First quarter fiscal 2010 financial results summary (unaudited)
The company’s first quarter revenue of US$139.6 million declined 16% compared to US$166.2 million in the quarter ended 31 December 2008. Although revenue was negatively impacted by poor weather in October, the y/y revenue comparison narrowed to its most favorable trend line in eight quarters. The revenue decline in the month of December 2009 narrowed to 8% y/y, further supporting the positive trend.
The operating loss in the December 2009 quarter was US$(6.3) million, compared to an operating loss of US$(9.2) million in the December 2008 quarter, an improvement of US$2.9 million. The net loss in the December 2009 quarter was US$(13.9) million, or US$(0.23) per diluted share. The December 2008 quarter included a pre-tax gain of US$17.6 million related to a convertible debt exchange. Excluding the gain from the debt exchange, the net quarterly loss for 2008 would have been US$(22.1) million or US$(0.54) per diluted share, resulting in a net loss improvement in the December 2009 quarter of US$8.2 million or US$0.31 per diluted share.
First quarter fiscal 2010 highlights
- Restructured company debt, extending maturities and completing a new US$70 million asset-based revolving credit facility.
- Improved operating results by 32%.
- Increased light building products gross margin by 570 basis points.
- Recurring operating costs declined by US$8.4 million, or 20.6%.
- Capex declined by over US$10 million to US$7.3 million.
“Despite adverse weather conditions in October, our revenue trend in the first quarter was positive, as the decline in revenue narrowed to 16% year over year, and further to eight percent in December 2009,” said Kirk A. Benson, Chairman and Chief Executive Officer of Headwaters.
“This is the most favorable year over year quarterly performance in two years, and reflects growth in key product lines. In addition to improved revenue performance, consolidated gross margins expanded by two percent in the quarter.”
“I am particularly pleased with the performance of our products for the repair and remodeling markets, which began to produce solid sales growth. The improving trends in repair and remodeling is consistent with a large number of foreclosures and the tendency of owners to remodel homes as they come out of foreclosure,” concluded Mr. Benson.
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 earns a revenue stream that helps to provide the capital to fund growth of existing and new business opportunities.
Read the article online at: https://www.worldcement.com/the-americas/05022010/headwaters_inc-_q1_revenue_down/