Attached files
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| 8-K - FORM 8-K - NORTHWEST PIPE CO | d546696d8k.htm |
 2013 Annual Shareholder Meeting
May 31, 2013
Exhibit 99.1 |
 2
Forward Looking Statements
This
presentation
includes
certain
estimates
and
other
forward-looking
statements
within
the
meaning
of
Section
21E
of
the
Securities
Exchange
Act
of
1934,
as
amended,
including
statements
with
respect
to
anticipated
operating
and
financial
performance,
growth
opportunities,
growth
rates,
potential
acquisition
opportunities,
and
other
statements
of
expectation.
Words
such
as
“forecasts”,
“expects,”
“anticipates,”
“intends,”
“plans,”
“believes,”
“assumes,”
“seeks,”
“estimates,”
“should,”
and
variations
of
these
words
and
similar
expressions,
are
intended
to
identify
these
forward-looking
statements.
While
we
believe
these
statements
are
accurate,
forward-looking
statements
are
inherently
uncertain
and
we
cannot
assure
you
that
these
expectations
will
occur
and
our
actual
results
may
be
significantly
different.
These
statements
by
the
Company
and
its
management
are
based
on
estimates,
projections,
beliefs
and
assumptions
of
management
and
are
not
guarantees
of
future
performance.
Important
factors
that
could
cause
actual
results
to
differ
from
those
in
the
forward-looking
statements
include
the
factors
described
in
the
“Risk
Factors”
section
of
our
most
recent
10-Q
filing
with
the
SEC.
The
Company
disclaims
any
obligation
to
update
or
revise
any
forward-looking
statement
based
on
the
occurrence
of
future
events,
the
receipt
of
new
information,
or
otherwise.
This
presentation
includes
certain
non-GAAP
financial
measures,
that
are
different
from
financial
measures
calculated
in
accordance
with
GAAP
and
may
be
different
from
similar
measures
used
by
other
companies. |
 3
Who Are We?
•
Diversified manufacturer of welded steel pipe for
the water infrastructure and energy markets
–
Specializing in large diameter, high pressure, engineered steel
water pipe systems for transporting raw water to treatment plants
and for treatment plant infrastructure
–
Also focused on API tubular products for oil and gas
transmission, as well as for oil and gas drilling, including wells
that are for hydraulically fracking |
 Northwest Pipe Company Locations |
 5
Record Sales in 2012 |
 6
Income
Statement
Summary
($ in millions)
2011
2012
Q1-2013
Net Sales
Water Transmission
$ 271.9
$ 269.2
$ 78.6
Tubular Products
239.8
255.3
62.0
Net Sales
511.7
524.5
140.6
Gross Profit
Water Transmission
43.2
45.1
19.9
Tubular Products
15.9
11.1
1.3
Gross Profit
59.1
56.2
21.2
SG&A
26.3
28.6
6.4
Operating Income/(Loss)
32.8
27.6
14.8
Other (Income)/Expense
1.3
0.3
0.1
Interest Income
(0.1)
(0.2)
(0.2)
Interest Expense
9.3
5.6
1.0
Income/(Loss) Before Taxes
22.3
21.7
13.9
Provision/(Benefit) for Income Taxes
9.6
5.5
4.4
Net Income/(Loss)
12.7
16.2
9.5
Diluted Earnings per Share
$ 1.35
$ 1.72
$ 1.00 |
 7
Balance
Sheet
Summary
($ in millions)
Dec. 31,
2011
Dec. 31,
2012
Mar. 31,
2013
Assets
Cash and Cash Equivalents
$ 0.2
$ 0.0
$ 0.0
Trade and Other Receivables, Net
69.9
41.5
65.4
Costs and Estimated Earnings in Excess
of Billings on Uncompleted Contracts
38.0
73.3
70.0
Inventories
107.2
113.5
109.6
Other Current Assets
11.6
7.8
8.5
Total Current Assets
226.9
236.1
253.5
Property and Equipment, Net
152.8
152.5
158.8
Other Assets
33.7
33.8
33.6
Total Assets
$ 413.4
$ 422.4
$ 445.9
Liabilities
Current Maturities of Long-Term Debt
$ 9.1
$ 9.0
$ 9.0
Accounts Payable
20.2
21.0
33.6
Accrued Liabilities
19.2
32.2
30.2
Billings in Excess of Cost and Estimated Earnings
on Uncompleted Contracts
7.8
6.5
2.8
Total Current Liabilities
56.3
68.7
75.6
Long-Term Note Payable to Financial Institution
62.0
47.5
56.2
Other Long-Term Debt, Less Current Maturities
24.4
15.5
11.9
Other Liabilities
30.4
31.3
33.4
Total Liabilities
173.1
163.0
177.1
Stockholders' Equity
240.3
259.4
268.8
Total Liabilities and Stockholders' Equity
$ 413.4
$ 422.4
$ 445.9 |
 Tubular Products |
 9
Emerging Presence in Energy Tubular
Business
•
Expanding customer base
•
Growing downstream processing capabilities
•
Improving operational efficiency
•
Recognizing areas of strength |
 10
Tubular Net Sales $$ by Product Group |
 11
Tubular Net Sales $$
by Value Added Energy Product |
 12
Operational Improvements |
 13
U.S. Rig Counts
Source: Pipe Exchange May 2013 |
 14
Impact of Imports
•
Import levels continue to have a major impact on
the API market
•
Import levels in OCTG market at 48%
•
Import levels in Line Pipe market at 64%
•
Downward pressure on price in OCTG and Line
Pipe |
 15
Outlook
•
Near term outlook
•
Long term outlook |
 Water Transmission |
 17
Well Positioned Industry Leader
•
Largest, most flexible capacity in the market
•
Strong relationships with public water agencies,
contractors and engineering firms
–
Assist in development process of projects prior to bidding
•
Competitive position
–
Experienced workforce
–
Low freight costs
–
Excellent reputation for quality and service
–
Strong cost focus on lean manufacturing |
 18
Current Conditions and a Look Ahead
•
In 2013, water infrastructure projects compete with
other infrastructure needs and municipal funding
decreases
•
The bidding activity is down in 2013, compared to
2012 and 2011
•
Emergency drought-related work and expected
infrastructure projects in Texas should increase in
2014 and beyond |
 19
Water Transmission Backlog |
 20
Tarrant Regional Water District
Integrated Pipeline Project (IPL)
Source: Tarrant Regional Water District
http://www.iplproject.com/about-the-ipl/map/
•
The
pipeline
will
run
from
Lake
Palestine
to
Lake
Benbrook,
with
connections
to
Cedar
Creek
and
Richland-Chambers
Reservoirs
•
It
will
integrate
TRWD's
existing
pipelines
to
the
Dallas
system
to
provide
up
to
an
additional
350
million
gallons
per
day
(MGD)
of
raw
water
to
North
Central
Texas |
 21
Timeline / Project Components
•
IPL Components:
–
150 miles of buried pipeline
•
72”
–
108”
diameter welded steel pipe
•
3 lake intake pump stations
•
2 booster pump stations
–
Water delivery could begin by 2021
–
Communities served:
•
DFW metroplex
•
Ellis County
–
Cost estimated to be over $1.6 B |
 22
Northwest Pipe Strategic Plans
•
Optimize recent capital investments
•
Lean manufacturing focus
•
Continue modernization of Atchison facility
•
Focus growth plans around areas of strength
•
Double EBITDA from 2011 to 2015 |
 2013 Annual Shareholder Meeting
May 31, 2013 |