VANCOUVER, WA--(Marketwired - May 6, 2013) - Northwest Pipe Company (
Highlights:
- Net sales were $140.6 million, down 1.1% from first quarter 2012
- Operating income was $14.8 million, up 61.5%
- Net income was $9.5 million, or $1.00 per diluted share, up 100%
Northwest Pipe Company (
First Quarter 2013 Results
Net sales for the quarter ended March 31, 2013 decreased 1.1% to $140.6 million compared to $142.2 million in the quarter ended March 31, 2012. Gross profit was $21.2 million (15.1% of net sales) in the first quarter of 2013, an increase from $16.5 million (11.6% of net sales) in the first quarter of 2012. Net income for the first quarter of 2013 was $9.5 million or $1.00 per diluted share compared to $4.7 million or $0.50 per diluted share for the first quarter of 2012.
Water Transmission sales increased by 34.5% to $78.6 million in the first quarter of 2013 from $58.4 million in the first quarter of 2012. The increase in net sales was due to a 53% increase in tons produced, offset by a 12% decrease in the average selling price per ton. Water Transmission gross profit increased to $19.9 million (25.3% of segment net sales) in the first quarter of 2013 from $9.7 million (16.6% of segment net sales) in the same period of 2012. The 25.3% gross profit as a percent of segment net sales is a quarterly record for the Company.
Tubular Products sales decreased 26.0% to $62.0 million in the first quarter of 2013 from $83.7 million in the first quarter of 2012, driven by a 9% decrease in average selling price per ton and a 19% decrease in tons sold from 66,600 tons in the first quarter of 2012 to 53,900 tons in the first quarter of 2013. Tubular Products gross profit decreased by 80.4% to $1.3 million (2.2% of segment net sales) in the first quarter of 2013 from $6.8 million (8.1% of segment net sales) in the first quarter of 2012.
As of March 31, 2013, the backlog of orders in the Water Transmission segment was approximately $136 million compared to a backlog of orders of $161 million as of March 31, 2012. The backlog contains confirmed orders, including the balance of projects in process, and projects for which the Company has been notified that we are the successful bidder even though a binding agreement has not been executed.
Outlook
"Based on current market conditions, we believe the first quarter will be our strongest quarter in 2013. The Water Transmission segment had a record quarter for gross profit as a percentage of net sales. The first quarter net sales and gross profit were driven by a number of large projects, including Lake Texoma, the largest project in Company history," said Scott Montross, President and Chief Executive Officer of the Company. "As expected, Tubular Products net sales and margins were significantly lower compared to the first quarter of 2012 as we experience continued high levels of imports and a falling rig count. In the second quarter of 2013, we anticipate that Water Transmission will have lower net sales, gross profit and gross profit as a percentage of sales compared with the first quarter of 2013. In Tubular Products we expect to see gross profit levels that are near breakeven as high levels of imports continue to negatively impact segment earnings for the near term."
Conference Call
The Company will hold its first quarter 2013 earnings conference call on Tuesday, May 7, 2013 at 8 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 for 30 days by dialing 1-800-583-8102 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 | ||||||||||
| March 31, | ||||||||||
| 2013 | 2012 | |||||||||
| Net sales: | ||||||||||
| Water Transmission | $ | 78,613 | $ | 58,431 | ||||||
| Tubular Products | 61,984 | 83,744 | ||||||||
| Net sales | 140,597 | 142,175 | ||||||||
| Cost of sales: | ||||||||||
| Water Transmission | 58,743 | 48,732 | ||||||||
| Tubular Products | 60,650 | 76,943 | ||||||||
| Total cost of sales | 119,393 | 125,675 | ||||||||
| Gross profit: | ||||||||||
| Water Transmission | 19,870 | 9,699 | ||||||||
| Tubular Products | 1,334 | 6,801 | ||||||||
| Total gross profit | 21,204 | 16,500 | ||||||||
| Selling, general, and administrative expense | 6,384 | 7,321 | ||||||||
| Operating income (loss): | ||||||||||
| Water Transmission | 18,033 | 8,024 | ||||||||
| Tubular Products | 666 | 6,196 | ||||||||
| Corporate | (3,879 | ) | (5,041 | ) | ||||||
| Operating income | 14,820 | 9,179 | ||||||||
| Other expense | 41 | 36 | ||||||||
| Interest income | (183 | ) | (41 | ) | ||||||
| Interest expense | 1,049 | 1,640 | ||||||||
| Income before income taxes | 13,913 | 7,544 | ||||||||
| Provision for income taxes | 4,407 | 2,810 | ||||||||
| Net income | $ | 9,506 | $ | 4,734 | ||||||
| Basic earnings per share | $ | 1.01 | $ | 0.51 | ||||||
| Diluted earnings per share | $ | 1.00 | $ | 0.50 | ||||||
| Shares used in per share calculations: | ||||||||||
| Basic | 9,437 | 9,369 | ||||||||
| Diluted | 9,484 | 9,412 | ||||||||
| NORTHWEST PIPE COMPANY | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
| (Dollar amounts in thousands) | ||||||||
| March 31, | December 31, | |||||||
| 2013 | 2012 | |||||||
| Assets: | ||||||||
| Cash and cash equivalents | $ | 47 | $ | 46 | ||||
| Trade and other receivables, net | 65,415 | 41,498 | ||||||
| Costs and estimated earnings in excess of billings on uncompleted contracts | 70,018 | 73,314 | ||||||
| Inventories | 109,604 | 113,545 | ||||||
| Other current assets | 8,390 | 7,735 | ||||||
| Total current assets | 253,474 | 236,138 | ||||||
| Property and equipment, net | 158,796 | 152,545 | ||||||
| Other assets | 33,644 | 33,739 | ||||||
| Total assets | $ | 445,914 | $ | 422,422 | ||||
| Liabilities: | ||||||||
| Current maturities of long-term debt | $ | 9,012 | $ | 9,009 | ||||
| Accounts payable | 33,598 | 21,042 | ||||||
| Accrued liabilities | 30,225 | 32,217 | ||||||
| Billings in excess of cost and estimated earnings on uncompleted contracts | 2,792 | 6,478 | ||||||
| Total current liabilities | 75,627 | 68,746 | ||||||
| Note payable to financial institution | 56,236 | 47,533 | ||||||
| Other long-term debt, less current maturities | 11,902 | 15,536 | ||||||
| Other long-term liabilities | 33,312 | 31,175 | ||||||
| Total liabilities | 177,077 | 162,990 | ||||||
| Stockholders' equity | 268,837 | 259,432 | ||||||
| Total liabilities and stockholders' equity | $ | 445,914 | $ | 422,422 | ||||
CONTACT: Robin Gantt Chief Financial Officer 360-397-6250
