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Mar 31, 2021
Northwest Pipe Q1 2021 Earnings Report
Net sales increased and backlog remained strong.
Key Takeaways
Northwest Pipe Company reported a 4.9% increase in net sales to $72.3 million and a net income of $2.2 million, or $0.22 per diluted share, for the first quarter ended March 31, 2021. The company's backlog remained strong at $178 million, with $210 million including confirmed orders.
Net sales increased 4.9% year-over-year to $72.3 million.
Net income was $2.2 million, or $0.22 per diluted share.
Backlog reached $178 million, with $210 million including confirmed orders.
Steel pressure pipe backlog remained over $200 million for the eleventh consecutive quarter.
Northwest Pipe
Northwest Pipe
Forward Guidance
The second quarter will continue to be challenging as we expect steel market supply disruptions to persist which could affect production. The bidding delays that have occurred over the last several months are diminishing but appear to have caused project requirements to stack up which could lead to an extended period of very strong steel pressure pipe demand. The first quarter’s ending precast concrete order book was elevated and continues to gain strength, indicating the potential for a strong second quarter in the precast concrete business.
Positive Outlook
- Bidding delays are diminishing.
- Project requirements stacking up could lead to strong steel pressure pipe demand.
- Precast concrete order book was elevated and continues to gain strength.
- Potential for a strong second quarter in the precast concrete business.
- Steel pressure pipe backlog of $210 million representing the eleventh straight quarter over $200 million
Challenges Ahead
- First quarter was challenging due to bidding delays, extreme weather events, and supply disruptions in the steel market.
- Second quarter will continue to be challenging.
- Steel market supply disruptions are expected to persist, which could affect production.
- Decrease in gross profit due to product mix at the Company’s legacy steel pipe facilities
- Total cash and cash equivalents were down from $37.9 million as of December 31, 2020 primarily due to changes in working capital and debt service repayments.