VANCOUVER, WA--(Marketwire - October 22, 2008) - Northwest Pipe Company (
NASDAQ:
NWPX) today
reported record sales and earnings for the third quarter of 2008. Sales
in the third quarter ended September 30, 2008 were $123.4 million compared
to $92.0 million in the same quarter of 2007. Net income in the quarter
was $10.2 million, compared to $5.1 million in the third quarter of 2007.
Per share earnings were $1.09 in the third quarter of 2008 compared to
$0.55 per share in 2007.
Water Transmission Results
Revenues for the Water Transmission Group were $77.5 million in the third
quarter of 2008, compared to $66.8 million in 2007. Gross profit in 2008
was $14.3 million, or 18.4% of sales, compared to $14.2 million, or 21.3%
of sales in 2007.
"We are pleased once again to report strong revenue in our Water
Transmission Group," said Brian W. Dunham, president and chief executive
officer of the Company. "While revenues were a little higher than
expected, the gross margin was slightly lower. The decrease was primarily
due to higher raw material costs embedded in the cost of our products."
Tubular Products Results
The Tubular Products Group sales were $45.9 million in the third quarter of
2008, compared to $25.2 million in 2007. Gross profit for the quarter was
$12.6 million, or 27.3% of sales, compared to $3.1 million, or 12.2% of
sales for 2007.
"This was obviously another very strong quarter for the Tubular Products
Group, with a 23% sequential increase in sales over the second quarter of
this year, and record margins. While some of our markets slowed due to
economic conditions, we continued to see strong demand from the energy
market throughout the period," said Dunham.
Outlook
The Company reported backlog of $235 million as of September 30th. "The
backlog, although down from last quarter, is still very strong," said
Dunham. Bidding activity for the Water Transmission Group over the past
three months was lower than expected, but several projects were delayed
into the fourth quarter. "At this time, we expect growth in the backlog
through the end of the year, which should leave us in a very strong
position entering into 2009," noted Dunham. "Conversely, we are expecting
lower water transmission sales in the fourth quarter due to a major project
postponement, as well as normal seasonality."
"In the Tubular Products Group, we are expecting another strong quarter due
to energy sales, which we hope will offset weakness in some of our other
markets. Slowing demand in parts of our business, along with falling steel
costs which may lead to lower pricing, could combine to make it difficult
to maintain our current high margin, but our overall results should be
solid."
"As we look beyond 2008," continued Dunham, "the long term trends for most
of our products look strong. Infrastructure spending, energy development
and agriculture all look positive, especially as financial markets
stabilize. However, concerns over current economic conditions and the
credit markets certainly must be addressed. Looking into next year, we see
mixed signals but we continue to be optimistic about our 2009 prospects
given that the outlook for our two largest product lines, water
transmission and energy, continues to be positive," Dunham stated. "As
financial markets stabilize and the economy recovers, we believe we will be
well positioned to continue our growth and capitalize on strong positions
within our core markets."
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 energy, construction, agricultural, 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 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, changes in domestic or
international business and economic conditions, changes in domestic or
international financial markets, and other risks described from time to
time 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 third quarter 2008 earnings conference call will be held on
Wednesday, October 22, 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 888-277-5031 pass code 6301 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 Nine Months Ended
September 30 September 30
-------------------- --------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Net Sales:
Water Transmission $ 77,512 $ 66,773 $ 216,242 $ 207,504
Tubular Products 45,913 25,209 113,292 77,109
--------- --------- --------- ---------
Net Sales 123,425 91,982 329,534 284,613
Cost of Sales:
Water Transmission 63,251 52,558 172,750 164,331
Tubular Products 33,363 22,127 87,570 68,089
--------- --------- --------- ---------
Total Cost of Sales 96,614 74,685 260,320 232,420
Gross Profit:
Water Transmission 14,261 14,215 43,492 43,173
Tubular Products 12,550 3,082 25,722 9,020
--------- --------- --------- ---------
Gross Profit 26,811 17,297 69,214 52,193
Selling, General, and
Administrative 8,996 7,598 26,242 22,873
--------- --------- --------- ---------
Operating Income 17,815 9,699 42,972 29,320
Interest Expense, Net 1,332 1,653 4,467 5,090
--------- --------- --------- ---------
Income Before Income Taxes 16,483 8,046 38,505 24,230
Provision for Income Taxes 6,256 2,977 14,832 8,965
--------- --------- --------- ---------
Net Income $ 10,227 $ 5,069 $ 23,673 $ 15,265
========= ========= ========= =========
Basic Earnings per Share $ 1.12 $ 0.57 $ 2.59 $ 1.71
========= ========= ========= =========
Diluted Earnings per Share $ 1.09 $ 0.55 $ 2.53 $ 1.65
========= ========= ========= =========
Shares Used in Per Share
Calculation:
Basic 9,169 8,971 9,136 8,945
========= ========= ========= =========
Diluted 9,370 9,242 9,345 9,225
========= ========= ========= =========
CONDENSED SELECTED BALANCE SHEET (Unaudited)
(Dollar amounts in thousands)
September 30, December 31,
2008 2007
------------- -------------
Assets:
Cash and Cash Equivalents $ 71 $ 234
Trade and Other Receivables, Net 74,331 49,300
Costs and Estimated Earnings in Excess
of Billings on Uncompleted Contracts 112,588 121,058
Inventories 100,002 62,805
Other Current Assets 9,328 10,487
------------- -------------
Total Current Assets 296,320 243,884
Property and Equipment, Net 189,772 179,977
Other Assets 29,615 29,702
------------- -------------
Total Assets $ 515,707 $ 453,563
============= =============
Liabilities:
Current Maturities of Long-Term Debt $ 6,530 $ 5,851
Accounts Payable 57,204 41,684
Accrued Liabilities 17,370 12,311
Billings in Excess of Cost and Estimated
Earnings on Uncompleted Contracts 1,598 2,514
------------- -------------
Total Current Liabilities 82,702 62,360
Long-Term Note Payable to Financial
Institution 75,226 54,415
Other Long-Term Debt, Less Current
Maturities 34,019 38,921
Other Liabilities 40,425 41,585
------------- -------------
Total Liabilities 232,372 197,281
Stockholders' Equity 283,335 256,282
------------- -------------
Total Liabilities and Stockholders' Equity $ 515,707 $ 453,563
============= =============
Contact Information: CONTACT:
Brian Dunham
Chief Executive Officer
360-397-6250