This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Insteel Industries Inc. CEO Discusses F4Q2010 Results - Earnings Call Transcript

The year-over-year reduction in gross profit for the quarter, which is primarily driven by the narrowing and spread between average selling prices and raw material costs and to a lesser extent the decrease in shipment. Our total unit production for the fourth quarter was down 22% from last year and 6% on a sequential basis from Q3which reduced overall capacity utilization to 49% from 52% in the third quarter and 56% a year ago.

SG&A expense for the fourth quarter decreased $0.3 million from the prior year, primarily due to the reductions in legal and consulting expenses a large portion of which were related to the fees that we were incurring a year ago associated with the PC strand and trade cases.

Interest expense for the fourth quarter decreased to $42,000 from $157,000 a year ago due to reduced standardization of capitalized financing costs resulting from the June 2010 amendment over our credit facility.

Our effective income tax rate on continuing operations for the fourth quarter decreased to 41.9% from 43% a year ago primarily due to changes in permanent book versus tax differences.

Going forward our effective tax rate will be subject to change depending upon the level of future earnings which could secure the impact of permanent differences or as there are adjustments to any of the estimates that enter into our tax provision calculation.

Moving to the cash flow statement and balance sheet, continuing operating activities used $1.6 million of cash for the fourth quarter or providing $15.5 million in the prior year quarter, primarily due to the year-over-year changes in net working capital together with the loss that was incurred during the current year quarter.

Net working capital used $1.6 million of cash during the current year quarter while providing $8.3 million in the prior year quarter largely due to the $8.4 million increase in payables from Q3 to Q4 last year.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,753.36 -51.35 -0.31%
S&P 500 1,943.96 -2.20 -0.11%
NASDAQ 4,415.1470 -6.9380 -0.16%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs