[PART I – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Unaudited consolidated financial statements show Q2 net sales decreased to **$127.4 million** but net earnings increased to **$6.9 million**, with H1 sales and earnings declining year-over-year [Consolidated Statements of Operations and Comprehensive Income](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Consolidated Statements of Operations Highlights (In thousands, except per share amounts) | Metric | Three Months Ended Mar 30, 2024 | Three Months Ended Apr 1, 2023 | Six Months Ended Mar 30, 2024 | Six Months Ended Apr 1, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $127,394 | $159,051 | $249,119 | $325,950 | | **Gross profit** | $15,715 | $13,262 | $21,985 | $31,048 | | **Net earnings** | $6,939 | $5,101 | $8,071 | $16,224 | | **Diluted EPS** | $0.35 | $0.26 | $0.41 | $0.83 | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (In thousands) | Account | March 30, 2024 | September 30, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $83,945 | $125,670 | | **Total current assets** | $239,699 | $298,853 | | **Total assets** | $397,227 | $447,513 | | **Total current liabilities** | $33,384 | $46,155 | | **Total shareholders' equity** | $340,621 | $381,505 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Statements of Cash Flows Highlights (In thousands) | Cash Flow Activity | Six Months Ended Mar 30, 2024 | Six Months Ended Apr 1, 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $23,211 | $79,571 | | **Net cash used for investing activities** | $(14,586) | $(5,464) | | **Net cash used for financing activities** | $(50,350) | $(42,267) | | **Net (decrease) increase in cash** | $(41,725) | $31,840 | [Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity) - Total shareholders' equity decreased from **$381.5 million** at September 30, 2023, to **$340.6 million** at March 30, 2024, primarily due to **$49.8 million** in cash dividends declared[21](index=21&type=chunk) [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes disclose accounting policies, revenue recognition, fair value measurements, stock-based compensation, debt facilities, and share repurchases Net Sales by Product Line (In thousands) | Product Line | Three Months Ended Mar 30, 2024 | Three Months Ended Apr 1, 2023 | Six Months Ended Mar 30, 2024 | Six Months Ended Apr 1, 2023 | | :--- | :--- | :--- | :--- | :--- | | Welded wire reinforcement | $69,750 | $91,378 | $138,552 | $187,346 | | Prestressed concrete strand | $57,644 | $67,673 | $110,567 | $138,604 | | **Total** | **$127,394** | **$159,051** | **$249,119** | **$325,950** | - The company has a **$100.0 million** revolving credit facility maturing on March 15, 2028, with **no outstanding borrowings** and **$98.5 million** available capacity as of March 30, 2024[50](index=50&type=chunk) - During the six months ended March 30, 2024, the company repurchased **$842,000** (27,935 shares) of its common stock, with **$20.4 million** remaining for future repurchases[56](index=56&type=chunk) - The company operates as a **single reportable segment**, focused on manufacturing and marketing steel wire reinforcing products for concrete construction[58](index=58&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results, liquidity, and outlook, noting Q2 net sales decreased but gross profit increased, a strong balance sheet, and a positive H2 outlook [Results of Operations](index=18&type=section&id=Results%20of%20Operations) Q2 2024 net sales decreased **19.9%** to **$127.4 million** due to lower prices and shipments, while gross profit rose **18.5%** to **$15.7 million** from higher spreads Q2 Fiscal 2024 vs Q2 Fiscal 2023 Performance (Dollars in thousands) | Metric | Q2 2024 | Q2 2023 | Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $127,394 | $159,051 | (19.9%) | 17.3% decrease in avg. selling prices and 3.2% decline in shipments | | **Gross Profit** | $15,715 | $13,262 | 18.5% | Higher spreads between selling prices and raw material costs | | **Net Earnings** | $6,939 | $5,101 | 36.0% | Increased gross profit and interest income, partially offset by higher SG&A | H1 Fiscal 2024 vs H1 Fiscal 2023 Performance (Dollars in thousands) | Metric | H1 2024 | H1 2023 | Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $249,119 | $325,950 | (23.6%) | 22.4% decrease in avg. selling prices and 1.6% decline in shipments | | **Gross Profit** | $21,985 | $31,048 | (29.2%) | Lower spreads, higher manufacturing costs, and decreased shipments | | **Net Earnings** | $8,071 | $16,224 | (50.3%) | Decreased gross profit and other income, partially offset by lower SG&A | [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity remains strong with no debt, despite H1 2024 net cash from operations decreasing to **$23.2 million**, and **$50.4 million** used for financing, primarily dividends Cash Flow Summary (Six Months Ended, in thousands) | Activity | March 30, 2024 | April 1, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $23,211 | $79,571 | | Net cash used for investing activities | $(14,586) | $(5,464) | | Net cash used for financing activities | $(50,350) | $(42,267) | - Financing activities in H1 2024 included **$49.8 million** in dividend payments, comprising a **$48.6 million** special dividend and **$1.2 million** in regular dividends[87](index=87&type=chunk) - Capital expenditures for fiscal 2024 are projected to be up to approximately **$30.0 million**, targeting cost/productivity initiatives, facility modernization, and growth[85](index=85&type=chunk) [Outlook](index=22&type=section&id=Outlook) Management anticipates positive H2 momentum from seasonal construction, a stable macroeconomic environment, and federal infrastructure spending, while focusing on expense management and acquisitions - The company anticipates growing momentum driven by a seasonal upturn in construction activity and stronger market fundamentals[97](index=97&type=chunk) - The outlook for infrastructure construction is favorable, with federal spending from the Infrastructure Investment and Jobs Act expected to increase demand[97](index=97&type=chunk) - Strategic focus remains on managing expenses, improving productivity, and pursuing opportunistic acquisitions to expand market penetration or footprint[98](index=98&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=23&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risk is hot-rolled carbon steel wire rod price fluctuation, with a **10%** increase potentially reducing H1 pre-tax earnings by **$15.3 million** - The company's most significant market risk is commodity price fluctuation for hot-rolled carbon steel wire rod[100](index=100&type=chunk) - A **10%** increase in wire rod price would have resulted in a **$15.3 million** decrease in pre-tax earnings for H1 2024, assuming constant selling prices[100](index=100&type=chunk) [Controls and Procedures](index=23&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 30, 2024, with no material changes to internal control over financial reporting - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were **effective** as of March 30, 2024[103](index=103&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter[104](index=104&type=chunk) [PART II – OTHER INFORMATION](index=24&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=24&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal matters, not expecting a material adverse effect on its financial position or results - The company does not anticipate that the ultimate costs to resolve ordinary course lawsuits, claims, and investigations will have a **material adverse effect** on its financial condition or results[106](index=106&type=chunk) [Risk Factors](index=24&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred to the risk factors previously disclosed in the 2023 Annual Report on Form 10-K - No material changes to the risk factors set forth in the 2023 Annual Report occurred during the quarter ended March 30, 2024[107](index=107&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=24&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details common stock repurchases during Q2 fiscal 2024, totaling **8,859 shares** for approximately **$303,000** under existing authorization Common Stock Repurchases (Q2 2024) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Dec 31, 2023 - Feb 3, 2024 | 3,500 | $33.86 | | Feb 4, 2024 - Mar 2, 2024 | 4,685 | $34.33 | | Mar 3, 2024 - Mar 30, 2024 | 674 | $34.46 | | **Total** | **8,859** | **N/A** | - As of quarter-end, approximately **$20.4 million** remained available for future repurchases under the **$25.0 million** share repurchase authorization from November 2008[109](index=109&type=chunk) [Other Information](index=24&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the fiscal quarter ended March 30, 2024 - No directors or officers adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter[110](index=110&type=chunk) [Exhibits](index=25&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and financial statements in iXBRL format - Exhibits filed include CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906, and financial data in iXBRL format[113](index=113&type=chunk)

Insteel Industries (IIIN) came out with quarterly earnings of $0.35 per share, beating the Zacks Consensus Estimate of $0.22 per share. This compares to earnings of $0.26 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 59.09%. A quarter ago, it was expected that this maker of steel wire reinforcing for the concrete and construction industry would post earnings of $0.05 per share when it actually produced earnings of $0.06, del ...

Second Quarter 2024 Highlights Second Quarter 2024 Results Net earnings for the second quarter of fiscal 2024 increased to $6.9 million, or $0.35 per diluted share, from $5.1 million, or $0.26 per share, in the same period a year ago. Insteel's results for the second quarter benefited from widening spreads between selling prices and raw material costs relative to the prior year quarter. Exhibit 99.1 NEWS RELEASE FOR IMMEDIATE RELEASE Contact: Scot Jafroodi Vice President, Chief Financial Officer and Treasur ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended December 30, 2023. or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from_____to_____. Commission File Number: 1-9929 Insteel Industries Inc. (Exact name of registrant as specified in its charter) North Carolina 56-0674867 (State or other ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-9929 North Carolina (State or other jurisdiction of incorporation or organization) 56-0674867 (I.R.S. Employer Identification No.) 1373 Boggs Dri ...

Business Overview - Insteel Industries is the largest domestic manufacturer of steel wire reinforcing products for concrete construction applications, including Welded Wire Reinforcement (WWR) and Prestressed Concrete Strand (PC strand), with a national market presence[6,64] - The company's business experiences cyclical and seasonal demand, with higher shipments in the third and fourth quarters of the fiscal year (April to September) [2] - Insteel focuses on operating as the lowest-cost producer and pursuing growth opportunities in core businesses [64,80] - The company has made strategic acquisitions, including Ivy Steel & Wire for $50.3 million, American Spring Wire for $33.5 million, and Strand-Tech Manufacturing for $19.4 million [8] Financial Performance - For the 39 weeks ended July 1, 2023, Insteel reported net earnings of $26.789 million and EBITDA of $40.229 million [14] - In fiscal year 2022, the company's net earnings were $125.011 million and EBITDA was $178.177 million [14] - Capital expenditures are expected to total up to $35.0 million in fiscal year 2023 [121] - As of July 1, 2023, Insteel was debt-free with $91.7 million in cash and no borrowings outstanding on its $100.0 million revolving credit facility [59] Market and Growth Outlook - Nonresidential construction accounts for 85% of Insteel's sales by end use [26] - The Dodge Momentum Index (DMI) slipped in the latest June reading to 197.3, but remains 25% higher year-over-year [125] - The company anticipates a continued modest recovery in fiscal year 2023, benefiting from improved spreads between average selling prices and raw material costs [47]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q For the quarterly period ended July 1, 2023. or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to . Commission File Number: 1-9929 Insteel Industries Inc. (Exact name of registrant as specified in its charter) North Carolina 56-0674867 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 1373 Boggs Drive, M ...

Insteel Industries, Inc. (NYSE:IIIN) Q3 2023 Earnings Conference Call July 20, 2023 10:00 AM ET Company Participants H. Woltz - President & Chief Executive Officer Scot Jafroodi - Vice President, Chief Financial Officer & Treasurer Conference Call Participants Tyson Bauer - KC Capital Julio Romero - Sidoti & Co. Operator Good morning, and welcome to the Insteel Industries' Third Quarter 2023 Earnings Call. My name is Carla, and I will be the operator of today's call. [Operator Instructions] I would now like ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended April 1, 2023. or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to . Commission File Number: 1-9929 Insteel Industries Inc. (Exact name of registrant as specified in its charter) North Carolina 56-0674867 (State or other jurisdiction ...

Financial Data and Key Metrics Changes - Net sales for Q2 2023 were $159.1 million, a decrease of 25.4% year-over-year, while shipments rose 5.2% sequentially from Q1 but fell 12.8% year-over-year [3][21] - Gross profit fell by $43.8 million from the previous year, with gross margin narrowing to 8.3% from 26.8% due to lower spreads and higher unit conversion costs [4][21] - Net earnings dropped to $5.1 million from $39 million a year ago, with earnings per share decreasing to $0.26 from $1.99 [21][22] - Average selling prices declined by 9.4% from Q1 and 14.5% year-over-year, driven by competitive pricing pressures [22] Business Line Data and Key Metrics Changes - The company experienced weaker shipping volumes due to adverse winter weather and ongoing inventory destocking by customers [3][4] - SG&A expenses increased to $7.5 million, representing 4.7% of net sales, up from 3.4% the previous year [5] Market Data and Key Metrics Changes - The Architectural Billings Index (ABI) score increased to 50.4 in March, indicating growth, although new project inquiries grew at a slower pace [8] - The Dodge Momentum Index fell 8.6% from February but remains 24% higher year-over-year [8] - Construction spending data showed a 5% increase year-over-year, with non-residential construction up nearly 17% [9] Company Strategy and Development Direction - The company plans to invest approximately $30 million in capital expenditures for 2023, focusing on expanding product capabilities and improving production efficiency [13][25] - The company is optimistic about the impact of the Infrastructure Investment and Jobs Act, expecting it to positively influence markets in 2023 [31] - New production lines are being installed to better address market needs, with commissioning expected in Q3 and Q4 [32] Management's Comments on Operating Environment and Future Outlook - Management noted that inventory corrections are occurring after a period of constrained supply, and they expect a return to more predictable ordering patterns [11][12] - There is cautious optimism regarding demand recovery in residential markets, with expectations for continued strength in non-residential markets [28][57] - The company is monitoring rising risks related to the U.S. economy but plans to maximize shipments and optimize costs [14] Other Important Information - Cash flow from operations generated $46.6 million, primarily due to a $34.7 million decrease in inventories [6] - The company ended the quarter with $80.2 million in cash and no borrowings on its credit facility [7] Q&A Session Summary Question: Can you speak to the trend line in pricing for your product line, most exposed to residential markets? - Management acknowledged risks but noted that while some projects have been delayed, it is not a trend that compromises their outlook for fiscal 2023 [16][17] Question: Are you seeing any benefit yet from the Infrastructure Investment and Jobs Act? - Management indicated that while volume comparisons remain unfavorable, there is accelerating momentum and customers are returning to normal ordering patterns [37] Question: Are you feeling more confident in the residential markets' recovery this year or in the non-residential remaining strong? - Management expressed pleasant surprise at the recovery in residential markets, noting that customers have returned to purchasing after destocking [57]