PORTLAND, OR--(Marketwire - July 25, 2007) - Northwest Pipe Company (
Water Transmission
Sales in the Water Transmission Group for the second quarter of 2007 were $69.5 million compared to $51.3 million for the second quarter of 2006. Gross profit for the second quarter of 2007 was $15.1 million, or 21.7% of sales, compared to $9.8 million, or 19.1% of sales in the second quarter of 2006.
"The Water Transmission Group sales in the second quarter of this year were consistent with our expectations. Margins also improved, showing the benefits of higher plant utilization for the quarter," said Dunham.
Tubular Products
The Tubular Products Group's sales were $28.9 million in the second quarter of 2007 compared to $22.6 million for the second quarter of 2006. Gross profit was $3.6 million, or 12.5% of sales for the second quarter of 2007, compared to $2.7 million, or 11.7% of sales for the second quarter of 2006. This is the highest quarterly sales and gross profit for this Group since 2004.
Fabricated Products
Sales in the Fabricated Products Group were $3.5 million in the second quarter of 2007 compared to $3.9 million for the same period in 2006. Gross profit was $113,000, or 3.2% of sales in the second quarter of 2007, compared to $334,000, or 8.5% of sales for the second quarter of 2006.
Acquisition of Continental Pipe Manufacturing
The Company completed the purchase of Continental Pipe Manufacturing Company's Pleasant Grove, Utah manufacturing plant at the beginning of July 2007. "This facility's additional capacity will help support the Water Transmission Group's growth in the coming years," said Dunham. "This facility did not have much backlog when we acquired it, so we expect a slow start. However, by the beginning of 2008, we should start seeing the benefits of this acquisition."
Outlook
The Company reported a strong backlog of $192.2 million as of June 30, 2007. "We continue to expect the total 2007 market to exceed the 2006 market with strong bookings and sales in the second half of 2007. Due to timing issues, we expect third quarter revenues to be down somewhat from this quarter, with a stronger fourth quarter. We continue to project record results for this Group," said Dunham.
"The Tubular Products Group should continue at approximately its current level in the third quarter and decrease in the fourth quarter, as a result of normal seasonality. We are on track to reach our near-term sales goal of $100 million in 2007," stated Dunham. "In addition, with the improvement in gross profit as a percent of sales, we have the opportunity to record our strongest year in this Group since 2004."
The Fabricated Products Group is expected to continue at its current level in sales and profitability through the rest of this year. "As we have stated before, the long-term opportunity in this Group is in supporting our water transmission business," noted Dunham. "We will continue to increase production of pipe fittings at this facility in the months ahead and we have transitioned management responsibility for this Group to John Peterson, who heads up our Saginaw, Texas Division of the Water Transmission Group."
About Northwest Pipe Company
Northwest Pipe Company manufactures welded steel pipe and other products in three business groups. Its Water Transmission Group is a 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 construction, agricultural, energy, industrial and mechanical applications. Its Fabricated Products Group manufactures propane tanks and other fabricated products. The Company is headquartered in Portland, Oregon 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, 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.
NORTHWEST PIPE COMPANY
STATEMENTS OF OPERATIONS
(Dollar and share amounts in thousands, except per share amounts)
--------------------- --------------------
Three Months Ended Six Months Ended
June 30 June 30
--------------------- --------------------
2007 2006 2007 2006
---------- --------- ---------- ---------
Net Sales:
Water Transmission $ 69,477 $ 51,343 $ 134,057 $ 107,290
Tubular Products 28,918 22,593 51,901 41,493
Fabricated Products 3,502 3,920 6,675 7,891
---------- --------- ---------- ---------
Net Sales 101,897 77,856 192,633 156,674
Cost of Sales:
Water Transmission 54,426 41,527 105,270 87,301
Tubular Products 25,290 19,939 45,963 36,931
Fabricated Products 3,389 3,586 6,504 7,174
---------- --------- ---------- ---------
Total Cost of Sales 83,105 65,052 157,737 131,406
Gross Profit:
Water Transmission 15,051 9,816 28,787 19,989
Tubular Products 3,628 2,654 5,938 4,562
Fabricated Products 113 334 171 717
---------- --------- ---------- ---------
Gross Profit 18,792 12,804 34,896 25,268
Selling, General and
Administrative 7,973 6,894 15,275 13,310
Gain on Sale of Asset - (7,674) - (7,674)
---------- --------- ---------- ---------
Operating Income 10,819 13,584 19,621 19,632
Interest Expense 1,833 1,729 3,437 3,487
---------- --------- ---------- ---------
Income Before Income Taxes 8,986 11,855 16,184 16,145
Provision for Income Taxes 3,324 4,532 5,988 6,184
---------- --------- ---------- ---------
Net Income $ 5,662 $ 7,323 $ 10,196 $ 9,961
========== ========= ========== =========
Basic Earnings per Share $ 0.63 $ 1.07 $ 1.14 $ 1.45
========== ========= ========== =========
Diluted Earnings per Share $ 0.61 $ 1.03 $ 1.11 $ 1.40
========== ========= ========== =========
Shares Used in Per Share
Calculation:
Basic 8,940 6,854 8,932 6,848
========== ========= ========== =========
Diluted 9,221 7,131 9,217 7,128
========== ========= ========== =========
NORTHWEST PIPE COMPANY
SELECTED BALANCE SHEET AND OTHER DATA
(Dollar amounts in thousands)
June 30, December 31,
2007 2006
------------- -------------
Assets:
Cash and Cash Equivalents $ 250 $ 4,259
Trade and Other Receivables, Net 65,657 68,425
Cost and Estimated Earnings in Excess
of Billings on Uncompleted Contracts 79,821 74,353
Inventories 63,638 79,300
Other Current Assets 9,876 11,177
------------- -------------
Total Current Assets 219,242 237,514
Property and Equipment, Net 168,456 160,776
Other Assets 26,755 26,161
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Total Assets $ 414,453 $ 424,451
============= =============
Liabilities:
Current Maturities of Long-Term Debt $ 4,402 $ 9,663
Accounts Payable 29,717 50,865
Accrued Liabilities 13,740 10,243
------------- -------------
Total Current Liabilities 47,859 70,771
Long-Term Note Payable to Financial
Institution 49,001 43,000
Other Long-Term Debt, Less Current
Maturities 40,710 47,915
Other Liabilities 33,879 31,939
------------- -------------
Total Liabilities 171,449 193,625
Stockholders’ Equity 243,004 230,826
------------- -------------
Total Liabilities and Stockholders’
Equity $ 414,453 $ 424,451
============= =============
Other Data:
Working Capital $ 171,383 $ 166,743
Capital Expenditures 8,832 58,428
Depreciation and Amortization 2,518 3,782
Debt as a Percent of Capitalization 26.9% 29.5%
Contact Information: CONTACT: Brian Dunham Chief Executive Officer 503-946-1200