Quarterly Financial Data (unaudited) (Tables)

12 Months Ended

Sep. 30, 2012

Quarterly Financial Data (unaudited)

Summary Of Unaudited Quarterly Financial Data

	2011
(in thousands, except per-share data)	First quarter			Second quarter(3)			Third quarter			Fourth quarter(4)			Full year
Net revenue(1)	$	135,820		$	113,204		$	160,657		$	178,283		$	587,964
Gross profit(1)		31,829			21,077			43,988			49,039			145,933
Net loss(1)(5)(10)		(20,687	)		(156,154	)		(6,348	)		(46,732	)		(229,921	)
Basic and diluted earnings (loss) per share(2)		(0.34	)		(2.58	)		(0.10	)		(0.77	)		(3.80	)

	2012
(in thousands, except per-share data)	First quarter(6)			Second quarter			Third quarter(7)			Fourth quarter(8)			Full year
Net revenue(1)	$	137,427		$	129,632		$	175,621		$	190,107		$	632,787
Gross profit(1)		34,442			31,565			52,358			56,702			175,067
Net loss(1)(9)(10)		(23,748	)		(20,558	)		(13,036	)		(4,906	)		(62,248	)
Basic and diluted earnings (loss) per share(2)		(0.39	)		(0.34	)		(0.21	)		(0.08	)		(1.02	)

(1)

Headwaters' revenue is seasonal, with higher revenues typically occurring in the third and fourth quarters than in the first and second quarters. As a result, profitability is also usually higher in the last half of the year than in the first half of the year.

(2)

In accordance with ASC Topic 260 Earnings Per Share, EPS is computed independently for each of the four fiscal quarters in a year. The basic and diluted EPS computed for certain years may not equal the sum of the four quarterly computations due to the combination of profitable quarters and loss quarters and / or rounding conventions.

(3)

In the second quarter of 2011, Headwaters recorded an asset impairment charge of $37.0 million (see Note 4), a litigation accrual for $15.0 million (see Note 14), and incremental interest expense related to the senior secured debt refinancing of $68.9 million (see Note 7).

(4)

In the fourth quarter of 2011, Headwaters recorded an asset impairment charge of $35.0 million (see Note 4).

(5)

In 2011, Headwaters recorded restructuring costs of $17.9 million (see Note 12). These restructuring costs were approximately $1.0 million, $4.8 million, $0.4 million and $11.7 million for the first, second, third and fourth quarters of the year, respectively.

(6)

In the first quarter of 2012, Headwaters recorded a loss of approximately $6.3 million on the sale of its interest in an equity-method investment (see Note 13).

(7)

In the third quarter of 2012, Headwaters recorded an asset impairment charge of $13.0 million (see Note 4).

(8)

In the fourth quarter of 2012, Headwaters recorded a loss of approximately $3.2 million related to another equity-method investment (see Note 13).

(9)

In 2012, Headwaters recorded restructuring costs of $2.1 million (see Note 12). These restructuring costs were approximately $1.4 million and $0.7 million for the first and second quarters of the year, respectively.

(10)

In both 2011 and 2012, Headwaters recorded a full valuation allowance on its net amortizable deferred tax assets and recorded a minimal income tax benefit in 2011 and an income tax expense in 2012, even though there were significant pre-tax losses in both years. The reported income tax rates differ from the expected rates primarily due to not recognizing benefit for pre-tax losses and tax credits (see Note 9).