Insteel Industries Inc. (NASDAQ:IIIN) Q2 2018 Earnings Conference Call - Preliminary Transcript
Apr 23, 2018 • 10:00 am ET
Good day, ladies and gentlemen, and welcome to the Insteel Industries' First Quarter 2018 Earnings Conference call. At this time all participants are in a listen-only mode, following management prepared remarks, we will host the question-and-answer session. And the instruction will be given at that time. (Operator Instructions) As a reminder, this conference call may be recorded for replay purposes. It is now my pleasure to hand the conference over to Mr. H. Woltz, Chief Executive Officer. Sir, you may begin.
Good morning. Thank you for your interest in Insteel and welcome to our first quarter 2018 earnings call, which will be conducted by Mike Gazmarian, our Vice President, CFO and Treasurer, and me.
Before we begin, let me remind you that some of the comments made on today's call are considered to be forward-looking statements, which are subject to various risks and uncertainties that could cause actual results to differ materially from those projected. These risk factors are described in our periodic filings with the SEC. All forward-looking statements are based on our current expectations and information that is currently available. We do not assume any obligation to update these statements in the future to reflect the occurrence of anticipated or unanticipated events, or new information.
I'll now turn it over to Mike to review our first quarter financial results and the macro indicators and outlook for our markets, and then I will follow up to comment more on business conditions and our recent acquisition of Ortiz Engineered Products.
Thank you, H. and good morning to everyone joining us on the call. As we reported earlier today, Insteel's results for the first quarter of fiscal 2018 were favorably impacted by our rebound in shipments from the disappointing levels of the previous two quarters and the enactment of the Tax Cuts and Jobs Act in December.
Net earnings rose to $8.1 million or $0.42 per diluted share from $4.5 million or $0.23 per share in the prior year quarter. Excluding the non-recurring gain on the remeasurement of deferred tax liabilities related to the reduction in the corporate tax rate under the new law, earnings per share for the quarter were unchanged from last year at $0.23, but up $0.03 sequentially from the fourth quarter.
Shipments for the quarter were up 1.3% year-over-year and 1.7% sequentially from the depressed levels of Q4 which is highly unusual considering that our volumes typically drop off from the fourth to the first quarter due to the usual seasonal downturn in construction. From a geographic standpoint, the pickup in activity during the quarter was more pronounced in the regions that were impacted by hurricanes Harvey and Irma in August and September with shipments into Texas and Florida both up double digits sequentially, although it's impossible to quantify how much of the increase may have been driven by any deferral of business related to the storms.
On a year-over-year basis, shipments strengthened considerably over the course of the quarter with our December volumes up almost 13% from