EX-99.01 2 woodhead061937_ex99-01.htm PRESS RELEASE OF REGISTRANT DATED APRIL 27, 2006 Woodhead Industries, Inc. Exhibit 99.01 to Form 8-K Dated April 27, 2006

Exhibit 99.01

Woodhead Industries Reports Fiscal Second Quarter Results
Income From Operations Up 57%; Net Income Up 129%

DEERFIELD, IL – April 27, 2006 – Woodhead Industries, Inc., (NASDAQ: WDHD) today announced financial results for its fiscal second quarter ended April 1, 2006. The Company reported second quarter revenue of $59.0 million, up 4.7% (7.3% in constant dollars), compared to the same period last year. Income from operations totaled $4.9 million, up 56.9% from the second quarter of 2005. Net income increased 129.3% to $3.0 million, or $0.25 per diluted share for the 2006 second quarter, compared to net income of $1.3 million, or $0.11 per diluted share for the same period in 2005.

Philippe Lemaitre, Woodhead Industries’ Chairman and Chief Executive Officer, commented, “Our second quarter results provide evidence that our sales and marketing initiatives and cost management efforts are paying off. Sales were at the high end of our guidance and earnings exceeded our expectations. Performance in our Electrical segment was particularly strong, as increased volumes and diligent cost management led to significantly improved profitability. We were also pleased with performance in our North American Connectivity segment, which registered another quarter of solid revenue growth.”

In the Connectivity segment, sales were $43.5 million, up 2.4% (5.9% in constant dollars) from the second quarter of 2005, with foreign exchange negatively impacting the year-over-year comparison. Income from operations totaled $3.0 million, compared to $2.3 million last year. North American Connectivity revenue growth remained strong, increasing 9.1% during the quarter. Connectivity segment operating income improved 32.2% primarily due to higher volume levels and cost control.

Electrical segment revenue increased 11.5% to $15.5 million, as compared to $13.9 million for the second quarter of 2005. Income from operations was $2.8 million, up 79.3% from $1.6 million during the same period last year. The substantial increase in Electrical segment profitability is attributable to higher volumes, operational improvements and cost control.




Outlook
Lemaitre noted, “Our positive outlook for the remainder of the year is tempered by the start-up of a new ERP system in North America. We are being cautious and currently anticipate that revenues during the second half of our 2006 fiscal year will be in a range of $115 to $118 million, with earnings per share of $0.42 to $0.45. This performance would result in full year revenues of $227 to $230 million, and earnings per share of $0.85 to $0.88, which is up from our previous full year earnings guidance of $0.79 to $0.85 as a result of our strong second quarter performance.”

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, business system conversions, 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, April 27, 2006, at 11:00 am Eastern Time to discuss performance and financial results for the fiscal second quarter. The dial-in phone number is 800-967-7184 or 719-457-2633. The Access code is 2109034. To access a live internet webcast of the conference call, visit the Company’s website at www.woodhead.com and select the webcast icon. 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 4/1/2006 10/1/2005


Current Assets            
   Cash and short-term investments   $ 16,276   $ 13,887  
   Accounts receivable    42,303    39,040  
   Inventories    22,750    21,173  
   Prepaid expenses    5,764    5,785  
   Refundable income taxes    366    2,097  
   Deferred income taxes    3,133    2,164  

   Total current assets     90,592    84,146  
 Property, plant and equipment, net    55,340    54,758  
 Goodwill, net    35,993    35,730  
 Deferred income taxes    2,502    2,746  
 Other Assets    942    1,000  

Total Assets    $ 185,369   $ 178,380  

 
 Liabilities and Stockholders’ Investment   
 Current Liabilities  
   Accounts payable   $ 11,336   $ 11,080  
   Accrued expenses    13,979    11,531  
   Income taxes payable    1,725    1,053  
  Current portion of long-term debt    5,700    5,700  

 Total current liabilities     32,740    29,364  
 Long-term debt    19,500    19,500  
 Deferred income taxes    4,958    4,698  
 Other liabilities    3,828    4,139  

 Total Liabilities     61,026    57,701  
 
 Stockholders’ investment:   
   Common stock at par (shares issued: 12,405 at 4/1/06, 12,260 at 10/1/05)    12,218    12,260  
   Additional paid-in capital    22,157    21,596  
   Deferred stock compensation        (397 )
   Accumulated other comprehensive income    4,679    4,726  
   Retained earnings    85,289    82,494  

      Total stockholders’ investment     124,343    120,679  

 Total Liabilities and Stockholders’ Investment    $ 185,369   $ 178,380  




WOODHEAD INDUSTRIES, INC.  Consolidated Income Statement
(Amounts in thousands, except per share data)

Quarter Ended:
Six Months Ended:
4/1/2006 4/2/2005 % Change 4/1/2006 4/2/2005 % Change






Net Sales     $ 59,028   $ 56,393    4.7% $ 112,467   $ 105,069    7.0%
  Cost of Sales    36,704    35,548    3.3%  69,987    67,502    3.7%




Gross Profit     22,324    20,845    7.1%  42,480    37,567    13.1%
  % of Net Sales    37.8%  37.0%      37.8%  35.8%    
 
Operating Expenses     17,466    17,748    (1.6% )  33,993    34,244    (0.7% )
  % of Net Sales    29.6%  31.5%      30.2%  32.6%    




Income From Operations     4,858    3,097    56.9%  8,487    3,323    155.4%
  % of Net Sales    8.2%  5.5%      7.5%  3.2%    
 
Other Expenses   
  Interest Expense    223    477    (53.2% )  527    963    (45.3% )
  Other (Income)/Expenses, Net    (147 )  515        (302 )  (1,303 )    




Other (Income) / Expenses     76    992        225    (340 )    




Income Before Taxes     4,782    2,105    127.2%  8,262    3,663    125.6%
  % of Net Sales    8.1%  3.7%      7.3%  3.5%    
 
Provision For Income Taxes     1,739    778    123.5%  3,003    1,120    168.1%




Net Income    $ 3,043   $ 1,327    129.3% $ 5,259   $ 2,543    106.8%
  % of Net Sales    5.2%  2.4%      4.7%  2.4%    




 
Earnings per share   
  Diluted   $ 0.25   $ 0.11    127.3% $ 0.43   $ 0.21    104.8%
 
Weighted-average common shares outstanding   
  Diluted    12,383    12,287    0.8%  12,333    12,284    0.4%




Dividends Per Share    $ 0.10   $ 0.10    0.0% $ 0.20   $ 0.20    0.0%






SEGMENT DATA Quarter Ended:
Six Months Ended:
4/1/2006 4/2/2005 % Change 4/1/2006 4/2/2005 % Change






Net Sales                
Connectivity    $ 43,527   $ 42,495    2.4% $ 83,904   $ 79,381    5.7%
Electrical    15,501    13,898    11.5%  28,563    25,688    11.2%




Total   $ 59,028   $ 56,393    4.7% $ 112,467   $ 105,069    7.0%




 
Income From Operations   
Connectivity   $ 3,020   $ 2,284    32.2% $ 4,728   $ 2,345    101.6%
Electrical    2,813    1,569    79.3%  4,060    1,869    117.2%
Corporate and Other    (975 )  (756 )      (301 )  (891 )    




Total   $ 4,858   $ 3,097    56.9% $ 8,487   $ 3,323    155.4%