10-03 :: March 2010
products include G-OIL, the world‘s first bio-based motor oil to achieve the API “Donut” for SAE-5W30. Unlike traditional petrochemical-based motor oils from leading manufacturers, Green Earth Technolo- gies‘ G-OIL is made with American-grown renewable animal fats.
eadwaters Incorporated (NYSE: HW) hosted its annual Analyst Day conference on March
4th, and provided a comprehensive update on the Company’s operations. The Company is focused on three primary initiatives: new product development, lean management and sustainability.
New products and brands in light building products have increased from 4% of revenue in 2005 to 20% of revenue in 2009, reflecting the increased im- portance of new products in Headwaters’ revenue stream. The first new product to emerge from this process was IQm Trimboard, which addresses a $200 million market. Development of IQm Trimboard was completed in 2009, but the Company’s manufactu- ring capacity was completely sold out even before a formal launch. To meet projected demand this year, Headwaters tripled its capacity prior to the 2010 formal launch at the International Builders show in January.
Due to the success of lean management initiatives, the Company is ahead of plan on realizing its $22 million in cost savings slated for 2010. The Compa- ny now believes that there may be as much as $16 million of cost savings opportunities which could be recognized over 2010 and 2011. Through a series of debt restructuring efforts in late 2009, Headwa- ters dramatically strengthened its balance sheet by
extending debt maturities until 2014 and obtaining a new $70 million ABL facility. From a balance sheet perspective, Headwaters is well positioned with an improved risk profile and increased operating flexi- bility. The Company reported that its 2010 EBITDA forecast is based on an assumption of flat revenue and at least $22 million in cost savings. While 2010 first quarter revenue was lower than the correspon- ding 2009 first quarter, cost savings were ahead of forecast and Headwaters reiterated EBITDA guidance of $95 million to $105 million. Since Headwaters’ business is highly seasonal, achievement of its EBIT- DA guidance is dependent upon performance in the June and September quarters. Additionally, the Company is targeting free cash flow of approximately $37 million in 2010.
aloSource, a leading clean water technology company, has raised $10 million from new
investors to support the further commercialization of its HaloPure®
water purification business. The finan-
cing involved several major international investors
including Prime Partners Asia Merchant Capital of
Singapore. To-date, investors in HaloSource include
the Masdar Clean Tech Fund, Unilever Technology Ventures, Origo Partners PLC and Mars Inc. Since
2007, the company has raised more than $30M to help drive the global roll-out of its drinking water business. HaloPure®
drinking water purification technology
provides low-cost, point of use water purification without the need for electricity or piped water. HaloPure®
kills viruses and bacteria to produce safe
drinking water. The company sells its products to regional, super-regional and multi-national water device manufacturers that seek higher performance