Northwest Pipe Company (NWPX) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $0.73 million, or $ 0.08 a share in the quarter, against a net loss of $1.52 million, or $0.16 a share in the last year period.
Revenue during the quarter dropped 21.49 percent to $41.09 million from $52.34 million in the previous year period. Gross margin for the quarter period stood at positive 5.17 percent as compared to a negative 4.80 percent for the previous year period. Operating margin for the quarter stood at negative 5.02 percent as compared to a negative 13.92 percent for the previous year period.
Operating loss for the quarter was $2.06 million, compared with an operating loss of $7.28 million in the previous year period.
"We continue to see upward momentum in demand and selling prices in our Water Transmission business and improving conditions are beginning to show up in both our revenue and profit," said Scott Montross President and Chief Executive Officer of the Company. "Fourth quarter revenues and margins are expected to continue to reflect those improved conditions. The closure and sale of our Denver real property along with the associated reduction in production capacity will help in balancing market supply/demand and continue to stabilize the market."
Working capital declines
Northwest Pipe Company has witnessed a decline in the working capital over the last year. It stood at $86.70 million as at Sep. 30, 2016, down 22.30 percent or $24.88 million from $111.57 million on Sep. 30, 2015. Current ratio was at 4.98 as on Sep. 30, 2016, down from 5.12 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 72 days for the quarter from 137 days for the last year period. Days sales outstanding went down to 70 days for the quarter compared with 74 days for the same period last year.
Days inventory outstanding has decreased to 24 days for the quarter compared with 84 days for the previous year period. At the same time, days payable outstanding went up to 23 days for the quarter from 21 for the same period last year.
Debt comes down significantly
Northwest Pipe Company has recorded a decline in total debt over the last one year. It stood at $1.02 million as on Sep. 30, 2016, down 85 percent or $5.81 million from $6.84 million on Sep. 30, 2015. Total debt was 0.43 percent of total assets as on Sep. 30, 2016, compared with 2.41 percent on Sep. 30, 2015. Debt to equity ratio was at 0.01 as on Sep. 30, 2016, down from 0.03 as on Sep. 30, 2015.
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