Attached files
| file | filename |
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| 8-K - 8-K - NORTHWEST PIPE CO | d733893d8k.htm |
 2014 Annual Shareholder Meeting
May 29, 2014
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-K 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.
2 |
 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
3 |
 4
Northwest Pipe Company Locations
4 |
 5
Northwest Pipe Strategic Vision
Northwest Pipe Company serves the water and
energy infrastructure markets. We seek to leverage
our customer relationships and distribution channels
along with our expertise in manufacturing and
engineering to provide an expanded portfolio of
products to the water and energy markets. We will
grow through the continued development of our
existing capabilities as well as through the
acquisition of complementary businesses.
5 |
 6
Overview of current events
•
Acquired Permalok Corporation
–
fabricator of steel piping utilizing an interlocking pipe joining
system
•
Disposed of substantially all of our oil country
tubular goods business
–
Bossier City and Houston locations
6 |
 7
Income
Statement
Summary
($ in millions)
FY 2013
FY 2013*
Q1 2014*
Net Sales
Water Transmission
$
226.4
$ 226.4
$ 43.0
Tubular Products
249.2
133.0
39.6
Net Sales
475.6
359.4
82.6
Gross Profit
Water Transmission
47.0
47.0
1.7
Tubular Products
5.5
12.8
2.6
Gross Profit
52.5
59.8
4.3
SG&A
24.2
22.0
5.4
Impairment of Fixed Assets
27.5
-
-
Operating Income/(Loss)
0.8
37.8
(1.1)
Other Expense
0.3
0.3
0.1
Interest Income
(0.5)
(0.4)
(0.1)
Interest Expense
4.0
3.2
0.8
Income/(Loss) Before Taxes
(3.0)
34.7
(1.9)
Provision/(Benefit) for Income Taxes
(2.1)
11.9
(0.7)
Net Income/(Loss)
(0.9)
22.8
(1.2)
Diluted Earnings (Loss) per Share
$ (0.10)
$ 2.39
$ (0.13)
* Excludes impacts from OCTG business, which was sold in March 2014
7
226.4
226.4
43.0
(0.13)
(0.10)
2.39 |
 8
Balance
Sheet
Summary
($ in millions)
12/31/2013
03/31/2014
Cash
$
$
Trade and Receivables, net
72.5
57.5
Costs and Estimated Earnings in Excess of Billings
50.5
44.3
Inventories
110.4
63.0
Other Current Assets
9.6
17.8
Total Current Assets
243.6
182.6
Property and Equipment, Net
143.1
133.3
Goodwill
25.7
21.3
Other Assets
21.1
25.4
Total Assets
$ 433.5
$ 362.6
Current Debt
$
$
Accounts Payable
21.7
20.9
Accrued Liabilities
15.2
12.2
Billings in Excess of Cost and Estimated Earnings
3.4
18.2
Total Current Liabilities
48.2
55.8
Note Payable
87.9
25.2
Long Term Debt and Capital Leases
6.3
1.4
Other Long Term Liabilities
29.2
29.1
Total Liabilities
171.6
111.5
Total Stockholders’
Equity
261.9
251.1
Total Liabilities and Stockholders’
Equity
$ 433.5
$ 362.6
8
0.6
0.0
4.5
7.9 |
 9
Water Transmission Strengths
•
Well Positioned Industry Leader
–
Largest, most flexible capacity in the market
–
Increased product offering with the acquisition of Permalok
–
Low freight costs
–
Strong relationships with agencies, engineers and contractors
–
Improving operational efficiency
9 |
 10
Tubular Products Strengths
•
Increasing sales in Line Pipe Market
–
Expanded product capabilities
–
Increased market potential
•
Improving operational efficiency
–
Uptime, a key management indicator, has improved
10 |
 11
Northwest Pipe Current Points of Focus
•
Focus on cost reduction in Water Transmission
•
Focus on reduced conversion costs at our
Atchison facility
•
Goal of doubling EBITDA from 2012 to 2016
Assumes normalized water and line pipe markets
Assumes small-
to medium-sized acquisition driven growth
•
What’s next?
11 |
 12
Vision for the Future
•
Grow through acquisition and diversification
•
Capitalize on our strengths to fuel our future
growth
People –
experienced team in place
Process –
focus on lean manufacturing
Equipment –
optimize recent capital investments
12 |
 US
Water & Waste Water Market 13
Total Market:
$34.9 B
Equipment:
$19 B
Pipe: $6.9 B
Steel Pipe:
10% of new
water pipes
Source: American Water Intelligence “Water Market USA 2011” and management
estimates |
 2014 Annual Shareholder Meeting
May 29, 2014 |