HEADWATERS INCORPORATED (NYSE: HW),
a building products company dedicated to improving lives through innovative advancements in construction materials, today announced highlights from its tenth annual Analyst and Investor Day Conference, which was held Friday, March 2, 2012 in Salt Lake City, UT. The event featured presentations by Chairman & Chief Executive Officer Kirk A. Benson, Chief Financial Officer, Don Newman and Senior Executives: Bill Gehrmann, Gary England, Mike Adams, Jerry Smith, Alan Gurney, Murphy Lents and Dave Ulmer.
“Headwaters is well positioned in terms of its current cost structure and its ability to expand and grow its top line," said Kirk A. Benson, Chairman and Chief Executive Officer of Headwaters. “In the second half of 2011, we focused heavily on cost reduction initiatives and improved efficiencies. We believe we have been successful in permanently cutting costs throughout our businesses. The Company began to realize the benefits of these efforts in the financial results reported by Headwaters for its first quarter of fiscal 2012. We remain committed to emphasizing top line growth through new product offerings, such as our new polished concrete block product, as well as expanding our existing product lines. While growing our top line, we remain vigilant in controlling costs. As Headwaters moves into fiscal 2012 and beyond, we intend to continue taking steps to transform Headwaters into a top tier building products/heavy construction materials Company."
Don Newman, Headwaters Chief Financial Officer, added, “We have very strong operating leverage and contribution margins in our core businesses, which presents significant opportunities to improve profitability as our revenues increase. For each $1 million in incremental sales we generate, we will typically see between $400,000 and $500,000 increase in our pre-tax profit due to our high contribution margins. Additionally, we remain focused on prudently paying down our debt, which should make Headwaters an even more attractive investment as the year progresses.”