WEBCO INDUSTRIES, INC. REPORTS FISCAL 2023 FOURTH QUARTER AND YEAR END RESULTS
- Webco Industries reported a net income of $8.3 million, or $10.25 per diluted share, for Q4 FY2023, compared to $8.2 million, or $10.28 per diluted share, in Q4 FY2022.
- Net sales for Q4 FY2023 decreased by 9.3% to $156.4 million compared to $172.5 million in Q4 FY2022.
- For FY2023, Webco Industries generated a net income of $26.6 million, or $33.19 per diluted share, compared to $48.4 million, or $59.61 per diluted share, in FY2022.
- Net sales for FY2023 decreased by 2.4% to $686.9 million compared to $704.0 million in FY2022.
- The decrease in net sales for Q4 and FY2023 may negatively affect the stock price.
- The decrease in net income for FY2023 may also negatively impact the stock price.
For our fourth quarter of fiscal year 2023, we had a net income of
For fiscal year 2023, we generated a net income of
In the fourth quarter of fiscal year 2023, we had income from operations of
Our income from operations for fiscal year 2023 was
Dana S. Weber, Chief Executive Officer and Board Chair, stated, "There are many different ways the go-forward economy could turn and little consensus on which direction is the most likely. As such, we continue to focus on positioning Webco for various economic environments by maintaining a strong balance sheet and good liquidity and making compelling investments in our business. Our total cash, short-term investments and available credit on our revolver were
Selling, general and administrative expenses were
Interest expense was
Capital expenditures incurred amounted to
As of July 31, 2023, we had
Webco's stock repurchase program authorizes the purchase of our outstanding common stock in private or open market transactions. The Company's Board of Directors recently refreshed the repurchase program with a new limit of up to
Webco's mission is to continuously build on our strengths as we create a vibrant company for the ages. We leverage our core values of trust and teamwork, continuously building strength, agility and innovation. We focus on practices that support our brand such that we are
Forward-looking statements: Certain statements in this release, including, but not limited to, those preceded by or predicated upon the words "anticipates," "appears," "available," "believe," "can," "consider," "expects," "forever," "hopes," "intends," "plans," "projects," "pursue," "should," "wishes," "would," or similar words may constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company, or industry results, to differ materially from any future results, performance or achievements expressed or implied herein. Such risks, uncertainties and factors include the factors discussed above and, among others: general economic and business conditions, including any global economic downturn; government policy or low hydrocarbon prices that stifle domestic investment in energy; competition from foreign imports, including any impacts associated with dumping or the strength of the
CONTACT: | Mike Howard |
Chief Financial Officer | |
(918) 241-1094 | |
mhoward@webcotube.com |
- TABLES FOLLOW -
WEBCO INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS (Dollars in thousands, except per share data – Unaudited) | |||||||
Three Months Ended July 31, | Year Ended July 31, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
Net sales | $ 156,439 | $ 172,534 | $ 686,916 | ||||
Cost of sales | 131,947 | 151,438 | 597,544 | 585,904 | |||
Gross profit | 24,492 | 21,096 | 89,372 | 118,144 | |||
Selling, general & administrative expenses | 14,005 | 9,963 | 50,465 | 53,341 | |||
Income (loss) from operations | 10,487 | 11,133 | 38,907 | 64,803 | |||
Interest expense | 1,302 | 1,193 | 6,089 | 3,267 | |||
Pretax income (loss) | 9,186 | 9,941 | 32,818 | 61,535 | |||
Provision for (benefit from) income taxes | 1,838 | 1,711 | 6,174 | 13,184 | |||
Net income (loss) | $ 8,348 | $ 8,230 | $ 26,644 | $ 48,351 | |||
Net income (loss) per share: | |||||||
Basic | $ 10.56 | $ 10.77 | $ 34.46 | $ 62.87 | |||
Diluted | $ 10.25 | $ 10.28 | $ 33.19 | $ 59.61 | |||
Weighted average common shares outstanding: | |||||||
Basic | 790,000 | 764,000 | 773,000 | 769,000 | |||
Diluted | 814,000 | 800,000 | 803,000 | 811,000 |
CONSOLIDATED CASH FLOW DATA (Dollars in thousands – Unaudited) | |||||||
Three Months Ended July 31, | Year Ended July 31, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
Net cash provided by (used in) operating activities |
$ 23,026 |
$ 9,432 |
$ 82,876 |
$ (15,734) | |||
Depreciation and amortization | $ 3,743 | $ 4,071 | $ 13,702 | $ 14,576 | |||
Cash paid for capital expenditures | $ 7,658 | $ 6,455 | $ 31,735 | $ 21,642 |
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WEBCO INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in thousands - Unaudited)
| ||||
July 31, 2023 | July 31, 2022 | |||
Current assets: | ||||
Cash | $ 6,208 | $ 12,739 | ||
Certificates of deposit | 1,000 | - | ||
14,858 | - | |||
Accounts receivable | 68,478 | 83,657 | ||
Inventories, net | 207,976 | 244,311 | ||
Prepaid expenses | 2,628 | 11,847 | ||
Total current assets | 301,148 | 352,553 | ||
Property, plant and equipment, net | 144,717 | 123,136 | ||
Right of use, finance leases, net | 1,196 | 1,181 | ||
Right of use, operating leases, net | 23,210 | 21,592 | ||
Other long-term assets | 13,405 | 9,686 | ||
Total assets | $ 483,676 | $ 508,148 | ||
Current liabilities: | ||||
Accounts payable | $ 33,463 | $ 53,255 | ||
Accrued liabilities | 34,846 | 33,614 | ||
Current portion of long-term debt | 68,554 | 114,210 | ||
Current portion of finance lease liabilities | 407 | 611 | ||
Current portion of operating lease liabilities | 4,785 | 4,484 | ||
Total current liabilities | 142,055 | 206,175 | ||
Long-term debt, net of current portion | 20,000 | 12,000 | ||
Finance lease liabilities, net of current portion | 814 | 613 | ||
Operating lease liabilities, net of current portion | 18,330 | 17,083 | ||
Deferred tax liability | - | - | ||
Stockholders' equity: | ||||
Common stock | 8 | 8 | ||
Additional paid-in capital | 52,559 | 48,424 | ||
Retained earnings | 249,910 | 223,846 | ||
Total stockholders' equity | 302,477 | 272,277 | ||
Total liabilities and stockholders' equity | $ 483,676 | $ 508,148 |
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SOURCE Webco Industries, Inc.
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