Insteel(US:IIIN)2023-08-10 11:47Business 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]