Northwest Pipe Company Announces Third Quarter 2024 Financial Results
-
Net sales of
$130.2 million increased 9.7% year-over-year -
Record net sales of
$44.3 million for the Precast Infrastructure and Engineered Systems segment ("Precast") -
Record gross profit of
$27.0 million increased 40.0% year-over-year; gross profit margin of 20.8% -
Net income of
$1.02 per diluted share -
Generated strong net cash provided by operating activities of
$22.7 million -
Backlog
1
of
$231 million for the Engineered Steel Pressure Pipe segment ("SPP"); backlog including confirmed orders2 of$282 million -
Order book
3
of
$57 million for Precast
Management Commentary
"Our SPP revenues remained near record levels, with gross margins that improved 40 basis points to 19.4% versus the prior quarter," said
Montross continued, "We expect the fourth quarter for the SPP business to be stronger than we have seen in recent years, and the Precast business to continue to perform well by historical standards with stable margins. Overall, we are optimistic about our ability to finish the year on a strong note, positioning us well for continued growth."
Third Quarter 2024 Financial Results
Consolidated
- Net sales increased 9.7% to
$130.2 million from$118.7 million in the third quarter of 2023. - Gross profit increased 40.0% to a record of
$27.0 million , or 20.8% of net sales, from$19.3 million , or 16.3% of net sales, in the third quarter of 2023. - Net income was
$10.3 million , or$1.02 per diluted share, compared to$5.8 million , or$0.58 per diluted share, in the third quarter of 2023.
Engineered Steel Pressure Pipe Segment (SPP)
- SPP net sales increased 6.7% to
$85.9 million from$80.5 million in the third quarter of 2023 driven by an 18% increase in tons produced resulting from an improved bidding environment coupled with changes in project timing, partially offset by a 9% decrease in selling price per ton due to lower raw materials costs. - SPP gross profit increased 52.4% to
$16.6 million , or 19.4% of SPP net sales, from$10.9 million , or 13.6% of SPP net sales, in the third quarter of 2023 primarily due to increased volume and changes in product mix. - SPP backlog was
$231 million as ofSeptember 30, 2024 compared to$282 million as ofJune 30, 2024 and$253 million as ofSeptember 30, 2023 . Backlog including confirmed orders was$282 million as ofSeptember 30, 2024 compared to$348 million as ofJune 30, 2024 and$335 million as ofSeptember 30, 2023 .
Precast Infrastructure and Engineered Systems Segment (Precast)
- Precast net sales increased 15.8% to a quarterly record of
$44.3 million from$38.2 million in the third quarter of 2023 driven by a 35% increase in volume shipped, partially offset by a 14% decrease in selling prices due to changes in product mix. - Precast gross profit increased 24.0% to
$10.4 million , or 23.5% of Precast net sales, from$8.4 million , or 21.9% of Precast net sales, in the third quarter of 2023 primarily due to increased shipment volume. - Precast order book was
$57 million as ofSeptember 30, 2024 compared to$62 million as ofJune 30, 2024 and$52 million as ofSeptember 30, 2023 .
Balance Sheet and Cash Flow
- As of
September 30, 2024 , the Company had$60.7 million of outstanding revolving loan borrowings and additional borrowing capacity of approximately$63 million under the revolving credit facility. - Net cash provided by operating activities was
$22.7 million in the third quarter of 2024 compared to$16.9 million in the third quarter of 2023 primarily due to a$6.1 million increase in cash provided by net income adjusted for non-cash items, partially offset by a$0.3 million decrease in cash provided by changes in working capital. - Capital expenditures were
$6.0 million in the third quarter of 2024 compared to$4.8 million in the third quarter of 2023.
____________________ |
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 third 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 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share amounts) |
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Three Months Ended |
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Nine Months Ended |
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2024 |
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2023 |
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2024 |
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2023 |
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Net sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered Steel Pressure Pipe |
|
$ |
85,924 |
|
|
$ |
80,493 |
|
|
$ |
255,454 |
|
|
$ |
221,294 |
|
Precast Infrastructure and Engineered Systems |
|
|
44,277 |
|
|
|
38,229 |
|
|
|
117,467 |
|
|
|
112,897 |
|
Total net sales |
|
|
130,201 |
|
|
|
118,722 |
|
|
|
372,921 |
|
|
|
334,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered Steel Pressure Pipe |
|
|
69,296 |
|
|
|
69,582 |
|
|
|
207,603 |
|
|
|
190,030 |
|
Precast Infrastructure and Engineered Systems |
|
|
33,886 |
|
|
|
29,846 |
|
|
|
92,351 |
|
|
|
85,809 |
|
Total cost of sales |
|
|
103,182 |
|
|
|
99,428 |
|
|
|
299,954 |
|
|
|
275,839 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered Steel Pressure Pipe |
|
|
16,628 |
|
|
|
10,911 |
|
|
|
47,851 |
|
|
|
31,264 |
|
Precast Infrastructure and Engineered Systems |
|
|
10,391 |
|
|
|
8,383 |
|
|
|
25,116 |
|
|
|
27,088 |
|
Total gross profit |
|
|
27,019 |
|
|
|
19,294 |
|
|
|
72,967 |
|
|
|
58,352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expense |
|
|
11,581 |
|
|
|
10,237 |
|
|
|
35,220 |
|
|
|
33,119 |
|
Operating income |
|
|
15,438 |
|
|
|
9,057 |
|
|
|
37,747 |
|
|
|
25,233 |
|
Other expense |
|
|
(66) |
|
|
|
(61) |
|
|
|
(287) |
|
|
|
(224) |
|
Interest expense |
|
|
(1,452) |
|
|
|
(1,162) |
|
|
|
(4,749) |
|
|
|
(3,722) |
|
Income before income taxes |
|
|
13,920 |
|
|
|
7,834 |
|
|
|
32,711 |
|
|
|
21,287 |
|
Income tax expense |
|
|
3,667 |
|
|
|
2,016 |
|
|
|
8,601 |
|
|
|
5,659 |
|
Net income |
|
$ |
10,253 |
|
|
$ |
5,818 |
|
|
$ |
24,110 |
|
|
$ |
15,628 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.03 |
|
|
$ |
0.58 |
|
|
$ |
2.43 |
|
|
$ |
1.57 |
|
Diluted |
|
$ |
1.02 |
|
|
$ |
0.58 |
|
|
$ |
2.40 |
|
|
$ |
1.55 |
|
|
|
|
|
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|
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|
|
|
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|
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Shares used in per share calculations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Basic |
|
|
9,919 |
|
|
|
10,014 |
|
|
|
9,915 |
|
|
|
9,985 |
|
Diluted |
|
|
10,055 |
|
|
|
10,107 |
|
|
|
10,040 |
|
|
|
10,088 |
|
NORTHWEST PIPE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) |
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Assets |
|
|
|
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Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
5,723 |
|
|
$ |
4,068 |
|
Trade and other receivables, net |
|
|
79,507 |
|
|
|
47,645 |
|
Contract assets |
|
|
120,983 |
|
|
|
120,516 |
|
Inventories |
|
|
84,977 |
|
|
|
91,229 |
|
Prepaid expenses and other |
|
|
2,530 |
|
|
|
9,026 |
|
Total current assets |
|
|
293,720 |
|
|
|
272,484 |
|
Property and equipment, net |
|
|
149,262 |
|
|
|
143,955 |
|
Operating lease right-of-use assets |
|
|
84,161 |
|
|
|
88,155 |
|
|
|
|
55,504 |
|
|
|
55,504 |
|
Intangible assets, net |
|
|
28,050 |
|
|
|
31,074 |
|
Other assets |
|
|
6,493 |
|
|
|
6,709 |
|
Total assets |
|
$ |
617,190 |
|
|
$ |
597,881 |
|
|
|
|
|
|
|
|
|
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Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
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Current liabilities: |
|
|
|
|
|
|
|
|
Current debt |
|
$ |
10,756 |
|
|
$ |
10,756 |
|
Accounts payable |
|
|
20,356 |
|
|
|
31,142 |
|
Accrued liabilities |
|
|
26,659 |
|
|
|
27,913 |
|
Contract liabilities |
|
|
28,897 |
|
|
|
21,450 |
|
Current portion of operating lease liabilities |
|
|
5,181 |
|
|
|
4,933 |
|
Total current liabilities |
|
|
91,849 |
|
|
|
96,194 |
|
Borrowings on line of credit |
|
|
60,704 |
|
|
|
54,485 |
|
Operating lease liabilities |
|
|
81,748 |
|
|
|
85,283 |
|
Deferred income taxes |
|
|
10,856 |
|
|
|
10,942 |
|
Other long-term liabilities |
|
|
9,673 |
|
|
|
10,617 |
|
Total liabilities |
|
|
254,830 |
|
|
|
257,521 |
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
362,360 |
|
|
|
340,360 |
|
Total liabilities and stockholders' equity |
|
$ |
617,190 |
|
|
$ |
597,881 |
|
NORTHWEST PIPE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) |
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|
||||||||
|
|
Nine Months Ended |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
24,110 |
|
|
$ |
15,628 |
|
Depreciation and finance lease amortization |
|
|
11,255 |
|
|
|
8,644 |
|
Amortization of intangible assets |
|
|
3,024 |
|
|
|
3,147 |
|
Deferred income taxes |
|
|
(70) |
|
|
|
226 |
|
Share-based compensation expense |
|
|
3,836 |
|
|
|
3,050 |
|
Other, net |
|
|
539 |
|
|
|
1,298 |
|
Changes in working capital |
|
|
(23,766) |
|
|
|
12,416 |
|
Net cash provided by operating activities |
|
|
18,928 |
|
|
|
44,409 |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(16,609) |
|
|
|
(13,244) |
|
Payment of working capital adjustment in acquisition of business |
|
|
- |
|
|
|
(2,731) |
|
Other investing activities |
|
|
62 |
|
|
|
63 |
|
Net cash used in investing activities |
|
|
(16,547) |
|
|
|
(15,912) |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Borrowings on line of credit |
|
|
142,883 |
|
|
|
113,047 |
|
Repayments on line of credit |
|
|
(136,664) |
|
|
|
(138,667) |
|
Payments on finance lease liabilities |
|
|
(1,067) |
|
|
|
(548) |
|
Tax withholdings related to net share settlements of equity awards |
|
|
(1,449) |
|
|
|
(1,652) |
|
Repurchase of common stock |
|
|
(4,429) |
|
|
|
- |
|
Other financing activities |
|
|
- |
|
|
|
(300) |
|
Net cash used in financing activities |
|
|
(726) |
|
|
|
(28,120) |
|
|
|
|
|
|
|
|
|
|
Change in cash and cash equivalents |
|
|
1,655 |
|
|
|
377 |
|
Cash and cash equivalents, beginning of period |
|
|
4,068 |
|
|
|
3,681 |
|
Cash and cash equivalents, end of period |
|
$ |
5,723 |
|
|
$ |
4,058 |
|
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