Northwest Pipe Company reports net income in Q1

Monday, 11 May 2020 19:41:31 (GMT+3)   |   San Diego

Northwest Pipe Company today announced its financial results for the first quarter ended March 31, 2020.

Net sales increased 10.0 percent to $68.9 million in the first quarter of 2020 from $62.6 million in the first quarter of 2019 primarily due to an $8.0 million contribution from the company's recently acquired Geneva Pipe Company, Inc. operations. Legacy revenues decreased slightly from the first quarter of 2019 due to a 12 percent decrease in tons produced, partially offset by a 10 percent increase in selling price per ton.

Net income was $0.6 million, or $0.06 per diluted share, in the first quarter of 2020 compared to $2.2 million, or $0.22 per diluted share, in the first quarter of 2019. Adjusted net income was $3.2 million, or $0.33 per diluted share, in the first quarter of 2020. Adjusted net income excluded $2.5 million of acquisition-related transaction costs, $0.6 million of acquisition-related charges, $0.4 million in incremental production costs resulting from the fire at the company's Saginaw facility, and the tax impact of these items of $0.9 million.

"The COVID-19 pandemic has had a major impact on society and the economy. However, we continue to operate all of our plants with the exception of the San Luis Río Colorado facility in Mexico which the Mexican government required us to temporarily close. Fortunately, we have more than enough capacity at our remaining plants to absorb current and future orders for this facility," said Scott Montross, President and CEO of Northwest Pipe Company. "Before taking into account purchase accounting associated with our acquisition of Geneva, first quarter revenue and margins were in-line with our projections from the previous earnings call. Furthermore, even though steel pressure pipe backlog declined, as we projected, it remains very elevated by historic standards. Our order book for the concrete pipe and precast business is very strong as we head into the traditionally busy time of the year."

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