- Net sales of $123.0 million
increased 45.3% year-over-year
- Gross profit of $25.1 million
increased 103.2% year-over-year
- Net income of $0.99 per
diluted share; adjusted net income of $1.05 per diluted share
- Backlog1 of $295
million; backlog including confirmed
orders2 of $347
million for the Engineered Steel Pressure Pipe segment
("SPP"), a new quarterly record
- Order book3 of $74 million for the Precast Infrastructure and
Engineered Systems segment ("Precast")
VANCOUVER, Wash., Nov. 8, 2022
/PRNewswire/ -- Northwest Pipe Company (NASDAQ: NWPX) (the
"Company"), a leading manufacturer of water-related infrastructure
including engineered pipeline systems and precast products, today
announced its financial results for the third quarter ended
September 30, 2022. The Company will broadcast its third
quarter 2022 earnings conference call on Wednesday,
November 9, 2022 at 7:00 a.m. PT.
Management Commentary
"Our third quarter Precast Infrastructure and Engineered Systems
business remained strong, producing $39.3 million in revenue and a 28% gross
margin despite both revenue and gross margins being a little
subdued by increased downtime associated with the planned system
integration at our ParkUSA facilities. The order book of
$74 million, while slightly off the record level from the
second quarter, is very high by historical standards as we enter
the seasonally slow time of the year. Regardless of some of the
current economic headwinds, we expect the Precast business to
remain fairly strong for the near term," said Scott Montross, President and Chief Executive
Officer of Northwest Pipe Company.
Mr. Montross continued, "In the third quarter our
Engineered Steel Pressure Pipe business generated $83.7 million in revenue and gross margin of
17%. We have continued to experience strong bidding levels and
ended the third quarter with a record backlog including confirmed
orders of $347 million. Due to the two major holidays and
potential seasonal weather risks, we expect our fourth quarter SPP
revenue to be modestly lower and gross margins that are in-line
with the third quarter of 2022."
Third Quarter 2022 Financial Results
Consolidated
- Net sales increased 45.3% to $123.0
million from $84.6 million in
the third quarter of 2021.
- Gross profit increased 103.2% to $25.1
million, or 20.4% of net sales, from $12.4 million, or 14.6% of net sales, in the
third quarter of 2021.
- Net income was $10.0 million, or
$0.99 per diluted share, compared to
$4.9 million, or $0.50 per diluted share, in the third quarter of
2021.
- Adjusted net income was $10.5
million, or $1.05 per diluted
share, compared to $5.4 million, or
$0.54 per diluted share, in the third
quarter of 2021. Adjusted net income, which is a non-GAAP financial
measure, is reconciled to net income in the table titled
"Reconciliation of Non-GAAP Financial Measures" below.
Engineered Steel Pressure Pipe Segment (SPP)
- SPP net sales increased 20.5% to $83.7
million from $69.4 million in
the third quarter of 2021 driven by a 17% increase in tons produced
resulting from changes in project timing and a 3% increase in
selling price per ton due to changes in product mix.
- SPP gross profit increased 60.5% to $14.2 million, or 17.0% of SPP net sales,
compared to $8.8 million, or 12.7% of
SPP net sales, in the third quarter of 2021 primarily due to
increased production volume and product pricing.
- SPP backlog was $295 million as
of September 30, 2022 compared to
$303 million as of June 30, 2022 and $191
million as of September 30,
2021. Backlog including confirmed orders was $347 million as of September 30, 2022 compared to $338 million as of June
30, 2022 and $273 million as
of September 30, 2021.
Precast Infrastructure and Engineered Systems Segment
(Precast)
- Precast net sales increased 158.6% to $39.3 million from $15.2
million in the third quarter of 2021 primarily due to the
Park Environmental Equipment, LLC ("ParkUSA") operations acquired
in October 2021, which contributed
$20.5 million in net sales. In
addition, net sales at the Company's pre-existing precast
operations increased 24% resulting from a 49% increase in selling
prices due to high demand for the Company's concrete products
coupled with increased material costs, partially offset by a 17%
decrease in volume shipped due to changes in product mix.
- Precast gross profit increased 210.4% to $10.9 million, or 27.8% of Precast net sales,
from $3.5 million, or 23.1% of
Precast net sales, in the third quarter of 2021 due to
contributions from the ParkUSA operations, as well as improved
pricing at the pre-existing precast operations.
- Precast order book was $74
million as of September 30,
2022 compared to $75 million
as of June 30, 2022 and $24 million as of September 30, 2021. The quarter ended
December 31, 2021 was the first
period that included the order book for ParkUSA.
Liquidity Details
As of September 30, 2022, the Company had $71.8 million of outstanding revolving loan
borrowings and additional borrowing capacity of $52 million.
The Company expects to have sufficient credit available to support
its operations for at least the next twelve months with near-term
repayment of outstanding debt remaining a high priority.
Conference Call Details
A conference call and simultaneous webcast to discuss the
Company's third quarter 2022 financial results will be held on
Wednesday, November 9, 2022 at 7:00 a.m. PT. 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
Wednesday, November 23, 2022 by dialing 1‑844-512-2921 in the
U.S. or 1‑412-317-6671 internationally and entering the replay
access code: 13733442.
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 manufactures high-quality precast and reinforced
concrete products; water, wastewater, and stormwater equipment;
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, and Permalok® 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 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, 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 ParkUSA and other 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, 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 Ukraine and related consequences, operating
problems at the Company's manufacturing operations including fires,
explosions, inclement weather, and floods and other 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, 2021 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 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
(360) 397‑6294 • investors@nwpipe.com
Or Addo Investor Relations
(310) 829‑5400
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
NORTHWEST PIPE
COMPANY AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
(In thousands, except
per share amounts)
|
|
|
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered Steel
Pressure Pipe
|
|
$
|
83,663
|
|
|
$
|
69,439
|
|
|
$
|
235,446
|
|
|
$
|
188,244
|
|
Precast Infrastructure
and
Engineered Systems
|
|
|
39,321
|
|
|
|
15,204
|
|
|
|
115,391
|
|
|
|
42,522
|
|
Total net
sales
|
|
|
122,984
|
|
|
|
84,643
|
|
|
|
350,837
|
|
|
|
230,766
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered Steel
Pressure Pipe
|
|
|
69,467
|
|
|
|
60,595
|
|
|
|
202,956
|
|
|
|
165,631
|
|
Precast Infrastructure
and
Engineered Systems
|
|
|
28,399
|
|
|
|
11,685
|
|
|
|
83,897
|
|
|
|
34,459
|
|
Total cost of
sales
|
|
|
97,866
|
|
|
|
72,280
|
|
|
|
286,853
|
|
|
|
200,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered Steel
Pressure Pipe
|
|
|
14,196
|
|
|
|
8,844
|
|
|
|
32,490
|
|
|
|
22,613
|
|
Precast Infrastructure
and
Engineered Systems
|
|
|
10,922
|
|
|
|
3,519
|
|
|
|
31,494
|
|
|
|
8,063
|
|
Total gross
profit
|
|
|
25,118
|
|
|
|
12,363
|
|
|
|
63,984
|
|
|
|
30,676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative
expense
|
|
|
10,654
|
|
|
|
5,562
|
|
|
|
30,149
|
|
|
|
17,729
|
|
Operating
income
|
|
|
14,464
|
|
|
|
6,801
|
|
|
|
33,835
|
|
|
|
12,947
|
|
Other income
|
|
|
11
|
|
|
|
171
|
|
|
|
56
|
|
|
|
260
|
|
Interest
expense
|
|
|
(964)
|
|
|
|
(112)
|
|
|
|
(2,393)
|
|
|
|
(687)
|
|
Income before income
taxes
|
|
|
13,511
|
|
|
|
6,860
|
|
|
|
31,498
|
|
|
|
12,520
|
|
Income tax
expense
|
|
|
3,555
|
|
|
|
1,914
|
|
|
|
8,310
|
|
|
|
3,268
|
|
Net income
|
|
$
|
9,956
|
|
|
$
|
4,946
|
|
|
$
|
23,188
|
|
|
$
|
9,252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.00
|
|
|
$
|
0.50
|
|
|
$
|
2.34
|
|
|
$
|
0.94
|
|
Diluted
|
|
$
|
0.99
|
|
|
$
|
0.50
|
|
|
$
|
2.32
|
|
|
$
|
0.93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per
share
calculations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
9,927
|
|
|
|
9,871
|
|
|
|
9,909
|
|
|
|
9,849
|
|
Diluted
|
|
|
10,010
|
|
|
|
9,921
|
|
|
|
9,988
|
|
|
|
9,918
|
|
|
|
NORTHWEST PIPE
COMPANY AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
(In
thousands)
|
|
|
|
September 30,
2022
|
|
|
December 31,
2021
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
3,706
|
|
|
$
|
2,997
|
|
Trade and other
receivables, net
|
|
|
73,975
|
|
|
|
52,664
|
|
Contract
assets
|
|
|
117,260
|
|
|
|
107,170
|
|
Inventories
|
|
|
71,578
|
|
|
|
59,651
|
|
Prepaid expenses and
other
|
|
|
4,326
|
|
|
|
5,744
|
|
Total current
assets
|
|
|
270,845
|
|
|
|
228,226
|
|
Property and
equipment, net
|
|
|
124,228
|
|
|
|
121,266
|
|
Operating lease
right-of-use assets
|
|
|
94,166
|
|
|
|
98,507
|
|
Goodwill
|
|
|
55,504
|
|
|
|
53,684
|
|
Intangible assets,
net
|
|
|
36,334
|
|
|
|
39,376
|
|
Other
assets
|
|
|
5,400
|
|
|
|
6,620
|
|
Total
assets
|
|
$
|
586,477
|
|
|
$
|
547,679
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Current
debt
|
|
$
|
3,525
|
|
|
$
|
-
|
|
Accounts
payable
|
|
|
40,444
|
|
|
|
32,267
|
|
Accrued
liabilities
|
|
|
32,561
|
|
|
|
24,498
|
|
Contract
liabilities
|
|
|
16,243
|
|
|
|
2,623
|
|
Current portion of
operating lease liabilities
|
|
|
4,725
|
|
|
|
4,704
|
|
Total current
liabilities
|
|
|
97,498
|
|
|
|
64,092
|
|
Borrowings on line of
credit
|
|
|
71,817
|
|
|
|
86,761
|
|
Operating lease
liabilities
|
|
|
90,231
|
|
|
|
93,725
|
|
Deferred income
taxes
|
|
|
10,982
|
|
|
|
10,984
|
|
Other long-term
liabilities
|
|
|
7,272
|
|
|
|
8,734
|
|
Total
liabilities
|
|
|
277,800
|
|
|
|
264,296
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
308,677
|
|
|
|
283,383
|
|
Total liabilities and
stockholders' equity
|
|
$
|
586,477
|
|
|
$
|
547,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NORTHWEST PIPE
COMPANY AND SUBSIDIARIES
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
|
(Unaudited)
|
(In thousands, except
per share amounts)
|
|
|
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, as
reported
|
|
$
|
9,956
|
|
|
$
|
4,946
|
|
|
$
|
23,188
|
|
|
$
|
9,252
|
|
Adjustments for
non-recurring
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
transaction
costs
|
|
|
-
|
|
|
|
565
|
|
|
|
59
|
|
|
|
801
|
|
Amortization of
acquired
intangibles (1)
|
|
|
751
|
|
|
|
-
|
|
|
|
2,423
|
|
|
|
-
|
|
Estimated tax impact
of non-
recurring items
|
|
|
(186)
|
|
|
|
(140)
|
|
|
|
(614)
|
|
|
|
(198)
|
|
Adjusted net
income
|
|
$
|
10,521
|
|
|
$
|
5,371
|
|
|
$
|
25,056
|
|
|
$
|
9,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per
share, as
reported
|
|
$
|
0.99
|
|
|
$
|
0.50
|
|
|
$
|
2.32
|
|
|
$
|
0.93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted net
income per
share
|
|
$
|
1.05
|
|
|
$
|
0.54
|
|
|
$
|
2.51
|
|
|
$
|
0.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Amortization of
acquired intangibles represents amortization of ParkUSA intangible
assets only and is included for comparability purposes between 2022
and 2021.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/northwest-pipe-company-announces-third-quarter-2022-financial-results-301672190.html
SOURCE Northwest Pipe Company