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Dec 31, 2021
Northwest Pipe Q4 2021 Earnings Report
Announced fourth quarter and full year 2021 financial results.
Key Takeaways
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.
Northwest Pipe
Northwest Pipe
Northwest Pipe Revenue by Segment
Revenue by Segment
Precast Infrastructure and Engineered Systems Revenue
CapyFin.com 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.
Positive Outlook
- 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.
Challenges Ahead
- 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.