Insteel is the nation's largest manufacturer of steel wire reinforcing products for concrete construction applications. We manufacture and market prestressed concrete strand and welded wire reinforcement, including engineered structural mesh, concrete pipe reinforcement and standard welded wire reinforcement.
Insteel manufactures and markets concrete reinforcing products that are used for nonresidential and infrastructure construction. In spite of its name and the fact that hot-rolled steel wire rod is its primary raw material, Insteel should be classified as a manufacturer of building materials rather than in the steel sector.
Insteel's products are sold nationwide as well as into Canada, Mexico, and Central and South America. We operate nine manufacturing facilities, which are located in Arizona, Florida (2), Kentucky, Missouri, North Carolina, Pennsylvania, Tennessee and Texas.
It is not possible to generalize as to how changes in steel prices will impact Insteel's financial results. Of greater importance are the market conditions for our products and competitive dynamics. Ultimately supply and demand for Insteel's finished products determines whether margins expand or contract during periods of rising or falling wire rod prices.
The commercial segment of Insteel's PC strand business is the only market served by the Company that is significantly impacted by import competition. The government-funded segment of the market is subject to "Buy America" requirements which prohibit the use of foreign-sourced material. However, import pricing can influence the governmental segment as well depending upon comparative market conditions.
We continually review a range of alternative uses for excess cash which includes changes in our cash dividend payout, share repurchases, and acquisitions. Any such decisions will be consistent with Insteel's long-term strategic objectives, ensuring that we maintain the flexibility to pursue future growth opportunities and sufficient liquidity to withstand future economic or cyclical downturns.
Insteel currently pays cash dividends on a quarterly basis. While we intend to pay regular quarterly cash dividends for the foreseeable future, the declaration and payment of future dividends, if any, are discretionary and will be subject to determination by our board of directors each quarter after taking into account various factors, including general business conditions and the Company's financial condition, operating results, cash requirements and expansion plans.
If your shares are held by a broker or investment advisor, that firm or advisor should be your primary contact. If you hold your shares directly (holding your own certificate), please contact Insteel's transfer agent, American Stock Transfer & Trust Company. All inquiries can be directed to:
American Stock Transfer & Trust Company
6201 15th Avenue
Brooklyn, New York 11219