EXHIBIT 99.1
FOR IMMEDIATE RELEASE
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
SETTLEMENT WITH THE LAMSON & SESSIONS CO. RESULTS IN ADJUSTMENT OF PW EAGLE'S
FOURTH QUARTER AND YEAR 2000 RESULTS
MINNEAPOLIS - MARCH 15, 2001 - PW Eagle, Inc. (Nasdaq-NMS: "PWEI", formerly
"EPII") today reported that it entered into a settlement agreement with The
Lamson & Sessions, Co., settling the lawsuit filed by Lamson in July 1999 to
recover alleged damages it incurred in connection with PW Eagle's termination of
the Asset Purchase Agreement entered into between the parties in December 1998.
PW Eagle paid approximately $2.0 million to Lamson in consideration for Lamson's
release and satisfaction of all claims for damages.
Since the settlement removed a contingency that existed at December 31, 2000
before the Company filed its Form 10-K for 2000, PW Eagle is required to adjust
its financial results for the three months and year ended December 31, 2000 to
give effect to an additional non-recurring expense accrual of $1,965,000. This
additional accrual reduces the Company's net income for 2000 by $1,214,000 or
$.16 per share basic and $.11 per share diluted. A summary of the adjusted
unaudited results for the fourth quarter and for the year ending December 31,
2000 and 1999 is set forth in the following table:
Income Statement Information
(IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS)
Three months ended Year ended
December 31, December 31,
(UNAUDITED)
----------------------------------------------------------
2000 1999 2000 1999
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NET SALES $ 59,009 $73,754 $ 343,974 $ 153,950
GROSS PROFIT $ 209 $22,868 $ 87,358 $ 43,465
NET INCOME (LOSS) $ (8,706) $ 6,304 $ 18,218 $ 14,562
BASIC EARNINGS (LOSS) PER SHARE $ (1.10) $ .87 $ 2.34 $ 1.88
DILUTED EARNINGS (LOSS) PER SHARE $ (1.10) $ .63 $ 1.72 $ 1.48
EBITDA $ (8,475) $13,100 $ 51,862 $ 21,525
PW Eagle, Inc. is a leading extruder of PVC pipe and polyethylene tubing
products. The Company operates ten manufacturing facilities in the midwestern
and western United States. PW Eagle's common stock is traded on the Nasdaq
National Market under the symbol "PWEI".
- FINANCIALS FOLLOW -
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PW EAGLE, INC.
CONDENSED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED DEC. 31, YEAR ENDED DEC. 31,
2000 1999 2000 1999
--------------------------------------------------------------
NET SALES $59,009 $73,754 $343,974 $153,950
COST OF GOODS SOLD 58,800 50,886 256,616 110,485
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Gross profit 209 22,868 87,358 43,465
OPERATING EXPENSES:
Selling expenses 5,905 7,529 28,168 16,855
General and administrative expenses 2,960 3,395 13,290 5,979
Nonrecurring items (30) 800 (195) 1,963
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8,835 11,724 41,263 24,797
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OPERATING INCOME (LOSS) (8,626) 11,144 46,095 18,668
OTHER EXPENSES (INCOME):
Interest expense 3,022 3,293 13,655 5,125
Other income, net (2) (19) (249) (226)
Nonrecurring items 2,145 - 2,845 1,825
--------------------------------------------------------------
5,165 3,274 16,251 6,724
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INCOME (LOSS) BEFORE INCOME TAXES (13,791) 7,870 29,844 11,944
INCOME TAX EXPENSE (BENEFIT) (5,085) 1,566 11,626 (2,618)
--------------------------------------------------------------
NET INCOME (LOSS) (8,706) 6,304 18,218 14,562
PREFERRED STOCK DIVIDEND AND LOSS ON
REDEMPTION - - - 1,401
--------------------------------------------------------------
NET INCOME (LOSS) APPLICABLE TO COMMON $(8,706) $6,304 $18,218 $13,161
STOCK
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NET INCOME (LOSS) PER COMMON SHARE:
Basic $(1.10) $.87 $2.34 $ 1.88
==============================================================
Diluted $(1.10) $.63 $1.72 $ 1.48
==============================================================
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic 7,883 7,280 7,778 6,998
Diluted N/A 10,001 10,592 9,812
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PW EAGLE, INC.
CONDENSED BALANCE SHEETS
(IN THOUSANDS, EXCEPT FOR SHARES AND PER SHARE AMOUNTS)
ASSETS DEC. 31, 2000 DEC. 31, 1999
------------- -------------
CURRENT ASSETS:
Cash and cash equivalents $816 $2,669
Accounts receivable, net 18,246 26,159
Inventories 44,391 45,777
Deferred income taxes 3,491 2,487
Income tax receivable 3,376 -
Other 291 233
-----------------------------------
Total current assets 70,611 77,325
Property and equipment, net 76,589 74,895
OTHER ASSETS:
Deferred financing costs, net 3,940 5,300
Land held for sale 655 1,346
Goodwill, less accumulated amortization of $705 and $593, respectively 3,763 3,874
Deferred income taxes - 4,901
Other 2,821 146
-----------------------------------
11,179 15,567
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TOTAL ASSETS $158,379 $167,787
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Borrowings under revolving credit facility $16,458 $30,558
Current maturities of long-term debt 10,408 10,441
Accounts payable 7,839 22,347
Accrued liabilities 16,447 12,244
-----------------------------------
Total current liabilities 51,152 75,590
OTHER LONG-TERM LIABILITIES 2,713 -
DEFERRED INCOME TAXES 1,080 -
LONG-TERM DEBT, less current maturities 27,500 37,500
SENIOR SUBORDINATED DEBT 28,068 26,752
COMMITMENTS AND CONTINGENCIES
STOCK WARRANTS 5,887 5,887
STOCKHOLDERS' EQUITY:
Series A preferred stock, 7% cumulative dividend; convertible; $2 per - 38
share liquidation preference; no par value; 2,000,000 shares authorized;
issued and outstanding none and 18,750 shares, respectively
Undesignated stock, $.01 par value; 14,490,000 shares authorized; - -
none issued and outstanding
Common stock, $.01 par value; 30,000,000 shares authorized; issued 81 77
and outstanding 8,069,675 and 7,721,214 shares, respectively
Class B Common stock, $.01 par value; 3,500,000 shares authorized; - -
none issued and outstanding
Additional paid-in capital 40,521 39,013
Unearned compensation (473) (587)
Notes receivable from officers and employees on common stock
purchases (1,181) (1,296)
Retained earnings/(accumulated deficit) 3,031 (15,187)
-----------------------------------
Total stockholders' equity 41,979 22,058
-----------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $158,379 $167,787
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