PW Eagle (PWEI) 8-K PW Eagle Revises First Quarter Earnings

Exhibit 99.1

[LOGO OF PW EAGLE]

FOR:	PW Eagle, Inc.
	222 South Ninth Street, Suite 2880
	Minneapolis, MN 55402
	(Nasdaq-NMS: “PWEI”)
CONTACT:	William H. Spell
	Chief Executive Officer, PW Eagle, Inc.
	612/305-0339

PW EAGLE REVISES FIRST QUARTER EARNINGS

MINNEAPOLIS — May 15, 2003 — PW Eagle, Inc. (Nasdaq-NMS: “PWEI”) today revised its financial results for the three months ended March 31, 2003. In its press release dated April 23, 2003, PW Eagle released its unaudited financial results for the first quarter of 2003. Subsequently, the company revised its net sales for the first quarter downward by approximately 0.5% to reflect certain adjustments that had not been made earlier. As a result, PW Eagle’s net loss for the first quarter was increased from $(0.05) per share to $(0.08) per share. PW Eagle has also revised and updated the proforma historical results related to its recent purchase of Uponor ETI Company (ETI) on March 14, 2003. This proforma information will be available in the company’s filings on Form 8-K/A related to the acquisition and Form 10-Q for the quarter ended March 31, 2003. The proforma information in each of those filings is presented consistent with the rules applicable to each of those forms.

The revised actual results of the first quarter include the results of operations for the recently acquired ETI from March 14, 2003, the date of acquisition. A summary of the unaudited consolidated results for the quarters ending March 31, 2003 and 2002 is set forth in the following table:

Consolidated Income Statement Information

(In thousands, except for per share amounts)

	Three months ended March 31,
	2003			2002
Net sales	$	70,567		$	53,104
Gross profit		11,100			6,262
Net loss		(556	)		(2,635	)
Adjustments to reconcile to EBITDA:
Interest		2,588			3,005
Taxes		(345	)		(1,635	)
Depreciation		2,385			2,258
Amortization		17			—
EBITDA		4,089			993
Basic loss per share	$	(0.08	)	$	(0.39	)
Diluted loss per share	$	(0.08	)	$	(0.39	)

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The term “EBITDA” refers to earnings before interest, taxes, depreciation and amortization. Its use is not intended to be an alternative to the financial results under generally accepted accounting principles in the United States of America.

About the Company

PW Eagle, Inc. is a leading producer of PVC pipe and also produces polyethylene pipe and water meter boxes. The Company operates thirteen manufacturing facilities in the United States. PW Eagle’s common stock is traded on the Nasdaq National Market under the symbol “PWEI.”

Information Available on our Website

This press release, our periodic reports filed with or furnished to the Securities and Exchange Commission and information presented at our Annual Meeting is available on our website atwww.pweagleinc.com under the heading “Investor Relations.”

- financials follow -

PW EAGLE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(In thousands, except per share amounts)

	THREE MONTHS ENDED MARCH 31,
	2003			2002
NET SALES	$	70,567		$	53,104
COST OF GOODS SOLD		59,467			46,842
Gross profit		11,100			6,262
OPERATING EXPENSES:
Selling expenses		6,589			5,756
General and administrative expenses		2,820			2,096
		9,409			7,852
OPERATING INCOME (LOSS)		1,691			(1,590	)
OTHER EXPENSES (INCOME):
Interest expense		2,588			3,005
Other, net		4			(325	)
		2,592			2,680
LOSS BEFORE INCOME TAXES		(901	)		(4,270	)
INCOME TAX BENEFIT		(345	)		(1,635	)
NET LOSS	$	(556	)	$	(2,635	)
LOSS PER COMMON SHARE:
Basic	$	(0.08	)	$	(0.39	)
Diluted	$	(0.08	)	$	(0.39	)
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic		6,820			6,704
Diluted		6,820			6,704

PW EAGLE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except for shares and per share amounts)

ASSETS	MARCH 31, 2003 (Unaudited)			DEC. 31, 2002
CURRENT ASSETS:
Cash and cash equivalents	$	2,508		$	337
Accounts receivable, net		42,731			19,202
Inventories		60,091			38,917
Deferred income taxes		1,766			1,455
Receivable for purchase price		3,574			—
Other		1,348			650
Total current assets		112,018			60,561
Restricted cash		150			—
Property and equipment, net		75,058			58,899
Goodwill, net		3,651			3,651
Other		11,250			10,291
TOTAL ASSETS	$	202,127		$	133,402
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Borrowings under revolving credit facility	$	46,236		$	15,036
Current maturities of long-term debt		4,046			3,027
Accounts payable		36,768			9,344
Book overdraft		5,016			10,310
Accrued liabilities		12,611			9,224
Total current liabilities		104,677			46,941
Other long-term liabilities		9,073			1,817
Long-term debt, less current maturities		18,313			14,750
Financing lease obligation, less current maturities		13,084			13,105
Senior subordinated debt		30,590			30,870
TOTAL LIABILITIES		175,737			107,483
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Series A preferred stock; 7% cumulative dividend; convertible; $2 per share liquidation preference; no par value; 2,000,000 shares authorized; none issued and outstanding		—			—
Undesignated stock, $.01 par value; 14,490,000 shares authorized; none issued and outstanding		—			—
Stock warrants		6,936			6,296
Common stock; $.01 par value; 30,000,000 shares authorized; issued and outstanding 7,173,850 and 7,002,950 shares, respectively		72			70
Class B Common stock, $.01 par value; 3,500,000 shares authorized; none issued and outstanding		—			—
Additional paid-in capital		31,055			30,488
Unearned compensation		(1,080	)		(920	)
Notes receivable from officers and employees on common stock purchases		(835	)		(835	)
Accumulated other comprehensive loss		52			74
Retained earnings(accumulated deficit)		(9,810	)		(9,254	)
Total stockholders’ equity		26,390			25,919
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	202,127		$	133,402

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