NASDAQ$NWPX

Northwest Pipe Company · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported a strong first quarter with increased net sales and gross profit, driven by growth in both the Engineered Steel Pressure Pipe and Precast Infrastructure and Engineered Systems segments.

Northwest Pipe Company announced a 51.2% increase in net sales to $109.3 million and a 68.5% increase in gross profit to $14.8 million for the first quarter of 2022. Net income was $3.6 million, or $0.36 per diluted share, while adjusted net income was $4.2 million, or $0.42 per diluted share.

  • Net sales increased by 51.2% year-over-year to $109.3 million.
  • Gross profit increased by 68.5% year-over-year to $14.8 million.
  • Record order book of $66 million for the Precast Infrastructure and Engineered Systems segment.
  • Backlog including confirmed orders of $341 million for the Engineered Steel Pressure Pipe segment, a new quarterly record.

Headline financials

Total Revenue

$109M

Previous: $72.3M+51.2%
EPS (adj)

$0.42

Previous: $0.22+90.9%
WTS Backlog

$200M

No prior period
Precast Order Book

$66M

No prior period
Capital Expenditures

-$4.44M

Previous: -$1.86M-138.6%
Free Cash Flow

-$881K

Previous: $314K-380.6%
Net Income

$3.56M

Previous: $2.18M+63.6%
Operating Income

$5.42M

Previous: $2.95M+84.0%
Gross Profit

$14.8M

Previous: $8.78M+68.5%
Cash & Equivalents

$3.3M

Previous: $29.9M-89.0%
Total Assets

$560M

Previous: $367M+52.3%
Stock-Based Comp

$635K

Previous: $697K-8.9%

Revenue & EPS history

Northwest Pipe · Revenue · Quarterly

$109M

Q1 2022+51.2%vs Q1 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Northwest Pipe · $34.6M total across 1 segment · Q1 2022

  • Precast Infrastructure
    $34.6M

Forward guidance

The company expects bidding to be fairly solid throughout 2022 and backlog to remain elevated compared to recent historical levels. The improving quality of the backlog is expected to lead to SPP margin expansion into the mid-teens beginning in the second quarter. The order book to continue to grow for the near term which should facilitate further margin expansion as we progress through what appears to be a very strong precast market in 2022

Tailwinds

  • Strong steel pressure pipe bidding expected to continue throughout 2022.
  • Backlog expected to remain elevated compared to recent historical levels.
  • Improving quality of backlog expected to lead to SPP margin expansion into the mid-teens beginning in the second quarter.
  • Precast order book expected to continue to grow in the near term.
  • Further margin expansion expected in the precast market as we progress through 2022.

Headwinds

  • SPP gross profit margins remained muted in the first quarter due to the extremely small bidding market and associated bidding pressures experienced in 2021.
  • First quarter SPP margins were reduced for a product liability settlement reserve recorded in the quarter.
  • Changes in product mix impacted SPP gross profit.
  • Pressure on project pricing impacted SPP gross profit.
  • Supply chain challenges.

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 2022

Historical avgQ1 2022

+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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