Insteel Industries Inc. (IIIN, Financial) filed Quarterly Report for the period ended 2010-01-02.
Insteel Industries Inc. has a market cap of $185.58 million; its shares were traded at around $10.59 with and P/S ratio of 0.81. The dividend yield of Insteel Industries Inc. stocks is 1.13%. Insteel Industries Inc. had an annual average earning growth of 0.7% over the past 5 years.IIIN is in the portfolios of Third Avenue Management, John Buckingham of Al Frank Asset Management, Inc., Chuck Royce of ROYCE & ASSOCIATES.
Selling, general and administrative expense (SG&A expense) for the first quarter of 2010 decreased 20.9% to $3.7 million, or 9.1% of net sales from $4.7 million, or 7.7% of net sales in the same year-ago period primarily due to the relative changes in the cash surrender value of insurance policies ($836,000) together with reductions in payroll taxes ($126,000), salaries ($101,000) and travel ($95,000). The cash surrender value of life insurance policies increased $111,000 in the current year quarter compared with a decrease of $725,000 in the prior year quarter due to the related changes in the value of the underlying investments. The reduction in payroll taxes was due to the taxes associated with the payment of the fiscal 2008 employee incentive plan bonuses during the prior year quarter. The reduction in salaries and travel expense was primarily due to the implementation of various cost reduction measures. These reductions were partially offset by higher legal expenses
The loss from continuing operations for the first quarter of 2010 was $1.1 million, or ($0.07) per share compared with a loss from continuing operations of $5.6 million, or ($0.33) per share in the same year-ago period primarily due to the increase in gross profit and decrease in SG&A expense.
inventory write-downs compared with a pre-tax charge of $6.8 million in the prior year. Net working capital used $12.9 million in the current year quarter while using $15.5 million in the same period last year. The cash used by net working capital in the current year quarter was largely due to the $14.5 million decrease in accounts payable and accrued expenses resulting from reduced raw material purchases and the $3.5 million decrease in accounts receivable due to lower selling prices. Inventories increased $1.8 million (excluding the impact of the $1.9 million of inventory write-downs) due to the typical seasonal decline in shipments. The cash used by working capital during the prior year quarter was largely due to the $21.8 million decrease in accounts payable and accrued expenses that resulted from the payment of $10.9 million of accrued income taxes payable and reduced raw material purchases. Inventories increased $17.8 million (excluding the impact of the $6.8 million of inventory write-downs) during the prior year quarter primarily due to the reduction in shipments and receipts of imported raw material on previous purchase commitments while accounts receivable decreased $24.0 million as a result of the reductions in shipments and selling prices. In addition to these changes in working capital, the $4.3 million of other changes in assets and liabilities in the prior year quarter reflects the impact of $4.1 million of income taxes receivable that was recorded in prepaid expenses and other resulting from the prior year loss. As the impact and duration of the ongoing weakness in market conditions becomes clearer, we may make additional adjustments in our operating activities, which could materially impact our cash requirements. While an economic slowdown adversely affects sales to our customers, it generally reduces our working capital requirements.
Investing activities used $438,000 of cash during the first quarter of 2010 compared to $168,000 during the same period last year. The increase was primarily due to the year-over-year change in the cash surrender value of life insurance policies, which increased $111,000 during the current year quarter as compared to a decrease of $718,000 in the prior year quarter as a result of the related changes in the value of the underlying investments. This increase was partially offset by the $572,000 reduction in capital expenditures to $327,000 from $899,000 in the prior year. Capital expenditures are expected to total less than $5.0 million for fiscal 2010. Investing activities are largely discretionary and future outlays could be reduced significantly or eliminated should economic conditions warrant.
Financing activities used $530,000 of cash during the first quarter of 2010 compared to $9.3 million during the same period last year. The year-over-year change was primarily due to the special cash dividend of $8.8 million ($0.50 per share) that was paid in the prior year quarter in addition to the usual quarterly cash dividend.
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Insteel Industries Inc. has a market cap of $185.58 million; its shares were traded at around $10.59 with and P/S ratio of 0.81. The dividend yield of Insteel Industries Inc. stocks is 1.13%. Insteel Industries Inc. had an annual average earning growth of 0.7% over the past 5 years.IIIN is in the portfolios of Third Avenue Management, John Buckingham of Al Frank Asset Management, Inc., Chuck Royce of ROYCE & ASSOCIATES.
Highlight of Business Operations:
Gross profit for the first quarter of 2010 was $1.7 million, or 4.2% of net sales, compared with a gross loss of $4.3 million, or (6.9%) of net sales in the same year-ago period. Gross profit (loss) for both quarters was unfavorably impacted by depressed shipment volumes, narrower spreads between average selling prices and raw material costs, and elevated unit conversion costs resulting from reduced operating schedules. The year-over-year improvement was primarily due to lower inventory write-downs in the current year quarter and, to a much lesser extent, higher shipments and lower unit conversion costs. Gross profit for the current year quarter includes a pre-tax charge of $1.9 million for inventory write-downs to reduce the value of inventory to the lower of cost or market due to additional pricing deterioration for standard welded wire reinforcing products. The gross loss for the prior year quarter includes a pre-tax charge of $6.8 million for inventory write-downs.Selling, general and administrative expense (SG&A expense) for the first quarter of 2010 decreased 20.9% to $3.7 million, or 9.1% of net sales from $4.7 million, or 7.7% of net sales in the same year-ago period primarily due to the relative changes in the cash surrender value of insurance policies ($836,000) together with reductions in payroll taxes ($126,000), salaries ($101,000) and travel ($95,000). The cash surrender value of life insurance policies increased $111,000 in the current year quarter compared with a decrease of $725,000 in the prior year quarter due to the related changes in the value of the underlying investments. The reduction in payroll taxes was due to the taxes associated with the payment of the fiscal 2008 employee incentive plan bonuses during the prior year quarter. The reduction in salaries and travel expense was primarily due to the implementation of various cost reduction measures. These reductions were partially offset by higher legal expenses
The loss from continuing operations for the first quarter of 2010 was $1.1 million, or ($0.07) per share compared with a loss from continuing operations of $5.6 million, or ($0.33) per share in the same year-ago period primarily due to the increase in gross profit and decrease in SG&A expense.
inventory write-downs compared with a pre-tax charge of $6.8 million in the prior year. Net working capital used $12.9 million in the current year quarter while using $15.5 million in the same period last year. The cash used by net working capital in the current year quarter was largely due to the $14.5 million decrease in accounts payable and accrued expenses resulting from reduced raw material purchases and the $3.5 million decrease in accounts receivable due to lower selling prices. Inventories increased $1.8 million (excluding the impact of the $1.9 million of inventory write-downs) due to the typical seasonal decline in shipments. The cash used by working capital during the prior year quarter was largely due to the $21.8 million decrease in accounts payable and accrued expenses that resulted from the payment of $10.9 million of accrued income taxes payable and reduced raw material purchases. Inventories increased $17.8 million (excluding the impact of the $6.8 million of inventory write-downs) during the prior year quarter primarily due to the reduction in shipments and receipts of imported raw material on previous purchase commitments while accounts receivable decreased $24.0 million as a result of the reductions in shipments and selling prices. In addition to these changes in working capital, the $4.3 million of other changes in assets and liabilities in the prior year quarter reflects the impact of $4.1 million of income taxes receivable that was recorded in prepaid expenses and other resulting from the prior year loss. As the impact and duration of the ongoing weakness in market conditions becomes clearer, we may make additional adjustments in our operating activities, which could materially impact our cash requirements. While an economic slowdown adversely affects sales to our customers, it generally reduces our working capital requirements.
Investing activities used $438,000 of cash during the first quarter of 2010 compared to $168,000 during the same period last year. The increase was primarily due to the year-over-year change in the cash surrender value of life insurance policies, which increased $111,000 during the current year quarter as compared to a decrease of $718,000 in the prior year quarter as a result of the related changes in the value of the underlying investments. This increase was partially offset by the $572,000 reduction in capital expenditures to $327,000 from $899,000 in the prior year. Capital expenditures are expected to total less than $5.0 million for fiscal 2010. Investing activities are largely discretionary and future outlays could be reduced significantly or eliminated should economic conditions warrant.
Financing activities used $530,000 of cash during the first quarter of 2010 compared to $9.3 million during the same period last year. The year-over-year change was primarily due to the special cash dividend of $8.8 million ($0.50 per share) that was paid in the prior year quarter in addition to the usual quarterly cash dividend.
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