Headwaters Beats Q2 Views

reported a narrower-than-expected loss for the fiscal second quarter on Tuesday. The South Jordan, Utah-based company reported a quarterly net loss of $25.2 million, or $0.34 per share, versus a year-ago net loss of $10.1 million, or $0.14 per share. Excluding one-time items, the company's adjusted income from continuing operations came in at $0.06 per share. Its revenue climbed 15 percent to $179.7 million. However, analysts were expecting a loss of $0.11 per share on revenue of $174.1 million. Building products revenue rose 13 percent to $106.4 million in the second quarter, while construction materials revenue gained 14 percent to $67.5 million. Its adjusted EBITDA rose 35 percent to $24 million, while operating income climbed to $8 million from $0.5 million. Gross profit rose 22 percent, while gross margin widened by 155 basis points in the quarter. At March 31, 2015, the company had $79.7 million of cash and cash equivalents on hand and total liquidity of around $140.3 million. Kirk A. Benson, Chairman and Chief Executive Officer of Headwaters said, "We remain well-positioned to take advantage of improving demand. Second quarter fly ash volumes increased, benefiting from stable supply and continuing strength in demand for our products. If current trends persist, 2015 volume increases are on track to set an annual growth record. We also anticipate a continuing positive pricing environment." Headwaters lifted its FY 2015 adjusted EBITDA outlook to $155 to $170 million. Headwaters shares fell 0.50 percent to $17.80 in pre-market trading.