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Revenue Increased 9% to $218 Million
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Adjusted EBITDA Increased 19% to $40 Million
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Operating Income Increased 29% to $25 Million
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Adjusted EPS Increased 65% to $0.28
HEADWATERS INCORPORATED (NYSE: HW), a building products company
dedicated to improving lives through innovative advancements in
construction materials, today announced results for its first quarter of
fiscal 2016.
First Quarter 2016 Highlights
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Revenue increased 9% to $218 million, including 8% organic growth
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Gross profit increased 15% and gross margin expanded by 150 basis
points
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Adjusted EBITDA increased 19% and Adjusted EBITDA margin expanded by
150 basis points
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Building products revenue increased 12%, operating income increased
27%, and Adjusted EBITDA increased 21%
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Construction materials revenue increased 6%, operating income
increased 26%, and Adjusted EBITDA increased 21%
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Completed four bolt-on acquisitions between September 2015 and January
2016
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Raising 2016 Adjusted EBITDA guidance to a range of $180 million to
$200 million
CEO Commentary
“The strength that we experienced in the fourth quarter of fiscal 2015
continued into the first quarter of 2016, driven by strong volume in our
building products segment and strong pricing in our construction
materials segment. The combination of these two factors led to 8%
organic revenue growth and 19% growth in Adjusted EBITDA,” said Kirk A.
Benson, Chairman and Chief Executive Officer of Headwaters. “Typically
margins are softer in the December and March quarters due to the
seasonality of our markets. However, our consolidated Adjusted EBITDA
margin expanded by 150 basis points from last year to a record 18.4% for
a December quarter, and for our continuing business reached an all-time
high for a twelve-month period at 18.8% for the trailing twelve months
ended December 31. We anticipate continued margin expansion in 2016
compared to 2015, and several of our margin expansion opportunities will
carry over into 2017. Our exceptional performance in the quarter,
combined with four bolt-on acquisitions, enables us to raise 2016
Adjusted EBITDA guidance to a new range of $180 million to $200 million.
“While fly ash volumes were impacted by rain in the gulf coast during
the quarter, demand for fly ash continues to be robust, and coupled with
a favorable pricing environment, we were able to expand our Adjusted
EBITDA margin by 300 basis points. We expect our 2016 construction
materials margins will improve over 2015, led by product mix and
pricing, and the first quarter was consistent with this trend. We
continue to anticipate volume increases in the mid-single digits for the
fiscal year as projects delayed by rain will be completed in subsequent
quarters.
“We expect 2016 building products margin expansion to be driven by
organic growth, continuous improvements, and synergies from bolt-on
acquisitions. During our first quarter of 2016, building products
Adjusted EBITDA margins expanded by 140 basis points over last year. We
are optimistic that the bolt-on acquisitions completed over the past
five months will lead to even further improvement in performance as we
integrate these transactions into our operations.”
First Quarter Summary
Headwaters’ first quarter 2016 consolidated revenue increased by 9% to
$218.4 million from $199.6 million for the first quarter of 2015, and
gross profit increased by 15% to $64.3 million, compared to $55.7
million in 2015. Operating income improved from $19.2 million in 2015 to
$24.8 million in 2016, and Adjusted EBITDA increased by $6.4 million to
$40.2 million, or 19% over 2015.
First quarter adjusted income from continuing operations was $21.1
million, or $0.28 per diluted share in 2016, compared to $12.7 million,
or $0.17 per diluted share in 2015, representing increases of 65%
year-over-year. On an unadjusted basis, income from continuing
operations was $12.9 million, or $0.17 per diluted share, for the first
quarter of 2016, compared to $7.1 million, or $0.09 per diluted share,
for the first quarter of 2015, representing increases of more than 80%
year-over-year. Discontinued operations were immaterial in both the 2015
and 2016 quarters. In addition to improvement in operations, income
benefited from substantially lower interest expense due to 2015 debt
refinancing and repayment.
First Quarter Business Segment Highlights
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2016
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2016 Adjusted
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2015 Adjusted
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Business
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2016
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Adjusted
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EBITDA
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EBITDA
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Segment
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Revenue
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EBITDA
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Margin
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Margin
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Building Products
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$131.8 million
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$24.9 million
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18.9%
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17.5%
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Construction Materials
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$86.0 million
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$20.9 million
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24.3%
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21.3%
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2016
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2015
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2016
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2015
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Operating
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Operating
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Business
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Operating
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Operating
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Income
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Income
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Segment
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Income
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Income
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Margin
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Margin
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Building Products
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$15.1 million
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$11.9 million
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11.5%
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10.1%
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Construction Materials
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$17.0 million
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$13.5 million
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19.8%
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16.6%
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Building Products Segment
Headwaters’ building products segment is a national brand leader in
innovative building products through superior design, manufacturing and
channel distribution. The segment markets a wide variety of niche
building products, including siding accessories, manufactured
architectural stone, block and specialty roofing products.
Building products revenue increased 12%, from $117.5 million in the
first quarter of 2015 to $131.8 million in the first quarter of 2016,
including 9% organic growth. In the first quarter of 2016, gross profit
increased 16% to $38.7 million from $33.3 million in 2015, and operating
income increased 27% to $15.1 million from $11.9 million. Adjusted
EBITDA in the first quarter of 2016 increased 21% from $20.6 million in
2015 to $24.9 million.
Organic revenue growth was driven primarily by volume increases in
siding, stone, and block, as we experienced strong demand in all three
product categories. We were especially pleased with the continued
strength in our non-residential Texas markets, offsetting any impact
from low oil prices on residential construction. We are also expanding
our product offering to include higher margin specialty block products
with geographic reach beyond Texas, positioning our block group for
growth in 2017. Further, organic growth in our siding group was the
strongest we have experienced since 2006 and may indicate an increase in
exterior remodeling trends.
Revenue growth contributed to margin increases in the 2016 quarter, with
gross margin increasing by 100 basis points, and operating and Adjusted
EBITDA margins increasing by 140 basis points. Also, several of our
product groups continued to benefit from lower raw material,
transportation and energy costs, which more than offset increased costs
in other areas.
We have completed four additional bolt-on acquisitions in our building
products segment through the end of January, including the small bolt-on
block acquisition that we completed in September 2015. Two of the
acquisitions were in roofing and will strengthen our presence in both
the niche composite and stone-coated metal categories. We anticipate
strong synergies from these two acquisitions as we consolidate our
manufacturing footprint, improving efficiencies and our cost structure.
The fourth acquisition that we completed in January added decking and
railing to our two-step core customer offering. While the decking
transaction is small, it provides us with an opportunity to expand
distribution to existing customers, develop additional decking related
products, and increase our product and manufacturing expertise.
Based on historical revenue information for the acquired businesses, we
estimate a full year revenue impact of approximately $40 million. The
total purchase price for these acquisitions was approximately $65
million, and the purchase price before synergies as a multiple of
historical annual EBITDA was in the range of 7x to 9x.
Construction Materials Segment
Headwaters Resources is the largest domestic manager and marketer of
coal combustion products (CCPs), including fly ash. Utilization of these
materials improves performance of concrete and concrete construction
products while creating significant environmental benefits.
First quarter 2016 revenues increased by 6% to $86.0 million, compared
to $81.4 million in 2015. Service revenue represented approximately 21%
of total segment revenue for the first quarter of 2016, as compared to
23% for the first quarter of 2015. Service revenue was 21% for all of
fiscal 2015. The increase in revenue is primarily attributable to
positive pricing for high-value CCPs.
The weighted average increase in CCP net pricing was higher in the
December quarter than in the September quarter, a trend that started in
early fiscal 2015. Year-over-year net pricing increases were nearly 8%,
and we anticipate that the price increases will continue into the March
quarter. The continued favorable pricing environment results from solid
demand for high quality CCPs used to replace portland cement and
continued resilience in portland cement demand and pricing.
Gross profit increased by 16% to $25.3 million in 2016, compared to
$21.9 million in 2015, and gross margin increased by 260 basis points to
29.5%. Operating income increased $3.5 million, or 26%, from $13.5
million in 2015 to $17.0 million in 2016, with a 320 basis point
increase in operating margin. Adjusted EBITDA increased $3.6 million
from $17.3 million in 2015 to $20.9 million in 2016, or 21%. Adjusted
EBITDA margin of 24.3% in the quarter represents an increase of 300
basis points as compared to last year, which was primarily attributable
to the increase in revenues from high-value CCPs.
Other Matters
Our effective income tax rate for continuing operations for the 2016
fiscal year is currently estimated to be approximately 39%. In the prior
year, our estimated effective income tax rate was approximately 10%
because our net amortizable deferred tax assets were fully reserved, but
in the September 2015 quarter we reversed most of the valuation
allowance on NOL and tax credit carryforwards and certain other deferred
tax assets. In the 2015 and 2016 December quarters, we also recorded
$0.9 million and $2.9 million, respectively, of discrete income tax
benefits.
Even though we are now recording income tax expense at a normalized rate
of approximately 39%, until our NOL and tax credit carryforwards are
exhausted, cash payments for income taxes are expected to be immaterial.
For example, in 2016, we currently expect cash payments for income taxes
to be approximately $5.0 million. In our calculation of Adjusted
Earnings Per Share, we are using cash taxes paid rather than accrued
taxes at a normalized rate. As of December 31, 2015, we have a pre-tax
NOL in the amount of approximately $146 million and unused tax credits
of approximately $25 million, both of which can be carried forward for
up to 20 years from the year they were generated.
Liquidity and Long-term Debt
The components of our long-term debt (reflected net of applicable
discounts and debt issue costs) as of December 31, 2015, are shown in
the following table:
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Amount
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Maturity
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(dollars in millions)
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Outstanding
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Interest Rate
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Date
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Senior secured term loan
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$413.8
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LIBOR plus 3.50%
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March 2022
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(with 1.0% LIBOR
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floor)
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7-1/4% senior unsecured notes
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148.0
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7.25%
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January 2019
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Asset based loan facility ($70.0
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0.0
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LIBOR plus 1.50%
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March 2020
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million limit)
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Total
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$561.8
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We had $115.6 million of cash and cash equivalents on hand at December
31, 2015, and total liquidity of approximately $174.8 million, which
includes the impact of providing $8.8 million for letters of credit for
various purposes. As of December 31, 2015, our net debt to Adjusted
EBITDA ratio was 2.6x.
Outlook
“Positive 2015 trends continued in the first quarter of 2016, including
strong demand and pricing for fly ash, growth in our repair and remodel
siding accessory products, and a positive outlook for block and roofing
that should continue well into 2017,” said Don P. Newman, Headwaters’
Chief Financial Officer.
“Due to our strong performance in the first quarter and the acquisitions
that we recently closed, we are raising our Adjusted EBITDA guidance to
a range of $180 to $200 million, representing growth of between 9% and
21% from 2015 levels. We continue to anticipate further margin expansion
in 2016 as well as 2017, which reflects anticipated revenue growth
coupled with our strong contribution margins, as well as synergies
associated with our recent acquisitions.
“We anticipate generating free cash flow between $80 and $90 million in
fiscal 2016, and continue to see opportunities to invest in growth capex
and bolt-on acquisitions at returns well above our weighted average cost
of capital. In addition to opportunities to invest in growth, our
expected strong cash generation should enable Headwaters to continue to
reduce its debt levels and strengthen its capital structure.”
Non-GAAP Financial Measures
Headwaters currently uses two non-GAAP financial measures: Adjusted
EBITDA and Adjusted EPS. Headwaters defines Adjusted EBITDA as net
income plus net interest expense, income taxes, depreciation and
amortization, equity-based compensation, cash-based compensation tied to
stock price, goodwill and other impairments, and other non-routine
adjustments that arise from time to time, all as detailed in the table
that follows. Headwaters currently defines Adjusted EPS as diluted EPS
from continuing operations plus the effect of amortization expense
related to acquired intangible assets and other non-routine adjustments
that arise from time to time, again as detailed below.
Adjusted EBITDA and Adjusted EPS are used by management, investors and
analysts to measure operating performance, as a supplement to our
consolidated financial statements presented in accordance with generally
accepted accounting principles (GAAP). Adjusted EBITDA is also used by
management, investors and analysts as one measure of a company’s ability
to service its debt and meet its other cash needs. Our presentations of
Adjusted EBITDA and Adjusted EPS have limitations as analytical tools,
and should not be considered in isolation, or as substitutes for
analysis of our results as reported under GAAP. Because the definitions
of Adjusted EBITDA and Adjusted EPS vary among companies and industries,
our definitions of these non-GAAP financial measures may not be
comparable to similarly-titled measures used by other companies.
Headwaters’ calculations of Adjusted EBITDA, trailing twelve months
(TTM) Adjusted EBITDA and Adjusted EPS are reflected in the following
tables. All amounts which follow are presented on a continuing
operations basis and do not include the results from the discontinued
coal cleaning business for any period.
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Reconciliation of Income from Continuing
Operations to Adjusted EBITDA
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(in millions)
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Quarter Ended
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12/31/2014
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12/31/2015
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Income from continuing operations (GAAP)
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$
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7.1
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$
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12.9
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Non-controlling interest of subsidiary
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(0.2
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)
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(0.3
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)
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Net interest expense
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11.9
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8.2
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Income taxes
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(0.2
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)
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3.6
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Depreciation, amortization, and equity-based compensation
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13.4
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14.4
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Non-routine customer and business acquisition-related costs and
adjustments
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0.5
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1.4
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Cash-based compensation tied to stock price
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1.3
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0.0
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Adjusted EBITDA
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$
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33.8
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$
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40.2
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Segment Adjusted EBITDA
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Building products
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$
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20.6
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$
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24.9
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Construction materials
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|
|
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17.3
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|
|
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20.9
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Energy technology
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|
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(1.2
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)
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|
|
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|
(1.3
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)
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Corporate
|
|
|
|
|
(4.2
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)
|
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|
|
|
(4.3
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)
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Cash-based compensation tied to stock price
|
|
|
|
|
1.3
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|
|
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|
|
0.0
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Adjusted EBITDA
|
|
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$
|
33.8
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$
|
40.2
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|
|
|
TTM Adjusted EBITDA
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(in millions)
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|
|
Twelve Months Ended
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|
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|
|
|
9/30/2014
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|
|
9/30/2015
|
|
|
|
12/31/2015
|
|
Income from continuing operations (GAAP)
|
|
|
|
$
|
16.5
|
|
|
|
|
$
|
132.1
|
|
|
|
|
$
|
137.9
|
|
|
Non-controlling interest of subsidiary
|
|
|
|
|
(0.8
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)
|
|
|
|
|
(0.9
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)
|
|
|
|
|
(1.0
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)
|
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Net interest expense
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|
|
|
|
46.3
|
|
|
|
|
|
64.2
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|
|
|
|
|
60.5
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|
|
Income taxes
|
|
|
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|
3.6
|
|
|
|
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(94.5
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)
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(90.7
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)
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Depreciation, amortization, and equity-based compensation
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|
|
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|
56.9
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|
|
|
|
|
56.2
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|
|
|
|
|
57.2
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|
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Non-routine customer and business acquisition-related costs and
adjustments
|
|
|
|
|
6.1
|
|
|
|
|
|
1.8
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|
|
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|
2.3
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|
Asset impairments, write-offs and other non-routine items
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|
|
|
|
3.1
|
|
|
|
|
|
0.6
|
|
|
|
|
|
1.0
|
|
|
Cash-based compensation tied to stock price
|
|
|
|
|
6.1
|
|
|
|
|
|
6.1
|
|
|
|
|
|
4.8
|
|
|
TTM Adjusted EBITDA
|
|
|
|
$
|
137.8
|
|
|
|
|
$
|
165.6
|
|
|
|
|
$
|
172.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment TTM Adjusted EBITDA
|
|
|
|
|
|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building products
|
|
|
|
$
|
88.1
|
|
|
|
|
$
|
101.9
|
|
|
|
|
$
|
106.2
|
|
|
Construction materials
|
|
|
|
|
66.8
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|
|
|
|
|
80.5
|
|
|
|
|
|
84.1
|
|
|
Energy technology
|
|
|
|
|
(2.0
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)
|
|
|
|
|
2.2
|
|
|
|
|
|
2.1
|
|
|
Corporate
|
|
|
|
|
(21.2
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)
|
|
|
|
|
(25.1
|
)
|
|
|
|
|
(25.2
|
)
|
|
Cash-based compensation tied to stock price
|
|
|
|
|
6.1
|
|
|
|
|
|
6.1
|
|
|
|
|
|
4.8
|
|
|
TTM Adjusted EBITDA
|
|
|
|
$
|
137.8
|
|
|
|
|
$
|
165.6
|
|
|
|
|
$
|
172.0
|
|
|
|
|
Reconciliation of Diluted EPS from
Continuing Operations to Adjusted EPS
|
|
|
|
|
|
Quarter Ended
|
(in millions, except per-share amounts)
|
|
|
|
12/31/2014
|
|
|
|
12/31/2015
|
Numerator:
|
|
|
|
|
|
|
|
|
Reported numerator for diluted earnings per share from continuing
operations in accordance with GAAP – income from continuing
operations attributable to Headwaters Incorporated
|
|
|
|
$
|
6.6
|
|
|
|
|
$
|
12.6
|
Adjustments to numerator:
|
|
|
|
|
|
|
|
|
Amortization expense related to intangible assets
|
|
|
|
|
4.4
|
|
|
|
|
|
4.5
|
Non-routine customer and business acquisition-related costs and
adjustments
|
|
|
|
|
0.5
|
|
|
|
|
|
1.4
|
Cash-based compensation tied to stock price
|
|
|
|
|
1.3
|
|
|
|
|
|
0.0
|
Income tax effect of above adjustments and reversal of non-cash
income taxes
|
|
|
|
|
(0.1
|
)
|
|
|
|
|
2.6
|
Total adjustments to income from continuing operations, net of
income tax effect
|
|
|
|
|
6.1
|
|
|
|
|
|
8.5
|
Numerator for adjusted diluted earnings per share
from continuing operations
|
|
|
|
$
|
12.7
|
|
|
|
|
$
|
21.1
|
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
Reported denominator for diluted earnings per share in accordance
with GAAP and for adjusted earnings per share
|
|
|
|
|
75.3
|
|
|
|
|
|
75.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported diluted income per share from continuing operations
(GAAP)
|
|
|
|
$
|
0.09
|
|
|
|
|
$
|
0.17
|
Effect of adjustments on diluted income per share calculation
|
|
|
|
|
0.08
|
|
|
|
|
|
0.11
|
Adjusted diluted income per share from continuing operations
(Adjusted EPS)
|
|
|
|
$
|
0.17
|
|
|
|
|
$
|
0.28
|
|
Conference Call
Management will host a conference call with a simultaneous web cast
today at 11:00 a.m. Eastern Time, 9:00 a.m. Mountain Time to discuss the
Company’s financial results and business outlook. The call will be
available live via the Internet by accessing Headwaters’ web site at www.headwaters.com
and clicking on the Investor Relations section. To listen to the live
broadcast, please go to the web site at least fifteen minutes early to
register, download, and install any necessary audio software. There will
also be corresponding slides with the webcast. For those who cannot
listen to the live broadcast, an online replay will be available for 90
days on www.headwaters.com,
or a phone replay will be available through February 9, 2016, by dialing
877-344-7529 or 412-317-0088 and entering the pass code 10079987.
About Headwaters Incorporated
Headwaters Incorporated is improving lives through innovative
advancements in construction materials through application, design, and
purpose. Headwaters is a diversified growth company providing products,
technologies and services to the construction materials and building
products markets. Through its coal combustion products, building
products, and energy businesses, the Company has been able to improve
sustainability by transforming underutilized resources into valuable
products. www.headwaters.com
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE
PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995
This press release contains forward-looking statements relating to
Headwaters’ operations that are based on management’s current
expectations, estimates and projections about the industries in which
Headwaters operates. Words such as “may,” “should,” “anticipates,”
“expects,” “intends,” “plans,” “targets,” “forecasts,” “projects,”
“believes,” “seeks,” “schedules,” “estimates,” “budgets,” “goals,”
“outlook” and similar expressions are intended to help identify such
forward-looking statements. Forward-looking statements include
Headwaters’ expectations as to the managing and marketing of coal
combustion products, the production and marketing of building products,
the sales to oil refineries of residue hydrocracking catalysts, the
development, commercialization, and financing of new products and other
strategic business opportunities and acquisitions, and other information
about Headwaters which are not purely historical by nature, including
those statements regarding Headwaters’ future business plans, the
operation of facilities, the availability of feedstocks, and the
marketability of the coal combustion products, building products and
catalysts. These statements are not guarantees of future performance and
are subject to certain risks, uncertainties and other factors, many of
which are beyond the Company’s control and are difficult to predict.
Therefore, actual outcomes and results may differ materially from what
is expressed or forecasted in such forward-looking statements. The
reader should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
Unless legally required, Headwaters undertakes no obligation to update
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise. Among the important factors
that could cause actual results to differ materially from those in the
forward-looking statements are: changing feedstock and energy prices;
actions of competitors or regulators; technological developments;
potential disruption of the Company’s production facilities,
transportation networks and information technology systems due to war,
terrorism, malicious attack, civil accidents, political events, civil
unrest or severe weather; potential environmental liability or product
liability under existing or future laws and litigation; potential
liability resulting from other pending or future litigation; changed
accounting rules under generally accepted accounting principles
promulgated by rule-setting bodies; and the factors set forth under the
heading “Risk Factors” in the Company’s Annual Report on Form
10-K, quarterly reports on Form 10-Q and other periodic reports. In
addition, such results could be affected by general domestic and
international economic and political conditions and other unpredictable
or unknown factors not discussed in this press release which could have
material adverse effects on forward-looking statements.
HEADWATERS INCORPORATED
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
|
(in thousands, except per-share amounts)
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
December 31,
|
|
|
|
|
2014
|
|
|
|
2015
|
Revenue:
|
|
|
|
|
|
|
|
|
Building products
|
|
|
|
$
|
117,534
|
|
|
|
|
$
|
131,845
|
|
Construction materials
|
|
|
|
|
81,404
|
|
|
|
|
|
85,998
|
|
Energy technology
|
|
|
|
|
659
|
|
|
|
|
|
575
|
|
Total revenue
|
|
|
|
|
199,597
|
|
|
|
|
|
218,418
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
Building products
|
|
|
|
|
84,192
|
|
|
|
|
|
93,159
|
|
Construction materials
|
|
|
|
|
59,511
|
|
|
|
|
|
60,670
|
|
Energy technology
|
|
|
|
|
207
|
|
|
|
|
|
318
|
|
Total cost of revenue
|
|
|
|
|
143,910
|
|
|
|
|
|
154,147
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
55,687
|
|
|
|
|
|
64,271
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
|
|
32,029
|
|
|
|
|
|
34,882
|
|
Amortization
|
|
|
|
|
4,486
|
|
|
|
|
|
4,566
|
|
Total operating expenses
|
|
|
|
|
36,515
|
|
|
|
|
|
39,448
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
|
19,172
|
|
|
|
|
|
24,823
|
|
|
|
|
|
|
|
|
|
|
Net interest expense
|
|
|
|
|
(11,952
|
)
|
|
|
|
|
(8,217
|
)
|
Other income (expense), net
|
|
|
|
|
(269
|
)
|
|
|
|
|
(69
|
)
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes
|
|
|
|
|
6,951
|
|
|
|
|
|
16,537
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit (provision)
|
|
|
|
|
200
|
|
|
|
|
|
(3,600
|
)
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
|
|
7,151
|
|
|
|
|
|
12,937
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations, net of income taxes
|
|
|
|
|
(67
|
)
|
|
|
|
|
(216
|
)
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
7,084
|
|
|
|
|
|
12,721
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to non-controlling interest
|
|
|
|
|
(245
|
)
|
|
|
|
|
(296
|
)
|
|
|
|
|
|
|
|
|
|
Net income attributable to Headwaters Incorporated
|
|
|
|
$
|
6,839
|
|
|
|
|
$
|
12,425
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted income per share attributable to Headwaters
Incorporated:
|
|
|
|
|
|
|
|
|
From continuing operations
|
|
|
|
$
|
0.09
|
|
|
|
|
$
|
0.17
|
|
From discontinued operations
|
|
|
|
|
0.00
|
|
|
|
|
|
0.00
|
|
|
|
|
|
$
|
0.09
|
|
|
|
|
$
|
0.17
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
73,448
|
|
|
|
|
|
73,789
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
75,328
|
|
|
|
|
|
75,365
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) by segment:
|
|
|
|
|
|
|
|
|
Building products
|
|
|
|
$
|
11,948
|
|
|
|
|
$
|
15,085
|
|
Construction materials
|
|
|
|
|
13,488
|
|
|
|
|
|
16,953
|
|
Energy technology
|
|
|
|
|
(1,611
|
)
|
|
|
|
|
(1,721
|
)
|
Corporate
|
|
|
|
|
(4,653
|
)
|
|
|
|
|
(5,494
|
)
|
Total
|
|
|
|
$
|
19,172
|
|
|
|
|
$
|
24,823
|
|
|
|
HEADWATERS INCORPORATED
|
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
|
(in thousands)
|
|
|
|
|
|
September 30,
|
|
|
|
December 31,
|
Assets:
|
|
|
|
2015
|
|
|
|
2015
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
142,597
|
|
|
|
|
$
|
115,636
|
|
Trade receivables, net
|
|
|
|
|
134,384
|
|
|
|
|
|
93,399
|
|
Inventories
|
|
|
|
|
55,074
|
|
|
|
|
|
61,331
|
|
Other
|
|
|
|
|
12,156
|
|
|
|
|
|
8,075
|
|
Total current assets
|
|
|
|
|
344,211
|
|
|
|
|
|
278,441
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
|
|
185,718
|
|
|
|
|
|
186,231
|
|
Goodwill
|
|
|
|
|
178,199
|
|
|
|
|
|
225,022
|
|
Intangible assets, net
|
|
|
|
|
143,718
|
|
|
|
|
|
141,175
|
|
Deferred income taxes
|
|
|
|
|
92,852
|
|
|
|
|
|
86,418
|
|
Other assets
|
|
|
|
|
34,321
|
|
|
|
|
|
40,401
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
$
|
979,019
|
|
|
|
|
$
|
957,688
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity:
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
25,306
|
|
|
|
|
$
|
17,958
|
|
Accrued liabilities
|
|
|
|
|
104,325
|
|
|
|
|
|
79,142
|
|
Current portion of long-term debt
|
|
|
|
|
4,250
|
|
|
|
|
|
4,250
|
|
Total current liabilities
|
|
|
|
|
133,881
|
|
|
|
|
|
101,350
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, net
|
|
|
|
|
558,080
|
|
|
|
|
|
557,555
|
|
Income taxes
|
|
|
|
|
6,590
|
|
|
|
|
|
2,031
|
|
Other long-term liabilities
|
|
|
|
|
30,186
|
|
|
|
|
|
32,974
|
|
Total liabilities
|
|
|
|
|
728,737
|
|
|
|
|
|
693,910
|
|
|
|
|
|
|
|
|
|
|
Redeemable non-controlling interest in consolidated subsidiary
|
|
|
|
|
12,431
|
|
|
|
|
|
12,372
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
Common stock - par value
|
|
|
|
|
74
|
|
|
|
|
|
74
|
|
Capital in excess of par value
|
|
|
|
|
728,667
|
|
|
|
|
|
729,919
|
|
Retained earnings (accumulated deficit)
|
|
|
|
|
(489,889
|
)
|
|
|
|
|
(477,464
|
)
|
Treasury stock
|
|
|
|
|
(1,001
|
)
|
|
|
|
|
(1,123
|
)
|
Total stockholders' equity
|
|
|
|
|
237,851
|
|
|
|
|
|
251,406
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
|
|
$
|
979,019
|
|
|
|
|
$
|
957,688
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160202005567/en/
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