Welcome!

News Feed Item

Insteel Industries Reports Second Quarter Financial Results

MOUNT AIRY, N.C., April 17, 2014 /PRNewswire/ -- Insteel Industries, Inc. (NasdaqGS: IIIN) today announced financial results for its second quarter ended March 29, 2014.

Corporate Logo - Insteel Industries.

Second Quarter 2014 Results

Net earnings for the second quarter of fiscal 2014 were $3.5 million, or $0.19 per share compared with $3.7 million, or $0.20 per diluted share in the same period a year ago. Net sales increased 10.3% to $91.4 million from $82.9 million in the prior year period. Shipments increased 12.8% year-over-year while average selling prices decreased 2.1%. On a sequential basis, shipments increased 2.0% from the first quarter of fiscal 2014 and average selling prices increased 2.8%.

Insteel's second-quarter results were favorably impacted by the increase in shipments, which was largely offset by lower spreads between selling prices and raw material costs and higher unit conversion costs relative to the same period a year ago. The previously reported fire that damaged a portion of the Company's Gallatin, Tennessee PC strand manufacturing facility on January 21, 2014 did not have a material impact on the results for the quarter. Capacity utilization for the quarter was 51% compared with 46% in the prior year quarter and 47% in the first quarter of fiscal 2014. 

Operating activities provided $1.6 million of cash compared with $2.4 million in the prior year period. Net working capital used $5.3 million of cash compared with $5.2 million in the same period a year ago. Capital expenditures were $1.0 million in both the current and prior year periods.

Six Month 2014 Results

Net earnings for the first six months of fiscal 2014 were $6.3 million, or $0.34 per share compared with $6.1 million, or $0.34 per share in the same period a year ago. Net sales increased 5.9% to $178.7 million from $168.8 million in the prior year period. Shipments increased 9.5% year-over-year while average selling prices decreased 3.3%.

Operating activities provided $8.0 million of cash compared with $26.1 million in the prior year period primarily due to the relative changes in net working capital. Net working capital used $4.8 million of cash while providing $11.9 million in the same period a year ago. Capital expenditures were $3.0 million compared with $3.7 million in the prior year period and are not expected to exceed $12.0 million in fiscal 2014.

Balance Sheet

Insteel ended the quarter debt-free with $19.2 million of cash and cash equivalents, and no borrowings outstanding on its $100.0 million revolving credit facility.

Outlook

"As we move into the second half of the year, we expect to benefit from the usual seasonal factors, which could be amplified this year by pent-up demand resulting from the unusually severe winter weather we have experienced in many of our markets," commented H.O. Woltz III, Insteel's president and CEO. "We are also seeing continued improvement in private nonresidential construction, our primary demand driver, and a heightened degree of optimism that the slow growth recovery may be gaining momentum. We believe that Insteel is ideally positioned to capitalize on a strengthening market environment through the favorable impact of our ongoing process improvement initiatives together with the ramp up of our world-class manufacturing facilities."   

Conference Call

Insteel will hold a conference call at 10:00 a.m. ET today to discuss its second quarter financial results. A live webcast of this call can be accessed on Insteel's website at http://investor.insteel.com/events.cfm and will be archived for replay until the next quarterly conference call.

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 that are used in nonresidential construction. Headquartered in Mount Airy, North Carolina, Insteel operates nine 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," "plans," "intends," "may," "should," "could" and similar expressions are intended to identify forward-looking statements.  Although Insteel believes that its plans, intentions and expectations reflected in or suggested by such forward-looking statements are reasonable, such forward-looking statements are subject to a number of risks and uncertainties, and Insteel can provide no assurances that such plans, intentions or expectations will be achieved. Many of these risks and uncertainties are discussed in detail in Insteel's periodic and other reports and statements that it files with the United States Securities and Exchange Commission (the "SEC"), in particular in its Annual Report on Form 10-K for the year ended September 28, 2013. You should carefully review these risks and uncertainties.

All forward-looking statements attributable to Insteel or persons acting on its 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 Insteel does not undertake and specifically declines 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 Insteel's 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 Insteel operates; credit market conditions and the relative availability of financing for Insteel, its customers and the construction industry as a whole; the continuation of reduced spending for nonresidential and residential construction and the impact on demand for Insteel's 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 Insteel's products; the cyclical nature of the steel and building material industries; fluctuations in the cost and availability of Insteel's primary raw material, hot-rolled steel wire rod, from domestic and foreign suppliers; competitive pricing pressures and Insteel's ability to raise selling prices in order to recover increases in wire rod costs; changes in United States or foreign trade policy affecting imports or exports of steel wire rod or Insteel's products; unanticipated changes in customer demand, order patterns and inventory levels; the impact of weak demand and reduced capacity utilization levels on Insteel's unit manufacturing costs; Insteel's ability to further develop the market for ESM and expand its shipments of ESM; legal, environmental, economic or regulatory developments that significantly impact Insteel's operating costs; unanticipated plant outages, equipment failures or labor difficulties; continued escalation in certain of Insteel's operating costs; the adverse impact of the fire at Insteel's Gallatin, Tennessee PC strand manufacturing facility, including operational interruptions, higher than anticipated repair costs, reduced production levels and lower than anticipated insurance reimbursements; and the other risks and uncertainties discussed in Insteel's Annual Report on Form 10-K for the year ended September 28, 2013 and in other filings made by Insteel with the SEC.

Logo - http://photos.prnewswire.com/prnh/20130104/CL31002LOGO-b

 

INSTEEL INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except for per share data)

(Unaudited)






























Three Months Ended


Six Months Ended



March 29,


March 30,


March 29,


March 30,



2014


2013


2014


2013










Net sales


$       91,436


$       82,873


$     178,654


$     168,760

Cost of sales


79,830


71,822


157,993


149,116

    Gross profit


11,606


11,051


20,661


19,644

Selling, general and administrative expense


5,984


5,245


10,689


10,087

Other expense (income), net


228


(85)


196


(85)

Interest expense


57


53


113


125

Interest income


(1)


(2)


(6)


(2)

    Earnings before income taxes


5,338


5,840


9,669


9,519

Income taxes


1,816


2,126


3,400


3,403

    Net earnings


$         3,522


$         3,714


$         6,269


$         6,116



















Net earnings per share:









    Basic


$           0.19


$           0.21


$           0.34


$           0.34

    Diluted


0.19


0.20


0.34


0.34










Weighted average shares outstanding









    Basic


18,234


17,846


18,212


17,785

    Diluted


18,637


18,286


18,612


18,187










Cash dividends declared per share


$           0.03


$           0.03


$           0.06


$           0.31










 

INSTEEL INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)


















(Unaudited)


(Audited)



March 29,


December 28,


September 28,



2014


2013


2013

Assets







Current assets:







    Cash and cash equivalents


$          19,181


$          18,985


$          15,440

    Accounts receivable, net


41,175


33,754


41,110

    Inventories, net


71,399


70,026


58,793

    Other current assets


5,114


4,804


5,863

        Total current assets


136,869


127,569


121,206

Property, plant and equipment, net


81,169


83,447


83,053

Other assets


8,413


8,379


8,390

        Total assets


$        226,451


$        219,395


$        212,649








Liabilities and shareholders' equity







Current liabilities:







    Accounts payable


$          38,318


$          34,861


$          30,561

    Accrued expenses


6,327


6,696


6,854

        Total current liabilities


44,645


41,557


37,415

Other liabilities


14,486


14,349


14,178

Shareholders' equity:







    Common stock


18,257


18,202


18,185

    Additional paid-in capital


56,469


55,667


55,452

    Retained earnings


94,156


91,182


88,981

    Accumulated other comprehensive loss


(1,562)


(1,562)


(1,562)

        Total shareholders' equity


167,320


163,489


161,056

        Total liabilities and shareholders' equity


$        226,451


$        219,395


$        212,649








 

INSTEEL INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)












Three Months Ended


Six Months Ended



March 29,


March 30,


March 29,


March 30,



2014


2013


2014


2013

Cash Flows From Operating Activities:









  Net earnings


$        3,522


$        3,714


$        6,269


$        6,116

  Adjustments to reconcile net earnings to net cash provided by









    operating activities:









      Depreciation and amortization


2,478


2,407


4,902


4,739

      Amortization of capitalized financing costs


25


25


51


51

      Stock-based compensation expense


820


780


1,228


1,093

      Deferred income taxes


(102)


1,676


217


2,913

      Excess tax benefits from stock-based compensation


(105)


(295)


(191)


(331)

      Loss (gain) on sale of property, plant and equipment


510


(79)


510


(67)

      Gain from life insurance proceeds


-


(45)


-


(45)

      Increase in cash surrender value of life insurance policies over premiums paid


(69)


(321)


(358)


(291)

      Net changes in assets and liabilities:









        Accounts receivable, net


(7,421)


1,661


(65)


8,552

        Inventories


(1,373)


(9,976)


(12,606)


(441)

        Accounts payable and accrued expenses


3,485


3,112


7,872


3,803

        Other changes


(133)


(218)


130


(13)

          Total adjustments


(1,885)


(1,273)


1,690


19,963

            Net cash provided by operating activities


1,637


2,441


7,959


26,079










Cash Flows From Investing Activities:









  Capital expenditures


(980)


(1,028)


(2,964)


(3,724)

  Proceeds from life insurance claims


-


-


-


505

  Increase in cash surrender value of life insurance policies


(170)


(28)


(269)


(26)

  Proceeds from surrender of life insurance policies


85


3


113


3

  Proceeds from fire loss insurance


135


-


135


-

  Proceeds from sale of property, plant and equipment


-


100


-


100

            Net cash used for investing activities


(930)


(953)


(2,985)


(3,142)










Cash Flows From Financing Activities:









  Proceeds from long-term debt


99


891


217


4,385

  Principal payments on long-term debt


(99)


(891)


(217)


(15,860)

  Cash dividends paid


(548)


(541)


(1,094)


(5,510)

  Cash received from exercise of stock options


163


2,194


175


2,257

  Excess tax benefits from stock-based compensation


105


295


191


331

  Payment of employee tax withholdings related to net share transactions


(231)


-


(505)


-

  Other


-


(348)


-


(647)

            Net cash provided by (used for) financing activities


(511)


1,600


(1,233)


(15,044)










Net increase in cash and cash equivalents


196


3,088


3,741


7,893

Cash and cash equivalents at beginning of period


18,985


4,815


15,440


10

Cash and cash equivalents at end of period


$      19,181


$        7,903


$      19,181


$        7,903










Supplemental Disclosures of Cash Flow Information:









  Cash paid during the period for:









    Interest


$             -


$               2


$               2


$             20

    Income taxes, net


2,469


708


2,502


721

  Non-cash investing and financing activities:









    Purchases of property, plant and equipment in accounts payable


375


276


375


276

    Restricted stock units and stock options surrendered for withholding taxes payable


231


267


505


267










 

SOURCE Insteel Industries, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
This is going to be a live demo on a production ready CICD pipeline which automate the deployment of application onto AWS ECS and Fargate. The same pipeline will automate deployment into various environment such as Test, UAT, and Prod. The pipeline will go through various stages such as source, build, test, approval, UAT stage, Prod stage. The demo will utilize only AWS services including AWS CodeCommit, Codebuild, code pipeline, Elastic container service (ECS), ECR, and Fargate.
SAP is the world leader in enterprise applications in terms of software and software-related service revenue. Based on market capitalization, we are the world's third largest independent software manufacturer. Harness the power of your data and accelerate trusted outcome-driven innovation by developing intelligent and live solutions for real-time decisions and actions on a single data copy. Support next-generation transactional and analytical processing with a broad set of advanced analytics - r...
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Despite being the market leader, we recognized the need to transform and reinvent our business at Dynatrace, before someone else disrupted the market. Over the course of three years, we changed everything - our technology, our culture and our brand image. In this session we'll discuss how we navigated through our own innovator's dilemma, and share takeaways from our experience that you can apply to your own organization.
Nutanix has been named "Platinum Sponsor" of CloudEXPO | DevOpsSUMMIT | DXWorldEXPO New York, which will take place November 12-13, 2018 in New York City. Nutanix makes infrastructure invisible, elevating IT to focus on the applications and services that power their business. The Nutanix Enterprise Cloud Platform blends web-scale engineering and consumer-grade design to natively converge server, storage, virtualization and networking into a resilient, software-defined solution with rich machine ...
Intel is an American multinational corporation and technology company headquartered in Santa Clara, California, in the Silicon Valley. It is the world's second largest and second highest valued semiconductor chip maker based on revenue after being overtaken by Samsung, and is the inventor of the x86 series of microprocessors, the processors found in most personal computers (PCs). Intel supplies processors for computer system manufacturers such as Apple, Lenovo, HP, and Dell. Intel also manufactu...
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve fu...
Wasabi is the hot cloud storage company delivering low-cost, fast, and reliable cloud storage. Wasabi is 80% cheaper and 6x faster than Amazon S3, with 100% data immutability protection and no data egress fees. Created by Carbonite co-founders and cloud storage pioneers David Friend and Jeff Flowers, Wasabi is on a mission to commoditize the storage industry. Wasabi is a privately held company based in Boston, MA. Follow and connect with Wasabi on Twitter, Facebook, Instagram and the Wasabi blog...
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
The dream is universal: heuristic driven, global business operations without interruption so that nobody has to wake up at 4am to solve a problem. Building upon Nutanix Acropolis software defined storage, virtualization, and networking platform, Mark will demonstrate business lifecycle automation with freedom of choice and consumption models. Hybrid cloud applications and operations are controllable by the Nutanix Prism control plane with Calm automation, which can weave together the following: ...
Inzata is a powerful, revolutionary data analytics platform for integrating, exploring, and analyzing data of any kind, from any source, at massive scale. Powerful AI-assisted Modeling and a patented analytics engine help users quickly load, blend and model raw and unstructured data into powerful enterprise data models, actionable real-time analytics and engaging visualizations. Go beyond spreadsheets and slides and compose a powerful narrative about how your business is performing, and how y...
CloudEXPO | DevOpsSUMMIT | DXWorldEXPO Silicon Valley 2019 will cover all of these tools, with the most comprehensive program and with 222 rockstar speakers throughout our industry presenting 22 Keynotes and General Sessions, 250 Breakout Sessions along 10 Tracks, as well as our signature Power Panels. Our Expo Floor will bring together the leading global 200 companies throughout the world of Cloud Computing, DevOps, IoT, Smart Cities, FinTech, Digital Transformation, and all they entail. As ...
Lori MacVittie is a subject matter expert on emerging technology responsible for outbound evangelism across F5's entire product suite. MacVittie has extensive development and technical architecture experience in both high-tech and enterprise organizations, in addition to network and systems administration expertise. Prior to joining F5, MacVittie was an award-winning technology editor at Network Computing Magazine where she evaluated and tested application-focused technologies including app secu...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
Only Adobe gives everyone - from emerging artists to global brands - everything they need to design and deliver exceptional digital experiences. Adobe Systems Incorporated develops, markets, and supports computer software products and technologies. The Company's products allow users to express and use information across all print and electronic media. The Company's Digital Media segment provides tools and solutions that enable individuals, small and medium businesses and enterprises to cre...