Tyson Bauer's questions to Insteel Industries Inc (IIIN) leadership • Q4 2024
Question
Tyson Bauer of KC Capital questioned Insteel's strategies for mitigating PC strand import pressures beyond trade cases, the historical effect of falling interest rates on construction project timelines, the potential for hurricane-related demand, and the implications of the current cash balance on future special dividends.
Answer
H.O. Waltz (executive) stated that the primary lever against import pressure is correcting the Section 232 tariff loophole, a united effort with industry partners. He opined that current interest rates primarily affect speculative projects and that falling rates could free up capital. Waltz confirmed that hurricane damage is stimulative for demand, particularly for concrete poles and pipes. Regarding capital allocation, he reiterated that the priority is funding growth, with excess cash returned to shareholders, while noting practical difficulties with large-scale share repurchases.