Winland Electronics, Inc. Announces Record Third Quarter Earnings
For 2003 FlashResults Winland Electronics Inc. WEX (Numbers in
Thousands, Except Per Share Data) MANKATO, Minn., Oct. 27
/PRNewswire-FirstCall/ -- Winland Electronics, Inc. , a leading
designer and manufacturer of custom electronic control products and
systems announced today its financial results for the three and
nine month periods ended September 30, 2003. Revenues for the third
quarter ended September 30, 2003 increased 13% to $4,580,189 from
$4,038,930 in the comparable prior year period. Gross profits for
the quarter increased 36% to $1,152,085 compared to $847,651 for
the third quarter of 2002, while income from operations increased
284% to $432,789 versus $112,696 in 2002. Net income for the third
quarter also increased significantly to $258,150 compared to
$30,166 in the third quarter of 2002. Further, earnings per fully
diluted share were $.08 versus $.01 per fully diluted share in the
third quarter of 2002, representing the Company's seventh
consecutive quarter of profitability. Revenues for the nine months
ended September 30, 2003 increased 7% to $14,370,370 from
$13,435,655 in the comparable prior year period. Gross profits for
the nine month period were $3,552,725 compared to $3,128,858 for
2002, representing an increase of 14%. Income from operations
increased 27% to $1,284,198 from $1,008,499 in 2002. Net income for
the nine months increased 13% to $750,790 compared to $662,249 in
2002. Further, earnings per share were $.25 per fully diluted share
versus $.22 per fully diluted share in the comparable prior year
period. The balance sheet also strengthened along with the
Company's cash position to $1,454,509 on September 30, 2003 from
$263,304 on September 30, 2002. Further, shareholders' equity
increased 30% to $5,328,138 on September 30, 2003 from $4,102,093
on September 30, 2002. Increases in both revenue and gross profit
margins are due to the blend of the sales to original equipment
manufacturing (OEM) customers and Winland's proprietary products,
which include the environmental security/industrial sensors and DC
motor controls. Net income increases can be attributed to the
Company's increased sales and gross profit margins on a more
profitable sales mix, coupled with the Company's ability to
maintain consistent direct and indirect expenses. In addition,
Winland's ability to maintain a strong balance sheet and lower
overall debt levels has resulted in significant reductions in
interest expense for 2003 compared to 2002 Lorin Krueger, Winland's
CEO, stated, "We are very pleased to announce our 7th consecutive
profitable quarter as we continue to 'build the path toward
diversification and consistent profitability.' We are particularly
proud of our bottom line results for the quarter as we feel it
represents continued improvement and will provide us with momentum
moving forward. Revenues were positively impacted by new sales to
both existing and new customers as our expanded sales force builds
our pipeline of business. We will continue to work on diversifying
our customer base and further integrate Winland's value added
services into the customer's supply chain process. A prime example
of client integration is the announcement of our supplier managed
inventory system for Select Comfort which will allow for a more
rapid response to product demand and reduced cost for both
companies. In addition, it is important to note that we continue
sales of our propriety security product line and are generating
revenue and margin contribution from these sales. Sales of security
products have been steady and Winland holds a large market share in
the small niche of environmental sensors and controls to the
electronic security market. In the coming year, our marketing team
will be addressing expansion plans for this business line." 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
expectations about future operating results, involve a number of
risks and uncertainties such as competition from larger and more
established companies, technological developments, decreases in
market demand, and the company's uncertain ability 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. Various future events or
factors may cause the actual results to vary materially from those
expressed in any forward-looking statements made in this press
release. As a result, actual results may differ materially from any
financial outlooks stated herein. 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.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME Three Months Ended Nine
Months Ended September 30 September 30 2003 2002 2003 2002 Net
Revenues $4,580,189 $4,038,930 $14,370,370 $13,435,655 Cost of
Sales 3,428,104 3,191,279 10,817,645 10,306,797 Gross Profits
1,152,085 847,651 3,552,725 3,128,858 Operating Expenses 719,296
734,955 2,268,527 2,120,359 Operating Income 432,789 112,696
1,284,198 1,008,499 Pretax Income 409,150 52,166 1,185,790 808,249
Federal Income Tax Expense 151,000 22,000 435,000 146,000 Net
Income $258,150 $ 30,166 $750,790 $662,249 Basic Earnings Per Share
$0.09 $0.01 $0.25 $0.22 Diluted Earnings Per Share $0.08 $0.01
$0.25 $0.22 Basic Weighted Average Shares 2,996,046 2,970,627
2,986,653 2,963,871 Diluted Weighted Average Shares 3,069,170
3,045,642 3,056,739 3,013,365 BALANCE SHEET HIGHLIGHTS September
30th September 30th 2003 2002 Cash $1,454,509 $263,304 Total
Current Assets 5,664,089 4,826,775 Net Property and Equipment
3,731,116 4,217,806 Total Assets $9,403,878 $9,045,280 Total
Current Liabilities $2,522,417 $2,567,384 Total Liabilities
4,075,470 4,943,187 Shareholder's Equity $5,328,138 $4,102,093
Total Liabilities and Equity $9,403,878 $9,045,280 DATASOURCE:
Winland Electronics, Inc. CONTACT: Lorin E. Krueger, Chief
Executive Officer of Winland Electronics, Inc., +1-507-625-7231, or
Matthew Hayden of Hayden Communications, +1-760-487-1137 Web site:
http://www.winland.com/
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