EX-99.1 2 d367480dex991.htm 2012 ANNUAL SHAREHOLDER MEETING PRESENTATION

2012 Annual Shareholder Meeting June 14, 2012 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-Q 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.

3 Investment Highlights • Strong energy pipe markets • Industry leader with strategically located water transmission manufacturing facilities • Strategic plan to capitalize on current position and new opportunities • Experienced, energized and proven management team

4 Northwest Pipe at a Glance • Diversified manufacturer of welded steel pipe for water infrastructure, energy, agricultural, industrial and other uses • Industry leader – Over 100 years of operating history – Widely recognized for quality and customer service • National presence • Record net sales in 2011 Net Sales 2007-2011

5 Northwest Pipe Company Locations 5

6 Income Statement Summary ($ in millions) 2010 2011 Q1-2012 Net Sales Water Transmission $ 221.3 $ 271.9 $ 58.4 Tubular Products 165.5 239.8 83.8 Net Sales 386.8 511.7 142.2 Gross Profit Water Transmission 19.4 43.2 9.7 Tubular Products 10.3 15.9 6.8 Gross Profit 29.7 59.1 16.5 SG&A 29.1 26.3 7.3 Operating Income/(Loss) 0.6 32.8 9.2 Other (Income)/Expense (0.4) 1.3 0.1 Interest Income (0.8) (0.1) (0.0) Interest Expense 8.9 9.3 1.6 Income/(Loss) Before Taxes (7.1) 22.3 7.5 Provision/(Benefit) for Income Taxes (1.7) 9.6 2.8 Net Income/(Loss) (5.4) 12.7 4.7 Diluted Earnings per Share $ (0.59) $ 1.35 $ 0.50

7 Backlog

8 Balance Sheet Summary ($ in millions) Dec. 31, 2010 Dec. 31, 2011 Mar. 31, 2012 Assets Cash and Cash Equivalents $ 0.1 $ 0.2 $ 0.1 Trade and Other Receivables, Net 66.5 69.9 64.9 Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts 45.5 38.0 44.1 Inventories 80.9 107.2 98.6 Other Current Assets 23.5 11.6 12.2 Total Current Assets 216.5 226.9 219.9 Property and Equipment, Net 154.3 152.8 153.2 Other Assets 44.1 33.7 34.4 Total Assets $ 414.9 $ 413.4 $ 407.5 Liabilities Current Maturities of Long-Term Debt $ 9.0 $ 9.1 $ 9.0 Accounts Payable 28.5 20.2 21.4 Accrued Liabilities 11.5 19.2 21.6 Billings in Excess of Cost and Estimated Earnings on Uncompleted Contracts 14.8 7.8 4.4 Total Current Liabilities 63.7 56.3 56.4 Long-Term Note Payable to Financial Institution 68.0 62.0 53.8 Other Long-Term Debt, Less Current Maturities 33.5 24.4 20.9 Other Liabilities 23.3 30.4 30.9 Total Liabilities 188.6 173.1 162.0 Stockholders' Equity 226.3 240.3 245.5 Total Liabilities and Stockholders' Equity $ 414.9 $ 413.4 $ 407.5

Tubular Products

10 Tubular Net Sales $$ by Product Group Energy 73% Non-Energy 27% 2011 Energy 61% Non-Energy 39% 2010 Energy 82% Non - Energy 18% Q1-2012

11 U.S. Rig Counts

12 Hydraulic Fracturing

13 U.S. Shale Formations

Water Transmission

15 Well Positioned Industry Leader • Largest, most flexible capacity in the market • Strong relationships with public water agencies, contractors, engineering firms – Assist in development process of projects prior to bidding • Competitive position – Experienced workforce – Low freight costs – Excellent reputation for quality and service – Wide range of capabilities to address varying market needs – Emphasis on continuous improvement and customer service

16 Water Infrastructure Overview • Intakes, Raw Water Lines • Pump Stations • Pipeline Linings & Coatings (rehab) • Corrosion Protection/Monitoring • Couplings, Valves & Pumps • Interior & Yard Piping • Water Treatment Systems • Quality Monitoring • Flow Control Sewer Treatment Products • Gravity Sewer Pipe & Force Mains • Water Quality Monitoring • Treatment Instrumentation • Manways, Culverts, & Vault Boxes • Water Storage Tanks • Commercial Water Mains • Residential Water Lines • Industrial (Power Plants, Agriculture, Mining) Systems • Couplings, Valves & Pumps Water Supply Products Water Treatment Products Water Distribution Products

17 Current Conditions and a Look Ahead • Difficult market conditions in 2012 as water infrastructure projects compete with other infrastructure needs and municipal funding decreases • The bidding activity is significantly lower in 2012 • Emergency drought-related work and expected infrastructure projects in Texas should improve results in 2013 and beyond.

18 Tarrant Regional Water District Integrated Pipeline Project (IPL) Source: Tarrant Regional Water District http://www.trwd.com/IPLMap.aspx • The pipeline will run from Lake Palestine to Lake Benbrook, with connections to Cedar Creek and Richland- Chambers Reservoirs • It will integrate TRWD's existing pipelines to the Dallas system to provide up to an additional 350 million gallons per day (MGD) of raw water to North Central Texas

19 Timeline / Project Components Source: Tarrant Regional Water District http://www.trwd.com/IPLMap.aspx • IPL Components: – 150 miles of buried pipeline • 72 - 108” diameter welded steel pipe* – 3 lake intake pump stations – 2 booster pump stations • Communities Served: – DFW metroplex – Ellis County • Cost: – Estimated over $1.6 B • Water delivery could begin by 2021

20 Northwest Pipe Strategic Plans • Double EBITDA from 2011 to 2014 • Improve margins – Increase yields – Decrease downtime – Decrease costs • Capital investment in Atchison, KS to take advantage of line pipe market • Capital investment in Saginaw, TX to take advantage of large water infrastructure opportunities seen towards end of 2013 and beyond • Pursue strategic investment opportunities that will encourage growth but not distract management

2012 Annual Shareholder Meeting June 14, 2012