Q2 2024 Northwest Pipe Co Earnings Call Transcript
Key Points
- Northwest Pipe Co (NWPX) reported a consolidated net sales increase of 11.3% year-over-year to $129.5 million, the strongest quarterly level since early 2013.
- The Steel Pressure Pipe (SPP) segment achieved record quarterly revenue of $89.5 million, a 15.9% increase year-over-year.
- The company's consolidated gross profit for the second quarter increased 14.8% year-over-year to $25.8 million, setting a new record.
- Northwest Pipe Co (NWPX) successfully managed working capital, resulting in strong cash flow generation during the quarter.
- The SPP backlog improved to $348 million as of June 30, 2024, up from $337 million as of March 31, 2024, and $343 million as of June 30, 2023.
- The Precast segment faced a $4.3 million negative impact on sales due to severe weather events in Texas, affecting production, shipping, and order intake.
- Steel prices declined throughout the second quarter, stabilizing at around $650 per ton, which impacted realized selling prices.
- The Precast segment's gross margin decreased to 22.1% from 25.3% in the second quarter of 2023, primarily due to weather-related disruptions.
- Interest expense increased to $1.8 million from $1.2 million in the second quarter of 2023, due to higher average daily borrowings and interest rates.
- The current interest rate environment continues to create headwinds for the commercial nonresidential side of the Precast business.
Good morning, and welcome to Northwest Pipe Company's Second Quarter 2024 Earnings Conference Call. My name is Scott Montross, and I'm President and CEO of the company. I'm joined today by Aaron Wilkins, our Chief Financial Officer.
By now, all of you should have access to our earnings press release, which was issued yesterday, July 31, 2024, at approximately 4:00 p.m. Eastern Time. This call is being webcast, and it is available for replay. As we begin, I'd like to remind everyone that statements made on this call regarding our expectations for the future are forward-looking statements, and actual results could differ materially. Please refer to our most recent Form 10-K for the year ended December 31, 2023, and in our other SEC filings for a discussion of such risk factors that could cause actual results to differ materially from our expectations. We undertake no obligation to update any forward-looking statements.
Thank you all for joining us today. I'll begin with a review of our second-quarter
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