INSTEEL INDUSTRIES INC Files 10-Q for Q2 2024

TL;DR

<b>INSTEEL INDUSTRIES INC filed its Q2 2024 10-Q report on April 25, 2024, detailing financial performance and operational data.</b>

AI Summary

INSTEEL INDUSTRIES INC (IIIN) filed a Quarterly Report (10-Q) with the SEC on April 25, 2024. INSTEEL INDUSTRIES INC filed a 10-Q for the period ending March 30, 2024. The filing covers the second quarter of fiscal year 2024. The company's fiscal year ends on September 28. The filing includes financial data for periods ending March 30, 2024, and September 30, 2023. The company is incorporated in North Carolina and operates in the steel works, blast furnaces, and rolling & finishing mills sector.

Why It Matters

For investors and stakeholders tracking INSTEEL INDUSTRIES INC, this filing contains several important signals. This 10-Q filing provides investors with a detailed look at Insteel Industries' financial health and operational status for the second quarter of fiscal year 2024, enabling informed investment decisions. Understanding the specific financial figures and operational context within this filing is crucial for assessing the company's performance against previous periods and industry benchmarks.

Risk Assessment

Risk Level: — INSTEEL INDUSTRIES INC shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain unusual or high-risk disclosures, indicating a routine update on the company's financial status.

Analyst Insight

Review the detailed financial statements and segment information within the 10-Q to understand revenue drivers and profitability trends for Insteel Industries.

Key Numbers

• 2024-03-30 — Reporting Period End Date (10-Q Filing)
• 2023-09-28 — Fiscal Year End (Company Data)
• 2024-04-25 — Filing Date (10-Q Filing)
• 2023-10-01 — Prior Period Start Date (Financial Data)

Key Players & Entities

• INSTEEL INDUSTRIES INC (company) — Filer
• MOUNT AIRY (location) — Business Address
• NORTH CAROLINA (location) — State of Incorporation
• STEEL WORKS, BLAST FURNACES & ROLLING & FINISHING MILLS (industry) — Standard Industrial Classification
• EXPOSAIC INDUSTRIES INC (company) — Former Company Name

FAQ

Industry Context

INSTEEL INDUSTRIES INC operates within the steel manufacturing sector, specifically in the production of steel products for construction and industrial applications.

Regulatory Implications

The filing is a standard 10-Q report, adhering to SEC regulations for quarterly financial disclosures.

What Investors Should Do

1. Analyze the revenue and net income figures for the reported quarter and compare them to the prior year's quarter.
2. Examine any disclosed debt levels and cash positions to assess the company's financial stability.
3. Review management's discussion and analysis for insights into operational performance and future outlook.

Key Dates

• 2024-03-30: Quarterly Period End — Second quarter of fiscal year 2024
• 2024-04-25: Filing Date — Date the 10-Q was filed with the SEC

Year-Over-Year Comparison

This filing represents the quarterly update for Insteel Industries Inc., providing financial and operational data for the period ending March 30, 2024.

Filing Documents

• iiin20240330_10q.htm (10-Q) — 953KB
• ex_653383.htm (EX-31.1) — 10KB
• ex_653384.htm (EX-31.2) — 10KB
• ex_653385.htm (EX-32.1) — 5KB
• ex_653386.htm (EX-32.2) — 5KB
• 0001437749-24-013168.txt (&nbsp;) — 4972KB
• iiin-20240330.xsd (EX-101.SCH) — 38KB
• iiin-20240330_def.xml (EX-101.DEF) — 288KB
• iiin-20240330_lab.xml (EX-101.LAB) — 275KB
• iiin-20240330_pre.xml (EX-101.PRE) — 316KB
• iiin-20240330_cal.xml (EX-101.CAL) — 46KB
• iiin20240330_10q_htm.xml (XML) — 760KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1. Unaudited Financial Statements Consolidated Statements of Operations and Comprehensive Income 3 Consolidated Balance Sheets 4 Consolidated Statements of Cash Flows 5 Consolidated Statements of Shareholders' Equity 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 14 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 20 Item 4.

Controls and Procedures

Controls and Procedures 20

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 21 Item 1A.

Risk Factors

Risk Factors 21 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 21 Item 5. Other Information 21 Item 6. Exhibits 22

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements INSTEEL INDUSTRIES INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (In thousands, except per share amounts) (Unaudited) Three Months Ended Six Months Ended March 30, April 1, March 30, April 1, 2024 2023 2024 2023 Net sales $ 127,394 $ 159,051 $ 249,119 $ 325,950 Cost of sales 111,679 145,789 227,134 294,902 Gross profit 15,715 13,262 21,985 31,048 Selling, general and administrative expense 7,875 7,506 14,242 14,632 Other expense (income), net 9 ( 57 ) ( 13 ) ( 3,399 ) Interest expense 28 23 57 47 Interest income ( 1,147 ) ( 747 ) ( 2,806 ) ( 1,187 ) Earnings before income taxes 8,950 6,537 10,505 20,955 Income taxes 2,011 1,436 2,434 4,731 Net earnings $ 6,939 $ 5,101 $ 8,071 $ 16,224 Net earnings per share: Basic $ 0.36 $ 0.26 $ 0.41 $ 0.83 Diluted 0.35 0.26 0.41 0.83 Weighted average shares outstanding: Basic 19,508 19,503 19,503 19,514 Diluted 19,594 19,562 19,584 19,573 Cash dividends declared per share $ 0.03 $ 0.03 $ 2.56 $ 2.06 Comprehensive income $ 6,939 $ 5,101 $ 8,071 $ 16,224 See accompanying notes to consolidated financial statements. 3 INSTEEL INDUSTRIES INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) March 30, September 30, 2024 2023 Assets Current assets: Cash and cash equivalents $ 83,945 $ 125,670 Accounts receivable, net 55,549 63,424 Inventories 92,530 103,306 Other current assets 7,675 6,453 Total current assets 239,699 298,853 Property, plant and equipment, net 127,534 120,014 Intangibles, net 5,716 6,090 Goodwill 9,745 9,745 Other assets 14,533 12,811 Total assets $ 397,227 $ 447,513 Liabilities and shareholders' equity Current liabilities: Accounts payable $ 25,409 $ 3

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (1) Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. ("GAAP") on a basis consistent with that used in the Annual Report on Form 10-K for the year ended September 30, 2023 ("2023 Form 10-K") filed by us with the Securities and Exchange Commission. These statements include all normal recurring adjustments necessary to present fairly the consolidated balance sheets and the statements of operations and comprehensive income, cash flows and shareholders' equity for the periods indicated. The September 30, 2023 consolidated balance sheet was derived from audited consolidated financial statements but does not include all the disclosures required by GAAP. These statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our 2023 Form 10-K. The results of operations for the periods indicated are not necessarily indicative of the results that may be expected for the full fiscal year or any future periods. (2) Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures". ASU No. 2023-07 requires disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker ("CODM"), a description of other segment items by reportable segment and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. The ASU requires all annual disclosures currently required by Topic 280 to be included in interim periods and is applicable to entities with a single reportable segment. ASU No. 2023-07 will be effective for us in fiscal 2025 for annual reporting and in the f

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