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, 2013.
Fourth Quarter Highlights
- Light building products revenue increased 21% and Adjusted EBITDA increased 19%
- Heavy construction materials revenue increased 3% and Adjusted EBITDA increased 14%
- Consolidated operating income and income from continuing operations for the quarter improved 65% and 334%, respectively
- Repaid $7.9 million of convertible debt, reducing our February 2014 debt maturity to $7.7 million; maintained over $75 million of cash on hand
"We ended fiscal year 2013 with a strong fourth quarter, growing revenue by 13%, operating income by 65%, and Adjusted EBITDA by 15% over the fourth quarter of 2012. As expected, our heavy construction materials segment showed better sequential performance as the weather improved in the northern half of the United States. Our architectural stone revenue continued to show improving trends due to our 'good, better, and best' strategy and to exposure to new residential construction. Our block group benefited from introducing new products, geographic expansion to Louisiana, and a very positive economic environment in Texas," said Kirk A. Benson, Chairman and Chief Executive Officer. "Net income turned positive for the first time since early in the housing down cycle, due to improved revenue, operating efficiencies, and lower interest expense. We continued to manage our capital structure by prepaying a portion of our debt due next February. Having successfully reduced our debt ratios, we are now in the position to begin using cash flow and a balanced debt strategy to accelerate growth.
"Fiscal year 2014 is starting on a strong note. We are introducing several new light building products in 2014 and expect improved performance from our heavy construction materials segment. Accordingly, we are initiating Adjusted EBITDA guidance for fiscal year 2014 in the range of $125 million to $140 million."