- Net sales of $99.1 million
decreased 9.4% year-over-year; Precast Infrastructure and
Engineered Systems segment ("Precast") net sales increased 2.7%
year-over-year
- Gross profit of $16.6 million
increased 12.1% year-over-year
- Net income of $0.23 per
diluted share
- Backlog1 of $297
million; backlog including confirmed
orders2 of $370
million for the Engineered Steel Pressure Pipe segment
("SPP")
- Precast order book3 of $58 million
VANCOUVER, Wash., May 3, 2023
/PRNewswire/ -- Northwest Pipe Company (NASDAQ: NWPX) (the
"Company"), a leading manufacturer of water-related infrastructure
including engineered steel water pipeline systems; stormwater and
wastewater technology products; high-quality precast and reinforced
concrete products; pump lift stations; steel casing pipe,
bar-wrapped concrete cylinder pipe, and one of the largest
offerings of pipeline system joints, fittings, and specialized
components, today announced its financial results for the first
quarter ended March 31, 2023. The Company will broadcast its
first quarter 2023 earnings conference call on Thursday,
May 4, 2023 at 7:00 a.m. PT.
Management Commentary
"As we expected, the first quarter was challenging due to severe
weather events and customer driven production delays. Our
Engineered Steel Pressure Pipe segment ended the first quarter with
a near record $370 million in backlog including confirmed
orders. Beginning with the second quarter, we expect SPP revenue to
be on an upward trajectory back towards 2022 levels, with improved
margins," said Scott Montross,
President and Chief Executive Officer of Northwest Pipe Company.
"The Precast segment ended the first quarter stronger than
anticipated with an order book of $58 million, down 12% from
the same quarter in 2022, given the stresses on the residential
housing market primarily affecting our Geneva locations.
Non-residential business at our ParkUSA locations also continues to
show strength. We expect our second quarter Precast revenue to
improve over the first quarter of 2023 and for the Precast
segment's full year performance to be down only modestly from a
record year in 2022 with similar margin levels."
First Quarter 2023 Financial Results
Consolidated
- Net sales decreased 9.4% to $99.1
million from $109.3 million in
the first quarter of 2022.
- Gross profit increased 12.1% to $16.6
million, or 16.7% of net sales, from $14.8 million, or 13.5% of net sales, in the
first quarter of 2022.
- Net income was $2.4 million, or
$0.23 per diluted share, compared to
$3.6 million, or $0.36 per diluted share, in the first quarter of
2022.
Engineered Steel Pressure Pipe Segment (SPP)
- SPP net sales decreased 14.9% to $63.5
million from $74.7 million in
the first quarter of 2022 driven by a 4% decrease in tons produced
resulting primarily from changes in project timing and an 11%
decrease in selling price per ton due to decreased raw materials
costs.
- SPP gross profit increased 8.2% to $7.8
million, or 12.2% of SPP net sales, from $7.2 million, or 9.6% of SPP net sales, in the
first quarter of 2022. Gross profit in the first quarter of 2022
was negatively impacted by $2.0
million for a product liability settlement reserve.
- SPP backlog was $297 million as
of March 31, 2023 compared to
$274 million as of December 31, 2022 and $200
million as of March 31, 2022.
Backlog including confirmed orders was $370
million as of March 31, 2023
compared to $372 million as of
December 31, 2022 and $341 million as of March
31, 2022.
Precast Infrastructure and Engineered Systems Segment
(Precast)
- Precast net sales increased 2.7% to $35.6 million from $34.6
million in the first quarter of 2022 primarily due to an
increase in selling prices resulting from high demand for the
Company's concrete products in addition to increased materials
costs.
- Precast gross profit increased 15.8% to $8.8 million, or 24.7% of Precast net sales, from
$7.6 million, or 21.9% of Precast net
sales, in the first quarter of 2022 primarily due to improved
pricing.
- Precast order book was $58
million as of March 31, 2023
compared to $64 million as of
December 31, 2022 and $66 million as of March
31, 2022.
Balance Sheet and Cash Flow
- As of March 31, 2023, the Company
had $62.6 million of outstanding
revolving loan borrowings and additional borrowing capacity of
approximately $61 million under the
revolving credit facility. 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.
- Net cash provided by operating activities was $26.3 million, an increase of $24.7 million from $1.6
million in the first quarter of 2022 due to favorable
changes in working capital.
- Capital expenditures of $4.4
million were relatively consistent with the first quarter of
2022.
Conference Call Details
A conference call and simultaneous webcast to discuss the
Company's first quarter 2023 financial results will be held on
Thursday, May 4, 2023, at 7:00 a.m.
Pacific Time. 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 Thursday, May 18, 2023, by
dialing 1-844-512-2921 in the U.S. or 1-412-317-6671
internationally and entering the replay access code: 10177348.
About Northwest Pipe Company
Founded in 1966, Northwest Pipe Company is a leading
manufacturer of water-related infrastructure products. In addition
to being the largest manufacturer of engineered steel water
pipeline systems in North America,
the Company manufactures stormwater and wastewater technology
products; high-quality precast and reinforced concrete products;
pump lift stations; 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, Permalok®, and
Northwest Pipe Company 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, economic uncertainty
and associated trends in macroeconomic conditions, including
potential recession, inflation, and the state of the housing
market, 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 Park
Environmental Equipment, LLC 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, material
weaknesses in the Company's internal control over financial
reporting and its ability to remediate such weaknesses, impacts of
pandemics, epidemics, or other public health emergencies, and other
risks discussed in the Company's Annual Report on Form 10–K
for the year ended December 31, 2022 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.
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:
Aaron
Wilkins
Chief Financial Officer
Northwest Pipe Company
investors@nwpipe.com
Or Addo Investor Relations
nwpx@addo.com
________________
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
March 31,
|
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
Net sales:
|
|
|
|
|
|
|
|
|
Engineered Steel
Pressure Pipe
|
|
$
|
63,546
|
|
|
$
|
74,715
|
|
Precast Infrastructure
and Engineered Systems
|
|
|
35,551
|
|
|
|
34,616
|
|
Total net
sales
|
|
|
99,097
|
|
|
|
109,331
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
Engineered Steel
Pressure Pipe
|
|
|
55,764
|
|
|
|
67,526
|
|
Precast Infrastructure
and Engineered Systems
|
|
|
26,756
|
|
|
|
27,019
|
|
Total cost of
sales
|
|
|
82,520
|
|
|
|
94,545
|
|
|
|
|
|
|
|
|
|
|
Gross
profit:
|
|
|
|
|
|
|
|
|
Engineered Steel
Pressure Pipe
|
|
|
7,782
|
|
|
|
7,189
|
|
Precast Infrastructure
and Engineered Systems
|
|
|
8,795
|
|
|
|
7,597
|
|
Total gross
profit
|
|
|
16,577
|
|
|
|
14,786
|
|
Selling, general, and
administrative expense
|
|
|
11,866
|
|
|
|
9,368
|
|
Operating
income
|
|
|
4,711
|
|
|
|
5,418
|
|
Other income
(expense)
|
|
|
(29)
|
|
|
|
44
|
|
Interest
expense
|
|
|
(1,369)
|
|
|
|
(560)
|
|
Income before income
taxes
|
|
|
3,313
|
|
|
|
4,902
|
|
Income tax
expense
|
|
|
951
|
|
|
|
1,343
|
|
Net income
|
|
$
|
2,362
|
|
|
$
|
3,559
|
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.24
|
|
|
$
|
0.36
|
|
Diluted
|
|
$
|
0.23
|
|
|
$
|
0.36
|
|
|
|
|
|
|
|
|
|
|
Shares used in per
share calculations:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
9,940
|
|
|
|
9,881
|
|
Diluted
|
|
|
10,087
|
|
|
|
9,973
|
|
NORTHWEST PIPE
COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
|
|
|
|
|
|
|
|
|
|
March 31, 2023
|
|
|
December 31, 2022
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
3,934
|
|
|
$
|
3,681
|
|
Trade and other
receivables, net
|
|
|
60,589
|
|
|
|
71,563
|
|
Contract
assets
|
|
|
116,341
|
|
|
|
121,778
|
|
Inventories
|
|
|
70,970
|
|
|
|
71,029
|
|
Prepaid expenses and
other
|
|
|
9,007
|
|
|
|
10,689
|
|
Total current
assets
|
|
|
260,841
|
|
|
|
278,740
|
|
Property and
equipment, net
|
|
|
134,419
|
|
|
|
133,166
|
|
Operating lease
right-of-use assets
|
|
|
91,641
|
|
|
|
93,124
|
|
Goodwill
|
|
|
55,504
|
|
|
|
55,504
|
|
Intangible assets,
net
|
|
|
34,203
|
|
|
|
35,264
|
|
Other
assets
|
|
|
5,771
|
|
|
|
5,542
|
|
Total
assets
|
|
$
|
582,379
|
|
|
$
|
601,340
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Current
debt
|
|
$
|
10,756
|
|
|
$
|
10,756
|
|
Accounts
payable
|
|
|
24,885
|
|
|
|
26,968
|
|
Accrued
liabilities
|
|
|
24,296
|
|
|
|
30,957
|
|
Contract
liabilities
|
|
|
25,794
|
|
|
|
17,456
|
|
Current portion of
operating lease liabilities
|
|
|
4,627
|
|
|
|
4,702
|
|
Total current
liabilities
|
|
|
90,358
|
|
|
|
90,839
|
|
Borrowings on line of
credit
|
|
|
62,617
|
|
|
|
83,696
|
|
Operating lease
liabilities
|
|
|
88,326
|
|
|
|
89,472
|
|
Deferred income
taxes
|
|
|
12,045
|
|
|
|
11,402
|
|
Other long-term
liabilities
|
|
|
7,956
|
|
|
|
7,657
|
|
Total
liabilities
|
|
|
261,302
|
|
|
|
283,066
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
321,077
|
|
|
|
318,274
|
|
Total liabilities and
stockholders' equity
|
|
$
|
582,379
|
|
|
$
|
601,340
|
|
NORTHWEST PIPE
COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
2,362
|
|
|
$
|
3,559
|
|
Depreciation and
finance lease amortization
|
|
|
2,799
|
|
|
|
2,935
|
|
Amortization of
intangible assets
|
|
|
1,061
|
|
|
|
1,194
|
|
Deferred income
taxes
|
|
|
635
|
|
|
|
383
|
|
Share-based
compensation expense
|
|
|
990
|
|
|
|
635
|
|
Other, net
|
|
|
473
|
|
|
|
117
|
|
Changes in operating
assets and liabilities, net
|
|
|
17,962
|
|
|
|
(7,175)
|
|
Net cash provided by
operating activities
|
|
|
26,282
|
|
|
|
1,648
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(4,382)
|
|
|
|
(4,440)
|
|
Other investing
activities
|
|
|
-
|
|
|
|
30
|
|
Net cash used in
investing activities
|
|
|
(4,382)
|
|
|
|
(4,410)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Borrowings on line of
credit
|
|
|
34,602
|
|
|
|
38,023
|
|
Repayments on line of
credit
|
|
|
(55,682)
|
|
|
|
(34,532)
|
|
Payments on finance
lease obligations
|
|
|
(145)
|
|
|
|
(125)
|
|
Tax withholdings
related to net share settlements of equity awards
|
|
|
(422)
|
|
|
|
(294)
|
|
Other financing
activities
|
|
|
-
|
|
|
|
(6)
|
|
Net cash provided by
(used in) financing activities
|
|
|
(21,647)
|
|
|
|
3,066
|
|
Change in cash and cash
equivalents
|
|
|
253
|
|
|
|
304
|
|
Cash and cash
equivalents, beginning of period
|
|
|
3,681
|
|
|
|
2,997
|
|
Cash and cash
equivalents, end of period
|
|
$
|
3,934
|
|
|
$
|
3,301
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/northwest-pipe-company-announces-first-quarter-2023-financial-results-301815159.html
SOURCE Northwest Pipe Company