Insteel industries, Inc. (NYSE:IIIN) Q2 2022 Earnings Conference Call April 21, 2022 10:00 AM ET

Company Participants

H.O. Woltz III – Chairman, President and Chief Executive Officer

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

Conference Call Participants

Tyson Bauer – KC Capital

Julio Romero – Sidoti

Operator

Hello, and welcome to today's In-steel Industries. Second Quarter 2022, Earnings Call. My name is Bally and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end if you would like to ask a question, please. [ Operators Instructions] I would now like to pass the conference over to H.O. Woltz, President and C.E.O H.O, please go ahead.

H.O. Woltz III

Thank you. Bally. Good morning and thank you for your interest in In-steel and welcome to our second 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 our second quarter results that were driven by surging demand for our reinforcing products and escalating steel prices. We believe the outlook for our markets is highly positive and has been materially enhanced by the passage of the infrastructure, investment, and jobs act. I'm going to turn the call over to Mark, to comment on our financial results for the quarter and the macro environment, and then I'll pick it back up to discuss our business outlook.

Mark Carano

Good morning to everyone joining us on the call, as we highlighted in our release earlier today, the second quarter of 2022 was a record quarter financial performance. We reported quarterly revenue of $213.2 million or an increase of 53.4%, from a $139 million in the prior year, and net earnings of $39 million or a $1.99 per diluted share as compared to $14.9 million or $0.76 per diluted share in the prior year, representing a 162% increase in earnings per share. These record results were achieved due to a robust demand environment for our concrete reinforcing products that remains broad-based across all regions and markets. As of the case in our last three sequential quarters, this environment allowed us to raise average selling prices, to recover rapidly increasing raw material costs, as well as increased labor and other manufacturing costs. This in turn delivered a spread expansion between average selling prices and raw materials relative to the prior year quarter. But the inadequate supply of domestic steel wire rod remained a challenge in the quarter, restraining our ability to meet fully our customer demand in generating plant operating inefficiencies and increase conversion costs. Average selling prices in the second quarter increased 65.4% relative to the prior year.