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Headwaters Incorporated Announces Results For First Quarter Of Fiscal 2013

Conference Call

Management will host a conference call with a simultaneous web cast today at 11:00 a.m. Eastern, 9:00 a.m. Mountain Time to discuss the Company’s financial results and business outlook. The call will be available live via the Internet by accessing Headwaters’ web site at www.headwaters.com and clicking on the Investor Relations section. To listen to the live broadcast, please go to the web site at least fifteen minutes early to register, download, and install any necessary audio software. There will also be corresponding slides with the webcast. For those who cannot listen to the live broadcast, an online replay will be available for 90 days on www.headwaters.com, or a phone replay will be available through February 5, 2013 by dialing 1-800-406-7325 or 303-590-3030 and entering the pass code 4592382.

About Headwaters Incorporated

Headwaters Incorporated is improving lives through innovative advancements in construction materials through application, design, and purpose. Headwaters is a diversified growth company providing products, technologies and services to the heavy construction materials, light building products, and energy technology industries. Through its coal combustion products, building products, and energy businesses, the Company has been able to improve sustainability by transforming underutilized resources into valuable products. www.headwaters.com

Forward Looking Statements

Certain statements contained in this press release are forward-looking statements within the meaning of federal securities laws and Headwaters intends that such forward-looking statements be subject to the safe-harbor created thereby. Forward-looking statements include Headwaters’ expectations as to the managing and marketing of coal combustion products, the production and marketing of building products, the sale of its discontinued cleaned coal operations, the licensing of residue hydrocracking technology and catalyst sales to oil refineries, the availability of refined coal tax credits, the development, commercialization, and financing of new technologies and other strategic business opportunities and acquisitions, and other information about Headwaters. Such statements that are not purely historical by nature, including those statements regarding Headwaters’ future business plans, the operation of facilities, the availability of feedstocks, and the marketability of the coal combustion products, building products, cleaned coal, catalysts, and the availability of tax credits, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding future events and our future results that are based on current expectations, estimates, forecasts, and projections about the industries in which we operate and the beliefs and assumptions of our management. Actual results may vary materially from such expectations. Words such as “may,” “should,” “intends,” “plans,” “expects,” “anticipates,” “targets,” “goals,” “projects,” “believes,” “seeks,” “estimates,” “forecasts,” or variations of such words and similar expressions, or the negative of such terms, may help identify such forward-looking statements. Any statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances, are forward-looking. In addition to matters affecting the coal combustion products, building products, and energy industries or the economy generally, factors that could cause actual results to differ from expectations stated in forward-looking statements include, among others, the factors described in the caption entitled “Risk Factors” in Item 1A in Headwaters’ Annual Report on Form 10-K for the fiscal year ended September 30, 2012, Quarterly Reports on Form 10-Q, and other periodic filings and prospectuses.

Although Headwaters believes that its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that our results of operations will not be adversely affected by such factors. Unless legally required, we undertake no obligation to revise or update any forward-looking statements for any reason. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Our internet address is www.headwaters.com . There we make available, free of charge, our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports, as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. Our reports can be accessed through the investor relations section of our web site.

HEADWATERS INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(in thousands, except per-share amounts)
 
          Quarter Ended December 31,
2011           2012
Revenue:          
Light building products $ 73,334 $ 76,688
Heavy construction materials 63,138 68,158
Energy technology   955                 4,727  
Total revenue 137,427 149,573
 
Cost of revenue:
Light building products 55,330 56,501
Heavy construction materials 47,098 53,584
Energy technology   557                 2,243  
Total cost of revenue   102,985                 112,328  
Gross profit 34,442 37,245
 
Operating expenses:
Amortization 5,505 4,936
Research and development 1,854 1,606
Selling, general and administrative 21,282 24,671
Restructuring costs   1,388                 0  
Total operating expenses   30,029                 31,213  
Operating income 4,413 6,032
 
Net interest expense (12,456 ) (10,472 )
Other income (expense), net   (4,137 )               36  
Loss from continuing operations before income taxes (12,180 ) (4,404 )
 
Income tax benefit (provision)   (1,100 )               530  
Loss from continuing operations (13,280 ) (3,874 )
 
Loss from discontinued operations, net of income taxes   (10,468 )               (1,998 )
Net loss $ (23,748 )             $ (5,872 )
 
 
Basic and diluted loss per share:
From continuing operations $ (0.22 ) $ (0.06 )
From discontinued operations   (0.17 )               (0.03 )
$ (0.39 )             $ (0.09 )
 
Weighted average shares outstanding--basic and diluted   60,801                 61,982  
 
 
Operating income (loss) by segment:
Light building products $ 773 $ 3,127
Heavy construction materials 8,754 7,607
Energy technology (2,001 ) 82
Corporate   (3,113 )               (4,784 )
Total $ 4,413               $ 6,032  
 
 
HEADWATERS INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(in thousands)
 
September 30, December 31,
Assets: 2012             2012
Current assets:
Cash and cash equivalents $ 53,782 $ 78,420
Trade receivables, net 102,006 70,916
Inventories 31,588 39,153
Other   27,320                 27,506  
Total current assets 214,696 215,995
 
Property, plant and equipment, net 159,706 162,324
Intangible assets, net 143,911 138,975
Goodwill 116,671 153,001
Other assets   45,953                 46,435  
Total assets $ 680,937               $ 716,730  
 
Liabilities and Stockholders' Equity:
Current liabilities:
Accounts payable $ 17,477 $ 15,286
Accrued liabilities   123,691                 91,969  
Total current liabilities 141,168 107,255
 
Long-term debt 500,539 501,271
Income taxes 22,079 22,108
Other long-term liabilities   20,280                 16,574  
Total liabilities   684,066                 647,208  
 
Stockholders' equity:
Common stock - par value 61 73
Capital in excess of par value 640,047 718,622
Retained earnings (accumulated deficit) (643,109 ) (648,981 )
Treasury stock   (128 )               (192 )
Total stockholders' equity   (3,129 )               69,522  
Total liabilities and stockholders' equity $ 680,937               $ 716,730  




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