Headwaters (HW) has reported 87.32 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $16.05 million, or $0.21 a share in the quarter, compared with $126.60 million, or $1.68 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $28.70 million, or $0.38 a share compared with $24.60 million or $0.33 a share, a year ago. 

Revenue during the quarter grew 6.92 percent to $291.59 million from $272.72 million in the previous year period. Gross margin for the quarter contracted 378 basis points over the previous year period to 29.33 percent. Total expenses were 87.10 percent of quarterly revenues, up from 84.82 percent for the same period last year. That has resulted in a contraction of 228 basis points in operating margin to 12.90 percent.

Operating income for the quarter was $37.61 million, compared with $41.41 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $66.30 million compared with $58.90 million in the prior year period. At the same time, adjusted EBITDA margin improved 114 basis points in the quarter to 22.74 percent from 21.60 percent in the last year period.

“We are pleased with our fiscal year performance, increasing Adjusted EBITDA by over 14%, and finishing well into our guidance range,” said Kirk A. Benson, chairman and chief executive officer of Headwaters. "In addition, our fiscal year Adjusted EBITDA margin expanded by 100 basis points to 19.5%, exceeding our 2006 peak by 160 basis points. Anticipating both top line growth and further margin expansion in 2017, we expect Adjusted EBITDA growth to be between 24% and 32%, resulting in 2017 guidance in the range of $235 million to $250 million.