Northwest Pipe Co (NWPX) Reports Q3 2023 Earnings, Announces $30M Share Repurchase Program
Northwest Pipe Co (NASDAQ:NWPX) reported a 3.5% decrease in net sales year-over-year, totaling $118.7 million in Q3 2023.
Gross profit for the quarter was $19.3 million, a 23.2% decrease compared to the same period last year.
The company announced a $30 million share repurchase program.
Backlog for the Engineered Steel Pressure Pipe segment stood at $253 million, with confirmed orders totaling $335 million.
Northwest Pipe Co (NASDAQ:NWPX) released its Q3 2023 financial results on November 2, 2023. The company reported net sales of $118.7 million, marking a 3.5% decrease year-over-year. Gross profit for the quarter was $19.3 million, a 23.2% decrease compared to the same period last year. The company also announced the authorization of a $30 million share repurchase program.
Management Commentary
Scott Montross, President and Chief Executive Officer of Northwest Pipe Company, commented on the company's performance. He stated,
Our SPP revenue of $80.5 million was strong even when taking into account multiple one-time anomalies that reduced both the revenue and gross margins we had expected in the third quarter. These anomalies included customer-driven contract changes as well as changes in project scope and delays that affected project delivery timing. Despite reduced bidding activity in 2023 and the associated pressure that has had on project bidding especially over the last few months, our backlog including confirmed orders has remained elevated at $335 million, setting the stage for a strong fourth quarter."
Financial Highlights
Net income for the quarter was $5.8 million, or $0.58 per diluted share, compared to $10.0 million, or $0.99 per diluted share, in the third quarter of 2022. The Engineered Steel Pressure Pipe Segment (SPP) saw net sales decrease by 3.8% to $80.5 million from $83.7 million in the third quarter of 2022. The Precast Infrastructure and Engineered Systems Segment (Precast) reported net sales of $38.2 million, a decrease of 2.8% from the same period last year.
Share Repurchase Program
Northwest Pipe Co (NASDAQ:NWPX) has authorized a share repurchase program of up to $30 million of its outstanding common stock. The program does not commit to any particular timing or quantity of purchases, and it may be suspended or discontinued at any time.
Balance Sheet and Cash Flow
As of September 30, 2023, the company had $58.1 million of outstanding revolving loan borrowings and additional borrowing capacity of approximately $66 million under the revolving credit facility. Net cash provided by operating activities was $16.9 million in the third quarter of 2023 compared to $15.3 million in the third quarter of 2022.
Explore the complete 8-K earnings release (here) from Northwest Pipe Co for further details.
This article first appeared on GuruFocus.
