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WEBCO INDUSTRIES, INC. REPORTS FISCAL 2025 FIRST QUARTER RESULTS

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Webco Industries (OTC: WEBC) reported a challenging first quarter fiscal 2025, ending October 31, 2024, with a net loss of $0.1 million (-$0.13 per share), compared to net income of $5.1 million ($6.25 per share) in Q1 fiscal 2024. Net sales decreased 10.4% to $141.4 million from $157.8 million. The company maintained strong liquidity with $89.0 million in total cash, short-term investments, and available credit. Gross profit margin declined to 9.7% from 13.7%, while operating income decreased to $1.1 million from $8.0 million. Capital expenditures reduced to $5.1 million from $10.1 million in the previous year.

Webco Industries (OTC: WEBC) ha riportato un primo trimestre fiscale 2025 difficile, chiuso il 31 ottobre 2024, con una perdita netta di 0,1 milioni di dollari (-0,13 dollari per azione), rispetto a un utile netto di 5,1 milioni di dollari (6,25 dollari per azione) nel primo trimestre fiscale 2024. Le vendite nette sono diminuite del 10,4%, passando da 157,8 milioni a 141,4 milioni di dollari. L'azienda ha mantenuto una solida liquidità con 89,0 milioni di dollari in totale tra cassa, investimenti a breve termine e credito disponibile. Il margine di profitto lordo è sceso al 9,7% dal 13,7%, mentre l'utile operativo è calato a 1,1 milioni di dollari da 8,0 milioni. Le spese in conto capitale sono state ridotte a 5,1 milioni di dollari rispetto ai 10,1 milioni dell'anno precedente.

Webco Industries (OTC: WEBC) reportó un primer trimestre fiscal 2025 desafiante, que finalizó el 31 de octubre de 2024, con una pérdida neta de 0,1 millones de dólares (-0,13 dólares por acción), en comparación con una ganancia neta de 5,1 millones de dólares (6,25 dólares por acción) en el primer trimestre fiscal 2024. Las ventas netas disminuyeron un 10,4%, pasando de 157,8 millones a 141,4 millones de dólares. La empresa mantuvo una fuerte liquidez con 89,0 millones de dólares en total de efectivo, inversiones a corto plazo y crédito disponible. El margen de ganancia bruta se redujo al 9,7% desde el 13,7%, mientras que el ingreso operativo disminuyó a 1,1 millones de dólares desde 8,0 millones. Los gastos de capital se redujeron a 5,1 millones de dólares desde los 10,1 millones del año anterior.

Webco Industries (OTC: WEBC)는 2024년 10월 31일 종료된 2025 회계연도 첫 분기에 어려운 실적을 보고했으며, 10만 달러의 순손실(-주당 0.13달러)을 기록했습니다. 이는 2024 회계연도 첫 분기에서 510만 달러(주당 6.25달러)의 순이익을 기록한 것과 대조적입니다. 순매출은 10.4% 감소하여 1억 4140만 달러에서 1억5780만 달러로 줄어들었습니다. 회사는 총 8900만 달러의 현금, 단기 투자 및 사용 가능한 신용으로 강력한 유동성을 유지했습니다. 총 이익률은 13.7%에서 9.7%로 감소하였고, 운영 소득은 80만 달러에서 11만 달러로 감소했습니다. 자본 지출은 지난해 1010만 달러에서 510만 달러로 줄어들었습니다.

Webco Industries (OTC: WEBC) a rapporté un premier trimestre fiscal 2025 difficile, se terminant le 31 octobre 2024, avec une perte nette de 0,1 million de dollars (-0,13 dollar par action), par rapport à un bénéfice net de 5,1 millions de dollars (6,25 dollars par action) au premier trimestre fiscal 2024. Les ventes nettes ont diminué de 10,4 %, passant de 157,8 millions à 141,4 millions de dollars. L'entreprise a maintenu une solide liquidité avec un total de 89,0 millions de dollars en espèces, investissements à court terme et crédit disponible. La marge brute a diminué à 9,7 % contre 13,7 %, tandis que le revenu d'exploitation a chuté à 1,1 million de dollars contre 8,0 millions. Les dépenses d'investissement ont été réduites à 5,1 millions de dollars contre 10,1 millions de dollars l'année précédente.

Webco Industries (OTC: WEBC) berichtete über ein herausforderndes erstes Quartal des Geschäftsjahres 2025, das am 31. Oktober 2024 endete, mit einem Nettoverlust von 0,1 Millionen Dollar (-0,13 Dollar pro Aktie), verglichen mit einem Nettogewinn von 5,1 Millionen Dollar (6,25 Dollar pro Aktie) im ersten Quartal des Geschäftsjahres 2024. Der Nettoumsatz ging um 10,4 % auf 141,4 Millionen Dollar von 157,8 Millionen Dollar zurück. Das Unternehmen hielt eine starke Liquidität mit 89,0 Millionen Dollar an liquiden Mitteln, kurzfristigen Anlagen und verfügbaren Krediten. Die Bruttogewinnmarge ging von 13,7 % auf 9,7 % zurück, während das Betriebsergebnis auf 1,1 Millionen Dollar von 8,0 Millionen Dollar zurückging. Die Investitionsausgaben wurden auf 5,1 Millionen Dollar von 10,1 Millionen Dollar im Vorjahr reduziert.

Positive
  • Strong liquidity position with $89.0 million in combined cash and available credit
  • Reduction in SG&A expenses from $13.6M to $12.6M
  • Lower interest expense due to decreased debt balances
Negative
  • Net loss of $0.1 million compared to $5.1 million profit in previous year
  • 10.4% decrease in net sales to $141.4 million
  • Gross profit margin declined from 13.7% to 9.7%
  • Operating income decreased from $8.0M to $1.1M
  • Adverse impact from foreign imports in certain markets

SAND SPRINGS, Okla., Dec. 2, 2024 /PRNewswire/ -- Webco Industries, Inc. (OTC: WEBC) today reported results for our first quarter of fiscal year 2025, which ended October 31, 2024.

For our first quarter of fiscal year 2025, we had a net loss of $0.1 million, or a loss of $0.13 per diluted share, while in our first quarter of fiscal year 2024, we had net income of $5.1 million, or $6.25 per diluted share.  Net sales for the first quarter of fiscal 2025 were $141.4 million, a 10.4 percent decrease from the $157.8 million of sales in the first quarter of fiscal year 2024. 

Dana S. Weber, Chief Executive Officer and Board Chair, stated, "The domestic manufacturing economy has been worsening over the past year.  Further, we have certain markets that are being adversely impacted by foreign imports. 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 $89.0 million at October 31, 2024, which we believe to be a competitive advantage."

In the first quarter of fiscal year 2025, we had income from operations of $1.1 million after depreciation of $4.7 million.  The first fiscal quarter of the prior year generated income from operations of $8.0 million after depreciation of $3.7 million.  Gross profit for the first quarter of fiscal 2025 was $13.6 million, or 9.7 percent of net sales, compared to $21.6 million, or 13.7 percent of net sales, for the first quarter of fiscal year 2024.   

Selling, general and administrative expenses were $12.6 million in the first quarter of fiscal 2025 and $13.6 million in the first quarter of fiscal 2024. SG&A expenses in the first quarter of fiscal year 2025 reflect a decrease in costs related to lower profitability, such as company-wide incentive compensation and variable pay programs, offset by inflation we have experienced in wages and other expenses.

Interest expense was $1.2 million in the first quarter of fiscal year 2025 and $1.3 million in the same quarter of fiscal year 2024.  Average construction-based investments decreased in fiscal year 2025 and, as a result, capitalized interest decreased $0.2 million when compared to the first quarter of fiscal year 2024.   Capitalized interest decreases net interest expense in the consolidated statement of operations. Notwithstanding capitalized interest, the impact of increased interest rates was more than offset by lower average debt balances.

Capital expenditures incurred amounted to $5.1 million in the first quarter of fiscal year 2025, down from $10.1 in the first quarter of fiscal year 2024.  Included in our capital spending for the first quarter of fiscal year 2024 was construction of our F. William Weber Leadership Campus, which houses our Tech Center and corporate headquarters.  The Tech Center, which is the tip of the spear that leads Webco's trusted and technical brand throughout our industry, was completed in the fourth quarter of fiscal year 2024.

As of October 31, 2024, we had $18.6 million in cash and short-term investments, in addition to $70.4 million of available borrowing under our $220 million senior revolving credit facility.  Availability on the revolver, which had $44.0 million drawn at October 31, 2024, was subject to advance rates on eligible accounts receivable and inventories.  Our term loan and revolver mature in September 2027.  Accounting rules require asset-based debt agreements like our revolver to be classified as a current liability, despite its fiscal year 2028 maturity.

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 $40 million and extended the program's expiration until July 31, 2026.  We purchased 2,850 shares of our stock during the first quarter of fiscal year 2025.  Including the current fiscal year, Webco has purchased approximately 158,000 shares over the course of the last five fiscal years.   The repurchase plan may be extended, suspended or discontinued at any time, without notice, at the Board's discretion. 

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 100% engaged every day to build a forever kind of company for our Trusted Teammates, customers, business partners, investors and community.  We provide high-quality carbon steel, stainless steel and other metal specialty tubing products designed to industry and customer specifications.  We have five tube production facilities in Oklahoma and Pennsylvania and eight value-added facilities in Oklahoma, Illinois, Michigan, Pennsylvania and Texas, serving customers globally.  Our F. William Weber Leadership Campus is in Sand Springs, Oklahoma and houses our corporate offices and our Webco TechCenter™, providing a state-of-the-art laboratory and R & D facility to lead and develop technical solutions.

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 U.S. dollar; political or social environments that are unfriendly to industrial or energy-related businesses; changes in manufacturing technology; the banking environment, including availability of adequate financing; worldwide and domestic monetary policy; changes in tax rates and regulation; regulatory and permitting requirements, including, but not limited to, environmental, workforce, healthcare, safety and national security; availability and cost of adequate qualified and competent personnel; changes in import / export tariff or restrictions; volatility in raw material cost and availability for the Company, its customers and vendors; the cost and availability, including time for delivery, of parts and services necessary to maintain equipment essential to the Company's manufacturing activities; the cost and availability of manufacturing supplies, including process gases; volatility in oil, natural gas and power cost and availability;  world-wide or national transition from hydrocarbon sources of energy that adversely impact demand for our products; problems associated with product development efforts; significant shifts in product demand away from internal combustion engine automobiles; appraised values of inventories that can impact available borrowing under the Company's credit facility; declaration of material adverse change by a lender; industry capacity; domestic competition; loss of, or reductions in, purchases by significant customers and customer work stoppages; work stoppages by critical suppliers; labor unrest; conditions, including acts of God, that require more costly transportation of raw materials; accidents, equipment failures and insured or uninsured casualties; third-party product liability claims; flood, tornado, winter storms and other natural disasters;  customer or supplier bankruptcy; customer or supplier declarations of force majeure; customer or supplier breach of contract; insurance cost and availability; lack of insurance coverage for floods; the cost associated with providing healthcare benefits to employees; customer claims; supplier quality or delivery problems; technical and data processing capabilities; cyberattack on our information technology infrastructure; world, domestic or regional health crises; vaccine mandates or related governmental policy that would cause significant portions of our workforce, or that of our customers or vendors, to leave their current employment; global or regional wars and conflicts; our inability or unwillingness to comply with rules required to maintain the quotation of our shares on any market place; and our inability to repurchase the Company's stock. The Company assumes no obligation to publicly update any such forward-looking statements.  No assurance is provided that current results are indicative of those that will be realized in the future.

-          TABLES FOLLOW -

 WEBCO INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share data - Unaudited)







Three Months Ended

October 31,




2024

2023








Net sales

$     141,386

$     157,837



Cost of sales

127,740

136,231








Gross profit

13,646

21,606



Selling, general & administrative expenses

12,564

13,629








Income (loss) from operations

1,082

7,977



Interest expense

1,151

1,293








Pretax income (loss)

(69)

6,684



Provision for (benefit from) income taxes

37

1,600








Net income (loss)

$         (106)

$       5,084








Net income (loss) per share:   





     Basic

$        (0.13)

$         6.43



     Diluted

$        (0.13)

$         6.25








Weighted average common shares outstanding:





      Basic

798,000

790,000



      Diluted

798,000

814,000





CASH FLOW DATA

(Dollars in thousands - Unaudited)





Three Months Ended

October 31,



2024

2023






Net cash provided by 

   (used in) operating activities

 

$      13,851

 

$       18,050


Depreciation and amortization

$        4,694

$        3,696


Cash paid for capital expenditures

$       5,551

$      12,588






 Notes: Amounts may not sum due to rounding.

 


WEBCO INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands - Unaudited)








October 31,


July 31,



2024


2024






Current assets:





Cash

$       2,485


$      1,171


U.S. Treasury Bonds

16,103


15,903


Accounts receivable

58,668


70,249


Inventories, net

174,673


169,513


Prepaid expenses

9,303


9,530


Total current assets

261,233


266,366






Property, plant and equipment, net

168,748


168,186

Right of use, finance leases, net

954


1,043

Right of use, operating leases, net

21,891


21,879

Other long-term assets

15,696


15,611






Total assets

$   468,522


$   473,085






Current liabilities:





Accounts payable

$     30,230


$     28,109


Accrued liabilities

32,706


33,066


Current portion of long-term debt, net

43,799


49,115


Current portion of finance lease liabilities

427


429


Current portion of operating lease liabilities

5,178


5,063


Total current liabilities

112,340


115,782






Long-term debt, net of current portion

20,000


20,000

Finance lease liabilities, net of current portion

574


657

Operating lease liabilities, net of current portion

16,577


16,653

Deferred tax liability

39


886






Stockholders' equity:





Common stock

9


9


Additional paid-in capital

54,545


54,256


Retained earnings

264,437


264,842


Total stockholders' equity

318,991


319,107






Total liabilities and stockholders' equity

$   468,522


$   473,085





Notes: Amounts may not sum due to rounding.

 

CONTACT:   

Mike Howard                    


Chief Financial Officer            


(918) 241-1094


mhoward@webcotube.com

 

Cision View original content:https://www.prnewswire.com/news-releases/webco-industries-inc-reports-fiscal-2025-first-quarter-results-302320142.html

SOURCE Webco Industries, Inc.

FAQ

What was Webco Industries (WEBC) net income for Q1 fiscal 2025?

Webco Industries reported a net loss of $0.1 million, or -$0.13 per diluted share, for Q1 fiscal 2025 ended October 31, 2024.

How much did WEBC's net sales decrease in Q1 fiscal 2025?

Net sales decreased by 10.4%, from $157.8 million in Q1 fiscal 2024 to $141.4 million in Q1 fiscal 2025.

What is Webco Industries (WEBC) current liquidity position?

As of October 31, 2024, WEBC had $18.6 million in cash and short-term investments, plus $70.4 million in available credit, totaling $89.0 million in liquidity.

How did WEBC's gross profit margin change in Q1 fiscal 2025?

Gross profit margin declined from 13.7% in Q1 fiscal 2024 to 9.7% in Q1 fiscal 2025.

WEBCO INDUSTRIES INC

OTC:WEBC

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157.59M
858.81k
0.61%
Steel
Basic Materials
Link
United States of America
Sand Springs