VANCOUVER, Wash., May 3,
2021 /PRNewswire/ -- Northwest Pipe Company (NASDAQ: NWPX), an
industry leader of engineered pipeline systems for water
infrastructure, today announced its financial results for the first
quarter ended March 31, 2021. The Company will broadcast its
first quarter 2021 earnings conference call on Tuesday, May 4,
2021 at 7:00 a.m. PT.
First Quarter 2021 Results
Net sales increased 4.9% to $72.3 million in the first quarter of 2021
from $68.9 million in the first
quarter of 2020. The increase was primarily due to the Geneva Pipe
and Precast Company ("Geneva")
operations acquired in January 2020,
which contributed $12.3 million
in the first quarter of 2021 compared to $8.0 million in the first quarter of 2020.
The 1% decrease in net sales at the Company's legacy steel pipe
facilities was due to a 2% decrease in selling price per ton due to
a change in product mix, partially offset by a 1% increase in tons
produced resulting from changes in project timing.
Gross profit decreased 8.4% to $8.8 million, or 12.1% of net sales, in the
first quarter of 2021 from $9.6 million, or 13.9% of net sales, in the
first quarter of 2020, primarily due to product mix at the
Company's legacy steel pipe facilities. Gross profit in the first
quarter of 2020 included $0.4 million of incremental production costs
resulting from the fire at the Company's Saginaw, Texas facility in April 2019 as well as $0.3 million in acquisition-related
inventory charges.
Net income was $2.2 million,
or $0.22 per diluted share, in the
first quarter of 2021 compared to $0.6 million, or $0.06 per diluted share, in the first quarter of
2020. The first quarter of 2020 included $2.8 million of pre-tax acquisition-related
transaction costs and inventory charges and $0.4 million of pre-tax incremental
production costs resulting from the fire at the Company's
Saginaw facility. After
considering non-recurring items, adjusted net income was
$2.9 million, or $0.30 per diluted share, in the first quarter of
2020. There were no adjustments to consider in the first quarter of
2021. See the Company's "Reconciliation of Non-GAAP Financial
Measures" in the table below.
Backlog represents the balance of remaining performance
obligations under signed contracts for water infrastructure steel
pipe products for which revenue is recognized over time. Backlog
was approximately $178 million as of March 31, 2021
compared to $167 million as of December 31, 2020 and
$170 million as of March 31, 2020. 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 $210 million
as of March 31, 2021 compared to $221 million as of
December 31, 2020 and $224 million as of March 31,
2020.
Management Commentary
"As we expected, the first quarter was challenging due to the
bidding delays, extreme weather events, and supply disruptions in
the steel market. Despite all of the issues, the first quarter was
fairly similar to what we saw in the first quarters of 2019 and
2020. We finished the first quarter with a steel pressure pipe
backlog of $210 million representing the eleventh straight
quarter over $200 million," said Scott
Montross, President and Chief Executive Officer of the
Company. "The second quarter will continue to be challenging as we
expect steel market supply disruptions to persist which could
affect production. The bidding delays that have occurred over the
last several months are diminishing but appear to have caused
project requirements to stack up which could lead to an extended
period of very strong steel pressure pipe demand. The first
quarter's ending precast concrete order book was elevated and
continues to gain strength, indicating the potential for a strong
second quarter in the precast concrete business."
Balance Sheet Details
Total cash and cash equivalents were $29.9 million as of March 31, 2021,
down from $37.9 million as of
December 31, 2020 primarily due to changes in working capital
and debt service repayments.
As of March 31, 2021, the Company had $8.4 million of outstanding term loan
borrowings and no outstanding revolving loan borrowings, with
additional revolving loan borrowing capacity of approximately
$52 million.
Conference Call Details
A conference call and simultaneous webcast to discuss the
Company's first quarter 2021 financial results will be held on
Tuesday, May 4, 2021 at 7:00 a.m. PT. The call will
be broadcast live over the Internet hosted 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 one hour after the event and will remain
available until Tuesday, May 18, 2021 by dialing
1–877–344–7529 in the U.S. or 1–412–317–0088 internationally and
entering the replay access code: 10155132.
About Northwest Pipe Company
Founded in 1966, Northwest Pipe Company is a leading
manufacturer for water related infrastructure products. In addition
to being the largest manufacturer of engineered steel water
pipeline systems in North America,
the Company produces high-quality precast and reinforced concrete
products, Permalok® steel casing pipe, bar-wrapped concrete
cylinder pipe, as well as linings, coatings, joints, and one of the
largest offerings of fittings and specialized components. Northwest
Pipe Company provides solution-based products for a wide range of
markets including water transmission and infrastructure, water and
wastewater plant piping, structural stormwater and sewer systems,
trenchless technology, and pipeline 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.
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 and order 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, 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 Geneva and other acquisitions into its
business and operations and achieve significant administrative and
operational cost synergies and accretion to financial results,
impacts of recent U.S. tax reform legislation on the Company's
results of operations, adequacy of the Company's insurance
coverage, operating problems at the Company's manufacturing
operations including fires, explosions, inclement weather, and
natural disasters, impacts of pandemics, epidemics, or other public
health emergencies, such as coronavirus disease 2019, and other
risks discussed in the Company's Annual Report on Form 10–K
for the year ended December 31, 2020 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, and adjusted diluted net income 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. 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
(360) 397–6294 • investors@nwpipe.com
Or Addo Investor Relations
(310) 829–5400
NORTHWEST PIPE
COMPANY AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
(In thousands, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended March 31,
|
|
2021
|
|
2020
|
|
|
|
|
|
|
Net
sales
|
$
|
72,311
|
|
$
|
68,923
|
Cost of
sales
|
|
63,536
|
|
|
59,344
|
Gross
profit
|
|
8,775
|
|
|
9,579
|
Selling,
general, and administrative expense
|
|
5,830
|
|
|
7,945
|
Operating
income
|
|
2,945
|
|
|
1,634
|
Other income
(expense)
|
|
59
|
|
|
(401)
|
Interest
income
|
|
-
|
|
|
22
|
Interest
expense
|
|
(227)
|
|
|
(219)
|
Income before
income taxes
|
|
2,777
|
|
|
1,036
|
Income tax
expense
|
|
602
|
|
|
472
|
Net
income
|
$
|
2,175
|
|
$
|
564
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
Basic
|
$
|
0.22
|
|
$
|
0.06
|
Diluted
|
$
|
0.22
|
|
$
|
0.06
|
|
|
|
|
|
|
Shares used in
per share calculations:
|
|
|
|
|
|
Basic
|
|
9,814
|
|
|
9,751
|
Diluted
|
|
9,921
|
|
|
9,829
|
NORTHWEST PIPE
COMPANY AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2021
|
|
December 31,
2020
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
29,893
|
|
$
|
37,927
|
|
|
Trade and other
receivables, net
|
|
40,214
|
|
|
42,680
|
|
|
Contract
assets
|
|
75,466
|
|
|
76,985
|
|
|
Inventories
|
|
33,177
|
|
|
29,177
|
|
|
Prepaid expenses and
other
|
|
5,560
|
|
|
5,194
|
|
|
Total current
assets
|
|
184,310
|
|
|
191,963
|
|
Property and
equipment, net
|
|
109,423
|
|
|
110,184
|
|
Operating lease
right-of-use assets
|
|
34,228
|
|
|
30,813
|
|
Goodwill
|
|
22,985
|
|
|
22,985
|
|
Intangible assets,
net
|
|
10,202
|
|
|
10,518
|
|
Other
assets
|
|
6,167
|
|
|
6,552
|
|
|
Total
assets
|
$
|
367,315
|
|
$
|
373,015
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Current portion of
long-term debt
|
$
|
3,131
|
|
$
|
7,701
|
|
|
Accounts
payable
|
|
13,260
|
|
|
12,993
|
|
|
Accrued
liabilities
|
|
14,607
|
|
|
16,814
|
|
|
Contract
liabilities
|
|
2,034
|
|
|
6,189
|
|
|
Current portion of
operating lease liabilities
|
|
2,382
|
|
|
2,204
|
|
|
Total current
liabilities
|
|
35,414
|
|
|
45,901
|
|
Long-term
debt
|
|
5,106
|
|
|
5,888
|
|
Operating lease
liabilities
|
|
31,236
|
|
|
27,911
|
|
Deferred income
taxes
|
|
12,750
|
|
|
12,481
|
|
Other long-term
liabilities
|
|
10,472
|
|
|
11,208
|
|
|
Total
liabilities
|
|
94,978
|
|
|
103,389
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
272,337
|
|
|
269,626
|
|
|
Total liabilities and
stockholders' equity
|
$
|
367,315
|
|
$
|
373,015
|
NORTHWEST PIPE
COMPANY AND SUBSIDIARIES
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
|
(Unaudited)
|
(In thousands, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2021
|
|
2020
|
|
|
|
|
|
Net
income, as reported
|
$ 2,175
|
|
$
564
|
Adjustments for
non-recurring items:
|
|
|
|
Acquisition-related transaction costs
|
-
|
|
2,517
|
Saginaw fire incremental production costs
|
-
|
|
392
|
Acquisition-related inventory charges
|
-
|
|
266
|
Estimated tax impact of non-recurring items
|
-
|
|
(793)
|
Adjusted
net income
|
$ 2,175
|
|
$ 2,946
|
|
|
|
|
|
Diluted
net income per share, as reported
|
$
0.22
|
|
$
0.06
|
|
|
|
|
|
Adjusted
diluted net income per share
|
$
0.22
|
|
$
0.30
|
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SOURCE Northwest Pipe Company