Click here to close now.

SYS-CON MEDIA Authors: Kevin Jackson, Peter Silva, Greg Wind, Glenn Rossman, Michael Jannery

News Feed Item

Northwest Pipe Reports First Quarter 2014 Results and Announces Conference Call

VANCOUVER, WA -- (Marketwired) -- 05/07/14 -- Northwest Pipe Company (NASDAQ: NWPX) today announced its financial results for the quarter ended March 31, 2014. The Company will broadcast its first quarter 2014 earnings conference call on Thursday, May 8, 2014, at 8:00 am PDT.

First Quarter 2014 Results

Net sales from continuing operations for the quarter ended March 31, 2014 decreased 23.0% to $82.6 million compared to $107.3 million for the quarter ended March 31, 2013. Gross profit was $4.3 million (5.2% of net sales from continuing operations) in the first quarter of 2014, a decrease from $22.9 million (21.4% of net sales from continuing operations) in the first quarter of 2013. Net loss from continuing operations for the first quarter of 2014 was $1.2 million or $0.13 per diluted share compared to net income from continuing operations of $11.0 million or $1.16 per diluted share for the first quarter of 2013.

Water Transmission sales decreased by 45.3% to $43.0 million in the first quarter of 2014 from $78.6 million in the first quarter of 2013. The decrease in net sales was due to continued weakness in municipal markets. Water Transmission gross profit decreased to $1.7 million (3.9% of segment net sales) in the first quarter of 2014 from $19.9 million (25.3% 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 significant decrease in volume compared to the same period a year ago.

Tubular Products sales from continuing operations increased 38.0% to $39.6 million in the first quarter of 2014 from $28.7 million in the first quarter of 2013, driven by a 41% increase in tons sold from 27,600 tons in the first quarter of 2013 to 39,000 tons in the first quarter of 2014 and partially offset by a 2% decrease in average selling price per ton. Tubular Products gross profit from continuing operations decreased by 12.8% to $2.6 million (6.7% of segment net sales from continuing operations) in the first quarter of 2014 from $3.0 million (10.6% of segment net sales from continuing operations) in the first quarter of 2013. Gross profit was negatively impacted by planned downtime for the replacement of the existing front end of our 16 inch mill at our Atchison plant in March 2014.

As previously announced on March 31, 2014, the Company completed the sale of substantially all of its oil country tubular goods business. The net loss of discontinued operations in the first quarter of 2014 was $8.7 million or $0.91 per diluted share, which included a pre-tax loss on the sale of the business of $12.1 million.

As of March 31, 2014, the backlog of orders in the Water Transmission segment was approximately $148 million compared to a backlog of orders of $136 million as of March 31, 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

"Our first quarter was significantly affected by a series of charges related to our recent acquisitions, divestitures and scheduled downtime. We believe the second quarter of 2014 will improve. The Water Transmission segment is expected to have higher net sales, with gross margin in the low to mid-teens. We will start production on the Integrated Pipeline Project in the second quarter, and expect production will run through the fourth quarter of 2014," said Scott Montross, President and Chief Executive Officer of the Company. "We are still ramping up our Atchison operations after the planned downtime for our expansion. Second quarter's net sales in Tubular Products will be similar to the first quarter but we expect to see margin compression with the recent run up in steel coil prices."

Conference Call

The Company will hold its first quarter 2014 earnings conference call on Thursday, May 8, 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, June 6, 2014 by dialing 1-866-352-6820 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
                                                             March 31,
                                                       --------------------
                                                          2014       2013
                                                       ---------  ---------

Net sales:
  Water Transmission                                   $  42,999  $  78,613
  Tubular Products                                        39,648     28,722
                                                       ---------  ---------
    Net sales                                             82,647    107,335

Cost of sales:
  Water Transmission                                      41,331     58,743
  Tubular Products                                        37,002     25,673
                                                       ---------  ---------
    Total cost of sales                                   78,333     84,416

Gross profit:
  Water Transmission                                       1,668     19,870
  Tubular Products                                         2,646      3,049
                                                       ---------  ---------
    Total gross profit                                     4,314     22,919

Selling, General, and Administrative                       5,440      6,030
                                                       ---------  ---------

Operating income/(loss)
  Water Transmission                                        (299)    18,033
  Tubular Products                                         2,294      2,735
  Corporate                                               (3,121)    (3,879)
                                                       ---------  ---------
    Operating income/(loss)                               (1,126)    16,889

Other expense                                                 63         41
Interest income                                              (81)      (183)
Interest expense                                             770        957
                                                       ---------  ---------

Income/(loss) before income taxes from continuing
 operations                                               (1,878)    16,074

Provision for (benefit from) income taxes from
 continuing operations                                      (667)     5,098
                                                       ---------  ---------

Net income/(loss) from continuing operations              (1,211)    10,976

Discontinued operations
  Income/(loss) before income taxes from discontinued
   operations                                             (2,662)    (2,160)
  Loss on sale of business                               (12,083)         -
  Benefit from income taxes from discontinued
   operations                                             (6,066)      (690)
                                                       ---------  ---------
    Net loss from discontinued operations                 (8,679)    (1,470)

Net income/(loss)                                      $  (9,890) $   9,506
                                                       =========  =========

Basic Earnings (Loss) per Share
  Continuing operations                                $   (0.13) $    1.16
  Discontinued operations                                  (0.91)     (0.15)
                                                       ---------  ---------
  Total                                                $   (1.04) $    1.01
                                                       =========  =========

Diluted Earnings (Loss) per Share
  Continuing operations                                $   (0.13) $    1.16
  Discontinued operations                                  (0.91)     (0.16)
                                                       ---------  ---------
  Total                                                $   (1.04) $    1.00
                                                       =========  =========

Shares Used in Per Share Calculation:
  Basic                                                    9,508      9,437
                                                       =========  =========
  Diluted                                                  9,508      9,484
                                                       =========  =========



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

                                                   March 31,    December 31,
                                                      2014          2013
                                                 ------------- -------------
Assets:
  Cash and cash equivalents                      $          49 $         588
  Trade and other receivables, net                      57,482        72,470
  Costs and estimated earnings in excess of
   billings on uncompleted contracts                    44,328        50,468
  Inventories                                           62,974       110,392
  Other current assets                                  17,767         9,662
                                                 ------------- -------------
    Total current assets                               182,600       243,580
  Property and equipment, net                          133,303       143,061
  Other assets                                          46,693        46,818
                                                 ------------- -------------
    Total assets                                 $     362,596 $     433,459
                                                 ============= =============

Liabilities:
  Current maturities of long-term debt           $       4,521 $       7,930
  Accounts payable                                      20,924        21,731
  Accrued liabilities                                   12,192        15,194
  Billings in excess of cost and estimated
   earnings on uncompleted contracts                    18,215         3,368
                                                 ------------- -------------
    Total current liabilities                           55,852        48,223
  Note payable to financial institution                 25,191        87,919
  Other long-term debt, less current maturities          1,357         6,322
  Other long-term liabilities                           29,098        29,145
                                                 ------------- -------------
    Total liabilities                                  111,498       171,609

Stockholders' equity                                   251,098       261,850
                                                 ------------- -------------
    Total liabilities and stockholders' equity   $     362,596 $     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
SYS-CON Events announced today that ActiveState, the leading independent Cloud Foundry and Docker-based PaaS provider, has been named “Silver Sponsor” of SYS-CON's DevOps Summit New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. ActiveState believes that enterprises gain a competitive advantage when they are able to quickly create, deploy and efficiently manage software solutions that immediately create business value, but they face many challenges that ...
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes ...
SYS-CON Events announced today that Alert Logic, the leading provider of Security-as-a-Service solutions for the cloud, has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® and DevOps Summit 2015 New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo® and DevOps Summit 2015 Silicon Valley, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Plutora, Inc., the leading global provider of enterprise release management and test environment management SaaS solutions, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Headquartered in Mountain View, California, Plutora provides enterprise release management and test environment SaaS solutions to clients in North America, Europe and Asia Pacific. Leading companies ...
SYS-CON Events announced today that kintone has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. kintone promotes cloud-based workgroup productivity, transparency and profitability with a seamless collaboration space, build your own business applic...
SYS-CON Events announced today that Akana, formerly SOA Software, has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Akana’s comprehensive suite of API Management, API Security, Integrated SOA Governance, and Cloud Integration solutions helps businesses accelerate digital transformation by securely extending their reach across multiple channels – mobile, cloud and Internet of Thi...
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular In...
SYS-CON Events announced today that SafeLogic has been named “Bag Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. SafeLogic provides security products for applications in mobile and server/appliance environments. SafeLogic’s flagship product CryptoComply is a FIPS 140-2 validated cryptographic engine designed to secure data on servers, workstations, appliances, mobile devices, and in the Cloud....
SYS-CON Events announced today that FierceDevOps will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. FierceDevOps keeps software developers and IT operations personnel updated on the latest news and trends around the rapidly evolving role of the traditional IT worker.
SYS-CON Events announced today that QTS Realty Trust, one of the nation’s largest and fastest-growing providers of data center facilities and cloud services and a leader in security and compliance, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. QTS Realty Trust, Inc. (NYSE: QTS) is a leading national provider of data center solutions and fully managed services, and a leader in security and compliance...
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the...
SYS-CON Events announced today that IndependenceIT, a leading software provider of simplified IT management solutions for workspaces, applications and desktops-as-a-service, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IndependenceIT's Cloud Workspace® Suite combines application, end-user and infrastructure management into a seamless, easy-to-manage platform, with a unified management interface an...
SYS-CON Events announced today that StorPool Storage will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. StorPool is distributed storage software that allows service providers, enterprises and other cloud builders to run data storage on standard x86 servers, instead of using expensive and inefficient storage arrays (SAN).
SYS-CON Events announced today that WSM International (WSM), the world’s leading cloud and server migration services provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. WSM is a solutions integrator with a core focus on cloud and server migration, transformation and DevOps services.
SYS-CON Events announced today that that Innodisk, the service-driven provider of industrial embedded flash and DRAM storage products and technologies, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Innodisk is a service-driven provider of industrial embedded flash and DRAM storage products and technologies. With satisfied customers across the embedded, aerospace and defense, cloud storage markets an...