Hot Growth Special Report 2006 >



Headwaters (HW)

If your home has manufactured stone siding or draws electricity from a coal-fueled power plant, chances are Headwaters is partly responsible. The South Jordan (Utah)-based company sells products and services to the construction materials and energy industries. Its energy unit helps power companies convert waste products such as coal ash into high-value materials for reuse. Four acquisitions in 2004 have helped Headwaters put big numbers on the scoreboard. Over the past three years, earnings per share have increased 43% and sales 107%. With its dealmaking behind it, analysts expect Headwaters' growth to slow this year; consensus estimates call for a 10% rise in 2006 earnings, according to Reuters. Founded in 1987, Headwaters had been known as Covol Technologies until changing its name in 2000. Chairman and CEO Kirk Benson, 54, joined in 1999 from managed health-care company Foundation Health.

Company Info

2005 Rank


Market Value*
($ Millions)


($ Millions)


Sales Growth
(3-yr. avg. annual)

99.8 %

($ Millions)


Profit Growth
(3-yr. avg. annual)

71.4 %

Return on Inv. Capital (3-yr.)

8.6 %

Share Price
12-Mo. Hi/Lo


Share Price
As of 4/28/06


Return on Equity

19.8 %

P/E Ratio


No. of Employees


Industry Construction Materials

HW >

Location South Jordan, UT
Phone 801 984-9400
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

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Company Snapshot

Headwaters Inc., through its subsidiaries, provides products, technologies, and services to the energy and construction materials industries in the U.S. It operates in three segments: Construction Materials, Coal Combustion Products, and Alternative Energy. Construction Materials segment designs, manufactures, and markets shutters, gable vents, mounting blocks and tools, and architectural manufactured stones. This segment also provides concrete blocks and other masonry units, as well as various mortars and stucco products. The Coal Combustion Products segment markets coal combustion products, such as fly ash and bottom ash to the building products and ready-mix concrete industries. Alternative Energy segment develops catalyst technologies to convert coal and heavy oil into liquid fuels, as well as nanocatalyst processes and applications. The company was founded in 1987. It was formerly known as Covol Technologies Inc. and changed its name to Headwaters Inc. in 2000. The company has its headquarters in South Jordan, Utah.

Data provided by Capital IQ
Kirk A. Benson

Kirk A. Benson, 55

Chairman and Chief Executive Officer

Total Compensation*

$ 2,939,275

Total Options Value*

$ 25,958,314

* Fiscal Year 2005

Brigham Young University-JD, MS; University of Denver-MS

Executive Bio

Kirk Benson has been CEO and chairman of Headwaters since April, 1999. Prior to that, Benson held several executive positions during a decade-long tenure with Foundation Health, one of the nation's largest publicly traded managed health-care companies. Among his jobs were president and chief operating officer for commercial operations; general counsel; and senior vice-president for development, with responsibility for merger and acquisition activity. He has been a director of Headwaters since January, 1999. He also holds a master's of laws in taxation from the University of Denver, and a master's degree in accounting and a JD from Brigham Young University.

Management Team

Key Executives

Kirk A. Benson; Scott Sorensen; Steven G. Stewart; Harlan M. Hatfield;

Board Directors

Kirk A. Benson; Raymond J. Weller; James A. Herickhoff; Edwin J. Garn; R. Sam Christensen; Malyn K. Malquist; William S. Dickinson; ; Blake O. Fisher

Executive Data provided by Capital IQ