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WTD Reports Quarterly and Half Year Profit Turnaround

PORTLAND, Ore., Nov. 25 /PRNewswire/ -- WTD Industries, Inc. (Nasdaq/NM: WTDI) reported net income of $3,001,000 or $.21 per share for the quarter ended October 31, 1996, its best operating performance since the third quarter of fiscal 1994 and a turnaround from the net loss of $535,000 or $.10 cents per share for the second quarter last year.

Second quarter net sales were $79.2 million, up 23 percent from the $64.2 million in the comparable period last year.

For the six months ended October 31, 1996, the Company reported net income of $5,095,000 or $.35 per share, compared to a net loss of $2,455,000 or $.33 per share for the same period last year, an improvement in excess of $7,500,000.

Sales were $146.2 million for the six months compared to $103 million in the prior year, up 42 percent.

"We improved profits in our second quarter despite an erosion in lumber prices in October," said WTD president Bruce L. Engel. "We continue to benefit from favorable log cost and availability, although wood chip demand and prices remain weak. It appears that the Pacific Northwest region is once again competitive in the forest products marketplace," continued Mr. Engel.

"Since the end of our second quarter, lumber prices have been volatile due to speculation that the recently issued Canadian export quotas will reduce the volume of Canadian-produced lumber available for sale in the United States and due to a seasonal slow-down in lumber demand," concluded Mr. Engel.

WTD Industries, Inc. operates facilities in Oregon, Washington and Vermont, producing softwood and hardwood lumber products. WTD's lumber is marketed domestically and internationally under the TreeSource brand name.
 WTD INDUSTRIES, INC.
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (Unaudited)
 (in thousands, except per-share amounts)
 THREE MONTHS SIX MONTHS
 ENDED OCTOBER 31, ENDED OCTOBER 31,
 1996 1995 1996 1995
 NET SALES $79,206 $64,161 146,179 $102,959
 COST OF SALES 69,752 61,057 129,063 99,258
 GROSS PROFIT 9,454 3,104 17,116 3,701


SELLING, GENERAL &
 ADMINISTRATIVE EXPENSES 3,404 2,711 6,487 5,149
 OPERATING INCOME (LOSS) 6,050 393 10,629 (1,448)


OTHER INCOME (EXPENSE)
 INTEREST EXPENSE (1,281) (1,350) (2,578) (2,714)
 MISCELLANEOUS 72 94 167 202
 (1,209) (1,256) (2,411) (2,512)


INCOME (LOSS) BEFORE
 INCOME TAXES 4,841 (863) 8,218 (3,960)


PROVISION FOR INCOME
 TAXES (BENEFIT) 1,840 (328) 3,123 (1,505)
 NET INCOME (LOSS) 3,001 (535) 5,095 (2,455)
 PREFERRED DIVIDENDS 557 595 1,114 1,203


NET INCOME (LOSS) APPLICABLE
 TO COMMON SHAREHOLDERS $2,444 $(1,130) $3,981 $(3,658)


NET INCOME (LOSS) PER COMMON

SHARE
 Primary $0.21 ($0.10) $0.35 ($0.33)
 Fully Diluted $0.21 ($0.10) $0.35 ($0.33)


NUMBER OF COMMON SHARES
 Primary 11,393 11,077 11,310 11,077
 Fully Diluted 11,431 11,077 11,418 11,077
 WTD INDUSTRIES, INC.
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (Unaudited)
 (In thousands)
 OCTOBER 31, APRIL 30,
 1996 1996


ASSETS
 CASH AND CASH EQUIVALENTS $ 3,502 $ 4,576
 ACCOUNTS RECEIVABLE, net 14,180 10,190
 INVENTORIES 23,686 13,891
 INCOME TAX REFUND RECEIVABLE 1,230 2,135
 DEFERRED TAX ASSET 1,105 1,112
 OTHER CURRENT ASSETS 6,860 8,548
 TOTAL CURRENT ASSETS 50,563 40,452
 PROPERTY, PLANT & EQUIPMENT, net 29,469 31,289
 DEFERRED TAX ASSET 506 3,388
 OTHER NON-CURRENT ASSETS 2,096 2,267
 $ 82,634 $ 77,396


LIAB1LITIES AND STOCKHOLDERS' EQUITY
 ACCOUNTS PAYABLE $ 9,593 $ 5,791
 ACCRUED EXPENSES 7,039 6,198
 TIMBER CONTRACTS PAYABLE 54 2,252
 CURRENT MATURITIES OF LONG-TERM DEBT 2,112 1,159
 TOTAL CURRENT LIABILITIES 18,798 15,400
 LONG-TERM DEBT, less current maturities 48,169 50,310
 STOCKHOLDERS' EQUITY 15,667 11,686
 $82,634 $77,396


SOURCE WTD Industries Inc.
 -0- 11/25/96


/CONTACT: Robert J. Riecke or Carol L. Nelson of WTD Industries, 503-246-3440/

(WTDI)

CO: WTD Industries Inc. ST: Oregon IN: PAP SU: ERN

RN-KF -- SFM036 -- 4020 11/25/96 20:04 EST http://www.prnewswire.com
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Date:Nov 25, 1996
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