NASDAQ$NWPX

Northwest Pipe Company · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Net sales increased, but gross profit and net income decreased due to product mix and project pricing pressure.

Northwest Pipe Company reported a 5.5% increase in net sales to $73.8 million, driven by higher shipments from Geneva Pipe and Precast. However, gross profit decreased by 26.4% to $9.5 million, and net income decreased to $2.1 million, or $0.21 per diluted share, compared to $6.0 million, or $0.61 per diluted share, in the second quarter of 2020.

  • Net sales increased 5.5% year-over-year to $73.8 million.
  • Backlog reached $195 million, with $234 million including confirmed orders.
  • Net income was $2.1 million, or $0.21 per diluted share.
  • Refinancing completed, increasing borrowing capacity to $100 million.

Headline financials

Total Revenue

$73.8M

Previous: $70M+5.5%
EPS (adj)

$0.21

Previous: $0.45-53.3%
Capital Expenditures

-$4.78M

Previous: -$6.49M+26.4%
Free Cash Flow

-$2.65M

Previous: -$496K-433.7%
Net Income

$2.13M

Previous: $6M-64.5%
Operating Income

$3.2M

Previous: $7.37M-56.6%
Gross Profit

$9.54M

Previous: $13M-26.4%
Cash & Equivalents

$23.2M

Previous: $19.2M+20.8%
Total Assets

$364M

Previous: $352M+3.5%
Stock-Based Comp

$1.14M

Previous: $973K+17.5%

Revenue & EPS history

Northwest Pipe · Revenue · Quarterly

$73.8M

Q2 2021+5.5%vs Q2 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Northwest Pipe · $38.2M total across 1 segment · Q3 2023

  • Precast Infrastructure
    $38.2M-2.8%

Forward guidance

The company expects steel pressure pipe bidding strength and stability to continue to improve in the second half of the year. The precast concrete business is expected to remain strong during the second half of 2021.

Tailwinds

  • Steel pressure pipe bidding strength and stability are expected to improve in the second half of the year.
  • Growing backlog should support improved revenue and margins as we move into the latter part of 2021 and into 2022.
  • The precast concrete business is expected to remain strong during the second half of 2021.
  • Project bidding began to stabilize and improve during the second quarter.
  • Order book remains at a historically high level.

Headwinds

  • Steel delivery issues negatively affected production levels.
  • Customer-driven delays on existing orders negatively affected production levels.
  • Associated bidding pressure negatively affected margins.
  • Steel pressure pipe revenue and margin recovery will be slow in the beginning of the second half of 2021 due to steel delivery delays.
  • Lingering effect of market panic bidding and the resulting margin pressure.

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 Q2 2021

Historical avgQ2 2021

+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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