Insteel Industries Reports Fourth Quarter and Fiscal 2012 Financial Results
nsteel is the nation's largest manufacturer of steel wire reinforcing products for concrete construction applications. Insteel manufactures and markets PC strand and welded wire reinforcement, including engineered structural mesh, 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.
Insteel's financial results for the fourth quarter of fiscal 2012 were unfavorably impacted by narrower spreads between selling prices and raw material costs relative to the prior year period. Demand for Insteel's products remained at depressed levels due to continued weakness in its construction end markets. Insteel's capacity utilization for the quarter was 48% compared with 44% in the third quarter of fiscal 2012 and 49% in the prior year quarter.
Net sales for the fourth quarter of fiscal 2012 decreased 1.2% to $97.9 million from $99.1 million in the same period a year ago. Shipments increased 4.1% from the prior year quarter while average selling prices decreased 5.1%. On a sequential basis, shipments increased 6.8% from the third quarter of fiscal 2012 while average selling prices decreased 2.1%.
For fiscal 2012, net earnings were $1.8 million, or $0.10 per share, compared with a net loss of $0.4 million, or $0.02 per share, in fiscal 2011. The current year results include restructuring charges related to the Ivy acquisition and a gain on the early extinguishment of debt, which, in the aggregate, reduced pre-tax earnings by $0.4 million and net earnings by $0.01 per diluted share. The prior year results include restructuring charges, acquisition-related costs and a bargain purchase gain related to the Ivy acquisition, which, in the aggregate, reduced pre-tax earnings by $11.3 million and net earnings by $0.40 per share.
Net sales for fiscal 2012 increased 7.8% to $363.3 million from $336.9 million in fiscal 2011. Shipments increased 5.1% from the prior year primarily due to the contribution of the Ivy facilities for the entire period in fiscal 2012 and average selling prices increased 2.6%.
Operating activities provided $11.4 million of cash for the fourth quarter of fiscal 2012 while using $3.2 million in the same period a year ago primarily due to the year-over-year changes in net working capital, which provided $8.5 million of cash in the current year quarter and used $7.3 million in the prior year quarter. Capital expenditures for fiscal 2012 totaled $8.1 million compared with $7.9 million in the prior year, and are not expected to exceed $12.0 million in fiscal 2013. Insteel ended the year with $11.5 million of borrowings outstanding on its $100.0 million revolving credit facility.
- Prev : Ray Milchovich to Rejoin the Nucor Board of Directors
- Next : Woven Architectural Grows in Popularity
