PW Eagle (PWEI) 8-K PW Eagle Reports Third Quarter Results

Exhibit 99.1

FOR:	PW Eagle, Inc.
	1550 Valley River Drive
	Eugene, OR 97440
	(Nasdaq-NMS: “PWEI”)
CONTACT:	Scott Long,
	Chief Financial Officer, PW Eagle, Inc.
	541-343-0200

PW EAGLE REPORTS THIRD QUARTER RESULTS

Conference Call Scheduled for November 10, 2004 at 3:00 pm Central Time

Eugene, Oregon — Nov 9, 2004— PW Eagle, Inc. (Nasdaq-NMS: “PWEI”) today reported its financial results for the three and nine month periods ended September 30, 2004. A summary of the unaudited consolidated operating results for the three and nine month periods ending September 30, 2004 and 2003 is set forth in the following table:

Consolidated Income Statement Information

(In thousands, except for per share amounts)

	Three months ended September 30,						Nine months ended September 30,
	2004			2003			2004			2003
Net sales	$	117,941		$	96,241		$	342,710		$	249,590
Gross profit		17,605			7,070			51,577			30,077
Restructuring and related costs		—			—			1,608			—
Loss from continuing operations		(240	)		(5,450	)		(1,170	)		(7,075	)
Adjustments to reconcile to EBITDA:
Interest		4,655			3,010			11,697			8,609
Taxes		(200	)		(3,384	)		(739	)		(4,392	)
Depreciation		2,688			2,773			7,753			8,327
Amortization		177			353			420			514
EBITDA	$	7,080		$	(2,698	)	$	17,961		$	5,983
Loss per common share from continuing operations
Basic	$	(0.03	)	$	(0.80	)	$	(0.17	)	$	(1.04	)
Diluted	$	(0.03	)	$	(0.80	)	$	(0.17	)	$	(1.04	)

During the quarter, the Company increased its estimate of the value of its majority owned subsidiary, USPoly Corp., based on its operating performance and the previously disclosed acquisition of the business of Uponor Aldyl Company. This resulted in a non-cash charge of $0.9 million to interest expense in the third quarter of 2004, representing the increase in the value of a warrant to purchase shares in USPoly held by USPoly’s subordinated lender.

Jerry Dukes, President, commented, “Our business continued its improvement from the prior years during the third quarter. Our sales volumes remained at good levels and our operational efficiencies continue to yield results. As anticipated, our margins decreased from the second quarter of 2004, as selling prices did not increase as much as our raw material costs. However, our results, both for the three and nine month periods of 2004 represent a significant improvement from the prior year.”

Scott Long, Chief Financial Officer, stated, “Our operating performance, combined with our recently completed refinancing, positions us to continue on our strategic plan of improving operations, paying down debt and, as debt levels permit, begin paying dividends and repurchasing our common stock.”

Third Quarter 2004 Conference Call

PW Eagle will hold its third quarter 2004 conference call onWednesday, November 10, 2004 at 3:00 pm Central Time to discuss the third quarter 2004 results. The conference telephone number is 800-510-9661, use 46466022 as the passcode to access the call. The call will be archived for one week at 888-286-8010, use 81890490 as the passcode for access.

PW Eagle, Inc. is a leading extruder of PVC pipe products. USPoly Corp, a subsidiary of PW Eagle, is an extruder of small diameter polyethylene pipe. The Company and its majority-owned subsidiary, USPoly Corp., operate thirteen manufacturing facilities across the United States. PW Eagle’s common stock is traded on the Nasdaq National Market under the symbol “PWEI”.

Forward Looking Statements

THIS PRESS RELEASE CONTAINS FORWARD-LOOKING INFORMATION AND ACTUAL RESULTS MAY DIFFER

Statements that PW Eagle, Inc. may publish, including those in this announcement that are not strictly historical are “forward looking” statements made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements made in this press release, including statements by Scott Long that the Company’s operating performance, combined with the Company’s recently completed financing, position the Company to continue its strategic plan of improving operations, paying down debt and, as debt levels permit, begin paying dividends and repurchasing its common stock, are “forward looking” statements which involve known and unknown risks and uncertainties that may cause the actual results to differ materially from those expected and stated in this announcement. Actual results could differ if the economy, and particularly the segments of the economy that impact the Company’s business, does not grow and perform at least as well as forecast. In addition, actual results could differ as a result of: (i) a slowdown in the United States economy; (ii) the failure of the Gross Domestic Product to improve during the remainder of 2004 and thereafter; (iii) an increase in interest rates; (iv) a decline in the construction of commercial and residential building; (v) a fluctuation in raw material prices; and (vi) a greater supply of PVC and PE pipe than market demand for such products caused by cyclical fluctuations in the supply and demand for pipe.

It is not possible to foresee or identify all factors that could cause actual results to differ from expected or historical results. As such, you should not consider any list of such factors to be an exhaustive statement of all risks, uncertainties or potential inaccurate assumptions. We undertake no obligation to update “forward-looking” statements. In addition, the use of the term “EBITDA” is not intended to be an alternative to the financial results under generally accepted accounting principles in the United States of America.

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- financials follow -

PW EAGLE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(In thousands, except per share amounts)

	Three months ended September 30,						Nine months ended September 30,
	2004			2003			2004			2003
NET SALES	$	117,941		$	96,241		$	342,710		$	249,590
COST OF SALES		100,326			89,171			291,133			219,513
Gross profit		17,605			7,070			51,577			30,077
OPERATING EXPENSES:
Selling, General and Admin. expenses		13,756			12,867			40,574			32,919
Restructuring and related costs		—			—			1,608			—
OPERATING INCOME (LOSS)		3,849			(5,797	)		9,395			(2,842	)
NON-OPERATING EXPENSES (INCOME):
Interest expense		4,655			3,010			11,697			8,609
Other expense (income)		(60	)		27			346			16
Equity in earnings of affiliate		(306	)		—			(739	)		—
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(440	)		(8,834	)		(1,909	)		(11,467	)
INCOME TAX BENEFIT		(200	)		(3,384	)		(739	)		(4,392	)
LOSS FROM CONTINUING OPERATIONS, NET OF TAXES		(240	)		(5,450	)		(1,170	)		(7,075	)
Income (loss) from discontinued operations					(23	)					194
NET LOSS	$	(240	)	$	(5,473	)	$	(1,170	)	$	(6,881	)
LOSS FROM CONTINUING OPERATIONS PER SHARE:
Basic	$	(0.03	)	$	(0.80	)	$	(0.17	)	$	(1.04	)
Diluted	$	(0.03	)	$	(0.80	)	$	(0.17	)	$	(1.04	)
INCOME FROM DISCONTINUED OPERATIONS PER SHARE:
Basic		—			—			—		$	0.03
Diluted		—			—			—		$	0.03
NET LOSS PER SHARE:
Basic	$	(0.03	)	$	(0.80	)	$	(0.17	)	$	(1.01	)
Diluted	$	(0.03	)	$	(0.80	)	$	(0.17	)	$	(1.01	)

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PW EAGLE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

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

	September 30, 2004		December 31, 2003
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	4,569	$	431
Accounts receivable, net		51,205		26,566
Inventories		62,729		45,545
Other current assets		4,615		5,840
Total current assets		123,118		78,382
Property, Plant and equipment		63,235		62,146
Non-current Assets		28,340		24,650
TOTAL ASSETS	$	214,693	$	165,178
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Revolving credit facility	$	58,052	$	34,631
Current maturities of long-term debt		1,691		3,967
Long-term obligations refinanced with short-term debt		19,625		—
Other current liabilities		54,538		43,394
Total current liabilities		133,906		81,992
Long-term debt, less current maturities		7,500		14,861
Senior subordinated debt		28,653		31,950
Capital Lease Obligations		19,739		13,016
Other long-term liabilities		9,031		8,124
TOTAL LIABILITIES		198,829		149,943
Stockholders’ equity		15,864		15,235
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	214,693	$	165,178

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