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
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
Today most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes significant work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reducti...
Today traditional IT approaches leverage well-architected compute/networking domains to control what applications can access what data, and how. DevOps includes rapid application development/deployment leveraging concepts like containerization, third-party sourced applications and databases. Such applications need access to production data for its test and iteration cycles. Data Security? That sounds like a roadblock to DevOps vs. protecting the crown jewels to those in IT.
SYS-CON Events announced today that Interface Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Interface Corporation is a company developing, manufacturing and marketing high quality and wide variety of industrial computers and interface modules such as PCIs and PCI express. For more information, visit http://www.i...
SYS-CON Events announced today that mruby Forum will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. mruby is the lightweight implementation of the Ruby language. We introduce mruby and the mruby IoT framework that enhances development productivity. For more information, visit http://forum.mruby.org/.
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
In his session at @ThingsExpo, Greg Gorman is the Director, IoT Developer Ecosystem, Watson IoT, will provide a short tutorial on Node-RED, a Node.js-based programming tool for wiring together hardware devices, APIs and online services in new and interesting ways. It provides a browser-based editor that makes it easy to wire together flows using a wide range of nodes in the palette that can be deployed to its runtime in a single-click. There is a large library of contributed nodes that help so...
What is the best strategy for selecting the right offshore company for your business? In his session at 21st Cloud Expo, Alan Winters, U.S. Head of Business Development at MobiDev, will discuss the things to look for - positive and negative - in evaluating your options. He will also discuss how to maximize productivity with your offshore developers. Before you start your search, clearly understand your business needs and how that impacts software choices.
IBM helps FinTechs and financial services companies build and monetize cognitive-enabled financial services apps quickly and at scale. Hosted on IBM Bluemix, IBM’s platform builds in customer insights, regulatory compliance analytics and security to help reduce development time and testing. In his session at 21st Cloud Expo, Lennart Frantzell, a Developer Advocate with IBM, will discuss how these tools simplify the time-consuming tasks of selection, mapping and data integration, allowing devel...
SYS-CON Events announced today that Cedexis will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Cedexis is the leader in data-driven enterprise global traffic management. Whether optimizing traffic through datacenters, clouds, CDNs, or any combination, Cedexis solutions drive quality and cost-effectiveness.
SYS-CON Events announced today that Mobile Create USA will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Mobile Create USA Inc. is an MVNO-based business model that uses portable communication devices and cellular-based infrastructure in the development, sales, operation and mobile communications systems incorporating GPS capabi...
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, will discuss how data centers of the future will be managed, how th...