Forterra Announces Third Quarter 2017 Results
(Thomson Reuters ONE) -
* Higher average selling prices on a sequential quarter basis in both the
Drainage and Water segments
* Sold the U.S. concrete and steel pressure pipe business for a loss of $31.6
million that contributed to the net loss of $11.5 million for the quarter
* Adjusted EBITDA of $60.9 million, above the mid-point of the guidance range
despite the impact of two major hurricanes
* Ended the quarter with no outstanding balance on the Revolver
IRVING, Texas, Nov. 08, 2017 (GLOBE NEWSWIRE) -- Forterra, Inc. ("Forterra" or
the "Company") (NASDAQ:FRTA), a leading manufacturer of water and drainage
infrastructure pipe and products in the United States and Eastern Canada, today
announced results for the quarter ended September 30, 2017.(1 )
Third Quarter 2017 Results
Third quarter 2017 net sales increased to $444.3 million, compared to $441.1
million in the prior year quarter. Net loss for the quarter was $11.5 million,
or a loss of $0.18 per share, compared to net income of $8.4 million, or $0.19
per share, in the prior year quarter. Adjusted EBITDA for the third quarter was
$60.9 million, compared to $80.4 million in the prior year quarter. The
estimated Adjusted EBITDA impact of Hurricanes Harvey and Irma was approximately
$3.7 million including a $3.0 million impact to Drainage Pipe & Products
("Drainage") and $0.7 million impact to Water Pipe & Products ("Water").
Drainage net sales increased to $248.2 million, compared to $215.5 million in
the prior year quarter, due primarily to $28.4 million of net sales from
acquisitions. Net sales excluding the acquisitions grew year over year with
organic growth in shipments partially offset by the negative impact of
Hurricanes Irma and Harvey. Drainage gross profit was $51.8 million compared to
$52.7 million in the prior year quarter, primarily due to higher labor, freight
and raw materials costs, that were not fully offset by an increase in selling
prices. Third quarter 2017 Drainage EBITDA and Adjusted EBITDA were $47.3
million and $48.1 million, respectively, compared to $51.5 million and $51.8
million, respectively, in the prior year quarter.
Water net sales decreased to $196.0 million, compared to $225.6 million in the
prior year quarter, despite higher selling prices of ductile iron pipe
products. The sale of the U.S. concrete and steel pressure pipe business
effective July 31, 2017 reduced net sales by $8.9 million. The balance of the
net sales decline was due to lower net sales of concrete pressure pipe products
in Canada and the impact of lower net sales of ductile iron pipe. The decline in
net sales of Canada pressure pipe products was due to the completion of a large
project in 2016. The decline in ductile iron pipe sales was due to the impact of
Hurricane Irma and lower demand for infrastructure projects.
Water gross profit in the third quarter was $30.9 million compared to $49.4
million in the prior year quarter. Third quarter 2017 Water EBITDA and Adjusted
EBITDA decreased to $(4.1) million and $28.4 million, respectively, compared to
$43.6 million and $43.3 million, respectively, in the prior year quarter. The
declines in gross profit, EBITDA and Adjusted EBITDA were due to the impact of
lower profitability from both ductile iron pipe sales and concrete and steel
pressure pipe sales.
The ductile iron pipe portion of the Water segment was impacted by higher scrap
costs that were not fully offset by an increase in selling prices of products
sold. In Canada, the decline in Water EBITDA and Adjusted EBITDA was primarily
due to lower net sales of concrete pressure pipe products as a result of a large
project that was completed in 2016.
Summary of Results for the Divested U.S. Concrete and Steel Pressure
Pipe Business
($ in millions) Three Months Ended September 30,
2017 2016
(unaudited) (unaudited)
Net Sales $ 10.8 $ 19.7
EBITDA (33.9 ) (6.1 )
Adjusted EBITDA $ (2.4 ) $ (3.1 )
Consolidated SG&A costs were lower in the third quarter of 2017 as compared to
the prior year quarter due primarily to lower consulting and professional fees
during the quarter.
CEO Commentary
Forterra CEO Jeff Bradley commented, "Our results this quarter demonstrate our
ability to successfully execute on multiple objectives on a sequential quarter
basis, including higher selling prices, lower costs, and improved earnings.
Additionally, in spite of the impact of two major hurricanes, Adjusted EBITDA
was above the mid-point of our guidance range. My expectation for continued
improvement in our earnings is supported by ongoing initiatives, a solid backlog
and favorable market conditions."
Balance Sheet and Liquidity
At September 30, 2017, the Company had cash of $41.1 million and outstanding
debt on its senior term loan of $1.2 billion. As of September 30, 2017, there
was no outstanding balance on the Company's $300 million Revolver following an
$80 million net pay down during the quarter. The Company expects to continue to
build its cash position through the end of 2017 reflecting the anticipated
benefit of positive cash flow from working capital during the fourth quarter.
Financial Outlook
The Company expects that the net loss for the fourth quarter of 2017 will range
from $16 million to $13 million and Adjusted EBITDA will range from $20 million
to $25 million. The guidance range anticipates delivering an improved year over
year Adjusted EBITDA margin variance in Q4 2017 as compared to the prior
quarter. The guidance range also assumes a year over year decline in sales,
including a $27 million decline in net sales associated with the divestiture of
the U.S. concrete and steel pressure pipe business. The Company expects to see
higher sequential quarter SG&A reflecting the continued use of professionals in
support of its Sarbanes-Oxley implementation.
Conference Call and Webcast Information
Forterra will host a conference call to review third quarter 2017 results on
November 8, 2017 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). The dial-
in number for the call is 574-990-1396 or toll free 844-498-0572. The
participant passcode is 4668329. Please dial in at least five minutes prior to
the call to register. The call may also be accessed via a webcast which, along
with the supplemental presentation that will be referenced during the call, are
available on the Investors section of the Company's website
at http://forterrabp.com. A replay of the conference call and archive of the
webcast will be available for 30 days under the Investor section of the
Company's website.
About Forterra
Forterra is a leading manufacturer of water and drainage pipe and products in
the U.S. and Eastern Canada for a variety of water-related infrastructure
applications, including water transmission, distribution, drainage and
stormwater management. Based in Irving, Texas, Forterra's product breadth and
significant scale help make it a one-stop shop for water related pipe and
products, and a preferred supplier to a wide variety of customers, including
contractors, distributors and municipalities. For more information on Forterra,
visit http://forterrabp.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking statements may be
identified by the use of words such as "anticipate", "believe", "expect",
"estimate", "plan", "outlook", and "project" and other similar expressions that
predict or indicate future events or trends or that are not statements of
historical matters. Forward-looking statements should not be read as a guarantee
of future performance or results, and will not necessarily be accurate
indications of the times at, or by, which such performance or results will be
achieved. Forward-looking statements are based on historical information
available at the time the statements are made and are based on management's
reasonable belief or expectations with respect to future events, and are subject
to risks and uncertainties, many of which are beyond the Company's control, that
could cause actual performance or results to differ materially from the belief
or expectations expressed in or suggested by the forward-looking statements.
Forward-looking statements speak only as of the date on which they are made and
the Company undertakes no obligation to update any forward-looking statement to
reflect future events, developments or otherwise, except as may be required by
applicable law. Investors are referred to the Company's filings with the
Securities and Exchange Commission, including its Annual Report on Form 10-K,
for additional information regarding the risks and uncertainties that may cause
actual results to differ materially from those expressed in any forward-looking
statement.
(1) A reconciliation of non-GAAP financial measures to comparable GAAP financial
measures is provided in the Reconciliation of Non-GAAP Measures section of this
press release.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three months ended Nine months ended
September 30, September 30,
2017 2016 2017 2016
------------------------- ----------------------------
(unaudited) (unaudited)
Net sales $ 444,257 $ 441,132 $ 1,219,244 $ 1,009,851
Cost of goods sold 362,150 339,819 1,022,574 789,756
------------------------- ----------------------------
Gross profit 82,107 101,313 196,670 220,095
Selling, general &
administrative expenses (59,366 ) (62,355 ) (191,964 ) (153,076 )
Impairment and exit
charges (1,193 ) (555 ) (13,004 ) (578 )
Earnings from equity
method investee 2,936 4,146 9,449 9,014
Other operating income,
net 2,008 1,946 5,251 5,290
------------------------- ----------------------------
(55,615 ) (56,818 ) (190,268 ) (139,350 )
------------------------- ----------------------------
Income from operations 26,492 44,495 6,402 80,745
Other income (expenses)
Interest expense (15,582 ) (31,756 ) (46,202 ) (73,885 )
Other expense, net (30,866 ) (217 ) (30,866 ) (1,394 )
------------------------- ----------------------------
Income (loss) from
continuing operations
before income taxes (19,956 ) 12,522 (70,666 ) 5,466
Income tax benefit
(expense) 8,454 (8,154 ) 25,448 28,586
------------------------- ----------------------------
Income (loss) from
continuing operations (11,502 ) 4,368 (45,218 ) 34,052
Discontinued operations,
net of tax - 4,000 - 7,069
------------------------- ----------------------------
Net income (loss) $ (11,502 ) $ 8,368 $ (45,218 ) $ 41,121
------------------------- ----------------------------
Basic and Diluted
earnings (loss) per
share:
Continuing operations $ (0.18 ) $ 0.10 $ (0.71 ) $ 0.75
Discontinued operations $ - $ 0.09 $ - $ 0.16
Net income (loss) $ (0.18 ) $ 0.19 $ (0.71 ) $ 0.91
Weighted average common
shares outstanding:
Basic and Diluted 63,799 45,369 63,794 45,369
Condensed Consolidated Balance Sheets
(in thousands, except share data)
September 30, December 31,
2017 2016
--------------- --------------
ASSETS (unaudited)
Current assets
Cash and cash equivalents $ 41,131 $ 40,024
Receivables, net 266,676 201,481
Inventories 264,292 279,502
Prepaid expenses 5,596 6,417
Other current assets 22,430 5,179
--------------- --------------
Total current assets 600,125 532,603
--------------- --------------
Non-current assets
Property, plant and equipment, net 426,246 452,914
Goodwill 504,964 491,447
Intangible assets, net 243,603 281,598
Investment in equity method investee 55,685 55,236
Other long-term assets 15,992 10,988
--------------- --------------
Total assets $ 1,846,615 $ 1,824,786
--------------- --------------
LIABILITIES AND EQUITY
Current liabilities
Trade payables $ 133,899 $ 134,059
Accrued liabilities 79,320 82,165
Deferred revenue 8,892 20,797
Current portion of long-term debt 12,510 10,500
--------------- --------------
Total current liabilities 234,621 247,521
--------------- --------------
Non-current liabilities
Senior term loan 1,182,545 990,483
Revolving credit facility - 95,064
Deferred tax liabilities 77,651 100,550
Deferred gain on sale-leaseback 76,469 78,215
Other long-term liabilities 27,991 23,253
Long-term TRA Payable 159,003 156,783
--------------- --------------
Total liabilities 1,758,280 1,691,869
--------------- --------------
Equity
Common stock, $0.001 par value, 64,294,793 and
63,924,124 shares issued and outstanding,
respectively, and 190,000,000 shares authorized 18 18
Additional paid-in-capital 229,057 228,316
Accumulated other comprehensive loss (5,130 ) (5,025 )
Retained deficit (135,610 ) (90,392 )
--------------- --------------
Total shareholders' equity 88,335 132,917
--------------- --------------
Total liabilities and shareholders' equity $ 1,846,615 $ 1,824,786
--------------- --------------
Condensed Consolidated Statements of Cash Flows
(in thousands)
Nine months ended
September 30,
2017 2016
------------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES (unaudited) (unaudited)
Net Income (loss) $ (45,218 ) $ 41,121
Adjustments to reconcile net income (loss) to net cash (used in) provided by
operating activities:
Depreciation & amortization expense 87,463 71,049
Loss on business divestiture 31,606 -
Loss on disposal of property, plant and equipment 1,749 1,169
Amortization of debt discount and issuance costs 6,061 6,393
Impairment charges 10,551 -
Earnings from equity method investee (9,449 ) (9,014 )
Distributions from equity method investee 9,000 7,800
Unrealized (gain) loss on derivative instruments,
net (2,035 ) 1,606
Provision (recoveries) for doubtful accounts 2,289 (1,235 )
Deferred taxes (16,321 ) (51,846 )
Deferred rent 1,941 -
Other non-cash items 1,690 45
Change in assets and liabilities:
Receivables, net (84,974 ) (61,591 )
Inventories (18,217 ) 18,370
Other assets (15,522 ) (7,973 )
Accounts payable and accrued liabilities 2,668 7,854
Other assets & liabilities (2,415 ) 7,124
------------- ------------
NET CASH (USED IN) PROVIDED BY OPERATING
ACTIVITIES (39,133 ) 30,872
------------- ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (38,729 ) (27,043 )
Proceeds from business divestiture 23,200 -
Assets and liabilities acquired, business
combinations, net (35,380 ) (872,471 )
------------- ------------
NET CASH USED IN INVESTING ACTIVITIES (50,909 ) (899,514 )
------------- ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from sale-leaseback - 216,280
Deferred transaction costs on failed sale-
leaseback - (6,492 )
Payment of debt issuance costs (2,498 ) (10,638 )
Payment of equity issuance costs - (6,669 )
Payments on term loans (8,880 ) (2,191 )
Proceeds from term loans, net 200,000 548,400
Proceeds from revolver 194,000 131,611
Payments on revolver (293,000 ) (55,173 )
Proceeds from settlement of derivatives - 6,546
Capital contribution from parent - 402,127
Payments for return of contributed capital - (363,582 )
Other financing activities (232 ) -
------------- ------------
NET CASH PROVIDED BY FINANCING ACTIVITIES 89,390 860,219
------------- ------------
Effect of exchange rate changes on cash 1,759 1,050
------------- ------------
Net change in cash and cash equivalents 1,107 (7,373 )
Cash and cash equivalents, beginning of period 40,024 43,590
------------- ------------
Cash and cash equivalents, end of period $ 41,131 $ 36,217
------------- ------------
SUPPLEMENTAL DISCLOSURES:
Cash interest paid 40,968 51,476
Income taxes paid 27,590 -
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING DISCLOSURES:
Fair value changes of derivatives recorded in OCI,
net of tax (4,103 ) (1,253 )
Additional Statistics
(unaudited)
Reconciliation of Non-GAAP Measures
In addition to our results calculated under generally accepted accounting
principles in the United States ("GAAP"), in this earnings release we also
present adjusted EBITDA and adjusted EBITDA margin. Adjusted EBITDA and adjusted
EBITDA margin are non-GAAP measures and have been presented in this earnings
release as supplemental measures of financial performance that are not required
by, or presented in accordance with GAAP. We calculate adjusted EBITDA as net
income (loss) before (earnings)/loss from discontinued operations, interest
expense, income tax benefit (expense), depreciation and amortization and before
impairment and restructuring charges, (gains)/losses on the sale of property,
plant and equipment and certain other non-recurring income and expenses, such as
transaction costs, inventory step-up impacting margin, non-cash compensation
expense and costs associated with disposed sites. Adjusted EBITDA margin
represents adjusted EBITDA as a percentage of net sales.
Adjusted EBITDA and adjusted EBITDA margin are presented in this earnings
release because they are important metrics used by management as one of the
means by which it assesses our financial performance. Adjusted EBITDA and
adjusted EBITDA margin are also frequently used by analysts, investors and other
interested parties to evaluate companies in our industry. We use adjusted EBITDA
and adjusted EBITDA margin as supplements to GAAP measures of performance to
evaluate the effectiveness of our business strategies, to make budgeting
decisions, to allocate resources and to compare our performance relative to our
peers. Adjusted EBITDA and adjusted EBITDA margin are also important measures
for assessing our operating results and evaluating each operating segment's
performance on a consistent basis, by excluding the impacts of depreciation,
amortization, income tax expense, interest expense and other items not
indicative of ongoing operating performance. Additionally, these measures, when
used in conjunction with related GAAP financial measures, provide investors with
additional financial analytical framework which management uses, in addition to
historical operating results, as the basis for financial, operational and
planning decisions and present measurements that third parties have indicated
are useful in assessing the Company and its results of operations.
Adjusted EBITDA and adjusted EBITDA margin have certain limitations. Adjusted
EBITDA should not be considered as an alternative to consolidated net income,
and in the case of our segment results, adjusted EBITDA should not be considered
an alternative to EBITDA, which the chief operating decision maker reviews for
purposes of evaluating segment profit, or in the case of any of the non-GAAP
measures, as a substitute for any other measure of financial performance
calculated in accordance with GAAP. Similarly, adjusted EBITDA margin should
not be considered as an alternative to gross margin or any other margin
calculated in accordance with GAAP. These measures also should not be construed
as an inference that our future results will be unaffected by unusual or
nonrecurring items for which these non-GAAP measures make adjustments.
Additionally, adjusted EBITDA and adjusted EBITDA margin are not intended to be
liquidity measures because of certain limitations such as: (i) they do not
reflect our cash outlays for capital expenditures or future contractual
commitments; (ii) they do not reflect changes in, or cash requirements for,
working capital; (iii) they do not reflect interest expense, or the cash
requirements necessary to service interest, or principal payments, on
indebtedness; (iv) they do not reflect income tax expense or the cash necessary
to pay income taxes; and (v) although depreciation and amortization are non-cash
charges, the assets being depreciated and amortized will often have to be
replaced in the future, and these non-GAAP measures do not reflect cash
requirements for such replacements.
Other companies, including other companies in our industry, may not use such
measures or may calculate one or more of the measures differently than as
presented in this earnings release, limiting their usefulness as a comparative
measure. In evaluating adjusted EBITDA and adjusted EBITDA margin, you should be
aware that in the future we will incur expenses that are the same as or similar
to some of the adjustments made in the calculations below and the presentation
of adjusted EBITDA and adjusted EBITDA margin should not be construed to mean
that our future results will be unaffected by such adjustments. Management
compensates for these limitations by using adjusted EBITDA and adjusted EBITDA
margin as supplemental financial metrics and in conjunction with results
prepared in accordance with GAAP.
Reconciliation of net income (loss) to Adjusted EBITDA
(in thousands)
Three months ended
September 30,
2017 2016
------------- ------------
(unaudited) (unaudited)
Net income (loss) $ (11,502 ) $ 8,368
Loss from discontinued operations, net - (4,000 )
Interest expense 15,582 31,756
Depreciation and amortization 29,158 28,490
Income tax (benefit) expense (8,454 ) 8,154
------------- ------------
EBITDA(1) 24,784 72,768
------------- ------------
(Gain) loss on sale of property, plant & equipment,
net(2) 555 1,547
Impairment and exit charges(3) 1,193 555
Transaction costs(4) 1,553 8,139
Inventory step-up impacting margin(5) 394 -
Costs associated with disposed sites(6) 31,606 46
Non-cash compensation(7) 1,444 -
Other (gains) expenses(8) (679 ) (2,676 )
------------- ------------
Adjusted EBITDA(9) $ 60,850 $ 80,379
Adjusted EBITDA margin(9) 13.7 % 18.2 %
Gross profit 82,107 101,313
Gross profit margin 18.5 % 23.0 %
Nine months ended
September 30,
2017 2016
------------- ------------
(unaudited) (unaudited)
Net income (loss) $ (45,218 ) $ 41,121
Loss from discontinued operations, net - (7,069 )
Interest expense 46,202 73,885
Depreciation and amortization 87,463 64,918
Income tax benefit (25,448 ) (28,586 )
------------- ------------
EBITDA(1) 62,999 144,269
------------- ------------
(Gain) loss on sale of property, plant & equipment,
net(2) 1,749 1,177
Impairment and exit charges(3) 13,004 578
Transaction costs(4) 6,291 19,228
Inventory step-up impacting margin(5) 2,151 12,515
Costs associated with disposed sites(6) 31,606 234
Non-cash compensation(7) 2,688 -
Other (gains) expenses(8) (1,217 ) (2,676 )
------------- ------------
Adjusted EBITDA(9) $ 119,271 $ 175,325
Adjusted EBITDA margin(9) 9.8 % 17.4 %
Gross profit 196,670 220,095
Gross profit margin 16.1 % 21.8 %
(1) For purposes of evaluating segment profit, the Company's chief operating
decision maker reviews EBITDA as a basis for making the decisions to allocate
resources and assess performance.
(2) (Gain) loss on sale of property, plant and equipment, primarily related to
the disposition of manufacturing facilities.
(3) Impairment of goodwill and long-lived assets and other exit charges.
(4) Legal, valuation, accounting, advisory and other costs related to business
combinations and other transactions.
(5) Effect of the purchase accounting step-up in the value of inventory to fair
value recognized in cost of goods sold as a result of business combinations.
(6) Loss on divestiture of U.S. concrete and steel pressure pipe business, and
results of operations of our disposed roof tile business and other disposed
sites for the periods presented, net of specific items for which adjustments are
separately made elsewhere in the calculation of adjusted EBITDA presented
herein.
(7) Non-cash equity compensation expense.
(8) Other (gains) losses, such as gain on insurance proceeds related to the
destruction of property and adjustments to the estimated value of the TRA
liability.
(9) Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures. See the
discussion of why we believe they are useful and reconciliation thereof to the
most directly comparable GAAP financial measures in the beginning of these
schedules.
Reconciliation of segment EBITDA to segment Adjusted EBITDA
(in thousands)
Drainage Water Pipe
Three months ended Pipe & & Corporate
September 30, 2017 Products Products and Other Total
------------- ------------- ------------- ------------
EBITDA(1) $ 47,342 $ (4,144 ) $ (18,414 ) $ 24,784
------------- ------------- ------------- ------------
(Gain) loss on sale of
property, plant &
equipment, net(2) (75 ) 680 (50 ) 555
Impairment and exit
charges(3) - 354 839 1,193
Transaction costs(4) - - 1,553 1,553
Inventory step-up
impacting margin(5) 394 - - 394
Costs associated with
disposed sites(6) - 31,606 - 31,606
Non-cash compensation(7) 405 308 731 1,444
Other (gains)
expenses(8) - (404 ) (275 ) (679 )
------------- ------------- ------------- ------------
Adjusted EBITDA(9) $ 48,066 $ 28,400 $ (15,616 ) $ 60,850
------------- ------------- ------------- ------------
Net sales $ 248,231 $ 195,987 $ 39 $ 444,257
Gross Profit $ 51,825 $ 30,920 $ (638 ) $ 82,107
------------- ------------- ------------- ------------
Drainage Water Pipe
Three months ended Pipe & & Corporate
September 30, 2016 Products Products and Other Total
------------- ------------- ------------- ------------
EBITDA(1) $ 51,502 $ 43,634 $ (22,368 ) $ 72,768
------------- ------------- ------------- ------------
(Gain) loss on sale of
property, plant &
equipment, net(2) 6 1,541 - 1,547
Impairment and exit
charges(3) 245 304 6 555
Transaction costs(4) - 466 7,673 8,139
Inventory step-up
impacting margin(5) - - - -
Costs associated with
disposed sites(6) 46 - - 46
Other (gains)
expenses(8) - (2,676 ) - (2,676 )
------------- ------------- ------------- ------------
Adjusted EBITDA(9) $ 51,799 $ 43,269 $ (14,689 ) $ 80,379
------------- ------------- ------------- ------------
Net sales $ 215,486 $ 225,645 $ 1 $ 441,132
Gross Profit $ 52,661 $ 49,394 $ (742 ) $ 101,313
------------- ------------- ------------- ------------
Drainage Water Pipe
Nine months ended Pipe & & Corporate
September 30, 2017 Products Products and Other Total
------------- ------------- ------------- --------------
EBITDA(1) $ 98,832 $ 30,881 $ (66,714 ) $ 62,999
------------- ------------- ------------- --------------
(Gain) loss on sale of
property, plant &
equipment, net(2) (4 ) 1,753 - 1,749
Impairment and exit
charges(3) (14 ) 12,179 839 13,004
Transaction costs(4) - 6,291 6,291
Inventory step-up
impacting margin(5) 2,151 - - 2,151
Costs associated with
disposed sites(6) - 31,606 - 31,606
Non-cash
compensation(7) 454 345 1,889 2,688
Other (gains)
expenses(8) - (942 ) (275 ) (1,217 )
------------- ------------- ------------- --------------
Adjusted EBITDA(9) $ 101,419 $ 75,822 $ (57,970 ) $ 119,271
------------- ------------- ------------- --------------
Net sales $ 630,200 $ 588,999 $ 45 $ 1,219,244
Gross Profit $ 112,323 $ 86,327 $ (1,980 ) $ 196,670
------------- ------------- ------------- --------------
Drainage Water Pipe
Nine months ended Pipe & & Corporate
September 30, 2016 Products Products and Other Total
------------- ------------- ------------- --------------
EBITDA(1) $ 126,536 $ 80,251 $ (62,518 ) $ 144,269
------------- ------------- ------------- --------------
(Gain) loss on sale of
property, plant &
equipment, net(2) 247 83 847 1,177
Impairment and exit
charges(3) 245 327 6 578
Transaction costs(4) - 535 18,693 19,228
Inventory step-up
impacting margin(5) 1,878 10,637 - 12,515
Costs associated with
disposed sites(6) 234 - - 234
Other (gains)
expenses(8) - (2,676 ) - (2,676 )
------------- ------------- ------------- --------------
Adjusted EBITDA(9) $ 129,140 $ 89,157 $ (42,972 ) $ 175,325
------------- ------------- ------------- --------------
Net sales $ 552,035 $ 455,286 $ 2,530 $ 1,009,851
Gross Profit $ 131,325 $ 90,611 $ (1,841 ) $ 220,095
------------- ------------- ------------- --------------
(1) For purposes of evaluating segment profit, the Company's chief operating
decision maker reviews EBITDA as a basis for making the decisions to allocate
resources and assess performance.
(2) (Gain) loss on sale of property, plant and equipment, primarily related to
the disposition of manufacturing facilities.
(3) Impairment of goodwill and long-lived assets and other exit charges.
(4) Legal, valuation, accounting, advisory and other costs related to business
combinations and other transactions.
(5) Effect of the purchase accounting step-up in the value of inventory to fair
value recognized in cost of goods sold as a result of business combinations.
(6) Loss on divestiture of U.S. concrete and steel pressure pipe business, and
results of operations of our disposed roof tile business and other disposed
sites for the periods presented, net of specific items for which adjustments are
separately made elsewhere in the calculation of adjusted EBITDA presented
herein.
(7) Non-cash equity compensation expense.
(8) Other (gains) losses, such as gain on insurance proceeds related to the
destruction of property and adjustments to the estimated value of the TRA
liability.
(9) Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures. See the
discussion of why we believe they are useful and reconciliation thereof to the
most directly comparable GAAP financial measures in the beginning of these
schedules.
Reconciliation of Net Income to Adjusted EBITDA Guidance for Q4 2017
(in millions)
Q4 2017 EBITDA Guidance
Low High
--------------- -----------------
Net income $ (16 ) $ (13 )
Interest expense 16 16
Income tax benefit (10 ) (8 )
Depreciation and amortization 30 30
--------------- -----------------
Adjusted EBITDA $ 20 $ 25
--------------- -----------------
Company Contact Information:
Charles R. Brown, II
Executive Vice President and Chief Financial Officer
469-299-9113
IR(at)forterrabp.com
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Source: Forterra, Inc. via GlobeNewswire
Datum: 08.11.2017 - 12:00 Uhr
Sprache: Deutsch
News-ID 567249
Anzahl Zeichen: 46348
contact information:
Town:
Irving, TX
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 186 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Forterra Announces Third Quarter 2017 Results"
steht unter der journalistisch-redaktionellen Verantwortung von
Forterra, Inc. (Nachricht senden)
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