Yesterday, Webco Industries, Inc. reported results for their fiscal 2010 fourth quarter and fiscal year ended July 31, 2010. Webco is a manufacturer and value added distributor of high-quality carbon steel, stainless steel and other metal tubular products designed to industry and customer specifications.
For their fiscal 2010 fourth quarter, Webco Industries, Inc. reported net income of $1,700,000, or $2.21 per diluted share, compared to a net loss of $16,000, or a loss of $0.02 per diluted share, for the same quarter in fiscal 2009. Net sales for the fourth quarter of fiscal 2010 were $97.2 million, a 73.4 percent increase over the $56.0 million of sales in last year’s fourth quarter.
The current and prior fourth fiscal quarter results reflect a $1.5 million non-cash charge and $1.3 million non-cash gain, respectively. These are related to interest rate swap contracts. The improvement in current quarter to same prior year quarter sales and results reflect an improved business environment following the worldwide economic crisis experienced in fiscal 2009.
For fiscal year 2010, Webco Industries, Inc. generated net income of $3,326,000, or $4.34 per diluted share, compared to a net loss of $2,919,000, or a loss of $3.83 per diluted share, for the same period in fiscal 2009. Net sales for fiscal year 2010 totaled $312.6 million, a 3.4 percent decrease from the $323.7 million in sales last fiscal year.
The current and prior fiscal year results reflect $2.5 million and $5.0 million, respectively, in non-cash pre-tax charges. These are related to interest rate swap contracts. The first quarter in fiscal year 2009 was one of the most profitable quarters in the Company’s history. It preceded the onset of the worldwide economic crisis.
Gross profit for the fourth quarter of fiscal 2010 was $8.7 million, or 9.0 percent of net sales, compared to a gross profit of $0.9 million, or 1.5 percent of net sales, for the fourth quarter of fiscal 2009. Gross profit for fiscal year 2010 was $28.4 million, or 9.1 percent of net sales, compared to $18.8 million, or 5.8 percent of net sales, in fiscal year 2009. The current quarter and fiscal year gross profit percentages increased from the comparable prior year periods because of the impacts of high priced inventories on those prior year periods.
Mr. F. William Weber, Webco Industries, Inc.’s Chairman and Chief Executive Officer, commented, “Production levels and sales continue to be at good volumes. The dedication of our employees and plans implemented by management helped us make tremendous progress toward putting the challenges from the global economic crisis behind us over the last year and a half. Our financial health has placed us in a position to pursue strategic organic growth investments, which we plan to undertake without sacrificing the strength of our balance sheet. Our current investments support our long-term niche strategy, which we believe is appropriate even in the current economic environment.”
Webco Industries, Inc.’s tubing products consist primarily of pressure tubing and specialty tubing for use in durable and capital goods. The Company has five production facilities in Oklahoma and Pennsylvania and five value-added distribution facilities in Oklahoma, Texas, Illinois and Michigan, serving more than 1,000 customers throughout North America.
For more information visit: www.webcoindustries.com
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