Tenon doubles first-quarter earnings, on track for annual $US20m target
Tenon last year returned to profitability and announced its first dividend in 17 years in August.
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Tenon [NZX: RBC], which sells wood mouldings in the US, says underlying earnings doubled in the first quarter and are on track to meet its $US20 million target for the full year.
Earnings before interest, tax, depreciation and amortisation rose to $US6 million in the three months ended September 30, from $US3.2 million a year earlier, and on par with the $US6 million it reported in its first half last year, the Taupo-based manufacturer said in a statement. The figure included just under $US1 million of realised foreign exchange hedging losses and costs for its strategic review to boost its share price value.
After a decade of losses, Tenon last year returned to profitability and announced its first dividend in 17 years in August, as the US housing market, where it gets 90% of revenue, began to recover after being hit by the US sub-prime mortgage crisis and subsequent global financial crisis. In the 2015 year, the rebound in the US housing market, where a builder's confidence index is at a nine-year high and new home permits are at an eight-year high, and the depreciation in the New Zealand dollar against the US currency boosted Tenon's income.
The company is now gunning for full year ebitda growth of 53%, accelerating from earnings growth of 18% to $US13 million in the year ended June 30.
Tenon has also hired Deutsche Craigs and Deutsche Bank to conduct a strategic review with the goal to come up with a "risk-adjusted path most likely to close the share price value gap."
Tenon shares last traded at $2.30 and have more than doubled over the past two years, having dropped as low as 50c during the sub-prime mortgage crisis and subsequent global financial crisis.
(BusinessDesk)
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Suze Metherell
Wed, 21 Oct 2015
Wed, 21 Oct 2015
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Tenon doubles first-quarter earnings, on track for annual $US20m target
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