Headwaters (HW) Issues Sector Update; Provides adj.-EBITDA, FCF Guidance
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Price: $24.24 --0%
Financial Fact:
Operating income (loss): 37.61M
Today's EPS Names:
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Financial Fact:
Operating income (loss): 37.61M
Today's EPS Names:
BTTX, VAXX, ELYS, More
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Headwaters (NYSE: HW) issued the following update:
For the first time in five years, the Company is beginning to see improvement in overall market conditions throughout the construction industry, which could positively impact both its light building products and heavy construction materials businesses. There are a number of encouraging trends including improving home builder confidence, construction industry employment and housing starts. Nonetheless, there are still certain drags on the construction market including vacancy rates, foreclosure supply and a tight credit environment. Despite the mixed conditions, Headwaters believes it is approaching a more positive business operating environment. Headwaters is not assuming a significant end-market recovery in its 2012 projections, but even in a flat environment, the Company expects to achieve improved year-over-year Adjusted EBITDA performance.
Outlook: "Headwaters expects its 2012 Adjusted EBITDA from continuing operations to likely be above the mid-point of its previously established range of $85 million to $95 million. The Company also expects to generate $20 million to $30 million in free cash flow from continuing operations during fiscal 2012."
For the first time in five years, the Company is beginning to see improvement in overall market conditions throughout the construction industry, which could positively impact both its light building products and heavy construction materials businesses. There are a number of encouraging trends including improving home builder confidence, construction industry employment and housing starts. Nonetheless, there are still certain drags on the construction market including vacancy rates, foreclosure supply and a tight credit environment. Despite the mixed conditions, Headwaters believes it is approaching a more positive business operating environment. Headwaters is not assuming a significant end-market recovery in its 2012 projections, but even in a flat environment, the Company expects to achieve improved year-over-year Adjusted EBITDA performance.
Outlook: "Headwaters expects its 2012 Adjusted EBITDA from continuing operations to likely be above the mid-point of its previously established range of $85 million to $95 million. The Company also expects to generate $20 million to $30 million in free cash flow from continuing operations during fiscal 2012."
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