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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. 1)
WSI Industries, Inc.
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(Name of Issuer)
Common Stock, $0.10 par value
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(Title of Class of Securities)
92932Q-10-2
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(CUSIP Number)
Michael N. Taglich
1370 Avenue of the Americas
31st Floor
New York, NY 10019
631-757-1500
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(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
November 22, 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. 92932Q-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) [ ]
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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
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (See Instructions) [X]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.4%
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14 TYPE OF REPORTING PERSON (See Instructions)
IN
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CUSIP NO. 92932Q-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]
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(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) [ ]
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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
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (See Instructions) [X]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.5%
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14 TYPE OF REPORTING PERSON (See Instructions)
IN
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CUSIP NO. 92932Q-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) [ ]
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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
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
102,585
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (See Instructions) [X]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.2%
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14 TYPE OF REPORTING PERSON (See Instructions)
IN
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CUSIP NO. 92932Q-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) [ ]
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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
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
30,000 shares
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (See Instructions) [X]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.2%
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14 TYPE OF REPORTING PERSON (See Instructions)
IN
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CUSIP NO. 92932Q-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
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) [ ]
--------------------------------------------------------------------------------
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
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (See Instructions) [X]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.1%
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14 TYPE OF REPORTING PERSON (See Instructions)
IN
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Item 1. Security and Issuer.
--------------------
(a) Title of Class of Securities: Common Stock, $0.10
par value
(b) Name of Issuer: WSI Industries, Inc. (the "Company")
(c) Address of Issuer's Principal Executive Offices:
18151 Territorial Road, Osseo, Minnesota 55369.
Item 2. Identity and Background.
------------------------
(a) Name of Person Filing: This Amendment No. 1 to
Schedule 13D is filed by Michael N. Taglich
("MTaglich"), Robert F. Taglich ("RTaglich"), B. Kent
Garlinghouse ("Garlinghouse"), Denis Fortin
("Fortin") and John R. Wiencek ("Wiencek") and,
together with MTaglich, RTaglich, Garlinghouse and
Fortin, the "Shareholders").
(b) Residence or Business Address: 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) Principal Occupation or Employment: 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) Conviction in a criminal proceeding during the last
five years: 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) Subject, during the last five years, to a judgment,
decree or final order enjoining securities laws
violations: 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) Citizenship: Each of the Shareholders is a citizen
of the United States of America.
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.
-----------------------
On November 22, 2002, MTaglich entered into a letter agreement
with WSI Industries, Inc. (the "Company") relating to the
Schedule 13D filed on October 18, 2002 (the "Letter
Agreement."). Pursuant to the Letter Agreement, MTaglich
agreed that until December 31, 2004 neither he nor any of his
affiliates or associates will, without the prior approval of
the Company, directly or indirectly solicit proxies to vote or
seek to influence any person with respect to the voting of the
Company's securities or demand a meeting of shareholders of
the Company. In exchange, the Company agreed to nominate
MTaglich for election as a director at this Annual Meeting of
Shareholders. The Company also agreed that if MTaglich were
elected at this Annual Meeting, the Company will name him as
the Chairman of the Board of Directors. A copy of the Letter
Agreement is attached to this Amendment No. 1 to Schedule 13D
as Exhibit 99.1.
In light of the Letter Agreement, the Shareholders have
determined that it is no longer necessary for such individuals
to act as a member of a "group" with respect to the common
stock of the Company within the meaning of Section 13(d)(3) of
the Securities Exchange Act of 1934, as amended. Attached to
this Amendment No. 1 to Schedule 13D as Exhibit 99.2 is an
agreement among the Reporting Person memorializing their
withdrawal from any "group" with respect to the common stock
of the Company.
Item 5. Interest in Securities of Issuer
--------------------------------
(a) Number and Percentage of Class beneficially owned: As of November
22, 2002, the Shareholders beneficially owned the amounts of
common stock set forth in the table below opposite their name.
Unless otherwise indicated each shareholder has sole voting and
dispositive power over the number of shares of the Company's
common stock indicated.
All percentages set forth in this Amendment No. 1 to Schedule 13D
represent a percentage of the outstanding shares of common stock
based on 2,465,229 shares outstanding as of November 11, 2002 as
reported by the Company in its Annual Report on Form 10-K for the
year ended August 25, 2002.
Each of the Shareholders disclaims beneficial ownership of all
shares of common stock of the Company held by any other person.
The filing of this Amendment No. 1 to Schedule 13D shall not be
construed as an admission that any of the Shareholders is the
beneficial owner of any securities covered by this Amendment No.
1 to Schedule 13D.
Number of Shares
Shareholder of Common Stock
----------- ---------------
Michael N. Taglich 133,255(1)
Robert F. Taglich 111,255(2)
B. Kent Garlinghouse 102,585
Number of Shares
Shareholder of Common Stock
----------- ---------------
Denis Fortin 30,000
John R. Wiencek 1,300
(1) Represents 94,050 shares over which the shareholder has sole
voting and dispositive power and 39,205 shares beneficially owned
by the shareholder through Taglich Brothers, Inc. and over which
the shareholder shares voting and dispositive power with
RTaglich. MTaglich and RTaglich are partners of Taglich Brothers,
Inc., a brokerage firm.
(2) Represents 72,050 shares over which the shareholder has sole
voting and dispositive power and 39,205 shares beneficially owned
by the shareholder through Taglich Brothers, Inc. and over which
the shareholder shares voting and dispositive power with
MTaglich. MTaglich and RTaglich are partners of Taglich Brothers,
Inc., a brokerage firm.
(b) Voting and Dispositive Power: The information set forth in Items 7
through 11 of the cover pages and Item5(a) hereto is incorporated
herein by reference.
(c) Transactions within 60 days: 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:
Price Per Share Date Number Of Shares Purchased
--------------- ---- --------------------------
$1.00 09/04/02 500
$1.00 10/17/02 1,605
$1.00 10/14/02 1,000
$1.00 10/17/02 700
(d) Right to Direct the Receipt of Dividends: Not Applicable.
(e) Last Date on Which Reporting Person Ceased to be a 5% Holder: On
November 22, 2002, the Shareholders entered into an Agreement pursuant
to which each withdrew from any "group" with respect to the common
stock of the Company within the meaning of Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended. Because of this
Agreement, the beneficial ownership of all of the Shareholders (with
the exception of Michael N. Taglich) does not exceed 5% of the
outstanding common stock of the Company after November 22, 2002.
Therefore, each of the Shareholders (with the exception of Michael N.
Taglich) ceases to be a "Reporting Person" as of November 22, 2002.
Item 6. Contracts, Arrangements, Understandings or Relationships with
--------------------------------------------------------------
Respect to Securities of the Issuer.
------------------------------------
The information set forth in Item 5 of this Amendment No. 1 to
Schedule 13D is incorporated herein by reference.
Item 7. Material to be Filed as Exhibits.
---------------------------------
99.1 Agreement dated as of November 22, 2002, by and among
Michael N. Taglich, Robert F. Taglich, B. Kent
Garlinghouse, Denis Fortin and John R. Wiencek.
99.2 Letter Agreement dated November 22, 2002 between WSI
Industries, Inc. and Michael N. Taglich.
Signature
After reasonable inquiry and to the best of his knowledge and belief,
the undersigned certifies that the information set forth in this statement is
true, complete and correct.
Dated: December 3, 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 R. Wiencek
------------------------------------
John R. Wiencek