Headwaters Tops Q4 Expectations

Headwaters Inc HW reported stronger-than-expected results for its fiscal fourth quarter on Tuesday. The South Jordan, Utah-based company reported quarterly net income of $126.6 million, or $1.68 per share, compared to $16.5 million, or $0.22 per share, in the year-ago period. Its adjusted income from continuing operations increased to $0.51 per share from $0.37 per share. Its revenue climbed 11 percent year-over-year to $272.7 million from $245.9 million. However, analysts were expecting a profit of $0.45 per share on revenue of $268.96 million. The average estimate among 4 Estimize users was for earnings of $0.43 per share and revenue of $266.77 million. Building products revenue gained 5 percent to $151.9 million in the quarter, while construction materials revenue surged 14 percent to $111.5 million. Its operating income rose 26 percent to $41 million for the quarter. At September 30, 2015, the company had $142.6 million of cash and cash equivalents on hand and total liquidity of around $203.0 million. "We are very pleased with our strong fourth quarter and fiscal year performance, increasing Adjusted EBITDA by 20%, and finishing in the upper range of our guidance," said Kirk A. Benson, Chairman and Chief Executive Officer of Headwaters. "In addition, our 18.5% fiscal year Adjusted EBITDA margin exceeded our 2006 peak by 60 basis points. In 2016, we anticipate continuing top line growth and margin expansion, leading us to initiate Adjusted EBITDA guidance in the range of $175 million to $190 million." Headwaters shares gained 0.58 percent to close at $20.67 yesterday.