We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Insteel Industries Inc | NYSE:IIIN | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.21 | -0.65% | 32.32 | 32.90 | 32.09 | 32.4828 | 47,387 | 00:41:50 |
Insteel Industries Inc. (NYSE: IIIN) (“Insteel” or the “Company”), the nation’s largest manufacturer of steel wire reinforcing products for concrete construction applications, today announced financial results for its third quarter of fiscal 2024 ended June 29, 2024.
Third Quarter 2024 Highlights
Third Quarter 2024 Results
Net earnings for the third quarter of fiscal 2024 decreased to $6.6 million, or $0.34 per share, from $10.6 million, or $0.54 per share, for the same period a year ago. Despite higher shipments, Insteel’s third quarter results were unfavorably impacted by narrower spreads between selling prices and raw material costs relative to the prior year quarter.
Net sales decreased 12.0% to $145.8 million from $165.7 million in the prior year quarter, driven by a 16.3% decrease in average selling prices partially offset by a 5.1% increase in shipments. The decline in net sales was primarily due to lower selling prices, attributed to competitive pricing pressures in welded wire reinforcing (“WWR”) markets and the impact of low-priced PC strand imports. Despite the negative impact of revenues from declining selling prices, we believe improving demand for our reinforcing products validates the view that inventories have largely corrected, which should lead to higher shipments going forward. Ramping up operating hours to accommodate improved demand continues to be challenging, however. On a sequential basis, shipments increased by 20.8% from the second quarter of fiscal 2024, while average selling prices declined by 5.3%. Gross profit decreased to $15.4 million from $20.4 million in the prior year quarter, and gross margin narrowed to 10.6% from 12.3% due to lower spreads between selling prices and raw material costs, partially offset by higher shipments.
Operating activities generated $18.7 million of cash during the quarter compared with $23.8 million in the prior year quarter due to a combination of a reduction in net earnings and the relative change in net working capital. Net working capital provided $7.8 million in the current year, driven by an increase in payables and a reduction in inventories, compared to $9.6 million in the prior year quarter.
Nine Month 2024 Results
Net earnings for the first nine months of fiscal 2024 were $14.6 million, or $0.75 per share, compared with $26.8 million, or $1.37 per share, for the same period a year ago. Earnings for the prior year period benefited from a $3.3 million, or $0.13 per share, gain on the sale of property, plant and equipment.
Net sales decreased to $394.9 million from $491.7 million for the prior year period, driven by a 20.4% decrease in average selling prices partially offset by a 1.0% increase in shipments. Gross profit decreased to $37.4 million from $51.4 million in the same period a year ago, and gross margin narrowed to 9.5% from 10.5% due to lower spreads and higher operating costs partially offset by higher shipments.
Operating activities generated $42.0 million of cash compared with $103.3 million in the prior year period due to a combination of a reduction in net earnings and the relative change in net working capital. Net working capital provided $13.6 million of cash in the current year, driven by the reduction in inventories and receivables, compared to $67.1 million in the prior year period.
Capital Allocation and Liquidity
Capital expenditures for the first nine months of fiscal 2024 decreased to $17.5 million from $26.6 million for the prior year period and are expected to total up to $25.0 million in 2024, primarily focused on expenditures to advance the growth of the engineered structural mesh business and to support cost and productivity improvement initiatives in addition to recurring maintenance needs.
Insteel ended the quarter debt-free with $97.7 million of cash and no borrowings outstanding on its $100.0 million revolving credit facility.
Outlook
“Improving conditions in our markets require that we continue ramping up operating hours at certain WWR plants to manage lead times and maximize shipments. As has been the case for several quarters, it is difficult to attract and retain qualified people in our plants, which is necessary to expand operating hours," commented H.O. Woltz III, Insteel’s President and CEO. “As we move into the fourth fiscal quarter, selling prices and spreads may remain under pressure, particularly where we compete with imported PC strand which is entering the US market at prices lower than the domestic wire rod price. We continue to work with the Administration to resolve certain trade-related anomalies that contribute to this problem. In addition, we remain committed to enhancing our competitive position by leveraging recent capital investments to optimize operations, expand our product line and lower our cash cost of production."
Woltz continued, "Looking ahead to fiscal 2025, we are optimistic about our business outlook. Easing inflation and the potential for lower interest rates will help drive demand in both our commercial and residential end markets, while the infrastructure related portion of our business should begin to benefit from federal spending associated with the Infrastructure Investment and Jobs Act."
Conference Call
Insteel will hold a conference call at 10:00 a.m. ET today to discuss its third quarter financial results. A live webcast of this call can be accessed on Insteel’s website at https://investor.insteel.com and will be archived for replay.
About Insteel
Insteel is the nation’s largest manufacturer of steel wire reinforcing products for concrete construction applications. Insteel manufactures and markets prestressed concrete strand and welded wire reinforcement, including engineered structural mesh (“ESM”), concrete pipe reinforcement and standard welded wire reinforcement. Insteel’s products are sold primarily to manufacturers of concrete products and concrete contractors for use, primarily, in nonresidential construction applications. Headquartered in Mount Airy, North Carolina, Insteel operates ten manufacturing facilities located in the United States.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. When used in this news release, the words “believes,” “anticipates,” “expects,” “estimates,” “appears,” “plans,” “intends,” “may,” “should,” “could” and similar expressions are intended to identify forward-looking statements. Although we believe that our plans, intentions and expectations reflected in or suggested by such forward-looking statements are reasonable, they are subject to several risks and uncertainties, and we can provide no assurances that such plans, intentions or expectations will be implemented or achieved. Many of these risks and uncertainties are discussed in detail in our Annual Report on Form 10-K for the year ended September 30, 2023, and may be updated from time to time in our other filings with the U.S. Securities and Exchange Commission (the “SEC”).
All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. All forward-looking statements speak only to the respective dates on which such statements are made, and we do not undertake any obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events, except as may be required by law.
It is not possible to anticipate and list all risks and uncertainties that may affect our future operations or financial performance; however, they include, but are not limited to, the following: general economic and competitive conditions in the markets in which we operate; changes in the spending levels for nonresidential and residential construction and the impact on demand for our products; changes in the amount and duration of transportation funding provided by federal, state and local governments and the impact on spending for infrastructure construction and demand for our products; the cyclical nature of the steel and building material industries; credit market conditions and the relative availability of financing for us, our customers and the construction industry as a whole; the impact of rising interest rates on the cost of financing for our customers; fluctuations in the cost and availability of our primary raw material, hot-rolled steel wire rod, from domestic and foreign suppliers; competitive pricing pressures and our ability to raise selling prices in order to recover increases in raw material or operating costs; changes in United States or foreign trade policy affecting imports or exports of steel wire rod or our products; unanticipated changes in customer demand, order patterns and inventory levels; the impact of fluctuations in demand and capacity utilization levels on our unit manufacturing costs; our ability to further develop the market for ESM and expand our shipments of ESM; legal, environmental, economic or regulatory developments that significantly impact our business or operating costs; unanticipated plant outages, equipment failures or labor difficulties; and the “Risk Factors” discussed in our Annual Report on Form 10-K for the year ended September 30, 2023, and in other filings made by us with the SEC.
INSTEEL INDUSTRIES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except for per share data)
(Unaudited)
Three Months Ended
Nine Months Ended
June 29,
July 1,
June 29,
July 1,
2024
2023
2024
2023
Net sales
$
145,775
$
165,714
$
394,894
$
491,664
Cost of sales
130,387
145,347
357,521
440,249
Gross profit
15,388
20,367
37,373
51,415
Selling, general and administrative expense
7,879
7,924
22,121
22,556
Other expense (income), net
15
(24
)
2
(3,423
)
Interest expense
19
20
76
67
Interest income
(1,245
)
(1,097
)
(4,051
)
(2,284
)
Earnings before income taxes
8,720
13,544
19,225
34,499
Income taxes
2,155
2,979
4,589
7,710
Net earnings
$
6,565
$
10,565
$
14,636
$
26,789
Net earnings per share:
Basic
$
0.34
$
0.54
$
0.75
$
1.37
Diluted
0.34
0.54
0.75
1.37
Weighted average shares outstanding:
Basic
19,500
19,488
19,502
19,506
Diluted
19,568
19,548
19,579
19,565
Cash dividends declared per share
$
0.03
$
0.03
$
2.59
$
2.09
INSTEEL INDUSTRIES INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
(Unaudited)
June 29,
March 30,
December 30,
September 30,
July 1,
2024
2024
2023
2023
2023
Assets Current assets: Cash and cash equivalents$
97,745
$
83,945
$
85,615
$
125,670
$
91,740
Accounts receivable, net
61,234
55,549
43,354
63,424
66,363
Inventories
89,379
92,530
94,142
103,306
133,126
Other current assets
8,766
7,675
8,706
6,453
6,406
Total current assets
257,124
239,699
231,817
298,853
297,635
Property, plant and equipment, net
127,889
127,534
129,300
120,014
118,788
Intangibles, net
5,528
5,716
5,903
6,090
6,278
Goodwill
9,745
9,745
9,745
9,745
9,745
Other assets
14,329
14,533
13,803
12,811
12,936
Total assets
$
414,615
$
397,227
$
390,568
$
447,513
$
445,382
Liabilities and shareholders' equity Current liabilities: Accounts payable
$
34,827
$
25,409
$
23,852
$
34,346
$
38,075
Accrued expenses
9,888
7,975
9,585
11,809
12,984
Total current liabilities
44,715
33,384
33,437
46,155
51,059
Other liabilities
23,885
23,222
23,536
19,853
19,257
Commitments and contingencies Shareholders' equity: Common stock
19,445
19,467
19,448
19,454
19,433
Additional paid-in capital
85,599
85,332
84,425
83,832
83,150
Retained earnings
241,254
236,105
230,005
278,502
273,460
Accumulated other comprehensive loss
(283
)
(283
)
(283
)
(283
)
(977
)
Total shareholders' equity
346,015
340,621
333,595
381,505
375,066
Total liabilities and shareholders' equity
$
414,615
$
397,227
$
390,568
$
447,513
$
445,382
INSTEEL INDUSTRIES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
June 29,
July 1,
June 29,
July 1,
2024
2023
2024
2023
Cash Flows From Operating Activities: Net earnings$
6,565
$
10,565
$
14,636
$
26,789
Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization
3,837
3,262
11,412
9,835
Amortization of capitalized financing costs
12
13
38
45
Stock-based compensation expense
508
421
1,903
1,534
Deferred income taxes
869
488
3,638
(991
)
Loss (gain) on sale and disposition of property, plant and equipment
26
3
50
(3,321
)
Increase in cash surrender value of life insurance policies over premiums paid
-
(122
)
(1,029
)
(854
)
Net changes in assets and liabilities: Accounts receivable, net
(5,685
)
(489
)
2,190
15,283
Inventories
3,151
3,366
13,927
64,528
Accounts payable and accrued expenses
10,367
6,706
(2,492
)
(12,745
)
Other changes
(912
)
(458
)
(2,295
)
3,223
Total adjustments
12,173
13,190
27,342
76,537
Net cash provided by operating activities
18,738
23,755
41,978
103,326
Cash Flows From Investing Activities: Capital expenditures
(3,235
)
(11,204
)
(17,460
)
(26,604
)
Increase in cash surrender value of life insurance policies
(45
)
(75
)
(443
)
(402
)
Proceeds from sale of property, plant and equipment
1
4
4
9,924
Proceeds from surrender of life insurances policies
20
15
25
358
Net cash used for investing activities
(3,259
)
(11,260
)
(17,874
)
(16,724
)
Cash Flows From Financing Activities: Proceeds from long-term debt
96
113
230
255
Principal payments on long-term debt
(96
)
(113
)
(230
)
(255
)
Cash dividends paid
(584
)
(583
)
(50,359
)
(40,668
)
Payment of employee tax withholdings related to net share transactions
(101
)
(9
)
(262
)
(196
)
Cash received from exercise of stock options
-
97
428
191
Financing costs
-
(13
)
-
(177
)
Repurchases of common stock
(994
)
(403
)
(1,836
)
(2,328
)
Net cash used for financing activities
(1,679
)
(911
)
(52,029
)
(43,178
)
Net increase (decrease) in cash and cash equivalents
13,800
11,584
(27,925
)
43,424
Cash and cash equivalents at beginning of period
83,945
80,156
125,670
48,316
Cash and cash equivalents at end of period
$
97,745
$
91,740
$
97,745
$
91,740
Supplemental Disclosures of Cash Flow Information: Cash paid during the period for: Income taxes, net
$
2,543
$
1,521
$
3,267
$
5,466
Non-cash investing and financing activities: Purchases of property, plant and equipment in accounts payable
2,624
843
2,624
843
Restricted stock units and stock options surrendered for withholding taxes payable
101
9
262
196
IIIN – E
View source version on businesswire.com: https://www.businesswire.com/news/home/20240718483722/en/
Scot Jafroodi Vice President, Chief Financial Officer and Treasurer Insteel Industries Inc. (336) 786-2141
1 Year Insteel Industries Chart |
1 Month Insteel Industries Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions