Insteel Industries, Inc. (IIIN) recently declared financial results for its 1st-quarter finished December 30, 2k17.
1st-Quarter 2K18 Results:
Net earnings for the 1st-quarter of fiscal 2K18 increased to $8.10M, or $0.420 for each diluted share, from $4.50M, or $0.230 for each share, in the similar period a year ago. Insteel’s earnings for the current year quarter benefited from a $3.70M, or $0.190 for each share gain on the remeasurement of deferred tax liabilities and a $0.50M, or $0.030 for each share reduction in income taxes related to the lower corporate tax rate enacted under the Tax Cuts and Jobs Act in December 2k17. Apart From the deferred tax gain, Insteel’s effective tax rate reduced to 24.90% from 33.70% in the prior year quarter reflecting the reduction in the federal statutory rate to 21.00% from 35.00% for the remaining 3-quarters of fiscal 2K18.
Cash flow from operations increased to $14.80M from $3.90M in the prior year quarter mainly because of the relative changes in net working capital, which offered $4.70M of cash while using $4.60M in the prior-year quarter.
Capital Allocation and Liquidity:
Capital expenditures for the 1st-quarter of fiscal 2K18 increased to $6.1M from $5.40M in the prior year quarter. Capital outlays for fiscal 2K18 are expected to total up to $21.0M mostly related to extra investments in engineered structural mesh manufacturing capabilities, the purchase of the leased Houston facility and further upgrades of production technology and information systems.
Insteel finished the quarter debt-free with $37.20M of cash and cash equivalents, and no borrowings outstanding on its $100.0M revolving credit facility. Following the end of the quarter, on January 5, 2K18 Insteel paid a special cash dividend totaling $19.0M, or $1.0 for each share, to investors of record as of December 20, 2k17, marking the third successive year in which a special dividend has been paid.