WEBCO INDUSTRIES, INC. REPORTS FISCAL 2024 FIRST QUARTER RESULTS
- Net income of $5.1 million for Q1 FY 2024
- Total cash, short-term investments, and available credit of $102.7 million
- Refreshed stock repurchase program with a new limit of up to $40 million
- 16.3% decrease in net sales compared to Q1 FY 2023
- Decrease in gross profit and income from operations
- Ongoing construction expenses of $10.1 million for the F. William Weber Leadership Campus
For our first quarter of fiscal year 2024, we had a net income of
Dana S. Weber, Chief Executive Officer and Board Chair, stated, "There are so many factors affecting the global and industrial economies today that it is hard to know how they will affect any given market, let alone the broader go-forward economy. There is little consensus on what we should expect in the near term. As such, we continue to focus on positioning Webco for various economic environments and opportunities 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
In the first quarter of fiscal year 2024, we had income from operations of
Selling, general and administrative expenses were
Interest expense was
Capital expenditures incurred amounted to
As of October 31, 2023, we had
Webco's stock repurchase program authorizes the purchase of our outstanding common stock in private or open market transactions. In September 2023, the Company's Board of Directors 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
Risk Factors and Forward-looking statements: Certain statements in this release, including, but not limited to, those preceded by or predicated upon the words "anticipates," "appears," "believes," "estimates," "expects," "forever," "hopes," "intends," "plans," "projects," "pursue," "should," "will," "wishes," 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
- TABLES FOLLOW -
WEBCO INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share data - Unaudited) | |||
Three Months Ended October 31, | |||
2023 | 2022 | ||
Net sales | $ 157,837 | $ 188,524 | |
Cost of sales | 136,231 | 162,533 | |
Gross profit | 21,606 | 25,992 | |
Selling, general & administrative expenses | 13,629 | 13,598 | |
Income (loss) from operations | 7,977 | 12,393 | |
Interest expense | 1,293 | 1,483 | |
Pretax income (loss) | 6,684 | 10,911 | |
Provision for (benefit from) income taxes | 1,600 | 2,503 | |
Net income (loss) | $ 5,084 | $ 8,407 | |
Net income (loss) per share: | |||
Basic | $ 6.43 | $ 11.04 | |
Diluted | $ 6.25 | $ 10.54 | |
Weighted average common shares outstanding: | |||
Basic | 790,000 | 762,000 | |
Diluted | 814,000 | 798,000 |
CASH FLOW DATA (Dollars in thousands - Unaudited) | ||||
Three Months Ended October 31, | ||||
2023 | 2022 | |||
Net cash provided by (used in) operating activities | $ 18,050 | $ (99) | ||
Depreciation and amortization | $ 3,696 | $ 3,307 | ||
Cash paid for capital expenditures | $ 12,588 | $ 7,899 | ||
Notes: Amounts may not sum due to rounding. |
WEBCO INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in thousands - Unaudited) | ||||
October 31, | July 31, | |||
2023 | 2023 | |||
Current assets: | ||||
Cash | $ 6,973 | $ 6,208 | ||
Certificates of deposit | 500 | 1,000 | ||
14,312 | 14,858 | |||
Accounts receivable | 73,614 | 68,478 | ||
Inventories, net | 193,426 | 207,976 | ||
Prepaid expenses | 4,055 | 2,628 | ||
Total current assets | 292,880 | 301,148 | ||
Property, plant and equipment, net | 151,234 | 144,717 | ||
Right of use, finance leases, net | 1,235 | 1,196 | ||
Right of use, operating leases, net | 23,323 | 23,210 | ||
Other long-term assets | 13,524 | 13,405 | ||
Total assets | $ 482,197 | $ 483,676 | ||
Current liabilities: | ||||
Accounts payable | $ 29,438 | $ 33,463 | ||
Accrued liabilities | 37,610 | 34,846 | ||
Current portion of long-term debt | 62,932 | 68,554 | ||
Current portion of finance lease liabilities | 424 | 407 | ||
Current portion of operating lease liabilities | 5,069 | 4,785 | ||
Total current liabilities | 135,473 | 142,055 | ||
Long-term debt, net of current portion | 20,000 | 20,000 | ||
Finance lease liabilities, net of current portion | 840 | 814 | ||
Operating lease liabilities, net of current portion | 18,142 | 18,330 | ||
Stockholders' equity: | ||||
Common stock | 8 | 8 | ||
Additional paid-in capital | 52,739 | 52,559 | ||
Retained earnings | 254,994 | 249,910 | ||
Total stockholders' equity | 307,741 | 302,478 | ||
Total liabilities and stockholders' equity | $ 482,197 | $ 483,676 | ||
Notes: Amounts may not sum due to rounding. |
CONTACT:
Mike Howard
Chief Financial Officer
(918) 241-1094
mhoward@webcotube.com
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SOURCE Webco Industries, Inc.
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