Northwest Pipe Company (NASDAQ: NWPX) today reported sales of $81.4
million and per share earnings of $0.28 for the first quarter ended
March 31, 2009. Net income for the quarter was $2.6 million. In the
same quarter of 2008, sales were $94.0 million and net income was
$5.0 million. Earnings per share in the first quarter of 2008 were
$0.54.
Water Transmission Results
Revenues for the Water Transmission Group were $58.9 million in
the first quarter of 2009 compared to $63.9 million in 2008. First
quarter gross profit in 2009 was $11.3 million, or 19.2% of sales,
compared to $14.5 million, or 22.6% of sales in 2008.
"Water Transmission revenues were generally as expected," said
Brian W. Dunham, President and Chief Executive Officer of the
Company. "The quarter was adversely impacted by downtime due to
installation of a new mill and weather-related delays at our
plants."
Tubular Products Results
The Tubular Products Group sales were $22.5 million in the first
quarter of 2009, compared to $30.1 million in 2008. Gross profit
for the quarter was $1.4 million, or 6.4% of sales, compared to
$3.3 million, or 11.1% of sales for 2008.
"The decline in Tubular Products revenues was also expected,"
said Dunham. "The combination of falling demand in our difficult
economy and rapidly declining selling prices led to both lower
revenues and lower gross profits."
Outlook
"Looking ahead, we expect another challenging quarter before
seeing improvement in the second half of the year," continued
Dunham. "Our backlog grew to $205 million during the quarter and,
while this is clearly a positive, we have a greater than usual
amount of backlog that is not ready for current production. The
backlog is also uneven across our plants. Some have substantial
backlogs and others are relatively light. Accordingly, we expect
our Water Transmission production will be slow in the second
quarter, similar to the first quarter. We expect another good
bookings quarter which should lead to a higher backlog at June 30th
and stronger production schedules over the last half of the
year."
"The Tubular Products business will continue to be challenged
until we see some recovery in the economy in general and in natural
gas exploration in particular," stated Dunham. "At this time, we do
not expect to see these market improvements until at least the
second half of the year."
"Our Northwest Pipe Asia subsidiary is off to a good start,"
said Dunham. "They delivered and installed a mill for us in our
California facility and are finalizing the installation of another
mill for a customer in Asia. We continue to expect positive but
modest results from this group as well as insights into
international projects."
Northwest Pipe is making progress on its new Bossier City,
Louisiana facility. "Equipment installation is continuing at this
site," said Dunham. "We are a little behind schedule but expect to
be ready to produce pipe in August. Obviously, market conditions
today do not support full production from this new operation but we
believe that the broad mix of products -- OCTG, line pipe, and
standard pipe -- plus some economic recovery, will enable a phased
start up at that time."
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 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, and other risks described from time to time 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 2009 earnings conference call will
be held on Tuesday, April 28, 2009, 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
866-434-5270 with the password 6301 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
----------------------------
2009 2008
------------- -------------
Net Sales:
Water Transmission $ 58,855 $ 63,869
Tubular Products 22,548 30,134
------------- -------------
Net Sales 81,403 94,003
Cost of Sales:
Water Transmission 47,563 49,416
Tubular Products 21,103 26,802
------------- -------------
Total Cost of Sales 68,666 76,218
Gross Profit:
Water Transmission 11,292 14,453
Tubular Products 1,445 3,332
------------- -------------
Gross Profit 12,737 17,785
Selling, General, and Administrative 7,245 7,961
------------- -------------
Operating Income 5,492 9,824
Interest Expense, Net 1,226 1,806
------------- -------------
Income Before Income Taxes 4,266 8,018
Provision for Income Taxes 1,636 2,971
------------- -------------
Net Income $ 2,630 $ 5,047
============= =============
Basic Earnings per Share $ 0.29 $ 0.56
============= =============
Diluted Earnings per Share $ 0.28 $ 0.54
============= =============
Shares Used in Per Share Calculation:
Basic 9,219 9,087
============= =============
Diluted 9,353 9,307
============= =============
NORTHWEST PIPE COMPANY
CONDENSED SELECTED BALANCE SHEET AND OTHER DATA (Unaudited)
(Dollar amounts in thousands)
March 31 December 31
2009 2008
------------- -------------
Assets:
Cash and Cash Equivalents $ 104 $ 90
Trade and Other Receivables, Net 57,545 75,923
Costs and Estimated Earnings in Excess
of Billings on Uncompleted Contracts 98,187 106,234
Inventories 75,411 87,348
Other Current Assets 13,025 12,436
------------- -------------
Total Current Assets 244,272 282,031
Property and Equipment, Net 198,195 194,035
Other Assets 33,924 33,368
------------- -------------
Total Assets $ 476,391 $ 509,434
============= =============
Liabilities:
Current Maturities of Long-Term Debt $ 6,555 $ 6,543
Accounts Payable 26,127 34,109
Accrued Liabilities 10,311 10,111
Billings in Excess of Cost and Estimated
Earnings on Uncompleted Contracts 3,488 8,020
------------- -------------
Total Current Liabilities 46,481 58,783
Long-Term Note Payable to Financial
Institution 58,894 82,065
Other Long-Term Debt, Less Current Maturities 29,377 32,379
Other Liabilities 46,894 44,646
------------- -------------
Total Liabilities 181,646 217,873
Stockholders' Equity 294,745 291,561
------------- -------------
Total Liabilities and Stockholders' Equity $ 476,391 $ 509,434
============= =============
CONTACT: Brian Dunham Chief Executive Officer 360-397-6300
Stephanie Welty Chief Financial Officer 360-397-6323
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