SEC filings. Conference Call Woodhead Industries, Inc., will host a conference call today, January 27, 2006, at 11:00 am Eastern Time to discuss performance and financial results for the fiscal first quarter. To access a live internet webcast of the conference call, visit the Company's website at www.woodhead.com and select the webcast icon. The dial-in phone number is 800-967-7134 or 719-457-2625. The Access code is 3640380. A replay of the conference call will be archived and available on the Company's website following the live event. About Woodhead Industries, Inc. Woodhead Industries (NASDAQ:WDHD) develops, manufactures and markets network and electrical infrastructure products engineered for performance in harsh, demanding, and hazardous industrial environments. Woodhead is known in the global industrial market by its recognized brands which include Brad Harrison(R), BradPower(TM), BradControl(TM), SST(TM), Daniel Woodhead(R), mPm(R), applicom(R), Aero-Motive(R) and RJ-Lnxx(R). Our expertise extends from mechanical, electrical, and electronics to communication software products and technologies. Woodhead operates from 21 locations in 10 countries spanning North America, Europe and Asia/Pacific. For further information, contact: Robert Fisher, Vice President, Finance and CFO, 847-317-2400, e-mail: rfisher@woodhead.com. (Tables to Follow) -0- *T WOODHEAD INDUSTRIES, INC. Consolidated Balance Sheet (Amounts in thousands) ------------------------ Assets 12/31/2005 10/1/2005 ------------------------ Current Assets Cash and short-term investments $17,080 $13,887 Accounts receivable 36,109 39,040 Inventories 21,512 21,173 Prepaid expenses 6,041 5,785 Refundable income taxes 836 2,097 Deferred income taxes 2,516 2,164 ---------------------------------------------------------------------- Total current assets 84,094 84,146 Property, plant and equipment, net 53,172 54,758 Goodwill, net 35,232 35,730 Deferred income taxes 2,526 2,746 Other Assets 1,010 1,000 ---------------------------------------------------------------------- Total Assets $176,034 $178,380 ---------------------------------------------------------------------- Liabilities and Stockholders' Investment Current Liabilities Accounts payable $9,320 $11,080 Accrued expenses 11,556 11,531 Income taxes payable 737 1,053 Current portion of long-term debt 5,700 5,700 ---------------------------------------------------------------------- Total current liabilities 27,313 29,364 Long-term debt 19,500 19,500 Deferred income taxes 4,618 4,698 Other liabilities 3,900 4,139 ---------------------------------------------------------------------- Total Liabilities 55,331 57,701 Stockholders' investment: Common stock at par (shares issued: 12,380 at 12/31/05, 12,260 at 10/1/05) 12,172 12,260 Additional paid-in capital 21,572 21,596 Deferred stock compensation - (397) Accumulated other comprehensive income 3,475 4,726 Retained earnings 83,484 82,494 ---------------------------------------------------------------------- Total stockholders' investment 120,703 120,679 ---------------------------------------------------------------------- Total Liabilities and Stockholders' Investment $176,034 $178,380 ---------------------------------------------------------------------- WOODHEAD INDUSTRIES, INC. Consolidated Income Statement (Amounts in thousands, except per share data) Quarter Ended: ---------------------- ---------- 12/31/2005 1/1/2005 % Change ---------------------- ---------- Net Sales $53,439 $48,676 9.8% Cost of Sales 33,283 31,954 4.2% ---------------------- Gross Profit 20,156 16,722 20.5% % of Net Sales 37.7% 34.4% Operating Expenses 16,527 16,496 0.2% % of Net Sales 30.9% 33.9% ---------------------- Income From Operations 3,629 226 % of Net Sales 6.8% 0.5% Other Expenses Interest Expense 304 486 (37.4%) Other (Income)/Expenses, Net (155) (1,818) ---------------------- Other (Income) / Expenses 149 (1,332) Income Before Taxes 3,480 1,558 123.4% % of Net Sales 6.5% 3.2% Provision For Income Taxes 1,264 342 269.6% ---------------------- Net Income $2,216 $1,216 82.2% % of Net Sales 4.1% 2.5% ====================== Earnings per share Diluted $0.18 $0.10 80.0% Weighted-average common shares outstanding Diluted 12,295 12,306 (0.1%) ====================== Dividends Per Share $0.10 $0.10 0.0% ====================== SEGMENT DATA Quarter Ended: ---------------------- ---------- 12/31/2005 1/1/2005 % Change ---------------------- ---------- Net Sales --------- Connectivity $40,377 $36,886 9.5% Electrical 13,062 11,790 10.8% ---------------------- Total $53,439 $48,676 9.8% ====================== Income From Operations ---------------------- Connectivity $1,708 $61 Electrical 1,247 300 Corporate and Other 674 (135) ---------------------- Total $3,629 $226 ====================== *T