Forterra (FRTA) Reports Q4 EPS of $0.67, Beats on Revenues; Offers 1Q18 EBITDA Outlook

Note: EPS may not be comparable

Forterra (NASDAQ: FRTA) reported Q4 EPS of $0.67, versus ($0.24) reported last year. Revenue for the quarter came in at $361.17 million versus the consensus estimate of $330.15 million.

Fourth Quarter 2017 Results

• Fourth quarter 2017 net sales increased to $361.2 million, compared to $354.1 million in the prior year quarter.
• Net income for the quarter was $43.2 million, or $0.67 per share, compared to a net loss of $48.7 million, or a loss of $0.75 per share, in the prior year quarter.
• Adjusted EBITDA for the fourth quarter was $28.2 million, compared to $42.6 million in the prior year quarter.
• Organic sales growth of approximately 7% driven primarily by favorable weather
• Average sales prices higher for both pipe and precast and ductile iron pipe products
• Net income of $43.2 million includes a pre-tax benefit of a $45.4 million reduction in tax receivable agreement ("TRA") liability and a $15.2 million income tax benefit, due primarily to U.S. tax reform
• Adjusted EBITDA1 of $28.2 million, above the top-end of the guidance range
• Quarter-end cash balance of $104.5 million and no outstanding balance on the revolver

Financial Outlook

The Company expects that the net loss for the first quarter of 2018 will range from $31 million to $28 million and Adjusted EBITDA will range from $8 million to $12 million, including a $10 million impact from operational costs, deferred shipments and lost sales associated with a major upgrade at the Bessemer, Alabama ductile iron pipe facility. This impact is expected to be largely offset by raw material savings and recovery of sales deferred in the first quarter over the balance of 2018. The first quarter guidance range incorporates the following key assumptions

For earnings history and earnings-related data on Forterra (FRTA) click here.

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