Headwaters Expects FY Adj. EBITDA Growth Of 24% - 32%

(RTTNews) - Headwaters Inc. (HW) said it expect Adjusted EBITDA growth to be between 24% and 32%, resulting in 2017 guidance in the range of $235 million to $250 million.

"The newly acquired Krestmark windows product group represents approximately half of our total projected growth in 2017 and requires only a modest expansion of its existing operations to reach its 2017 objectives. Accordingly, the full year effect of the revenue and Adjusted EBITDA contribution from Krestmark significantly reduces the risk related to Headwaters' projected 2017 growth. In addition, we believe the incremental windows Adjusted EBITDA should lead to overall consolidated margin expansion," said Kirk A. Benson, Chairman and Chief Executive Officer of Headwaters.

The company anticipates a range of mid-single to double digit top-line growth in its legacy product groups, primarily through sales of increased volumes of fly ash and building products. Combined with continuous improvement efficiency gains, our top-line growth should drive overall Adjusted EBITDA margin expansion in 2017.

Based on the progress it made in the fourth quarter of 2016, and the beginning of 2017, the company reaffirmed its forecast of fly ash volumes in the range of 6.1 to 6.5 million tons for 2017, a 14% to 22% increase over 2016.