Northwest Pipe Company (NASDAQ: NWPX)
Highlights:
- Net sales were $116.7 million, down 10.9% from
second quarter 2012
- Operating income was $9.4 million, up
34.6%
- Net income was $5.6 million, or $0.59 per
diluted share, up 54.3%
Northwest Pipe Company (NASDAQ: NWPX) today announced its second
quarter 2013 financial results. The Company will broadcast its
second quarter 2013 earnings conference call on Tuesday, August 6,
2013, at 8:00 am PDT.
Second Quarter 2013 Results
Net sales for the quarter ended June 30, 2013 decreased 10.9% to
$116.7 million compared to $131.0 million in the quarter ended June
30, 2012. Gross profit was $15.7 million (13.4% of net sales) in
the second quarter of 2013, an increase from $13.6 million (10.4%
of net sales) in the second quarter of 2012. Operating income was
$9.4 million in the second quarter of 2013, an increase from $7.0
million in the second quarter of 2012. Net income for the second
quarter of 2013 was $5.6 million or $0.59 per diluted share
compared to $3.6 million or $0.38 per diluted share for the second
quarter of 2012.
Water Transmission net sales decreased by 1.5% to $58.1 million
in the second quarter of 2013 from $59.1 million in the second
quarter of 2012. The decrease in net sales was due to a 34%
decrease in tons produced, offset by a 49% increase in average
selling price per ton. Water Transmission gross profit increased to
$12.1 million (20.9% of segment net sales) in the second quarter of
2013 from $8.1 million (13.8% of segment net sales) in the same
period of 2012.
Tubular Products net sales decreased 18.6% to $58.6 million in
the second quarter of 2013 from $72.0 million in the second quarter
of 2012, driven by a 13% decrease in average selling price per ton
and a 6% decrease in tons sold from 56,500 tons in the second
quarter of 2012 to 52,900 tons in the second quarter of 2013.
Tubular Products gross profit decreased by 34.7% to $3.5 million
(6.0% of segment net sales) in the second quarter of 2013 from $5.4
million (7.5% of segment net sales) in the second quarter of
2012.
As of June 30, 2013, the backlog of orders in the Water
Transmission segment was approximately $115 million compared to a
backlog of orders of $245 million as of June 30, 2012. The backlog
contains confirmed orders, including the balance of projects in
process, and projects for which the Company has been notified that
it is the successful bidder even though a binding agreement has not
been executed.
Outlook
"Based on current market conditions, we believe the third
quarter will be our weakest quarter in 2013. The Water Transmission
segment will have significantly lower net sales and gross profit as
indicated by the relatively low backlog at the end of the second
quarter," said Scott Montross, President and Chief Executive
Officer of the Company. "While a trade case has been filed against
nine nations importing oil country tubular goods into the United
States, we have not yet seen a significant improvement in sales
prices or volumes. In Tubular Products we expect to see gross
margin in the low positive single-digits."
Conference Call
The Company will hold its second quarter 2013 earnings
conference call on Tuesday, August 6, 2013 at 8:00 am PDT. The live
call can be accessed by dialing 1-888-810-4934 passcode NWPIPE. For
those unable to attend the live call, a replay will be available
approximately one hour after the event and will remain available
until Friday, August 30, 2013 by dialing 1-800-568-0918 passcode
6301.
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 products including energy,
construction, agriculture and industrial systems. The Company is
headquartered in Vancouver, Washington and has nine manufacturing
facilities across the United States and Mexico.
Forward-Looking Statements
Statements in this press release by Scott Montross are
"forward-looking" statements within the meaning of the Securities
Litigation Reform Act of 1995 and Section 21E of the Exchange Act
that are based on current expectations, estimates and projections
about our business, management's beliefs, and assumptions made by
management. These statements are not guarantees of future
performance and involve risks and uncertainties that are difficult
to predict. Therefore, actual outcomes and results may differ
materially from what is expressed or forecasted in such
forward-looking statements as a result of a variety of important
factors. While it is impossible to identify all such factors, those
that could cause actual results to differ materially from those
estimated by us include changes in demand and market prices for our
products, product mix, bidding activity, the timing of customer
orders and deliveries, production schedules, the price and
availability of raw materials, excess or shortage of production
capacity, international trade policy and regulations and other
risks discussed in our Annual Report on Form 10-K for the year
ended December 31, 2012 and from time to time in our other
Securities and Exchange Commission filings and reports. Such
forward-looking statements speak only as of the date on which they
are made and we do not undertake any obligation to update any
forward-looking statement to reflect events or circumstances after
the date of this release. If we do update or correct one or more
forward-looking statements, investors and others should not
conclude that we will make additional updates or corrections with
respect thereto or with respect to other forward-looking
statements.
NORTHWEST PIPE COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Dollar and share amounts in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
2013 2012 2013 2012
--------- --------- --------- ---------
Net sales:
Water Transmission $ 58,148 $ 59,050 $ 136,761 $ 117,481
Tubular Products 58,590 71,991 120,574 155,735
--------- --------- --------- ---------
Net sales 116,738 131,041 257,335 273,216
Cost of sales:
Water Transmission 46,023 50,901 104,766 99,633
Tubular Products 55,047 66,563 115,697 143,506
--------- --------- --------- ---------
Total cost of sales 101,070 117,464 220,463 243,139
Gross profit:
Water Transmission 12,125 8,149 31,995 17,848
Tubular Products 3,543 5,428 4,877 12,229
--------- --------- --------- ---------
Total gross profit 15,668 13,577 36,872 30,077
Selling, general, and
administrative expense 6,288 6,607 12,672 13,928
--------- --------- --------- ---------
Operating income (loss):
Water Transmission 10,499 6,130 28,532 14,154
Tubular Products 2,885 4,651 3,551 10,847
Corporate (4,004) (3,811) (7,883) (8,852)
--------- --------- --------- ---------
Operating income 9,380 6,970 24,200 16,149
Other expense (4) (34) 37 2
Interest income (60) (46) (243) (87)
Interest expense 956 1,526 2,005 3,166
--------- --------- --------- ---------
Income before income taxes 8,488 5,524 22,401 13,068
Provision for income taxes 2,927 1,920 7,334 4,730
--------- --------- --------- ---------
Net income $ 5,561 $ 3,604 $ 15,067 $ 8,338
========= ========= ========= =========
Basic earnings per share $ 0.59 $ 0.38 $ 1.60 $ 0.89
========= ========= ========= =========
Diluted earnings per share $ 0.59 $ 0.38 $ 1.59 $ 0.88
========= ========= ========= =========
Shares used in per share
calculations:
Basic 9,443 9,374 9,440 9,372
========= ========= ========= =========
Diluted 9,481 9,433 9,474 9,423
========= ========= ========= =========
NORTHWEST PIPE COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollar amounts in thousands)
June 30, December 31,
2013 2012
------------ ------------
Assets:
Cash and cash equivalents $ 194 $ 46
Trade and other receivables, net 57,946 41,498
Costs and estimated earnings in excess of
billings on uncompleted contracts 65,687 73,314
Inventories 115,845 113,545
Other current assets 8,113 7,735
------------ ------------
Total current assets 247,785 236,138
Property and equipment, net 162,191 152,545
Other assets 35,345 33,739
------------ ------------
Total assets $ 445,321 $ 422,422
============ ============
Liabilities:
Current maturities of long-term debt $ 10,372 $ 9,009
Accounts payable 29,528 21,042
Accrued liabilities 23,502 32,217
Billings in excess of cost and estimated
earnings on uncompleted contracts 3,635 6,478
------------ ------------
Total current liabilities 67,037 68,746
Note payable to financial institution 60,750 47,533
Other long-term debt, less current maturities 8,868 15,536
Other long-term liabilities 33,321 31,175
------------ ------------
Total liabilities 169,976 162,990
Stockholders' equity 275,345 259,432
------------ ------------
Total liabilities and stockholders' equity $ 445,321 $ 422,422
============ ============
CONTACT: Robin Gantt Chief Financial Officer 360-397-6250
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