HEADWATERS INCORPORATED (NYSE: HW), a building products company dedicated to improving lives through innovative advancements in construction materials, today announced results for its fourth quarter and fiscal year ended September 30, 2012.
Fourth Quarter Highlights
- Fourth quarter revenue of $190.1 million, an increase of 7% over prior year
- Gross profit margin improved by 230 basis points to 29.8%
- Operating income increased 120% to $15.9 million
- Repaid $3.5 million of subordinated debt in the quarter
“We continued to see revenue growth in the fourth quarter, driven primarily by improvements in new residential construction and market share gains," said Kirk A. Benson, Chairman and Chief Executive Officer of Headwaters. "We maintained exceptional operating leverage with contribution margins in excess of 47%, greatly expanding operating income in an up market. For the quarter, operating income grew by 120% to $15.9 million."Our successful restructuring in our light building products segment resulted in gross margin improvement of 470 basis points to 28.8%, and operating income improvement from $(14.7) million to $25.5 million for the year. The momentum continued in the fourth quarter as our heavy construction materials and light building products segments had quarterly Adjusted EBITDA margins of 21.7% and 20.8%, respectively. “For 2013, we look forward to our first positive consolidated income from continuing operations since 2007, fulfilling our commitment to provide innovative building materials to our customers and to carefully manage our business and capital structure.” Fourth Quarter Summary Headwaters’ fourth quarter 2012 revenue increased by 7% to $190.1 million from $178.3 million for the fourth quarter of 2011. Gross profit increased by 16% to $56.7 million in the fourth quarter of 2012, compared to $49.0 million in the fourth quarter of 2011. Operating income improved from $7.2 million in 2011 to $15.9 million in 2012, and Adjusted EBITDA declined by $4.1 million to $28.8 million from $32.9 million.