NASDAQ$NWPX

Northwest Pipe Company · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Announced fourth quarter and full year 2021 financial results.

Northwest Pipe Company reported a 47.8% increase in net sales to $102.5 million for the fourth quarter of 2021, including $18.0 million from the acquisition of ParkUSA. Net income was $2.3 million, or $0.23 per diluted share, compared to $5.2 million, or $0.53 per diluted share, in the fourth quarter of 2020. The company ended the year with a record backlog including confirmed orders of $290 million.

  • Net sales increased 47.8% to $102.5 million in the fourth quarter of 2021.
  • Gross profit increased 9.8% to $13.6 million in the fourth quarter of 2021.
  • Net income was $2.3 million, or $0.23 per diluted share, in the fourth quarter of 2021.
  • Record order book of $51 million for the Precast Infrastructure and Engineered Systems segment.

Headline financials

Total Revenue

$103M

Previous: $69.4M+47.8%
EPS (adj)

$0.67

Previous: $0.57+17.5%
Capital Expenditures

$5.14M

Previous: $4.23M+21.5%
Free Cash Flow

$2.68M

Previous: $8.47M-68.4%
Net Income

$2.3M

Previous: $5.2M-55.8%
Operating Income

$3.09M

Previous: $7.7M-59.9%
Gross Profit

$13.6M

Previous: $12.4M+9.7%
Cash & Equivalents

$3M

Previous: $37.9M-92.1%
Total Assets

$548M

Previous: $373M+46.8%
Stock-Based Comp

$779K

Previous: $782K-0.4%

Revenue & EPS history

Northwest Pipe · Revenue · Quarterly

$103M

Q4 2021+47.8%vs Q4 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Northwest Pipe · $31M total across 1 segment · Q4 2021

  • Precast Infrastructure
    $31M

Forward guidance

The significant number of project bidding delays experienced during 2021 resulted in one of the smallest tonnage water transmission bidding years. Water transmission margins are expected to remain muted in the first quarter of 2022 as the company works through older backlog, and anticipate margin expansion beginning in the second quarter of 2022. The precast concrete business was strong throughout 2021 producing a record level of revenue, strong gross profit, and a record order book of $51 million as of December 31, 2021.

Tailwinds

  • Expect ParkUSA to be immediately accretive and to create organic growth opportunities throughout the Company.
  • Ended the year with a record backlog including confirmed orders of $290 million, which is expected to continue to grow in size and quality due to very strong bidding experienced so far in the first quarter of 2022.
  • Precast concrete business was strong throughout 2021 producing a record level of revenue, strong gross profit, and a record order book of $51 million as of December 31, 2021.
  • Based on the current precast related market strength, we are entering 2022 with solid momentum and expect the precast business to remain strong for the near term.
  • The business contributed $18 million in revenue to our fourth quarter results.

Headwinds

  • Significant number of project bidding delays experienced during 2021.
  • One of the smallest tonnage water transmission bidding years seen in a very long time.
  • A volatile steel market with significant delivery disruptions and customer driven production delays of orders already in backlog, created downward pressure on margins.
  • Water transmission margins to remain muted in the first quarter of 2022 as we work through older backlog.
  • Acquisition-related fair value inventory charges reduced Precast gross profit by $2.3 million.

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 Q4 2021

Historical avgQ4 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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