Headwaters Q3 Earnings Down - Quick Facts

(RTTNews) - Building materials maker Headwaters Inc. (HW) Tuesday reported a slight drop in third-quarter earnings, as a gain from discontinued operations recorded last year, due mainly to an income tax benefit, overshadowed a growth in revenue.

For the June quarter, net earnings stood at $10.5 million or $0.14 per share, down from $11.02 million or $0.15 per share a year earlier.

Adjusted earnings from continuing operations were $21.9 million or $0.29 per share, compared with $16.6 million or $0.22 per share a year ago.

On average, five analysts polled by Thomson-Reuters estimated the company's earnings to be $0.21 for the quarter. Analysts' estimates typically exclude one-time items.

Adjusted EBITDA totaled $44.9 million, compared with $37.6 million in the corresponding period last year.

Quarterly revenues rose to $223.4 million, from $197.03 million last year, above the $222.32 million Wall Street expected.

"Our recent bolt-on acquisitions have performed well and contributed to revenue and Adjusted EBITDA growth, said Don CFO Newman. "We financed most of these acquisitions with debt, yet we remain focused on reducing our net debt to Adjusted EBITDA ratio to the 2.5 to 3.0 range.

Newman added that the company aims to achieve this in late 2015, but warned that additional acquisitions may cause delays.