Northwest Pipe Reports Record Net Sales, Full Year 2012 Results and Announces Conference Call

Marketwired

VANCOUVER, WA--(Marketwire - Mar 14, 2013) - Northwest Pipe Company (NASDAQ: NWPX)

Highlights:

  • Net sales were a record $524.5 million in 2012, up from the previous record of $511.7 million in 2011
  • Operating income was $27.6 million
  • Net income was $16.2 million, or $1.72 per diluted share

Northwest Pipe Company (NASDAQ: NWPX) today announced its 2012 financial results including record net sales in 2012. The Company will broadcast its 2012 earnings conference call on Friday, March 15, 2013, at 8:00 am PDT.

Full Year 2012 Results

Net sales for the year ended December 31, 2012 increased 2.5% to $524.5 million compared to $511.7 million in the year ended December 31, 2011. Gross profit was $56.2 million (10.7% of net sales) in 2012, a decrease from $59.1 million (11.6% of net sales) in 2011. Net income for 2012 was $16.2 million or $1.72 per diluted share compared to $12.7 million or $1.35 per diluted share for 2011.

Water Transmission sales decreased by 1.0% to $269.2 million in 2012 from $271.9 million in 2011. The minor decrease in net sales was due to an 8.9% decrease in the average selling price per ton which was offset by an 8.7% increase in tons produced. Water Transmission gross profit increased to $45.1 million (16.7% of segment net sales) in 2012 from $43.2 million (15.9% of segment net sales) in the prior year.

Tubular Products sales increased 6.5% to $255.3 million in 2012 from $239.8 million in 2011, driven by a 4% increase in average selling price per ton and a 2% increase in tons sold from 202,400 tons in 2011 to 206,200 tons in 2012. Tubular Products gross profit decreased by 30.1% to $11.1 million (4.4% of segment net sales) in 2012 from $16.0 million (6.7% of segment net sales) in 2011.

As of December 31, 2012, the backlog of orders in the Water Transmission segment was approximately $173 million. This compared to a backlog of orders of $138 million as of December 31, 2011. 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

"The Water Transmission segment had higher margins in 2012 compared to 2011, although net sales stayed relatively the same. The fourth quarter was the strongest quarter of 2012 in Water Transmission, and was the highest quarter ever in Water Transmission in both net sales and gross profit. This was due, in part, to production on the Lake Texoma project, the largest project in our history," said Scott Montross, President and Chief Executive Officer of the Company. "As expected, we saw lower margins in the Tubular Products segment in 2012 as compared to 2011 with the competition from increased quantities of imported energy pipe, particularly in the third and fourth quarters. The Tubular Products segment was also negatively impacted by lower drilling activity, as seen in the decrease in rig counts, and lower natural gas prices. In Water Transmission, we anticipate that the first quarter of 2013 will have similar profitability as the fourth quarter of 2012, although with lower net sales. In Tubular Products, we expect to be near breakeven as competition from imports of energy products will continue to negatively impact profitability for the Tubular Products segment in the near term."

Conference Call

The Company will hold its 2012 earnings conference call on Friday, March 15, 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 1-888-566-0507 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, 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
December 31,
    Full Year Ended
December 31,
 
    2012     2011     2012     2011  
                                 
Net sales:                                
  Water Transmission   $ 88,235     $ 61,828     $ 269,203     $ 271,885  
  Tubular Products     47,953       55,316       255,300       239,783  
    Net sales     136,188       117,144       524,503       511,668  
                                 
Cost of sales:                                
  Water Transmission     70,713       53,416       224,152       228,703  
  Tubular Products     50,954       52,543       244,153       223,827  
    Total cost of sales     121,667       105,959       468,305       452,530  
                                 
Gross profit:                                
  Water Transmission     17,522       8,412       45,051       43,182  
  Tubular Products     (3,001 )     2,773       11,147       15,956  
    Total gross profit     14,521       11,185       56,198       59,138  
                                 
Selling, general, and administrative expense     7,139       6,956       28,638       26,315  
                                 
Operating income (loss):                                
  Water Transmission     15,155       5,963       36,278       34,113  
  Tubular Products     (3,646 )     2,158       8,335       12,660  
  Corporate     (4,127 )     (3,892 )     (17,053 )     (13,950 )
    Operating income     7,382       4,229       27,560       32,823  
                                 
Other expense (income), net     288       (9 )     339       1,338  
Interest income     (38 )     (72 )     (160 )     (99 )
Interest expense     1,145       1,866       5,616       9,306  
                                 
Income before income taxes     5,987       2,444       21,765       22,278  
                                 
(Benefit from) provision for income taxes     1,477       977       5,521       9,618  
                                 
Net income   $ 4,510     $ 1,467     $ 16,244     $ 12,660  
                                 
Basic earnings per share   $ 0.48     $ 0.16     $ 1.73     $ 1.36  
                                 
Diluted earnings per share   $ 0.48     $ 0.15     $ 1.72     $ 1.35  
                                 
Shares used in per share calculations:                                
  Basic     9,383       9,353       9,377       9,333  
  Diluted     9,479       9,472       9,445       9,384  
 
 
 
NORTHWEST PIPE COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollar amounts in thousands)
 
    December 31,
    2012   2011
Assets:            
  Cash and cash equivalents   $ 46   $ 182
  Trade and other receivables, net     41,498     69,894
  Costs and estimated earnings in excess of billings on uncompleted contracts     73,314     38,029
  Inventories     113,545     107,169
  Other current assets     7,735     11,649
  Total current assets     236,138     226,923
  Property and equipment, net     152,545     152,846
  Other assets     33,739     33,604
    Total assets   $ 422,422   $ 413,373
             
Liabilities:            
  Current maturities of long-term debt   $ 9,009   $ 9,072
  Accounts payable     21,042     20,248
  Accrued liabilities     32,217     19,175
  Billings in excess of cost and estimated earnings on uncompleted contracts     6,478     7,814
  Total current liabilities     68,746     56,309
  Note payable to financial institution     47,533     62,000
  Other long-term debt, less current maturities     15,536     24,418
  Other long-term liabilities     31,175     30,379
    Total liabilities     162,990     173,106
             
Stockholders' equity     259,432     240,267
    Total liabilities and stockholders' equity   $ 422,422   $ 413,373
                 
Contact:
CONTACT:
Robin Gantt
Chief Financial Officer
360-397-6250
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