VANCOUVER, WA--(Marketwire - April 23, 2008) - Northwest Pipe Company (
NASDAQ:
NWPX) 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
============ ============
Contact Information: CONTACTS:
Brian Dunham
Chief Executive Officer
360-397-6300
Stephanie Welty
Chief Financial Officer
360-397-6323