Northwest Pipe Company Reports Profitable Quarterly Results and Announces First Quarter Conference Call
May 08 2019 - 4:30PM
Northwest Pipe Company (Nasdaq: NWPX), an industry leader of
engineered welded steel pipe products for the water transmission
market, announced today its financial results for the quarter ended
March 31, 2019. The Company will broadcast its first quarter
2019 earnings conference call on Thursday, May 9, 2019 at 7:00
am PDT.
First Quarter 2019 ResultsNet
sales increased 87.8% to $62.6 million in the first quarter of
2019 from $33.4 million in the first quarter of 2018. The
acquired Ameron operations contributed $11.8 million of the
increase in net sales in the first quarter of 2019. The increase in
net sales in the first quarter of 2019 compared to the first
quarter of 2018 was due to a 68% increase in tons produced and a
12% increase in selling price per ton. The increase in tons
produced was due to project mix.
Gross profit increased 387.5% to
$6.6 million (10.5% of net sales) in the first quarter of 2019
from $1.3 million (4.0% of net sales) in the first quarter of
2018. The increase in gross profit in the first quarter of 2019
compared to the first quarter of 2018 was primarily due to
increased production volume.
Net income was $2.2 million, or $0.22 per
diluted share, in the first quarter of 2019. Net loss in the first
quarter of 2018 was $2.0 million, or $0.20 per diluted share,
which included $0.3 million ($0.2 million, net of taxes)
in restructuring expense. After considering non-recurring items,
the Company’s first quarter 2018 adjusted net loss was $1.7
million, or $0.18 per diluted share. See the Company’s
Reconciliation of Non-GAAP Financial Measures below.
Backlog represents the balance of remaining
performance obligations under signed contracts (“Backlog”). Backlog
was $167 million as of March 31, 2019 compared to
$81 million as of December 31, 2018, and $41 million
as of March 31, 2018. The Company also has projects for which
it has been notified that it is the successful bidder, but a
binding agreement has not been executed (“Confirmed Orders”).
Backlog including Confirmed Orders was $242 million as of
March 31, 2019 compared to $252 million as of
December 31, 2018 and $87 million as of March 31,
2018.
Outlook – “With our strong
backlog and solid market conditions, we expect continuing strength
in revenue and improving gross margins as we progress through
2019,” said Scott Montross, President and CEO of the Company.
“However, the next couple of quarters could have anomalies related
to the timing of expenses and insurance coverage from the fire at
the Saginaw coatings building.”
Conference Call – The
Company will hold its first quarter 2019 earnings conference call
on Thursday, May 9, 2019 at 7:00 am PDT. To listen to the live
call, visit the Northwest Pipe Company website, www.nwpipe.com,
under Investor Relations. For those unable to listen to the live
call, the replay will be available approximately one hour after the
event and will remain available until Friday, June 7, 2019 by
dialing 1-866-380-6739 passcode 6301.
About Northwest Pipe
Company – Founded in 1966, Northwest Pipe Company is
the largest manufacturer of engineered welded steel pipe water
systems in North America. The Company produces high-quality
engineered steel water pipe, bar-wrapped concrete cylinder pipe,
Permalok® steel casing, T‑Lock® and Arrow‑Lock® PVC liners, as well
as custom linings, coatings, joints, and one of the largest
offering of fittings and specialized components in North America.
Northwest Pipe Company provides solution-based products for a wide
range of markets including water transmission, water and wastewater
plant piping, trenchless technology, and piping rehabilitation.
Strategically positioned to meet growing water and wastewater
infrastructure needs, the Company is headquartered in Vancouver,
Washington, and has manufacturing facilities across North America.
Please visit www.nwpipe.com for more information.
Forward-Looking
Statements – Statements in this press release by
Scott Montross are "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, the timing
of customer orders and deliveries, production schedules, the price
and availability of raw materials, price and volume of imported
product, 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, the
Company’s ability to identify and complete internal initiatives
and/or acquisitions in order to grow its Water Transmission
business, the Company’s ability to effectively integrate
acquisitions into its business and operations and achieve
significant administrative and operational cost synergies, the
impacts of the Tax Cuts and Jobs Act of 2017, operating problems at
our manufacturing operations including fires, explosions, inclement
weather and natural disasters and other risks discussed in the
Company’s Annual Report on Form 10‑K for the year ended
December 31, 2018 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, Adjusted net income (loss), and
Adjusted diluted net income (loss) per share. These non-GAAP
financial measures are provided to better enable investors and
others to assess the Company’s results and compare them with its
competitors. These should be considered as supplements to, and not
as substitutes for, or superior to, financial measures calculated
in accordance with GAAP.
For more information, visit www.nwpipe.com.
NORTHWEST PIPE COMPANY AND SUBSIDIARIES |
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
(Unaudited) |
|
(In thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
Net sales |
$ |
62,643 |
|
|
$ |
33,365 |
|
|
Cost of sales |
|
56,072 |
|
|
|
32,017 |
|
|
Gross profit |
|
6,571 |
|
|
|
1,348 |
|
|
Selling, general, and administrative expense |
|
4,247 |
|
|
|
3,385 |
|
|
Restructuring expense |
|
- |
|
|
|
305 |
|
|
Operating income
(loss) |
|
2,324 |
|
|
|
(2,342 |
) |
|
Other income |
|
159 |
|
|
|
170 |
|
|
Interest
income |
|
4 |
|
|
|
77 |
|
|
Interest
expense |
|
(131 |
) |
|
|
(128 |
) |
|
Income (loss) before
income taxes |
|
2,356 |
|
|
|
(2,223 |
) |
|
Income tax expense
(benefit) |
|
191 |
|
|
|
(272 |
) |
|
Net income
(loss) |
$ |
2,165 |
|
|
$ |
(1,951 |
) |
|
|
|
|
|
|
|
|
Net income (loss) per
share: |
|
|
|
|
|
|
Basic |
$ |
0.22 |
|
|
$ |
(0.20 |
) |
|
Diluted |
$ |
0.22 |
|
|
$ |
(0.20 |
) |
|
Shares used in per share
calculations: |
|
|
|
|
|
|
Basic |
|
9,735 |
|
|
|
9,707 |
|
|
Diluted |
|
9,735 |
|
|
|
9,707 |
|
|
|
|
|
|
|
|
|
NORTHWEST PIPE COMPANY AND SUBSIDIARIES |
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
(Unaudited) |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2019 |
|
December 31, 2018 |
|
Assets |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
3,843 |
|
$ |
6,677 |
|
|
|
Trade and other receivables, net |
|
27,791 |
|
|
34,394 |
|
|
|
Contract assets |
|
70,267 |
|
|
74,271 |
|
|
|
Inventories |
|
41,116 |
|
|
39,376 |
|
|
|
Prepaid expenses and other |
|
4,505 |
|
|
4,795 |
|
|
|
Total current assets |
|
147,522 |
|
|
159,513 |
|
|
Property and equipment, net |
|
102,397 |
|
|
103,447 |
|
|
Other assets |
|
16,606 |
|
|
8,390 |
|
|
|
Total assets |
$ |
266,525 |
|
$ |
271,350 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
$ |
15,524 |
|
$ |
19,784 |
|
|
|
Accrued liabilities |
|
8,916 |
|
|
7,963 |
|
|
|
Contract liabilities |
|
4,530 |
|
|
3,745 |
|
|
|
Total current liabilities |
|
28,970 |
|
|
31,492 |
|
|
Borrowings on line of credit |
|
- |
|
|
11,464 |
|
|
Other long-term liabilities |
|
16,767 |
|
|
9,804 |
|
|
|
Total liabilities |
|
45,737 |
|
|
52,760 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
220,788 |
|
|
218,590 |
|
|
|
Total liabilities and stockholders’ equity |
$ |
266,525 |
|
$ |
271,350 |
|
|
|
|
|
|
|
|
|
|
NORTHWEST PIPE COMPANY AND SUBSIDIARIES |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
(Unaudited) |
(In thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
March 31, |
|
|
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
Net income (loss), as reported |
|
|
$ |
2,165 |
|
$ |
(1,951 |
) |
Adjustments for non-recurring items: |
|
|
|
|
|
Restructuring expense |
|
|
|
- |
|
|
305 |
|
Estimated tax impact of non-recurring items |
|
|
- |
|
|
(64 |
) |
Adjusted net income (loss) |
|
|
$ |
2,165 |
|
$ |
(1,710 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) per share, as reported |
|
$ |
0.22 |
|
$ |
(0.20 |
) |
|
|
|
|
|
|
|
Adjusted diluted net income (loss) per share |
|
$ |
0.22 |
|
$ |
(0.18 |
) |
|
|
|
|
|
|
|
Contact:
Robin Gantt
Chief Financial Officer
Northwest Pipe Company
360-397-6325 • rgantt@nwpipe.com
Northwest Pipe (NASDAQ:NWPX)
Historical Stock Chart
From Jun 2024 to Jul 2024
Northwest Pipe (NASDAQ:NWPX)
Historical Stock Chart
From Jul 2023 to Jul 2024