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Headwater's Revenue Surges

And first-quarter earnings jump 154%.

First-quarter earnings at Utah-based energy and construction services provider



jumped 154% thanks to higher sales and margins.

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The company earned $28.3 million, or 60 cents a share, in the quarter, compared with $11.1 million, or 30 cents a share, a year ago. Analysts were forecasting 57 cents a share in the most recent quarter. Sales rose 28% to $280.5 million, above the consensus estimate of $268 million compiled by Thomson First Call.

Operating income increased 42% to $50.3 million in the quarter, as gross profit margin expanded to 17.91% from 16.16%. The company's tax rate fell to 26% in the latest quarter from 37% a year ago, as the company benefited from credits related to investments in alternative fuel.

"Tax credits claimed by alternative fuel facility owners may begin to be phased out or eliminated prior to their scheduled expiration on Dec. 31, 2007, if the 'reference price' of oil enters into or exceeds an established average annual range of oil prices, adjusted annually for inflation," the company noted. Three facilities owned by a licensee of Headwaters have stopped production due to the uncertain oil price environment. Headwaters added that, "high oil prices create an uncertain environment that could result in further curtailment of production."

Revenue from coal combustion products during the quarter increased 23% to $65.2 million from $53.1 million in the previous year. The increase in revenue, Headwaters said, resulted from a combination of continued strong demand, upward pricing trends in most concrete markets, and increased project revenues. Further, weather conditions in the south central region of the United States were favorable.

This story was created through a joint venture between and IRIS.