**U.S. SECURITIES AND EXCHANGECOMMISSION****Washington, D.C. 20549****Form 10 K/A****Amendment 2**

[X] ANNUAL REPORT PURSUANT TO SECTION 13OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended July 31, 2003

 OR

[  ] TRANSITION REPORTPURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from __________ to __________

Commission File No. 0 23242

**WEBCO INDUSTRIES, INC.**(Exact name of registrant as specified in its charter)

         Oklahoma                                                                              73 1097133       (State or other jurisdiction                                                               (I.R.S. Employerof incorporation or organization)                                                           Identification Number)

9101 West 21st StreetSand Springs, Oklahoma  74063(Address of principal executive offices, including zipcode)

Registrant's telephone number, includingarea code (918) 241 1000SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THEACT:  NoneSECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THEACT:

Common Stock, par value $.01(Title of class)

            Indicate by check mark whether the registrant (1) has filed all reports required tobe filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during thepreceding 12 months (or for such shorter period that the registrant was required to filesuch reports), and (2) has been subject to such filing requirements for the past 90days.  Yes [X]     No [    ]

             Indicateby check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S K(Sec. 229.405 of this chapter) is not contained herein, and will not be contained, to thebest of registrant's knowledge, in definitive proxy or information statements incorporatedby reference in Part III of this Form 10 K or any amendment to this Form 10 K.  [  ]

             Indicate by check mark whether the registrant is an accelerated filer (as definedin Rule 12b-2 of the Exchange Act).     [   ]Yes     [ X ] No

As of September 30, 2003, the aggregate marketvalue of the voting stock held by non-affiliates of the registrant was $8,431,000. 

On September 30, 2003, the number of sharesoutstanding of the registrant's common stock, $.01 par value, was 7,081,723 shares.

             **DOCUMENTS INCORPORATED BY REFERENCE:**  Portions of the Proxy Statement for theregistrant's 2003 Annual Meeting of Stockholders are incorporated by reference into Items10, 11, 12, 13 and 14 of Part III of this Form 10-K.

 

**EXPLANATORY NOTE**

           This Amendment No. 2 on Form 10-K/A amends Item  9A of the Annual Report on Form 10-Kof Webco Industries, Inc. (the "Company") for the fiscal year ended July 31,2003, as filed with the Securities and Exchange Commission on October 29, 2003 and amendedon March 4, 2004 by Form 10-K/A - Amendment 1 (the "Annual Report").  ThisAmendment No. 2 reflects certain wording changes to Item 9A as required by theSarbanes-Oxley Act of 2002 that were effective August 14, 2003 and does not affectpreviously reported amounts in the Company's Consolidated Balance Sheets or ConsolidatedStatements of Operations or Cash Flows.

           For convenience and ease of reference, the Company is filing this Annual Report in itsentirety, excpet for certain exhibits previously filed, with the applicable changes. Unless otherwise stated, all information contained in this amendment is as of October 29,2003, the original filing date of the Annual Report.  This Form 10-K/A does notreflect events or transactions occurring after such filing date or modify or update thosedisclosures in the Annual Report that may have been affected by events or transactionsoccurring subsequent to such filing date.

           As discussed in Note 1A of the Notes to Consolidated Financial Statements, the Form10-K/A-Amendment 1, filed on March 4, 2004, restated the balance sheet classification ofoutstanding debt under the  Company's Senior Revolving Line of Credit("LOC") from long-term debt to current liabilities.  Accounting principlesrequire current classification of revolving lines of credit that permit borrowings on along-term basis when the line of credit contains both a lock-box arrangement, wherebyremittances to the lockbox automatically pay down the outstanding LOC, and loan terms thatallow the lender to declare the loan in default on a subjective basis.  Thisaccounting treatment is required regardless of the legal maturity date of the revolvingcredit arrangement.  The Company's LOC, which matures May 1, 2005, contains suchfeatures and accordingly, the accompanying financial statements were restated toreclassify outstanding borrowings under the LOC to "Current portion of long-termdebt".  This change in balance sheet classification does not affect theConsolidated Statements of Operations or Consolidated Statements of Cash Flows.

           
| **WEBCO    INDUSTRIES, INC. AND SUBSIDIARY**      
**TABLE OF    CONTENTS**        
**Page**    
**PART I**      Item    1.     Business        
3Item    2.     Properties      
14Item    3.     Legal Proceedings     
15Item    4.     Submission of Matters to a Vote of Security Holders
15    
**PART II**      Item    5.     Market for Registrant's Common Stock and Related                       Stockholder Matters            
15Item    6.     Selected Financial    Data          
16Item    7.     Management's Discussion and Analysis of Financial                       Condition and Results of Operations
17Item 7A.  Quantitative and Qualitative    Disclosures about Market Risk
24Item    8.     Financial Statements and Supplementary Data
26Item    9.     Changes in and Disagreements with Accountants on                       Accounting    and Financial Disclosure
46Item 9A.  Controls and    Procedures
46    
**PART III**      Item 10.      Directors and Executive Officers of the Registrant
46Item 11.      Executive Compensation
46Item 12.   Security    Ownership of Certain Beneficial Owners                       and Management
46Item 13.   Certain    Relationships and Related Transactions
47Item 14.      Principal Accountant Fees and Services 
47    
**PART IV**      Item 15.      Exhibits, Financial Statement Schedules and 
47                     Reports on Form 8 K          
**WEBCO INDUSTRIES, INC. AND SUBSIDIARY**

**FORM 10 K**

**PART I**

**ITEM1.          BUSINESS**
**General         Webco Industries, Inc., anOklahoma corporation, was founded in 1969 by F. William Weber, Chairman of the Board andChief Executive Officer.  Webco is amanufacturer and value-added distributor of high-quality carbon steel, stainless steel andother metal tubular products designed to industry and customer specifications. Webco's tubing products consist primarily of pressure tubing and specialty tubing for usein durable and capital goods including heat exchangers, boilers, autos and trucks, andhome appliances.  The Company's long-term strategy involves the pursuit of nichemarkets within the tubing industry through the deployment of leading-edge manufacturingand information technology.  The Company has three production facilities in Oklahomaand Pennsylvania and five distribution facilities in Oklahoma, Texas, Illinois andMichigan, serving more than 1,000 customers throughout North America.

       The Company’s philosophy is to pursue growth and profitability through theidentification of niche markets for tubular products where the Company can provide a highlevel of value-added engineering and customer service in order to become the marketleader.

       Unless the context otherwise requires, the information contained in this report, and theterms "Webco" and the "Company" when used in this report, includeWebco Industries, Inc. and its subsidiary, Phillips & Johnston, Inc.("P&J"), on a consolidated basis.

**Industry Overview**        Tubing producers occupy amanufacturing niche between the primary steel producers and customers who utilizeprecision tubing in the manufacture of products primarily for the durable and capitalgoods industries.  As contrasted with commodity pipe producers, tube millsmanufacture products which are engineered and tailored for more specialized and criticalend-use applications such as automotive components and petrochemical applications. 

        The tubingindustry was once dominated by the major integrated steel producers.  Over time,these integrated producers lost their competitive advantage due to higher cost structuresand lagging technology and have largely withdrawn from this segment.  While theindustry has experienced some consolidation over the last several years and less efficientproducers rationalized, the industry continues to be highly fragmented and is comprised ofindependent producers that occupy relatively focused market niches.

        The tubingindustry has been affected by several trends that are expected to continue.  First,customers’ increasing emphasis on just-in-time inventory methods has required tubingproducers to increase operating efficiencies to accommodate more frequent, smaller sizedorders, and has placed greater emphasis on technology advances, inventory management andcost controls.  Second, customers’ desires to cut operating costs through theoutsourcing of specific processing functions, such as tube manufacturing, has created theopportunity for third-party tubing producers to replace production from captivemills.  The slow-down in the U.S. economy, most notably in the manufacturing sector,the volume of foreign steel imports coming into U.S. markets, current trade tariffs, anddomestic over-capacity have caused volatility in the price of finished goods and the costof steel sheet coil, the principal raw material used in the manufacture of tubingproducts.

**TUBING MANUFACTURING PROCESSES**

**Manufactured Products**

**Electric Resistance Carbon Steel Weld Process: **TheCompany maintains inventories of carbon steel sheet coils from which it manufacturestubing using electric resistance welding.  This steel is in the form of a continuoussheet, typically 48 to 60 inches wide, between .049 and .500 inches thick, and weighingapproximately 15 to 20 tons.

        All customerorders for manufactured products are entered into a computerized order entry system, andthe appropriate steel coil inventory is selected and scheduled for processing inaccordance with the customer’s delivery date and product specifications.  TheCompany attempts to maximize efficiency by combining orders to optimize mill productionand by ordering the size changes in a manner that reduces the amount of setup timenecessary to move from one order to the next.

        Themanufacturing cycle begins with the slitting of wide coils into narrower bands.  Theoutside diameter of the tube to be produced determines the width of the slit band. Steel coils less than .180 and .250 inches thick are slit to pre-designated widths at theSand Springs and Oil City facilities, respectively, using Company equipment. Steelcoils over those limits are slit by outside vendors. Conversion from slit band tocarbon and alloy tubes is accomplished by (i) continuously roll forming into the desiredtubular diameter; (ii) continuously welding the edges; and (iii) cutting to approximatefinished length or multiples thereof.  After the tube has been welded, and dependingupon product specifications, it may be moved to additional processing stations such asannealing (heat treatment through an atmospherically controlled roller hearth furnace),straightening through rotary straighteners, and finishing (i.e., cut-to-length,non-destructive test, stencil, oil coat and package).  The Company also utilizesoutside vendors for certain value-added processing.  The Company has stringentquality control standards in place at each stage of the manufacturing process.

        This processproduces welded pressure and specialty tubing and cold draw hollows (the raw material forthe cold drawing process, which does not go through the finishing process).  Hollowsare primarily used for specific pressure and specialty tubing cold draw orders; however,smaller amounts are produced for inventory.

**Carbon Steel Cold Drawing Process: **TheCompany uses manufactured cold draw hollows and seamless tube hollows purchased fromoutside vendors as the raw material for the cold drawing process, which produces variouspressure and specialty tubing products.  Most of the welded hollows are manufacturedby the Company’s own weld mills, while seamless hollows are all purchased from othermanufacturers.  The Company currently offers precision, made-to-order cold drawnproducts from approximately .05 inch to .50 inch in wall thickness and from .50 inch to5.0 inch in outside diameter for pressure and specialty tubing applications.  Colddrawing permits greater flexibility and precision (as compared to the welding process) inmeeting customer specifications of tube diameters, wall thickness and othercharacteristics.

        Cold drawingorders are entered into a computerized order entry system.  Raw materials areselected to optimize yields and efficiency and to meet the customer’s specificationsand required delivery schedule.  After the proper material has been selected for eachspecific order, it is cut to the desired length.  The tube is then (i) pickled andlubricated, (ii) pointed to taper the tube end, and (iii) cold drawn through a die andover a mandrel (cold reduction of outside diameter, inside diameter and elongation oftube).  After the cold drawn tube has been manufactured to finished size, it is movedto additional processing stations such as annealing, straightening and finishing. The Company also utilizes outside vendors for certain value-added processing.

**Welded Stainless Tube Process:**The manufacturingcycle for the stainless steel and high alloy weld mill operations begins with customerorders being entered into the computerized order entry system.  After receipt ofsteel coils slit to a pre-designated width by the vendor, slit coils are selected and fedinto the stainless weld mills to be formed into a tubular shape and welded by an automatedgas or laser welding process.  Tubes are then annealed, cooled, straightened,stenciled, non-destructively tested, cut to length and packaged for shipment.  Forsome special customer requirements, the tubing is coiled to lengths up to 40,000feet.  Much of the processing is performed in a continuous operation.  TheCompany also utilizes outside vendors for certain value-added processing.  Stainlessprocessing produces pressure and specialty tubing and small diameter stainless pipe. The majority of stainless products are made-to-order.

**Tubing Facilities**

        The Companyhas three manufacturing facilities for producing carbon or stainless steel tubingproducts.  The largest facility is located in Sand Springs, Oklahoma, which producesa wide range of carbon steel pressure and specialty tubing products.  This facilityhas been in operation since the Company began in 1969.  The Company also has afacility in Oil City, Pennsylvania, which produces carbon steel pressure and specialtytubing products.  The third facility in Mannford, Oklahoma, produces stainless steeland high alloy pressure and specialty tubing products.

        Thefollowing table sets forth the processing and other techniques performed at Webco'sfacilities:
  
                   Manufacturing                              
                                          Distribution                                       l  
Sand
Oil  
Sand    
Grand
Glen  
Springs,
City,
Mannford, 
Springs,
Nederland,
Lyndon,
Rapids,
Ellyn,  
OK
PA
OK
OK
TX
IL
MI
ILCold Drawing
X
X            Slitting
X
X            Welding
X
X
X          Annealing
X
X
X
X
X      Straightening
X
X
X          Cut-to-Length
X
X
X
X
X
X
X
XIntegral Finning      
X        Electronic Non-Destructive    Testing:                             Eddy Current
X
X
X               Ultra-Sonic
X
X
X          Hydro-Static Testing
X  
X
X        Stenciling
X
X
X          Bending    
X
X
X  
X  Bar Coding
X
X
X
X
X
X
X
XComputerized Shop Floor Control
X
X
X
X
X      Metallurgical Lab
X
X
X          Spectrometer
X              Statistical Process Control
X
X
X                   
**INDUSTRY SEGMENTS**      The Company applies the provisions of Statementof Financial Accounting Standards No. 131, "Disclosures about Segments of anEnterprise and Related Information"(FAS 131).  The Company internally evaluatesits business by facility; however, because of the similar economic characteristics of thetubing operations, including the nature of products, processes and customers, thoseoperations have been aggregated for segment determination purposes.  The Company'scontinuing operations only include activities related to the manufacturing anddistribution of tubular products principally made of carbon, stainless and high alloysteels.

**PRODUCTS**

**Pressure and Specialty TubingProducts**        The Company produces tubing fora wide variety of markets and end-use applications.  The Company seeks to identifyniche markets and customers that have been serviced by higher cost and lower servicecompetitors.  The percentage breakdown of net sales for the Company's main productswas as follows for the last three fiscal years:
  
**      2003  -**
**      2002  -**
**      2001  -**Specialty tubing
64 %
59 %
61 %Pressure tubing and pipe
         32     
         38     
         35     Freight, scrap and other
           4     
           3     
           4     Total
    100 %
    100 %
    100 %
        Following isa detailed description of the Company’s tubing products by the major end-use markets:

**Pressure Tubing and Pipe: **The Company is afull service manufacturer and value-added distributor of pressure tubing and pipe, whichincludes tubing utilized in heat exchanger, boiler and piping applications.  TheCompany supplies a variety of pressure tubing and pipe products to the refining,petrochemical, chemical, pulp and paper, pharmaceutical, gas transmission and electricpower industries.  These industries are serviced by the Company's three manufacturingand two distribution facilities in Oklahoma, Pennsylvania, and Texas.  Through itsmanufacturing facilities and sourcing partners, the Company offers carbon steel, alloysteel, stainless steel, copper, brass, nickel alloy and various other tubular products tothese industries.  Such products may be welded or seamless and may be cut, bentand/or finned to customer specifications at the distribution warehouses.  The Companybelieves that its combination of manufacturing and distribution capabilities for carbonsteel, alloy steel and stainless steel, provides a strategic advantage over itscompetitors.

        Over the pasttwo years, the pressure tubing and pipe industry has been impacted by low demand in thepetrochemical, pulp and paper and power generation industries.  U.S. import tariffsimposed in the spring of 2002 on flat rolled carbon steel and the continuingrationalization of domestic flat rolled carbon steel production, due to steel producerplant closures and bankruptcies, has caused an increase in the price of domestic carbonsteel coils, the raw material for the Company’s carbon steel tubes.  Both thelower demand for finished tubing and the raw material environment has caused pressuretubing margins to decrease.  During this period of slow demand, the Company hasworked hard to develop and expand its distribution capabilities and expects to relocatefrom its 58,000 square foot Nederland, Texas, facilities in late-2004 to a leased 125,000square foot, value-added pressure tube distribution facility in Orange, Texas.  TheCompany is also working to expand its product offerings to the pressure tubing markets,not only in its welding of carbon and stainless pressure tubing, but in pressure tubingacquired from outside sourcing partners.  The Company believes that these developmentactivities have positioned it to take advantage of growth opportunities that might becaused by our customers’ compliance with Federal regulations regarding refineryemissions and a possible resurgence of power plant construction should such events occur.

**Specialty Tubing:**Specialty tubing consists oftubular goods made of carbon and stainless steel, copper, brass, aluminum and surgicalsteel.  Most of the products the Company manufactures from its cold draw processesare for specialty tube applications.  Through its manufacturing capabilities and itssourcing partners, the Company provides tubing to a variety of end use applications. These end-uses include, but are not limited to the following durable and capital goods:instruments for the petrochemical industry, hydraulic cylinders, automotive components,appliances, oil & gas applications, heating and ventilation and farm equipment. In many cases, the Company provides just-in-time inventory management for its customersusing its combined manufacturing and distribution capabilities and through strategicrelationships with distribution customers and partners.  The Company is a relativelysmall producer in the overall specialty tubing market, but continues to pursue nicheopportunities for growth.

        Withincreased stainless capacity and expanded capacity in Oil City, the Company has targetedthe specialty tubing market as a growth area over the next several years.  Thismarket continues to undergo a major change in which final assembly manufacturers(automotive, appliance, etc.) outsource component parts and emphasize just-in-timeinventory management to reduce production costs.  Webco believes that this market,which is largely comprised of original equipment manufacturers (“OEMs”),provides an opportunity for the Company to gain market share by utilizing itstechnological capabilities to offer superior quality, on-time delivery, customer service,and customized products at competitive prices.

**Quarterly Effects and Seasonality**        Orderrates generally tend to be lower during mid-summer and December as many of theCompany’s customers schedule plant shutdowns for plant maintenance.  Inaddition, the Company experiences some seasonality in stainless products during its thirdfiscal quarter, which may result in reduced net sales and income for that period.

**Backlog**        The Company’s firm backlog of orders at July 31, 2003 and 2002 wereapproximately $34.5 million and $31.3 million, respectively.  Orders, including aportion of the orders considered firm, are generally cancelable by the customer until workhas commenced and the Company has committed resources; thereafter, orders are generallycancelable by the customer only upon payment of a cancellation penalty, which may includecosts for raw materials, tooling, engineering, etc.  The Company's backlog is notnecessarily indicative of the expected level of future revenues and can be affected byproduct mix, since the different markets served by the Company have differing lead timesand order flow processes.

**Competition**        Tubing manufacturing and distribution is a highly competitive market, evidencedby the number of bankruptcies, foreclosures and plant closures over the past severalyears.  While fewer competitors can create new opportunities for the Company, it alsodemonstrates the impact of foreign imports and the ability of tubing customers to movefacilities to foreign countries, both of which can act to decrease demand for domesticallymanufactured tubing.  Companies compete on the basis of price, quality, service andability to deliver orders on a timely basis.  Public data concerning the size of themarkets in which the Company participates is not readily available since almost all of thelarge competitors are privately held or do not provide detailed segment disclosures oftheir tubing activities.  The Company believes that it is a domestic leader in themanufacture and distribution of pressure tubing and certain stainless steel and high alloytubing products.  The Company believes that its manufacturing and distributioncapabilities provide a strategic advantage over its competitors.  Although theCompany has a small share of the overall specialty tubing market, management believes thatit is well positioned to increase its market share over the next several years bycontinuing to focus on niche applications.

        TheCompany’s major competitors include Tubes, Inc. and Lone Star Technologies for carbonpressure tubing, Rath/Gibson Tube, Synalloy Corporation and Associated Tube for stainlesspressure products, and LTV-Copperweld, PTCAlliance, Metalmatic, Plymouth Tube,Rath/Gibson, Sharon Tube and Lone Star Technologies for specialty tubing.  Certain ofthese competitors are larger and have access to greater financial resources than theCompany.  Most of these competitors are unionized.

        TheCompany believes that its non-union status, geographic balance, focused niche strategy,product quality, information technology, customer service and continued emphasis ontechnological innovations position it to compete effectively within each of its nichemarkets.

**Quality Control**        The supply of quality products and service is critical to the Company’ssuccess.  To help foster continuous improvements in quality and service, the Companyadheres to a total quality management system based upon ISO 9000 quality systemstandards.  In support of the total quality management system, the Company hascreated an environment that emphasizes and utilizes teamwork to support continuousimprovement of quality and service.  The following table summarizes theCompany’s quality certifications for each of its facilities:
**             Location**
**Certification**
**Year Achieved**Sand Springs, Oklahoma manufacturing facility
ISO 9002
1994  
QS 9000: 3rd ed.
1998      Oil City, Pennsylvania manufacturing facility
ISO 9002
1994  
QS 9000: 3rd ed.
1998      Mannford, Oklahoma manufacturing facility
ISO 9001:2000
2003      Phillips & Johnston facilities
ISO 9001:2000
2003
        Fundamentalto the Company’s quality system is the control of the product and process, from rawmaterial procurement to the ultimate delivery of finished goods to the Company’scustomers.  On a test basis, physical and chemical analyses are performed on rawmaterials to verify that their mechanical and dimensional properties, cleanliness, andsurface characteristics meet Company and industry requirements.  The Company has alsodeveloped stringent process controls including Statistical Process Control,non-destructive testing methods, and standardized operating and inspection procedures toprovide assurance of quality and to ensure that the customer’s requirements are metthroughout the manufacturing process.

**Suppliers**        The Company purchases steel sheet coil from a number of primary steel producersincluding, but not limited to, Nucor, Wheeling-Pittsburgh Steel Corp., ISG, Dofasco, SteelTechnologies and Gallatin Steel for carbon steel, and Allegheny Rodney, North AmericanStainless and Outokumpu for stainless steel.  Webco monitors and purchases some rawmaterial from foreign sources as economic conditions dictate.  However, the greatestpercentage of Company purchases is from domestic suppliers.  The Company orders steelto specified physical characteristics and chemistry.  By purchasing in largequantities at consistent predetermined intervals, Webco is able to obtain quality rawmaterials at competitive prices.  All increments of the cost of purchasing andlanding steel are continuously monitored, reviewed and acted upon.  Interruptions insupply from its main suppliers could impact the landed cost of new purchases and/orproduction and delivery delays.

        TheCompany also purchases finished welded and seamless pressure and specialty tubing madefrom carbon and stainless steel, copper, brass, aluminum and surgical steel from foreignand domestic sources as economic conditions and customer demand dictate.  The Companyorders the tubing to specified physical characteristics and chemistry based on industryand customer specifications.  Webco believes that it is not dependent on any one ofits suppliers for finished goods, however, interruptions in supply could impact customerdeliveries and the cost of new purchases.

        Webcounderstands that the Company's supplier base for materials is critical to meeting itscustomers’ needs.  Constant effort is directed towards developing long-termsupplier partners who can provide acceptable quality, competitive prices and dependabledelivery.     

**Marketing and Customer Service**        The Company’s sales andmarketing efforts for its products are directed by the Senior Vice President of TubingOperations, the President of P&J, and Webco's product sales managers.  Theseefforts are supported by its distribution organization, internal and external sales staffand technical services group.  The Company also emphasizes the use of its technicaland engineering support staff in its product development and marketing efforts.  TheCompany’s technical services, operating, engineering, quality, sales, productplanning and purchasing staffs work closely with customers and suppliers to developproducts that meet specific customer needs.  Variables in the product developmentprocess include the steel’s microstructure, chemistry, mechanical properties, surfacefinish, machinability, and product consistency.  The Company believes this process isessential to its sales effort and provides the Company with a competitive advantage.

**Customers and Distribution**      The Company manufactures and distributes tubularproducts for sale to a diverse group of more than 1,000 customers.  No singlecustomer represents in excess of 7.5% of the Company’s net sales.  TheCompany’s ten largest customers represent approximately 28% of net sales.  Themajority of the Company’s sales are made directly to industrial customers, includingmanufacturers of heat exchangers, HVAC equipment, appliances, automotive components, powergeneration equipment, waste heat recovery systems, industrial and commercial boilers, andother durable goods.

        While theCompany ships product throughout North America, many of its markets and customers arelocated within a 500-mile radius of its manufacturing and distribution locations.  Asit concerns these markets and customers, this geographic advantage places the Company in amore cost competitive position relative to many of its competitors.  The Companytransports product for local delivery via Company-owned or leased vehicles.  Longerdistance deliveries are generally made via independent trucking firms.

        The Companyoffers its finished product for shipment directly from its three manufacturinglocations.  In addition, the Company also inventories finished goods and functions asits own value-added distributor for some of its markets.  Such markets and customersare served on a just-in-time basis from the Company’s distribution locations inOklahoma, Texas, Illinois and Michigan.  Finished goods inventories for distributiongenerally are suitable for sale to many customers and generally are not unique to aspecific customer’s needs.

        The Companybelieves that its long-term relationships with many of its customers are a significantfactor in its business and that pricing, quality, service and the ability to deliverorders on a timely basis are the most critical factors in maintaining theserelationships.  Company executive officers actively participate in the Company’smarketing efforts and have developed strong business relationships with senior managementof many of the Company’s principal customers.

**Government Regulation**        The Company’s manufacturingand distribution facilities are subject to many federal, state, and local requirementsrelating to the protection of the environment.  The Company continually examines waysto reduce emissions and waste and reduce costs related to environmental compliance. The Company has an in-house environmental team leading the Company’s environmentalprogram.  Management’s philosophy is to implement environmental controls thatmeet or exceed current and foreseeable legal requirements.  Management believes theCompany is in material compliance with all environmental laws, does not anticipate anymaterial expenditure to meet environmental requirements, and generally believes that itsprocesses and products do not present any unusual environmental concerns.  

        TheCompany’s operations are also governed by laws and regulations relating to workplacesafety and worker health, principally the Occupational Safety and Health Act andregulations thereunder which, among other requirements, establish lifting, noise and duststandards.  Management believes it is in material compliance with these laws andregulations and does not believe that future compliance with such laws and regulationswill have a material adverse effect on its results of operations or financial condition.

        TheCompany is subject to the regulatory and reporting requirements of the Sarbanes-Oxley Actof 2002.  Management believes it is in material compliance with the new provisionsset forth under the Act.  Management does anticipate, however, that current andfuture compliance with such provisions, including the Section 404 certification ofinternal controls by our Independent Auditors, will result in increased consulting, auditand legal fees.  The ultimate cost of the Company’s compliance with therequirements of the Sarbanes-Oxley Act has not been determined, although the most costlyprovisions will not be required until the Company’s fiscal year ended July 31,2005.    

**Employees**        As of September 30, 2003,the Company employed 850 people.  None of the Company’s employees are covered bycollective bargaining agreements.  The Company has never experienced a significantwork stoppage and considers its employee relations to be good.

**Key-Man Insurance****        **In January 2003, theCompany cashed in two key-man, whole-life insurance policies on F. William Weber, Chairmanof the Board and Chief Executive Officer and received cash value proceeds of$822,000.  At July 31, 2003, the Company does not have any outstanding key-man lifeinsurance policies on any of its executives or directors.   

**FORWARD-LOOKING STATEMENTS**

        Certainstatements in this Annual Report on Form 10-K, including statements preceded by, orpredicated upon the words "anticipates", "appears","believes", "expects", "hopeful", "plans" or"should", constitute “forward-looking statements” within the meaningof the Private Securities Litigation Reform Act of 1995.  Such forward-lookingstatements involve known and unknown risks, uncertainties and other important factors thatcould cause the actual results, performance or achievements of the Company, or industryresults, to differ materially from any future results, performance or achievementsexpressed or implied herein.  Such risks, uncertainties and factors include, amongothers: 

**General Economic and Business Conditions**        Many of the Company’sproducts are sold to industries that experience significant fluctuations in demand basedon economic conditions or other matters beyond their control.  No assurance can begiven that the Company will be able to increase or maintain its level of sales in periodsof economic stagnation or downturn, government regulation, war, terrorist attack or otherpotential disruptions.  Furthermore, no assurance can be given that the Company willnot incur significant losses on accounts receivable or inventory as a result ofunanticipated events or an economic downturn.

**Competition from Imports**        The volume and pricing ofimported tubular products significantly impacts the domestic tubular productsmarket.  While U.S. trade tariffs have increased the cost of rolled steel coils, manyof the types of products that compete with those manufactured by the Company are not beingaffected by the tariffs imposed in the spring of 2002.  In addition, the strength ofthe U.S. Dollar, lower labor costs in other countries and volume motives of some foreignimporters could create circumstances where product pricing is at levels that aremarginally profitable or even unprofitable.  The Company believes that import levelsand import pricing are affected by, among other things, the strength of the U.S. Dollar,overall worldwide demand for tubular products, global economic conditions, the tradepractices of and government subsidies to foreign producers, lower labor costs in othercountries and the weakness or absence of governmentally imposed trade restrictions ortariffs in the United States.  Given the uncertainty in the U.S. economy and certaineconomies of Asia, South America and Eastern Europe, competition from foreign imports isexpected to continue.  Decreases in the strength of the U.S. Dollar will need to besustained for more than a short period of time in order to meaningfully affect theadvantages most foreign importers have over domestic manufacturers.

**Changes in Manufacturing Technology**        Over the past several years,there have been significant advances in the technology relating to the manufacture ofcarbon and stainless steel tubing.  Such advances have impacted the speed at whichtubing can be manufactured, the quality of the tubing, and the types and thickness ofmaterials that can be welded into tubes.  Staying current with advances inmanufacturing technologies is necessary to survive as a competitor with other domesticproducers and foreign imports and to be able to meet the increased demand bycustomers’ for products having greater technical requirements. Staying current withadvances in manufacturing technologies and capabilities requires investment ofcapital.  Manufacturers that do not keep pace with current manufacturing technologiesmay be unable to compete against more efficiently priced products.  Due to thevolatility of the domestic steel industry in recent years, there can be no assurances thatCompany operations, capital availability and economic conditions will continue to allowthe Company to maintain current technologies or to meet the demand for products thatrequire improved technologies.

**Banking Environment**        In the course of managing theUnited States economy, the Federal Reserve affects policy that impacts the cost andavailability of money within the U.S. banking system.  These policy decisions, alongwith the quality of the economy, have a direct impact upon bank credit policies and thecost of funds to the Company.  Continued tightening of credit availability couldnegatively impact the Company's ability to refinance its debt upon maturity or torefinance at terms that are equal to or more favorable than the current debtstructure.  Increases in interest rates could materially impact results of operationsand cash flows at current debt levels.

**Relocation of Domestic Demand and Capacity**        The relative strength of theU.S. Dollar to foreign currencies has caused, in many industries, a flight ofmanufacturing capacity to countries where there exists an economic advantage over U.S.manufacturers.  As a result, certain competitors may have an economic advantage overthe Company due to the Company's U.S. domicile.  Further, the relative strength ofthe U.S. Dollar has caused many companies that consume tubular products to relocate toother countries or to pursue the economic advantage of using suppliers located in foreigncountries, potentially causing a reduction in domestic demand for products manufactured bythe Company.

**Raw Material Costs and Availability**        The Company's largest componentof cost of sales is raw material costs.  These costs can vary over time due tochanges in steel pricing which are influenced by numerous factors beyond the control ofthe Company, including general economic conditions, foreign imports, domestic competition,labor costs, labor and environmental laws, import duties and tariffs and other traderestrictions.  Typically, the Company attempts to pass these changes in cost on tocustomers.  Because there is a relatively small correlation between the short-termfactors driving the finished goods pricing of the Company’s products and the cost ofits raw materials, changes in raw material pricing in some circumstances will affectmargins due to the inability to pass such price increases through to customers. There is believed to be a fairly high long-term correlation between the price of rawmaterials in the tubing industry and the price to the market for finished tubing. However, reductions in the Company's raw material costs often lag behind pressure on theCompany's sales prices or increases in raw material costs may precede increases in theCompany's sales prices, if increases are obtainable, thus decreasing the Company's profitmargins.  Although the Company has long-term relationships with steel coil vendors tohopefully ensure a continued supply of raw material, further price increases could have asignificant impact on profitability and operating cash flows.  Increasing rawmaterial prices during a period of soft demand for tubular products can have a significantnegative impact on margins due to an inability to raise sales prices accordingly.

        High demandfor the products of the domestic steel producers, a weakening of the U.S. Dollar or a shutdown of a producer that is significant to the market can cause a supply and demandimbalance in the market.  In such situations it is possible for suppliers toimplement quotas for the allocation of steel to their customers or otherwise affect theCompany’s ability to procure raw material.  Given the financial condition ofcertain domestic suppliers and the current level of domestic supply, there can be noassurances that raw material supplies will not be interrupted.  Supplier workstoppages due to labor related issues could also have a significant impact on theavailable supply and cost of raw materials.

**Industry Capacity**        The Company and many of itscompetitors, in both the stainless and carbon steel tubing markets, expanded productioncapacity over the past decade to the point of over-capacity in many markets, puttingdownward pressure on pricing.  The influx of foreign goods into the U.S. marketfurther pressured prices and margins and forced some in the industry to exit thebusiness.  The Company has added capacity in recent years and continues to look foradditional opportunities to do so, but only in connection with strategic opportunities incertain niche markets and where there are benefits related to upgrading manufacturingtechnology.

**Domestic Competition**        Tube manufacturing is a highlycompetitive market in which companies compete on the basis of price, quality, service andability to deliver orders on a timely basis.  The Company has different competitorswithin each of its markets served, some of which are larger and have greater financialresources than the Company.  Sales of some of the Company’s products represent ahigh percentage of the market demand for these products, and could be targeted bycompetitors.  Competition from companies operating under bankruptcy protection alsoposes a threat to pricing as such companies reduce their cost structure and concentrate onshort-term cash flow, generally by significantly lowering their prices to customers.

**Loss of Significant Customers and Customer WorkStoppages**        The Company sells its tubularproducts to a diverse group of more than 1,000 customers, the largest of which representsjust less than 7.5% of the Company’s 2003 net sales.  The loss of anysignificant customer, or a work stoppage at a significant customer or in an importantend-use sector, such as automotive, could have an adverse effect on the Company’soperating results.  In addition, the strength of the U.S. Dollar, lower labor costsin other countries, foreign government subsidies and volume motives of some foreignimporters could create circumstances where customers are lost as a result of theirinability to remain competitive causing them to relocate to a foreign country ordiscontinue operations altogether.

**Customer Claims**        The Company manufactures tubularproducts to customer specifications.  Company products are used in highly technicalapplications that require stringent controls over quality and the supply chain.  Fromtime to time, customers can, and do, make claims against the Company for quality issues,delivery penalties and repair and replacement costs.  There can be no assurances thatsuch claims will not deviate from historical experience and have a material impact on theresults of operations and cash flows of the Company.      

**Technical and Data Processing Capabilities**        The Company operates all of itsfacilities on an integrated computer system, which handles all sales, production,accounting and procurement functions.  A failure by the Company’s system for anextended period of time, or the Company's failure to find adequate solutions to anytechnical and data processing issues that may arise, could result in a significantinterruption to the Company's operations.  The Company expects to increasinglyutilize the Internet in its business functions and an interruption in service could resultin disruptions to the Company's operations.  While employing redundant systems iscost prohibitive, the Company continually evaluates its disaster recovery procedures in anattempt to mitigate such risks and exposures.  On an on-going basis, the Company mustcontinue to invest in its information technology capabilities to satisfy increasingcustomer demands for communication and interfacing requirements.  There can be noassurances that the Company will have the capital availability to make all necessaryinvestments.

**Insurance costs and availability**        The Companymaintains property and casualty and liability insurance policies, along with otherpolicies, deemed appropriate for the Company's business environment.  The Company'sinsurance program is evaluated each year by management and an outside insurancebroker.  Subsequent to September 11, 2001, the Company incurred substantial increasesin its insurance premiums, as did most industries, which has forced management to look atcoverage options, including, but not limited to, higher deductibles, different coveragelevels and new carriers, to try and mitigate the rising premium costs. Management believes its current insurance program is appropriate for its businesspurpose.  There can be no assurances that a significant claim against, or loss by,the Company will not exceed insurance coverage levels, or fall outside coveragelimitations, and have a material adverse impact on the Company's operations or financialcondition.

**ITEM 2.         PROPERTIES**

        TheCompany’s principal properties presently consist of three manufacturing plants andfive value-added distribution facilities.  The following sets forth the location,area, and whether the property is owned or leased for all existing facilities:
**             Location**
**Area**
**Owned or Leased**Sand Springs, Oklahoma
281,000 square feet
OwnedManufacturing Facility
26 acres        Sand Springs, Oklahoma
50,000 square feet
OwnedDistribution Facility
18 acres        Mannford, Oklahoma
138,000 square feet
OwnedManufacturing Facility
13 acres        Nederland, Texas
25,500 square feet
Long-term lease with a    purchaseDistribution Facility  
Option of the greater of 93%    of    
FMV or $475,000      Nederland, Texas
32,750 square feet
Month to month leasesWarehouses          Oil City, Pennsylvania
205,000 square feet
OwnedManufacturing Facility
8 acres        Titusville, Pennsylvania
46,700 square feet
Long-term leaseCutting Facility          Titusville, Pennsylvania
18,500 square feet
Month to month leaseWarehouse          Sand Springs, Oklahoma
24,400 square feet
Long-term lease with aCorporate Offices  
Purchase option of $750,000      Sand Springs, Oklahoma
13,500 square feet
Long-term leaseWarehouse          Tulsa, Oklahoma
28,000 square feet
Long-term leaseFinning Facility          Glen Ellyn, Illinois
12,700 square feet
Long-term leaseP&J Corporate Offices     And Distribution Facility          Lyndon, Illinois
33,700 square feet
Long-term leaseDistribution Facility          Grand Rapids, Michigan
38,000 square feet
Long-term leaseDistribution Facility    
           The Company considers all of its properties, both owned and leased, together with therelated machinery and equipment contained therein, to be well maintained, in goodoperating condition, and suitable and adequate to carry on the Company’s business.

**ITEM 3.         LEGAL PROCEEDINGS**

        TheCompany is a party to various lawsuits and claims arising in the ordinary course ofbusiness.  Management, after review and consultation with legal counsel, believesthat any liability resulting from these matters would not materially affect the results ofoperations or the financial position of the Company.  The Company maintains liabilityinsurance against risks arising out of the normal course of business.

**ITEM4.          SUBMISSION OF MATTERS TO A VOTEOF SECURITY HOLDERS**

        There were no matters submitted to Webco security holders during the fourthquarter of fiscal year 2003.

**PART II**

**ITEM5.          MARKET FOR REGISTRANTS COMMONSTOCK****                       AND RELATED STOCKHOLDER MATTERS**

       Webco's common stock is traded on the American Stock Exchange ("AMEX") under thesymbol "WEB." At the close of business on September 30, 2003, there were 268holders of record of Webco's common stock.  The quarterly prices of Webco's commonstock were as follows:
Fiscal Year 2003:HighLowFourth Quarter3.252.64Third Quarter3.502.65Second Quarter3.752.67First Quarter3.803.00      Fiscal Year 2002:    Fourth Quarter5.243.75Third Quarter5.403.10Second Quarter3.602.30First Quarter3.301.80
**Dividends**        The Companycurrently intends to retain earnings to support its growth strategy and reduce debt anddoes not anticipate paying dividends in the foreseeable future.  The Board ofDirectors may reconsider or revise this policy from time to time based upon conditionsthen existing, including the Company's results of operations, financial condition, andcapital requirements, as well as other factors the Board of Directors may deemrelevant.  Under the Company's current loan agreement, the Company may not paydividends without the lender’s consent.
 

 

**WEBCO INDUSTRIES, INC. AND SUBSIDIARY**

**FORM 10 K**

**PART II**
 

**ITEM6.          SELECTED FINANCIAL DATA**

       The following table presents selected financial information for the Company as of the endof and for each of the five years in the period ended July 31, 2003, which has beenderived from the audited Financial Statements of the Company. 

       The selected financial data should be read in conjunction with the Financial Statements ofthe Company and notes thereto and "Management's Discussion and Analysis of FinancialCondition and Results of Operations" appearing elsewhere in this Form 10-K/A. 

**WEBCO INDUSTRIES, INC. AND SUBSIDIARY****Selected Financial Data****For the Years Ended July 31,**(Dollars in thousands, except per share data)            **Income Statement Data:**
**        2003**
**        2002**
**        2001**
**        2000**
**        1999**Net sales  
$ 175,769
$ 156,294
$ 148,279
$ 142,293
$ 135,058Gross profit
17,794
18,815
14,932
19,105
20,965Income from operations (2)
5,468
7,849
2,314 
4,822
7,084            Income (loss) from continuing    operations 
1,918
2,996
(1,494)
536
2,823Loss from discontinued    operation (1) 
-
(908)
(108)
(1,561)
(947)Net income (loss)
1,918
2,088
(1,602)
(1,025)
1,876            Diluted earnings (loss) per    share:             Income (loss)    from continuing operations 
.27
.42
(0.21)
.08
.40   Loss from    discontinued operation (1)
        -
(.13)
(0.02)
(0.22)
(.13)   Net income    (loss)
.27
.29
(0.23)
(0.14)
.27                        **Balance Sheet Data:**          Working capital (restated)
$   11,650
$    7,218
$     9,949
$  12,456
$   19,731Total assets
130,527
123,928
128,347
130,123
120,481 Long term debt (net of    current portion) (restated)
12,100
15,222
25,740
26,306
27,131Stockholders' equity
51,064
49,146
47,046
48,648
49,673
(1)           Theloss from the discontinued operation for all years relates to the operations of QuikWaterand the sale of that separate business segment in 2002.  See Note 4 to theconsolidated financial statements of this Form 10-K/A.

(2)           Fiscalyear 2002 includes a $1.58 million litigation award from an equipment vendor.

**ITEM7.          MANAGEMENT'S DISCUSSION ANDANALYSIS OF****                         FINANCIALCONDITION AND RESULTS OF OPERATIONS**

       The following discussion should be read in conjunction with the“Selected Financial Data” and the Financial Statements of the Company and notesthereto appearing elsewhere in this Form 10-K/A.

**Overview**        The Company'sphilosophy is to pursue growth and profitability through the identification of nichemarkets for tubular products where the Company can provide a high level of value-addedengineering and customer service in order to become the market leader.  The Companyuses its quality standards, information technology, customer service and manufacturingtechnology to achieve such market penetration.

       The Company continues to make significant technology investments and develop its revenuebase in selected niche markets.  The Company experienced continued revenue growthduring the year ended July 31, 2003, primarily due to improved volumes across allfacilities, despite the difficult economy.

        InMay 2002, the Company sold substantially all of the assets of its QuikWater Division andtreated the disposal as a discontinued operation.  The readershould refer to Note 4 - Discontinued Operation, in the footnotes to the consolidatedfinancial statements of this Form 10-K/A for additional information regarding this matter.  

**Results ofOperations**        The followingtable sets forth certain income statement data for each of the three years in the periodended July 31, 2003 (certain amounts may not calculate due to rounding):
  
**2003**
**2002**
**2001**  
DollarAmount
% of Net Sales
DollarAmount
% of Net Sales
DollarAmount
% of Net Sales    
(Dollars    in Millions)                Net sales 
$175.8
100.0%
$156.3
100.0%
$148.3
100.0%Gross profit
17.8
10.1
18.8
12.0
14.9
10.0Selling, general and    administrative expenses
12.3
7.0
12.5
8.0
12.6
8.5Income from operations (1)
5.5
3.1
           7.9
5.1
2.3
1.6
(1) - Fiscal 2002 income fromoperations was positively impacted by the previously disclosed litigation award of$1,580,000.

**Fiscal 2003 Compared with Fiscal2002**        Pressure andSpecialty Tubing Product sales increased $19.5 million, or 12.5 percent, to $175.8 millionin 2003 from $156.3 million in 2002.  The increase in net sales is primarily theresult of improved specialty tubing volumes across all facilities driven by new marketopportunities and the development of the Oil City, Pennsylvania, expansion capacity. Shipped tonnages improved 2.8% over fiscal 2002 mostly due to new market opportunities inthe specialty tubing markets.  Tonnage improvements over the prior year wereprimarily driven by the specialty OEM market.  Although the overall price per ton forthe Company’s products increased during the year, the change in sales-mix towardslower margin products resulted in a reduction in gross profit margin for the year as seenbelow.  Pricing pressure continues to depress the specialty tubing markets, which isreflected in the Company’s gross profit margin percentages for fiscal 2003.  

       Gross profit for Pressure and Specialty Tubing Products decreased to $17.8 million, or10.1 percent of net sales, in 2003 from $18.8 million, or 12.0 percent of net sales, in2002.  The decrease is primarily a function of the increase in volume in thespecialty OEM market, which historically has significant competition and pricingpressure.  Excess capacity and over-supply conditions continueto exist among most of the Company’s product lines.  Although increased production at the Oil City facility helpeddrive the increase in sales for the year, production problems and related operatinginefficiencies depressed margins at that location during the last half of the year.Shutdowns for repair and maintenance projects at the Company’s Sand Springs,Oklahoma, facility during the third quarter further reduced gross profit for the year. Margins were also adversely impacted by higher carbon steel raw material pricesduring fiscal 2003.

       Selling, general and administrative expenses were $12.3 million in fiscal 2003 comparedwith $12.5 million in fiscal 2002.  The second quarter of thecurrent year includes an insurance recoveryto the Company of $299,000 from a January 2001 fire at the Company’s Oil Cityfacility.  The Company had a reduction of$489,000 in employee incentive payments and executive bonus accruals in fiscal 2003 as a result of failing to achievebudgeted profitability levels.  These decreases were offset by an increase of$259,000 in enterprise resource planning expenses primarily due to a computer hardwaremigration project and a $311,000 increase in sales and marketing expenses driven by newmarket opportunities and increased sales volumes.

        In January2002, the Company recorded a litigation award from a previously disclosed lawsuit againstan equipment vendor.  The total judgment of $1.58 million has been collected, and theCompany does not anticipate any further action by either party in the case.

       Interest expense for fiscal 2003 decreased to $2,216,000 from $2,998,000 in fiscal2002.  The decrease in interest is primarily the result of the average interest ratedecreasing to 4.56 percent in 2003 from 5.96 percent in 2002.  The average level ofdebt under the bank Loan and Security Agreement decreased only slightly to $41.7 millionfor 2003 from $41.8 million for 2002.  The Company has historically elected for itsterm debt and a significant portion of its outstanding revolver to bear interest at afloating rate based on LIBOR.  Borrowing levels remained relatively flat as freeoperating cash flow was used to fund higher inventory levels and capital expendituresduring 2003.  A significant increase in interest rates could have a material impacton the Company's results of operations and cash flows.  Thereader should refer to Part II, Item 7A: "Quantitative and Qualitative Disclosuresabout Market Risk" of this Form 10-K for additional information regarding thismatter.

        The recordedincome tax provision is based upon the estimated annual combined effective federal andstate income tax rates.  The effective income tax rate for fiscal 2003 was 41.0percent compared to 38.4 percent in the priorfiscal year.  The highereffective tax rate resulted from the Company cashing in two key-man, whole-life insurancepolicies during the second quarter of fiscal 2003 and realizing a taxable gain on thetransaction.

        The steelindustry is characterized by changing customer demands, foreign competition, governmentinfluence on raw material and finished good import prices, as evidenced by trade tariffs,and financial instability among domestic steel producers.  Due to tariffs on carbonsteel coils and the rationalization of some domestic steel production, the Company's costof carbon steel coils increased in fiscal 2003.  The Company’s ability to passthese increased costs on to its customers is often not as related to the change in thecost of its steel coil raw materials as it is to the intense competition that exists inthe markets into which the tubing is being sold.    

        On March 31,2002, the Board of Directors approved a plan of divestiture for the Company's QuikWaterDivision and on May 10, 2002, the Company sold substantially all of the assets of thissegment to a group of independent investors and members of management of QuikWater, whichincluded Ashley Weber, daughter of F. William Weber, Chairman and Chief Executive Officerof the Company.  The purchase price for the assets was $100,000 paid in cash atclosing and an additional $300,000 that could be realized based on future earnings of thenew entity over a three year period.  None of theadditional $300,000 has been recorded on the sale due tomanagement's assessment of the contingent nature of the amount.  The sale of theQuikWater Division represents a disposal of a business segment under Statement ofFinancial Accounting Standards No. 144, "Accounting for the Impairment or Disposal ofLong-Lived Assets" (FAS 144).  Accordingly, prior period results of theQuikWater segment have been classified as discontinued.  A loss of $914,000 wasrecorded on the disposal of the business segment, net of realized proceeds, which includes$80,000 of related disposal costs.  The reader should refer to Part II, Item 8: Note4 - Discontinued Operation, in the footnotes to the consolidated financial statements ofthis Form 10-K/A for additional information regarding thismatter.

**Fiscal 2002 Compared with Fiscal2001**        Pressure andSpecialty Tubing Product sales increased $8.0 million, or 5.4 percent, to $156.3 millionin 2002 from $148.3 million in 2001.  The increase in net sales is primarily theresult of the additional production gained from the Oil City, Pennsylvania expansion, newmarket opportunities and improved pressure tubing volumes.  Pricing pressure remainedstrong throughout the specialty stainless tubing markets.  Tonnages were depressed inthe prior year due to the disruptions to the operations at the Oil City plant as a resultof the expansion construction at that location for much of the year.  

       Gross profit for Pressure and Specialty Tubing Products increased to $18.8 million, or12.0 percent of net sales, in 2002 from $14.9 million, or 10.1 percent of net sales, in2001.  The increase is a function of Oil City being fully operational after the majorexpansion was completed during the third quarter of fiscal 2001.  Shipped tonnagesimproved 5.5% over fiscal 2001 mostly due to new market opportunities, productionefficiencies and improved pressure tubing volumes.  In fiscal 2001, a one-weeksuspension at the Sand Springs facility in August and higher operating expenses at the OilCity facility due to the on-going plant construction negatively impacted margins. Margins were further reduced by higher natural gas prices at all facilities during fiscal2001.

       Selling, general and administrative expenses were basically unchanged at $12.5 million infiscal 2002 compared with $12.6 million in fiscal 2001.  The Company did realize areduction of $499,000 in information technology expenses during fiscal 2002 as a result ofcost saving measures implemented during fiscal 2001.  This decrease was partiallyoffset by a decline in sales commission income of $180,000.  The Company alsorealized a $236,000 gain on the sale of real estate that was included as part of selling,general and administrative expenses in 2001.

        In January2002, the Company recorded a litigation award from a previously disclosed lawsuit againstan equipment vendor.  The total judgment of $1.58 million has been collected, and theCompany does not anticipate any further action by either party in the case.

       Interest expense for fiscal 2002 decreased to $2,988,000 (net of $35,000 capitalized) from$4,731,000 (net of $375,000 capitalized) in fiscal 2001.  The decrease in interestprior to interest capitalization is the result of the average level of debt under the bankLoan and Security Agreement decreasing $6.7 million to $41.8 million for 2002 as comparedwith $48.5 million for 2001.  In addition, the average interest rate decreased to5.96 percent in 2002 from 8.87 percent in 2001.  The Company has historically electedfor its term debt and a significant portion of its outstanding revolver to bear interestat a floating rate based on LIBOR.  Lower borrowing levels resulted from improvedoperating cash flow and the Company's focus on debt reduction and working capitalmanagement.  LIBOR, much like the prime rate, experienced significant decreasesduring calendar year 2001, which led to the reduction in the average interest rate. However, a significant increase in interest rates could have a material impact on theCompany's results of operations and cash flows.  The readershould refer to Part II, Item 7A: "Quantitative and Qualitative Disclosures aboutMarket Risk" of this Form 10-K for additional information regarding this matter.

**Liquidity and Capital Resources**        Net cash (usedin) provided by operations was $(1.3) million, $12.0 million and $3.2 million in fiscal2003, 2002 and 2001, respectively.  Inventories increased in 2003 and 2002 whiledecreasing in 2001.  The $6.5 million inventory increase in 2003 is largely theresult of increased business levels in the specialty tubing markets and higher carbonsteel raw material prices.  The increase in inventory in 2002 was the result ofoverall increases in raw material prices and the Company’s decision to make strategicvolume purchases in anticipation of rising prices.  Inventories decreased in 2001primarily due to management's efforts to reduce raw material inventory levels at themanufacturing facilities, which was partially offset by increases in finished goodslevels.  Accounts receivable increased $3.0 million in 2003 as a result of increasedsales volumes.  Accounts payable decreased in 2003, but was largely offset by anincrease in book overdrafts included in financing activities.  Accounts Payableincreased in 2002 primarily as a result of the increase in inventory.  Over the pastthree years, the Company has on average turned its steel inventories approximately 4 timesper year.

       Net cash used in investing activities was $2.6 million, $2.7 million and $5.4 million infiscal 2003, 2002 and 2001, respectively.  Fiscal 2003 includes the cash valueproceeds of $822,000 from cashing in two key-man, whole life insurance policies on F.William Weber, Chairman of the Board and Chief Executive Officer.  Capital spendingin 2003 was primarily focused on information technology and the continued investment instainless tube making capabilities.  Capital spending in 2002 was limited toupgrading existing equipment with improved technology and mill additions at the Company'sstainless plant.  During the third quarter of fiscal 2001, the Company completed theexpansion of the Oil City facility, which included the installation of a new mill alongwith other supporting equipment and plant construction.

       The Company’s capital requirements have historically been to fund equipment purchasesand for general working capital needs resulting from the growth that the Company hasexperienced.  The Company has followed an aggressive capital expenditure plan as partof its growth strategy and to enable it to continue to be a leader in tubularmanufacturing technologies.  Capital spending in 2004 willfocus on the continued expansion and deployment of technology investments for stainlesstube-making, development of value-added capabilities for our increased carbon capacity,and normal facility maintenance spending.  Capitalspending for 2004 is expected to be in the range of $3.5 to $5.5 million for theyear.  The Company currently intends to retain earnings to support this strategy anddoes not anticipate paying dividends in the foreseeable future.

       The Company's senior debt facilities with its primary lender provide for a term loan of$15.5 million, and arevolving lineof credit of $32 million ($38 million as amended on September 16, 2003).  As of July31, 2003, the Company had $12.2 million outstanding on the senior debt facility term loanand $28.8 million on the related revolving line of credit.  Thematurity date of both the term loan and the revolver is May 1, 2005and the loans are collateralized by substantially all of the Company’s assets. The Company may have borrowings and outstanding letters of credit under the revolvingcredit facility up to the lesser of $38 million or an amount determined by a formula basedon the amount of eligible inventories and accounts receivable.  At July 31, 2003,$2.1 million ($5.7 million at September 30, 2003) was available for borrowing on the lineof credit under the terms of the note agreement.  Principal payments on the term loanof $184,500, plus interest, are due each month until maturity.  Along with thescheduled principal payments, the Company is required to make additional principalpayments on the term loan based on 50 percent of excess cashflow not to exceed $221,500 per quarter, or $2,658,000 on a cumulative basis over the termof the debt facility.  As of July 31, 2003, the Company has made $886,000 ofadditional principal payments.  An additional payment of $199,500 will be made duringthe second quarter of 2004 based on the Company's performance in the fourth quarter of2003.

        Accounting principles require currentclassification of revolving lines of credit that permit borrowings on a long-term basiswhen the line of credit contains both a lock-box arrangement, whereby remittances to thelockbox automatically pay down the outstanding LOC, and loan terms that allow the lenderto declare the loan in default on a subjective basis.  This accounting treatment isrequired regardless of the legal maturity date of the revolving credit arrangement. The Company's LOC, which matures May 1, 2005, contains such features andaccordingly, the accompanying financial statements have been restated to reclassifyoutstanding borrowings under the LOC to "Current portion of long-termdebt".

       The Company is subject to various restrictivecovenants, including requirements to maintain a minimum debt coverage ratio.  Thecovenants also limit capital expenditures and dividends and require the Company tomaintain a minimum borrowing base availability.  As of July 31, 2003 the Company was incompliance with all such covenants under the existing facility.

       The Company has arranged financing with various public agencies related to the Oil Cityfacility, of which, $2.2 million is outstanding at July 31, 2003.  The agency loansare collateralized by the underlying real estate and certain equipment.  The notesmature over a 2 to 8 year period and bear interest at rates ranging from 3 to 5 percent.

       The Company has various equipment loans with its primary lender and other financingcompanies, of which, $592,000 is outstanding at July 31, 2003.  The loans arecollateralized by the underlying equipment and mature over a 1 to 5 year period and bearinterest at rates ranging up to 6 percent.

        P&J has aline of credit agreement for $2,000,000 and a term loan of $500,000 with its primarylender.  As of July 31, 2003, P&J had $87,000 outstanding on the term loan and noamounts under the line of credit.  The line of credit matures on November 30, 2003,and the term loan matures in April 2004.  Both loans are collateralized byP&J’s assets.  At July 31, 2003, $2.0 million was available for borrowingunder the line of credit.

        In additionto the above debt arrangements, the Company leases certain buildings and machinery andequipment under non-cancelable operating leases.  Under certain of these leases theCompany is obligated to pay property taxes, insurance, repairs and other costs related tothe leased property.

       The following table sets forth the future minimum payments required under the above debtand lease agreements at July 31, 2003:
  
**Payments Due    by Fiscal Year**Contractual Obligations
2004
2005
2006
2007
2008
Thereafter
TotalSenior Long-Term Debt
$   2,436
$   9,779
$             -
$             -
$             -
$             -
$  12,215Senior Line of Credit(1)
  28,848
-
  -
  -
  -
  -
28,848Public Agency Long-Term Debt
342
301
299
307
308
669
 2,226P&J Long-Term Debt
   87
-
-
-
-
-
87P&J Line of Credit
-
-
-
-
-
-
-Operating Leases
1,754
1,668
1,369
1,132
895
1,439
8,257Other
         155
         151
         134
           75
           72
             5
         592   Total Cash Obligations
$ 33,622=====
$ 11,899=====
$  1,802=====
$   1,514=====
$   1,275=====
$   2,113=====
$ 52,225=====
(1) - Accountingprinciples require current classification of revolving lines of credit that permitborrowings on a long-term basis when the line of credit contains both a lock-boxarrangement, whereby remittances to the lockbox automatically pay down the outstandingLOC, and loan terms that allow the lender to declare the loan in default on a subjectivebasis.  This accounting treatment is required regardless of the legal maturity dateof the revolving credit arrangement.  The Company's LOC, which matures May 1, 2005,contains such features and accordingly, the accompanying financial statements have beenrestated to reclassify outstanding borrowings under the LOC to "Current portionof long-term debt".

       In the past, the Company has funded its capital growth expenditures with a combination ofcash flow from operations and debt.  Capital spending plans forfiscal year 2004 primarily consist of furtheradditions at the stainless plant and minor projects and normalmaintenance spending, which is expected to be in the range of $3.5 to $5.5 million for theyear.  Management believes its current capital structure is adequate for currentoperations and to allow for planned capital additions and improvements.  Interestrate increases or lack of capital availability could limit capital spending or the workingcapital necessary to take advantage of growth opportunities.

        The Companyenters into purchase commitments with steel vendors as part of the ordinary course ofbusiness.  The Company is currently committed on outstanding purchase orders forinventory approximating $21.7 million.

**Related Party Transactions**        The reader should refer to PartII, Item 8: Note 12 - Related Party Transactions, in the footnotes to the consolidatedfinancial statements of this Form 10-K/A for informationregarding such transactions during 2003 and 2002. 

**Critical Accounting Policies**        The Company's consolidatedfinancial statements are prepared in conformity with accounting principles generallyaccepted in the United States of America.  Critical accounting policies require theapplication of significant judgment by management in selecting the appropriate assumptionsfor calculating financial estimates that are believed to be reasonable based on theinformation available.  By their nature, these judgments are subject to an inherentdegree of uncertainty and financial estimates, and related assumptions, do affect thereported amounts of assets, liabilities, revenues and expenses for the periods presented.There can be no assurances that actual results will not differ from thoseestimates. These judgments are based on historical experience, terms of existingpurchase arrangements, observance of trends in the industry, information provided bycustomers and information provided from outside sources, as appropriate. The Companybelieves its’ most critical accounting policies are as follows: 

*Revenue Recognition* — The Company recognizesrevenue in accordance with SEC Staff AccountingBulletin No. 101, Revenue Recognition in Financial Statements (SAB 101), as amended by SAB101A and 101B.  SAB 101 requires that four basic criteria must be met before revenuecan be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery hasoccurred or services rendered; (3) the fee is fixed and determinable; and (4)collectibility is reasonably assured.  Company product is made to customer orindustry specifications at an agreed upon price that is typically specified in thecustomer’s purchase order.  Title to the product passes to the customer at thetime of shipment along with all the risks and rewards of ownership.  Customer ordersare not released for shipment unless the customer is in good credit standing with theCompany, which is internally evaluated by the Company's credit manager on an on-goingbasis.  Should changes in conditions cause management to determine these criteria arenot met for certain future transactions, revenue recognition would be delayed until suchtime as the transactions become realizable and fully earned.

*Inventories* — The Company values inventoryat the lower of the actual cost to purchase and/or manufacture or the current estimatedmarket value of the inventory.  Cost for raw materials, work-in-process, finishedgoods and maintenance parts and supplies are determined on the weighted average costmethod.  The Company regularly reviews inventory quantities on hand and reduces thecarrying value of the numbers by recording a provision for excess and obsolete inventorybased primarily on inventory aging and forecasts of product demand and pricing.  Thesteel industry is characterized by changing customer demands, government influence on rawmaterial and finished good import prices, as evidenced by current steel tariffs, andfinancial instability among domestic steel producers that could result in significantincreases or decreases in inventory pricing or increases in excess or obsolete inventoryquantities on hand.  The Company's estimates of future product demand may prove to beinaccurate, in which case the provision required for excess and obsolete inventory mayhave been understated or overstated.  Although every effort is made to ensure theaccuracy of internal forecasting, any significant changes in demand or finished good andraw material prices could have a significant impact on the carrying value of the Company'sinventory and reported operating results.

*Self-Insurance Reserves* — The Companyself-insures both a medical coverage program and an Oklahoma workers' compensation programfor its employees.  The determination of reserves and expenses for these benefits isdependent on claims experience and the selection of certain assumptions used by actuariesin evaluating incurred, but not yet reported, amounts.  Reserves for claims underboth programs are accrued based upon the Company's estimate of the aggregate liability forclaims (including claims incurred, but not yet reported).  Significant changes inactual experience under either program or significant changes in assumptions maymaterially affect self-insured medical or workers' compensation reserves and futureexpense. 

*Accounting for Certain Long-Lived Assets*—The Company evaluates its assets for impairment in accordance with Statement of FinancialAccounting Standards No. 144, "Accounting for the Impairment or Disposal ofLong-Lived Assets" (FAS 144).  When recoverability is in question, the Companyreviews its long-lived assets for impairment based on estimated future non-discounted cashflows attributable to the assets.  In the event such cash flows are not expected tobe sufficient to recover the recorded value of the assets, the assets are written down totheir estimated fair values.  While the Company believes its estimates of future cashflows are reasonable, different assumptions regarding such cash flows could materiallyaffect the evaluations.

*Deferred Taxes* — The Company recognizesdeferred tax assets and liabilities based on the differences between the financialstatement carrying amounts and the tax basis of assets and liabilities.  Deferred taxassets are regularly reviewed for recoverability and, if deemed necessary, an appropriatevaluation allowance is established based on historical taxable income, projected futuretaxable income, and the expected timing of the reversals of existing temporarydifferences.  If the Company were unable to generate sufficient future taxableincome, or if there is a material change in the actual effective tax rates or time periodwithin which the underlying temporary differences become taxable or deductible, theCompany could be required to establish a valuation allowance against all or a significantportion of the deferred tax assets, thus resulting in a substantial increase in theeffective tax rate and a material adverse impact on net income.

**New Accounting Pronouncements**        In December 2002, the FASBissued Statement of Financial Accounting Standards No. 148, "Accounting forStock-Based Compensation – Transition and Disclosure, an amendment of FASB StatementNo. 123" (FAS 148).  FAS 148 is effective for fiscal years ending after December15, 2002.  This statement amends Statement of Financial Accounting Standards No. 123"Accounting for Stock-Based Compensation" and amends Accounting Principles BoardOpinion No. 28 “Interim Financial Reporting”.  FAS 148 does not change theprovisions of FAS 123 that permit entities to continue applying the intrinsic value methodof APB 25, "Accounting for Stock Issued to Employees" ("APB 25"). Since the Company applies APB 25, the Company’s accounting for stock-basedcompensation will not change as a result of FAS 148.  FAS 148 does require certainnew disclosures in both annual and interim financial statements, which are effective forthe fiscal year ending July 31, 2003 and are included in Note 1 of these financialstatements.  The new interim disclosure provisions were effective beginning with theCompany’s third quarter ended April 30, 2003.

        In April2003, the FASB issued Statement of Financial Accounting Standards No. 149, "Amendmentof Statement 133 on Derivative Instruments and Hedging Activities" (FAS 149). FAS 149 amends and clarifies financial accounting and reporting for derivativeinstruments, including certain derivative instruments embedded in other contracts(collectively referred to as derivatives) and for hedging activities under FAS No. 133,“Accounting for Derivative Instruments and Hedging Activities”.  Thisstatement is effective for the fiscal year ending July 31, 2003.  The Company doesnot expect FAS 149 to have a significant impact on its consolidated financial statements.

        In May 2003,the FASB issued Statement of Financial Accounting Standards No. 150, "Accounting ForCertain Financial Instruments with Characteristics of both Liabilities and Equity"(FAS 150).  FAS 150 requires financial statement issuers’ to classify financialinstruments that require a transfer of assets, and that meet the definition of liabilitiesin FASB Concepts Statement No. 6 (CON 6) and other recognition criteria in FASB ConceptsStatement No. 5 (CON 5), as liabilities.  The Statement also requires that certainobligations that could be settled by issuance of an entity’s equity but lack othercharacteristics of equity be reported as liabilities even though the obligation does notmeet the definition of liabilities in CON 6.  This Statement is effective forfinancial instruments entered into or modified after May 31, 2003, and otherwise iseffective for interim periods beginning after June 15, 2003.  The Company does notexpect FAS 150 to have a significant impact on its consolidated financial statements.

        On November25, 2002, the FASB issued FASB Interpretation No. 45, "Guarantor's Accounting andDisclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness ofOthers, an interpretation of FASB Statements No. 5, 57, and 107 and Rescission of FASBInterpretation No. 34" ("FIN 45").  FIN 45 clarifies the requirementsof FASB Statement No. 5, “Accounting for Contingencies” (FAS 5), relating to theguarantor's accounting for, and disclosure of, the issuance of certain types ofguarantees.  For guarantees that fall within the scope of FIN 45, the Interpretationrequires that guarantors recognize a liability equal to the fair value of the guaranteeupon its issuance.  The Interpretation's provisions for initial recognition andmeasurement should be applied on a prospective basis to guarantees issued or modifiedafter December 31, 2002, irrespective of the guarantor's fiscal year-end.  Theguarantor's previous accounting for guarantees that were issued before the date of FIN45's initial application may not be revised or restated to reflect the effect of therecognition and measurement provisions of the Interpretation.  The disclosurerequirements are effective for financial statements of both interim and annual periodsthat end after December 15, 2002.  The Company does not believe FIN 45 will bematerial to its consolidated financial statements as the Company is currently not aGuarantor under any guarantee arrangements.

        On January17, 2003, the FASB issued FASB Interpretation No. 46, “Consolidation of VariableInterest Entities, An Interpretation of Accounting Research Bulletin No. 51”(“FIN 46”).  FIN 46 provides guidance on identifying entities controlled bymeans other than through voting rights and how to determine when and which business entityshould consolidate the variable interest entities (“VIE”).  Consolidationapplies to entities in which the equity investor does not have a controlling financialinterest or the equity investment at risk is insufficient to finance that entity’sactivities in the absence other subordinated financial support from other parties. The Company does not believe FIN 46 will be material to its consolidated financialstatements as the Company is currently not a party to any variable interest entities.

**Outstanding Litigation**        The Company is party to variouslawsuits and claims arising in the ordinary course of business.  Management, afterreview and consultation with legal counsel, believes that any liability resulting fromthese matters would not materially affect the results of operations or the financialposition of the Company.  The Company maintains liability insurance against risksarising out of the normal course of business.

 

**ITEM 7A.  QUANTITATIVE AND QUALITATIVEDISCLOSURES ABOUT MARKET RISK**

*Interest Rate Risk*— The Company's primaryrisk relates to changes in interest rates on its long-term debt under its senior debtfacility.  At July 31, 2003, the senior debt facility represented $41.0 million ofthe total debt outstanding of $44.0 million.  A significant amount of the remainingdebt of $3.0 million bears interest at fixed rates between 3 and 6 percent.  TheCompany's senior term and revolving debt bear interest at a floating rate based on theLondon Interbank Offered Rate ("LIBOR") or the Prime Rate.  Accordingly,the Company believes the carrying value of its variable rate, long-term debt approximatesfair value.  The Company has not entered into derivative contracts or other financialinstruments for speculative or trading purposes.  Furthermore, the Company has notused financial instruments in the past, such as interest rate swaps or hedges, to minimizethe impact of interest rate fluctuations on earnings and cash flow, however, management mayuse such instruments if warranted based on estimates of future interest rates. Using the average outstanding long-term debt under the senior debt facility for fiscal2003 of $41.7 million, a one percent change in the floating rates would change annual cashflow and earnings before income taxes by approximately $417,000.

*Inventory Risk*— The steel industry ischaracterized by changing customer demands, foreign competition, government influence onraw material and finished good import prices, as evidenced by the current steel tariffs,and financial instability among domestic steel producers.  Due to tariffs on carbonsteel coils and the rationalization of some domestic steel production, the Company's costof carbon steel coils increased in fiscal 2003.  The Company’s short-termability to raise prices to its customers is often not as related to the change in the costof its steel coil raw materials as it is to the competition that exists in the marketsinto which the tubing is being sold.  The Company's ability to raise prices to offsetincreases in steel costs may prove to be difficult, which could result in unrealizableinventory values and a decline in profit margins.  Although every effort is made toensure the accuracy of internal forecasting, any significant changes in demand or finishedgood and raw material prices could have a significant impact on the value of the Company'sinventory and reported operating results.

*Natural Gas Price Risk*— The Company usesnatural gas in significant quantities as part of its manufacturing processes.  Fromtime to time, the Company experiences significant increases and decreases in the price ofnatural gas.  The Company's ability to raise prices to offset increasing gas costsmay prove to be difficult, which could result in declines in profit margins.  Duringthe first quarter of fiscal 2004, the Company entered into various fixed price and NYMEXswap contracts in order to manage natural gas risk.  Contract terms range from 7months to 3 years at prices ranging from $4.90 per mcf to $5.43 per mcf.  Contractswill essentially lock in prices for 30,000 mcf per month through April 2004, 20,000 mcfper month from May 2004 through September 2004 and 10,000 mcf per month from October 2004through September 2006.  Management believes such contracts are warranted based onestimates of future prices and the amount of natural gas used by the Company.  Theaverage amount of natural gas used per month in fiscal 2003 was 34,000 mcf at an averageprice of $5.01 per mcf.
 

 

**ITEM 8.    FINANCIALSTATEMENTS AND SUPPLEMENTARY DATA**

**REPORT OF INDEPENDENT REGISTEREDPUBLIC ACCOUNTING FIRM**

To the Board of Directors andShareholders of

Webco Industries, Inc.

In our opinion, the accompanyingconsolidated balance sheets and the related consolidated statements of operations,stockholders' equity and cash flows present fairly, in all material respects, thefinancial position of Webco Industries, Inc. and subsidiary at July 31, 2003 and 2002, andthe results of their operations and their cash flows for each of the three years in theperiod ended July 31, 2003, in conformity with accounting principles generally accepted inthe United States of America.  In addition, in our opinion, the financial statementschedule listed in the index appearing under item 15(a)(2), presents fairly, in allmaterial respects, the information set forth therein when read in conjunction with therelated consolidated financial statements. These financial statements and financialstatement schedule are the responsibility of the Company's management; our responsibilityis to express an opinion on these financial statements and financial statement schedulebased on our audits.  We conducted our audits of these statements in accordance withthe standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free of material misstatement.  An auditincludes examining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements, assessing the accounting principles used and significantestimates made by management, and evaluating the overall financial statementpresentation.  We believe that our audits provide a reasonable basis for our opinion.

As discussed in Note 1Ato the consolidated financial statements, the Company has revised its Consolidated BalanceSheets at July 31, 2003 and 2002, to reclassify its debt outstanding under the Company'sSenior Revolving Line of Credit from long-term to current liabilities.

*PricewaterhouseCoopers LLP*

Tulsa, OklahomaSeptember 25, 2003, except for the information in Note 1A, as to which the date is March 1,2004.

 

**WEBCO    INDUSTRIES, INC. AND SUBSIDIARY**
**CONSOLIDATED    BALANCE SHEETS**
** July    31, 2003 and 2002**
(Dollars in    thousands, except share amounts and par value)              
**  2003 **
**  2002 **
**ASSETS**
                 (Restated,    Note 1A)      Current assets:         Cash
$            189
$            212     Accounts receivable,    net
21,781
18,564     Inventories, net
40,794
34,307     Prepaid expenses
328
281     Deferred income tax    asset
        3,318
        2,553                 Total current assets          
   66,410
   55,917      Property, plant and equipment,    net                      
60,018
62,974      Notes receivable from related parties
2,560
2,508Other assets, net                    
         1,539
         2,529                 Total    assets                     
$  130,527======
$  123,928======            
**LIABILITIES AND    STOCKHOLDERS' EQUITY**          Current liabilities:         Accounts payable
$    17,216
$    17,673     Accrued liabilities
5,676
5,788     Current portion of    long term debt(Restated, Note 1A)
    31,868
       25,238                 Total current liabilities
54,760
48,699      Long term debt(Restated, Note 1A)
12,100
15,222      Deferred income tax liability
12,603
10,861      Commitments and contingencies (Note    7)                                           Stockholders' equity:          Common stock, $.01    par value, 12,000,000 shares                authorized, 7,081,723 outstanding
71
71     Additional paid in    capital 
35,744
35,744     Retained    earnings                              
   15,249
   13,331                 Total stockholders'    equity                             
   51,064
   49,146                 Total liabilities and stockholders'    equity                    
$  130,527======
$  123,928======
The accompanying notes are an integral part of theconsolidated financial statements.

 

**WEBCO    INDUSTRIES, INC. AND SUBSIDIARY**
**CONSOLIDATED    STATEMENTS OF OPERATIONS**
**For the Years    Ended July 31, 2003, 2002 and 2001**
** **(Dollars    and shares in thousands, except per share amounts)                        
**     2003 **
**     2002 **
**  2001**        Net Sales
$      175,769
$      156,294
$      148,279Cost of Sales
      157,975
      137,479
      133,347        Gross Profit
17,794
18,815
14,932        Selling, general and    administrative expenses       
        12,326
        12,546
        12,618Litigation award
                  -
         1,580
                  -        Income from operations
5,468
7,849
2,314        Interest expense
          2,216
          2,988
          4,731        Income (loss) before income    taxes                      
3,252
4,861
            (2,417)        Provision (benefit) for income    taxes
          1,334
          1,865
               (923)        Income (loss) from continuing    operations** |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|