Webco Industries reported results for company's fiscal 2016 third quarter ended April 30, 2016. Net loss was $0.2 million, or a loss of $0.29 per diluted share.
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This compares to net income of $0.5 million, or $0.64 per diluted share, for the third quarter in fiscal 2015. Net sales were $78.5 million, a 23.8 percent decrease from the $103 million of sales in last year’s third quarter.
The current quarter includes a non-cash gain of less than $0.1 million related to company's interest swap contract, whereas the prior year third quarter includes a $0.5 million non-cash gain related to the interest swap contract.
For the first nine months of fiscal year 2016, we generated a net loss of $2.6 million, or $3.19 per diluted share, compared to a net loss of $0.2 million, or $0.27 per diluted share, for the same period in fiscal 2015.
Net sales for the first nine months of the current year amounted to $246.3 million, a 21.8 percent decrease from the $315.1 million in sales for the same nine-month period of last year.
Results for the first nine months of the current year include a $0.7 million noncash loss related to the interest swap contract, whereas the prior year same nine-month period contained a $1.4 million non-cash loss on the contract.
In the third quarter of fiscal year 2016, we generated income from operations of $0.3 million, after depreciation of $2.9 million. Income from operations in the third fiscal quarter of the prior year was $1.3 million, after depreciation amounting to $3.1 million.
Gross profit for the third quarter of fiscal 2016 was $6.3 million, or 8.0 percent of net sales, compared to $7.4 million, or 7.2 percent of net sales, for the third quarter of fiscal 2015.
We had a loss from operations for the first nine months of fiscal year 2016 of $1.6 million, after depreciation expense of $8.8 million, while income from operations for the same period in fiscal 2015 was $3.5 million, after depreciation expense of $9.0 million.
Gross profit for the first nine months of fiscal 2016 was $15.7 million, or 6.4 percent of net sales, compared to $22.0 million, or 7.0 percent of net sales for the same period in fiscal year 2015. ■