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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. )*
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WSI Industries, Inc.
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(Name of Issuer)
Common Stock, par value $0.10 per share
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(Title of Class of Securities)
939704-10-2
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(CUSIP Number)
Robert T. Montague
Robins, Kaplan, Miller & Ciresi L.L.P.
800 LaSalle Avenue, Suite 2800
Minneapolis, MN 55402
612-349-8500
(Name, Address and Telephone Number of Person Authorized
to receive Notices and Communications)
October 18, 2002
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition that is the subject of this Schedule 13D, and is filing
this schedule because of Sections 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g),
check the following box. / /
Note: Schedules filed in paper format shall include a signed original
and five copies of the schedule, including all exhibits. See Section
240.13d-7 for other parties to whom copies are to be sent.
*The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which
would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).
PERSONS WHO RESPOND TO THE COLLECTION OF INFORMATION CONTAINED IN THIS FORM ARE
NOT REQUIRED TO RESPOND UNLESS THE FORM DISPLAYS A CURRENTLY VALID
OMB CONTROL NUMBER.
SEC 1746 (03-00)
CUSIP NO. 939704-10-2
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
Michael N. Taglich
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [X]
---------------------------------------------------------------------
(b) [ ]
---------------------------------------------------------------------
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (See Instructions)
PF and WC
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) [ ]
N/A
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
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7 SOLE VOTING POWER
NUMBER OF
94,050
SHARES -----------------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
39,205
OWNED BY EACH -----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
REPORTING
94,050
PERSON -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
39,205
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
133,255 shares (1)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (See Instructions) [ ]
N/A
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.4%(2)
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14 TYPE OF REPORTING PERSON (See Instructions)
IN
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2
CUSIP NO. 939704-10-2
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
Robert F. Taglich
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [X]
---------------------------------------------------------------------
(b) [ ]
---------------------------------------------------------------------
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (See Instructions)
PF and WC
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) [ ]
N/A
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
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7 SOLE VOTING POWER
NUMBER OF
72,050
SHARES -----------------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
39,205
OWNED BY EACH -----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
REPORTING
72,050
PERSON -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
39,205
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
111,255 shares (1)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (See Instructions) [ ]
N/A
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.5%(2)
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
IN
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3
CUSIP NO. 939704-10-2
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
B. Kent Garlinghouse
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [X]
---------------------------------------------------------------------
(b) [ ]
---------------------------------------------------------------------
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (See Instructions)
PF
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) [ ]
N/A
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
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7 SOLE VOTING POWER
NUMBER OF
102,585
SHARES -----------------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
0
OWNED BY EACH -----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
REPORTING
102,585
PERSON -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
102,585 shares (1)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (See Instructions) [ ]
N/A
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.2%(2)
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14 TYPE OF REPORTING PERSON (See Instructions)
IN
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4
CUSIP NO. 939704-10-2
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
Denis Fortin
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [X]
---------------------------------------------------------------------
(b) [ ]
---------------------------------------------------------------------
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (See Instructions)
PF
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) [ ]
N/A
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
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7 SOLE VOTING POWER
NUMBER OF
30,000
SHARES -----------------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
0
OWNED BY EACH -----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
REPORTING
30,000
PERSON -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
30,000 shares (1)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (See Instructions) [ ]
N/A
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.2%(2)
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
IN
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5
CUSIP NO. 939704-10-2
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
John R. Wiencek
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [X]
---------------------------------------------------------------------
(b) [ ]
---------------------------------------------------------------------
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (See Instructions)
PF
--------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) [ ]
N/A
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
1,300
SHARES -----------------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
0
OWNED BY EACH -----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
REPORTING
1,300
PERSON -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,300 shares (1)
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (See Instructions) [ ]
N/A
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.1%(2)
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
IN
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6
(1) Each of the reporting persons disclaims beneficial ownership of all shares
of common stock of WSI Industries, Inc., except for the shares, if any, such
reporting person holds of record. The filing of this Schedule 13D shall not be
construed as an admission that any reporting person is the beneficial owner of
any securities covered by this Schedule 13D.
(2) Based on 2,465,229 shares of common stock of WSI Industries, Inc.
outstanding on June 30, 2002, as represented by WSI Industries, Inc. in its most
recent Quarterly Report on Form 10-Q for the period ended May 26, 2002.
ITEM 1. SECURITY AND ISSUER
This statement on Schedule 13D (the "13D") is filed with respect to the
issued and outstanding shares of common stock, $0.10 par value (the "Common
Stock"), of WSI Industries, Inc., a Minnesota corporation (the "Issuer"). The
principal executive offices of the Issuer are located at 18151 Territorial Road,
Osseo, Minnesota 55369.
ITEM 2. IDENTITY AND BACKGROUND
(a) This Schedule 13D is filed by Michael N. Taglich ("MTaglich"),
Robert F. Taglich ("RTaglich"), B. Kent Garlinghouse ("Garlinghouse"), Dennis
Fortin ("Fortin") and John R. Wiencek ("Wiencek" and, together with MTaglich,
RTaglich, Garlinghouse and Fortin, the "Shareholders").
(b) The business address of MTaglich and RTaglich is 1370 Avenue of the
Americas, 31st Floor, New York, New York 10019. The business address of
Garlinghouse is 3601 SW 29th Street, Topeka, Kansas 66614-2074. The business
address of Fortin is 30 Forest Parkway, Shelton, Connecticut 06484-6122 and the
business address of Wiencek is 60 East 42nd Street, New York, New York 10165.
(c) MTaglich and RTaglich are partners in the brokerage firm, Taglich
Brothers, Inc. Garlinghouse is the Chief Executive Officer of the manufacturing
firm, M-C Industries, Inc. Fortin is the President and owner of Preferred Tool &
Die, Inc. Wiencek is the Chief Operating Officer of the registered investment
adviser firm, Daruma Asset Management, Inc. The addresses of the organization
where each Shareholder conducts his business is listed in Item 2(b) above.
(d) During the five years prior to the date hereof, none of the
Shareholders has been convicted in a criminal proceeding (excluding traffic
violations or similar misdemeanors).
(e) During the five years prior to the date hereof, none of the
Shareholders has been a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction, as a result of which such person
was or is subject to a judgment, decree or final order enjoining future
violations of, or prohibiting or mandating activities subject to, federal or
state securities laws or finding any violation with respect to such laws.
(f) Each of the Shareholders is a citizen of the United States of
America.
7
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
Each of the Shareholders acquired the Common Stock for which they have
sole voting power and sole dispositive power through personal funds. The Common
Stock for which MTaglich and RTaglich share voting power and share dispositive
power was acquired with working capital of the Taglich Brothers, Inc. The
Shareholders paid approximately the following amounts for such shares: MTaglich,
$194,000; RTaglich, $134,000; Taglich Brothers, Inc., $71,000; Garlinghouse,
$104,000; Fortin, $68,000; Wiencek $5,000.
ITEM 4. PURPOSE OF TRANSACTION
MTaglich intends to file proxy materials with the Securities and
Exchange Commission in which MTaglich proposes to nominate each of the five
Shareholders to be directors of the Company in opposition to the slate of
directors nominated by the Company. MTaglich intends to solicit proxies from the
Issuer's shareholders in connection with the Company's next annual meeting of
shareholders which, based on information and belief, is scheduled to be held on
or about January 9, 2003. The Shareholders may exercise their rights under the
Minnesota corporate statute to call for a special meeting of shareholders for
the purpose of reconstituting the Issuer's Board of Directors at a later date.
If the Shareholders are elected to the Issuer's Board of Directors, the
Shareholders would obtain control of the Issuer's Board of Directors. If
elected, the Shareholders will promptly perform a comprehensive review of the
Issuer's operations, finances, capital structure and management in order to
commence a course of action to attempt to maximize shareholder value. Although
such review may result in the following, the Shareholders do not have any
present intent to:
a. acquire or dispose of a material amount of the securities of
the Issuer;
b. cause the Issuer to engage in an extraordinary corporate
transaction, such as a merger, reorganization or liquidation,
involving the Issuer or any of its subsidiaries;
c. engage in a sale or transfer of a material amount of assets of
the Issuer or any of its subsidiaries;
d. make any change in the then existing board of directors or
management of the Issuer including any plans or proposals to
change the number or term of directors or to fill any existing
vacancies on the board;
e. materially change the present capitalization or dividend
policy of the Issuer;
f. materially change the Issuer's business or corporate
structure;
g. change the Issuer's charter, bylaws or instruments
corresponding thereto or other actions which may impede the
acquisition of control of the Issuer by any person;
8
h. cause a class of securities of the Issuer to be delisted from
a national securities exchange or to cease to be authorized to
be quoted in an inter-dealer quotation system of a registered
national securities association;
i. cause a class of equity securities of the Issuer to become
eligible for termination of registration pursuant to Section
12(g)(4) of the Act; or
j. any action similar to any of those enumerated above.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
(a) As of October 18, 2002, the Shareholders beneficially owned the
amounts of Common Stock set forth below opposite their name. All shares in the
table below are outstanding shares of Common Stock. The percentage set forth
below represents the percentage of the outstanding shares of Common Stock based
on 2,465,229 shares outstanding on June 30, 2002 as represented by the Issuer in
its most recent Quarterly Report on Form 10-Q for the period ended May 26, 2002.
PERCENT OF OUTSTANDING
SHAREHOLDER SHARES OF COMMON STOCK COMMON STOCK
----------- ---------------------- ----------------------
Michael N. Taglich 133,255 5.4%
Robert F. Taglich 111,255 4.5%
B. Kent Garlinghouse 102,585 4.2%
Denis Fortin 30,000 1.2%
John R. Wiencek 1,300 0.1%
All Shareholders as a group 339,190 13.8%
(b) The information set forth in Items 7 through 11 of the cover pages
hereto is incorporated herein by reference.
(c) In the past sixty days, the only transactions effected by any of
the Shareholders in the class of securities reported on were the following
purchases of Common Stock made by Taglich Brothers, Inc in the public market:
DATE NUMBER OF SHARES PURCHASED PRICE PER SHARE
---- -------------------------- ---------------
09/04/02 500 $1.00
10/07/02 1,605 $1.00
10/14/02 1,000 $1.00
10/17/02 700 $1.00
(d) N/A
(e) N/A
9
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR
RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER
If nominated and elected, the Shareholders have consented to serve as a
director of the Issuer. There are no other contracts, arrangements,
understandings or relationships with respect to the securities of the Issuer.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
1. Joint Filing Agreement, dated as of October 18, 2002, by and
among the Shareholders
2. Shareholders' Consents to serve as a director of the Issuer,
if nominated and elected
10
SIGNATURE
After reasonable inquiry and to the best of its knowledge and belief,
each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Date: October 18, 2002
/s/ Michael N. Taglich
-----------------------------------------
Michael N. Taglich
/s/ Robert F. Taglich
-----------------------------------------
Robert F. Taglich
/s/ B. Kent Garlinghouse
-----------------------------------------
B. Kent Garlinghouse
/s/ Denis Fortin
-----------------------------------------
Denis Fortin
/s/ John Wiencek
-----------------------------------------
John Wiencek
11
JOINT FILING AGREEMENT
The undersigned acknowledge and agree that the foregoing statement on Schedule
13D is filed on behalf of each of the undersigned and that all subsequent
amendments to this statement shall be filed on behalf of each of the undersigned
without the necessity of filing additional joint filing agreements. The
undersigned acknowledge that each shall be responsible for the timely filing of
such amendments, and for the completeness and accuracy of the information
concerning the undersigned contained therein, but shall not be responsible for
the completeness and accuracy of the information concerning the others, except
to the extent that the undersigned knows or has reason to believe that such
information is inaccurate.
This Agreement may be executed in counterparts and each of such counterparts
taken together shall constitute one and the same instrument.
EXECUTED this 18th day of October, 2002.
/s/ Michael N. Taglich
-----------------------------------------
Michael N. Taglich
/s/ Robert F. Taglich
-----------------------------------------
Robert F. Taglich
/s/ B. Kent Garlinghouse
-----------------------------------------
B. Kent Garlinghouse
/s/ Denis Fortin
-----------------------------------------
Denis Fortin
/s/ John Wiencek
-----------------------------------------
John Wiencek
12
The undersigned hereby consents to be nominated to serve as a Director
of WSI, Industries, Inc. If nominated and elected, the undersigned hereby agrees
to serve as a director of WSI Industries, Inc.
Dated: October 9, 2002 /s/ Michael N. Taglich
-----------------------------------------
Signature
Michael N. Taglich
-----------------------------------------
Printed Name
13
The undersigned hereby consents to be nominated to serve as a Director
of WSI, Industries, Inc. If nominated and elected, the undersigned hereby agrees
to serve as a director of WSI Industries, Inc.
Dated: October 10, 2002 /s/ Robert F. Taglich
-----------------------------------------
Signature
Robert F. Taglich
-----------------------------------------
Printed Name
14
The undersigned hereby consents to be nominated to serve as a Director
of WSI, Industries, Inc. If nominated and elected, the undersigned hereby agrees
to serve as a director of WSI Industries, Inc.
Dated: October 14, 2002 /s/ B. Kent Garlinghouse
-----------------------------------------
Signature
B. Kent Garlinghouse
-----------------------------------------
Printed Name
15
The undersigned hereby consents to be nominated to serve as a Director
of WSI, Industries, Inc. If nominated and elected, the undersigned hereby agrees
to serve as a director of WSI Industries, Inc.
Dated: October 18, 2002 /s/ Denis Fortin
-----------------------------------------
Signature
Denis Fortin
-----------------------------------------
Printed Name
16
The undersigned hereby consents to be nominated to serve as a Director
of WSI, Industries, Inc. If nominated and elected, the undersigned hereby agrees
to serve as a director of WSI Industries, Inc.
Dated: October 15, 2002 /s/ John R. Wiencek
-----------------------------------------
Signature
John R. Wiencek
-----------------------------------------
Printed Name
17