EX-99.01 2 woodhead060474_ex99-01.htm PRESS RELEASE OF REGISTRANT DATED: 1-27-2006 Woodhead Industries, Inc. Exhibit 99.01 to Form 8-K, Dated: January 27, 2006

Exhibit 99.01

Woodhead Industries Reports Fiscal First Quarter Results
10% Revenue Growth

DEERFIELD, IL – January 27, 2006 – 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®, BradPower™, BradControl™, SST™, Daniel Woodhead®, mPm®, applicom®, Aero-Motive® and RJ-Lnxx®. 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.

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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