Northwest Pipe(US:NWPX)2025-05-01 20:03Financial Performance - For the three months ended March 31, 2025, net sales increased to $116.1 million, up from $113.2 million in the same period of 2024, representing a growth of 2.5%[53] - The Engineered Steel Pressure Pipe segment generated net sales of $78.4 million, while the Precast Infrastructure and Engineered Systems segment reported net sales of $37.7 million, reflecting increases of 0.5% and 13.9% respectively compared to the prior year[66] - The gross profit for the Company decreased to $19.4 million for the three months ended March 31, 2025, down from $20.1 million in 2024, indicating a decline of approximately 3.7%[66] - Basic net income per share for the three months ended March 31, 2025, was $0.40, down from $0.53 in 2024, reflecting a decline of 24.5%[61] - The effective income tax rate for the three months ended March 31, 2025, was recorded at 19.8%, a decrease from 27.5% in the same period of 2024[59] Share Repurchase and Compensation - The Company repurchased approximately 127,000 shares for $3.7 million during the three months ended March 31, 2024, with $24.9 million remaining available for repurchases as of March 31, 2025[33] - The Company executed a Rule 10b5-1 trading plan in March 2025, designating up to $5 million for daily share repurchases between April 2, 2025, and July 31, 2025[32] - Share-based compensation expense for the three months ended March 31, 2025, totaled $1.138 million, compared to $1.025 million for the same period in 2024, reflecting a 11% increase[37] - The unvested balance of RSUs and PSAs as of March 31, 2025, was 229,797, with an estimated unrecognized compensation expense of $7.3 million expected to be recognized over a weighted-average period of 1.9 years[39] - The Company announced a share repurchase program of up to $30 million on November 2, 2023, which may be suspended or discontinued at any time[31] Assets and Liabilities - As of March 31, 2025, total inventories increased to $80.684 million from $79.770 million as of December 31, 2024, representing a 1.14% increase[25] - The fair value of the Company's financial assets as of March 31, 2025, was $3.729 million, down from $4.114 million as of December 31, 2024, indicating a decrease of 9.36%[28] - Contract assets at the end of the period were $105.0 million, while contract liabilities were $9.3 million, resulting in net contract assets of $95.7 million[56] - The Company has commitments of approximately $1.1 million related to its investment in a new reinforced concrete pipe mill as of March 31, 2025[47] - The Company has entered into letters of credit totaling $1.6 million as of March 31, 2025, related to workers' compensation insurance and a public improvement project[48] Environmental and Legal Matters - The Company has not recorded any liability related to the Portland Harbor Superfund Site as of the date of this filing due to the uncertainty of costs and responsibilities[40] - The Company participated in a Natural Resource Damage Assessment for the Portland Harbor Superfund Site, funding $0.4 million of the assessment without assuming additional payment obligations[42] Backlog and Future Expectations - As of March 31, 2025, the backlog for remaining performance obligations was $203 million, with expectations to recognize approximately 75% in 2025 and 22% in 2026[57] - The Company recognized net revisions in contract estimates that resulted in an increase in SPP net sales of $3.6 million for the three months ended March 31, 2025[51] Stock Incentive Plans - The Company has one active stock incentive plan, the 2022 Stock Incentive Plan, which provides for various equity awards to employees and directors[35]