- Fourth quarter net sales of $119.6 million increased 8.6%
year-over-year
- Annual net sales of $492.5
million, a Company record under its current operating
segments, increased 10.8% year-over-year
- Record annual net sales for the Engineered Steel Pressure
Pipe segment ("SPP") and Precast Infrastructure and Engineered
Systems segment ("Precast")
- Record annual gross profit of $95.4 million increased
22.9% year-over-year
- Record annual net income of $3.40 per diluted share
- Strong annual net cash provided by operating activities of
$55.1 million
- SPP backlog1 of $213 million; SPP backlog including
confirmed orders2 of $310 million
- Precast order book3 of $61 million
- Record safety performance; annual total recordable incident
rate of 1.25 and annual days away rate of 0.14
VANCOUVER, Wash., Feb. 26,
2025 Northwest Pipe Company (NASDAQ: NWPX) (the
"Company"), a leading manufacturer of water-related infrastructure
products, today announced its financial results for the fourth
quarter and full year ended December 31, 2024. The Company
will broadcast its fourth quarter and full year 2024 earnings
conference call on Thursday, February 27, 2025 at
7:00 a.m. PT.
Management Commentary
"We delivered a stronger-than-normal fourth quarter, with SPP
revenue reaching $82.5 million
and a solid 17.9% gross margin," said Scott
Montross, President and Chief Executive Officer of Northwest
Pipe Company. "Robust fourth quarter bidding activity pushed our
SPP backlog including confirmed orders to $310 million,
positioning us well for continued strength in 2025. Precast revenue
came in at $37.1 million, with a
20.7% gross margin, reflecting some market softness in
non-residential construction demand. However, the Precast order
bookings surged to $61 million, a significant increase from
$46 million at the same time last year, indicating momentum
heading into the new year."
Mr. Montross continued, "For the full year of 2024, the
Company posted outstanding results, achieving record financial and
operational performance. Our SPP segment generated record revenue
of $337.9 million and record
gross profit of $62.6 million,
while the Precast group delivered record revenue of $154.6 million and gross profit of
$32.8 million, despite
challenges in the non-residential construction markets. On a
consolidated basis, we achieved record gross profit of $95.4 million. In addition, we generated
$34.3 million in free cash
flow4, consistent with our net income, both translating
to $3.40 per diluted share and
demonstrating the strength and quality of our earnings. Most
importantly, we achieved a record safety performance, with a total
recordable incident rate of 1.25, underscoring our unwavering
commitment to the well-being of our employees."
Mr. Montross concluded, "We entered 2025 with a strong SPP
backlog and a robust Precast order book. While we expect a light
bidding environment in SPP during the first quarter, we anticipate
strong bidding activity in the second and third quarters, with
full-year bidding levels aligning closely with 2024. In our Precast
segment, the residential business remains strong, and we are now
seeing a surge in the non-residential order book, indicating
improved strength in 2025. On a consolidated basis, we expect the
first quarter of 2025 to resemble the first quarter of 2024, as
weather events in various locations across the country continue to
have an impact."
Fourth Quarter 2024 Financial Results
Consolidated
- Net sales increased 8.6% to $119.6
million from $110.2 million in
the fourth quarter of 2023.
- Gross profit increased 16.3% to $22.4
million, or 18.8% of net sales, from $19.3 million, or 17.5% of net sales, in the
fourth quarter of 2023.
- Net income was $10.1 million, or
$1.00 per diluted share, compared to
$5.4 million, or $0.54 per diluted share, in the fourth quarter of
2023. Net income included a favorable impact of $2.3 million, or $0.23 per diluted share, related to the
realization of previously uncertain income tax positions, resulting
in adjusted net income of $7.8
million, or $0.77 per diluted
share.
Engineered Steel Pressure Pipe Segment (SPP)
- SPP net sales increased 9.9% to $82.5
million from $75.1 million in
the fourth quarter of 2023 driven by an 11% increase in tons
produced resulting primarily from an improved bidding environment
coupled with changes in project timing.
- SPP gross profit increased 32.2% to $14.8 million, or 17.9% of SPP net sales, from
$11.2 million, or 14.9% of SPP net
sales, in the fourth quarter of 2023 primarily due to increased
volume and changes in product mix.
- SPP backlog was $213 million as
of December 31, 2024 compared to
$231 million as of September 30, 2024 and $273 million as of December 31, 2023. Backlog including confirmed
orders was $310 million as of
December 31, 2024 compared to
$282 million as of September 30, 2024 and $319 million as of December 31, 2023.
Precast Infrastructure and Engineered Systems Segment
(Precast)
- Precast net sales increased 5.9% to $37.1 million from $35.1
million in the fourth quarter of 2023 driven by a 23%
increase in volume shipped, partially offset by a 14% decrease in
selling prices primarily due to changes in product mix.
- Precast gross profit decreased 5.4% to $7.7 million, or 20.7% of Precast net sales, from
$8.1 million, or 23.2% of Precast net
sales, in the fourth quarter of 2023 primarily due to changes in
product mix.
- Precast order book was $61
million as of December 31,
2024 compared to $57 million
as of September 30, 2024 and
$46 million as of December 31, 2023.
Full Year 2024 Financial Results
Consolidated
- Net sales increased 10.8% to $492.5
million in 2024, a Company record under its current
operating segments, from $444.4
million in 2023.
- Gross profit increased 22.9% to $95.4
million, or 19.4% of net sales, in 2024 from $77.6 million, or 17.5% of net sales, in
2023.
- Net income was $34.2 million, or
$3.40 per diluted share, in 2024
compared to $21.1 million, or
$2.09 per diluted share, in 2023. Net
income included a favorable impact of $2.3
million, or $0.23 per diluted
share, related to the realization of previously uncertain income
tax positions, resulting in adjusted net income of $31.9 million, or $3.17 per diluted share.
Engineered Steel Pressure Pipe Segment (SPP)
- SPP net sales increased 14.0% to a record $337.9 million in 2024 from $296.4 million in 2023 driven by a 33% increase
in tons produced resulting from an improved bidding environment and
changes in project timing, which was partially offset by a 14%
decrease in selling price per ton due to a combination of lower raw
materials costs and product mix.
- SPP gross profit increased 47.6% to a record $62.6 million, or 18.5% of SPP net sales, in 2024
from $42.4 million, or 14.3% of SPP
net sales, in 2023 primarily due to increased volume and changes in
product mix.
Precast Infrastructure and Engineered Systems Segment
(Precast)
- Precast net sales increased 4.5% to a record $154.6 million in 2024 from $148.0 million in 2023 driven by a 28% increase
in volume shipped, partially offset by a 15% decrease in selling
prices primarily due to changes in product mix.
- Precast gross profit decreased 6.9% to $32.8 million, or 21.2% of Precast net sales, in
2024 from $35.2 million, or 23.8% of
Precast net sales, in 2023 primarily due to changes in product
mix.
Balance Sheet and Cash Flow Details
- As of December 31, 2024, the
Company had $24.7 million of
outstanding revolving loan borrowings and additional borrowing
capacity of approximately $99 million
under the revolving credit facility.
- Net cash provided by operating activities was $36.1 million in the fourth quarter of 2024
compared to $9.0 million in the
fourth quarter of 2023 primarily due to a $24.8 million increase in cash provided by
changes in working capital and a $2.2
million increase in cash provided by net income adjusted for
non-cash items. Net cash provided by operating activities was
$55.1 million in 2024 compared to
$53.5 million in 2023 primarily due
to a $12.9 million increase in cash
provided by net income, adjusted for non-cash items, partially
offset by a $11.3 million decrease in
cash provided by changes in working capital.
- Capital expenditures were $4.2
million in the fourth quarter of 2024 compared to
$5.0 million in the fourth quarter of
2023. Capital expenditures were $20.8
million in 2024 compared to $18.3
million in 2023.
|
____________________
|
|
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.
|
|
|
4 Northwest Pipe Company defines
"free cash flow" as cash flows from operating activities less
purchases of property and equipment. For purposes of the full year
2024, $55.1 million of net cash provided by operating
activities, less $20.8 million in purchases of property and
equipment, resulted in $34.3 million of free cash
flow.
|
Conference Call Details
A conference call and simultaneous webcast to discuss the
Company's fourth quarter and full year 2024 financial
results will be held on Thursday, February 27, 2025, 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, March 13, 2025, by
dialing 1‑844‑512‑2921 in the U.S. or 1‑412‑317‑6671
internationally and entering the replay access code: 13750954.
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 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 (in particular Canada and
Mexico) 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 and commercial construction markets, 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 that produce accretive financial results,
effects of security breaches, computer viruses, and cybersecurity
incidents, timing and amount of share repurchases, impacts of U.S.
tax reform legislation on the Company's results of operations, and
the impact on our customers and related demand for our products,
adequacy of the Company's insurance coverage, supply chain
challenges, labor shortages, impact of geopolitical trends,
changes, and events, including the ongoing military conflicts in
Ukraine and the Middle East or tensions in the Taiwan Strait
and South China Sea and the regional and global ramifications of
these events, 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, 2023 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,
free cash flow, and adjusted net income. 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. These 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
|
|
|
Year
Ended
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered Steel
Pressure Pipe
|
|
$
|
82,491
|
|
|
$
|
75,087
|
|
|
$
|
337,945
|
|
|
$
|
296,381
|
|
|
Precast Infrastructure
and Engineered Systems
|
|
|
37,136
|
|
|
|
35,077
|
|
|
|
154,603
|
|
|
|
147,974
|
|
|
Total net
sales
|
|
|
119,627
|
|
|
|
110,164
|
|
|
|
492,548
|
|
|
|
444,355
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered Steel
Pressure Pipe
|
|
|
67,738
|
|
|
|
63,924
|
|
|
|
275,341
|
|
|
|
253,954
|
|
|
Precast Infrastructure
and Engineered Systems
|
|
|
29,451
|
|
|
|
26,950
|
|
|
|
121,802
|
|
|
|
112,759
|
|
|
Total cost of
sales
|
|
|
97,189
|
|
|
|
90,874
|
|
|
|
397,143
|
|
|
|
366,713
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered Steel
Pressure Pipe
|
|
|
14,753
|
|
|
|
11,163
|
|
|
|
62,604
|
|
|
|
42,427
|
|
|
Precast Infrastructure
and Engineered Systems
|
|
|
7,685
|
|
|
|
8,127
|
|
|
|
32,801
|
|
|
|
35,215
|
|
|
Total gross
profit
|
|
|
22,438
|
|
|
|
19,290
|
|
|
|
95,405
|
|
|
|
77,642
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative expense
|
|
|
11,941
|
|
|
|
10,665
|
|
|
|
47,161
|
|
|
|
43,784
|
|
|
Operating
income
|
|
|
10,497
|
|
|
|
8,625
|
|
|
|
48,244
|
|
|
|
33,858
|
|
|
Other income
(loss)
|
|
|
74
|
|
|
|
500
|
|
|
|
(213)
|
|
|
|
276
|
|
|
Interest
expense
|
|
|
(911)
|
|
|
|
(1,133)
|
|
|
|
(5,660)
|
|
|
|
(4,855)
|
|
|
Income before income
taxes
|
|
|
9,660
|
|
|
|
7,992
|
|
|
|
42,371
|
|
|
|
29,279
|
|
|
Income tax expense
(benefit)
|
|
|
(436)
|
|
|
|
2,548
|
|
|
|
8,165
|
|
|
|
8,207
|
|
|
Net income
|
|
$
|
10,096
|
|
|
$
|
5,444
|
|
|
$
|
34,206
|
|
|
$
|
21,072
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.02
|
|
|
$
|
0.54
|
|
|
$
|
3.45
|
|
|
$
|
2.11
|
|
|
Diluted
|
|
$
|
1.00
|
|
|
$
|
0.54
|
|
|
$
|
3.40
|
|
|
$
|
2.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per
share calculations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
9,919
|
|
|
|
10,010
|
|
|
|
9,916
|
|
|
|
9,991
|
|
|
Diluted
|
|
|
10,108
|
|
|
|
10,105
|
|
|
|
10,066
|
|
|
|
10,081
|
|
|
NORTHWEST PIPE
COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
|
|
|
|
|
|
|
December
31,
|
|
|
|
2024
|
|
|
2023
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
5,007
|
|
|
$
|
4,068
|
|
|
Trade and other
receivables, net
|
|
|
66,946
|
|
|
|
47,645
|
|
|
Contract
assets
|
|
|
103,422
|
|
|
|
120,516
|
|
|
Inventories
|
|
|
79,770
|
|
|
|
91,229
|
|
|
Prepaid expenses and
other
|
|
|
7,343
|
|
|
|
9,026
|
|
|
Total current
assets
|
|
|
262,488
|
|
|
|
272,484
|
|
|
Property and
equipment, net
|
|
|
150,456
|
|
|
|
143,955
|
|
|
Operating lease
right-of-use assets
|
|
|
87,747
|
|
|
|
88,155
|
|
|
Goodwill
|
|
|
55,504
|
|
|
|
55,504
|
|
|
Intangible assets,
net
|
|
|
27,041
|
|
|
|
31,074
|
|
|
Other
assets
|
|
|
6,417
|
|
|
|
6,709
|
|
|
Total
assets
|
|
$
|
589,653
|
|
|
$
|
597,881
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
Current
debt
|
|
$
|
-
|
|
|
$
|
10,756
|
|
|
Current portion of
long-term debt
|
|
|
2,994
|
|
|
|
-
|
|
|
Accounts
payable
|
|
|
27,783
|
|
|
|
31,142
|
|
|
Accrued
liabilities
|
|
|
28,172
|
|
|
|
27,913
|
|
|
Contract
liabilities
|
|
|
11,197
|
|
|
|
21,450
|
|
|
Current portion of
operating lease liabilities
|
|
|
4,987
|
|
|
|
4,933
|
|
|
Total current
liabilities
|
|
|
75,133
|
|
|
|
96,194
|
|
|
Borrowings on line of
credit
|
|
|
24,677
|
|
|
|
54,485
|
|
|
Long-term
debt
|
|
|
11,476
|
|
|
|
-
|
|
|
Operating lease
liabilities
|
|
|
85,744
|
|
|
|
85,283
|
|
|
Deferred income
taxes
|
|
|
8,297
|
|
|
|
10,942
|
|
|
Other long-term
liabilities
|
|
|
10,323
|
|
|
|
10,617
|
|
|
Total
liabilities
|
|
|
215,650
|
|
|
|
257,521
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
374,003
|
|
|
|
340,360
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
589,653
|
|
|
$
|
597,881
|
|
|
NORTHWEST PIPE COMPANY AND
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited)
(In
thousands)
|
|
|
|
Year Ended December
31,
|
|
|
|
2024
|
|
|
2023
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
34,206
|
|
|
$
|
21,072
|
|
|
Depreciation and
finance lease amortization
|
|
|
15,038
|
|
|
|
11,616
|
|
|
Amortization of
intangible assets
|
|
|
4,033
|
|
|
|
4,190
|
|
|
Deferred income
taxes
|
|
|
(4,684)
|
|
|
|
(172)
|
|
|
Gain on insurance
proceeds
|
|
|
-
|
|
|
|
(466)
|
|
|
Share-based
compensation expense
|
|
|
5,061
|
|
|
|
3,672
|
|
|
Other, net
|
|
|
728
|
|
|
|
1,547
|
|
|
Changes in working
capital
|
|
|
669
|
|
|
|
11,996
|
|
|
Net cash provided by
operating activities
|
|
|
55,051
|
|
|
|
53,455
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(20,799)
|
|
|
|
(18,291)
|
|
|
Payment of working
capital adjustment in acquisition of business
|
|
|
-
|
|
|
|
(2,731)
|
|
|
Proceeds from
insurance
|
|
|
-
|
|
|
|
431
|
|
|
Other investing
activities
|
|
|
63
|
|
|
|
219
|
|
|
Net cash used in
investing activities
|
|
|
(20,736)
|
|
|
|
(20,372)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
Borrowings on line of
credit
|
|
|
171,329
|
|
|
|
155,398
|
|
|
Repayments on line of
credit
|
|
|
(201,137)
|
|
|
|
(184,609)
|
|
|
Borrowings on other
debt
|
|
|
4,244
|
|
|
|
-
|
|
|
Payments on other
debt
|
|
|
(500)
|
|
|
|
-
|
|
|
Payments on finance
lease liabilities
|
|
|
(1,419)
|
|
|
|
(826)
|
|
|
Tax withholdings
related to net share settlements of equity awards
|
|
|
(1,449)
|
|
|
|
(1,652)
|
|
|
Repurchase of common
stock
|
|
|
(4,429)
|
|
|
|
(707)
|
|
|
Other financing
activities
|
|
|
(15)
|
|
|
|
(300)
|
|
|
Net cash used in
financing activities
|
|
|
(33,376)
|
|
|
|
(32,696)
|
|
|
|
|
|
|
|
|
|
|
|
Change in cash and
cash equivalents
|
|
|
939
|
|
|
|
387
|
|
|
Cash and cash
equivalents, beginning of period
|
|
|
4,068
|
|
|
|
3,681
|
|
|
Cash and cash
equivalents, end of period
|
|
$
|
5,007
|
|
|
$
|
4,068
|
|
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SOURCE Northwest Pipe Company
