Northwest Pipe Company Announces First Quarter 2024 Financial Results
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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 - Backlog 1 of $255 million; backlog including confirmed orders 2 of $337 million for the Engineered Steel Pressure Pipe segment ("SPP")
- Order book 3 of $52 million for the Precast Infrastructure and Engineered Systems segment ("Precast")
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Repurchased
$3.7 million of common stock during the quarter
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
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 ofMarch 31, 2024 compared to$273 million as ofDecember 31, 2023 and$297 million as ofMarch 31, 2023 . Backlog including confirmed orders was$337 million as ofMarch 31, 2024 compared to$319 million as ofDecember 31, 2023 and$370 million as ofMarch 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 ofMarch 31, 2024 compared to$46 million as ofDecember 31, 2023 and$58 million as ofMarch 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 inNovember 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 ofApril 30, 2024 .
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Conference Call Details
A conference call and simultaneous webcast to discuss the Company's first quarter 2024 financial results will be held on
About
Founded in 1966,
Forward-Looking Statements
Statements in this press release by
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:
Chief Financial Officer
investors@nwpipe.com
Or
Addo Investor Relations
nwpx@addo.com
NORTHWEST PIPE COMPANY AND SUBSIDIARIES |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(Unaudited) |
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(In thousands, except per share amounts) |
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Three Months Ended |
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2024 |
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2023 |
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Net sales: |
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|
|
|
|
|
|
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Engineered Steel Pressure Pipe |
|
$ |
80,007 |
|
|
$ |
63,546 |
|
Precast Infrastructure and Engineered Systems |
|
|
33,208 |
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|
|
35,551 |
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Total net sales |
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|
113,215 |
|
|
|
99,097 |
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|
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|
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|
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Cost of sales: |
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|
|
|
|
|
|
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Engineered Steel Pressure Pipe |
|
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65,765 |
|
|
|
55,764 |
|
Precast Infrastructure and Engineered Systems |
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|
27,316 |
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|
|
26,756 |
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Total cost of sales |
|
|
93,081 |
|
|
|
82,520 |
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|
|
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Gross profit: |
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|
|
|
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|
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Engineered Steel Pressure Pipe |
|
|
14,242 |
|
|
|
7,782 |
|
Precast Infrastructure and Engineered Systems |
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5,892 |
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|
|
8,795 |
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Total gross profit |
|
|
20,134 |
|
|
|
16,577 |
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|
|
|
|
|
|
|
|
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Selling, general, and administrative expense |
|
|
11,444 |
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|
|
11,866 |
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Operating income |
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|
8,690 |
|
|
|
4,711 |
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Other income (expense) |
|
|
7 |
|
|
|
(29) |
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Interest expense |
|
|
(1,474) |
|
|
|
(1,369) |
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Income before income taxes |
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|
7,223 |
|
|
|
3,313 |
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Income tax expense |
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|
1,985 |
|
|
|
951 |
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Net income |
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$ |
5,238 |
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$ |
2,362 |
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Net income per share: |
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|
|
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Basic |
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$ |
0.53 |
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$ |
0.24 |
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Diluted |
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$ |
0.52 |
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$ |
0.23 |
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|
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Shares used in per share calculations: |
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|
|
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Basic |
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9,916 |
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|
|
9,940 |
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Diluted |
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10,045 |
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10,087 |
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NORTHWEST PIPE COMPANY AND SUBSIDIARIES |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(Unaudited) |
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(In thousands) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
4,262 |
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$ |
4,068 |
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Trade and other receivables, net |
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52,396 |
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47,645 |
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Contract assets |
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135,715 |
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120,516 |
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Inventories |
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96,481 |
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91,229 |
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Prepaid expenses and other |
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7,840 |
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9,026 |
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Total current assets |
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296,694 |
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272,484 |
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Property and equipment, net |
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145,323 |
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143,955 |
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Operating lease right-of-use assets |
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86,978 |
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88,155 |
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55,504 |
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55,504 |
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Intangible assets, net |
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30,066 |
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31,074 |
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Other assets |
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6,735 |
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6,709 |
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Total assets |
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$ |
621,300 |
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$ |
597,881 |
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Liabilities and Stockholders' Equity |
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Current liabilities: |
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Current debt |
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$ |
10,756 |
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$ |
10,756 |
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Accounts payable |
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26,365 |
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31,142 |
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Accrued liabilities |
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22,489 |
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27,913 |
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Contract liabilities |
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18,596 |
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21,450 |
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Current portion of operating lease liabilities |
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5,067 |
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|
4,933 |
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Total current liabilities |
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83,273 |
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|
96,194 |
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Borrowings on line of credit |
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89,863 |
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|
54,485 |
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Operating lease liabilities |
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84,211 |
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|
85,283 |
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Deferred income taxes |
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10,863 |
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10,942 |
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Other long-term liabilities |
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10,476 |
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|
10,617 |
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Total liabilities |
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278,686 |
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|
257,521 |
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Stockholders' equity |
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342,614 |
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340,360 |
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Total liabilities and stockholders' equity |
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$ |
621,300 |
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$ |
597,881 |
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NORTHWEST PIPE COMPANY AND SUBSIDIARIES |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(Unaudited) |
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(In thousands) |
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Three Months Ended |
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2024 |
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2023 |
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Cash flows from operating activities: |
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Net income |
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$ |
5,238 |
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$ |
2,362 |
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Depreciation and finance lease amortization |
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3,405 |
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2,799 |
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Amortization of intangible assets |
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1,008 |
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|
1,061 |
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Deferred income taxes |
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(80) |
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|
635 |
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Share-based compensation expense |
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1,025 |
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|
990 |
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Other, net |
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|
159 |
|
|
|
473 |
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Changes in working capital |
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(36,844) |
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17,962 |
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Net cash provided by (used in) operating activities |
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(26,089) |
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|
26,282 |
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Cash flows from investing activities: |
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Purchases of property and equipment |
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(4,570) |
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(4,382) |
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Other investing activities |
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48 |
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|
- |
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Net cash used in investing activities |
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(4,522) |
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(4,382) |
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Cash flows from financing activities: |
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Borrowings on line of credit |
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64,664 |
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34,602 |
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Repayments on line of credit |
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(29,286) |
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(55,682) |
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Payments on finance lease obligations |
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(381) |
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(145) |
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Tax withholdings related to net share settlements of equity awards |
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(320) |
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|
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(422) |
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Repurchase of common stock |
|
|
(3,872) |
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|
|
- |
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Net cash provided by (used in) financing activities |
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30,805 |
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|
|
(21,647) |
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|
|
|
|
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Change in cash and cash equivalents |
|
|
194 |
|
|
|
253 |
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Cash and cash equivalents, beginning of period |
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|
4,068 |
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|
3,681 |
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Cash and cash equivalents, end of period |
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$ |
4,262 |
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$ |
3,934 |
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