It’s not a particularly sexy sector of an industry that has been shaky for a few years, but polymer siding manufacturer/ distributor Novik (
TSX:V.NVK,
Stock Forum) has notched their second triple-digit year-over-year earnings increase in the last two quarters.
In Q2, the company boasted of a
147% increase in net earnings. They’ve now followed that with a
104% increase in Q3.
With revenues of $9.7m for the quarter, up from $7.3m the year earlier and net earnings of $1.7m compared to $839k the year before, Chairman, President and CEO Michel Gaudreau stated "the introduction of innovative products and the ramp up of new targeted customers contributed to the increase in revenues."
Gaudreau sees an uptick in the home improvement market in North America as being a big part of the improving results.
“Management believes that the innovation efforts made in recent years in designing and marketing unique products have allowed Novik to differentiate itself from its competitors,” said a company news release.
“At the same time, internal efforts to generate operational savings through better use of raw materials, equipment, and value-added production methods have been implemented to allow Novik to improve its profitability despite the constant pressure of raw material price levels.”
The company has grown from a 52-week low of $0.21 in January to nearly 300% higher at $0.80 on the back of those earnings 11 months later.
Novik has a $39.3m market cap with 49 million shares outstanding.