- Net sales of $113.2 million
increased 14.2% year-over-year, a record for first quarter
revenues
- Gross profit of $20.1 million
increased 21.5% year-over-year, the highest first quarter gross
profit in 11 years
- Net income of $0.52 per
diluted share
- Backlog1 of $255 million; backlog
including confirmed orders2 of
$337 million for the Engineered Steel Pressure Pipe segment
("SPP")
- Order book3 of $52 million for
the Precast Infrastructure and Engineered Systems segment
("Precast")
- Repurchased $3.7 million of
common stock during the quarter
VANCOUVER, Wash., May 1, 2024
/PRNewswire/ -- Northwest Pipe Company (NASDAQ: NWPX) (the
"Company"), a leading manufacturer of water-related infrastructure
products, today announced its financial results for the first
quarter ended March 31, 2024. The
Company will broadcast its first quarter 2024 earnings conference
call on Thursday, May 2, 2024 at
7:00 a.m. PT.
Management Commentary
"Despite the strength of the incoming order book, our
non-residential Precast business shipments were weak in the first
quarter resulting in depressed margins. The residential portion of
our Precast business continues to maintain a strong order book,
production levels, and shipments. However, as we expected, the
margins have come under some modest pressure due to regional
differences in market demand. Following a slow first quarter, which
is generally the case in our Precast segment, we are expecting
fairly strong improvement in both revenue and margins for the
second quarter and a strong remainder of the year," said
Scott Montross, President and Chief
Executive Officer of Northwest Pipe Company. "During the first
quarter, the SPP business had very strong bidding activity and
production levels. We generated revenue of $80 million with
margins that improved approximately 280 basis points over the
previous quarter. Our backlog including confirmed orders grew to
$337 million due to the strength in bidding activity. We are
anticipating a second quarter that is in line with the first and
continued strength throughout 2024."
First Quarter 2024 Financial Results
Consolidated
- Net sales increased 14.2% to $113.2
million from $99.1 million in
the first quarter of 2023.
- Gross profit increased 21.5% to $20.1
million, or 17.8% of net sales, from $16.6 million, or 16.7% of net sales, in the
first quarter of 2023.
- Net income was $5.2 million, or
$0.52 per diluted share, compared to
$2.4 million, or $0.23 per diluted share, in the first quarter of
2023.
Engineered Steel Pressure Pipe Segment (SPP)
- SPP net sales increased 25.9% to $80.0
million from $63.5 million in
the first quarter of 2023 driven by a 54% increase in tons produced
resulting primarily from changes in project timing, partially
offset by an 18% decrease in selling price per ton primarily due to
product mix.
- SPP gross profit increased 83.0% to $14.2 million, or 17.8% of SPP net sales, from
$7.8 million, or 12.2% of SPP net
sales, in the first quarter of 2023 primarily due to increased
volume and changes in product mix.
- SPP backlog was $255 million as
of March 31, 2024 compared to
$273 million as of December 31, 2023 and $297
million as of March 31, 2023.
Backlog including confirmed orders was $337
million as of March 31, 2024
compared to $319 million as of
December 31, 2023 and $370 million as of March
31, 2023.
Precast Infrastructure and Engineered Systems Segment
(Precast)
- Precast net sales decreased 6.6% to $33.2 million from $35.6
million in the first quarter of 2023, despite a 23% increase
in volume shipped, due to a 24% decrease in selling prices driven
by changes in product mix.
- Precast gross profit decreased 33.0% to $5.9 million, or 17.7% of Precast net sales, from
$8.8 million, or 24.7% of Precast net
sales, in the first quarter of 2023 primarily due to changes in
product mix.
- Precast order book was $52
million as of March 31, 2024
compared to $46 million as of
December 31, 2023 and $58 million as of March
31, 2023.
Balance Sheet and Cash Flow
- As of March 31, 2024, the Company
had $89.9 million of outstanding
revolving loan borrowings and additional borrowing capacity of
approximately $34 million under the
revolving credit facility.
- Net cash provided by (used in) operating activities was
($26.1) million in the first quarter
of 2024 compared to $26.3 million in
the first quarter of 2023 primarily due to a $54.8 million decrease in cash provided by
changes in working capital partially offset by a $2.4 million increase in cash provided by net
income adjusted for non-cash items.
- Capital expenditures were $4.6
million in the first quarter of 2024 compared to
$4.4 million in the first quarter of
2023.
- The Company repurchased approximately 127,000 shares of its
common stock at an average price of $29.39, for a total of $3.7 million during the first quarter of 2024.
Since the authorization of the share repurchase program in
November 2023, the Company
repurchased approximately 171,000 shares of its common stock at an
average price of $29.57, for a total
of $5.1 million as of April 30, 2024.
|
_____________
|
|
1 Northwest
Pipe Company defines "backlog" as the balance of remaining
performance obligations under signed contracts for Engineered Steel
Pressure Pipe products for which revenue is recognized over
time.
|
|
2 Northwest
Pipe Company defines "confirmed orders" as Engineered Steel
Pressure Pipe projects for which the Company has been notified that
it is the successful bidder, but a binding agreement has not been
executed.
|
|
3 Northwest
Pipe Company defines "order book" as unfulfilled orders outstanding
at the measurement date for its Precast Infrastructure and
Engineered Systems segment.
|
Conference Call Details
A conference call and simultaneous webcast to discuss the
Company's first quarter 2024 financial results will be
held on Thursday, May 2, 2024, at
7:00 a.m. Pacific Time. The call will be broadcast live on the
Investor Relations section of the Company's website at
investor.nwpipe.com and will be archived online upon completion of
the conference call. For those unable to listen to the live call, a
replay will be available approximately three hours after the event
and will remain available until Thursday, May 16, 2024, by
dialing 1‑844‑512‑2921 in the U.S. or 1‑412‑317‑6671
internationally and entering the replay access code: 13745284.
About Northwest Pipe Company
Founded in 1966, Northwest Pipe Company is a leading
manufacturer of water-related infrastructure products. In addition
to being the largest manufacturer of engineered steel water
pipeline systems in North America,
the Company manufactures stormwater and wastewater technology
products; high-quality precast and reinforced concrete products;
pump lift stations; steel casing pipe, bar-wrapped concrete
cylinder pipe, and one of the largest offerings of pipeline system
joints, fittings, and specialized components. Strategically
positioned to meet growing water and wastewater infrastructure
needs, Northwest Pipe Company provides solution-based products for
a wide range of markets under the ParkUSA, Geneva Pipe and Precast, Permalok®, and
Northwest Pipe Company lines. The Company's diverse team is
committed to quality and innovation while demonstrating the
Company's core values of accountability, commitment, and teamwork.
The Company is headquartered in Vancouver, Washington, and has
13 manufacturing facilities across North America. Please visit www.nwpipe.com for
more information.
Forward-Looking Statements
Statements in this press release by Scott Montross contain "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 and Section 21E of the Securities Exchange
Act of 1934, as amended, that are based on current expectations,
estimates, and projections about the Company's business,
management's beliefs, and assumptions made by management. These
statements are not guarantees of future performance and involve
risks and uncertainties that are difficult to predict. Therefore,
actual outcomes and results may differ materially from what is
expressed or forecasted in such forward-looking statements as a
result of a variety of important factors. While it is impossible to
identify all such factors, those that could cause actual results to
differ materially from those estimated by the Company include
changes in demand and market prices for its products, product mix,
bidding activity and order modifications or cancelations, timing of
customer orders and deliveries, production schedules, price and
availability of raw materials, excess or shortage of production
capacity, international trade policy and regulations, changes in
tariffs and duties imposed on imports and exports and related
impacts on the Company, economic uncertainty and associated trends
in macroeconomic conditions, including potential recession,
inflation, and the state of the housing market, interest rate risk
and changes in market interest rates, including the impact on the
Company's customers and related demand for its products, the
Company's ability to identify and complete internal initiatives
and/or acquisitions in order to grow its business, the Company's
ability to effectively integrate future acquisitions into its
business and operations and achieve significant administrative and
operational cost synergies and accretion to financial results,
effects of security breaches, computer viruses, and cybersecurity
incidents, timing and amount of share repurchases, impacts of U.S.
tax reform legislation on the Company's results of operations,
adequacy of the Company's insurance coverage, supply chain
challenges, labor shortages, ongoing military conflicts in areas
such as Ukraine and Israel, and related consequences, operating
problems at the Company's manufacturing operations including fires,
explosions, inclement weather, and floods and other natural
disasters, material weaknesses in the Company's internal control
over financial reporting and its ability to remediate such
weaknesses, impacts of pandemics, epidemics, or other public health
emergencies, and other risks discussed in the Company's Annual
Report on Form 10‑K for the year ended December 31, 2023
and from time to time in its other Securities and Exchange
Commission filings and reports. Such forward-looking statements
speak only as of the date on which they are made, and the Company
does not undertake any obligation to update any forward-looking
statement to reflect events or circumstances after the date of this
release. If the Company does update or correct one or more
forward-looking statements, investors and others should not
conclude that it will make additional updates or corrections with
respect thereto or with respect to other forward-looking
statements.
Non-GAAP Financial Measures
The Company is presenting backlog including confirmed orders.
This non-GAAP financial measure is provided to better enable
investors and others to assess the Company's ongoing operating
results and compare them with its competitors. This should be
considered a supplement to, and not a substitute for, or superior
to, financial measures calculated in accordance with GAAP.
For more information, visit www.nwpipe.com.
Contact:
Aaron
Wilkins
Chief Financial Officer
Northwest Pipe Company
investors@nwpipe.com
Or
Addo Investor Relations
nwpx@addo.com
|
NORTHWEST PIPE
COMPANY AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited)
|
|
(In thousands, except
per share amounts)
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2024
|
|
|
2023
|
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
Engineered Steel
Pressure Pipe
|
|
$
|
80,007
|
|
|
$
|
63,546
|
|
|
Precast Infrastructure
and Engineered Systems
|
|
|
33,208
|
|
|
|
35,551
|
|
|
Total net
sales
|
|
|
113,215
|
|
|
|
99,097
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
|
Engineered Steel
Pressure Pipe
|
|
|
65,765
|
|
|
|
55,764
|
|
|
Precast Infrastructure
and Engineered Systems
|
|
|
27,316
|
|
|
|
26,756
|
|
|
Total cost of
sales
|
|
|
93,081
|
|
|
|
82,520
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit:
|
|
|
|
|
|
|
|
|
|
Engineered Steel
Pressure Pipe
|
|
|
14,242
|
|
|
|
7,782
|
|
|
Precast Infrastructure
and Engineered Systems
|
|
|
5,892
|
|
|
|
8,795
|
|
|
Total gross
profit
|
|
|
20,134
|
|
|
|
16,577
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative expense
|
|
|
11,444
|
|
|
|
11,866
|
|
|
Operating
income
|
|
|
8,690
|
|
|
|
4,711
|
|
|
Other income
(expense)
|
|
|
7
|
|
|
|
(29)
|
|
|
Interest
expense
|
|
|
(1,474)
|
|
|
|
(1,369)
|
|
|
Income before income
taxes
|
|
|
7,223
|
|
|
|
3,313
|
|
|
Income tax
expense
|
|
|
1,985
|
|
|
|
951
|
|
|
Net income
|
|
$
|
5,238
|
|
|
$
|
2,362
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.53
|
|
|
$
|
0.24
|
|
|
Diluted
|
|
$
|
0.52
|
|
|
$
|
0.23
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per
share calculations:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
9,916
|
|
|
|
9,940
|
|
|
Diluted
|
|
|
10,045
|
|
|
|
10,087
|
|
|
NORTHWEST PIPE
COMPANY AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
(In
thousands)
|
|
|
|
March 31,
2024
|
|
|
December 31,
2023
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
4,262
|
|
|
$
|
4,068
|
|
|
Trade and other
receivables, net
|
|
|
52,396
|
|
|
|
47,645
|
|
|
Contract
assets
|
|
|
135,715
|
|
|
|
120,516
|
|
|
Inventories
|
|
|
96,481
|
|
|
|
91,229
|
|
|
Prepaid expenses and
other
|
|
|
7,840
|
|
|
|
9,026
|
|
|
Total current
assets
|
|
|
296,694
|
|
|
|
272,484
|
|
|
Property and
equipment, net
|
|
|
145,323
|
|
|
|
143,955
|
|
|
Operating lease
right-of-use assets
|
|
|
86,978
|
|
|
|
88,155
|
|
|
Goodwill
|
|
|
55,504
|
|
|
|
55,504
|
|
|
Intangible assets,
net
|
|
|
30,066
|
|
|
|
31,074
|
|
|
Other
assets
|
|
|
6,735
|
|
|
|
6,709
|
|
|
Total
assets
|
|
$
|
621,300
|
|
|
$
|
597,881
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
Current
debt
|
|
$
|
10,756
|
|
|
$
|
10,756
|
|
|
Accounts
payable
|
|
|
26,365
|
|
|
|
31,142
|
|
|
Accrued
liabilities
|
|
|
22,489
|
|
|
|
27,913
|
|
|
Contract
liabilities
|
|
|
18,596
|
|
|
|
21,450
|
|
|
Current portion of
operating lease liabilities
|
|
|
5,067
|
|
|
|
4,933
|
|
|
Total current
liabilities
|
|
|
83,273
|
|
|
|
96,194
|
|
|
Borrowings on line of
credit
|
|
|
89,863
|
|
|
|
54,485
|
|
|
Operating lease
liabilities
|
|
|
84,211
|
|
|
|
85,283
|
|
|
Deferred income
taxes
|
|
|
10,863
|
|
|
|
10,942
|
|
|
Other long-term
liabilities
|
|
|
10,476
|
|
|
|
10,617
|
|
|
Total
liabilities
|
|
|
278,686
|
|
|
|
257,521
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
342,614
|
|
|
|
340,360
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
621,300
|
|
|
$
|
597,881
|
|
|
NORTHWEST PIPE
COMPANY AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
(In
thousands)
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2024
|
|
|
2023
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
5,238
|
|
|
$
|
2,362
|
|
|
Depreciation and
finance lease amortization
|
|
|
3,405
|
|
|
|
2,799
|
|
|
Amortization of
intangible assets
|
|
|
1,008
|
|
|
|
1,061
|
|
|
Deferred income
taxes
|
|
|
(80)
|
|
|
|
635
|
|
|
Share-based
compensation expense
|
|
|
1,025
|
|
|
|
990
|
|
|
Other, net
|
|
|
159
|
|
|
|
473
|
|
|
Changes in working
capital
|
|
|
(36,844)
|
|
|
|
17,962
|
|
|
Net cash provided by
(used in) operating activities
|
|
|
(26,089)
|
|
|
|
26,282
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(4,570)
|
|
|
|
(4,382)
|
|
|
Other investing
activities
|
|
|
48
|
|
|
|
-
|
|
|
Net cash used in
investing activities
|
|
|
(4,522)
|
|
|
|
(4,382)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
Borrowings on line of
credit
|
|
|
64,664
|
|
|
|
34,602
|
|
|
Repayments on line of
credit
|
|
|
(29,286)
|
|
|
|
(55,682)
|
|
|
Payments on finance
lease obligations
|
|
|
(381)
|
|
|
|
(145)
|
|
|
Tax withholdings
related to net share settlements of equity awards
|
|
|
(320)
|
|
|
|
(422)
|
|
|
Repurchase of common
stock
|
|
|
(3,872)
|
|
|
|
-
|
|
|
Net cash provided by
(used in) financing activities
|
|
|
30,805
|
|
|
|
(21,647)
|
|
|
|
|
|
|
|
|
|
|
|
Change in cash and
cash equivalents
|
|
|
194
|
|
|
|
253
|
|
|
Cash and cash
equivalents, beginning of period
|
|
|
4,068
|
|
|
|
3,681
|
|
|
Cash and cash
equivalents, end of period
|
|
$
|
4,262
|
|
|
$
|
3,934
|
|
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SOURCE Northwest Pipe Company