Click here to close now.

Welcome!

News Feed Item

Northwest Pipe Reports Second Quarter 2014 Results and Announces Conference Call

VANCOUVER, WA -- (Marketwired) -- 08/04/14 -- Northwest Pipe Company (NASDAQ: NWPX) today announced its financial results for the quarter ended June 30, 2014. The Company will broadcast its second quarter 2014 earnings conference call on Tuesday, August 5, 2014, at 8:00 am PDT.

Second Quarter 2014 Results

Net sales from continuing operations for the quarter ended June 30, 2014 increased 16.0% to $102.0 million compared to $87.9 million for the quarter ended June 30, 2013. Gross profit was $11.3 million (11.1% of net sales from continuing operations) in the second quarter of 2014, a decrease from $15.2 million (17.3% of net sales from continuing operations) in the second quarter of 2013. Income from continuing operations for the second quarter of 2014 was $3.2 million or $0.33 per diluted share compared to income from continuing operations of $5.5 million or $0.59 per diluted share for the second quarter of 2013.

Water Transmission sales increased 7.0% to $62.2 million in the second quarter of 2014 from $58.1 million in the second quarter of 2013. The increase in net sales was due to higher volumes primarily attributed to the Integrated Pipeline ("IPL") Project, which started production in mid-May. Water Transmission gross profit decreased to $11.5 million (18.5% of segment net sales) in the second quarter of 2014 from $12.1 million (20.9% of segment net sales) in the same quarter of 2013. Water Transmission gross profit decreased in total and as a percent of net sales due to the mix of projects as compared to the same period a year ago. In addition, increased competition has compressed margins on projects that were produced in the second quarter and bid during the recent Water Transmission market slowdown.

Tubular Products sales from continuing operations increased 33.5% to $39.8 million in the second quarter of 2014 from $29.8 million in the second quarter of 2013, driven by a 37% increase in tons sold partially offset by a 3% decrease in sales prices. Sales volumes increased from 29,800 tons in the second quarter of 2013 to 40,900 tons in the second quarter of 2014. Tubular Products gross profit from continuing operations decreased by 105.6% to a $0.2 million gross loss (negative 0.4% of segment net sales from continuing operations) in the second quarter of 2014 from $3.1 million gross profit (10.4% of segment net sales from continuing operations) in the second quarter of 2013. Gross profit was negatively impacted by higher steel costs in relation to the lower sales prices coupled with a $1.6 million lower of cost or market adjustment in the second quarter.

As of June 30, 2014, the backlog of orders in the Water Transmission segment was approximately $143 million compared to a backlog of orders of $115 million as of June 30, 2013. The backlog includes confirmed orders, including the balance of projects in process, and projects for which the Company has been notified that it was the successful bidder even though a binding agreement has not been executed.

Outlook

The Company's financial performance is expected to improve in the third quarter with the higher levels of production in the Water Transmission segment. "The IPL and other projects are expected to push third quarter Water Transmission margins into the high teens," said Scott Montross, President and Chief Executive Officer of the Company. "We have recently completed the modernization project at our Atchison facility and are seeing improving volumes and enhanced product mix, but high levels of imports continue to have a negative impact on the line pipe market. In the near term we expect margins in the low single digits for the Tubular Products segment."

Conference Call

The Company will hold its second quarter 2014 earnings conference call on Tuesday, August 5, 2014 at 8:00 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 until Friday, September 5, 2014 by dialing 1-800-337-6558 passcode 6301.

About Northwest Pipe Company

Northwest Pipe Company is a leading manufacturer of welded steel pipe and tube products. The Tubular Products Group operates a state of the art electric resistance weld mill facility. The Tubular Products portfolio serves a wide-range of markets and its quality certified pipe and tube products are good for applications including: oil and gas, structural industrial, fire protection, low pressure and agricultural. The Water Transmission Group is the largest manufacturer of engineered steel pipe water systems in North America. With eight Water Transmission manufacturing facilities, the Group is positioned to meet North America's growing needs for water and wastewater infrastructure. The Water Transmission Group serves a wide-range of markets and their solution-based products are a perfect fit for applications including: water transmission, plant piping, energy, tunnels, river crossings, structural, industrial and construction. The Company is headquartered in Vancouver, Washington and has manufacturing facilities in 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, 2013 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,
                                 --------------------  --------------------
                                    2014       2013       2014       2013
                                 ---------  ---------  ---------  ---------

Net sales:
  Water Transmission             $  62,205  $  58,148  $ 105,204  $ 136,761
  Tubular Products                  39,783     29,794     79,431     58,516
                                 ---------  ---------  ---------  ---------
    Net sales                      101,988     87,942    184,635    195,277

Cost of sales:
  Water Transmission                50,714     46,023     92,045    104,766
  Tubular Products                  39,957     26,709     76,959     52,382
                                 ---------  ---------  ---------  ---------
    Total cost of sales             90,671     72,732    169,004    157,148

Gross profit (loss):
  Water Transmission                11,491     12,125     13,159     31,995
  Tubular Products                    (174)     3,085      2,472      6,134
                                 ---------  ---------  ---------  ---------
    Total gross profit              11,317     15,210     15,631     38,129

Selling, general and
 administrative expense              5,918      5,941     11,358     11,971
                                 ---------  ---------  ---------  ---------

Operating income (loss)
  Water Transmission                 9,543     10,499      9,244     28,532
  Tubular Products                    (589)     2,774      1,705      5,509
  Corporate                         (3,555)    (4,004)    (6,676)    (7,883)
                                 ---------  ---------  ---------  ---------
    Operating income                 5,399      9,269      4,273     26,158

Other income (expense)                  26          4        (37)       (37)
Interest income                         82         60        163        243
Interest expense                       569        867      1,339      1,824
                                 ---------  ---------  ---------  ---------

Income before income taxes from
 continuing operations               4,938      8,466      3,060     24,540

Income tax expense                   1,756      2,919      1,089      8,017
                                 ---------  ---------  ---------  ---------

Income from continuing
 operations                          3,182      5,547      1,971     16,523

Income (loss) from discontinued
 operations                             10         14    (10,883)    (1,456)
                                 ---------  ---------  ---------  ---------

Net income (loss)                $   3,192  $   5,561  $  (8,912) $  15,067
                                 =========  =========  =========  =========

Basic earnings (loss) per share
  Continuing operations          $    0.34  $    0.59  $    0.21  $    1.75
  Discontinued operations                -          -      (1.15)     (0.15)
                                 ---------  ---------  ---------  ---------

  Total                          $    0.34  $    0.59  $   (0.94) $    1.60
                                 =========  =========  =========  =========

Diluted earnings (loss) per
 share
  Continuing operations          $    0.33  $    0.59  $    0.21  $    1.74
  Discontinued operations                -          -      (1.14)     (0.15)
                                 ---------  ---------  ---------  ---------

  Total                          $    0.33  $    0.59  $   (0.93) $    1.59
                                 =========  =========  =========  =========

Shares used in per share
 calculations:
  Basic                              9,513      9,443      9,510      9,440
                                 =========  =========  =========  =========
  Diluted                            9,605      9,481      9,596      9,474
                                 =========  =========  =========  =========



                           NORTHWEST PIPE COMPANY
              CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
                        (Dollar amounts in thousands)


                                                    June 30,    December 31,
                                                      2014          2013
                                                 ------------- -------------
Assets:
  Cash and cash equivalents                      $          75 $         588
  Trade and other receivables, net                      47,560        72,470
  Costs and estimated earnings in excess of
   billings on uncompleted contracts                    49,466        50,468
  Inventories                                           64,068       110,392
  Other current assets                                  18,342         9,662
                                                 ------------- -------------
    Total current assets                               179,511       243,580
  Property and equipment, net                          134,235       143,061
  Other assets                                          42,074        46,818
                                                 ------------- -------------
    Total assets                                 $     355,820 $     433,459
                                                 ============= =============

Liabilities:
  Current maturities of long-term debt           $         974 $       7,930
  Accounts payable                                      16,638        21,731
  Accrued liabilities                                   10,410        15,194
  Billings in excess of cost and estimated
   earnings on uncompleted contracts                     5,371         3,368
                                                 ------------- -------------
    Total current liabilities                           33,393        48,223
  Note payable to financial institution                 39,924        87,919
  Other long-term debt, less current maturities          1,105         6,322
  Other long-term liabilities                           28,447        29,145
                                                 ------------- -------------
    Total liabilities                                  102,869       171,609

Stockholders' equity                                   252,951       261,850
                                                 ------------- -------------
  Total liabilities and stockholders' equity     $     355,820 $     433,459
                                                 ============= =============

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

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.
The enterprise market will drive IoT device adoption over the next five years. In his session at @ThingsExpo, John Greenough, an analyst at BI Intelligence, division of Business Insider, analyzed how companies will adopt IoT products and the associated cost of adopting those products. John Greenough is the lead analyst covering the Internet of Things for BI Intelligence- Business Insider’s paid research service. Numerous IoT companies have cited his analysis of the IoT. Prior to joining BI In...
"We have been in business for 21 years and have been building many enterprise solutions, all IT plumbing - server, storage, interconnects," stated Alex Gorbachev, President of Intelligent Systems Services, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
"ciqada is a combined platform of hardware modules and server products that lets people take their existing devices or new devices and lets them be accessible over the Internet for their users," noted Geoff Engelstein of ciqada, a division of Mars International, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
The time is ripe for high speed resilient software defined storage solutions with unlimited scalability. ISS has been working with the leading open source projects and developed a commercial high performance solution that is able to grow forever without performance limitations. In his session at Cloud Expo, Alex Gorbachev, President of Intelligent Systems Services Inc., shared foundation principles of Ceph architecture, as well as the design to deliver this storage to traditional SAN storage co...
Countless business models have spawned from the IaaS industry. Resell Web hosting, blogs, public cloud, and on and on. With the overwhelming amount of tools available to us, it's sometimes easy to overlook that many of them are just new skins of resources we've had for a long time. In his General Session at 16th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, broke down what we've got to work with and discuss the benefits and pitfalls to discover how we can best use them to d...
"We have seen the evolution of WebRTC right from the starting point to what it has become today, that people are using in real applications," noted Dr. Natasha Tamaskar, Vice President and Head of Cloud and Mobile Strategy and Ecosystem at GENBAND, in this SYS-CON.tv interview at WebRTC Summit, held June 9-11, 2015, at the Javits Center in New York City.
Enterprises are turning to the hybrid cloud to drive greater scalability and cost-effectiveness. But enterprises should beware as the definition of “policy” varies wildly. Some say it’s the ability to control the resources apps’ use or where the apps run. Others view policy as governing the permissions and delivering security. Policy is all of that and more. In his session at 16th Cloud Expo, Derek Collison, founder and CEO of Apcera, explained what policy is, he showed how policy should be arch...
The 3rd International WebRTC Summit, to be held Nov. 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 15th International Cloud Expo, 6th International Big Data Expo, 3rd International DevOps Summit and 2nd Internet of @ThingsExpo. WebRTC (Web-based Real-Time Com...
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, discussed how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at th...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world...
SYS-CON Events announced today that Harbinger Systems will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Harbinger Systems is a global company providing software technology services. Since 1990, Harbinger has developed a strong customer base worldwide. Its customers include software product companies ranging from hi-tech start-ups in Silicon Valley to leading product companies in the US a...
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than
SYS-CON Events announced today that ProfitBricks, the provider of painless cloud infrastructure, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. ProfitBricks is the IaaS provider that offers a painless cloud experience for all IT users, with no learning curve. ProfitBricks boasts flexible cloud servers and networking, an integrated Data Center Designer tool for visual control over the...
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.