Northwest Pipe Company (NWPX) saw its loss narrow to $3.87 million, or $0.40 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $9.58 million, or $1 a share.
Revenue during the quarter dropped 12.56 percent to $29.67 million from $33.93 million in the previous year period. Gross margin for the quarter period stood at positive 2.63 percent as compared to a negative 16.03 percent for the previous year period. Operating margin for the quarter stood at negative 13.28 percent as compared to a negative 29.58 percent for the previous year period.
Operating loss for the quarter was $3.94 million, compared with an operating loss of $10.04 million in the previous year period.
"The bidding environment in most of our regional markets has improved. This, along with our focus on margin over volume, is driving a 17% increase in backlog and stronger margins," said Scott Montross, president and chief executive officer of the Company. "We anticipate that the second quarter will be slightly better in both revenue and gross profit but we continue to expect that market improvement will be slower than we have seen historically due to an overpopulated supply base. However, the infrastructure and Buy America focus of the new Administration should result in additional near and long term opportunities."
Working capital increases
Northwest Pipe Co has recorded an increase in the working capital over the last year. It stood at $91.22 million as at Mar. 31, 2017, up 8.99 percent or $7.53 million from $83.69 million on Mar. 31, 2016. Current ratio was at 8.60 as on Mar. 31, 2017, up from 4.58 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 83 days for the quarter from 129 days for the last year period. Days sales outstanding were almost stable at 70 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 26 days for the quarter compared with 68 days for the previous year period. At the same time, days payable outstanding went up to 13 days for the quarter from 10 for the same period last year.
Debt comes down
Northwest Pipe Co has recorded a decline in total debt over the last one year. It stood at $0.83 million as on Mar. 31, 2017, down 19.94 percent or $0.21 million from $1.03 million on Mar. 31, 2016. Total debt was 0.36 percent of total assets as on Mar. 31, 2017, compared with 0.41 percent on Mar. 31, 2016.
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