HEADWATERS INCORPORATED (NYSE: HW),
a building products company dedicated to improving lives through innovative advancements in construction materials, today announced results for its first quarter of fiscal 2013.
First Quarter Highlights
- Revenue increased 9% to $149.6 million
- Gross profit increased 8% to $37.2 million
- Results from continuing operations improved by over 70%
- Increasing expected 2013 Adjusted EBITDA range by $10 million to $110 to $125 million, and on track to achieve first annual net profit since 2007
- Issued 11.5 million shares of common stock at $7.25 per share, generating net cash proceeds of $77.8 million
- Acquired the assets of Kleer Lumber, Inc. ("Kleer"), adding products in key niche markets, increasing distribution channels, and positioning Headwaters for increased participation in new residential construction
“Benefiting from the recovery in new residential construction, we had a strong first quarter with revenue increases in both our light building products and heavy construction materials segments,” said Kirk A. Benson, Chairman and Chief Executive Officer of Headwaters. “Our year-over-year revenue growth gave us confidence to increase our Adjusted EBITDA guidance for 2013. Our forecast anticipates continued momentum in new residential construction spending, as well as an EBITDA contribution from the recent Kleer acquisition.
“Early in January, we completed a major step in our transition to a pure play light building products and heavy construction materials company with the sale of our remaining coal cleaning facilities,” continued Mr. Benson. “2013 is off to a great start. We are beginning the new year with a more focused, streamlined business and an improved balance sheet, positioning us to capitalize on the recovery of the new residential housing and remodeling markets.”
First Quarter Summary
Headwaters’ first quarter 2013 revenue increased by 9% to $149.6 million from $137.4 million for the first quarter of 2012. Gross profit increased by 8% to $37.2 million in the first quarter of 2013, compared to $34.4 million in the first quarter of 2012. Operating income improved 37% from $4.4 million in 2012 to $6.0 million in 2013 and Adjusted EBITDA declined slightly to $19.7 million from $20.4 million. Included in the 2013 results was approximately $2.2 million of compensation expense, compared to less than $0.1 million last year, tied to performance of the Company's stock price, which increased approximately 30% in the current quarter. In fiscal year 2013, we anticipate approximately $1.5 million of incremental compensation expense for each $1.00 of stock price appreciation.