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INVESTMENT APPEALS

Headwaters improves lives through innovative advancements in construction materials. We are leading participants in the Light Building Products and Heavy Construction Materials business segments. Our light building products include: architectural stone, resin-based exterior siding accessories, trim board, concrete block and brick, as well as other building products. We’re also the largest manager and marketer of coal combustion products in the heavy construction materials industry with a primary focus on recycling high quality fly ash as a replacement for portland cement.


Premier market leadership positions

quality products and Strong Brands

Headwaters is the vendor of choice for both wholesalers and the leading U.S. home improvement retailers, including Lowe’s and Home Depot. Some of our brands include: Atlantic Premium Shutters™, Mid-America Siding Components™, Inspire Roofing Products™, Tapco Integrated Tool Systems™, Eldorado Stone®, Kleer Lumber®,  and many more.

operational improvements and cost reductions

Headwaters  delivered strong operating results in FY 2013, driven primarily by improvements in the new residential and construction end markets.   Net income was positive for the first time since early in the housing down cycle, due to improved revenue, margins and lower interest expense.  The Company lowered its interest expense and financial risk during FY 2013 by repaying $47 million of its subordinated debt.

Well positioned in construction markets

The Company remains committed to its mission of providing innovative building materials to its customers and to carefully managing its business and capital structure to deliver profitability to its shareholders.  Headwaters continues to see improvements in its end markets, and is well-positioned to benefit as it continues to improve ongoing operations.

national distribution network

Headwaters’ Light Building Products segment has more than 3,000 wholesale distributors across the country. Our Heavy Construction Materials segment is the only fly ash company in the U.S. with a nationwide infrastructure that includes 22 terminals, over 1,000 leased railcars, and approximately 100 trucks.

Improved balance sheet

Headwaters has maintained exceptional operating leverage with contribution margins that are some of the highest in the industry.  The Company has also continued to successfully de-leverage its debt.  At the end of FY 2011, the Company's Net Debt to Adjusted EBITDA ratio was 6.7x.  At the end of FY 2013, the Net Debt to Adjusted EBITDA ratio stood at 3.3x.

Long-term relationships and exclusive contracts

Headwaters’ Heavy Construction Materials business has over 100 long-term, exclusive contracts with coal-fired utilities in the U.S. today.

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