News Release

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Northwest Pipe Company Reports First Quarter Results and Announces Conference Call

Quarterly Highlights:

  • Net sales increased 12.5% to $33.4 million from the first quarter of 2017
  • Gross profit was $1.3 million, or 4.0% of net sales, compared to a gross profit of $1.2 million, or 4.2% of net sales in the first quarter of 2017
  • Net loss from continuing operations per diluted share was $0.20, compared to a net loss from continuing operations per diluted share of $0.37 in the first quarter of 2017

VANCOUVER, Wash., May 02, 2018 (GLOBE NEWSWIRE) -- Northwest Pipe Company (Nasdaq:NWPX) today announced its financial results for the quarter ended March 31, 2018. The Company will broadcast its first quarter 2018 earnings conference call on Thursday, May 3, 2018 at 7:00 am PDT.

Outlook
“With the recent improvement in bidding activity and major programs scheduled to bid over the next several months, we expect 2018 to be a very strong bidding year. The improving demand along with a stable competitive landscape should lead to improving revenue and margins in the third and fourth quarters of 2018,” said Scott Montross, President and CEO of the Company. “We saw a lull in the bidding activity beginning in the fourth quarter of 2017 continuing into March 2018. It was only in the last ten days of March that we saw bidding activity begin to improve. As a result, we have experienced a very small revenue first quarter of 2018, and expect a very small second quarter.”

First Quarter 2018 Results

Net sales increased 12.5% to $33.4 million in the first quarter of 2018 from $29.7 million in the first quarter of 2017 due predominantly to increased tons produced. The increase in tons produced was due to project timing.

Gross profit was $1.3 million (4.0% of net sales) in the first quarter of 2018 compared to a gross profit of $1.2 million (4.2% of net sales) in the first quarter of 2017. Gross profit increased due to increased sales.

Net loss from continuing operations was $2.0 million, or $0.20 per diluted share, in the first quarter of 2018 which included $0.3 million, or $0.2 million net of taxes (using a statutory tax rate) in restructuring expense. Net loss from continuing operations in the first quarter of 2017 was $3.5 million, or $0.37 per diluted share, which included $0.9 million, or $0.6 million net of taxes (using a statutory tax rate) in restructuring expense.

Backlog represents the balance of remaining performance obligations under signed contracts (“Backlog”). The Company also has projects for which it has been notified that it is the successful bidder, but a binding agreement has not been executed (“Confirmed Orders”). Beginning in 2018, accounting guidance requires disclosure of Backlog, which was $41 million as of March 31, 2018. Backlog including Confirmed Orders, which is the metric the Company has traditionally reported, was $87 million as of March 31, 2018 compared to $88 million as of December 31, 2017 and $77 million as of March 31, 2017.

Conference Call

The Company will hold its first quarter 2018 earnings conference call on Thursday, May 3, 2018 at 7:00 am PDT. To listen to the live call, visit the Northwest Pipe Company website, www.nwpipe.com, under Investor Relations. For those unable to listen to the live call, the replay will be available approximately one hour after the event and will remain available until Thursday, May 31, 2018 by dialing 1‑800‑846‑5780 passcode 6301.

About Northwest Pipe Company

Northwest Pipe Company is the largest manufacturer of engineered steel pipe water systems in North America. The Company’s manufacturing facilities are strategically positioned to meet North America's growing needs for water and wastewater infrastructure. The Company serves a wide range of markets and its solution-based products are a good fit for applications including: water transmission, plant piping, tunnels and river crossings. The Company is headquartered in Vancouver, Washington and has manufacturing facilities across the United States.

Forward-Looking Statements

Statements in this press release by Scott Montross are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended that are based on current expectations, estimates and projections about the Company’s 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 the Company include changes in demand and market prices for its products, product mix, bidding activity, the timing of customer orders and deliveries, production schedules, the price and availability of raw materials, price and volume of imported product, excess or shortage of production capacity, international trade policy and regulations, the Company’s ability to identify and complete internal initiatives and/or acquisitions in order to grow its Water Transmission business, the impact of the Tax Cuts and Jobs Act of 2017 and other risks discussed in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2017 and from time to time in its other Securities and Exchange Commission filings and reports. Such forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release. If the Company does update or correct one or more forward-looking statements, investors and others should not conclude that it will make additional updates or corrections with respect thereto or with respect to other forward-looking statements.

Non-GAAP Financial Measures

The Company is presenting Backlog including Confirmed Orders as well as restructuring expense net of tax. These non-GAAP measures are provided to better enable investors and others to assess the Company’s results and compare them with its competitors. These should be considered as supplements to, and not as substitutes for, or superior to, financial measures calculated in accordance with GAAP.

For more information, visit www.nwpipe.com.

Contact:
Robin Gantt
Chief Financial Officer
(360) 397-6325

NORTHWEST PIPE COMPANY  
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  
(Unaudited)  
(In thousands, except per share amounts)  
 
   Three Months Ended March 31,   
  2018     2017    
             
Net sales $ 33,365     $ 29,657    
Cost of sales   32,017       28,414    
Gross profit   1,348       1,243    
Selling, general and administrative expense   3,385       3,840    
Restructuring expense   305       881    
Operating loss   (2,342 )     (3,478 )  
Other income (expense)   170       (89 )  
Interest income   77       -    
Interest expense   (128 )     (137 )  
Loss from continuing operations before income taxes   (2,223 )     (3,704 )  
Income tax benefit   (272 )     (162 )  
Loss from continuing operations   (1,951 )     (3,542 )  
Loss on discontinued operations   -       (326 )  
Net loss $ (1,951 )   $ (3,868 )  
             
Basic and diluted loss per share:              
Continuing operations $ (0.20 )   $ (0.37 )  
Discontinued operations   -       (0.03 )  
Net loss per share $ (0.20 )   $ (0.40 )  
               
Shares used in per share calculations:              
Basic and diluted   9,707       9,604    
               

 

NORTHWEST PIPE COMPANY  
CONDENSED CONSOLIDATED BALANCE SHEETS  
(Unaudited)  
(In thousands)  
                 
                 
      March 31, 
2018
  December 31,
2017
 
Assets            
  Current assets:            
    Cash and cash equivalents $ 39,991   $ 43,646  
    Trade and other receivables, net   24,241     28,990  
    Contract assets   44,845     44,502  
    Inventories   17,126     17,055  
    Prepaid expenses and other   5,683     6,562  
    Total current assets   131,886     140,755  
  Property and equipment, net   78,349     78,756  
  Other assets   9,492     10,813  
    Total assets $ 219,727   $ 230,324  
                 
Liabilities and Stockholders’ Equity            
  Current liabilities:            
    Accounts payable $ 4,460   $ 7,521  
    Accrued liabilities   5,105     6,563  
    Contract liabilities   1,155     2,599  
    Current portion of capital lease obligations   397     318  
    Total current liabilities   11,117     17,001  
  Capital lease obligations, less current portion   1,022     737  
  Other long-term liabilities   11,321     12,322  
    Total liabilities   23,460     30,060  
                 
  Stockholders' equity   196,267     200,264  
    Total liabilities and stockholders’ equity $ 219,727   $ 230,324  
               

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Source: Northwest Pipe Company