Twin Disc Inc (TWIN) SEC Filing 10-K Annual report for the fiscal year ending Friday, June 30, 2017

Exhibit 99.1

		NEWS RELEASE
Corporate Offices: 1328 Racine Street Racine, WI 53403

TWIN DISC, INC. ANNOUNCES FISCAL 2017

FOURTH QUARTER FINANCIAL RESULTS

RACINE, WISCONSIN—August 4, 2017 — Twin Disc, Inc. (NASDAQ: TWIN), today reported financial results for the fiscal 2017 fourth quarter ended June 30, 2017.

Sales for the fiscal 2017 fourth quarter were $53,591,000, compared to $42,646,000 for the same period last year. For the fiscal 2017 full year, sales were $168,182,000, compared to $166,282,000 for fiscal 2016. The increase in 2017 fourth quarter sales was primarily due to improved demand for the Company’s 8500 series transmission systems from North American pressure pumping customers, and higher sales of aftermarket components.

Commenting on the results, John H. Batten, President and Chief Executive Officer, said: “We continued to deliver 8500 series transmission systems for the oil and gas market, which were part of the large orders we received in the third quarter. These deliveries had a favorable impact on fourth quarter sales, profitability, and backlog, and I am pleased to report positive net income and EBITDA in the fourth quarter. We believe trends in our oil and gas markets are improving. The last meaningful investment cycle for pressure pumping capital equipment was six years ago. Since then, the volatility in oil prices has caused many oil services companies to use their equipment longer, and postpone investments. As producers adjust their cost structure to lower oil and gas prices, we anticipate improvements in their profitability will be invested in rebuilds and new equipment for the North American pressure pumping fleet. We are well-positioned to benefit from anticipated improvements in oil and gas demand, as a result of Twin Disc’s high-quality, high-horsepower transmissions systems, ability to efficiently fulfill orders, and service-oriented culture.

Gross profit for the fiscal 2017 fourth quarter was 31.4 percent, 520 basis points higher compared to 26.2 percent for the same period last year. Gross profit for the fiscal 2017 fourth quarter was favorably impacted by higher shipments of oil and gas transmission systems, increased aftermarket volume, improved operating efficiencies, and a global reduction in fixed manufacturing costs. For the fiscal 2017 full year, gross margin was 28.7 percent, compared to 24.4 percent for fiscal 2016.