Insteel Industries, Inc. (NYSE:IIIN) Q4 2022 Earnings Conference Call October 20, 2022 10:00 AM ET

Company Participants

H.O. Woltz - Chairman, President, and Chief Executive Officer

Mark Carano - Senior Vice President, Chief Financial Officer, and Treasurer

Conference Call Participants

Julio Romero - Sidoti & Co.

Tyson Bauer - KC Capital

Operator

Good morning and a warm welcome to the Insteel Industries' Fourth Quarter 2022 Earnings Conference Call. My name is Candice, and I will be your moderator for today's call. All lines have been placed on mute during the presentation portion of the call with an opportunity for question-and-answer at the end. [Operator Instructions]

I would now like to pass the conference over to our host, H.O. Woltz, President and CEO, Insteel Industries. Please go ahead.

H.O. Woltz

Thank you, Candice. Good morning. Thank you for your interest in Insteel, and welcome to our fourth quarter 2022 conference call, which will be conducted by Mark Carano, our Senior Vice President, CFO, and Treasurer, and me.

Before we begin, let me remind you that some of the comments made in our presentation are considered to be forward-looking statements that are subject to various risks and uncertainties which could cause actual results to differ materially from those projected. These risk factors are described in our periodic filings with the SEC.

We're pleased with Insteel's record financial performance in fiscal 2022, generating net earnings of $125 million, and return on capital of 36%. During much of the year, we experienced substantially rising costs both in raw materials and plant operating costs, including labor, energy, and consumables. While the rising price environment produced a tailwind for earnings as average selling prices rose, it also created considerable operational and customer service challenges for our people, including shortages of nearly every input into our process which created uncertainty surrounding production schedules.

I'm particularly proud of our people for the discipline they showed in this environment as they generally avoided overcommitments that would result in customer disappointment. While lead times extended, by and large, we understood the impact of the environment on our ability to deliver to customers, and we fulfilled the customer commitments we made, which speak highly of the professionalism of our people, our focus on customer needs, and the effectiveness of our information systems. As we enter fiscal 2023, we believe the outlook for our markets is positive and has been materially enhanced by the passage of the Infrastructure Investment and Jobs Act.