NASDAQ$NWPX

Northwest Pipe Company · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported a net sales increase driven by the acquisition of Geneva Pipe Company, with gross profit also increasing due to improved product pricing and Geneva's margin contribution. Net income decreased, but adjusted net income showed a positive result after excluding acquisition-related costs and other non-recurring items.

Northwest Pipe Company announced first quarter 2020 financial results with net sales increasing by 10.0% to $68.9 million compared to the first quarter of 2019. Gross profit increased by 45.8% to $9.6 million. Net income was $0.6 million, or $0.06 per diluted share, while adjusted net income was $3.2 million, or $0.33 per diluted share.

  • U.S. plants continued to operate amidst the COVID-19 pandemic.
  • Gross profit increased 45.8% year-over-year.
  • Net income was $0.06 per diluted share; adjusted net income was $0.33 per diluted share.
  • Backlog was strong at $170 million, and $224 million including confirmed orders.

Headline financials

Total Revenue

$68.9M

Previous: $62.6M+10.0%
EPS (adj)

$0.33

Previous: $0.22+50.0%
Capital Expenditures

-$2.94M

Previous: -$1.62M-81.0%
Free Cash Flow

-$2.37M

Previous: $543K-536.8%
Net Income

$564K

Previous: $2.17M-73.9%
Operating Income

$1.63M

Previous: $2.32M-29.7%
Gross Profit

$9.58M

Previous: $6.57M+45.8%
Cash & Equivalents

$9.66M

Previous: $3.84M+151.3%
Total Assets

$349M

Previous: $267M+31.1%
Stock-Based Comp

$460K

Previous: $22K+1990.9%

Revenue & EPS history

Northwest Pipe · Revenue · Quarterly

$68.9M

Q1 2020+10%vs Q1 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Northwest Pipe · $68.9M total across 1 segment · Q1 2020

  • Water Transmission Systems
    $68.9M+10.1%

Forward guidance

The COVID-19 pandemic has had a major impact on society and the economy. The company continues to operate all of its plants with the exception of the San Luis Río Colorado facility in Mexico which the Mexican government required them to temporarily close. Before purchase accounting associated with the acquisition of Geneva, first quarter revenue and margins were in-line with projections. Steel pressure pipe backlog remains very elevated. The order book for the concrete pipe and precast business is very strong as they head into the traditionally busy time of the year.

Tailwinds

  • Plants deemed essential and continue to operate amidst COVID-19.
  • More than enough capacity at remaining plants to absorb current and future orders.
  • First quarter revenue and margins were in-line with projections.
  • Steel pressure pipe backlog remains very elevated by historic standards.
  • Order book for the concrete pipe and precast business is very strong.

Headwinds

  • COVID-19 pandemic has had a major impact on society and the economy.
  • San Luis Río Colorado facility in Mexico was temporarily closed.
  • Purchase accounting associated with the acquisition of Geneva affected results.
  • Steel pressure pipe backlog declined as projected.
  • Acquisition-related charges impacted gross profit.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.7%

Avg return

Earnings day

+3.3%

Avg return

5 days after

+5.4%

Avg return

30 days after

48%

31 / 64 earnings

Positive

+15.4%

Q3 2021

Best reaction

-19.5%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+14.3%+29.5%+37.1%
Q4 2025+10.2%+9.4%+3.4%
Q3 2025+1.6%+14.4%+5.3%
Q1 2025-6.2%-11.0%-8.8%
Q4 2024-10.7%-13.9%-13.5%
Q3 2024-0.7%+4.5%+24.0%
Q2 2024+1.6%+4.4%+17.7%
Q1 2024+2.0%+5.6%+12.1%
Q4 2023-0.8%+13.6%+16.6%
Q3 2023+1.2%-7.0%-2.6%
Q2 2023-2.0%+0.1%+2.1%
Q1 2023-3.3%-4.5%+1.4%
Q4 2022-19.5%-18.1%-24.5%
Q3 2022-5.2%-2.2%+4.7%
Q2 2022+7.9%+11.2%+13.3%
Q1 2022+1.7%+7.5%+27.1%
Q4 2021+1.0%-3.1%-7.1%
Q3 2021+15.4%+19.7%+19.9%
Q2 2021-1.1%-4.5%-8.7%
Q1 2021-1.8%-2.6%-5.1%
Q4 2020-5.7%-3.4%-4.1%
Q3 2020-3.0%-4.8%+4.1%
Q2 2020+6.5%+10.9%+8.2%
Q1 2020+1.2%-6.3%+20.6%
Q4 2019-2.6%-8.5%-34.7%
Q3 2019+3.0%+9.6%+16.0%
Q2 2019+2.2%+11.5%+13.4%
Q1 2019+4.2%+9.7%+2.6%
Q4 2018+0.7%+1.8%+6.4%
Q3 2018+14.1%+26.4%+13.7%
Q2 2018+1.0%+0.1%-6.2%
Q1 2018-3.3%+1.2%+8.8%
Q4 2017+2.0%+5.8%-4.4%
Q3 2017-1.8%-1.9%+0.4%
Q2 2017+3.1%+7.0%+21.5%
Q1 2017+2.9%+6.2%+5.4%
Q4 2016+4.5%-1.6%-17.6%
Q3 2016+6.4%+4.6%+38.4%
Q2 2016+7.0%+8.2%+3.9%
Q1 2016-6.0%
Q4 2015-15.4%
Q3 2015+8.5%
Q2 2015+7.6%
Q1 2015-5.1%
Q4 2014-4.5%
Q3 2014-5.0%
Q2 2014-0.7%
Q1 2014-1.6%
Q4 2013-3.8%
Q3 2013-0.7%
Q2 2013-5.5%
Q1 2013-1.3%
Q4 2012+11.9%
Q3 2012-5.6%
Q2 2012+5.8%
Q1 2011-1.0%
Q4 2009-1.0%
Q3 2011-1.0%
Q3 2010-1.0%
Q4 2011-1.0%
Q1 2012-1.0%
Q2 2010+7.4%
Q2 2011+7.4%
Q4 2010+7.4%

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