Stella-Jones
SJ is North America’s leading producer of pressure-treated wood products. It supplies the continent’s major electrical utilities and telecommunication companies with wood utility poles and North America’s Class 1, short line and commercial railroad operators with railway ties and timbers. It also provides industrial products, manufactures and distributes premium treated residential lumber and accessories to Canadian and American retailers for outdoor applications. It operates 43 wood treating plants and a coal tar distillery in facilities located across Canada and the U.S. complemented by an extensive distribution network. As at June 30, 2023, the Company’s workforce numbered approximately 2,835 employees.
Results for the 2nd quarter ended June 30, 2023 (published August 3,2023) continued on their strong trajectory: Sales at $972 million were up 7% over the corresponding prior year period; EBITDA at $175 million was up 14% and EBITDA margin was 18% compared to 17% last year; Net income at $100 million or $1.72 per share was up 14%.
For the first six months of 2023, sales amounted to $1,682 million, up 8% over the corresponding period last year, driven by the 13% organic sales growth of the Company’s infrastructure-related businesses. Long Term Debt was up $198 million in order to finance growth in accounts receivable of $116 million (in line with seasonal trends) and inventories of $97 million (to prepare for higher pole sales). At June 30, 2023 SJ had $292 million available. Net debt to EBITDA was 2.6%
Stella-Jones’ strategy is to solidify its leadership position in its core product categories and in key markets, through organic growth, network efficiencies, innovation and accretive acquisitions. Its outlook calls for a 6% CAGR in sales going forward and 9% CAGR in EBITDA. It also calls for the return of $500 million to shareholders through dividends and share buybacks.
5i Research
----------------------------------------
Source
https://stockchase.com/
No comments:
Post a Comment