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SEC Filings

10-Q
FORTERRA, INC. filed this Form 10-Q on 11/09/2017
Entire Document
 


Segments

 For the three months ended September 30, 2017:
 
Drainage Pipe & Products
 
Water Pipe & Products
 
Corporate and Other
 
Total
 
(In thousands)
Net sales
$
248,231

 
$
195,987

 
$
39

 
$
444,257

Gross profit (loss)
51,825

 
30,920

 
(638
)
 
82,107

Income (loss) from continuing operations before income taxes
35,529

 
(21,294
)
 
(34,191
)
 
(19,956
)
EBITDA
47,342

 
(4,144
)
 
(18,414
)
 
24,784


 For the three months ended September 30, 2016:
 
Drainage Pipe & Products
 
Water Pipe & Products
 
Corporate and Other
 
Total
 
(In thousands)
Net sales
$
215,486

 
$
225,645

 
$
1

 
$
441,132

Gross profit (loss)
52,661

 
49,394

 
(742
)
 
101,313

Income (loss) from continuing operations before income taxes
37,994

 
24,478

 
(49,950
)
 
12,522

EBITDA
51,502

 
43,634

 
(22,368
)
 
72,768

    

For the purposes of evaluating segment performance, the Company’s chief operating decision maker reviews earnings before interest, taxes, depreciation and amortization (“EBITDA”) as a basis for making the decisions to allocate resources and assess performance. Our discussion below includes the primary drivers of EBITDA.

Drainage Pipe & Products

Net Sales
    
Net sales increased by $32.7 million, or 15.2%, to $248.2 million in the three months ended September 30, 2017 from $215.5 million in the three months ended September 30, 2016. The increase was primarily attributable to net sales of approximately $28.4 million provided by our acquisitions. The remaining increase in net sales of $4.3 million was due to higher net sales in certain regions driven by increased volumes and average sales price, offset by the negative impact of hurricanes Irma and Harvey.

Gross Profit

Gross profit was $51.8 million in the three months ended September 30, 2017, a decrease of $0.9 million or 1.7% from $52.7 million in the three months ended September 30, 2016. The decrease was primarily due to the impact of higher cost of goods sold, including labor, freight and raw materials, that were not fully offset by an increase in average sales prices of products sold.


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