Northwest Pipe Company (NWPX, Financial) filed Quarterly Report for the period ended 2009-06-30.
Northwest Pipe Company manufactures welded steel pipe in two business segments. In its Water Transmission business they are a supplier of large diameter high-pressure steel pipe used primarily for water transmission. In its Tubular Products business they manufacture smaller diameter electric resistance welded steel pipe for use in a wide range of construction agricultural energy and industrial applications. Northwest Pipe Company has a market cap of $309.2 million; its shares were traded at around $33.47 with a P/E ratio of 13.2 and P/S ratio of 0.7. Northwest Pipe Company had an annual average earning growth of 19.6% over the past 5 years.
Water Transmission gross profit decreased $1.9 million, or 13.2%, to $12.8 million (21.6% of segment net sales) in the second quarter of 2009 from $14.8 million (19.7% of segment net sales) in the second quarter of 2008 and decreased $5.1 million, or 17.5%, from $29.2 million (21.1% of segment net sales) in the first half of 2008 to $24.1 million (20.4% of segment net sales) in the first half of 2009. Water Transmission gross profit as a percentage of segment net sales fluctuated slightly from the same periods last year due to the variations in the gross profit of the projects in production in the current periods. Gross profit of projects awarded and produced
Gross profit (loss) from Tubular Products decreased 126.0% to a loss of $2.6 million (-16.4% of segment net sales) in the second quarter of 2009 from $9.8 million (26.4% of segment net sales) in the second quarter of 2008 and decreased 108.4% to a loss of $1.1 million (-2.9% of segment net sales) in the first half of 2009 from $13.2 million (19.5% of segment net sales) in the first half of 2008. Despite the fact that raw material costs decreased, margins turned negative as selling prices dropped significantly and demand declined.
Interest Expense, net. Interest expense, net decreased to $1.0 million in the second quarter of 2009 from $1.3 million in the second quarter of 2008 and decreased to $2.3 million in the first six months of 2009 from $3.1 million in the first six months of 2008. The decrease in the expense compared to the same periods last year was a result of lower average borrowings at a lower average interest rate, combined with an increase in interest income.
Income Taxes. The provision for income taxes was $1.1 million in the second quarter of 2009, based on an effective tax rate of approximately 30.6%, compared to $5.6 million for the same period last year, based on an expected tax rate of approximately 40.0%. The provision for income taxes was $2.7 million for the first six months of 2009, based on an effective tax rate of approximately 34.8%, compared to $8.6 million for the same period last year, based on an effective tax rate of approximately 38.9%. The decrease in our effective tax rate is due to increased international activity, which is generally taxed at rates lower than our federal statutory rate.
We had the following significant components of debt at June 30, 2009: a $150.0 million credit agreement, under which $41.7 million was outstanding; $10.7 million of Series A Term Note, $7.5 million of Series B Term Notes, $8.5 million of Series C Term Notes and $3.9 million of Series D Term Notes.
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Northwest Pipe Company manufactures welded steel pipe in two business segments. In its Water Transmission business they are a supplier of large diameter high-pressure steel pipe used primarily for water transmission. In its Tubular Products business they manufacture smaller diameter electric resistance welded steel pipe for use in a wide range of construction agricultural energy and industrial applications. Northwest Pipe Company has a market cap of $309.2 million; its shares were traded at around $33.47 with a P/E ratio of 13.2 and P/S ratio of 0.7. Northwest Pipe Company had an annual average earning growth of 19.6% over the past 5 years.
Highlight of Business Operations:
Gross Profit. Gross profit decreased 58.3% to $10.3 million (13.7% of total net sales) in the second quarter of 2009 from $24.6 million (22.0% of total net sales) in the second quarter of 2008 and decreased 45.7% from $42.4 million (20.6% of total net sales) in the first half of 2008 to $23.0 million (14.7% of total net sales) in the first half of 2009.Water Transmission gross profit decreased $1.9 million, or 13.2%, to $12.8 million (21.6% of segment net sales) in the second quarter of 2009 from $14.8 million (19.7% of segment net sales) in the second quarter of 2008 and decreased $5.1 million, or 17.5%, from $29.2 million (21.1% of segment net sales) in the first half of 2008 to $24.1 million (20.4% of segment net sales) in the first half of 2009. Water Transmission gross profit as a percentage of segment net sales fluctuated slightly from the same periods last year due to the variations in the gross profit of the projects in production in the current periods. Gross profit of projects awarded and produced
Gross profit (loss) from Tubular Products decreased 126.0% to a loss of $2.6 million (-16.4% of segment net sales) in the second quarter of 2009 from $9.8 million (26.4% of segment net sales) in the second quarter of 2008 and decreased 108.4% to a loss of $1.1 million (-2.9% of segment net sales) in the first half of 2009 from $13.2 million (19.5% of segment net sales) in the first half of 2008. Despite the fact that raw material costs decreased, margins turned negative as selling prices dropped significantly and demand declined.
Interest Expense, net. Interest expense, net decreased to $1.0 million in the second quarter of 2009 from $1.3 million in the second quarter of 2008 and decreased to $2.3 million in the first six months of 2009 from $3.1 million in the first six months of 2008. The decrease in the expense compared to the same periods last year was a result of lower average borrowings at a lower average interest rate, combined with an increase in interest income.
Income Taxes. The provision for income taxes was $1.1 million in the second quarter of 2009, based on an effective tax rate of approximately 30.6%, compared to $5.6 million for the same period last year, based on an expected tax rate of approximately 40.0%. The provision for income taxes was $2.7 million for the first six months of 2009, based on an effective tax rate of approximately 34.8%, compared to $8.6 million for the same period last year, based on an effective tax rate of approximately 38.9%. The decrease in our effective tax rate is due to increased international activity, which is generally taxed at rates lower than our federal statutory rate.
We had the following significant components of debt at June 30, 2009: a $150.0 million credit agreement, under which $41.7 million was outstanding; $10.7 million of Series A Term Note, $7.5 million of Series B Term Notes, $8.5 million of Series C Term Notes and $3.9 million of Series D Term Notes.
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