Forterra, Inc. is a foremost manufacturer of water infrastructure pipe and products in the U.S. and Eastern Canada. In addition, it offers structural and specialty products and storm water management systems. Forterra has its corporate headquarters in Irving, Texas.
Forterra completed its initial public offering (IPO) of common stock on October 25, 2016. It received net proceeds of $313.3 million. Following completion of the offering and including shares of restricted stock granted in association with the offering, Forterra had 63,926,374 shares outstanding.
Forterra employs greater than 5,500 people and it operates in excess of 100 facilities. The Company benefits from infrastructure spending by government. It manufactures and markets water and drainage pipes and products. For subdivisions, roadways, runways, or sewer systems, the Company offers pipe, drainage technology, bridge systems, utility solutions, as well as other products.
Pertaining to Concrete Pipe Products, Forterra offers Reinforced Concrete Pipe; Non-Reinforced Concrete Pipe, and Microtunneling/Jacking Pipe. In regards to Precast Products, the Company offers Box Culverts; Manholes; Drainage Inlets, and Crown Span Bridge Sections.
In Canada, Forterra is the largest producer of precast concrete drainage system components. It plants are strategically located in Cambridge, Whitby, and Ottawa, Ontario. The Company also has a plant located in Mascouche, Quebec.
Forterra’s acquisitions this year include Sherman-Dixie Concrete Industries. Sherman-Dixie is a foremost producer of precast concrete structures. It operates eight facilities in Tennessee, Kentucky, Alabama and Indiana.
Forterra also acquired U.S. Pipe. This company is North America’s top provider of ductile iron pipe products for water distribution and water management applications in North America. U.S. Pipe is a leader in fittings, joint restraints, as well as other related products.
In addition, Forterra acquired affiliated companies Bio Clean Environmental Services, Inc. and Modular Wetland Systems, Inc. of Oceanside, California, this year. These businesses provide an extensive array of storm water quality and biofiltration technologies, which filter pollutants and remove sediment in accordance with local standards. This acquisition includes the Modular Wetlands product line and all related intellectual property (IP).
Recently, Forterra acquired Precast Concepts, LLC. Precast Concepts manufacturers products in Forterra’s Drainage Pipe & Products segment located in the Denver, Colorado area, with three facilities throughout Colorado. Furthermore, Forterra acquired J&G Concrete Operations, LLC. J&G manufactures products in Forterra’s Drainage Pipe & Products segment in two plants in North Texas.
For Q3 2016, ended September 30, 2016, Forterra’s net sales rose by 98.9% to $480.1 million, versus $241.4 million in the 2015 quarter. The Company attributed this to the effect of acquisitions, as these grew net sales by $268.3 million.
Drainage Pipe & Products net sales grew by 50.6% to $215.5 million, versus $143.1 million in the 2015 quarter because of $83.5 million of net sales from acquisitions. Water Pipe & Products net sales rose by 293.0% to $225.6 million, versus $57.4 million in the year ago quarter, because of net sales from Forterra’s acquisitions of $184.8 million.
The Company’s reported net income for Q3 2016 was $8.4 million, versus a net loss of $15.0 million in the 2015 quarter. The increase in net income of $23.4 million was mainly due to higher net sales. Adjusted net income increased to $13.0 million, versus an adjusted net loss of $7.0 million in the year ago quarter, primarily because of higher net sales.