10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: March 31, 2019

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission File Number: 0-27140

NORTHWEST PIPE COMPANY

(Exact name of registrant as specified in its charter)

OREGON	93-0557988
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

201 NE Park Plaza Drive, Suite 100

Vancouver, Washington 98684

(Address of principal executive offices and Zip Code)

360-397-6250

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes  ☐    No  ☒

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	NWPX	Nasdaq Global Select Market
Preferred Stock Purchase Rights	n/a	Nasdaq Global Select Market

The number of shares outstanding of the registrant’s common stock as of May 1, 2019 was 9,735,055 shares.

NORTHWEST PIPE COMPANY

FORM 10-Q

TABLE OF CONTENTS

	Page
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited):
Condensed Consolidated Statements of Operations for the three months ended March 31, 2019 and 2018	2
Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2019 and 2018	3
Condensed Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018	4
Condensed Consolidated Statements of Stockholders’ Equity for the three months ended March 31, 2019 and 2018	5
Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2019 and 2018	6
Notes to Condensed Consolidated Financial Statements	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3. Quantitative and Qualitative Disclosures About Market Risk	22
Item 4. Controls and Procedures	23
PART II - OTHER INFORMATION
Item 1. Legal Proceedings	23
Item 1A. Risk Factors	23
Item 6. Exhibits	24
Signatures	25

1

Part I – FINANCIAL INFORMATION

Item 1. Financial Statements

NORTHWEST PIPE COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share amounts)

	Three Months Ended March 31,
	2019			2018
Net sales	$	62,643		$	33,365
Cost of sales		56,072			32,017
Gross profit		6,571			1,348
Selling, general, and administrative expense		4,247			3,385
Restructuring expense		-			305
Operating income (loss)		2,324			(2,342	)
Other income		159			170
Interest income		4			77
Interest expense		(131	)		(128	)
Income (loss) before income taxes		2,356			(2,223	)
Income tax expense (benefit)		191			(272	)
Net income (loss)	$	2,165		$	(1,951	)
Net income (loss) per share:
Basic	$	0.22		$	(0.20	)
Diluted	$	0.22		$	(0.20	)
Shares used in per share calculations:
Basic		9,735			9,707
Diluted		9,735			9,707

The accompanying notes are an integral part of these condensed consolidated financial statements.

2

NORTHWEST PIPE COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(In thousands)

	Three Months Ended March 31,
	2019			2018
Net income (loss)	$	2,165		$	(1,951	)
Other comprehensive income (loss), net of tax:
Pension liability adjustment		26			24
Unrealized gain (loss) on cash flow hedges		(15	)		25
Other comprehensive income, net of tax		11			49
Comprehensive income (loss)	$	2,176		$	(1,902	)

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

NORTHWEST PIPE COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollar amounts in thousands, except per share amounts)

	March 31, 2019			December 31, 2018
Assets
Current assets:
Cash and cash equivalents	$	3,843		$	6,677
Trade and other receivables, less allowance for doubtful accounts of $564 and $660		27,791			34,394
Contract assets		70,267			74,271
Inventories		41,116			39,376
Prepaid expenses and other		4,505			4,795
Total current assets		147,522			159,513
Property and equipment, less accumulated depreciation and amortization of $79,438 and $76,861		102,397			103,447
Other assets		16,606			8,390
Total assets	$	266,525		$	271,350
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	15,524		$	19,784
Accrued liabilities		8,916			7,963
Contract liabilities		4,530			3,745
Total current liabilities		28,970			31,492
Borrowings on line of credit		-			11,464
Other long-term liabilities		16,767			9,804
Total liabilities		45,737			52,760
Commitments and contingencies (Note 8)
Stockholders’ equity:
Preferred stock, $.01 par value, 10,000,000 shares authorized, none issued or outstanding		-			-
Common stock, $.01 par value, 15,000,000 shares authorized, 9,735,055 shares issued and outstanding		97			97
Additional paid-in-capital		118,857			118,835
Retained earnings		103,594			101,194
Accumulated other comprehensive loss		(1,760	)		(1,536	)
Total stockholders’ equity		220,788			218,590
Total liabilities and stockholders’ equity	$	266,525		$	271,350

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

NORTHWEST PIPE COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

(Dollar amounts in thousands)

									Accumulated
					Additional				Other			Total
	Common Stock				Paid In		Retained		Comprehensive			Stockholders'
	Shares		Amount		Capital		Earnings		Loss			Equity
Balances, December 31, 2018		9,735,055	$	97	$	118,835	$	101,194	$	(1,536	)	$	218,590
Cumulative-effect adjustment for ASU 2018-02 (Note 13)		-		-		-		235		(235	)		-
Net income		-		-		-		2,165		-			2,165
Other comprehensive income (loss):
Pension liability adjustment, net of tax expense of $0		-		-		-		-		26			26
Unrealized loss on cash flow hedges, net of tax benefit of $8		-		-		-		-		(15	)		(15	)
Share-based compensation expense		-		-		22		-		-			22
Balances, March 31, 2019		9,735,055	$	97	$	118,857	$	103,594	$	(1,760	)	$	220,788

											Accumulated
					Additional						Other			Total
	Common Stock				Paid In			Retained			Comprehensive			Stockholders'
	Shares		Amount		Capital			Earnings			Loss			Equity
Balances, December 31, 2017		9,619,755	$	96	$	119,856		$	81,757		$	(1,445	)	$	200,264
Cumulative-effect adjustment for ASC Topic 606		-		-		-			(875	)		-			(875	)
Net loss		-		-		-			(1,951	)		-			(1,951	)
Other comprehensive income:
Pension liability adjustment, net of tax expense of $0		-		-		-			-			24			24
Unrealized gain on cash flow hedges, net of tax expense of $5		-		-		-			-			25			25
Issuance of common stock under stock compensation plans		104,128		1		(1,302	)		-			-			(1,301	)
Share-based compensation expense		-		-		81			-			-			81
Balances, March 31, 2018		9,723,883	$	97	$	118,635		$	78,931		$	(1,396	)	$	196,267

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

NORTHWEST PIPE COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

	Three Months Ended March 31,
	2019			2018
Cash flows from operating activities:
Net income (loss)	$	2,165		$	(1,951	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and finance lease amortization		2,669			1,522
Amortization of intangible assets		108			119
Amortization of debt issuance costs		22			42
Provision for doubtful accounts		(81	)		87
Deferred income taxes		(10	)		(330	)
Loss on disposal of property and equipment		3			71
Share-based compensation expense		22			81
Unrealized (gain) loss on foreign currency forward contracts		86			(32	)
Changes in operating assets and liabilities:
Trade and other receivables		5,856			4,196
Contract assets, net		5,616			(3,236	)
Inventories		(1,740	)		610
Prepaid expenses and other assets		300			650
Accounts payable		(4,264	)		(3,045	)
Accrued and other liabilities		(395	)		(1,050	)
Net cash provided by (used in) operating activities		10,357			(2,266	)
Cash flows from investing activities:
Additions to property and equipment		(1,622	)		(744	)
Proceeds from sale of property and equipment		2			-
Net cash used in investing activities from continuing operations		(1,620	)		(744	)
Net cash provided by investing activities from discontinued operations		-			750
Net cash provided by (used in) investing activities		(1,620	)		6
Cash flows from financing activities:
Borrowings on line of credit		12,003			-
Repayments on line of credit		(23,467	)		-
Tax withholdings related to net share settlements of restricted stock and performance share awards		-			(1,301	)
Payments on finance lease obligations		(107	)		(94	)
Net cash used in financing activities		(11,571	)		(1,395	)
Change in cash and cash equivalents		(2,834	)		(3,655	)
Cash and cash equivalents, beginning of period		6,677			43,646
Cash and cash equivalents, end of period	$	3,843		$	39,991
Noncash investing and financing activities:
Accrued property and equipment purchases	$	339		$	168
Right-of-use assets obtained in exchange for operating lease liabilities	$	506		$	-
Right-of-use assets obtained in exchange for finance lease liabilities	$	-		$	458

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

NORTHWEST PIPE COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Basis of Presentation

The Condensed Consolidated Financial Statements include the accounts of Northwest Pipe Company (the “Company”) and its subsidiaries over which the Company exercises control as of the financial statement date. Intercompany accounts and transactions have been eliminated.

The Company operates in one business segment, Water Transmission, which produces steel pipeline systems, as well as reinforced concrete pipe and protective linings, primarily for use in drinking water infrastructure. These products are also used for hydroelectric power systems, wastewater systems, and other applications. In addition, the Company makes products for industrial plant piping systems and certain structural applications.

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are expressed in United States Dollars. The financial information as of December 31, 2018 is derived from the audited Consolidated Financial Statements presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (the “2018 Form 10-K”). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted, pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the accompanying Condensed Consolidated Financial Statements include all adjustments necessary (which are of a normal and recurring nature) for the fair statement of the results of the interim periods presented. The Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto together with management’s discussion and analysis of financial condition and results of operations contained in the Company’s 2018 Form 10-K.

Certain amounts from the prior year financial statements have been reclassified in order to conform to the current year presentation.

Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the entire fiscal year ending December 31, 2019.

The Company recorded revenue of $1.2 million during the three and twelve months ended December 31, 2018, which should have been recorded in the three months ended March 31, 2019. The misstatement in the timing of revenue recognition was due to an error in the measurement of costs incurred to date relative to estimated total direct costs at a recently acquired Ameron Water Transmission Group, LLC (“Ameron”) facility. Management concluded that this out of period adjustment was not material to the consolidated financial results for the year ended December 31, 2018 or to the projected financial results for 2019.

2. Business Combination

On July 27, 2018, the Company completed the acquisition of 100% of Ameron Water Transmission Group, LLC for a purchase price of $38.1 million in cash. The results of Ameron’s operations have been included in the consolidated financial statements since that date. Ameron was a major supplier of engineered welded steel pressure pipe as well as reinforced concrete pipe. In addition to strengthening the Company's position in the water transmission pipe market, this acquisition expands the Company’s bar-wrapped concrete cylinder pipe capabilities and adds reinforced concrete pipe and T-Lock^®—a proprietary polyvinyl chloride (PVC) lining for concrete pipe sewer applications—to the Company’s product portfolio. In connection with the acquisition, the Company acquired pipe facilities in Tracy, California and San Luis Río Colorado, Mexico, as well as a protective lining facility in Brea, California.

7

The following table summarizes the purchase consideration and preliminary fair value of the assets acquired and liabilities assumed as of July 27, 2018 (in thousands):

Assets
Cash and cash equivalents	$	912
Trade and other receivables		8,887
Contract assets		12,018
Inventories		7,937
Prepaid expenses and other		3,777
Property and equipment		34,827
Other assets		320
Total assets acquired		68,678
Liabilities
Accounts payable		5,520
Accrued liabilities		1,599
Contract liabilities		123
Deferred income taxes		3,221
Total liabilities assumed		10,463
Bargain purchase gain		(20,080	)
Total purchase consideration	$	38,135

The asset and liability fair value measurements are preliminary, primarily related to income, deferred, and foreign taxes, and are subject to change as additional information is obtained and certain tax returns are finalized. The Company recorded no measurement period adjustments during the three months ended March 31, 2019. The purchase price allocation will be finalized as soon as practicable within the measurement period, but not later than one year following the acquisition date.

The excess of the aggregate net fair value of assets acquired and liabilities assumed over the fair value of consideration transferred as the purchase price has been recorded as a bargain purchase gain. When it became apparent there was a potential for a bargain purchase gain, management reviewed the Ameron assets acquired and liabilities assumed as well as the assumptions utilized in estimating their fair values. Upon completion of this reassessment, the Company concluded that recording a bargain purchase gain with respect to Ameron was appropriate and required under U.S. GAAP. The Company believes the seller was motivated to complete the transaction as part of an overall repositioning of its business.

The Company incurred acquisition-related costs during the three months ended March 31, 2019 and 2018 of $0.1 million and approximately $0, respectively. These costs are included in Selling, general, and administrative expense in the Condensed Consolidated Statements Operations.

The following unaudited pro forma summary presents the consolidated results of the Company as if the acquisition of Ameron had occurred on January 1 of the year prior to the acquisition (in thousands):

	Three Months Ended March 31, 2018
Net sales	$	43,567
Net loss		(22,614	)

8

This unaudited pro forma consolidated financial data is included only for the purpose of illustration and does not necessarily indicate what the operating results would have been if the acquisition had occurred on January 1 of the year prior to the acquisition. Moreover, this information is not indicative of what the Company’s future operating results will be. The information prior to the acquisition is included based on prior accounting records maintained by Ameron. The pro forma amounts have been calculated after applying the Company’s accounting policies and adjusting the results of Ameron to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property and equipment and intangible assets had been applied on January 1 of the year prior to the acquisition, and the consequential tax effects. There were no material, non-recurring adjustments to this unaudited pro forma information.

3. Discontinued Operations

On December 26, 2017, the Company completed the sale of substantially all of the assets associated with the Company’s manufacturing facility in Atchison, Kansas, including all of the real and tangible personal property located at the site of that manufacturing facility. Total consideration of $37.2 million in cash was paid by the buyer, resulting in a nominal gain recognized on the sale. Of the proceeds received, $0.8 million was placed in escrow until it was released in February 2018 and $3.7 million was placed in escrow until it was released in December 2018. In accordance with applicable accounting guidance, cash flows from the Company’s discontinued operations are presented separately in the Condensed Consolidated Statements of Cash Flows.

4. Inventories

Inventories consist of the following (in thousands):

	March 31, 2019		December 31, 2018
Current inventories:
Raw materials	$	37,381	$	34,426
Work-in-process		1,409		2,368
Finished goods		824		1,075
Supplies		1,502		1,507
Total current inventories	$	41,116	$	39,376

5. Leases

The Company has entered into various equipment and property leases with terms of ten years or less. Certain lease agreements include renewals and/or purchase options set to expire at various dates, and certain lease agreements include rental payments adjusted periodically for inflation. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company determines if an arrangement is a lease at inception. Leases with an initial term of twelve months or less are not recorded on the balance sheet; costs for these leases are recognized on a straight-line basis over the lease term. Right-of-use assets and lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of the Company's leases do not provide an implicit rate of return, the Company uses its asset-based lending rate in determining the present value of lease payments. The Company has lease agreements with lease and non-lease components, which are accounted for separately.

9

Lease cost consists of the following (in thousands):

	Three Months Ended March 31,
	2019
Finance lease cost:
Amortization of right-of-use assets	$	109
Interest on lease liabilities		15
Operating lease cost		425
Short-term lease cost		262
Variable lease cost		40
Total lease cost	$	851

The future maturities of lease liabilities as of March 31, 2019 are as follows (in thousands):

	Finance Leases			Operating Leases
2019	$	348		$	1,334
2020		375			1,664
2021		258			1,134
2022		237			903
2023		34			752
Thereafter		-			4,338
Total lease payments		1,252			10,125
Amount representing interest		(103	)		(1,839	)
Present value of lease liabilities		1,149			8,286
Current portion of lease liabilities, included in Accrued liabilities		(393	)		(1,426	)
Lease liabilities, less current portion, included in Other long-term liabilities	$	756		$	6,860

The following table summarizes the lease terms and discount rates for the lease liabilities:

	March 31, 2019
Weighted-average remaining lease term (years)
Finance leases		3.28
Operating leases		8.85
Weighted-average discount rate
Finance leases		5.03	%
Operating leases		4.55	%

The following table presents other information related to the operating and finance leases (in thousands):

	Three Months Ended March 31,
	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(415	)
Operating cash flows from finance leases		(15	)
Financing cash flows from finance leases		(107	)
Right-of-use assets obtained in exchange for operating lease liabilities		506
Right-of-use assets obtained in exchange for finance lease liabilities		-

10

6. Fair Value Measurements

The Company records its financial assets and liabilities at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants at the measurement date.

The authoritative guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. These levels are: Level 1 (inputs are quoted prices in active markets for identical assets or liabilities); Level 2 (inputs are other than quoted prices that are observable, either directly or indirectly through corroboration with observable market data); and Level 3 (inputs are unobservable, with little or no market data that exists, such as internal financial forecasts). The Company is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The following table summarizes information regarding the Company’s financial assets and liabilities that are measured at fair value on a recurring basis (in thousands):

	Total		Level 1		Level 2		Level 3
As of March 31, 2019
Financial assets:
Deferred compensation plan	$	5,125	$	4,328	$	797	$	-
As of December 31, 2018
Financial assets:
Deferred compensation plan	$	4,719	$	3,925	$	794	$	-
Foreign currency forward contracts		101		-		101		-
Total financial assets	$	4,820	$	3,925	$	895	$	-

The deferred compensation plan assets consist of cash and several publicly traded stock and bond mutual funds, valued using quoted market prices in active markets, classified as Level 1 within the fair value hierarchy, as well as guaranteed investment contracts, valued at principal plus interest credited at contract rates, classified as Level 2 within the fair value hierarchy.

The Company’s foreign currency forward contracts, which are derivatives accounted for as cash flow hedges, are valued using various pricing models or discounted cash flow analyses that incorporate observable market parameters, such as interest rate yield curves and currency rates, classified as Level 2 within the fair value hierarchy. Derivative valuations incorporate credit risk adjustments that are necessary to reflect the probability of default by the counterparty or the Company. Foreign currency forward contracts are presented at their gross fair values. Foreign currency forward contract assets are included within Prepaid expenses and other and foreign currency forward contract liabilities are included within Accrued liabilities in the Condensed Consolidated Balance Sheets.

The net carrying amounts of cash and cash equivalents, trade and other receivables, accounts payable, accrued liabilities, and borrowings on the line of credit approximate fair value due to the short-term nature of these instruments.

7. Share-based Compensation

The Company has one active stock incentive plan for employees and directors, the 2007 Stock Incentive Plan, which provides for awards of stock options to purchase shares of common stock, stock appreciation rights, restricted and unrestricted shares of common stock, restricted stock units (“RSUs”), and performance share awards (“PSAs”).

The Company recognizes the compensation cost of employee and director services received in exchange for awards of equity instruments based on the grant date estimated fair value of the awards. Share-based compensation cost is recognized over the period during which the employee or director is required to provide service in exchange for the award and, as forfeitures occur, the associated compensation cost recognized to date is reversed. For awards with performance-based payout conditions, the Company recognizes compensation cost based on the probability of achieving the performance conditions, with changes in expectations recognized as an adjustment to earnings in the period of change. Any recognized compensation cost is reversed if the conditions are ultimately not met.

11

The following table summarizes share-based compensation expense recorded (in thousands):

	Three Months Ended March 31,
	2019		2018
Cost of sales	$	6	$	17
Selling, general, and administrative expense		16		64
Total	$	22	$	81

Stock Option Awards

A summary of option activity under the Company’s stock option plans is presented below:

	Options Outstanding		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life		Aggregate Intrinsic Value
					(in years)		(In thousands)
Balance, December 31, 2018		24,000	$	24.15
Options granted		-		-
Options exercised		-		-
Options canceled		-		-
Balance, March 31, 2019		24,000		24.15
Exercisable, March 31, 2019		24,000		24.15		1.00	$	-

Restricted Stock Units and Performance Share Awards

RSUs and PSAs are measured at the estimated fair value on the date of grant. RSUs are service-based awards and vest according to vesting schedules, which range from immediate to ratably over a three-year period. PSAs are service-based awards that vest according to the terms of the grant and may have performance- and/or market-based payout conditions.

A summary of activity under the Company’s RSUs and PSAs is presented below:

	Number of RSUs and PSAs (1)			Weighted- Average Grant Date Fair Value
Unvested PSAs as of December 31, 2018		39,992		$	19.97
RSUs and PSAs granted		86,701			23.56
Unvested RSUs and PSAs canceled		-			-
PSAs vested (2)		(39,992	)		19.97
Unvested RSUs and PSAs as of March 31, 2019		86,701			23.56

(1)	The number of PSAs disclosed in this table are at the target level of 100%.
(2)	The PSAs vested on March 29, 2019; the actual number of common shares that were issued was determined by multiplying the PSAs by a payout percentage of 0%, as the performance-based conditions were not achieved.

The unvested balance of RSUs and PSAs as of March 31, 2019 includes approximately 65,000 performance-based PSAs at a target level of performance. The vesting of these awards is subject to the achievement of specified performance-based conditions, and the actual number of common shares that will ultimately be issued will be determined by multiplying this number of PSAs by a payout percentage ranging from 0% to 150%.

As of March 31, 2019, unrecognized compensation expense related to the unvested portion of the Company’s RSUs and PSAs was $2.2 million, which is expected to be recognized over a weighted-average period of 2.2 years.

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8. Commitments and Contingencies

Portland Harbor Superfund Site

In December 2000, a section of the lower Willamette River known as the Portland Harbor Superfund Site was included on the National Priorities List at the request of the United States Environmental Protection Agency (“EPA”). While the Company’s Portland, Oregon manufacturing facility does not border the Willamette River, an outfall from the facility’s stormwater system drains into a neighboring property’s privately owned stormwater system and slip. Since the listing of the site, the Company was notified by the EPA and the Oregon Department of Environmental Quality (“ODEQ”) of potential liability under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”). A remedial investigation and feasibility study of the Portland Harbor Superfund Site was directed by a group of 14 potentially responsible parties known as the Lower Willamette Group under agreement with the EPA. The EPA finalized the remedial investigation report in February 2016, and the feasibility study in June 2016, which identified multiple remedial alternatives. In January 2017, the EPA issued its Record of Decision selecting the remedy for cleanup at the Portland Harbor Superfund Site, which it believes will cost approximately $1 billion and 13 years to complete. The EPA has not yet determined who is responsible for the costs of cleanup or how the cleanup costs will be allocated among the more than 150 potentially responsible parties. Because of the large number of potentially responsible parties and the variability in the range of remediation alternatives, the Company is unable to estimate an amount or an amount within a range of costs for its obligation with respect to the Portland Harbor Superfund Site matters, and no further adjustment to the Condensed Consolidated Financial Statements has been recorded as of the date of this filing.

In 2001, groundwater containing elevated volatile organic compounds was identified in one localized area of leased property adjacent to the Portland facility. In February 2005, the Company entered into a Voluntary Agreement for Remedial Investigation and Source Control Measures (“Voluntary Agreement”) with the ODEQ, and has performed remedial investigation work required under the Voluntary Agreement. In 2016, the EPA and the ODEQ requested additional groundwater sampling. The results of this sampling, which is ongoing, have been generally consistent with previous sampling and modeling work. The Company anticipates it will file a final Remedial Investigation/Source Control Evaluation report with the ODEQ and the EPA in 2019; based on discussions with the ODEQ and the EPA, the Company believes the selected remedy will be Monitored Natural Attenuation.

Concurrent with the activities of the EPA and the ODEQ, the Portland Harbor Natural Resources Trustee Council (“Trustees”) sent some or all of the same parties, including the Company, a notice of intent to perform a Natural Resource Damage Assessment (“NRDA”) for the Portland Harbor Superfund Site to determine the nature and extent of natural resource damages under CERCLA Section 107. The Trustees for the Portland Harbor Superfund Site consist of representatives from several Northwest Indian Tribes, three federal agencies, and one state agency. The Trustees act independently of the EPA and the ODEQ. The Trustees have encouraged potentially responsible parties to voluntarily participate in the funding of their injury assessments and several of those parties have agreed to do so. In June 2014, the Company agreed to participate in the injury assessment process, which included funding $0.4 million of the assessment. The Company has not assumed any additional payment obligations or liabilities with the participation with the NRDA. It is uncertain whether the Company will enter into an early settlement for natural resource damages or what costs it may incur in any such early settlement.

In January 2017, the Confederated Tribes and Bands of the Yakama Nation, a Trustee until they withdrew from the council in 2009, filed a complaint against the potentially responsible parties including the Company to recover costs related to their own injury assessment and compensation for natural resources damages. The Company does not have sufficient information to determine the likelihood of a loss in this matter or the amount of damages that could be allocated to the Company.

The Company has insurance policies for defense costs, as well as indemnification policies it believes will provide reimbursement for any share of the remediation assessed. However, the Company can provide no assurance that those policies will cover all of the costs which the Company may incur.

All Sites

The Company operates its facilities under numerous governmental permits and licenses relating to air emissions, stormwater runoff, and other environmental matters. The Company’s operations are also governed by many other laws and regulations, including those relating to workplace safety and worker health, principally the Occupational Safety and Health Act and regulations there under which, among other requirements, establish noise and dust standards. The Company believes it is in material compliance with its permits and licenses and these laws and regulations, and the Company does not believe that future compliance with such laws and regulations will have a material adverse effect on its financial position, results of operations, or cash flows.

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Other Contingencies and Legal Proceedings

From time to time, the Company is involved in litigation relating to claims arising out of its operations in the normal course of its business. The Company maintains insurance coverage against potential claims in amounts that are believed to be adequate. To the extent that insurance does not cover legal, defense, and indemnification costs associated with a loss contingency, the Company records accruals when such losses are considered probable and reasonably estimable. The Company believes that it is not presently a party to litigation, the outcome of which would have a material adverse effect on its business, financial condition, results of operations, or cash flows.

Guarantees

The Company has entered into certain letters of credit that total $1.6 million as of March 31, 2019. The letters of credit relate to workers’ compensation insurance.

9. Revenue

The Company manufactures water infrastructure steel pipe products, which are generally made to custom specifications for installation contractors serving projects funded by public water agencies. Generally, each of the Company’s contracts with its customers contains a single performance obligation, as the promise to transfer products is not separately identifiable from other promises in the contract and, therefore, is not distinct.

For a majority of contracts, revenue is recognized over time as the manufacturing process progresses because of the Company’s right to payment for work performed to date plus a reasonable profit on cancellations for unique products that have no alternative use to the Company. Revenue is measured by the costs incurred to date relative to the estimated total direct costs to fulfill each contract (cost-to-cost method). For a small number of contracts, revenue is recognized when all four of the following criteria have been satisfied: persuasive evidence of an arrangement exists, the price is fixed or determinable, delivery has occurred, and collectability is reasonably assured. Contract costs include all material, labor, and other direct costs incurred in satisfying the performance obligations. The cost of steel material is recognized as a contract cost when the steel is introduced into the manufacturing process. Changes in job performance, job conditions, and estimated profitability, including those arising from contract change orders, contract penalty provisions, foreign currency exchange rate movements, changes in raw materials costs, and final contract settlements may result in revisions to estimates of revenue, costs, and income, and are recognized in the period in which the revisions are determined.

Provisions for losses on uncompleted contracts, included in Accrued liabilities, are estimated by comparing total estimated contract revenue to the total estimated contract costs and a loss is recognized during the period in which it becomes probable and can be reasonably estimated.

The Company does not recognize revenue on a contract until the contract has approval and commitment from both parties, the contract rights and payment terms can be identified, the contract has commercial substance, and its collectability is probable.

Revisions in contract estimates resulted in an increase (decrease) in revenue of $(1.5) million and $0.8 million for the three months ended March 31, 2019 and 2018, respectively.

Contract Assets and Liabilities

Contract assets primarily represent revenue earned over time but not yet billable based on the terms of the contracts. These amounts will be billed based on the terms of the contracts, which include achievement of milestones, partial shipments, or completion of the contracts. Payment terms of amounts billed vary based on the customer, but are typically due within 30 days of invoicing. Contract liabilities represent amounts billed based on the terms of the contracts in advance of costs incurred and revenue earned.

Revenue recognized that was included in the Contract liabilities balance at the beginning of each period was $3.3 million and $1.7 million during the three months ended March 31, 2019 and 2018, respectively.

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Backlog

Backlog represents the balance of remaining performance obligations under signed contracts. As of March 31, 2019, backlog was approximately $167.3 million. The Company expects to recognize approximately 71% of the remaining performance obligations in 2019, 25% in 2020, and the balance thereafter.

10. Income Taxes

The Company files income tax returns in the United States Federal jurisdiction, in a limited number of foreign jurisdictions, and in many state jurisdictions. With few exceptions, the Company is no longer subject to United States Federal, state, or foreign income tax examinations for years before 2014.

The Company recorded an income tax expense (benefit) at an estimated effective income tax rate of 8.1% and 12.2% for the three months ended March 31, 2019 and 2018, respectively. The Company’s estimated effective income tax rate for the three months ended March 31, 2019 was impacted by the estimated changes in the Company’s valuation allowance.

The Company had $4.4 million of unrecognized income tax benefits as of March 31, 2019 and December 31, 2018. The Company does not believe it is reasonably possible that the total amounts of unrecognized income tax benefits will change in the following twelve months; however, actual results could differ from those currently expected. Effectively all of the unrecognized income tax benefits would affect the Company’s effective income tax rate if recognized at some point in the future. The Company recognizes interest and penalties related to uncertain income tax positions in Income tax expense (benefit).

11. Accumulated Other Comprehensive Loss

The following tables summarize changes in the components of Accumulated other comprehensive loss (in thousands). All amounts are net of income tax:

	Pension Liability Adjustment			Unrealized Gain (Loss) on Cash Flow Hedges			Total
Balance, December 31, 2018	$	(1,551	)	$	15		$	(1,536	)
Cumulative-effect adjustment for ASU 2018-02 (Note 13)		(235	)		-			(235	)
Other comprehensive income (loss) before reclassifications		23			(10	)		13
Amounts reclassified from Accumulated other comprehensive loss		3			(5	)		(2	)
Net current period adjustments to Other comprehensive income		26			(15	)		11
Balance, March 31, 2019	$	(1,760	)	$	-		$	(1,760	)

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The following table provides additional detail about Accumulated other comprehensive loss components that were reclassified to the Condensed Consolidated Statements of Operations (in thousands):

	Amount reclassified from Accumulated Other Comprehensive Loss						Affected line item in the
Details about Accumulated Other	Three Months Ended March 31,						Condensed Consolidated
Comprehensive Loss Components	2019			2018			Statements of Operations
Pension liability adjustment:
Net periodic pension cost:
Service cost	$	(3	)	$	-		Cost of sales
		(3	)		-		Net of tax
Unrealized gain (loss) on cash flow hedges:
Gain (loss) on cash flow hedges		7			(3	)	Net sales
Associated income tax (expense) benefit		(2	)		1		Income tax expense (benefit)
		5			(2	)	Net of tax
Total reclassifications for the period	$	2		$	(2	)

12. Net Income (Loss) per Share

Basic net income (loss) per share is computed by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by giving effect to all potential shares of common stock, including stock options, RSUs, and PSAs, to the extent dilutive. Performance-based PSAs are considered dilutive when the related performance conditions have been met assuming the end of the reporting period represents the end of the performance period. In periods with a net loss, all potential shares of common stock are excluded from the computation of diluted net loss per share as the impact would be antidilutive.

Net income (loss) per basic and diluted weighted-average common share outstanding was calculated as follows (in thousands, except per share amounts):

	Three Months Ended March 31,
	2019		2018
Net income (loss)	$	2,165	$	(1,951	)
Basic weighted-average common shares outstanding		9,735		9,707
Effect of potentially dilutive common shares(1)		-		-
Diluted weighted-average common shares outstanding		9,735		9,707
Net income (loss) per common share:
Basic	$	0.22	$	(0.20	)
Diluted	$	0.22	$	(0.20	)

(1) The weighted-average number of antidilutive shares not included in the computation of diluted net income per share was 24,000 for the three months ended March 31, 2019. The weighted-average number of antidilutive shares not included in the computation of diluted net loss per share was approximately 87,000 for the three months ended March 31, 2018, including approximately 34,000 of performance-based share awards, at the target level of 100%, that were not included because the performance conditions had not been met as of March 31, 2018.

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13. Recent Accounting and Reporting Developments

There have been no developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company’s Condensed Consolidated Financial Statements and disclosures in Notes to Condensed Consolidated Financial Statements, from those disclosed in the Company’s 2018 Form 10-K, except for the following:

Accounting Changes

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which requires lessees to recognize on the balance sheet right-of-use assets and lease liabilities for the rights and obligations created by the majority of leases, including those historically accounted for as operating leases. During 2018 and 2019, the FASB issued additional ASUs that clarify the implementation guidance for ASU 2016-02 but do not change the core principle of the guidance. The Company adopted Accounting Standards Codification (“ASC”) Topic 842, “Leases” on January 1, 2019 using the modified retrospective transition method which allowed it to continue to apply legacy guidance for periods prior to 2019. The Company elected the package of transition practical expedients which, among other things, allowed it to keep the historical lease classifications and not reassess the lease classification for any existing leases as of the date of adoption. The Company also made an accounting policy election to apply the short-term lease exception, which allows it to keep leases with an initial term of twelve months or less off the balance sheet. Upon adoption on January 1, 2019, the Company recognized right-of-use assets and lease liabilities for operating leases of approximately $8.0 million.

In August 2017, the FASB issued Accounting Standards Update No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” which better aligns risk management activities and financial reporting for hedging relationships, simplifies hedge accounting requirements, and improves disclosures of hedging arrangements. The Company adopted this guidance on January 1, 2019 and the impact was not material to the Company’s financial position, results of operations, or cash flows.

In February 2018, the FASB issued Accounting Standards Update No. 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”), which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. The Company adopted this guidance on January 1, 2019, which resulted in reclassification between Accumulated other comprehensive loss and Retained earnings of $0.2 million, and had no impact on the Company’s results of operations or cash flows.

In July 2018, the FASB issued Accounting Standards Update No. 2018-09, “Codification Improvements,” which clarifies, corrects errors in, or makes minor improvements to the ASC. The Company adopted this guidance on January 1, 2019 and the impact was not material to the Company’s financial position, results of operations, or cash flows.

14. Restructuring

In March 2018, the Company announced its plan to close its leased Permalok^® manufacturing facility in Salt Lake City, Utah and move the production to the Permalok^® production facility in St. Louis, Missouri, which was completed during the second quarter of 2018. Also in March 2018, the Company announced its plan to close its manufacturing facility in Monterrey, Mexico. Production ceased early in the second quarter of 2018, and the facility was sold in December 2018. The Company incurred restructuring expense of $0.3 million during the three months ended March 31, 2018, which includes employee severance and termination related restructuring expense of $0.2 million and expense related to demobilization activities of $0.1 million.

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15. Subsequent Event

On April 21, 2019, there was an accidental fire at the Company’s Saginaw, Texas facility which resulted in damage to the coatings building. There were no injuries, but the ability to coat at this facility will be impaired while the Company assesses and repairs the damage. The Company’s other production locations can be deployed to absorb whatever lost production it has as a result. The Company has insurance coverage in place covering, among other things, property damage and business interruption up to certain specified amounts, and has notified its insurers of the incident.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

This Management’s Discussion and Analysis of Financial Condition and Results of Operations and other sections of this Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 (“2019 Q1 Form 10-Q”) contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on current expectations, estimates, and projections about our business, management’s beliefs, and assumptions made by management. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “forecasts,” “should,” “could,” and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements as a result of a variety of important factors. While it is impossible to identify all such factors, those that could cause actual results to differ materially from those estimated by us include changes in demand and market prices for our products, product mix, bidding activity, the timing of customer orders and deliveries, production schedules, the price and availability of raw materials, price and volume of imported product, excess or shortage of production capacity, international trade policy and regulations, changes in tariffs and duties imposed on imports and exports and related impacts on us, our ability to identify and complete internal initiatives and/or acquisitions in order to grow our Water Transmission business, our ability to effectively integrate acquisitions into our business and operations and achieve significant administrative and operational cost synergies, the impacts of the Tax Cuts and Jobs Act of 2017, and other risks discussed in our Annual Report on Form 10-K for the year ended December 31, 2018 (“2018 Form 10-K”) and from time to time in our other Securities and Exchange Commission filings and reports. Such forward-looking statements speak only as of the date on which they are made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this 2019 Q1 Form 10-Q. If we do update or correct one or more forward-looking statements, investors and others should not conclude that we will make additional updates or corrections with respect thereto or with respect to other forward-looking statements.

Overview

Northwest Pipe Company is the largest manufacturer of engineered welded steel pipe water systems in North America. Our manufacturing facilities are strategically positioned to meet North America’s growing needs for water and wastewater infrastructure. Our solution-based products serve a wide range of markets including water transmission, plant piping, tunnels, and river crossings. Our prominent position is based on a widely-recognized reputation for quality, service, and manufacturing to meet performance expectations in all categories including highly-corrosive environments. These pipeline systems are produced from several manufacturing facilities which are located in Portland, Oregon; San Luis Río Colorado, Mexico; Adelanto, California; Saginaw, Texas; Tracy, California; Parkersburg, West Virginia; St. Louis, Missouri; and Brea, California. In the second quarter of 2018, we closed our leased facility in Salt Lake City, Utah and ceased production at our Monterrey, Mexico facility. The Monterrey, Mexico facility was sold in December 2018.

In July 2018, we completed the acquisition of 100% of Ameron Water Transmission Group, LLC (“Ameron”) for a purchase price of $38.1 million. Ameron was a major supplier of engineered welded steel pressure pipe as well as reinforced concrete pipe. In addition to strengthening our position in the water transmission pipe market, this acquisition expands our bar-wrapped concrete cylinder pipe capabilities and adds reinforced concrete pipe and T-Lock^® — a proprietary polyvinyl chloride (PVC) lining for concrete pipe sewer applications — to our product portfolio. In connection with the acquisition, we acquired pipe facilities in Tracy, California and San Luis Río Colorado, Mexico, as well as a protective lining facility in Brea, California.

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On April 21, 2019, there was an accidental fire at our Saginaw, Texas facility which resulted in damage to the coatings building. There were no injuries, but the ability to coat at this facility will be impaired while we assess and repair the damage. Our other production locations can be deployed to absorb whatever lost production we have as a result. We have insurance coverage in place covering, among other things, property damage and business interruption up to certain specified amounts, and have notified our insurers of the incident.

Our water infrastructure products are sold generally to installation contractors, who include our products in their bids to municipal agencies or privately-owned water companies for specific projects. We believe our sales are substantially driven by spending on new water infrastructure with a recent trend towards spending on water infrastructure replacement, repair, and upgrade. Within the total range of pipe products, our products tend to fit the larger-diameter, higher-pressure applications.

Our Current Economic Environment

We operate our business with a long-term time horizon. Projects are often planned for many years in advance, and are sometimes part of 50-year build-out plans. Long-term demand for water infrastructure projects in the United States appears strong. However, in the near term, we expect that strained governmental and water agency budgets along with increased capacity from competition could impact the business. Fluctuating steel costs will also be a factor, as the ability to adjust our selling prices as steel costs fluctuate depends on market conditions. Purchased steel represents a substantial portion of our cost of sales, and changes in our selling prices often correlate directly to changes in steel costs.

In March 2018, the President signed a proclamation imposing a 25% tariff on all imported steel products for an indefinite amount of time under Section 232 of the Trade Expansion Act of 1962. In June 2018, Mexico imposed a 25% tariff on all steel products shipped from the U.S. to Mexico, and in July 2018, Canada imposed a 25% surtax on imports of U.S. steel products. These tariffs cover our primary raw material, hot rolled coil, as well as our finished steel pipe product. We routinely ship steel pipe into Canada. The tariffs may lead to project delays or cancellations while they are in place. In addition, our facility in San Luis Río Colorado, Mexico may also be negatively impacted. Historically, the raw material has been purchased in the U.S. and shipped to Mexico for manufacturing, and the finished product has been shipped from Mexico to the U.S. If we continue this practice, we will have a tariff on the purchased hot rolled coil as well as the finished steel pipe.

Critical Accounting Policies and Estimates

The discussion and analysis of our financial condition and results of operations are based upon our Condensed Consolidated Financial Statements included in Part I – Item 1. “Financial Statements” of this 2019 Q1 Form 10-Q, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of our Condensed Consolidated Financial Statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses, and disclosure of contingent assets and liabilities. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. On an ongoing basis, we evaluate all of our estimates, including those related to revenue recognition, business combinations, inventories, property and equipment, including depreciation and valuation, share-based compensation, income taxes, allowance for doubtful accounts, and litigation and other contingencies. Actual results may differ from these estimates under different assumptions or conditions.

There have been no significant changes in our critical accounting policies and estimates during the three months ended March 31, 2019 as compared to the critical accounting policies and estimates disclosed in our 2018 Form 10-K.

Recent Accounting Pronouncements

For a description of recent accounting pronouncements affecting our company, including the dates of adoption and estimated effects on financial position, results of operations, and cash flows, see Note 13 of the Notes to Condensed Consolidated Financial Statements in Part I – Item I. “Financial Statements” of this 2019 Q1 Form 10-Q.

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Results of Operations

The following table sets forth, for the periods indicated, certain financial information regarding costs and expenses expressed in dollars (in thousands) and as a percentage of total Net sales.

	Three Months Ended March 31, 2019						Three Months Ended March 31, 2018
	$			% of Net Sales			$			% of Net Sales
Net sales	$	62,643			100.0	%	$	33,365			100.0	%
Cost of sales		56,072			89.5			32,017			96.0
Gross profit		6,571			10.5			1,348			4.0
Selling, general, and administrative expense		4,247			6.8			3,385			10.1
Restructuring expense		-			-			305			0.9
Operating income (loss)		2,324			3.7			(2,342	)		(7.0	)
Other income		159			0.3			170			0.5
Interest income		4			-			77			0.2
Interest expense		(131	)		(0.2	)		(128	)		(0.4	)
Income (loss) before income taxes		2,356			3.8			(2,223	)		(6.7	)
Income tax expense (benefit)		191			0.3			(272	)		(0.9	)
Net income (loss)	$	2,165			3.5	%	$	(1,951	)		(5.8	)%

We have one business segment, Water Transmission, which manufactures large-diameter, high-pressure, engineered welded steel pipeline systems, as well as reinforced concrete pipe and protective linings, for use in water infrastructure applications, which are primarily related to drinking water systems. These products are also used for hydroelectric power systems, wastewater systems, and other applications. In addition, we make products for industrial plant piping systems and certain structural applications. See Note 2 of the Notes to Condensed Consolidated Financial Statements in Part I – Item I. “Financial Statements” of this 2019 Q1 Form 10-Q for information on our acquisition of Ameron in July 2018.

Three Months Ended March 31, 2019 Compared to Three Months Ended March 31, 2018

Net sales. Net sales increased 87.8% to $62.6 million for the first quarter of 2019 compared to $33.4 million for the first quarter of 2018. The acquired Ameron operations contributed $11.8 million of the increase in net sales for the first quarter of 2019. The increase in net sales in the first quarter of 2019 compared to the first quarter of 2018 was due to a 68% increase in tons produced and a 12% increase in selling price per ton. The increase in tons produced was due to project mix. Bidding activity, backlog, and production levels may vary significantly from period to period affecting sales volumes.

Gross profit. Gross profit increased 387.5% to $6.6 million (10.5% of Net sales) for the first quarter of 2019 compared to $1.3 million (4.0% of Net sales) for the first quarter of 2018. The increase in gross profit for the first quarter of 2019 compared to the first quarter of 2018 was primarily due to increased production volume.

Selling, general, and administrative expense. Selling, general, and administrative expense increased 25.5% to $4.2 million (6.8% of total Net sales) for the first quarter of 2019 compared to $3.4 million (10.1% of total Net sales) for the first quarter of 2018. The increase in selling, general, and administrative expense for the first quarter of 2019 compared to the first quarter of 2018 was primarily due to $0.8 million in higher wages and incentive compensation related expense.

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Restructuring expense. In March 2018, we announced our plan to close our leased Permalok^® manufacturing facility in Salt Lake City, Utah and move the production to our Permalok^® production facility in St. Louis, Missouri, which was completed during the second quarter of 2018. Also in March 2018, we announced our plan to close our manufacturing facility in Monterrey, Mexico. Production ceased early in the second quarter of 2018, and the facility was sold in December 2018. We incurred restructuring expense of $0.3 million in the first quarter of 2018, which includes employee severance and termination related restructuring expense of $0.2 million and expense related to demobilization activities of $0.1 million.

Income taxes. Income tax expense was $0.2 million in the first quarter of 2019 (an effective income tax rate of 8.1%) compared to an income tax benefit of $0.3 million in the first quarter of 2018 (an effective income tax rate of 12.2%). The effective income tax rate for the first quarter of 2019 was impacted by the estimated changes in our valuation allowance. The effective income tax rate for the first quarter of 2018 was impacted by the estimated changes in our valuation allowance, as well as by the tax windfall from share-based compensation. The effective income tax rate can change significantly depending on the relationship of permanent income tax deductions and tax credits to estimated pre-tax income or loss and the changes in valuation allowances. Accordingly, the comparison of effective income tax rates between periods is not meaningful in all situations.

Liquidity and Capital Resources

Sources and Uses of Cash

Our principal sources of liquidity generally include operating cash flows and the Credit Agreement with Wells Fargo Bank, N.A. dated October 25, 2018 (the “Credit Agreement”). From time to time our long-term capital needs may be met through the issuance of long-term debt or additional equity. Our principal uses of liquidity generally include capital expenditures, working capital, and debt service. Information regarding our cash flows for the three months ended March 31, 2019 and 2018 are presented in our Condensed Consolidated Statements of Cash Flows contained in Part I – Item 1. “Financial Statements” of this 2019 Q1 Form 10-Q, and are further discussed below.

As of March 31, 2019, our working capital (current assets minus current liabilities) was $118.6 million compared to $128.0 million as of December 31, 2018. Cash and cash equivalents totaled $3.8 million and $6.7 million as of March 31, 2019 and December 31, 2018, respectively.

Fluctuations in our working capital accounts result from timing differences between production, shipment, invoicing, and collection, as well as changes in levels of production and costs of materials. We typically have a relatively large investment in working capital, as we generally pay for materials, labor, and other production costs in the initial stages of a project, while payments from our customers are generally received after finished product is delivered. Our revenues are recognized over time as the manufacturing process progresses; therefore, cash receipts typically occur subsequent to when revenue is recognized and the elapsed time between when revenue is recorded and when cash is received can be significant. As such, our payment cycle is a significantly shorter interval than our collection cycle, although the effect of this difference in the cycles may vary by project, and from period to period.

There were no borrowings under the Credit Agreement as of March 31, 2019. Borrowings under the Credit Agreement were $11.5 million as of December 31, 2018.

Net cash provided by operating activities in the first three months of 2019 was $10.4 million. Cash provided by operating activities was primarily the result of our net income adjusted for noncash charges and the fluctuations in working capital accounts that included decreases in trade and other receivables, contract assets, net, and prepaid expenses and other offset by increases in inventories and decreases in accounts payable and accrued and other liabilities.

Net cash used in investing activities in the first three months of 2019 was $1.6 million, primarily due to $1.6 million of capital expenditures, which was primarily standard capital replacement. Total capital expenditures in 2019 are expected to range between $9.0 million and $12.5 million for standard capital replacement, which do not include amounts to replace equipment damaged in the Saginaw fire.

Net cash used in financing activities in the first three months of 2019 was $11.6 million, primarily due to net repayments on line of credit of $11.5 million.

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We anticipate that our existing cash and cash equivalents, cash flows expected to be generated by operations, and amounts available under the Credit Agreement will be adequate to fund our working capital and capital expenditure requirements for at least the next twelve months. To the extent necessary, we may also satisfy capital requirements through additional bank borrowings, senior notes, term notes, subordinated debt, and finance and operating leases, if such resources are available on satisfactory terms. We have from time to time evaluated and continue to evaluate opportunities for acquisitions and expansion. Any such transactions, if consummated, may use a portion of our working capital or necessitate additional bank borrowings or other sources of funding.

On September 15, 2017, our registration statement on Form S-3 (Registration No. 333-216802) covering the potential future sale of up to $120 million of our equity and/or debt securities or combinations thereof, was declared effective by the Securities and Exchange Commission. This registration statement provides another potential source of capital, in addition to other alternatives already in place. We cannot be certain that funding will be available on favorable terms or available at all. To the extent that we raise additional funds by issuing equity securities, our shareholders may experience significant dilution. As of the date of this 2019 Q1 Form 10-Q, we have not yet sold any securities under this registration statement, nor do we have an obligation to do so. Please refer to the factors discussed in Part I – Item 1A. “Risk Factors” in our 2018 Form 10-K.

Borrowings on Line of Credit

As of March 31, 2019, we had no outstanding borrowings and $1.6 million of outstanding letters of credit under the Credit Agreement. The Credit Agreement expires on October 25, 2023 and provides for revolving loans and letters of credit in the aggregate amount of up to $60 million, subject to a borrowing base (the “Revolver Commitment”). We have the ability to increase the Revolver Commitment to $100 million, subject to the provisions of the Credit Agreement.

The borrowing base is calculated by applying various advance rates to eligible accounts receivable, contract assets, inventories, and fixed assets, subject to various exclusions, adjustments, and sublimits. As of March 31, 2019, we had additional borrowing capacity of $49.5 million, net of outstanding letters of credit and the amount required to avoid a covenant trigger event. Based on our business plan and forecasts of operations, we expect to have sufficient credit availability to support our operations for at least the next twelve months.

Borrowings under the Credit Agreement bear interest at rates related to the daily three month London Interbank Offered Rate plus 1.5% to 2.0%. The Credit Agreement requires the payment of an unused line fee of between 0.25% and 0.375%, based on the amount by which the Revolver Commitment exceeds the average daily balance of outstanding borrowings (as defined in the Credit Agreement) during any month. Such fee is payable monthly in arrears.

The Credit Agreement contains customary representations and warranties, as well as customary affirmative and negative covenants, events of default, and indemnification provisions in favor of the lender. The negative covenants include restrictions regarding the incurrence of liens and indebtedness and certain acquisitions and dispositions of assets and other matters, all subject to certain exceptions. The Credit Agreement also requires us to regularly provide financial information to Wells Fargo and to maintain a specified fixed charge coverage ratio upon certain triggers.

In connection with the execution and delivery of the Credit Agreement, we and certain of our subsidiaries also entered into a Guaranty and Security Agreement with Wells Fargo (the “Guaranty and Security Agreement”). Pursuant to the Guaranty and Security Agreement, our obligations under the Credit Agreement are secured by a security interest in substantially all of our and our subsidiaries’ assets.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that are reasonably likely to have a current or future material effect on our financial position, results of operations, or cash flows.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

For a discussion of our market risk associated with foreign currencies and interest rates, see Part II – Item 7A. “Quantitative and Qualitative Disclosures About Market Risk” of our 2018 Form 10-K.

22

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) are designed to provide reasonable assurance that information required to be disclosed in reports we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission (“SEC”) and that such information is accumulated and communicated to our management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), as appropriate, to allow timely decisions regarding required disclosures.

In connection with the preparation of this Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, our management, under the supervision and with the participation of our CEO and CFO, evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2019. As a result of the assessment, our CEO and CFO have concluded that, as of March 31, 2019, our disclosure controls and procedures were effective.

As discussed in Note 2 of the Notes to Condensed Consolidated Financial Statements in Part I – Item 1. “Financial Statements” of this 2019 Q1 Form 10-Q, we completed the acquisition of 100% of Ameron Water Transmission Group, LLC (“Ameron”) on July 27, 2018. As part of our post-closing integration activities, we are engaged in the process of assessing the internal controls of Ameron. We have begun to integrate policies, processes, people, technology, and operations for the post-acquisition combined company, and we will continue to evaluate the impact of any related changes to internal control over financial reporting. As permitted for newly acquired businesses by interpretive guidance issued by the staff of the SEC, management has excluded the internal control over financial reporting of Ameron from its evaluation of the effectiveness of our disclosure controls and procedures as of March 31, 2019. We have reported the operating results of Ameron in our condensed consolidated statements of operations and cash flows from the acquisition date through March 31, 2019. As of March 31, 2019, total assets related to Ameron represented approximately 17.7% of our total assets, recorded on a preliminary basis as the measurement period for the business combination remained open as of March 31, 2019. Revenues from Ameron comprised approximately 18.8% of our total consolidated revenues for the three months ended March 31, 2019.

Changes in Internal Control over Financial Reporting

Except for changes in internal controls that we have made related to the integration of Ameron into the post-acquisition combined company, there were no significant changes in our internal control over financial reporting that occurred during the quarter ended March 31, 2019 that materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

Part II – OTHER INFORMATION

Item 1. Legal Proceedings

We are party to a variety of legal actions arising out of the normal course of business. Plaintiffs occasionally seek punitive or exemplary damages. We do not believe that such normal and routine litigation will have a material impact on our consolidated financial results. We are also involved in other kinds of legal actions, some of which assert or may assert claims or seek to impose fines, penalties, and other costs in substantial amounts. See Note 8 of the Notes to Condensed Consolidated Financial Statements in Part I – Item 1. “Financial Statements” of this 2019 Q1 Form 10-Q.

Item 1A. Risk Factors

In addition to the other information set forth in this 2019 Q1 Form 10-Q, the factors discussed in Part I – Item 1A. “Risk Factors” in our 2018 Form 10-K could materially affect our business, financial condition, or operating results. The risks described in our 2018 Form 10-K are not the only risks facing us. There are additional risks and uncertainties not currently known to us or that we currently deem to be immaterial, that may also materially adversely affect our business, financial condition, or operating results.

23

Item 6. Exhibits

(a) The exhibits filed as part of this 2019 Q1 Form 10-Q are listed below:

Exhibit Number	Description
10.1	Form of Performance Share Unit Agreement, incorporated by reference to the Company’s Current Report on Form 8-K, as filed with the Securities and Exchange Commission on April 1, 2019*
10.2	Form of Restricted Stock Unit Agreement, incorporated by reference to the Company’s Current Report on Form 8-K, as filed with the Securities and Exchange Commission on April 1, 2019*
31.1	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Document
101.DEF	XBRL Taxonomy Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

* This exhibit constitutes a management contract or compensatory plan or arrangement.

24

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: May 9, 2019

NORTHWEST PIPE COMPANY
By:	/s/ Scott Montross
	Scott Montross
	Director, President, and Chief Executive Officer
	(principal executive officer)
By:	/s/ Robin Gantt
	Robin Gantt
	Senior Vice President, Chief Financial Officer, and Corporate Secretary
	(principal financial and accounting officer)

25

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Scott Montross, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Northwest Pipe Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 9, 2019	By:	/s/ Scott Montross
		Scott Montross
		Director, President, and Chief Executive Officer
		(principal executive officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Robin Gantt, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Northwest Pipe Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 9, 2019	By:	/s/ Robin Gantt
		Robin Gantt
		Senior Vice President, Chief Financial Officer, and Corporate Secretary
		(principal financial officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Northwest Pipe Company (the “Company”) on Form 10-Q for the period ended March 31, 2019 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Scott Montross, Director, President, and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Scott Montross

Scott Montross

Director, President, and Chief Executive Officer

May 9, 2019

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Northwest Pipe Company (the “Company”) on Form 10-Q for the period ended March 31, 2019 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Robin Gantt, Senior Vice President, Chief Financial Officer, and Corporate Secretary of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Robin Gantt

Robin Gantt

Senior Vice President, Chief Financial Officer, and Corporate Secretary

May 9, 2019

XML

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 01, 2019
Document Information [Line Items]
Entity Registrant Name	Northwest Pipe Co.
Entity Central Index Key	0001001385
Trading Symbol	nwpx
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding (in shares)		9,735,055
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Net sales	$ 62,643	$ 33,365
Cost of sales	56,072	32,017
Gross profit	6,571	1,348
Selling, general, and administrative expense	4,247	3,385
Restructuring expense		305
Operating income (loss)	2,324	(2,342)
Other income	159	170
Interest income	4	77
Interest expense	(131)	(128)
Income (loss) before income taxes	2,356	(2,223)
Income tax expense (benefit)	191	(272)
Net income (loss)	$ 2,165	$ (1,951)
us-gaap_EarningsPerShareAbstract
Basic (in dollars per share)	$ 0.22	$ (0.20)
Diluted (in dollars per share)	$ 0.22	$ (0.20)
Shares used in per share calculations:
Basic (in shares)	9,735	9,707
Diluted (in shares)	9,735	9,707

XML

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Net income (loss)	$ 2,165	$ (1,951)
Other comprehensive income (loss), net of tax:
Pension liability adjustment	26	24
Unrealized gain (loss) on cash flow hedges	(15)	25
Other comprehensive income (loss), net of tax	11	49
Comprehensive income (loss)	$ 2,176	$ (1,902)

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 3,843	$ 6,677
Trade and other receivables, less allowance for doubtful accounts of $564 and $660	27,791	34,394
Contract assets	70,267	74,271
Inventories	41,116	39,376
Prepaid expenses and other	4,505	4,795
Total current assets	147,522	159,513
Property and equipment, less accumulated depreciation and amortization of $79,438 and $76,861	102,397	103,447
Other assets	16,606	8,390
Total assets	266,525	271,350
Current liabilities:
Accounts payable	15,524	19,784
Accrued liabilities	8,916	7,963
Contract liabilities	4,530	3,745
Total current liabilities	28,970	31,492
Borrowings on line of credit		11,464
Other long-term liabilities	16,767	9,804
Total liabilities	45,737	52,760
Commitments and contingencies (Note 8)
Stockholders’ equity:
Preferred stock, $.01 par value, 10,000,000 shares authorized, none issued or outstanding
Common stock, $.01 par value, 15,000,000 shares authorized, 9,735,055 shares issued and outstanding	97	97
Additional paid-in-capital	118,857	118,835
Retained earnings	103,594	101,194
Accumulated other comprehensive loss	(1,760)	(1,536)
Total stockholders’ equity	220,788	218,590
Total liabilities and stockholders’ equity	$ 266,525	$ 271,350

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Allowance for doubtful accounts	$ 564	$ 660
Accumulated depreciation and amortization	$ 79,438	$ 76,861
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	15,000,000	15,000,000
Common stock, shares issued (in shares)	9,735,055	9,735,055
Common stock, shares outstanding (in shares)	9,735,055	9,735,055

XML

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balances (in shares) at Dec. 31, 2017	9,619,755
Beginning balance at Dec. 31, 2017	$ 96	$ 119,856	$ 81,757	$ (1,445)	$ 200,264
Cumulative-effect adjustment for new standard at Dec. 31, 2017			(875)		(875)
Net income (loss)			(1,951)		(1,951)
Pension liability adjustment, net of tax expense/benefit				24	24
Unrealized gain (loss) on cash flow hedges, net of tax expense/benefit				25	25
Share-based compensation expense		81			81
Balances (in shares) at Mar. 31, 2018	9,723,883
Ending balance at Mar. 31, 2018	$ 97	118,635	78,931	(1,396)	196,267
Issuance of common stock under stock compensation plans (in shares)	104,128
Issuance of common stock under stock compensation plans	$ 1	(1,302)			(1,301)
Balances (in shares) at Dec. 31, 2018	9,735,055
Beginning balance at Dec. 31, 2018	$ 97	118,835	101,194	(1,536)	218,590
Cumulative-effect adjustment for new standard at Dec. 31, 2018			235	(235)
Net income (loss)			2,165		2,165
Pension liability adjustment, net of tax expense/benefit				26	26
Unrealized gain (loss) on cash flow hedges, net of tax expense/benefit				(15)	(15)
Share-based compensation expense		22			22
Balances (in shares) at Mar. 31, 2019	9,735,055
Ending balance at Mar. 31, 2019	$ 97	$ 118,857	$ 103,594	$ (1,760)	$ 220,788

XML

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Pension liability adjustment, tax expense/benefit	$ 0	$ 0
Unrealized gain (loss) on cash flow hedges, expense/ benefit	$ (8)	$ 5

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net income (loss)	$ 2,165	$ (1,951)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and finance lease amortization	2,669	1,522
Amortization of intangible assets	108	119
Amortization of debt issuance costs	22	42
Provision for doubtful accounts	(81)	87
Deferred income taxes	(10)	(330)
Loss on disposal of property and equipment	3	71
Share-based compensation expense	22	81
Unrealized (gain) loss on foreign currency forward contracts	86	(32)
Changes in operating assets and liabilities:
Trade and other receivables	5,856	4,196
Contract assets, net	5,616	(3,236)
Inventories	(1,740)	610
Prepaid expenses and other assets	300	650
Accounts payable	(4,264)	(3,045)
Accrued and other liabilities	(395)	(1,050)
Net cash provided by (used in) operating activities	10,357	(2,266)
Cash flows from investing activities:
Additions to property and equipment	(1,622)	(744)
Proceeds from sale of property and equipment	2
Net cash used in investing activities from continuing operations	(1,620)	(744)
Net cash provided by investing activities from discontinued operations		750
Net cash provided by (used in) investing activities	(1,620)	6
Cash flows from financing activities:
Borrowings on line of credit	12,003
Repayments on line of credit	(23,467)
Tax withholdings related to net share settlements of restricted stock and performance share awards		(1,301)
Payments on finance lease obligations	(107)	(94)
Net cash used in financing activities	(11,571)	(1,395)
Change in cash and cash equivalents	(2,834)	(3,655)
Cash and cash equivalents, beginning of period	6,677	43,646
Cash and cash equivalents, end of period	3,843	39,991
Noncash investing and financing activities:
Accrued property and equipment purchases	339	168
Right-of-use assets obtained in exchange for operating lease liabilities	506
Right-of-use assets obtained in exchange for finance lease liabilities		$ 458

XML

Note 1 - Basis of Presentation

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

1. Basis of Presentation

The Condensed Consolidated Financial Statements include the accounts of Northwest Pipe Company (the “Company”) and its subsidiaries over which the Company exercises control as of the financial statement date. Intercompany accounts and transactions have been eliminated.

The Company operates in

one

business segment, Water Transmission, which produces steel pipeline systems, as well as reinforced concrete pipe and protective linings, primarily for use in drinking water infrastructure. These products are also used for hydroelectric power systems, wastewater systems, and other applications. In addition, the Company makes products for industrial plant piping systems and certain structural applications.

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are expressed in United States Dollars. The financial information as of

December 

31,

2018

is derived from the audited Consolidated Financial Statements presented in the Company’s Annual Report on Form 

10

-K for the year ended

December 

31,

2018

(the

“2018

Form 

10

-K”). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted, pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the accompanying Condensed Consolidated Financial Statements include all adjustments necessary (which are of a normal and recurring nature) for the fair statement of the results of the interim periods presented. The Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto together with management’s discussion and analysis of financial condition and results of operations contained in the Company’s

2018

Form 

10

-K.

Certain amounts from the prior year financial statements have been reclassified in order to conform to the current year presentation.

Operating results for the

three

months ended

March 

31,

2019

are

not

necessarily indicative of the results that

may

be expected for the entire fiscal year ending

December 

31,

2019.

The Company recorded revenue of

$1.2

million during the

three

and

twelve

months ended

December 31, 2018,

which should have been recorded in the

three

months ended

March 31, 2019. 

The misstatement in the timing of revenue recognition was due to an error in the measurement of costs incurred to date relative to estimated total direct costs at a recently acquired Ameron Water Transmission Group, LLC (“Ameron”) facility. Management concluded that this out of period adjustment was

not

material to the consolidated financial results for the year ended

December 31, 2018

or to the projected financial results for

2019.

XML

Note 2 - Business Combination

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Business Combination Disclosure [Text Block]

2. Business Combination

On

July 

27,

2018,

the Company completed the acquisition of

100%

of Ameron Water Transmission Group, LLC for a purchase price of

$38.1

 million in cash. The results of Ameron’s operations have been included in the consolidated financial statements since that date. Ameron was a major supplier of engineered welded steel pressure pipe as well as reinforced concrete pipe. In addition to strengthening the Company's position in the water transmission pipe market, this acquisition expands the Company’s bar-wrapped concrete cylinder pipe capabilities and adds reinforced concrete pipe and T-Lock

®

—a proprietary polyvinyl chloride (PVC) lining for concrete pipe sewer applications—to the Company’s product portfolio. In connection with the acquisition, the Company acquired pipe facilities in Tracy, California and San Luis Río Colorado, Mexico, as well as a protective lining facility in Brea, California.

The following table summarizes the purchase consideration and preliminary fair value of the assets acquired and liabilities assumed as of

July 

27,

2018

(in thousands):

Assets
Cash and cash equivalents	$	912
Trade and other receivables		8,887
Contract assets		12,018
Inventories		7,937
Prepaid expenses and other		3,777
Property and equipment		34,827
Other assets		320
Total assets acquired		68,678
Liabilities
Accounts payable		5,520
Accrued liabilities		1,599
Contract liabilities		123
Deferred income taxes		3,221
Total liabilities assumed		10,463
Bargain purchase gain		(20,080	)
Total purchase consideration	$	38,135

The asset and liability fair value measurements are preliminary, primarily related to income, deferred, and foreign taxes, and are subject to change as additional information is obtained and certain tax returns are finalized. The Company recorded

no

measurement period adjustments during the

three

months ended

March 

31,

2019.

The purchase price allocation will be finalized as soon as practicable within the measurement period, but

not

later than

one

year following the acquisition date.

The excess of the aggregate net fair value of assets acquired and liabilities assumed over the fair value of consideration transferred as the purchase price has been recorded as a bargain purchase gain. When it became apparent there was a potential for a bargain purchase gain, management reviewed the Ameron assets acquired and liabilities assumed as well as the assumptions utilized in estimating their fair values. Upon completion of this reassessment, the Company concluded that recording a bargain purchase gain with respect to Ameron was appropriate and required under U.S. GAAP. The Company believes the seller was motivated to complete the transaction as part of an overall repositioning of its business.

The Company incurred acquisition-related costs during the

three

months ended

March 

31,

2019

and

2018

of

$0.1

 million and approximately 

$0,

respectively. These costs are included in Selling, general, and administrative expense in the Condensed Consolidated Statements Operations.

The following unaudited pro forma summary presents the consolidated results of the Company as if the acquisition of Ameron had occurred on

January 

1

of the year prior to the acquisition (in thousands):

	Three Months Ended March 31, 2018
Net sales	$	43,567
Net loss		(22,614	)

This unaudited pro forma consolidated financial data is included only for the purpose of illustration and does

not

necessarily indicate what the operating results would have been if the acquisition had occurred on

January 

1

of the year prior to the acquisition. Moreover, this information is

not

indicative of what the Company’s future operating results will be. The information prior to the acquisition is included based on prior accounting records maintained by Ameron. The pro forma amounts have been calculated after applying the Company’s accounting policies and adjusting the results of Ameron to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property and equipment and intangible assets had been applied on

January 

1

of the year prior to the acquisition, and the consequential tax effects. There were

no

material, non-recurring adjustments to this unaudited pro forma information.

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Note 3 - Discontinued Operations

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

3. Discontinued Operations

On

December 

26,

2017,

the Company completed the sale of substantially all of the assets associated with the Company’s manufacturing facility in Atchison, Kansas, including all of the real and tangible personal property located at the site of that manufacturing facility. Total consideration of

$37.2

 million in cash was paid by the buyer, resulting in a nominal gain recognized on the sale. Of the proceeds received,

$0.8

 million was placed in escrow until it was released in

February 2018

and

$3.7

 million was placed in escrow until it was released in

December 2018.

In accordance with applicable accounting guidance, cash flows from the Company’s discontinued operations are presented separately in the Condensed Consolidated Statements of Cash Flows.

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Note 4 - Inventories

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Inventory Disclosure [Text Block]

4. Inventories

Inventories consist of the following (in thousands):

	March 31, 2019		December 31, 2018
Current inventories:
Raw materials	$	37,381	$	34,426
Work-in-process		1,409		2,368
Finished goods		824		1,075
Supplies		1,502		1,507
Total current inventories	$	41,116	$	39,376

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Note 5 - Leases

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Lessee, Lease, Disclosure [Text Block]

5. Leases

The Company has entered into various equipment and property leases with terms of

ten

years or less. Certain lease agreements include renewals and/or purchase options set to expire at various dates, and certain lease agreements include rental payments adjusted periodically for inflation. The Company’s lease agreements do

not

contain any material residual value guarantees or material restrictive covenants.

The Company determines if an arrangement is a lease at inception. Leases with an initial term of

twelve

 months or less are

not

recorded on the balance sheet; costs for these leases are recognized on a straight-line basis over the lease term. Right-of-use assets and lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of the Company's leases do

not

provide an implicit rate of return, the Company uses its asset-based lending rate in determining the present value of lease payments. The Company has lease agreements with lease and non-lease components, which are accounted for separately.

Lease cost consists of the following (in thousands):

	Three Months Ended March 31,
	2019
Finance lease cost:
Amortization of right-of-use assets	$	109
Interest on lease liabilities		15
Operating lease cost		425
Short-term lease cost		262
Variable lease cost		40
Total lease cost	$	851

The future maturities of lease liabilities as of

March 

31,

2019

are as follows (in thousands):

	Finance Leases			Operating Leases
2019	$	348		$	1,334
2020		375			1,664
2021		258			1,134
2022		237			903
2023		34			752
Thereafter		-			4,338
Total lease payments		1,252			10,125
Amount representing interest		(103	)		(1,839	)
Present value of lease liabilities		1,149			8,286
Current portion of lease liabilities, included in Accrued liabilities		(393	)		(1,426	)
Lease liabilities, less current portion, included in Other long-term liabilities	$	756		$	6,860

The following table summarizes the lease terms and discount rates for the lease liabilities:

	March 31, 2019
Weighted-average remaining lease term (years)
Finance leases		3.28
Operating leases		8.85
Weighted-average discount rate
Finance leases		5.03	%
Operating leases		4.55	%

The following table presents other information related to the operating and finance leases (in thousands):

	Three Months Ended March 31,
	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(415	)
Operating cash flows from finance leases		(15	)
Financing cash flows from finance leases		(107	)
Right-of-use assets obtained in exchange for operating lease liabilities		506
Right-of-use assets obtained in exchange for finance lease liabilities		-

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Note 6 - Fair Value Measurements

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Fair Value Disclosures [Text Block]

6. Fair Value Measurements

The Company records its financial assets and liabilities at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants at the measurement date.

The authoritative guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into

three

broad levels. These levels are: Level 

1

(inputs are quoted prices in active markets for identical assets or liabilities); Level 

2

(inputs are other than quoted prices that are observable, either directly or indirectly through corroboration with observable market data); and Level 

3

(inputs are unobservable, with little or

no

market data that exists, such as internal financial forecasts). The Company is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The following table summarizes information regarding the Company’s financial assets and liabilities that are measured at fair value on a recurring basis (in thousands):

	Total		Level 1		Level 2		Level 3
As of March 31, 2019
Financial assets:
Deferred compensation plan	$	5,125	$	4,328	$	797	$	-
As of December 31, 2018
Financial assets:
Deferred compensation plan	$	4,719	$	3,925	$	794	$	-
Foreign currency forward contracts		101		-		101		-
Total financial assets	$	4,820	$	3,925	$	895	$	-

The deferred compensation plan assets consist of cash and several publicly traded stock and bond mutual funds, valued using quoted market prices in active markets, classified as Level 

1

within the fair value hierarchy, as well as guaranteed investment contracts, valued at principal plus interest credited at contract rates, classified as Level 

2

within the fair value hierarchy.

The Company’s foreign currency forward contracts, which are derivatives accounted for as cash flow hedges, are valued using various pricing models or discounted cash flow analyses that incorporate observable market parameters, such as interest rate yield curves and currency rates, classified as Level 

2

within the fair value hierarchy. Derivative valuations incorporate credit risk adjustments that are necessary to reflect the probability of default by the counterparty or the Company. Foreign currency forward contracts are presented at their gross fair values. Foreign currency forward contract assets are included within Prepaid expenses and other and foreign currency forward contract liabilities are included within Accrued liabilities in the Condensed Consolidated Balance Sheets.

The net carrying amounts of cash and cash equivalents, trade and other receivables, accounts payable, accrued liabilities, and borrowings on the line of credit approximate fair value due to the short-term nature of these instruments.

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Note 7 - Share-based Compensation

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

7 . Share-based Compensation

The Company has

one

active stock incentive plan for employees and directors, the

2007

Stock Incentive Plan, which provides for awards of stock options to purchase shares of common stock, stock appreciation rights, restricted and unrestricted shares of common stock, restricted stock units (“RSUs”), and performance share awards (“PSAs”).

The Company recognizes the compensation cost of employee and director services received in exchange for awards of equity instruments based on the grant date estimated fair value of the awards. Share-based compensation cost is recognized over the period during which the employee or director is required to provide service in exchange for the award and, as forfeitures occur, the associated compensation cost recognized to date is reversed. For awards with performance-based payout conditions, the Company recognizes compensation cost based on the probability of achieving the performance conditions, with changes in expectations recognized as an adjustment to earnings in the period of change. Any recognized compensation cost is reversed if the conditions are ultimately

not

met.

The following table summarizes share-based compensation expense recorded (in thousands):

	Three Months Ended March 31,
	2019		2018
Cost of sales	$	6	$	17
Selling, general, and administrative expense		16		64
Total	$	22	$	81

Stock Option Awards

A summary of option activity under the Company’s stock option plans is presented below:

	Options Outstanding		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life		Aggregate Intrinsic Value
					(in years)		(In thousands)
Balance, December 31, 2018		24,000	$	24.15
Options granted		-		-
Options exercised		-		-
Options canceled		-		-
Balance, March 31, 2019		24,000		24.15
Exercisable, March 31, 2019		24,000		24.15		1.00	$	-

Restricted Stock Units and Performance Share Awards

RSUs and PSAs are measured at the estimated fair value on the date of grant. RSUs are service-based awards and vest according to vesting schedules, which range from immediate to ratably over a

three

-year period. PSAs are service-based awards that vest according to the terms of the grant and

may

have performance- and/or market-based payout conditions.

A summary of activity under the Company’s RSUs and PSAs is presented below:

	Number of RSUs and PSAs (1)			Weighted- Average Grant Date Fair Value
Unvested PSAs as of December 31, 2018		39,992		$	19.97
RSUs and PSAs granted		86,701			23.56
Unvested RSUs and PSAs canceled		-			-
PSAs vested (2)		(39,992	)		19.97
Unvested RSUs and PSAs as of March 31, 2019		86,701			23.56

( 1 )	The number of PSAs disclosed in this table are at the target level of 100%.
( 2 )	The PSAs vested on March  29, 2019; the actual number of common shares that were issued was determined by multiplying the PSAs by a payout percentage of 0%, as the performance-based conditions were not achieved.

The unvested balance of RSUs and PSAs as of

March 

31,

2019

includes approximately 

65,000

performance-based PSAs at a target level of performance. The vesting of these awards is subject to the achievement of specified performance-based conditions, and the actual number of common shares that will ultimately be issued will be determined by multiplying this number of PSAs by a payout percentage ranging from

0%

to

150%.

As of

March 

31,

2019,

unrecognized compensation expense related to the unvested portion of the Company’s RSUs and PSAs was

$2.2

 million, which is expected to be recognized over a weighted-average period of

2.2

 years.

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Note 8 - Commitments and Contingencies

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

8 . Commitments and Contingencies

Portland Harbor Superfund Site

In

December 2000,

a section of the lower Willamette River known as the Portland Harbor Superfund Site was included on the National Priorities List at the request of the United States Environmental Protection Agency (“EPA”). While the Company’s Portland, Oregon manufacturing facility does

not

border the Willamette River, an outfall from the facility’s stormwater system drains into a neighboring property’s privately owned stormwater system and slip. Since the listing of the site, the Company was notified by the EPA and the Oregon Department of Environmental Quality (“ODEQ”) of potential liability under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”). A remedial investigation and feasibility study of the Portland Harbor Superfund Site was directed by a group of

14

potentially responsible parties known as the Lower Willamette Group under agreement with the EPA. The EPA finalized the remedial investigation report in

February 2016,

and the feasibility study in

June 2016,

which identified multiple remedial alternatives. In

January 2017,

the EPA issued its Record of Decision selecting the remedy for cleanup at the Portland Harbor Superfund Site, which it believes will cost approximately 

$1

 billion and

13

 years to complete. The EPA has

not

yet determined who is responsible for the costs of cleanup or how the cleanup costs will be allocated among the more than

150

potentially responsible parties. Because of the large number of potentially responsible parties and the variability in the range of remediation alternatives, the Company is unable to estimate an amount or an amount within a range of costs for its obligation with respect to the Portland Harbor Superfund Site matters, and

no

further adjustment to the Condensed Consolidated Financial Statements has been recorded as of the date of this filing.

In

2001,

groundwater containing elevated volatile organic compounds was identified in

one

localized area of leased property adjacent to the Portland facility. In

February 2005,

the Company entered into a Voluntary Agreement for Remedial Investigation and Source Control Measures (“Voluntary Agreement”) with the ODEQ, and has performed remedial investigation work required under the Voluntary Agreement. In

2016,

the EPA and the ODEQ requested additional groundwater sampling. The results of this sampling, which is ongoing, have been generally consistent with previous sampling and modeling work. The Company anticipates it will file a final Remedial Investigation/Source Control Evaluation report with the ODEQ and the EPA in

2019;

 based on discussions with the ODEQ and the EPA, the Company believes the selected remedy will be Monitored Natural Attenuation.

Concurrent with the activities of the EPA and the ODEQ, the Portland Harbor Natural Resources Trustee Council (“Trustees”) sent some or all of the same parties, including the Company, a notice of intent to perform a Natural Resource Damage Assessment (“NRDA”) for the Portland Harbor Superfund Site to determine the nature and extent of natural resource damages under CERCLA Section 

107.

The Trustees for the Portland Harbor Superfund Site consist of representatives from several Northwest Indian Tribes,

three

federal agencies, and

one

state agency. The Trustees act independently of the EPA and the ODEQ. The Trustees have encouraged potentially responsible parties to voluntarily participate in the funding of their injury assessments and several of those parties have agreed to do so. In

June 2014,

the Company agreed to participate in the injury assessment process, which included funding

$0.4

 million of the assessment. The Company has

not

assumed any additional payment obligations or liabilities with the participation with the NRDA. It is uncertain whether the Company will enter into an early settlement for natural resource damages or what costs it

may

incur in any such early settlement.

In

January 2017,

the Confederated Tribes and Bands of the Yakama Nation, a Trustee until they withdrew from the council in

2009,

filed a complaint against the potentially responsible parties including the Company to recover costs related to their own injury assessment and compensation for natural resources damages. The Company does

not

have sufficient information to determine the likelihood of a loss in this matter or the amount of damages that could be allocated to the Company.

The Company has insurance policies for defense costs, as well as indemnification policies it believes will provide reimbursement for any share of the remediation assessed. However, the Company can provide

no

assurance that those policies will cover all of the costs which the Company

may

incur.

All Sites

The Company operates its facilities under numerous governmental permits and licenses relating to air emissions, stormwater runoff, and other environmental matters. The Company’s operations are also governed by many other laws and regulations, including those relating to workplace safety and worker health, principally the Occupational Safety and Health Act and regulations there under which, among other requirements, establish noise and dust standards. The Company believes it is in material compliance with its permits and licenses and these laws and regulations, and the Company does

not

believe that future compliance with such laws and regulations will have a material adverse effect on its financial position, results of operations, or cash flows.

Other Contingencies and Legal Proceedings

From time to time, the Company is involved in litigation relating to claims arising out of its operations in the normal course of its business. The Company maintains insurance coverage against potential claims in amounts that are believed to be adequate. To the extent that insurance does

not

cover legal, defense, and indemnification costs associated with a loss contingency, the Company records accruals when such losses are considered probable and reasonably estimable. The Company believes that it is

not

presently a party to litigation, the outcome of which would have a material adverse effect on its business, financial condition, results of operations, or cash flows.

Guarantees

The Company has entered into certain letters of credit that total

$1.6

 million as of

March 

31,

2019.

The letters of credit relate to workers’ compensation insurance.

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Note 9 - Revenue

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

9 . Revenue

The Company manufactures water infrastructure steel pipe products, which are generally made to custom specifications for installation contractors serving projects funded by public water agencies. Generally, each of the Company’s contracts with its customers contains a single performance obligation, as the promise to transfer products is

not

separately identifiable from other promises in the contract and, therefore, is

not

distinct.

For a majority of contracts, revenue is recognized over time as the manufacturing process progresses because of the Company’s right to payment for work performed to date plus a reasonable profit on cancellations for unique products that have

no

alternative use to the Company. Revenue is measured by the costs incurred to date relative to the estimated total direct costs to fulfill each contract (cost-to-cost method). For a small number of contracts, revenue is recognized when all

four

of the following criteria have been satisfied: persuasive evidence of an arrangement exists, the price is fixed or determinable, delivery has occurred, and collectability is reasonably assured. Contract costs include all material, labor, and other direct costs incurred in satisfying the performance obligations. The cost of steel material is recognized as a contract cost when the steel is introduced into the manufacturing process. Changes in job performance, job conditions, and estimated profitability, including those arising from contract change orders, contract penalty provisions, foreign currency exchange rate movements, changes in raw materials costs, and final contract settlements

may

result in revisions to estimates of revenue, costs, and income, and are recognized in the period in which the revisions are determined.

Provisions for losses on uncompleted contracts, included in Accrued liabilities, are estimated by comparing total estimated contract revenue to the total estimated contract costs and a loss is recognized during the period in which it becomes probable and can be reasonably estimated.

The Company does

not

recognize revenue on a contract until the contract has approval and commitment from both parties, the contract rights and payment terms can be identified, the contract has commercial substance, and its collectability is probable.

Revisions in contract estimates resulted in an increase (decrease) in revenue of $(

1.5

) million and

$0.8

 million for the

three

months ended

March 

31,

2019

and

2018,

respectively.

Contract

Assets and Liabilities

Contract assets primarily represent revenue earned over time but

not

yet billable based on the terms of the contracts. These amounts will be billed based on the terms of the contracts, which include achievement of milestones, partial shipments, or completion of the contracts. Payment terms of amounts billed vary based on the customer, but are typically due within

30

 days of invoicing. Contract liabilities represent amounts billed based on the terms of the contracts in advance of costs incurred and revenue earned.

Revenue recognized that was included in the Contract liabilities balance at the beginning of each period was

$3.3

 million and

$1.7

 million during the

three

months ended

March 

31,

2019

and

2018,

respectively.

Backlog

Backlog represents the balance of remaining performance obligations under signed contracts. As of

March 

31,

2019,

backlog was approximately 

$167.3

 million. The Company expects to recognize approximately 

71%

of the remaining performance obligations in

2019,

25%

in

2020,

and the balance thereafter.

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Note 10 - Income Taxes

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Income Tax Disclosure [Text Block]

10 . Income Taxes

The Company files income tax returns in the United States Federal jurisdiction, in a limited number of foreign jurisdictions, and in many state jurisdictions. With few exceptions, the Company is

no

longer subject to United States Federal, state, or foreign income tax examinations for years before

2014.

The Company recorded an income tax expense (benefit) at an estimated effective income tax rate of

8.1%

and

12.2%

for the

three

months ended

March 

31,

2019

and

2018,

respectively. The Company’s estimated effective income tax rate for the

three

months ended

March 

31,

2019

was impacted by the estimated changes in the Company’s valuation allowance.

The Company had

$4.4

 million of unrecognized income tax benefits as of

March 

31,

2019

and

December 

31,

2018.

The Company does

not

believe it is reasonably possible that the total amounts of unrecognized income tax benefits will change in the following

twelve

months; however, actual results could differ from those currently expected. Effectively all of the unrecognized income tax benefits would affect the Company’s effective income tax rate if recognized at some point in the future. The Company recognizes interest and penalties related to uncertain income tax positions in Income tax expense (benefit).

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Note 11 - Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Comprehensive Income (Loss) Note [Text Block]

11 . Accumulated Other Comprehensive Loss

The following tables summarize changes in the components of Accumulated other comprehensive loss (in thousands). All amounts are net of income tax:

	Pension Liability Adjustment			Unrealized Gain (Loss) on Cash Flow Hedges			Total
Balance, December 31, 2018	$	(1,551	)	$	15		$	(1,536	)
Cumulative-effect adjustment for ASU 2018-02 (Note 13)		(235	)		-			(235	)
Other comprehensive income (loss) before reclassifications		23			(10	)		13
Amounts reclassified from Accumulated other comprehensive loss		3			(5	)		(2	)
Net current period adjustments to Other comprehensive income		26			(15	)		11
Balance, March 31, 2019	$	(1,760	)	$	-		$	(1,760	)

The following table provides additional detail about Accumulated other comprehensive loss components that were reclassified to the Condensed Consolidated Statements of Operations (in thousands):

	Amount reclassified from Accumulated Other Comprehensive  Loss						Affected line item in the
Details about Accumulated Other	Three Months Ended March 31,						Condensed Consolidated
Comprehensive Loss Components	2019			2018			Statements of Operations
Pension liability adjustment:
Net periodic pension cost:
Service cost	$	(3	)	$	-		Cost of sales
		(3	)		-		Net of tax
Unrealized gain (loss) on cash flow hedges:
Gain (loss) on cash flow hedges		7			(3	)	Net sales
Associated income tax (expense) benefit		(2	)		1		Income tax expense (benefit)
		5			(2	)	Net of tax
Total reclassifications for the period	$	2		$	(2	)

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Note 12 - Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Earnings Per Share [Text Block]

12 . Net Income (Loss) per Share

Basic net income (loss) per share is computed by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by giving effect to all potential shares of common stock, including stock options, RSUs, and PSAs, to the extent dilutive. Performance-based PSAs are considered dilutive when the related performance conditions have been met assuming the end of the reporting period represents the end of the performance period. In periods with a net loss, all potential shares of common stock are excluded from the computation of diluted net loss per share as the impact would be antidilutive.

Net income (loss) per basic and diluted weighted-average common share outstanding was calculated as follows (in thousands, except per share amounts):

	Three Months Ended March 31,
	2019		2018
Net income (loss)	$	2,165	$	(1,951	)
Basic weighted-average common shares outstanding		9,735		9,707
Effect of potentially dilutive common shares (1)		-		-
Diluted weighted-average common shares outstanding		9,735		9,707
Net income (loss) per common share:
Basic	$	0.22	$	(0.20	)
Diluted	$	0.22	$	(0.20	)

( 1 ) The weighted-average number of antidilutive shares not included in the computation of diluted net income per share was 24,000 for the three months ended March  31, 2019. The weighted-average number of antidilutive shares not included in the computation of diluted net loss per share was approximately 87,000 for the three months ended March  31, 2018, including approximately  34,000 of performance-based share awards, at the target level of 100%, that were not included because the performance conditions had not been met as of March  31, 2018.

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Note 13 - Recent Accounting and Reporting Developments

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

13 . Recent Accounting and Reporting Developments

There have been

no

developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company’s Condensed Consolidated Financial Statements and disclosures in Notes to Condensed Consolidated Financial Statements, from those disclosed in the Company’s

2018

Form 

10

-K, except for the following:

Accounting Changes

In

February 2016,

the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)

No.

 

2016

-

02,

“Leases (Topic 

842

)” (“ASU 

2016

-

02”

), which requires lessees to recognize on the balance sheet right-of-use assets and lease liabilities for the rights and obligations created by the majority of leases, including those historically accounted for as operating leases. During

2018

and

2019,

the FASB issued additional ASUs that clarify the implementation guidance for ASU

2016

-

02

but do

not

change the core principle of the guidance. The Company adopted Accounting Standards Codification (“ASC”) Topic 

842,

“Leases” on

January 

1,

2019

using the modified retrospective transition method which allowed it to continue to apply legacy guidance for periods prior to

2019.

The Company elected the package of transition practical expedients which, among other things, allowed it to keep the historical lease classifications and

not

reassess the lease classification for any existing leases as of the date of adoption. The Company also made an accounting policy election to apply the short-term lease exception, which allows it to keep leases with an initial term of

twelve

months or less off the balance sheet. Upon adoption on

January 

1,

2019,

the Company recognized right-of-use assets and lease liabilities for operating leases of approximately 

$8.0

 million.

In

August 2017,

the FASB issued Accounting Standards Update

No.

 

2017

-

12,

“Derivatives and Hedging (Topic 

815

): Targeted Improvements to Accounting for Hedging Activities,” which better aligns risk management activities and financial reporting for hedging relationships, simplifies hedge accounting requirements, and improves disclosures of hedging arrangements. The Company adopted this guidance on

January 

1,

2019

and the impact was

not

material to the Company’s financial position, results of operations, or cash flows.

In

February 2018,

the FASB issued Accounting Standards Update

No.

 

2018

-

02,

“Income Statement—Reporting Comprehensive Income (Topic 

220

): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU

2018

-

02”

), which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of

2017.

The Company adopted this guidance on

January 

1,

2019,

which resulted in reclassification between Accumulated other comprehensive loss and Retained earnings of

$0.2

 million, and had

no

impact on the Company’s results of operations or cash flows.

In

July 2018,

the FASB issued Accounting Standards Update

No.

 

2018

-

09,

“Codification Improvements,” which clarifies, corrects errors in, or makes minor improvements to the ASC. The Company adopted this guidance on

January 

1,

2019

and the impact was

not

material to the Company’s financial position, results of operations, or cash flows.

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Note 14 - Restructuring

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

14 . Restructuring

In

March 2018,

the Company announced its plan to close its leased Permalok

®

manufacturing facility in Salt Lake City, Utah and move the production to the Permalok

®

production facility in St. Louis, Missouri, which was completed during the

second

quarter of

2018.

Also in

March 2018,

the Company announced its plan to close its manufacturing facility in Monterrey, Mexico. Production ceased early in the

second

quarter of

2018,

and the facility was sold in

December 2018.

The Company incurred restructuring expense of

$0.3

 million during the

three

months ended

March 

31,

2018,

which includes employee severance and termination related restructuring expense of

$0.2

 million and expense related to demobilization activities of

$0.1

 million.

XML

Note 15 - Subsequent Event

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Subsequent Events [Text Block]

15 . Subsequent Event

On

April 21, 2019, 

there was an accidental fire at the Company’s Saginaw, Texas facility which resulted in damage to the coatings building. There were

no

injuries, but the ability to coat at this facility will be impaired while the Company assesses and repairs the damage. The Company’s other production locations can be deployed to absorb whatever lost production it has as a result. The Company has insurance coverage in place covering, among other things, property damage and business interruption up to certain specified amounts, and has notified its insurers of the incident.

XML

Note 2 - Business Combination (Tables)

3 Months Ended

Mar. 31, 2019

Notes Tables

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

Assets
Cash and cash equivalents	$	912
Trade and other receivables		8,887
Contract assets		12,018
Inventories		7,937
Prepaid expenses and other		3,777
Property and equipment		34,827
Other assets		320
Total assets acquired		68,678
Liabilities
Accounts payable		5,520
Accrued liabilities		1,599
Contract liabilities		123
Deferred income taxes		3,221
Total liabilities assumed		10,463
Bargain purchase gain		(20,080	)
Total purchase consideration	$	38,135

Business Acquisition, Pro Forma Information [Table Text Block]

	Three Months Ended March 31, 2018
Net sales	$	43,567
Net loss		(22,614	)

XML

Note 4 - Inventories (Tables)

3 Months Ended

Mar. 31, 2019

Notes Tables

Schedule Of Inventory Current And Non Current [Table Text Block]

	March 31, 2019		December 31, 2018
Current inventories:
Raw materials	$	37,381	$	34,426
Work-in-process		1,409		2,368
Finished goods		824		1,075
Supplies		1,502		1,507
Total current inventories	$	41,116	$	39,376

XML

Note 5 - Leases (Tables)

3 Months Ended

Mar. 31, 2019

Notes Tables

Lease, Cost [Table Text Block]

	Three Months Ended March 31,
	2019
Finance lease cost:
Amortization of right-of-use assets	$	109
Interest on lease liabilities		15
Operating lease cost		425
Short-term lease cost		262
Variable lease cost		40
Total lease cost	$	851

Lessee, Liability, Maturity [Table Text Block]

	Finance Leases			Operating Leases
2019	$	348		$	1,334
2020		375			1,664
2021		258			1,134
2022		237			903
2023		34			752
Thereafter		-			4,338
Total lease payments		1,252			10,125
Amount representing interest		(103	)		(1,839	)
Present value of lease liabilities		1,149			8,286
Current portion of lease liabilities, included in Accrued liabilities		(393	)		(1,426	)
Lease liabilities, less current portion, included in Other long-term liabilities	$	756		$	6,860

Lease Terms and Discount Rates for Lease Liabilities [Table Text Block]

	March 31, 2019
Weighted-average remaining lease term (years)
Finance leases		3.28
Operating leases		8.85
Weighted-average discount rate
Finance leases		5.03	%
Operating leases		4.55	%

Other Information Related to Operating and Finance Leases [Table Text Block]

	Three Months Ended March 31,
	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(415	)
Operating cash flows from finance leases		(15	)
Financing cash flows from finance leases		(107	)
Right-of-use assets obtained in exchange for operating lease liabilities		506
Right-of-use assets obtained in exchange for finance lease liabilities		-

XML

Note 6 - Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

Notes Tables

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

	Total		Level 1		Level 2		Level 3
As of March 31, 2019
Financial assets:
Deferred compensation plan	$	5,125	$	4,328	$	797	$	-
As of December 31, 2018
Financial assets:
Deferred compensation plan	$	4,719	$	3,925	$	794	$	-
Foreign currency forward contracts		101		-		101		-
Total financial assets	$	4,820	$	3,925	$	895	$	-

XML

Note 7 - Share-based Compensation (Tables)

3 Months Ended

Mar. 31, 2019

Notes Tables

Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]

	Three Months Ended March 31,
	2019		2018
Cost of sales	$	6	$	17
Selling, general, and administrative expense		16		64
Total	$	22	$	81

Share-based Payment Arrangement, Option, Activity [Table Text Block]

	Options Outstanding		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life		Aggregate Intrinsic Value
					(in years)		(In thousands)
Balance, December 31, 2018		24,000	$	24.15
Options granted		-		-
Options exercised		-		-
Options canceled		-		-
Balance, March 31, 2019		24,000		24.15
Exercisable, March 31, 2019		24,000		24.15		1.00	$	-

Schedule of Unvested Restricted Stock Units and Performance Share Awards Activity [Table Text Block]

	Number of RSUs and PSAs (1)			Weighted- Average Grant Date Fair Value
Unvested PSAs as of December 31, 2018		39,992		$	19.97
RSUs and PSAs granted		86,701			23.56
Unvested RSUs and PSAs canceled		-			-
PSAs vested (2)		(39,992	)		19.97
Unvested RSUs and PSAs as of March 31, 2019		86,701			23.56

XML

Note 11 - Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Mar. 31, 2019

Notes Tables

Schedule of Changes in Accumulated Other Comprehensive Income Loss [Table Text Block]

<div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Pension </div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Liability</div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Adjustment</div></div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Unrealized Gain</div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">(Loss) on Cash </div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Flow Hedges</div></div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Total</div></div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 55%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Balance, December 31, 2018</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,551</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">)</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,536</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt; text-indent: -9pt;">Cumulative-effect adjustment for ASU 2018-02 (Note 13)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(235</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">)</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(235</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 18pt; text-indent: -9pt;">Other comprehensive income (loss) before reclassifications</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">23</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(10</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">)</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 18pt; text-indent: -9pt;">Amounts reclassified from Accumulated other comprehensive loss</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(5</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">)</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(2</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Net current period adjustments to Other comprehensive income</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">26</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(15</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">)</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Balance, March 31, 2019</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,760</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;">)</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,760</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;">)</td> </tr> </table></div>

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

	Amount reclassified from Accumulated Other Comprehensive  Loss						Affected line item in the
Details about Accumulated Other	Three Months Ended March 31,						Condensed Consolidated
Comprehensive Loss Components	2019			2018			Statements of Operations
Pension liability adjustment:
Net periodic pension cost:
Service cost	$	(3	)	$	-		Cost of sales
		(3	)		-		Net of tax
Unrealized gain (loss) on cash flow hedges:
Gain (loss) on cash flow hedges		7			(3	)	Net sales
Associated income tax (expense) benefit		(2	)		1		Income tax expense (benefit)
		5			(2	)	Net of tax
Total reclassifications for the period	$	2		$	(2	)

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Note 12 - Net Income (Loss) Per Share (Tables)

3 Months Ended

Mar. 31, 2019

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended March 31,
	2019		2018
Net income (loss)	$	2,165	$	(1,951	)
Basic weighted-average common shares outstanding		9,735		9,707
Effect of potentially dilutive common shares (1)		-		-
Diluted weighted-average common shares outstanding		9,735		9,707
Net income (loss) per common share:
Basic	$	0.22	$	(0.20	)
Diluted	$	0.22	$	(0.20	)

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Note 1 - Basis of Presentation (Details Textual) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)	Mar. 31, 2018 USD ($)
Number of Operating Segments	1
Revenue from Contract with Customer, Including Assessed Tax	$ 62,643	$ 33,365
Out of Period Adjustment [Member]
Revenue from Contract with Customer, Including Assessed Tax	$ 1,200

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Note 2 - Business Combination (Details Textual) - Ameron Water Transmission Group, LLC [Member] - USD ($)		3 Months Ended
	Jul. 27, 2018	Mar. 31, 2019	Mar. 31, 2018
Business Acquisition, Percentage of Voting Interests Acquired	100.00%
Business Combination, Consideration Transferred, Total	$ 38,135,000
Business Combination, Acquisition Related Costs		$ 100,000	$ 0

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Note 2 - Business Combination - Assets Acquired and Liabilities Assumed (Details) - Ameron Water Transmission Group, LLC [Member] $ in Thousands	Jul. 27, 2018 USD ($)
Cash and cash equivalents	$ 912
Trade and other receivables	8,887
Contract assets	12,018
Inventories	7,937
Prepaid expenses and other	3,777
Property and equipment	34,827
Other assets	320
Total assets acquired	68,678
Accounts payable	5,520
Accrued liabilities	1,599
Contract liabilities	123
Deferred income taxes	3,221
Total liabilities assumed	10,463
Bargain purchase gain	(20,080)
Total purchase consideration	$ 38,135

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Note 2 - Business Combination - Pro Forma Summary (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Net sales	$ 43,567
Net loss	$ (22,614)

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Note 3 - Discontinued Operations (Details Textual) - Atchison Facility [Member] $ in Millions	Dec. 26, 2017 USD ($)
Disposal Group, Including Discontinued Operation, Consideration	$ 37.2
Placed in Escrow Unitil February 2018 [Member]
Escrow Deposits Related to Property Sales	0.8
Placed in Escrow Until December 2018 [Member]
Escrow Deposits Related to Property Sales	$ 3.7

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Note 4 - Inventories - Components of Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Raw materials	$ 37,381	$ 34,426
Work-in-process	1,409	2,368
Finished goods	824	1,075
Supplies	1,502	1,507
Total current inventories	$ 41,116	$ 39,376

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Note 5 - Leases (Details Textual)	3 Months Ended
	Mar. 31, 2019
Maximum [Member]
Lessee, Term of Contract	10 years

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Note 5 - Leases - Lease Cost (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Amortization of right-of-use assets	$ 109
Interest on lease liabilities	15
Operating lease cost	425
Short-term lease cost	262
Variable lease cost	40
Total lease cost	$ 851

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Note 5 - Leases - Future Maturities of Lease Liabilities (Details) $ in Thousands	Mar. 31, 2019 USD ($)
2019, finance leases	$ 348
2019, operating leases	1,334
2020, finance leases	375
2020, operating leases	1,664
2021, finance leases	258
2021, operating leases	1,134
2022, finance leases	237
2022, operating leases	903
2023, finance leases	34
2023, operating leases	752
Thereafter, finance leases
Thereafter, operating leases	4,338
Total lease payments, finance leases	1,252
Total lease payments, operating leases	10,125
Amount representing interest, finance leases	(103)
Amount representing interest, operating leases	(1,839)
Present value of lease liabilities, finance leases	1,149
Present value of lease liabilities, operating leases	8,286
Current portion of lease liabilities, included in Accrued liabilities, finance leases	(393)
Current portion of lease liabilities, included in Accrued liabilities, operating leases	(1,426)
Lease liabilities, less current portion, included in Other long-term liabilities, finance leases	756
Lease liabilities, less current portion, included in Other long-term liabilities, operating leases	$ 6,860

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Note 5 - Leases - Lease Terms and Discount Rates for Lease Liabilities (Details)	Mar. 31, 2019
Finance leases, weighted-average remaining lease term (Year)	3 years 102 days
Operating leases, weighted-average remaining lease term (Year)	8 years 310 days
Finance leases, weighted-average discount rate	5.03%
Operating leases, weighted-average discount rate	4.55%

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Note 5 - Leases - Other Information Related to Operating and Finance Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating cash flows from operating leases	$ (415)
Operating cash flows from finance leases	(15)
Payments on finance lease obligations	(107)	$ (94)
Right-of-use assets obtained in exchange for operating lease liabilities	506
Right-of-use assets obtained in exchange for finance lease liabilities		$ 458

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Note 6 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Deferred compensation plan	$ 5,125	$ 4,719
Foreign currency forward contracts		101
Total financial assets		4,820
Fair Value, Inputs, Level 1 [Member]
Deferred compensation plan	4,328	3,925
Foreign currency forward contracts
Total financial assets		3,925
Fair Value, Inputs, Level 2 [Member]
Deferred compensation plan	797	794
Foreign currency forward contracts		101
Total financial assets		895
Fair Value, Inputs, Level 3 [Member]
Deferred compensation plan
Foreign currency forward contracts
Total financial assets

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Note 7 - Share-based Compensation (Details Textual) $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($) shares	Mar. 31, 2018
Number Of Active Stock Incentive Plans	1
Restricted Stock Units and Performance Share Award Target Level, Percentage	100.00%	100.00%
Performance Awards Issued Multiplier	0.00%
Minimum [Member]
Performance Awards Issued Multiplier	0.00%
Maximum [Member]
Performance Awards Issued Multiplier	150.00%
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Performance Shares [Member]
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Number At Target Level Of Performance | shares	65,000
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $	$ 2.2
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition	2 years 73 days

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Note 7 - Share-based Compensation - Share-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share-based compensation expense	$ 22	$ 81
Cost of Sales [Member]
Share-based compensation expense	6	17
Selling, General and Administrative Expenses [Member]
Share-based compensation expense	$ 16	$ 64

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Note 7 - Share-based Compensation - Stock Option Activity (Details)	3 Months Ended
	Mar. 31, 2019 USD ($) $ / shares shares
Balance, shares (in shares) | shares	24,000
Balance, weighted average exercise price (in dollars per share) | $ / shares	$ 24.15
Options granted, shares (in shares) | shares
Options granted, weighted average exercise price (in dollars per share) | $ / shares
Options exercised, shares (in shares) | shares
Options exercised, weighted average exercise price (in dollars per share) | $ / shares
Options canceled, shares (in shares) | shares
Options canceled, weighted average exercise price (in dollars per share) | $ / shares
Balance, shares (in shares) | shares	24,000
Balance, weighted average exercise price (in dollars per share) | $ / shares	$ 24.15
Balance, weighted average remaining contractual life (Year)
Balance, aggregate instrinsic value | $
Exercisable, shares (in shares) | shares	24,000
Exercisable, weighted average exercise price (in dollars per share) | $ / shares	$ 24.15
Exercisable, weighted average remaining contractual life (Year)	1 year
Exercisable, aggregate instrinsic value | $

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Note 7 - Share-based Compensation - RSU and PSA Activity (Details) - Restricted Stock Units and Performance Stock Awards [Member]	3 Months Ended
	Mar. 31, 2019 $ / shares shares
Unvested RSUs and PSAs (in shares) | shares	39,992	[1]
Unvested RSUs and PSAs (in dollars per share) | $ / shares	$ 19.97
RSUs and PSAs granted (in shares) | shares	86,701	[1]
RSUs and PSAs granted (in dollars per share) | $ / shares	$ 23.56
Unvested RSUs and PSAs canceled (in shares) | shares		[1]
Unvested RSUs and PSAs canceled (in dollars per share) | $ / shares
PSAs vested (2) (in shares) | shares	(39,992)	[1],[2]
PSAs vested (2) (in dollars per share) | $ / shares	$ 19.97	[2]
Unvested RSUs and PSAs (in shares) | shares	86,701	[1]
Unvested RSUs and PSAs (in dollars per share) | $ / shares	$ 23.56

[1] The number of PSAs disclosed in this table are at the target level of 100%.

[2] The PSAs vested on March 29, 2019; the actual number of common shares that were issued was determined by multiplying the PSAs by a payout percentage of 0%, as the performance-based conditions were not achieved.

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Note 8 - Commitments and Contingencies (Details Textual) $ in Millions	1 Months Ended
	Jan. 31, 2017 USD ($)	Mar. 31, 2019 USD ($)	Jun. 30, 2014 USD ($)
Number Of Potentially Responsible Parties		150
Estimated Cost of EPA Selected Remedy	$ 1,000.0
Estimated Time to Complete Selected EPA Remedy	13 years
Letters of Credit Outstanding, Amount		$ 1.6
Portland Harbor Natural Resources Trustee Council [Member]
Loss Contingency, Accrual, Current			$ 0.4
Lower Willamette Group [Member]
Number Of Potentially Responsible Parties		14

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Note 9 - Revenue 1 (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Increase (Decrease) in Revenue from Contract with Customers, Including Assessed Tax	$ (1.5)	$ 0.8
Contract with Customer, Liability, Revenue Recognized	3.3	$ 1.7
Revenue, Remaining Performance Obligation, Amount	$ 167.3

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Note 9 - Revenue 2 (Details Textual)	Mar. 31, 2019
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01
Revenue, Remaining Performance Obligation, Percentage	71.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue, Remaining Performance Obligation, Percentage	25.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year

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Note 10 - Income Taxes (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Effective Income Tax Rate Reconciliation, Percent, Total	8.10%	12.20%
Unrecognized Tax Benefits, Ending Balance	$ 4.4		$ 4.4

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Note 11 - Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Beginning balance	$ 218,590	$ 200,264
Cumulative-effect adjustment for new standard		(875)
Other comprehensive income (loss), net of tax	11	49
Ending balance	220,788	196,267
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Beginning balance	(1,551)
Cumulative-effect adjustment for new standard	(235)
Other comprehensive income (loss) before reclassifications	23
Amounts reclassified from Accumulated other comprehensive loss	3
Other comprehensive income (loss), net of tax	26
Ending balance	(1,760)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Beginning balance	15
Cumulative-effect adjustment for new standard
Other comprehensive income (loss) before reclassifications	(10)
Amounts reclassified from Accumulated other comprehensive loss	(5)
Other comprehensive income (loss), net of tax	(15)
Ending balance
AOCI Attributable to Parent [Member]
Beginning balance	(1,536)	(1,445)
Cumulative-effect adjustment for new standard	(235)
Other comprehensive income (loss) before reclassifications	13
Amounts reclassified from Accumulated other comprehensive loss	(2)
Other comprehensive income (loss), net of tax	11
Ending balance	$ (1,760)	$ (1,396)

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Note 11 - Accumulated Other Comprehensive Loss - Reclassification of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cost of sales	$ 56,072	$ 32,017
Net income (loss)	2,165	(1,951)
Revenue from Contract with Customer, Including Assessed Tax	62,643	33,365
Associated income tax (expense) benefit	(191)	272
Reclassification out of Accumulated Other Comprehensive Income [Member]
Net income (loss)	2	(2)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Cost of sales	(3)
Net income (loss)	(3)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]
Net income (loss)	5	(2)
Revenue from Contract with Customer, Including Assessed Tax	7	(3)
Associated income tax (expense) benefit	$ (2)	$ 1

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Note 12 - Net Income (Loss) Per Share (Details Textual) - shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	24,000	87,000
Restricted Stock Units and Performance Share Award Target Level, Percentage	100.00%	100.00%
Performance Shares [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		34,000

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Note 12 - Net Income (Loss) Per Share - Net Loss Per Basic and Diluted Weighted Average Common Shares Outstanding (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended
		Mar. 31, 2019	Mar. 31, 2018
Net income (loss)		$ 2,165	$ (1,951)
Basic weighted-average common shares outstanding (in shares)		9,735	9,707
Effect of potentially dilutive common shares(1) (in shares)	[1]
Diluted weighted-average common shares outstanding (in shares)		9,735	9,707
Basic (in dollars per share)		$ 0.22	$ (0.20)
Diluted (in dollars per share)		$ 0.22	$ (0.20)

[1] The weighted-average number of antidilutive shares not included in the computation of diluted net income per share was 24,000 for the three months ended March 31, 2019. The weighted-average number of antidilutive shares not included in the computation of diluted net loss per share was approximately 87,000 for the three months ended March 31, 2018, including approximately 34,000 of performance-based share awards, at the target level of 100%, that were not included because the performance conditions had not been met as of March 31, 2018.

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Note 13 - Recent Accounting and Reporting Developments (Details Textual) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018	Dec. 31, 2017
Cumulative Effect of New Accounting Principle in Period of Adoption				$ (875)
Operating Lease, Liability, Total	$ 8,286
AOCI Attributable to Parent [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption			(235)
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption			$ 235	$ (875)
Accounting Standards Update 2016-02 [Member]
Operating Lease, Right-of-Use Asset		$ 8,000
Operating Lease, Liability, Total		8,000
Accounting Standards Update 2018-02 [Member] | AOCI Attributable to Parent [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption		(200)
Accounting Standards Update 2018-02 [Member] | Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption		$ 200

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Note 14 - Restructuring (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Restructuring Charges, Total		$ 305
Employee Severance [Member]
Restructuring Charges, Total		200
Demobilization Activities [Member]
Restructuring Charges, Total		$ 100