Business
Webco Industries, Inc. Reports Fiscal 2018 First Quarter Results
Webco Industries, Inc. Reports Fiscal 2018 First Quarter Results.
About this update from Webco Industries, Inc.
[{"type":"text","content":"\n \n Webco Industries, Inc. (OTC: WEBC) today reported results for our first \n quarter of fiscal year 2018, ended October 31, 2017.\n \n \n For our first quarter of fiscal year 2018, we generated net income of \n $3.0 million, or $3.31 per diluted share, compared to a net income of \n $0.7 million, or $0.86 per diluted share, for the first quarter in \n fiscal 2017. Net sales for the first quarter of fiscal 2018 were $114.3 \n million, a 29.4 percent increase from the $88.3 million of sales in last \n year’s first quarter. The current quarter includes a $0.2 million \n non-cash gain related to our interest swap contract, whereas the prior \n year first quarter includes a $0.5 million non-cash gain related to the \n interest swap contract.\n \n \n In the first quarter of fiscal year 2018, we generated income from \n operations of $5.7 million, after depreciation of $3.0 million. The \n first fiscal quarter of the prior year generated income from operations \n of $1.5 million, after depreciation amounting to $2.8 million. Gross \n profit for the first quarter of fiscal 2018 was $13.9 million, or 12.2 \n percent of net sales, compared to $7.9 million, or 9.0 percent of net \n sales, for the first quarter of fiscal 2017.\n \n \n Dana S. Weber, Chief Executive Officer, commented, “Results have \n improved over the prior year’s quarter, in large part, due to the hard \n work and dedication of our engaged workforce. We have experienced \n pricing and volume improvement resulting from the trade case filed in \n April 2017 against certain steel tubular products being imported from \n six named countries. We have been investing in our core strengths, \n including quality, efficiency, yield improvement and capabilities.”\n \n \n Selling, general and administrative expenses were $8.1 million in the \n first quarter of fiscal 2018 and $6.4 million in the first quarter of \n fiscal 2017. The increase in SG&A reflects increased costs associated \n with increased business levels, such as company-wide incentive \n compensation and variable pay programs.\n \n \n Interest expense was $0.8 million and $0.7 million, respectively, in \n each of the first quarters of fiscal years 2018 and 2017.\n \n \n We are party to an arrangement that swaps the variable interest rate for \n $50 million of our debt to a fixed rate throu...