NWPX - Earnings call transcript Q1 2024

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Operator

Hello and welcome to the Northwest Pipe Company First Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Scott Montross, CEO of Northwest Pipe Company. Please go ahead, sir.

Scott Montross

Good morning and welcome to Northwest Pipe Company's First Quarter 2024 Earnings Conference Call. My name is Scott Montross, and I'm President and CEO of the company. May Aaron should Chief earnings have which issued by all Officer. By press today approximately was you at of access yesterday, joined Wilkins, Financial our now, release, X I'm p.m. XXXX, X, to our Eastern Time. and is for replay. is call This it available webcast, being

statements. Thank recent made the could As of you begin we performance most from future for such We will to XX, and of year undertake a cause to statements, actual results actual statements are materially. factors the forward-looking like call joining then Please regarding Aaron our walk everyone could that obligation discussion to review a in financials quarter forward-looking greater our XX-K all begin, today. this remind us our differ ended our results refer and you I to XXXX, filings with the our for our I'll expectations. would outlook for that differ on first detail. no Form XXXX. expectations for and in materially any through for SEC risk update other December and

quarter in first than precast surpassing while our results came pipe with were expectations, pressure Our steel business anticipated. softer mixed

sales net the whole, increased the on XX.X% year-over-year profitability $XXX.X On our levels revenue quarter of we've million first solid strongest representing and ever had.

company increase from First in totaled this year-over-year, for XX.X% of an highest SPP the quarter quarter million, our reported history revenue $XX segment. first ever segment

the environment year in changes experienced pipeline project bidding early the of we following to quarter performance the higher Our bidding due improved we've XXXX. small related timing opportunities primarily reflected bidding strong to had date levels and in to relatively production in to mid-first

XX, as job confirmed an in totaling from do first projects. and XXXX, quarter million our to team of an of from down bids wins bidding March including strong led million March orders improvement executing SPP the $XXX and Our SPP the million, activity December and as project XX, XXXX. $XXX XX to on continues $XXX very at backlog, The excellent

was performance weeks. to prices prices quarter at to $XX by production weekly basis. short standards stable, relatively or selling down fluctuating per X first offset up timing. Steel and be high remain ton project historical mix times to fairly $XX partially and lower continue Lead by remain appear between on to Our a X due and fairly

turning revenue Precast fourth first XXXX bookings light precast in declined business slow year-over-year caution fairly due rate of Now primarily related from to to segment. the construction-related current $XX.X at in quarter due the environment. to shipments to mainly X.X% resulting million nonresidential precast very our quarter interest Park, to customer

million only As result, $XX fourth in the of we a quarter. at Park booked orders

of the bookings residential Geneva Park at to strengthening and higher production shipment rebounded of first strong However, modest time for some selling the levels, and we especially the at our residential lower slower volumes books average changes with was That, business mix business pressure order pricing the shipping at under first be to nonresidential business precast at $XX strong a coming level, which quarter from during year. by along offset a the is residential Both over seasonally Geneva. well which first that million. The quarter, in quarter. drove partially typically precast experienced, a with as precast, came price continued robust for as

of up XX, XXXX. $XX March December million, million our totaled order of as down and March million book from of from $XX XX, as XXXX, As XX, the $XX

of the year-over-year quarter from XXXX. profit increased First gross consolidated up $XX.X resulting in first of in million, to a margin XX.X%, XX.X% gross quarter XX.X%

volume on quarter strong, bidding persistent with business. was given primarily and customer-driven over focus the XXX XXX higher changes basis points coupled year period prior margin of by prior points by quarter production our first significant basis gross strength the higher-margin approximately in XX.X% timing SPP the activity Our increasing due and over to

Our XXXX side XX.X% facilities in revenue precast to depressed gross margin the the of of as absorption. and first was quarter construction resulted lower nonresidential on reduced shipments first the down at overhead XX.X% compared in Park associated quarter

However, on expected, in modest Geneva regional margins come due the to have pressure demand. under side construction the as also we residential difference at some market

provide Next, priorities. to our I like update allocation on would capital an

spread opportunities. Beginning priority remains product for growth spread. XXXX with our strategy Our the product top M&A through of business strategic organic and

maximizing with of continue execute by efficiencies strategy We utilization Texas-based goal and building of overall production to one volume. capacity a plants this level our precast out at

Texas. In outside first million on orders scheduled in are more strategy the our expand approximately and in currently the of Park of over come. out precast couple next two of at products booked existing of Geneva were outside we projects locations produce production bid million on precast level two established on locations locations, regard quarter, to to Utah are first comfortably we of plan $XX.X our Northwest to During quarter with of spread the we and projects Park we worth $X.X product geographic XX production the of additional during more to projects Pipe the years. level products Texas our at worth locations, Once of the XXXX, XX to

finance take ensure we to to growth, ParkUSA incurred we repaying future well acquisition are of debt advantage opportunities. to we XXXX growth of positioned committed are the Following the organic to

precast-related M&A to we are pertains As actively it opportunities. our evaluating strategy,

shares and flow we our opt be under including liquidity, positive compliance high-quality to may of execute strong and a includes our to profile. to borrowings meaningful that facility business. repurchasing of a EPS asset possess covenant capital ready margin to accretive common criteria our growth availability of amended and Our organic that opportunistic and are in stock, our credit are consistent we needs solid acquisition, the and Until subject potential, candidates other cash efficiency

bought repurchase of approximately since And of initial April back of share million. quarter, During we worth $X.X of authorization we shares total XXX,XXX million a of as the the our for first a XXXX, $X our shares November repurchased approximately XX. total in

XXXX. quarter revenue be of first our the and with in Before summarize for we of like I'd relatively line to second our business, In I XXXX. outlook conclude, margin gross quarter both the SPP to anticipate our

As continued revenue we the strength in we throughout to year, of XXXX. move margins, expect we our in the similar and balance what saw

amount backlog we expect historical also water standards add, like and to high encouraged SPP the we're of current also transmission expected by by of upcoming activity We remain bidding XXXX. projects. seeing to volume on I'd in our remain the given

tab and precast quarter, margins are first Presentation projects, in of within our which the in website precast be improvement revenue the business, a our Events slow and segment, is section. In and XXXX can a we complete strong significant investor quarter of review second these both for remainder the generally which found the case following presentations, please our our For view more the of Investor on of the year. expecting

We the the the of the summary, position. In strength in solid for demand, continue infrastructure residential to housing, term a a believe the specifically for market quarter precast in the need the significant growing positioning in business we our growth level environment opportunities to and of in despite first long mid- start strategy what growing of space. marked arising pent-up given continuing take to U.S. will is we to and that take we future embarked to we stronger the persistent macroeconomic on ourselves advantage significantly believe in The that shape, challenges. focused XXXX a year bidding anticipate be precast on diversification remain spending

financial to during periods the cycle. pressure We of continue nature our steel the precast pipe and business precast rate of the and interest business conversion believe business variability resulting cash out nature business precast faster impacts despite in to the more given the of associated the term helps market the longer cyclical balance the believe in prospects performance. transactional environment of less current the We

near our infused Our grow goal the in precast-related safety and on in remains thank continued term. I'd at of for similar operational business teams for as our every size our level the our business like the field a to organization. for strong performance emphasis SPP to the to

two, company; levels continuing remain: over identify focus proud ahead, one, cost the Looking volume; reductions persistently four, now our a our all of financial through absence returning and opportunistic implement continuing shareholders M&A margin strategic through to repurchases. I greater of value our will are opportunities, the in on turn three, employees at our and where priorities to the the will to call workplace opportunities walk five, safe who in grow results over share to to company; efficiencies detail. Aaron, work; maintaining to

Aaron Wilkins

overview the $XXX.X XXXX. $X.X increased $XX quarter. Steel million year million share profitability. an to Thank in net Consolidated or good or segment first quarter to morning, sales first first quarter $XX.X to income compared the $X.XX share in for was $X.XX pipe of Consolidated begin everyone. first of $XX.X with compared per I'll Scott, in increased diluted our million $X.X XX.X% diluted to compared you, the quarter today per and of quarter million pressure the sales XX.X% million to million XXXX. ago net

earlier, highlighted partially steel compared to per decrease was decreased by product shipped. sales XX% $XX.X in timing, a was decrease offset due in increase volume by offset XXXX price mix. Precast product our to primarily of prices expectations which exceeded in project in ton XX% to resulting produced primarily an $XX.X pressure due a million changes mix, primarily sales first to from pipe due tons a to Scott driven increase in which quarter As in X.X% by selling million XX% segment partially the selling XX%

Therefore, of Park the highly always shipment case primarily the changes segment's in primarily sales, lines. Products composition gross mix. Precast volume segments they and due increased each XX% are on quarter business of sales quarter, profit pipe to unique. XXXX XX.X% gross production for XXXX the quarter or comparable not periods the precast sales sales due case of first to $X.X of volumes $X.X changes our in as are the profit delivery XXXX. to precast, profit or XX%, $XX.X shipment product decreased pressure from or of both mix. Consolidated contractors first metrics $XX.X of volumes segment gross of segment gross XX.X%, prices business million, $XX.X corresponding Geneva quarter average Our or of XX.X% while benefited to first million XX.X% in mix. in in dependent of provide compared and increased or steel in volumes XX.X% of million the profit sales product SPP between we sales XX.X% to the in the of do compared product time of XX.X% $X.X million million sales manufacture in extend first high segment million of saw higher

$XX.X shown precast shipment the with quarter prices delays particularly for the through has demand first to sales was some incentive compared quarter primarily recent compensation segment's moderated Park the which of X.X% or of at decreased expectations. Selling, precast expense. lower residential our decrease products, first general $X.X The have in of million average in expenses and or million coupled million XX.X% due pressures, in selling recent administrative XXXX margins below While signs strength, to to XX% market $XX.X of resulted sales.

and to $X.X general the the be XXXX, the to For our in year $XX administrative of quarter. the million. we of quarter year $X.X selling, amortization expenses was to expect approximately in million to full expense $XX XXXX Depreciation million consolidated compared continue million range first ago and of in

the our we Given increase XXXX. new to concrete expect currently and bidding pipeline, for amortization expected commissioning in the steel the larger and of business pressure planned depreciation modestly year pipe reinforced

increased XXXX daily of were offset decrease and to rates, which million the incentive $X.X of XXXX to borrowings. quarters interest noncash $X.X due the modestly $X average million first in the in compensation Our expense quarter for expenses XXXX. from higher than Interest both million more first

expense range For the of to and interest $X $X million million. full year we between expect XXXX,

or tax million, to Our tax an compared expense income the rate XX.X%. was effective first million XX.X% an income in quarter year tax prior quarter $X rate of income of $X effective resulting in

for nondeductible Our tax and XXXX the impacted quarters rate permanent XXXX by differences. first of were

our tax the of continue of XX%. range for the be to We to rate to XXXX within XX% expect full year

compared net first the of transition was condition. financial Net of to of in activities will XXXX XXXX it business of increased used I of shareholder-return first critical operating to generation $XX.X to noncash our changes strategies. offset Cash items. strategic as growth execution a adjusted key $XX.X by operating activities million primarily net Now cash flow in provided capital, cash working focus for by which due quarter the were in to is our our million partially in the quarter and remains income

quarter. levels expected working pressure higher first capital While due we usually the associated was shipments in XX steel the to expected needs coupled lower working to pressure production see slowing largely pressure in higher capital in for pipe the than job with to with pipe sites. half This working attributed the on was we the at needs, on of experienced seasonal March billings steel segment's traditional year, capital pressures business

maintained In in inventory in support the production first higher in expected addition, order levels through quarter to the we levels XXXX. growth

differences However, we year to reverse year. the And result, to timing $XX these expect and will between expect cash to million. we million $XX through flow continue balance free XXXX as the full continue a of range

Our capital $X.X first quarter million to prior expenditures quarter. the totaled in in compared of million the XXXX $X.X year

$XX to anticipate full continue million We to be of to our $XX for CapEx year the million total XXXX. in range

program trading $XX.XX of the share, are Since the of share we per repurchases all April highlighted, share $X.X Scott the executed million. a value inception price were XXbX-X As the of at first quarter in through of which total completed average million of $X repurchases XX, approximately in plan. XXXX an under

XX, borrowings achieved first $XX XXXX, best had in in borrowing the decade. $XX.X [ outstanding facility, pleased profitability credit are which on very quarter summary, company first quarter on the represent a the of performance March capacity over credit additional has ] with of line. In we million results, a leaving our we million As approximately our

slower begin capitalize over year. Thank Northwest of of continued safety conditions market will for first question-and-answer exemplary well to the Now shareholders the it session. the operator improving our employees you as all continued that through Company. I we execution our to confidence and support for to seasonally balance and are their through the we the quarter, their commitment to are on turn to well as now in Pipe positioned

Operator

from first [Operator coming is Instructions] Davidson. question D.A. from Our Brent Thielman

Brent Thielman

thinking little a -- just bit the differences for right quarters, lower we I pricing in the this rebound of in on were what of considering being than sounds quarter. few guess and case I margins precast. of of terms reasonable just kind a pricing first lower a mean or realized Aaron, in Scott little regions next a some what's like now? or

Scott Montross

Yes.

really in I free pipe thought it's the being steel at quarter. the it to was think you're when going the looking Brent, stronger flow, first than pressure ended up we cash significantly business be

starts a of current and know, it the of initially, So that current lot sheet. as you back ties assets come assets and roll to to those balance then

be So relatively stable we the expect revenues the pipe throughout steel to pressure year.

out that thing. going plateau, think this as a reverse that at up we're that now So I we're to see come we of

the other is time prepayments actually we're more thing steel The more and all payments. for getting MOH

ago, won receiving fact, In we we're where just of million project. a whole $XX excess big project not of for long in the prepayment well

this that's So now flow cash senior forward year. we I think program Plus, too. at to going cash in go flow the for as the to company a goal management everybody the has contribute

variable compensation. with So tied to --

watched. So that closely very is very, being

So...

Aaron Wilkins

margins. just heard Brent, make to the We retabu you think ar -- have precast said I may precast. cash free

Brent Thielman

that Well, of one cash. was was questions my free

and it margins me. to that think So you to precast about thinking the we because be kind But sounds was yes, going it's that. like I for no, you that get rebound better to ought referring answered of

Scott Montross

pretty margins was a transactional Actually, $XX a of -- excess bookings back the side, XXXX. Well, kind quarter really, quarter it second on very in business the gone in first thing really slow really it a in rebounded now and with the was up. to When and small We've is the those precast of business led as quarter quarter, Park were nonres the we booked $XX booked Park in XXXX. this really precast the fourth coming right? Park the the of pretty to should side. like that's quarter lead in which the million quarter. fourth on to through worth at of really So million led which shipping at first we've of first Part

continuing mostly coming we we The there price so other residential in a are And implemented from the to that's a are thing side. the since bookings precast, strong. that's March with And what demand seeing ultimately, increase seeing Geneva grow. still book because substantial residential order we're is just is in

and rebound a of both year. as and rest good So going we second we're quarter through revenue the in pretty confident into get the the see we're to pretty margins

Brent Thielman

SPP. Okay. And would you thought delays. would I Scott, have just coming seen back have to some

expected did performance it -- some had to delays because in I a I huge respect you but just with poor quarter? the the some does parts seem just delays see have weather there think country, been outsize there. why a the Was of pull-forward this to wondering it impact. I'm

Scott Montross

bid was work to starting changes first quarter quarter -- so so of say the the really starting work that We're we get But some much first it loaded see it's timing. wouldn't to much in facilities. the and in project at in won I pretty up we're anything had pull-forward.

the on as that really around we're revenue backlog $XX what I wasn't jockey little bit production can't I like million time. first schedules still by mean $XX million. produce was. having it the in can quarter, we $XX went the So so exactly million it worth of produced a things or we to these and remember a pull-forward. But up And

could won first do math you we how work So the kind much of quarter. on the in

facilities. up So of we're loaded pretty some at the

Brent Thielman

guess, standpoint? the you from just you're work is it bid with picking question pricing that, up, more maybe the to the last attached the climate Scott, more a all that? appealing that to Is attractive? And competitive I to

Scott Montross

Yes.

what high is I steel things about are. the $X.XX it's They're remaining standards. for right or fluctuating what at job do with one you're that stable margins everybody pretty build is is builds drive when for backlog pretty the by backlogs now, not can think prices historical around And that demand, -- of that dealing But steel a pricing, time. industry-wide, happens a there's the function the pipe of things steel same when thing. One demand a And industry-wide. like are prices hot-rolled $X.XX and band. obviously X pressure

pressure and these see to move you tend jobs, to less have you its bit, bidding So margin too. start on way up the a

happy all in are moving going this pretty direction the that now, margins that right we're about direction is So these and the at right point.

Operator

coming question Sidoti Julio from Company. Romero Next from & is

Julio Romero

SPP. that on staying point Maybe on

margins Just said impressive. was bit you timing. to And were response trying Brent's it question, in because little customer-driven project they strong understand as just to a maybe really

pull-forward. it You a said move around bit, to you levels production had wasn't but

quick maybe some is saying favorable you turn that at -- on took are -- So you like what... work

Scott Montross

was the a to short we higher on we be fuse bit this ultimately, gotten of in strong really first which IJA-funded on it. the good expect not a market. pretty year through the even quarter, levels have got seeing a bidding But we And production quarter. really, We strong year. And the first part got to little bidding we're it. And

steel that 'XX, pressure on probably in, us 'XX, is a 'XX, 'XX. For pipe, that's thing wait, out

have a in margins we get push you So that pipe years multiple strong the in the up at a toward start steel [ tend strong ] with when to coming situation pipe for a a row. row, pressure markets at pressure X steel expectation is us to where multiple And for that get begins market you point. a something

seeing other tons, of that with a out that higher So fixed right? is So costs in I more levels, better the that production thing of direction the situation heading we're right we're spreading way. now your margins kind you're and it's think because the over coming that forward. And demand

frankly, we right behind steel through decent term, believe, near on tailwind the the go longer of term margin pretty revenue IIJA. and this, pressure and as we've on we side the got because both quite now pipe So a

Julio Romero

good Got color. it. That's

level revenue something the kind for So that's you a exited at you of you that And you gives carried posted SPP strong I that April? of that like what are margins in into should XQ confidence production and guess, kind and in March that saying guys look XQ?

Scott Montross

up was steel pressure I still in It's produced by questions, first mean $XX when we quarter, million. on went I $XX we we backlog and carried mean -- the Yes. have I of asking the Brent really what already. backlog pipe said, million revenue worth in like

much first work with quarter could starting build with of kind to you do in the won on So we the how these things. math and up

when nonresidential steel that nonresidential the rest we pipe at pretty to of that's look of expect some be the are -- part is trends, and really has the thing year solid, and where the we So steel of the stuff pipe. been pressure nonresidential pressure strong. And on nonbuilding affects you the construction stuff on

rest of So we that solid as we're the pretty to going year. expect the be forward through

Julio Romero

think out quickly XQ? guys there What -- call you do that bidding that anything and there that? in you do think can Was drove you and so inflected strongly why volume

Scott Montross

No.

part that the part think some was intended we the first ended of was originally XXXX. I it 'XX in for had that that up stuff of

had seeing and some a forward. We're it come do. for So that's funding been years or because probably that's for of started stuff million just we that that the -- billion been more it's into I slow not $XX IIJA the projects would have like the $XX getting now of like bit little that. things some there's think level the set starting water-type coming place. And it's But aside

of And put through actually the in about $X.X out far, billion the out. it's year of been paid only XXXX, and so end

this I'm What Julio? done. way really answered stuff was So that, as forward. projects And lot part be question the of we buoy to wanted. those your going to think not help I other there's you if are I go a And the sure

Julio Romero

and trying bidding And up. in the get inflection caused onetime up a ended first volumes you that in strong and answered like feel quarter? Just I you backlog it. for nature to with what -- But anything think how this volumes

Scott Montross

in -- we [indiscernible] acquiring us after pipe in competitors is Ameron only first a happened pressure Who Yes. up in bit. quarter fill to steel And the XXXX. consolidation the little anybody major there's that X is that the remember, starting with

and point. So at the little backlogs than So the -- a on benefiting start -- it's we that can, nationwide the more anybody that have those work footprint, as and right? this we're to much else can from shift we're tendency is bit ones a take

Julio Romero

you. Got

active the for last you just speak to can are Just how me is side? M&A pipeline right on one the precast in now you

Scott Montross

see ] going get We're a are time, a the to we as things still to starting at. I period of And in improve. The we're interested to time. through that actually We're [ go starting and acquisition more we're looking all multiples the continue that, active to think the coming don't because on seeing a side some obviously, everybody where kind I frothy off period side, business we're And on seeing pretty precast especially strength been little of the know high that there's that is levels. general in Utah. it's

to at side, going can't is buying shareholders. the -- a and If And right that's seeing starting right? interested we at rest or it's couple And we strategy look it, do the with we're thing we're year, we're be this continuing more to growth think thing. we're adjust at practical it nothing share to that we we bit. we've little because we're do accessible So look through part to I out we're this a see is anything those buyback multiples going the as something get our think there's for buy to of And interesting what the M&A how some now, our going better going in of way that to looking back make Julio, I down that on to looking ultimately, road. But because at got get have now. shares

path we're we this And ]. to at because So ultimately, we do, down going M&A we the active very continue are we're with something until point. will side come that [ the up on

Operator

Northland Next is Ted question from from Securities. coming Jackson

Edward Jackson

Congrats super on quarter. a

Scott Montross

Ted, thanks.

Edward Jackson

steel been to be infer With million XXXX have quarterly pricing, rate basis pretty questions but with regards outlook regards to underpinning answered, $XX My expect just right all steel that and of view? am a and it's to go-forward stable relatively run a I things. couple much for your to the you on prices your view that

Scott Montross

this before you stable tell seen before from back I seen of -- But it steel stable periods stability. I and really this I So -- start And haven't year. little appears pull my I quickly steel, of go good were are a many rest year. at to XXXX, drop down think of for in they lot if right? -- kind things is guys pricing long job the will go far. a see through relatively But markets. their production that for I just little are those through point it's capacity or the the we're of you stable at on producers time. And think think think potentially drift background doing we off haven't you years, we in right it that to things expect pretty steel I'll be I some it now, too bit even as I of a that going don't at dropping as publications period of would maybe But saying bit up see either moving point. a a the go to managing and

I and good sheet. up may guys the steel us pipe goes It steel prices side. are a off tie term. little pressure rolls for and that short to through stabilize time. Because But to starts But ultimately, things. balance bit, the period capacity inching that cash of I think it's higher think go pull -- So on the and probably more we those off a as minute up dropping will out maybe this relatively stable production

Edward Jackson

What looks of kind it kind And own of been for the But for of at model your what -- per -- a penciling been quarter are the business? a when obviously, kind steel? $X,XXX your Midwest it's ton. look for forward under you about in $XXX. contract, in pricing you think you what the lately, of you guys first 'XX, I I like just of kind in was penciling it's closer are modeling, mean, of are terms in to average what ton remainder you as when

Scott Montross

now steel steel right? So penciled and maybe really -- buying, year some because -- prices less you're we've are that Well, got little you previous or freight talked realized $XXX bit you truth. $XXXs in of lower change that yes, And remember, if of the the we that don't probably deal the extras tell those greatest bought their from too we've something ] and quarter to area steel low the about, expect previous we're pricing. about much, first include that a whatever to in of for for the these in, probably are [ kind what -- costs than the that incoming in -- costs to

Edward Jackson

we fair? And quarter in one talked the then you second the and up the from margins it in the in to you last that think view robust with everything regards similar a came I it else last quarter. -- of look to Is and What of for SPP within when is be questions forward opportunity. first more the market I'm product -- terms -- about to there's hearing

lessening margins to appetite the it's take are all is more -- have you equal, is the actually there I'm an going we in that along, continue? had improve, greatest people have capacity, you more You to than you because other and you what quarter for individual for business being on know else saying? -- hence, can? the have kind this to the the margins first opportunity bids. I of So mean, Or see as market it goes competition

Scott Montross

That's a fair question.

that that upward with have something we makes as sense. to that but and won some that forward, of backlog think stable it's projects be the the we least that potential stuff view that I we've going and if with having the movement, at

Edward Jackson

you're I way all regards 'XX. pretty free growing, I was that surprised. and obviously, helpful. assume the to to first 'XX free -- little because a you That sense. that with understand the not of I $XX you is run 'XX was flow 'XX to you're committing actually the fair problem And went guidance, Is runway the color does capital. But of keep a to into really much your with And end very and quarter then cash thanks have: length then to a but rolling going decent and mean, rate million, say really for if lot projects for of it But cash flow water number kind the mentioned the run until kind levels given run of at business opportunity it mean revenue make did. going the I the $XX it's big continue for at why you stable flow going would to cash see if at increase where more that rate free drain run run could solid that your fair to maintain in capital and extended flow your see would improvement an from Do levels you saying put would we and that run and working million to working cash understand a what next year now in because this more an $XX with in -- million this terms I'm you've of say flat? if big running working capital this? Like changes, it you're and there very going going generation? relatively kind for X your that forward just cash period flow be capital you're just I'm would or of we rate that of the very free

Aaron Wilkins

those -- the working this we with steel in a would balances to production and didn't good some customers, the customers. We said, kind our essentially to job it in payments the we got coil perfect and Scott year see way Ted, Had come. the production [indiscernible] for right? So load pressure going go levels that of with of the on our are and balances quarter. have that doing on little for works. MOH inventories, of out [indiscernible] bit Yes. ago, get we levels working storm of prepayments -- we're gun our pipe. be a up caught good getting Like a just really, kind a that good of

those past some in of kind us front timing the of still seen So for good XXXX. we've are that of in things just

back the of revenue I kind like blip that. weird think, as run rate of foresee would be I go that kind we really kind that the would kind potential of just levels, just that be SPP. that of -- of in other of though, normalization that will in don't really has really to But steel is think steady path it, derail kind could shift. like some thing off prices. thing, the kind would million steer it or that a only and you anything That the were really The that that thing we $XX if happening for of say,

Edward Jackson

when does for encouraging. I modest is last a biggest market about with popping and I that the beyond, of all I it strong I kind regards obviously. else can something super decline bookings I quarter with kind many with business why can understand you you the in business. business in fairly not mean, talk of it's second your of -- little But prefaced business, that's And see I question is talking steel we a it that that's like is lot the in about you've itself. the more to talking -- -- a in of precast all are here? in part what quarter? second like had equal periods. we that what you mean, because way, That And improvement $XX it pop? of are -- million steel being I my for mean, Or in Well, mean, all that north all, the that? than congratulations on was by mean, But

So it's by that, the see way. to really nice

Scott Montross

Yes.

kind think second you're is where quarter I saying. the of

at look the of we for are in you precast the second quarter, were last the third and If year. time year, quarters second big where

much aren't for slow, they winter. during us, of in as tend And is a one the work businesses quarter Utah, of winter, get is of the the Geneva and always in generally and to okay? lot infrastructure obviously, out doing snow the First in contractors precast the

So the to to also. believe quarter, rebound in quarter second the did that similar second before year like what in and we the it's probably going we year last

on the the a path. expect first for of for expect a be it's after similar of And we again, pretty free rest I pretty quarter So to year we good. -- cash, think kind slow

Edward Jackson

great you're market Well, Congratulations really performance. Okay. everything. of And like was quarter. mean, performance, looks it it period for on I a extended an up financial teed

Operator

[Operator coming Henry Instructions] Wright, is Trust. David next Investment from question Our

David Wright

the the during on Congratulations. Great stock job quarter. buyback

a flex Scott, and great price. tons really and lot average I for, that's a use to loaded of a a XX% up having getting kind and business SPP in think increase your work How utilization. all? and the at from past, you've kind point produced to years of know labor of you you highlighted down of capital does been thing I here, great that's you do force were do in view? about talking How a QX. quarters lower have in the up capacity ramp staffing --

Scott Montross

pipe do flex down steel will something When may when a or We XX plants. something X pipe the we low, with X, adding not production here regularly like get similar. like in or changes We people we we ones a whole pretty Generally, pressure could a certain at or shed -- much pressure take ready the of was market probably issue and sometimes, on I for kind to the up the we time staffed potentially we're the crew. levels that. X, of that the But back, a we're it's the year. foreshadowing, the that. be at whole shed coming up and all. already, at adding right We shift XX to situation. But have that kind of and now, -- and side that position staffed it guys an the I shouldn't going we're bit think we're steel rest way was because a little of the guess be for had of kind a in of where be to of we've this It on bidding

do that, deal. So we big a not regularly

David Wright

operated quarter? capacity in in the facilities kind of of sense at port Any the first aggregate

Scott Montross

what pipe, say pressure XX%, a about XX%. as it Yes. for I practical In capacity was would steel aggregate,

David Wright

Okay.

you room. still some So have

Scott Montross

yes. Oh,

Operator

our We session. to I'd of Scott reached for the closing comments. any end floor to turn like the back question-and-answer over further

Scott Montross

the think pressure we've continue significantly a today. And is XXXX is side. we us next most in joining interesting this kind that is And or -- positioned to bidding pressure important going years, the produce just well expect a which situation business thing. But longer XXXX a for wanted X everybody, really increases call the to in term, those steel to environment near I improved few pipe pipe. with environment term, which comments. thanks, absorb this And of we're leave to Again, Obviously, and seen on expect create to really the thing for continue that them. we X should pretty so continue think I or steel

side, -- did have we macroeconomic rates. precast anticipate to pressures the seeing elevated the even XXXX, from On 'XX the that we're stronger 'XX with we're interest than going we the a

we're the business the taken it's and where pressure consolidation the different we're into biggest ultimately, precast in to, a where -- with we've in And happened precast, company. that soft seen one still now. We call, entry company. what situation So a quarter I first the that we done had quarter the that's or the has in the this created think at for resiliency of last said and it's level in seen business and quarter we've biggest ever in and first quarters relatively of this steel the us ever a seeing came pipe

it So would that been have several been way. wouldn't if this ago, years have

important think remember. an to that's I So thing

you again for again, and in -- look today. and your So speaking everybody, time second call. attention with to forward August We thanks, on quarter our

very So much. thank you

Operator

today's conclude teleconference does That you. webcast. and Thank

a We lines participation at your your you day. wonderful disconnect today time, and thank have may You this for

Northwest Pipe (NWPX) 2 May 242024 Q1 Earnings call transcript