Insteel Industries Files Q3 2024 10-Q

TL;DR

Insteel Q3 2024 10-Q filed. Financials for period ending June 29, 2024.

AI Summary

Insteel Industries Inc. reported its third quarter results for fiscal year 2024, ending June 29, 2024. The company's financial performance for the quarter and the nine months ended on this date is detailed in this 10-Q filing. Specific financial figures, including revenues, net income, and balance sheet items, are presented for the periods covered.

Why It Matters

This filing provides investors and analysts with the latest financial performance data for Insteel Industries, crucial for understanding the company's operational health and future prospects.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing (10-Q) and does not inherently present new risks.

Key Numbers

• Q3 2024 — Fiscal Quarter (Reporting period for the 10-Q filing.)
• 20240629 — Reporting Period End Date (The end date for the financial reporting period.)
• 20240718 — Filing Date (The date the document was officially filed with the SEC.)

Key Players & Entities

• INSTEEL INDUSTRIES INC (company) — Filer
• 20240629 (date) — Reporting Period End Date
• 20240718 (date) — Filing Date
• MOUNT AIRY (location) — Company Headquarters City
• NC (location) — Company Headquarters State

FAQ

Key Financial Figures

• $204,000 — pense associated with stock options was $204,000 and $160,000 for the three-month period
• $160,000 — ted with stock options was $204,000 and $160,000 for the three-month periods ended June
• $797,000 — 24, and July 1, 2023, respectively, and $797,000 and $635,000 for the nine-month periods
• $635,000 — 1, 2023, respectively, and $797,000 and $635,000 for the nine-month periods ended June 2
• $555,000 — ctively. As of June 29, 2024, there was $555,000 of unrecognized compensation cost relat
• $304,000 — sation expense associated with RSUs was $304,000 and $261,000 for the three-month period
• $261,000 — e associated with RSUs was $304,000 and $261,000 for the three-month periods ended June
• $1.1 million — 24, and July 1, 2023, respectively, and $1.1 million and $899,000 for the nine-month periods
• $899,000 — 023, respectively, and $1.1 million and $899,000 for the nine-month periods ended June 2

Filing Documents

• iiin20240629_10q.htm (10-Q) — 994KB
• ex_697793.htm (EX-31.1) — 10KB
• ex_697794.htm (EX-31.2) — 10KB
• ex_697795.htm (EX-32.1) — 5KB
• ex_697796.htm (EX-32.2) — 5KB
• 0001437749-24-022964.txt ( ) — 4993KB
• iiin-20240629.xsd (EX-101.SCH) — 37KB
• iiin-20240629_def.xml (EX-101.DEF) — 282KB
• iiin-20240629_lab.xml (EX-101.LAB) — 270KB
• iiin-20240629_pre.xml (EX-101.PRE) — 311KB
• iiin-20240629_cal.xml (EX-101.CAL) — 46KB
• iiin20240629_10q_htm.xml (XML) — 774KB

– 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 Nine Months Ended June 29, July 1, June 29, July 1, 2024 2023 2024 2023 Net sales $ 145,775 $ 165,714 $ 394,894 $ 491,664 Cost of sales 130,387 145,347 357,521 440,249 Gross profit 15,388 20,367 37,373 51,415 Selling, general and administrative expense 7,879 7,924 22,121 22,556 Other expense (income), net 15 ( 24 ) 2 ( 3,423 ) Interest expense 19 20 76 67 Interest income ( 1,245 ) ( 1,097 ) ( 4,051 ) ( 2,284 ) Earnings before income taxes 8,720 13,544 19,225 34,499 Income taxes 2,155 2,979 4,589 7,710 Net earnings $ 6,565 $ 10,565 $ 14,636 $ 26,789 Net earnings per share: Basic $ 0.34 $ 0.54 $ 0.75 $ 1.37 Diluted 0.34 0.54 0.75 1.37 Weighted average shares outstanding: Basic 19,500 19,488 19,502 19,506 Diluted 19,568 19,548 19,579 19,565 Cash dividends declared per share $ 0.03 $ 0.03 $ 2.59 $ 2.09 Comprehensive income $ 6,565 $ 10,565 $ 14,636 $ 26,789 See accompanying notes to consolidated financial statements. 3 INSTEEL INDUSTRIES INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) June 29, September 30, 2024 2023 Assets Current assets: Cash and cash equivalents $ 97,745 $ 125,670 Accounts receivable, net 61,234 63,424 Inventories 89,379 103,306 Other current assets 8,766 6,453 Total current assets 257,124 298,853 Property, plant and equipment, net 127,889 120,014 Intangibles, net 5,528 6,090 Goodwill 9,745 9,745 Other assets 14,329 12,811 Total assets $ 414,615 $ 447,513 Liabilities and shareholders' equity Current liabilities: Accounts payable $ 34,827 $ 34,

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 first

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