This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Headwaters Incorporated Announces Results For Third Quarter Of Fiscal Year 2012

HEADWATERS INCORPORATED (NYSE:HW), a building products company dedicated to improving lives through innovative advancements in construction materials, today announced results for its third quarter of fiscal 2012.

Third Quarter Fiscal 2012 Highlights

  • Light building products revenue increased 6% and Adjusted EBITDA increased 25%
  • Heavy construction materials revenue increased 20% and Adjusted EBITDA increased 33%
  • Sold one coal cleaning facility for total potential consideration of $10.4 million, including assumption of reclamation liabilities
  • Extended maturity of $49.8 million of subordinated debt by two years to 2016 to match projected generation of free cash flow
  • Repaid $15.2 million of subordinated debt in the quarter and $34.7 million year-to-date

CEO Commentary

“We capitalized on increasing demand for construction materials in the third quarter," said Kirk A. Benson, Chairman and Chief Executive Officer of Headwaters. “Our heavy construction materials segment and light building products segment had Adjusted EBITDA margins of 20.1% and 21.2%, respectively. Consolidated Adjusted EBITDA margins for the nine months ended June 30 expanded by 300 basis points compared to last year, as we benefited from greater efficiency and operating leverage in what appears to be an improving market.

“We sold one of our coal cleaning facilities during the quarter, and expect our cash receipts to be approximately $10.4 million as a result of the sale, partially coming from future production royalties and the return of our reclamation bonds. We continue to make progress on the sale of the remaining facilities and we expect to complete further sale transactions this calendar year."

Third Quarter Summary

Headwaters’ third quarter 2012 revenue increased by 9% to $175.6 million from $160.7 million for the third quarter of 2011. Gross profit increased by 19% to $52.4 million in the third quarter of 2012, compared to $44.0 million in the third quarter of 2011. Operating income improved from $13.6 million in 2011 to $15.9 million in 2012, and Adjusted EBITDA improved by $0.2 million to $28.7 million. Headwaters records the majority of its incentive compensation in its third and fourth quarters of the fiscal year due to the seasonality of its business. In the current quarter, Headwaters recorded incentive compensation greater than its original plan due to substantially improved operating performance compared to 2011, and increases in the Company's stock price. The additional incentive compensation recorded in the quarter was $5.5 million.

1 of 10

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,905.88 -22.32 -0.12%
S&P 500 2,081.19 -8.27 -0.40%
NASDAQ 4,915.9420 -23.3850 -0.47%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs