Insteel(US:IIIN)2025-07-02 06:18Business Overview - Insteel Industries is the nation's largest manufacturer of steel wire reinforcing products for concrete construction applications[6] - In 2015, Welded Wire Reinforcement (WWR) accounted for 57% of sales, while PC Strand accounted for 43%[5] - Nonresidential construction represents 85% of sales, while residential construction accounts for 15%[9] - Concrete product manufacturers account for 70% of sales, while distributors, rebar fabricators, and contractors make up 30%[10] Growth Strategy & Acquisitions - Existing facilities are capable of generating over $700 million of annualized revenues at current ASPs with minimal incremental capex required[31] - In November 2010, Insteel acquired Ivy Steel & Wire, Inc for $50.3 million[34] - In August 2014, Insteel acquired American Spring Wire Corporation for $33.5 million[37] - Closure of Newnan facility in March 2015 is expected to generate approximately $3.0 million of annualized cost savings[106] Financial Performance - Fiscal Year 2014 net sales were $409 million[29] - EBITDA for 2015 was $46.7 million, representing 10.4% of EBITDA Margin[54] - Capital expenditures are expected to increase to $20.0 million in 2016, including $9.0 million related to the expansion of the Houston PC strand facility[71] - As of October 3, 2015, Insteel was debt-free with $33.3 million of cash and cash equivalents[74] Market Outlook - Total construction spending for 2014 was up 4.8% from the prior year[80] - Total construction spending for August YTD 2015 was up 9.8% from the prior year[84] - Architecture Billings Index rebounded to 53.7 in September 2015[101] - Dodge Momentum Index in September 2015 was up 5.8% from the prior month and 20.9% from a year ago[104]