FRTA - Forterra slips 11% post Q3 results miss; reports improved margins

Forterra ([[FRTA]] -11.3%) reported gross profit increase of 23.7% Y/Y to $126.3M, and margin expanded by 562 bps to 17.7%.Drainage Pipe & Products sales $256.6 (-8.6% Y/Y); Water Pipe & Products sales $201M (+9.4% Y/Y).Q3 Operating margin improved by 470 bps to 14.9%.Adj. EBITDA increased by 23.7% Y/Y to $99M; and margin improved by 441 bps to 21.6%.Company prepaid $143.7M of term loan, reducing Net Leverage Ratio to 4.2x from 6.1x at the beginning of the year.Operating cash flow YTD increased by 147% to $162.6M, compared to $65.7M in the prior year periodCompany expects shipment volumes to continue to be lower than the prior year level in Q4; and decline in Drainage to be less than Q3 and Water will be about the same.Company expects FY20 net income in the range of $30M to $40M and Adj. EBITDA to be in the range of $265M to $280M. Additionally, expects voluntary prepayments of long-term debt to be

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Forterra slips 11% post Q3 results miss; reports improved margins