Business
Webco Industries, Inc. Reports Fiscal 2020 Second Quarter Results
Webco Industries, Inc. Reports Fiscal 2020 Second Quarter Results.
About this update from Webco Industries, Inc.
[{"type":"text","content":"\nWebco Industries, Inc. (OTC: WEBC) today reported results for our second quarter of fiscal year 2020, which ended January 31, 2020.\n\n\nFor our second quarter of fiscal year 2020, we generated net income of $2.0 million, or $2.23 per diluted share, while in our second quarter of fiscal year 2019, we generated net income of $4.9 million, or $5.28 per diluted share. Net sales for the second quarter of fiscal 2020 were $112.4 million, a 17.3 percent decrease from the $135.9 million of net sales in last year’s second quarter. Sales comparisons between the quarters were adversely impacted by declines in the price of carbon steel products and lower volumes. Lower carbon steel product prices were primarily caused by significant market reductions in carbon steel sheet coil cost which began in fiscal year 2019. Profitability for the quarter was significantly impacted by liquidating higher cost steel from inventories, which adversely affected margins.\n\n\nFor the first six months of fiscal year 2020, we generated net income of $5.2 million, or $5.70 per diluted share, compared to net income of $14.6 million, or $15.86 per diluted share, for the same period in fiscal year 2019. Net sales for the first six months of the current year amounted to $234.9 million, a 13.9 percent decrease from the $272.9 million in sales for the same six-month period of last year. Sales and net income comparisons were adversely affected by the same lower carbon steel product prices, volume decline and liquidation of higher cost steel from inventories that affected the second quarter comparisons to the prior year.\n\n\nIn the second quarter of fiscal year 2020, we generated income from operations of $3.3 million, after depreciation of $3.5 million. The second fiscal quarter of the prior year generated income from operations of $8.1 million, after depreciation of $3.3 million. Gross profit for the second quarter of fiscal 2020 was $11.7 million, or 10.4 percent of net sales, compared to $18.3 million, or 13.5 percent of net sales, for the second quarter of fiscal year 2019. Declines in the price of carbon steel sheet coil suppressed margins as we liquidated higher cost steel.\n\n\nOur income from operations for the first six months of fiscal year 2020 was $8.1 million, after depreciation expense of $6.9 million. Income from operations in the first six-mo...