Overview

• U.S. steel tubing maker's fiscal Q3 revenue rose 16% yr/yr, net income increased

• Gross profit margin for fiscal Q3 improved to 16.1% from 13.7% yr/yr

• Company refreshed stock buyback program in March, authorizing up to $6 mln in repurchases

Outlook

• Company did not provide specific guidance or forecasts for future quarters or fiscal year

Result Drivers

• HIGHER PROFITABILITY COSTS - SG&A expenses increased due to higher profitability, leading to more incentive compensation and variable pay, as well as inflation in wages and other expenses

• HIGHER INTEREST EXPENSE - Interest expense rose due to higher average debt balances than in the prior fiscal periods

• CAPITAL SPENDING - Capital expenditures focused on plant equipment updates and improvements

Company press release: ID:nPn669sGMa

Key Details

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