Northwest Pipe Company Announces Third Quarter 2024 Financial Results
Northwest Pipe Company (NWPX) reported strong Q3 2024 results with net sales increasing 9.7% to $130.2 million. The company achieved record gross profit of $27.0 million, up 40% year-over-year, with a 20.8% margin. Net income reached $1.02 per diluted share. The Engineered Steel Pressure Pipe segment saw a 6.7% increase in sales to $85.9 million, while the Precast segment achieved record sales of $44.3 million, up 15.8%. The company maintains a strong backlog of $231 million for SPP and a $57 million order book for Precast, generating $22.7 million in operating cash flow during the quarter.
Northwest Pipe Company (NWPX) ha riportato risultati solidi per il terzo trimestre del 2024, con vendite nette che sono aumentate del 9,7% a 130,2 milioni di dollari. L'azienda ha raggiunto un profitto lordo record di 27,0 milioni di dollari, in aumento del 40% rispetto all'anno precedente, con un margine del 20,8%. L'utile netto ha raggiunto 1,02 dollari per azione diluita. Il segmento delle tubazioni in acciaio ingegnerizzato ha registrato un aumento delle vendite del 6,7% a 85,9 milioni di dollari, mentre il segmento dei prefabbricati ha raggiunto vendite record di 44,3 milioni di dollari, in aumento del 15,8%. L'azienda mantiene un solido portafoglio ordini di 231 milioni di dollari per SPP e un libro ordini di 57 milioni di dollari per prefabbricati, generando 22,7 milioni di dollari di flusso di cassa operativo durante il trimestre.
Northwest Pipe Company (NWPX) reportó resultados sólidos para el tercer trimestre de 2024, con ventas netas que aumentaron un 9.7% a 130.2 millones de dólares. La compañía logró un beneficio bruto récord de 27.0 millones de dólares, un aumento del 40% en comparación con el año anterior, con un margen del 20.8%. El ingreso neto alcanzó 1.02 dólares por acción diluida. El segmento de tuberías de acero de ingeniería vio un aumento del 6.7% en ventas, alcanzando 85.9 millones de dólares, mientras que el segmento de prefabricados logró ventas récord de 44.3 millones de dólares, un incremento del 15.8%. La empresa mantiene un sólido backlog de 231 millones de dólares para SPP y un libro de pedidos de 57 millones de dólares para prefabricados, generando 22.7 millones de dólares en flujo de efectivo operativo durante el trimestre.
Northwest Pipe Company (NWPX)은 2024년 3분기 실적이 뛰어나다고 보고하며, 순매출이 9.7% 증가한 1억 3020만 달러에 이르렀습니다. 회사는 기록적인 총 이익 2천700만 달러를 달성하며, 이는 전년 대비 40% 증가한 수치이며, 마진은 20.8%였습니다. 희석 주당 순이익은 1.02달러에 도달했습니다. 엔지니어링 강관 부문은 매출이 6.7% 증가하여 8천590만 달러에 달했으며, 프리캐스트 부문은 4천430만 달러의 기록적인 매출을 달성하며 15.8% 증가했습니다. 회사는 SPP를 위한 2억 3100만 달러의 강력한 백로그와 프리캐스트를 위한 5700만 달러의 주문서를 유지하고 있으며, 분기 동안 2천270만 달러의 운영 현금 흐름을 창출했습니다.
Northwest Pipe Company (NWPX) a annoncé de solides résultats pour le troisième trimestre 2024, avec des ventes nettes en hausse de 9,7% à 130,2 millions de dollars. L'entreprise a atteint un bénéfice brut record de 27,0 millions de dollars, en hausse de 40% par rapport à l'année précédente, avec une marge de 20,8%. Le bénéfice net a atteint 1,02 dollar par action diluée. Le segment des tuyaux en acier techniques a enregistré une augmentation des ventes de 6,7% à 85,9 millions de dollars, tandis que le segment des préfabriqués a réalisé des ventes record de 44,3 millions de dollars, en hausse de 15,8%. L'entreprise maintient un solide carnet de commandes de 231 millions de dollars pour SPP et un carnet de commandes de 57 millions de dollars pour préfabriqués, générant 22,7 millions de dollars de flux de trésorerie opérationnel durant le trimestre.
Northwest Pipe Company (NWPX) berichtete von starken Ergebnissen im 3. Quartal 2024, wobei die Nettoumsätze um 9,7% auf 130,2 Millionen Dollar stiegen. Das Unternehmen erreichte einen Rekord-Bruttogewinn von 27,0 Millionen Dollar, was einem Anstieg von 40% gegenüber dem Vorjahr entspricht, mit einer Marge von 20,8%. Der Nettogewinn betrug 1,02 Dollar pro verwässerter Aktie. Der Segment der ingenieurgemäßen Stahlrohre verzeichnete einen Anstieg der Verkäufe um 6,7% auf 85,9 Millionen Dollar, während das Segment der Fertigteile Rekordverkäufe von 44,3 Millionen Dollar erzielte, was einem Anstieg von 15,8% entspricht. Das Unternehmen hat einen soliden Auftragsbestand von 231 Millionen Dollar für SPP und ein Auftragsbuch von 57 Millionen Dollar für Fertigteile, wobei im Quartal 22,7 Millionen Dollar an operativem Cashflow generiert wurden.
- Net sales increased 9.7% YoY to $130.2 million
- Record gross profit of $27.0 million, up 40% YoY
- Net income of $1.02 per diluted share, up from $0.58 YoY
- SPP segment gross profit margin improved to 19.4%
- Precast segment achieved record quarterly revenue of $44.3 million
- Strong operating cash flow of $22.7 million
- SPP backlog including confirmed orders decreased to $282 million from $348 million in Q2 2024
- Precast order book declined to $57 million from $62 million in Q2 2024
- Company has $60.7 million in outstanding revolving loan borrowings
Insights
Northwest Pipe delivered an impressive Q3 2024 performance with several notable achievements. Net sales increased
The SPP segment showed strength with a
Strong operational cash flow of
- Net sales of
increased$130.2 million 9.7% year-over-year - Record net sales of
for the Precast Infrastructure and Engineered Systems segment ("Precast")$44.3 million - Record gross profit of
increased$27.0 million 40.0% year-over-year; gross profit margin of20.8% - Net income of
per diluted share$1.02 - Generated strong net cash provided by operating activities of
$22.7 million - Backlog1 of
for the Engineered Steel Pressure Pipe segment ("SPP"); backlog including confirmed orders2 of$231 million $282 million - Order book3 of
for Precast$57 million
Management Commentary
"Our SPP revenues remained near record levels, with gross margins that improved 40 basis points to
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 from$130.2 million in the third quarter of 2023.$118.7 million - Gross profit increased
40.0% to a record of , or$27.0 million 20.8% of net sales, from , or$19.3 million 16.3% of net sales, in the third quarter of 2023. - Net income was
, or$10.3 million per diluted share, compared to$1.02 , or$5.8 million per diluted share, in the third quarter of 2023.$0.58
Engineered Steel Pressure Pipe Segment (SPP)
- SPP net sales increased
6.7% to from$85.9 million in the third quarter of 2023 driven by an$80.5 million 18% increase in tons produced resulting from an improved bidding environment coupled with changes in project timing, partially offset by a9% decrease in selling price per ton due to lower raw materials costs. - SPP gross profit increased
52.4% to , or$16.6 million 19.4% of SPP net sales, from , or$10.9 million 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
as of September 30, 2024 compared to$231 million as of June 30, 2024 and$282 million as of September 30, 2023. Backlog including confirmed orders was$253 million as of September 30, 2024 compared to$282 million as of June 30, 2024 and$348 million as of September 30, 2023.$335 million
Precast Infrastructure and Engineered Systems Segment (Precast)
- Precast net sales increased
15.8% to a quarterly record of from$44.3 million in the third quarter of 2023 driven by a$38.2 million 35% increase in volume shipped, partially offset by a14% decrease in selling prices due to changes in product mix. - Precast gross profit increased
24.0% to , or$10.4 million 23.5% of Precast net sales, from , or$8.4 million 21.9% of Precast net sales, in the third quarter of 2023 primarily due to increased shipment volume. - Precast order book was
as of September 30, 2024 compared to$57 million as of June 30, 2024 and$62 million as of September 30, 2023.$52 million
Balance Sheet and Cash Flow
- As of September 30, 2024, the Company had
of outstanding revolving loan borrowings and additional borrowing capacity of approximately$60.7 million under the revolving credit facility.$63 million - Net cash provided by operating activities was
in the third quarter of 2024 compared to$22.7 million in the third quarter of 2023 primarily due to a$16.9 million increase in cash provided by net income adjusted for non-cash items, partially offset by a$6.1 million decrease in cash provided by changes in working capital.$0.3 million - Capital expenditures were
in the third quarter of 2024 compared to$6.0 million in the third quarter of 2023.$4.8 million
____________________ |
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 Thursday, October 31, 2024, 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, November 14, 2024, by dialing 1‑844‑512‑2921 in the
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
Forward-Looking Statements
Statements in this press release by Scott Montross contain "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 modifications or 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 future 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, timing and amount of share repurchases, impacts of
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
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, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
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 | ||||||||
Shares used in per share calculations: | ||||||||||||||||
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) | ||||||||
September 30, 2024 | December 31, 2023 | |||||||
Assets | ||||||||
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 | ||||||
Goodwill | 55,504 | 55,504 | ||||||
Intangible assets, net | 28,050 | 31,074 | ||||||
Other assets | 6,493 | 6,709 | ||||||
Total assets | $ | 617,190 | $ | 597,881 | ||||
Liabilities and Stockholders' Equity | ||||||||
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) | ||||||||
Nine Months Ended September 30, | ||||||||
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 |
View original content to download multimedia:https://www.prnewswire.com/news-releases/northwest-pipe-company-announces-third-quarter-2024-financial-results-302291990.html
SOURCE Northwest Pipe Company
FAQ
What was Northwest Pipe Company's (NWPX) revenue growth in Q3 2024?
What was NWPX's earnings per share in Q3 2024?
What is Northwest Pipe Company's (NWPX) current SPP backlog?