UPDATE: Headwaters Beats Q1 Expectations

reported better-than-expected earnings for the fiscal first quarter. The South Jordan, Utah-based company posted quarterly net income, including discontinued operations, of $7.1 million, or $0.09 per share, versus a year-ago net loss of $1.4 million, or $0.02 per share. After making adjustments consistent with adjusted EBITDA, adjusted income from continuing operations climbed to $0.17 per share from $0.07 per share. Its revenue climbed 20.5% to $199.6 million. However, analysts were projecting earnings of $0.03 per share on revenue of $188.69 million. Building products revenue climbed 26%, while construction materials revenue surged 14%. Gross profit gained 36% to $55.7 million, while gross margin expanded 320 basis points in the quarter. Adjusted EBITDA climbed 39% to $33.8 million in the quarter, while adjusted EBITDA margin rose by 230 basis points. At December 31, 2014, Headwaters had $151.8 million of cash and cash equivalents on hand. “We had an excellent start to fiscal 2015, reporting a 21% increase in revenue and a 39% increase in Adjusted EBITDA year-over-year. The strong performance was broad-based, including both of our core segments and all major product categories,” said Kirk A. Benson, Chairman and Chief Executive Officer of Headwaters. Headwaters now expects 2015 adjusted EBITDA of $155 million to $165 million. Headwaters shares gained 2.41% to close at $14.42 yesterday.