Earnings Call Excerpt
WMS Industries Inc. (WMS)
F3Q08 Earnings Call
May 7, 2008 8:45 am ET
Executives
William Pfund – Vice President, Investor Relations
Brian R. Gamache – President and Chief Executive Officer
Orrin J. Edidin – Executive Vice President and Chief Operating Officer
Scott D. Schweinfurth – Executive Vice President, Chief Financial Officer and Treasurer
Analysts
Joseph Greff – Bear Stearns
Steven Wieczynski – Stifel Nicolaus & Company, Inc
William Lerner – Deutsche Bank Securities
David Katz – Oppenheimer & Co.
Steven Kent – Goldman Sachs
Steven [Altebrando] - Sidoti and Company
Presentation
Operator
Welcome to the WMS Industries Q3 conference call. (Operator Instructions) It is my pleasure to introduce William Pfund, Vice President, Investor Relations.
William Pfund
Good morning everyone and welcome to WMS Industries’ fiscal 2008 third quarter conference call to discuss the announcements last evening regarding our third quarter results and our board and our board and executive management changes and promotions.
With me this morning are Brian Gamache, President and Chief Executive Officer, Orrin Edidin, Executive Vice President and Chief Operating Officer, and Scott Schweinfurth, Executive Vice President and Chief Financial Officer and Treasurer.
Before we start let me quickly review our Safe Harbor language. Our call today contains forward looking statements concerning the outlook for WMS and future business conditions. These statements are based on currently available information and involves certain risks and uncertainty.
The company’s actual results may differ materially from those anticipated in the forward looking statements depending on the factors described under Item 1, Business Risk Factors in the company’s annual report on form 10-K for the year ending June 30, 2007 and in our more recent reports filed with the SEC. The forward-looking statements made on this call and webcast, and the archived version of the web cast and in any transcripts of this call are only made as of this date, May 7, 2008.
Now, let me turn the call over to Brian.
Brian R. Gamache
Last evening we announced results for our fiscal 2008 third quarter including a 27% increase in total revenues to a record $173 million and a 46% increase in net income to a record $19 million or $0.32 per fully diluted share. Revenues exceeded the high end of our guidance by $7 million, highlighting the strength of WMS’ innovation capability to lead the industry with high performing differentiated products.
In addition we generated a quarterly record of $57 million of operating cash flow and our total cash balance exceeded $112 million at quarter end. In the face of a weak economy and the ongoing challenge of the domestic replacement cycle, these are outstanding accomplishments by almost any standard. These results were not achieved by happenstance, but are the direct results of our forward thinking project and technology planning and continuous improvement in operational execution.
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