WEBCO INDUSTRIES, INC REPORTS FISCAL 2023 FOURTH QUARTER AND YEAR END RESULTS.

SAND SPRINGS, Okla: Webco Industries, Inc. (OTC: WEBC) today reported results for our fourth fiscal quarter and year ended July 31, 2023.

For our fourth quarter of fiscal year 2023, we had a net income of $8.3 million, or $10.25 per diluted share, while in our fourth quarter of fiscal year 2022, we had net income of $8.2 million, or $10.28 per diluted share. Net sales for the fourth quarter of fiscal 2023 were $156.4 million, a 9.3 percent decrease from the $172.5 million of sales in the fourth quarter of fiscal year 2022.

For fiscal year 2023, we generated a net income of $26.6 million, or $33.19 per diluted share, compared to a net income of $48.4 million, or $59.61 per diluted share, for the same period in fiscal year 2022. Net sales for the current fiscal year amounted to $686.9 million, a 2.4 percent decrease from the $704.0 million in sales for last year.

In the fourth quarter of fiscal year 2023, we had income from operations of $10.5 million after depreciation of $3.7 million. The fourth fiscal quarter of the prior year generated income from operations of $11.1 million after depreciation of $3.4 million. Gross profit for the fourth quarter of fiscal 2023 was $24.5 million, or 15.8 percent of net sales, compared to $21.1 million, or 12.2 percent of net sales, for the fourth quarter of fiscal year 2022.

Our income from operations for fiscal year 2023 was $38.9 million, after depreciation expense of $13.5 million. Income from operations in fiscal year 2022 was $64.8 million, after depreciation expense of $14.0 million. Gross profit for fiscal year 2023 was $89.4 million, or 13.0 percent of net sales, compared to $118.1 million, or 16.8 percent of net sales for fiscal year 2022.

Dana S. Weber, Chief Executive Officer and Board Chair, stated, "There are many different ways the go-forward economy could turn and little consensus on which direction is the most likely. As such, we continue to focus on positioning Webco for various economic environments by maintaining a strong balance sheet and good liquidity and making compelling investments in our business. Our total cash, short-term investments and available credit on our revolver were $89.4 million at July 31, 2023, which we believe to be a competitive advantage."

Selling, general and administrative expenses were $14.0 million in the fourth quarter of fiscal 2023 and $10.0 million in the fourth quarter of fiscal 2022. SG&A expenses were $50.5 million in fiscal year 2023 and $53.3 million...