WEBC Webco Industrial Inc (PK)

In the release dated June 13, 2013, in the CASH FLOW DATA table the line labeled "Net cash provided by (used in) operating activities" the number in the column for "Three Months Ended April 30, 2013" should read "$(1,312)" (sted $7,843) and the number in the column for "Nine Months Ended April 30, 2013" should read "$29,230" (sted $38,385).

The corrected release reads:

WEBCO INDUSTRIES, INC. REPORTS FISCAL 2013 THIRD QUARTER RESULTS

Webco Industries, Inc. (OTC: WEBC) today reported results for its fiscal 2013 third quarter ended April 30, 2013.

For its fiscal 2013 third quarter, the Company reported net income of $1.0 million, or $1.33 per diluted share, compared to net income of $5.2 million, or $6.69 per diluted share, for the same quarter in fiscal 2012. Net sales for the third quarter of fiscal 2013 were $97.8 million, a 27.5 percent decrease from the $134.8 million of sales in last year’s third quarter. The current quarter results include a $0.7 million non-cash loss, whereas the prior year same quarter includes a $0.1 million non-cash loss related to the interest swap contract.

For the first nine months of fiscal year 2013, the Company generated net income of $4.0 million, or $5.13 per diluted share, compared to net income of $11.4 million, or $14.58 per diluted share, for the same period in fiscal 2012. Net sales for the first nine months of the current year amounted to $313.3 million, a 19.9 percent reduction from the $391.2 million in sales for the same nine-month period of last year. Results for the first nine months of the current year include a $0.4 million non-cash loss related to the interest swap contract, whereas the prior year same nine-month period contained a $3.8 million non-cash loss on the contract.

Gross profit for the third quarter of fiscal 2013 was $8.4 million, or 8.6 percent of net sales, compared to $14.6 million, or 10.8 percent of net sales, for the third quarter of fiscal 2012. Gross profit for the first nine months of fiscal 2013 was $26.4 million, or 8.4 percent of net sales, compared to $41.8 million, or 10.7 percent of net sales, in the same nine-month period in 2012.

Dana S. Weber, Chief Executive Officer, commented, “The greatest factors affecting both the quarterly and nine-month comparisons are lower volume, less favorable product mix and weak spot pricing. We have seen improvement in some of our industrial sectors, but visibility into the future is limited. We hope for the return of more favorable volume and spot pricing conditions into fiscal year 2014. We continue to invest in a platform for long-term organic growth that is consistent with our niche strategy.”

Selling, general and administrative expenses in the third quarter of fiscal 2013 decreased to $5.2 million from $5.5 million in the third quarter of the prior year. SG&A costs in the first nine months of fiscal 2013 were $16.9 million, down slightly from $17.1 million reported for the same nine-month period in 2012.

Interest expense was $1.0 million in fiscal 2013’s third quarter and $0.6 million in the third quarter of fiscal 2012. For the first nine months of both fiscal year 2013 and 2012, interest expense amounted to $2.9 million. The Company is party to an arrangement that swaps the variable interest rate for $75 million of the Company’s debt to a fixed rate through December 2017. The Company records the interest swap contract at fair value and non-cash changes in value are reported in Gains or Losses on Interest Contracts. Monthly swap settlements, if any, are included in interest expense.

Capital expenditures incurred amounted to $1.1 million and $7.0 million, respectively, for the third quarter and first nine-month period of fiscal 2013. Capital spending for fiscal year 2013 is expected to be in the range of $9 to $10 million.

Webco is a manufacturer and value added distributor of high-quality carbon steel, stainless steel and other metal tubular products designed to industry and customer specifications. Webco's tubing products consist primarily of pressure tubing and specialty tubing for use in durable and capital goods. Webco's long-term strategy involves the pursuit of niche markets within the metal tubing industry through the deployment of leading-edge manufacturing and information technology. Webco has seven production facilities in Oklahoma and Pennsylvania and five value-added distribution facilities in Oklahoma, Texas, Illinois and Michigan, serving more than 1,500 customers globally.

Forward-looking statements: Certain statements in this release, including, but not limited to, those preceded by or predicated upon the words "anticipates," "appears," "believes," “can,” “considering,” "expects," "hopes," "plans," “projects,” “pursue,” "should," "would," or similar words constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company, or industry results, to differ materially from any future results, performance or achievements expressed or implied herein. Such risks, uncertainties and factors include the factors discussed above and, among others: general economic and business conditions, including any global economic downturn or disruptions in the global credit markets, competition from imports, changes in manufacturing technology, banking environment, including availability of adequate financing, monetary policy, tax rates and regulation, raw material costs and availability, industry capacity, domestic competition, loss of significant customers and customer work stoppages, customer claims, technical and data processing capabilities, and insurance costs and availability. The Company assumes no obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise.

    WEBCO INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share data) (Unaudited)       Three Months Ended     Nine Months Ended April 30, April 30, 2013     2012 2013     2012   Net sales $ 97,758 $ 134,775 $ 313,277 $ 391,218 Cost of sales   89,335   120,192   286,902   349,427   Gross profit 8,423 14,583 26,376 41,791 Selling, general & administrative   5,195   5,522   16,904   17,095   Income from operations 3,228 9,061 9,472 24,696 Interest expense 926 625 2,882 2,876 Unrealized (gain) loss on interest contracts   693   88   354   3,795

Income before income taxes

1,609

8,349

6,236

18,026

Income tax expense   563   3,120   2,200   6,667   Net income $ 1,046 $ 5,228 $ 4,036 $ 11,359

 

Net income per common share: Basic $ 1.34 $ 6.80 $ 5.20 $ 14.81 Diluted $ 1.33 $ 6.69 $ 5.13 $ 14.58   Weighted average common shares outstanding: Basic   778,200   768,900   775,600   766,800 Diluted   788,700   781,900   786,400   778,900  

Note: Amounts may not sum due to rounding.

    WEBCO INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET HIGHLIGHTS (Dollars in thousands) (Unaudited)         April 30, July 31, 2013 2012   Cash $ 7,149 $ 5,530 Accounts receivable, net 36,428 61,916 Inventories, net 149,337 157,601 Other current assets   7,992   12,357 Total current assets 200,907 237,404   Net property, plant and equipment 105,911 109,109 Other long-term assets   2,142   2,128   Total assets $ 308,960 $ 348,642   Other current liabilities $ 45,147 $ 72,870 Current portion of long-term debt   75,697   87,538 Total current liabilities 120,844 160,408   Long-term debt 12,000 15,125 Deferred income tax liability 20,242 21,288   Total equity   155,874   151,821   Total liabilities and equity $ 308,960 $ 348,642     CASH FLOW DATA (Dollars in thousands) (Unaudited)             Three Months Ended Nine Months Ended April 30, April 30, 2013     2012 2013 2012 Net cash provided by (used in)

operating activities

$

(1,312

)

$

7,971

$

29,230

$

38,768

  Depreciation and amortization $ 3,512   $ 2,742 $ 10,563 $ 7,865   Cash paid for capital expenditures $ 1,209   $ 9,905 $ 7,288 $ 30,328  

Note: Amounts may not sum due to rounding.

Webco Industries, Inc.Mike Howard, 918-241-1094Chief Financial Officermhoward@webcoindustries.com