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Oct 02, 2021
Insteel Q4 2021 Earnings Report
Insteel Reported Record Results Driven by Widening Spreads and Robust Demand.
Key Takeaways
Insteel Industries Inc. announced record financial results for the fourth quarter and fiscal year ended October 2, 2021. Net earnings for the fourth quarter of fiscal 2021 were $25.2 million, or $1.28 per diluted share, compared to $7.4 million, or $0.38 per share, in the same period a year ago.
Net earnings for the fourth quarter of fiscal 2021 were the highest on record for the Company, reaching $25.2 million, or $1.28 per diluted share.
Net sales increased 23.9% to $171.3 million from $138.2 million in the prior year quarter.
Gross margin increased 920 basis points to 23.3% from 14.1% in the prior year quarter.
Operating activities generated $4.4 million of cash during the fourth quarter compared to $11.4 million in the prior year quarter.
Insteel
Insteel
Forward Guidance
As we look ahead to fiscal 2022, we expect our financial performance to continue to benefit from robust market conditions as confidence grows within private and public non-residential construction markets. Supply chain challenges, initially highlighted in our second quarter of 2021, in addition to critically tight labor markets, continue to impact our operations.
Positive Outlook
- Financial performance is expected to continue to benefit from robust market conditions.
- Confidence is growing within private and public non-residential construction markets.
- Experienced a host of challenges in fiscal 2021 including recruiting and staffing obstacles and the most severe steel shortage in memory, each of which is ongoing early in fiscal 2022.
- Domestic production of steel wire rod, our primary raw material, is inadequate to satisfy domestic demand resulting in on-going customer service challenges, plant operating inefficiencies and escalating prices.
- Look forward to robust markets and performance in 2022.
Challenges Ahead
- Recruiting and staffing obstacles are ongoing early in fiscal 2022.
- The steel shortage is the most severe in memory and is ongoing early in fiscal 2022.
- Supply chain challenges continue to impact operations.
- Critically tight labor markets continue to impact operations.
- Domestic production of steel wire rod, our primary raw material, is inadequate to satisfy domestic demand resulting in on-going customer service challenges, plant operating inefficiencies and escalating prices.