Williams Industries Inc. / WMSI

About Williams Industries Inc.

8624 J.D. Reading Dr., Manassas, Va. 20109
www.wmsi.com | 703-335-7800 | Founded: 1960

Industry: Manufacturing | Category: Public Companies

Williams Industries disclosed it was facing a liquidity and business crisis after suffering from operating losses for several years. The company reported an $11.4 million loss for the fiscal year ended July 31 and said it had tapped its available sources of operating cash. Williams borrowed more than $1.6 million from its largest shareholder, company founder Frank E. Williams Jr., and his affiliated entities.
Williams's son, the company's chief executive, Frank E. Williams III, attributed the financial woes largely to soaring steel prices; a decision to acquire a steel-fabrication facility in Alabama that subsequently failed; and the Springfield Interchange project, which proved unprofitable for the firm.
The company tried to address the liquidity crisis by closing the Alabama plant, selling off some properties and equipment, and hiring a management consultant to "take a hard look at the company's strategy."
But in March of this year, the company reported a $268,000 profit for its fiscal second quarter and announced that its bank had extended the repayment of a $4.8 million loan until July 31. Frank E. Williams III said in a statement that the company had completed those projects, including the Springfield Interchange, and that it had fully absorbed the costs of the Alabama plant closing.
He said the company's "incredibly loyal" employees "know, as I do, that the company has weathered tough times before and that it was only a matter of time before we made the necessary course corrections to deal with what are now past problems."

Chairman and CEO: Frank E. Williams III

2005 Financial Data

Revenues: $48,572,000 | Net Income: $-11,374,000
Asssets: $35,536,000 | Earnings Per Share: $-3.12
Total employees: 361 | Local employees: 311