US building materials company Headwaters Incorporated has announced results for the first quarter of its 2015 financial year. Highlights include a 21% increase in revenue to US$200 million, a 36% increase in gross profit and an increase in gross margin by 320 basis points. The building products revenue rose by 26%, operating income was up 133% and adjusted EBITDA increased 34%. Construction materials revenue rose 14%, operating income increased 36% and adjusted EBITDA was up by 30%. The company has increased the lower end of its 2015 adjusted EBITDA guidance from US$150 million to US$155 million, resulting in updated guidance for 2015 adjusted EBITDA to be in the range of US$155 million – US$165 million.
“We had an excellent start to fiscal 2015, reporting a 21% increase in revenue and a 39% increase in adjusted EBITDA year-over-year,” said Kirk A. Benson, Chairman and Chief Executive Officer of Headwaters. “The strong performance was broad-based, including both of our core segments and all major product categories.”
“First quarter flyash volumes increased at the fastest rate in over a decade, benefiting from stable supply, favourable weather, and momentum early in the quarter. We have also implemented price increases, as cement prices continue their upward trend.
“All four of our building products categories performed well in the quarter, primarily due to increased volumes, but also from pricing momentum in selected markets and products. Importantly, products with exposure to the repair and remodel end market trended positively throughout the quarter.
“First quarter results again demonstrated the operating leverage in our business as 21% revenue growth translated into a 153% increase in operating income and an Adjusted EBITDA margin of 16.9% for the quarter, which is a 230 basis point improvement from last year.
“Finally, after six years of working with the EPA and others, we are pleased with the EPA’s decision to regulate coal ash as a “non-hazardous” material in disposal situations. This decision is consistent with science and, combined with the EPA’s support for the use of flyash in concrete, affirms that coal ash should be viewed as a safe and valuable resource for sustainable building practices,” added Benson.
Headwaters Resources is the largest domestic manager and marketer of coal combustion products (CCPs), including flyash. The Company's portfolio of building products includes: architectural stone, resin-based exterior siding accessories (such as specialty siding and shutters), roofing, trim board, decking, railing, concrete block and brick, and various other building products.
Adapted from press release by Katherine Guenioui
Read the article online at: https://www.worldcement.com/the-americas/04022015/headwaters-inc-has-a-great-start-to-fy15-269/