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 |