SOURCE: Northwest Pipe Company

Northwest Pipe Company

August 06, 2012 17:43 ET

Northwest Pipe Reports Q2 2012 Financial Results and Announces Conference Call

VANCOUVER, WA--(Marketwire - Aug 6, 2012) - Northwest Pipe Company (NASDAQ: NWPX) today announced its financial results for the second quarter of 2012. The Company will broadcast its second quarter 2012 earnings conference call on Tuesday, August 7, 2012, at 9:00 am PDT.

Second Quarter 2012 Results

Net sales for the quarter ended June 30, 2012 decreased 8.9% to $131.0 million compared to $143.8 million in the quarter ended June 30, 2011. Gross profit was $13.6 million (10.4% of net sales) in the second quarter of 2012, a decrease from $16.7 million (11.6% of net sales) in the same quarter of 2011. Net income for the second quarter of 2012 was $3.6 million or $0.38 per diluted share compared to $5.0 million or $0.53 per diluted share for the same period in 2011.

Water Transmission sales decreased by 20.7% to $59.1 million in the second quarter of 2012 from $74.5 million in the second quarter of 2011. The decrease in sales was due to a 19% decrease in volume and a 3% decrease in selling price per ton. Water Transmission gross profit decreased to $8.1 million (13.8% of segment net sales) in the second quarter of 2012 from $11.5 million (15.5% of segment net sales) in the same quarter of the prior year. The decrease in gross profit was primarily due to the decrease in volume.

Tubular Products sales increased 3.8% to $72.0 million in the second quarter of 2012 from $69.3 million in the second quarter of 2011, driven by a 1% increase in tons sold from 55,700 tons to 56,500 tons and a 1% increase in the average selling price per ton. Tubular Products gross profit increased by 5.6% to $5.4 million (7.5% of segment net sales) in the second quarter of 2012 from $5.1 million (7.4% of segment net sales) in the same quarter of 2011. As discussed in the first quarter 2012 conference call, downtime in the Atchison, Kansas facility in May, 2012 to complete the previously announced expansion project negatively impacted margins in the second quarter.

As of June 30, 2012, the backlog of orders was approximately $273 million, with the Water Transmission segment representing approximately $245 million and the Tubular Products segment representing approximately $28 million. This compared to a total backlog of orders of $256 million as of June 30, 2011, with the Water Transmission segment representing approximately $208 million and the Tubular Products segment representing approximately $48 million. The Water Transmission segment's backlog as of June 30, 2012 represents a record for that segment. The backlog includes 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

"We saw lower net sales and net income in the second quarter of 2012 as compared to the second quarter of 2011, particularly in our Water Transmission segment," said Richard Roman, President and Chief Executive Officer of the Company. "However, with the Lake Texoma project we announced a couple weeks ago, we anticipate that the second half of 2012 will be stronger in the Water Transmission segment than the first half of 2012. Consistent with other domestic tubular producers, the Tubular Products Group will struggle through at least the summer as we expect significantly higher imports of energy products to reduce net sales and profitability for that segment."

Conference Call

The Company will hold its second quarter 2012 earnings conference call on Tuesday, August 7, 2012 at 9 am PDT. The live call can be accessed by dialing 800-369-3340 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 866-441-1050 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 Richard A. Roman 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, 2011 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,  
    2012     2011     2012     2011  
                                 
Net sales:                                
  Water Transmission   $ 59,050     $ 74,459     $ 117,481     $ 133,104  
  Tubular Products     71,991       69,342       155,735       122,155  
    Net sales     131,041       143,801       273,216       255,259  
                                 
Cost of sales:                                
  Water Transmission     50,901       62,928       99,633       111,679  
  Tubular Products     66,563       64,202       143,506       112,141  
    Total cost of sales     117,464       127,130       243,139       223,820  
                                 
Gross profit:                                
  Water Transmission     8,149       11,531       17,848       21,425  
  Tubular Products     5,428       5,140       12,229       10,014  
    Total gross profit     13,577       16,671       30,077       31,439  
                                 
Selling, general, and administrative expense     6,607       5,603       13,928       12,892  
                                 
Operating income (loss):                                
  Water Transmission     6,130       9,142       14,154       17,403  
  Tubular Products     4,651       4,304       10,847       8,153  
  Corporate     (3,811 )     (2,378 )     (8,852 )     (7,009 )
    Operating income     6,970       11,068       16,149       18,547  
                                 
Other expense/(income)     (34 )     284       2       397  
Interest income     (46 )     (23 )     (87 )     (23 )
Interest expense     1,526       2,575       3,166       5,193  
                                 
Income before income taxes     5,524       8,232       13,068       12,980  
                                 
Provision for income taxes     1,920       3,255       4,730       5,071  
                                 
Net income   $ 3,604     $ 4,977     $ 8,338     $ 7,909  
                                 
Basic earnings per share   $ 0.38     $ 0.53     $ 0.89     $ 0.85  
                                 
Diluted earnings per share   $ 0.38     $ 0.53     $ 0.88     $ 0.85  
                                 
Shares used in per share calculations:                                
  Basic     9,374       9,327       9,372       9,316  
  Diluted     9,433       9,355       9,423       9,348  
 
 
 
NORTHWEST PIPE COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollar amounts in thousands)
 
 
 
    June 30,   December 31,
    2012   2011
Assets:            
  Cash and cash equivalents   $ 25   $ 182
  Trade and other receivables, net     72,229     69,894
  Costs and estimated earnings in excess of billings on uncompleted contracts     48,526     38,029
  Inventories     120,604     107,169
  Other current assets     7,475     11,649
    Total current assets     248,859     226,923
  Property and equipment, net     152,612     152,846
  Other assets     33,569     33,604
    Total assets   $ 435,040   $ 413,373
             
Liabilities:            
  Note payable to financial institution   $ 52,000   $ -
  Current maturities of long-term debt     8,975     9,072
  Accounts payable     30,686     20,248
  Accrued liabilities     40,805     19,175
  Billings in excess of cost and estimated earnings on uncompleted contracts     3,681     7,814
    Total current liabilities     136,147     56,309
  Note payable to financial institution     -     62,000
  Other long-term debt, less current maturities     18,637     24,418
  Other long-term liabilities     30,307     30,379
    Total liabilities     185,091     173,106
             
Stockholders' equity     249,949     240,267
    Total liabilities and stockholders' equity   $ 435,040   $ 413,373

Contact Information

  • CONTACT:
    Robin Gantt
    Chief Financial Officer
    360-397-6250