Yahoo Finance

• Fourth Quarter Revenue: Increased 24% year over year to $58 million.

• Rental Revenue: Increased 28% year over year, reaching a new single quarter record.

• Gross Margin: Increased by nearly 500 basis points to 39.2%.

• Adjusted EBITDA: Improved to $17.1 million, a 35% increase versus the prior year.

• Full Year Revenue: Increased 5% year over year.

• Product Sales: Increased 24% year over year to a record $72 million.

• Service Revenues: Declined 15% year over year.

• SG&A Expenses: $10.7 million in the fourth quarter, 18.6% of revenues.

• Income Tax Expense: $2.9 million in the fourth quarter, effective tax rate of 26%.

• Adjusted EPS: $0.08 per diluted share in the fourth quarter.

• Operating Cash Flow: Used $4 million in the fourth quarter.

• Net CapEx: $12 million in the fourth quarter, including $10 million for matting fleet expansion.

• Total Cash: Ended the year with $18 million.

• Total Debt: $8 million, resulting in a net cash position of $10 million.

• 2025 Revenue Outlook: Anticipated total revenues in the $230 to $250 million range.

• 2025 Adjusted EBITDA Outlook: Expected in the $60 to $70 million range.

• Warning! GuruFocus has detected 3 Warning Sign with NPKI.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Fourth quarter revenue increased by 24% year over year, reaching $58 million, driven by broad-based growth across all revenue streams.

• Rental revenues set a new single-quarter record with a 28% year-over-year increase, supported by demand in utilities, transmission, and critical infrastructures.

• Gross margin improved by nearly 500 basis points to 39.2%, the strongest level in two years.

• Adjusted EBITDA increased by 35% year over year in the fourth quarter, doubling sequentially.

• Product sales grew by 24% year over year, illustrating the success of the strategy to displace traditional timber matting with the Dura-based composite solution.

Negative Points

• Service revenues declined by 15% year over year, impacted by moving away from service-intensive projects that did not meet return thresholds.

• The company faced FX losses of $700,000 in the fourth quarter, primarily due to US dollar to British pound currency fluctuations.

• Income tax expense was $2.9 million in the fourth quarter, with an effective tax rate of 26%.

• Operating cash flow used $4 million in the fourth quarter, including $20 million of cash used to fund revenue-driven growth in receivables.

• The company absorbed certain fixed infrastructure costs historically carried by fluids, impacting SG&A expenses.