NASDAQ$NWPX

Northwest Pipe Company · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Net sales increased, but gross profit decreased due to product mix changes, while net income decreased compared to the same quarter last year.

Northwest Pipe Company reported a 9.0% increase in net sales to $84.6 million for the third quarter of 2021, driven by higher pricing and shipments of precast concrete products and increased selling prices in steel pipe facilities. However, gross profit decreased by 20.8% to $12.4 million due to changes in product mix and project pricing pressure. Net income was $4.9 million, or $0.50 per diluted share, compared to $7.3 million, or $0.73 per diluted share, in the third quarter of 2020.

  • Net sales increased 9.0% year-over-year to $84.6 million.
  • Backlog reached $191 million, with $273 million including confirmed orders.
  • Net income was $4.9 million, or $0.50 per diluted share.
  • Acquisition of Park Environmental Equipment, LLC (“ParkUSA”) was completed on October 5, 2021.

Headline financials

Total Revenue

$84.6M

Previous: $77.6M+9.0%
EPS (adj)

$0.54

Previous: $0.78-30.8%
Capital Expenditures

-$8.13M

Previous: -$9.79M+17.0%
Free Cash Flow

-$3.18M

Previous: -$2.52M-26.2%
Net Income

$4.95M

Previous: $7.27M-31.9%
Operating Income

$6.8M

Previous: $9.96M-31.7%
Gross Profit

$12.4M

Previous: $15.6M-20.8%
Cash & Equivalents

$3.19M

Previous: $30.4M-89.5%
Total Assets

$381M

Previous: $367M+3.9%
Stock-Based Comp

$597K

Previous: $873K-31.6%

Revenue & EPS history

Northwest Pipe · Revenue · Quarterly

$84.6M

Q3 2021+9%vs Q3 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 upward movement of backlog and margins to continue through year end and lead to a stronger start to 2022. The existing precast business is expected to have slightly higher revenue and margins than in the fourth quarter of 2020. Water transmission revenue is expected to be a little lower than third quarter.

Tailwinds

  • ParkUSA acquisition expected to be immediately accretive and provide organic growth opportunities.
  • Existing precast and ParkUSA’s order books are both at historically high levels.
  • Existing precast business is expected to have slightly higher revenue and margins than in the fourth quarter of 2020.
  • Upward movement of backlog and margins is expected to continue through year end.
  • A stronger start to 2022 is anticipated.

Headwinds

  • COVID‑19 related delays continue to push bidding into 2022.
  • Water transmission revenue is expected to be a little lower than third quarter.
  • Time of the year affected by major holidays and weather events.
  • Slower improvement in bidding volume.
  • Unknown impacts of external factors.

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 Q3 2021

Historical avgQ3 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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