VANCOUVER, WA today reported results for the first quarter of
2008. Sales for the quarter ended March 31, 2008 were $94.0 million
compared to $90.7 million in the first quarter of 2007. Net income
for the first quarter was $5.0 million, or $0.54 per diluted share,
compared to $4.5 million, or $0.49 per diluted share, in the first
quarter of 2007.
Water Transmission
In the first quarter of 2008, sales were $63.9 million for the
Water Transmission Group, compared to sales of $67.8 million in the
first quarter of 2007. Gross profit in the first quarter of 2008
was $14.5 million for this Group, or 22.6% of sales compared to
gross profit of $13.8 million, or 20.4% of sales, in the first
quarter of 2007. "Overall volume was a little lower than we
expected, while margins were a little stronger, resulting in a
solid performance," said Brian W. Dunham, president and chief
executive officer of the Company. The results for Water
Transmission include the results of operations for the Monterrey,
Mexico plant which were previously reported separately.
Tubular Products
The Tubular Products Group recorded sales of $30.1 million and
gross profit of $3.3 million, or 11.1% of sales, in the first
quarter of 2008, compared to sales of $23.0 million and gross
profit of $2.3 million, or 10.1% of sales, in the first quarter of
2007. "We are seeing significant increases in our sales of energy
products and continuing growth in pipe for fire protection and
agricultural applications," said Mr. Dunham. "We saw steady
improvement in gross margins throughout the quarter and expect that
trend to continue for the next few months."
Outlook
The Company reported a strong backlog of $195 million as of
March 31, 2008. "We expect Water Transmission volume to strengthen
throughout the year beginning with a small improvement in the
second quarter," said Dunham. "We expect strong Water Transmission
bookings in the second quarter which should increase the backlog
and help drive significant revenue growth in the second half of
2008."
The Tubular Products Group is expected to generate somewhat
higher volumes in the next two quarters, with strong demand coming
from energy, fire protection and agricultural markets. Margins may
also increase if current trends continue.
"Steel prices and lead times continue to increase," said Mr.
Dunham. "In Tubular Products, we have been generally successful in
reflecting cost increases in our prices. We stay close to the
trends in steel costs and lead times in both Groups and we continue
to manage our purchases to ensure adequate supply at the best
possible prices."
About Northwest Pipe Company
Northwest Pipe Company manufactures welded steel pipe and other
products in two business groups. Its Water Transmission Group is
the leading supplier of large diameter, high-pressure steel pipe
products that are used primarily for water infrastructure in North
America. Its Tubular Products Group manufactures smaller diameter
steel pipe for a wide range of applications including construction,
agricultural, energy, traffic and other commercial and industrial
uses. The Company is headquartered in Vancouver, Washington and has
ten manufacturing facilities across the United States and
Mexico.
Forward-Looking Statements
Statements in this press release by Brian Dunham and statements
in the "Outlook" section of this press release are
"forward-looking" statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Words such as should,
expects, anticipates, intends, plans, believes, sees, estimates and
variations of such words and similar expressions are intended to
identify such forward-looking statements. Such statements reflect
management's current views and estimates of future economic and
market circumstances, industry conditions, Company performance and
financial results. Actual results could vary materially from the
description contained herein due to many factors, including project
delays, changes in bidding activity, market demand, operating
efficiencies, availability and price of raw materials, availability
and market acceptance of new products, product pricing, competitive
environment. These and other risks are described in the Company's
reports to the Securities and Exchange Commission. The
forward-looking statements we make today speak only as of today and
we do not undertake any obligation to update any such statements to
reflect events or circumstances occurring after today.
Conference Call
The Company's first quarter 2008 earnings conference call will
be held on Wednesday, April 23, 2008, at 8:00 a.m. PDT via live
internet webcast. The conference broadcast can be accessed at the
"Investor Relations" section of the Company's website located at
http://www.nwpipe.com. For those unable to listen to the live
broadcast, a replay will be available at the Investor Relations
section of the Company's website (www.nwpipe.com) or by dialing
800-934-9421 approximately one hour after the event.
NORTHWEST PIPE COMPANY
CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
(Dollar and share amounts in thousands, except per share amounts)
---------------------
Three Months Ended
March 31
---------------------
2008 2007
--------- ---------
Net Sales:
Water Transmission $ 63,869 $ 67,754
Tubular Products 30,134 22,982
--------- ---------
Net Sales 94,003 90,736
Cost of Sales:
Water Transmission 49,416 53,960
Tubular Products 26,802 20,672
--------- ---------
Total Cost of Sales 76,218 74,632
Gross Profit:
Water Transmission 14,453 13,794
Tubular Products 3,332 2,310
--------- ---------
Gross Profit 17,785 16,104
Selling, General, and Administrative 7,961 7,302
--------- ---------
Operating Income 9,824 8,802
Interest Expense, Net 1,806 1,604
--------- ---------
Income Before Income Taxes 8,018 7,198
Provision for Income Taxes 2,971 2,664
--------- ---------
Net Income $ 5,047 $ 4,534
========= =========
Basic Earnings per Share $ 0.56 $ 0.51
========= =========
Diluted Earnings per Share $ 0.54 $ 0.49
========= =========
Shares Used in Per Share Calculation:
Basic 9,087 8,924
========= =========
Diluted 9,307 9,213
========= =========
NORTHWEST PIPE COMPANY
CONDENSED SELECTED BALANCE SHEET AND OTHER DATA (Unaudited)
(Dollar amounts in thousands)
March 31, December 31,
2008 2007
------------ ------------
Assets:
Cash and Cash Equivalents $ 342 $ 234
Trade and Other Receivables, Net 54,498 49,300
Costs and Estimated Earnings in Excess
of Billings on Uncompleted Contracts 120,967 121,058
Inventories 59,458 62,805
Other Current Assets 9,797 10,487
------------ ------------
Total Current Assets 245,062 243,884
Property and Equipment, Net 184,207 179,977
Other Assets 29,680 29,702
------------ ------------
Total Assets $ 458,949 $ 453,563
============ ============
Liabilities:
Current Maturities of Long-Term Debt $ 6,506 $ 5,851
Accounts Payable 31,151 41,684
Accrued Liabilities 13,843 12,311
Billings in Excess of Costs and Estimated
Earnings on Uncompleted Contracts 1,372 2,514
------------ ------------
Total Current Liabilities 52,872 62,360
Long-Term Note Payable to Financial
Institution 65,222 54,415
Other Long-Term Debt, Less Current Maturities 35,933 38,921
Other Liabilities 41,709 41,585
------------ ------------
Total Liabilities 195,736 197,281
Stockholders' Equity 263,213 256,282
------------ ------------
Total Liabilities and Stockholders' Equity $ 458,949 $ 453,563
============ ============
CONTACTS: Brian Dunham Chief Executive Officer 360-397-6300
Stephanie Welty Chief Financial Officer 360-397-6323
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