Northwest Pipe Reports Third Quarter 2013 Results and Announces Conference Call
November 04 2013 - 5:41PM
Marketwired
Northwest Pipe Reports Third Quarter 2013 Results and Announces
Conference Call
VANCOUVER, WA--(Marketwired - Nov 4, 2013) - Northwest Pipe
Company (NASDAQ: NWPX) today announced its third quarter 2013
financial results. The Company will broadcast its third quarter
2013 earnings conference call on Tuesday, November 5, 2013, at 8:00
am PST.
Third Quarter 2013 Results
Net sales for the quarter ended September 30, 2013 decreased
10.5% to $103.0 million compared to $115.1 million in the quarter
ended September 30, 2012. Gross profit was $8.8 million (8.6% of
net sales) in the third quarter of 2013, a decrease from $11.6
million (10.1% of net sales) in the third quarter of 2012.
Operating income was $2.8 million in the third quarter of 2013, a
decrease from $4.0 million in the third quarter of 2012. Net income
for the third quarter of 2013 was $1.0 million or $0.11 per diluted
share compared to $3.4 million or $0.36 per diluted share for the
third quarter of 2012.
Water Transmission net sales decreased by 26.2% to $46.8 million
in the third quarter of 2013 from $63.5 million in the third
quarter of 2012. The decrease in net sales was due to a 60%
decrease in tons produced, offset by an increase in downstream
fabrication services on pipe produced in prior periods. Water
Transmission gross profit decreased to $7.9 million (16.9% of
segment net sales) in the third quarter of 2013 from $9.7 million
(15.2% of segment net sales) in the same period of 2012.
Tubular Products net sales increased 8.9% to $56.2 million in
the third quarter of 2013 from $51.6 million in the third quarter
of 2012, driven by a 20% increase in tons sold from 42,900 tons in
the third quarter of 2012 to 51,400 tons in the third quarter of
2013, partially offset by a 9% decrease in average selling price
per ton. Tubular Products gross profit decreased by 54.1% to $0.9
million (1.6% of segment net sales) in the third quarter of 2013
from $1.9 million (3.7% of segment net sales) in the third quarter
of 2012.
As of September 30, 2013, the backlog of orders in the Water
Transmission segment was approximately $108 million compared to a
backlog of orders of $241 million as of September 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
"We believe the fourth quarter may be even more challenging than
the third quarter. The Water Transmission segment is expected to
have a similar amount of net sales, with expected gross margin in
the mid-teens," said Scott Montross, President and Chief Executive
Officer of the Company. "We have not yet seen any significant
improvement in our oil country tubular goods business, therefore we
expect to see gross margin in the low positive single-digits."
As previously announced, the Company is in the process of
exploring strategic alternatives for its oil country tubular goods
business, which could include potential acquisitions, divestitures
and joint-ventures. No decision has been made at this time to enter
into any transaction and there can be no assurance that the
exploration of alternatives will result in a transaction or as to
the terms, conditions or timetable of any such transaction. It is
the Company's policy not to comment on any specific discussions or
any potential corporate transaction unless and until it enters into
a definitive agreement with respect to such transaction.
Conference Call
The Company will hold its third quarter 2013 earnings conference
call on Tuesday, November 5, 2013 at 8:00 am PST. 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, November 29, 2013 by dialing 1-203-369-1021 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.
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NORTHWEST PIPE COMPANY |
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) |
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(Dollar and share amounts in thousands, except per
share amounts) |
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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|
|
2013 |
|
|
2012 |
|
|
2013 |
|
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2012 |
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Net sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Water Transmission |
|
$ |
46,835 |
|
|
$ |
63,487 |
|
|
$ |
183,596 |
|
|
$ |
180,968 |
|
|
Tubular Products |
|
|
56,187 |
|
|
|
51,612 |
|
|
|
176,761 |
|
|
|
207,347 |
|
|
|
Net
sales |
|
|
103,022 |
|
|
|
115,099 |
|
|
|
360,357 |
|
|
|
388,315 |
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Cost of sales: |
|
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|
|
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Water Transmission |
|
|
38,903 |
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|
53,806 |
|
|
|
143,669 |
|
|
|
153,439 |
|
|
Tubular Products |
|
|
55,307 |
|
|
|
49,693 |
|
|
|
171,004 |
|
|
|
193,199 |
|
|
|
Total
cost of sales |
|
|
94,210 |
|
|
|
103,499 |
|
|
|
314,673 |
|
|
|
346,638 |
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Gross profit: |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Water Transmission |
|
|
7,932 |
|
|
|
9,681 |
|
|
|
39,927 |
|
|
|
27,529 |
|
|
Tubular Products |
|
|
880 |
|
|
|
1,919 |
|
|
|
5,757 |
|
|
|
14,148 |
|
|
|
Total
gross profit |
|
|
8,812 |
|
|
|
11,600 |
|
|
|
45,684 |
|
|
|
41,677 |
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Selling, general, and administrative expense |
|
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5,972 |
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7,571 |
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|
|
18,644 |
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|
21,499 |
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Operating income (loss): |
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|
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|
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|
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|
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Water Transmission |
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6,306 |
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6,969 |
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34,838 |
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|
|
21,123 |
|
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Tubular Products |
|
|
93 |
|
|
|
1,134 |
|
|
|
3,644 |
|
|
|
11,981 |
|
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Corporate |
|
|
(3,559 |
) |
|
|
(4,074 |
) |
|
|
(11,442 |
) |
|
|
(12,926 |
) |
|
|
Operating income |
|
|
2,840 |
|
|
|
4,029 |
|
|
|
27,040 |
|
|
|
20,178 |
|
|
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|
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Other expense |
|
|
242 |
|
|
|
49 |
|
|
|
279 |
|
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|
51 |
|
Interest income |
|
|
(141 |
) |
|
|
(35 |
) |
|
|
(384 |
) |
|
|
(122 |
) |
Interest expense |
|
|
977 |
|
|
|
1,305 |
|
|
|
2,982 |
|
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|
4,471 |
|
|
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|
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Income before income taxes |
|
|
1,762 |
|
|
|
2,710 |
|
|
|
24,163 |
|
|
|
15,778 |
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
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Provision for (benefit from) income taxes |
|
|
746 |
|
|
|
(686 |
) |
|
|
8,080 |
|
|
|
4,044 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net income |
|
$ |
1,016 |
|
|
$ |
3,396 |
|
|
$ |
16,083 |
|
|
$ |
11,734 |
|
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Basic earnings per share |
|
$ |
0.11 |
|
|
$ |
0.36 |
|
|
$ |
1.70 |
|
|
$ |
1.25 |
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Diluted earnings per share |
|
$ |
0.11 |
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|
$ |
0.36 |
|
|
$ |
1.69 |
|
|
$ |
1.25 |
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Shares used in per share calculations: |
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|
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|
|
|
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|
|
|
|
|
|
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Basic |
|
|
9,449 |
|
|
|
9,383 |
|
|
|
9,443 |
|
|
|
9,375 |
|
|
Diluted |
|
|
9,517 |
|
|
|
9,499 |
|
|
|
9,498 |
|
|
|
9,458 |
|
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NORTHWEST PIPE COMPANY |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
(Dollar amounts in thousands) |
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
2013 |
|
2012 |
Assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
33 |
|
$ |
46 |
|
Trade and other receivables, net |
|
|
64,609 |
|
|
41,498 |
|
Costs and estimated earnings in excess of billings on
uncompleted contracts |
|
|
51,066 |
|
|
73,314 |
|
Inventories |
|
|
109,945 |
|
|
113,545 |
|
Other current assets |
|
|
8,324 |
|
|
7,735 |
|
|
Total
current assets |
|
|
233,977 |
|
|
236,138 |
|
Property and equipment, net |
|
|
162,616 |
|
|
152,545 |
|
Other assets |
|
|
37,120 |
|
|
33,739 |
|
|
Total
assets |
|
$ |
433,713 |
|
$ |
422,422 |
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
Current maturities of long-term debt |
|
$ |
10,134 |
|
$ |
9,009 |
|
Accounts payable |
|
|
22,063 |
|
|
21,042 |
|
Accrued liabilities |
|
|
19,744 |
|
|
32,217 |
|
Billings in excess of cost and estimated earnings on
uncompleted contracts |
|
|
4,005 |
|
|
6,478 |
|
|
Total
current liabilities |
|
|
55,946 |
|
|
68,746 |
|
Note payable to financial institution |
|
|
59,951 |
|
|
47,533 |
|
Other long-term debt, less current maturities |
|
|
8,319 |
|
|
15,536 |
|
Other long-term liabilities |
|
|
32,258 |
|
|
31,175 |
|
|
Total
liabilities |
|
|
156,474 |
|
|
162,990 |
|
|
|
|
|
|
|
Stockholders' equity |
|
|
277,239 |
|
|
259,432 |
|
|
Total
liabilities and stockholders' equity |
|
$ |
433,713 |
|
$ |
422,422 |
|
|
|
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CONTACT: Robin Gantt Chief Financial Officer 360-397-6250
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