Insteel Industries Reports $134.3M in Q4 Net Sales

By Bobby Samwell • Thursday, October 17 10:54 • Permanent Link

Insteel Industries Inc. (NYSE: IIIN) has released its financial results for the fourth quarter and fiscal year ended September 28, 2024. Let's dive into the numbers.

Fourth Quarter 2024 Highlights: Net sales totaled $134.3 million. Gross profit amounted to $12.3 million, representing 9.1% of net sales. Net income stood at $4.7 million, translating to $0.24 per share. Operating cash flow reached $16.2 million. * The company held a net cash balance of $111.5 million with no outstanding debt as of September 28, 2024.

Fourth Quarter 2024 Results: Net earnings for the fourth quarter of fiscal 2024 were $4.7 million, or $0.24 per share, down from $5.6 million, or $0.29 per share, in the same period a year ago. Net sales decreased by 14.7% to $134.3 million, compared to $157.5 million in the prior year quarter. Gross margin increased by 20 basis points to 9.1% from 8.9% in the prior year quarter. Operating activities generated $16.2 million of cash during the fourth quarter, down from $38.6 million in the prior year quarter due to a reduction in the relative changes in net working capital.

Fiscal 2024 Results: Net earnings for fiscal 2024 decreased to $19.3 million, or $0.99 per share, from $32.4 million, or $1.66 per share, in the prior year. Net sales decreased by 18.5% to $529.2 million from $649.2 million in the prior year. * Gross profit decreased to $49.6 million from $65.4 million in the same period a year ago, and gross margin narrowed to 9.4% from 10.1% due to lower spreads.

Capital Allocation and Liquidity: Capital expenditures for fiscal 2024 decreased to $19.1 million from $30.7 million in the prior year and are expected to total up to approximately $22.0 million in fiscal 2025. Insteel ended the year with $111.5 million of cash and no borrowings outstanding on its $100.0 million revolving credit facility.

Outlook: Insteel anticipates a gradual improvement in business conditions across its markets as it moves into fiscal year 2025. The company remains optimistic about the impact of spending from the infrastructure investment and jobs act, which is expected to boost infrastructure-related project activity.

These financial results reflect the changing landscape and market conditions for Insteel Industries Inc. as it navigates through the current economic environment. As a result of these announcements, the company's shares have moved -4.5% on the market, and are now trading at a price of $28.18. For more information, read the company's full 8-K submission here.

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