CORRECTING AND REPLACING Webco Industries, Inc. Reports Fiscal 2013 Third Quarter Results

CORRECTING AND REPLACING Webco Industries, Inc. Reports Fiscal 2013 Third Quarter Results

SAND SPRINGS, Okla.--(BUSINESS WIRE)-- In the release dated June 13, 2013, in the CASH FLOW DATA table the line labeled "Net cash provided by (used in) operating activities" the number in the column for "Three Months Ended April 30, 2013" should read "$(1,312)" (sted $7,843) and the number in the column for "Nine Months Ended April 30, 2013" should read "$29,230" (sted $38,385).


The corrected release reads:

WEBCO INDUSTRIES, INC. REPORTS FISCAL 2013 THIRD QUARTER RESULTS

Webco Industries, Inc. (OTC: WEBC) today reported results for its fiscal 2013 third quarter ended April 30, 2013.

For its fiscal 2013 third quarter, the Company reported net income of $1.0 million, or $1.33 per diluted share, compared to net income of $5.2 million, or $6.69 per diluted share, for the same quarter in fiscal 2012. Net sales for the third quarter of fiscal 2013 were $97.8 million, a 27.5 percent decrease from the $134.8 million of sales in last year's third quarter. The current quarter results include a $0.7 million non-cash loss, whereas the prior year same quarter includes a $0.1 million non-cash loss related to the interest swap contract.

For the first nine months of fiscal year 2013, the Company generated net income of $4.0 million, or $5.13 per diluted share, compared to net income of $11.4 million, or $14.58 per diluted share, for the same period in fiscal 2012. Net sales for the first nine months of the current year amounted to $313.3 million, a 19.9 percent reduction from the $391.2 million in sales for the same nine-month period of last year. Results for the first nine months of the current year include a $0.4 million non-cash loss related to the interest swap contract, whereas the prior year same nine-month period contained a $3.8 million non-cash loss on the contract.

Gross profit for the third quarter of fiscal 2013 was $8.4 million, or 8.6 percent of net sales, compared to $14.6 million, or 10.8 percent of net sales, for the third quarter of fiscal 2012. Gross profit for the first nine months of fiscal 2013 was $26.4 million, or 8.4 percent of net sales, compared to $41.8 million, or 10.7 percent of net sales, in the same nine-month period in 2012.

Dana S. Weber, Chief Executive Officer, commented, "The greatest factors affecting both the quarterly and nine-month comparisons are lower volume, less favorable product mix and weak spot pricing. We have seen improvement in some of our industrial sectors, but visibility into the future is limited. We hope for the return of more favorable volume and spot pricing conditions into fiscal year 2014. We continue to invest in a platform for long-term organic growth that is consistent with our niche strategy."

Selling, general and administrative expenses in the third quarter of fiscal 2013 decreased to $5.2 million from $5.5 million in the third quarter of the prior year. SG&A costs in the first nine months of fiscal 2013 were $16.9 million, down slightly from $17.1 million reported for the same nine-month period in 2012.

Interest expense was $1.0 million in fiscal 2013's third quarter and $0.6 million in the third quarter of fiscal 2012. For the first nine months of both fiscal year 2013 and 2012, interest expense amounted to $2.9 million. The Company is party to an arrangement that swaps the variable interest rate for $75 million of the Company's debt to a fixed rate through December 2017. The Company records the interest swap contract at fair value and non-cash changes in value are reported in Gains or Losses on Interest Contracts. Monthly swap settlements, if any, are included in interest expense.

Capital expenditures incurred amounted to $1.1 million and $7.0 million, respectively, for the third quarter and first nine-month period of fiscal 2013. Capital spending for fiscal year 2013 is expected to be in the range of $9 to $10 million.

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. Webco's tubing products consist primarily of pressure tubing and specialty tubing for use in durable and capital goods. Webco's long-term strategy involves the pursuit of niche markets within the metal tubing industry through the deployment of leading-edge manufacturing and information technology. Webco has seven production facilities in Oklahoma and Pennsylvania and five value-added distribution facilities in Oklahoma, Texas, Illinois and Michigan, serving more than 1,500 customers globally.

Forward-looking statements: Certain statements in this release, including, but not limited to, those preceded by or predicated upon the words "anticipates," "appears," "believes," "can," "considering," "expects," "hopes," "plans," "projects," "pursue," "should," "would," or similar words constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company, or industry results, to differ materially from any future results, performance or achievements expressed or implied herein. Such risks, uncertainties and factors include the factors discussed above and, among others: general economic and business conditions, including any global economic downturn or disruptions in the global credit markets, competition from imports, changes in manufacturing technology, banking environment, including availability of adequate financing, monetary policy, tax rates and regulation, raw material costs and availability, industry capacity, domestic competition, loss of significant customers and customer work stoppages, customer claims, technical and data processing capabilities, and insurance costs and availability. The Company assumes no obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise.

 
 
WEBCO INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
(Unaudited)
 
  Three Months Ended  Nine Months Ended
April 30,April 30,
2013  20122013  2012
 
Net sales$97,758$134,775$313,277$391,218
Cost of sales 89,335 120,192 286,902 349,427
 
Gross profit8,42314,58326,37641,791
Selling, general & administrative 5,195 5,522 16,904 17,095
 
Income from operations3,2289,0619,47224,696
Interest expense9266252,8822,876
Unrealized (gain) loss on interest contracts 693 88 354 3,795

Income before income taxes

1,609

8,349

6,236

18,026

Income tax expense 563 3,120 2,200 6,667
 
Net income$1,046$5,228$4,036$11,359

 

Net income per common share:
Basic$1.34$6.80$5.20$14.81
Diluted$1.33$6.69$5.13$14.58
 
Weighted average common shares outstanding:
Basic 778,200 768,900 775,600 766,800
Diluted 788,700 781,900 786,400 778,900
 

Note: Amounts may not sum due to rounding.

 
 
WEBCO INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET HIGHLIGHTS
(Dollars in thousands)
(Unaudited)
    
April 30,July 31,
20132012
 
Cash$7,149$5,530
Accounts receivable, net36,42861,916
Inventories, net149,337157,601
Other current assets 7,992 12,357
Total current assets200,907237,404
 
Net property, plant and equipment105,911109,109
Other long-term assets 2,142 2,128
 
Total assets$308,960$348,642
 
Other current liabilities$45,147$72,870
Current portion of long-term debt 75,697 87,538
Total current liabilities120,844160,408
 
Long-term debt12,00015,125
Deferred income tax liability20,24221,288
 
Total equity 155,874 151,821
 
Total liabilities and equity$308,960$348,642
 
 
CASH FLOW DATA
(Dollars in thousands)
(Unaudited)
      
Three Months EndedNine Months Ended
April 30,April 30,
2013  201220132012
Net cash provided by (used in)

operating activities

$

(1,312

)

$

7,971

$

29,230

$

38,768

 
Depreciation and amortization$3,512 $2,742$10,563$7,865
 
Cash paid for capital expenditures$1,209 $9,905$7,288$30,328
 

Note: Amounts may not sum due to rounding.



Webco Industries, Inc.
Mike Howard, 918-241-1094
Chief Financial Officer
mhoward@webcoindustries.com

KEYWORDS:   United States  North America  Oklahoma

INDUSTRY KEYWORDS:

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