Northwest Pipe Company Announces Fourth Quarter and Full Year 2024 Financial Results

Fourth quarter net sales of $119.6 million increased 8.6% year-over-year Annual net sales of $492.5 million, a Company record under its current operating segments, increased 10.8% year-over-year Record annual net sales for the Engineered Steel Pressure Pipe segment ("SPP") and Precast Infrastructure and Engineered Systems segment ("Precast") Record annual gross profit of $95.4 million increased 22.9% year-over-year Record annual net income of $3.40 per diluted share Strong annual net cash provided by operating activities of $55.1 million SPP backlog1 of $213 million; SPP backlog including confirmed orders2 of $310 million Precast order book3 of $61 million Record safety performance; annual total recordable incident rate of 1.25 and annual days away rate of 0.14 , Northwest Pipe Company (NASDAQ: NWPX) (the "Company"), a leading manufacturer of water-related infrastructure products, today announced its financial results for the fourth quarter and full year ended December 31, 2024. The Company will broadcast its fourth quarter and full year 2024 earnings conference call on Thursday, February 27, 2025 at 7:00 a.m. PT. Management Commentary "We delivered a stronger-than-normal fourth quarter, with SPP revenue reaching $82.5 million and a solid 17.9% gross margin," said Scott Montross, President and Chief Executive Officer of Northwest Pipe Company. "Robust fourth quarter bidding activity pushed our SPP backlog including confirmed orders to $310 million, positioning us well for continued strength in 2025. Precast revenue came in at $37.1 million, with a 20.7% gross margin, reflecting some market softness in non-residential construction demand. However, the Precast order bookings surged to $61 million, a significant increase from $46 million at the same time last year, indicating momentum heading into the new year." Mr. Montross continued, "For the full year of 2024, the Company posted outstanding results, achieving record financial and operational performance. Our SPP segment generated record revenue of $337.9 million and record gross profit of $62.6 million, while the Precast group delivered record revenue of $154.6 million and gross profit of $32.8 million, despite challenges in the non-residential construction markets. On a consolidated basis, we achieved record gross profit of $95.4 million. In addition, we generated $34.3 million in free cash flow4, consistent with our net income, both translating to $3.40 per diluted share and demonstrating the strength and quality of our earnings. Most importantly, we achieved a record safety performance, with a total recordable incident rate of 1.25, underscoring our unwavering commitment to the well-being of our employees." Mr. Montross concluded, "We entered 2025 with a strong SPP backlog and a robust Precast order book. While we expect a light bidding environment in SPP during the first quarter, we anticipate strong bidding activity in the second and third quarters, with full-year bidding levels aligning closely with 2024. In our Precast segment, the residential business remains strong, and we are now seeing a surge in the non-residential order book, indicating improved strength in 2025. On a consolidated basis, we expect the first quarter of 2025 to resemble the first quarter of 2024, as weather events in various locations across the country continue to have an impact." Fourth Quarter 2024 Financial Results Consolidated Net sales increased 8.6% to $119.6 million from $110.2 million in the fourth quarter of 2023. Gross profit increased 16.3% to $22.4 million, or 18.8% of net sales, from $19.3 million, or 17.5% of net sales, in the fourth quarter of 2023. Net income was $10.1 million, or $1.00 per diluted share, compared to $5.4 million, or $0.54 per diluted share, in the fourth quarter of 2023. Net income included a favorable impact of $2.3 million, or $0.23 per diluted share, related to the realization of previously uncertain income tax positions, resulting in adjusted net income of $7.8 million, or $0.77 per diluted share. Engineered Steel Pressure Pipe Segment (SPP) SPP net sales increased 9.9% to $82.5 million from $75.1 million in the fourth quarter of 2023 driven by an 11% increase in tons produced resulting primarily from an improved bidding environment coupled with changes in project timing. SPP gross profit increased 32.2% to $14.8 million, or 17.9% of SPP net sales, from $11.2 million, or 14.9% of SPP net sales, in the fourth quarter of 2023 primarily due to increased volume and changes in product mix. SPP backlog was $213 million as of December 31, 2024 compared to $231 million as of September 30, 2024 and $273 million as of December 31, 2023. Backlog including confirmed orders was $310 million as of December 31, 2024 compared to $282 million as of September 30, 2024 and $319 million as of December 31, 2023. Precast Infrastructure and Engineered Systems Segment (Precast) Precast net sales increased 5.9% to $37.1 million from $35.1 million in the fourth quarter of 2023 driven by a 23% increase in volume shipped, partially offset by a 14% decrease in selling prices primarily due to changes in product mix. Precast gross profit decreased 5.4% to $7.7 million, or 20.7% of Precast net sales, from $8.1 million, or 23.2% of Precast net sales, in the fourth quarter of 2023 primarily due to changes in product mix. Precast order book was $61 million as of December 31, 2024 compared to $57 million as of September 30, 2024 and $46 million as of December 31, 2023. Full Year 2024 Financial Results Consolidated Net sales increased 10.8% to $492.5 million in 2024, a Company record under its current operating segments, from $444.4 million in 2023. Gross profit increased 22.9% to $95.4 million, or 19.4% of net sales, in 2024 from $77.6 million, or 17.5% of net sales, in 2023. Net income was $34.2 million, or $3.40 per diluted share, in 2024 compared to $21.1 million, or $2.09 per diluted share, in 2023. Net income included a favorable impact of $2.3 million, or $0.23 per diluted share, related to the realization of previously uncertain income tax positions, resulting in adjusted net income of $31.9 million, or $3.17 per diluted share. Engineered Steel Pressure Pipe Segment (SPP) SPP net sales increased 14.0% to a record $337.9 million in 2024 from $296.4 million in 2023 driven by a 33% increase in tons produced resulting from an improved bidding environment and changes in project timing, which was partially offset by a 14% decrease in selling price per ton due to a combination of lower raw materials costs and product mix. SPP gross profit increased 47.6% to a record $62.6 million, or 18.5% of SPP net sales, in 2024 from $42.4 million, or 14.3% of SPP net sales, in 2023 primarily due to increased volume and changes in product mix. Precast Infrastructure and Engineered Systems Segment (Precast) Precast net sales increased 4.5% to a record $154.6 million in 2024 from $148.0 million in 2023 driven by a 28% increase in volume shipped, partially offset by a 15% decrease in selling prices primarily due to changes in product mix. Precast gross profit decreased 6.9% to $32.8 million, or 21.2% of Precast net sales, in 2024 from $35.2 million, or 23.8% of Precast net sales, in 2023 primarily due to changes in product mix. Balance Sheet and Cash Flow Details As of December 31, 2024, the Company had $24.7 million of outstanding revolving loan borrowings and additional borrowing capacity of approximately $99 million under the revolving credit facility. Net cash provided by operating activities was $36.1 million in the fourth quarter of 2024 compared to $9.0 million in the fourth quarter of 2023 primarily due to a $24.8 million increase in cash provided by changes in working capital and a $2.2 million increase in cash provided by net income adjusted for non-cash items. Net cash provided by operating activities was $55.1 million in 2024 compared to $53.5 million in 2023 primarily due to a $12.9 million increase in cash provided by net income, adjusted for non-cash items, partially offset by a $11.3 million decrease in cash provided by changes in working capital. Capital expenditures were $4.2 million in the fourth quarter of 2024 compared to $5.0 million in the fourth quarter of 2023. Capital expenditures were $20.8 million in 2024 compared to $18.3 million in 2023. ____________________ 1 Northwest Pipe Company defines "backlog" as the balance of remaining performance obligations under signed contracts for Engineered Steel Pressure Pipe products for which revenue is recognized over time. 2 Northwest Pipe Company defines "confirmed orders" as Engineered Steel Pressure Pipe projects for which the Company has been notified that it is the successful bidder, but a binding agreement has not been executed. 3 Northwest Pipe Company defines "order book" as unfulfilled orders outstanding at the measurement date for its Precast Infrastructure and Engineered Systems segment. 4 Northwest Pipe Company defines "free cash flow" as cash flows from operating activities less purchases of property and equipment. For purposes of the full year 2024, $55.1 million of net cash provided by operating activities, less $20.8 million in purchases of property and equipment, resulted in $34.3 million of free cash flow. Conference Call Details A conference call and simultaneous webcast to discuss the Company's fourth quarter and full year 2024 financial results will be held on Thursday, February 27, 2025, at 7:00 a.m. Pacific Time. The call will be broadcast live on the Investor Relations section of the Company's website at investor.nwpipe.com and will be archived online upon completion of the conference call. For those unable to listen to the live call, a replay will be available approximately three hours after the event and will remain available until Thursday, March 13, 2025, by dialing 1‑844‑512‑2921 in the U.S. or 1‑412‑317‑6671 internationally and entering the replay access code: 13750954. About Northwest Pipe Company Founded in 1966, Northwest Pipe Company is a leading manufacturer of water-related infrastructure products. In addition to being the largest manufacturer of engineered steel water pipeline systems in North America, the Company manufactures stormwater and wastewater technology products; high-quality precast and reinforced concrete products; pump lift stations; steel casing pipe, bar-wrapped concrete cylinder pipe, and one of the largest offerings of pipeline system joints, fittings, and specialized components. Strategically positioned to meet growing water and wastewater infrastructure needs, Northwest Pipe Company provides solution-based products for a wide range of markets under the ParkUSA, Geneva Pipe and Precast, Permalok®, and Northwest Pipe Company lines. The Company's diverse team is committed to quality and innovation while demonstrating the Company's core values of accountability, commitment, and teamwork. The Company is headquartered in Vancouver, Washington, and has 13 manufacturing facilities across North America. Please visit www.nwpipe.com for more information. Forward-Looking Statements Statements in this press release by Scott Montross contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on current expectations, estimates, and projections about the Company's business, management's beliefs, and assumptions made by management. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements as a result of a variety of important factors. While it is impossible to identify all such factors, those that could cause actual results to differ materially from those estimated by the Company include changes in demand and market prices for its products, product mix, bidding activity and order modifications or cancelations, timing of customer orders and deliveries, production schedules, price and availability of raw materials, excess or shortage of production capacity, international trade policy and regulations, changes in tariffs (in particular Canada and Mexico) and duties imposed on imports and exports and related impacts on the Company, economic uncertainty and associated trends in macroeconomic conditions, including potential recession, inflation, and the state of the housing and commercial construction markets, interest rate risk and changes in market interest rates, including the impact on the Company's customers and related demand for its products, the Company's ability to identify and complete internal initiatives and/or acquisitions in order to grow its business, the Company's ability to effectively integrate future acquisitions into its business and operations that produce accretive financial results, effects of security breaches, computer viruses, and cybersecurity incidents, timing and amount of share repurchases, impacts of U.S. tax reform legislation on the Company's results of operations, and the impact on our customers and related demand for our products, adequacy of the Company's insurance coverage, supply chain challenges, labor shortages, impact of geopolitical trends, changes, and events, including the ongoing military conflicts in Ukraine and the Middle East or tensions in the Taiwan Strait and South China Sea and the regional and global ramifications of these events, operating problems at the Company's manufacturing operations including fires, explosions, inclement weather, and floods and other natural disasters, material weaknesses in the Company's internal control over financial reporting and its ability to remediate such weaknesses, impacts of pandemics, epidemics, or other public health emergencies, and other risks discussed in the Company's Annual Report on Form 10‑K for the year ended December 31, 2023 and from time to time in its other Securities and Exchange Commission filings and reports. Such forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release. If the Company does update or correct one or more forward-looking statements, investors and others should not conclude that it will make additional updates or corrections with respect thereto or with respect to other forward-looking statements. Non-GAAP Financial Measures The Company is presenting backlog including confirmed orders, free cash flow, and adjusted net income. These non-GAAP financial measures are provided to better enable investors and others to assess the Company's ongoing operating results and compare them with its competitors. These should be considered a supplement to, and not a substitute for, or superior to, financial measures calculated in accordance with GAAP. For more information, visit www.nwpipe.com. Contact:Aaron WilkinsChief Financial OfficerNorthwest Pipe Company[email protected] Or Addo Investor Relations[email protected] NORTHWEST PIPE COMPANY AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)(In thousands, except per share amounts) Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 Net sales: Engineered Steel Pressure Pipe $ 82,491 $ 75,087 $ 337,945 $ 296,381 Precast Infrastructure and Engineered Systems 37,136 35,077 154,603 147,974 Total net sales 119,627 110,164 492,548 444,355 Cost of sales: Engineered Steel Pressure Pipe 67,738 63,924 275,341 253,954 Precast Infrastructure and Engineered Systems 29,451 26,950 121,802 112,759 Total cost of sales 97,189 90,874 397,143 366,713 Gross profit: Engineered Steel Pressure Pipe 14,753 11,163 62,604 42,427 Precast Infrastructure and Engineered Systems 7,685 8,127 32,801 35,215 Total gross profit 22,438 19,290 95,405 77,642 Selling, general, and administrative expense 11,941 10,665 47,161 43,784 Operating income 10,497 8,625 48,244 33,858 Other income (loss) 74 500 (213) 276 Interest expense (911) (1,133) (5,660) (4,855) Income before income taxes 9,660 7,992 42,371 29,279 Income tax expense (benefit) (436) 2,548 8,165 8,207 Net income $ 10,096 $ 5,444 $ 34,206 $ 21,072 Net income per share: Basic $ 1.02 $ 0.54 $ 3.45 $ 2.11 Diluted $ 1.00 $ 0.54 $ 3.40 $ 2.09 Shares used in per share calculations: Basic 9,919 10,010 9,916 9,991 Diluted 10,108 10,105 10,066 10,081 NORTHWEST PIPE COMPANY AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)(In thousands) December 31, 2024 2023 Assets Current assets: Cash and cash equivalents $ 5,007 $ 4,068 Trade and other receivables, net 66,946 47,645 Contract assets 103,422 120,516 Inventories 79,770 91,229 Prepaid expenses and other 7,343 9,026 Total current assets 262,488 272,484 Property and equipment, net 150,456 143,955 Operating lease right-of-use assets 87,747 88,155 Goodwill 55,504 55,504 Intangible assets, net 27,041 31,074 Other assets 6,417 6,709 Total assets $ 589,653 $ 597,881 Liabilities and Stockholders' Equity Current liabilities: Current debt $ - $ 10,756 Current portion of long-term debt 2,994 - Accounts payable 27,783 31,142 Accrued liabilities 28,172 27,913 Contract liabilities 11,197 21,450 Current portion of operating lease liabilities 4,987 4,933 Total current liabilities 75,133 96,194 Borrowings on line of credit 24,677 54,485 Long-term debt 11,476 - Operating lease liabilities 85,744 85,283 Deferred income taxes 8,297 10,942 Other long-term liabilities 10,323 10,617 Total liabilities 215,650 257,521 Stockholders' equity 374,003 340,360 Total liabilities and stockholders' equity $ 589,653 $ 597,881 NORTHWEST PIPE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) Year Ended December 31, 2024 2023 Cash flows from operating activities: Net income $ 34,206 $ 21,072 Depreciation and finance lease amortization 15,038 11,616 Amortization of intangible assets 4,033 4,190 Deferred income taxes (4,684) (172) Gain on insurance proceeds - (466) Share-based compensation expense 5,061 3,672 Other, net 728 1,547 Changes in working capital 669 11,996 Net cash provided by operating activities 55,051 53,455 Cash flows from investing activities: Purchases of property and equipment (20,799) (18,291) Payment of working capital adjustment in acquisition of business - (2,731) Proceeds from insurance - 431 Other investing activities 63 219 Net cash used in investing activities (20,736) (20,372) Cash flows from financing activities: Borrowings on line of credit 171,329 155,398 Repayments on line of credit (201,137) (184,609) Borrowings on other debt 4,244 - Payments on other debt (500) - Payments on finance lease liabilities (1,419) (826) Tax withholdings related to net share settlements of equity awards (1,449) (1,652) Repurchase of common stock (4,429) (707) Other financing activities (15) (300) Net cash used in financing activities (33,376) (32,696) Change in cash and cash equivalents 939 387 Cash and cash equivalents, beginning of period 4,068 3,681 Cash and cash equivalents, end of period $ 5,007 $ 4,068 SOURCE Northwest Pipe Company WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Northwest Pipe Company Announces Fourth Quarter and Full Year 2024 Financial Results

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