anticipates that its existing cash and cash equivalents, cash flows expected to be generated by operations and amounts available under its line of credit will be adequate to fund its working capital and capital requirements for at least the next twelve months.  To the extent necessary, the Company may also satisfy capital requirements through additional bank borrowings, senior notes and cap- ital and operating leases if such resources are available on satisfactory terms. The Company has from time to time evaluated and continues to evaluate opportunities for acquisitions and expansion. Any such transactions, if consummated, may use a portion of the Company’s work- ing capital or necessitate additional bank borrowings. On June 18, 1999, the Company acquired all of the outstanding common stock of Saginaw. Saginaw operates two facilities, which pro- duce custom fabricated piping assemblies. The purchase price of $4.5 million has been allocated to the underlying assets and liabilities, including certain debt, of Saginaw.  In June 1998, the Company acquired from L.B. Foster Company the plant, equipment, leasehold and contract rights and miscella- neous assets of its Fosterweld Division manufacturing facility (the “Parkersburg Facility”) for $5.3 million, and acquired the Parkersburg Facility’s inventory net of assumed accounts payable. The Parkersburg Facility is employed in the manufacture of large diameter, high pres- sure steel pipe products.  In March 1998, the Company acquired all of the outstanding capital stock of Southwestern Pipe, Inc. (“Southwestern”) and P&H Tube Corporation (“P&H”) for $40.1 million. The excess of the acquisition cost over the fair value of the net assets acquired of $23.7 mil- lion is being amortized over 40 years using the straight-line method. The principal business of both Southwestern and P&H is the manufacture and sale of structural and mechanical tubing products. In September 2000, the FASB issued SFAS No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, a replacement of FASB Statement No. 125. This Statement replaces FASB Statement No. 125, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities. It revises the standards for accounting for securitizations and other trans- fers of financial assets and collateral and requires certain disclosures, but it carries over most of Statement 125’s provisions without reconsideration. The Statement provides accounting and reporting standards for transfers and servicing of financial assets and extinguish- ments of liabilities. Those standards are based on consistent application of a financial-components approach that focuses on control. Under that approach, after a transfer of financial assets, an entity recognizes the financial and servicing assets it controls and the liabilities it has incurred, derecognizes financial assets when control has been surrendered, and derecognizes liabilities when extinguished. This Statement provides consistent standards for distinguishing transfers of financial assets that are sales from transfers that are secured borrowings. SFAS No. 140 is effective for transfers and servicing of financial assets and extinguishments of liabilities occurring after March 31, 2001. It is effective for recognition and reclassification of collateral and for disclosures relating to securitization transactions and collateral for fiscal years ending after December 15, 2000. Disclosures about securitization and collateral accepted need not be reported for periods ending on or before December 15, 2000, for which financial statements are presented for comparative purposes. The Company believes that the adoption of this statement will not have a material impact on the Company’s consolidated financial statements. In December 1999, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 101, “Revenue Recognition in Financial Statements” (SAB 101). SAB 101 provided guidance on the recognition, presentation and disclosure of revenues in financial statements. The Company adopted SAB 101 as of December 31, 2000. The adoption did not have a material effect on the previously reported quarterly financial results or the annual financial results, as the Company’s revenue recognition policies were already consistent with SAB 101. In March 2000, the FASB issued FASB Interpretation No. 44, (FIN 44) “Accounting for Certain Transactions Involving Stock Com- pensation – an Interpretation of APB Opinion No. 25” which provides interpretive guidance on several implementation issues related to Accounting Principles Board Opinion No. 25 “Accounting for Stock Issued to Employees.” FIN 44 is effective July 1, 2000, but certain con- clusions must be applied earlier. The adoption of FIN 44 did not have a material impact on the Company’s consolidated financial statements. The FASB has issued SFAS No. 137, “Accounting for Derivative Instruments and Hedging Activities – Deferral of the Effective Date of FASB Statement No. 133.” This statement amends SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities” to be effective for all fiscal quarters of all fiscal years beginning after June 15, 2000. SFAS No. 133 requires that every derivative instrument be recorded in the balance sheet as either an asset or liability measured at its fair value. The statement requires that changes in the deriv- ative’s fair value be recognized in earnings unless specific hedge accounting criteria are met. The Company believes that the effect of adoption of SFAS No. 133 will not have a material effect on the Company’s financial statements. The FASB has issued SFAS No. 138, “Accounting for Certain Derivative Instruments and Certain Hedging Activities – an Amend- ment of FASB Statement No. 133.” This statement amends SFAS No. 133 for specified transactions. SFAS No. 138 is effective concurrently with SFAS No. 133 if SFAS No. 133 is not adopted prior to June 15, 2000. If SFAS No. 133 is adopted prior to June 15, 2000, SFAS No. 138 is effective for quarters beginning after June 15, 2000. The Company believes that the effect of adoption of SFAS No. 138 will not have a material effect on the Company’s financial statements. Northwest Pipe Company | 12 Recent Accounting Pronouncements Acquisitions 