Canada markets closed

  • S&P/TSX

    18,327.04
    -153.94 (-0.83%)
     

  • S&P 500

    3,655.04
    -38.19 (-1.03%)
     

  • DOW

    29,260.81
    -329.60 (-1.11%)
     

  • CAD/USD

    0.7289
    +0.0007 (+0.10%)
     

  • CRUDE OIL

    76.70
    -0.01 (-0.01%)
     

  • BTC-CAD

    26,307.07
    +320.17 (+1.23%)
     

  • CMC Crypto 200

    438.96
    +5.86 (+1.35%)
     

  • GOLD FUTURES

    1,633.80
    +0.40 (+0.02%)
     

  • RUSSELL 2000

    1,655.88
    -23.71 (-1.41%)
     

  • 10-Yr Bond

    3.8780
    +0.1810 (+4.90%)
     

  • NASDAQ futures

    11,344.75
    +28.50 (+0.25%)
     

  • VOLATILITY

    32.26
    +2.34 (+7.82%)
     

  • FTSE

    7,020.95
    +2.35 (+0.03%)
     

  • NIKKEI 225

    26,431.55
    -722.28 (-2.66%)
     

  • CAD/EUR

    0.7577
    +0.0003 (+0.04%)
     

Decking manufacturing company AZEK launches PVC recycling program

Yahoo Finance's Alexis Christoforous and Jesse Singh, AZEK CEO, discuss demand amid COVID-19 and the company's new PVC recycling program.

Video Transcript

ALEXIS CHRISTOFOROUS: Since going public in June, shares of the sustainable outdoor building materials company AZEK are up 27%. And the company just announced it is expanding its recycling efforts to now include a PVC return program. That program will make AZEK one of the largest PVC recyclers in the country. Joining us now is the CEO of AZEK, Jesse Singh.

Jesse, good to see you again. The last time you were on our air was the day the company went public, so good to see you. Before we get to the recycling program, you have benefited, your company has benefited from the increased focus on home improvement during this pandemic. I'm curious what business is like right now, as we head into the colder winter months here in the Northeast.

JESSE SINGH: Well, we had a strong business coming into the pandemic. And as a reminder, we make decking products and other products that are used in sustainable outdoor living. We had a growth rate of 16% coming into the pandemic, and as we've gone through the pandemic, we've continued to see a significant interest in people building outdoor living rooms and outdoor living spaces. And that's continued. You know, we continue to see strong interest and strong demand in our products.

ALEXIS CHRISTOFOROUS: Now, let's talk a little bit about this recycling program that you just announced. Tell us who you're partnering with to make this happen, and what does it mean exactly for our landfills?

JESSE SINGH: Well, we-- we've historically focused on using recycling as a material. In fact, last year, we used almost 300 million pounds of recycle. A lot of that was recycled polyethylene. And earlier this year, we bought a company called Return Polymers, which was the premier PVC recycler. And we've continued to expand that.

And this most recent announcement, you know, we're highlighting the fact that we've been running a pilot program, where we will actually ship products to our customers. As they use it, whether that's contractors or manufacturers, as they use it and generate waste, we'll actually take that waste back. So it's our first foray into creating a closed-loop system in an area, PVC, that's not typically recycled.

ALEXIS CHRISTOFOROUS: That is definitely exciting, but tell us what that might mean for AZEK's bottom line.

JESSE SINGH: Well, we-- you know, the benefit we have is we're able to use recycled materials either within our deck boards-- and in fact, our-- some of our deck boards range from 50% recycle in the middle all the way to 100% recycle in the middle. And as we continue to expand our position in recycle, as we close the loop, get closer to the consumer in terms of what we take back, it gives us an opportunity to expand our gross margins.

Recycle, when you're competing against people landfilling the product, you know, it's a very cost-effective raw material. And of course, it's significantly better for the environment, in that we're able to prevent those materials from going into landfills.

ALEXIS CHRISTOFOROUS: You know, Jesse, one of the concerns that seems to come up with analysts pretty regularly is how much AZEK is leveraged, and the debt that the company is carrying. The last figure I saw was for June, when the company had $1.2 billion in debt, equivalent to about 64% of total assets. Where do things stand right now, and what would you tell investors who are concerned about the company's debt level?

JESSE SINGH: Yeah, coming into going public, we did have the leverage that you highlighted, over a billion in debt. We generated over $800 million as part of the IPO in June, and we used all of the proceeds of that to secure our balance sheet. So as we stand right now, we've got a leverage ratio below two relative to our EBITDA. So we're actually in what we think is the right leverage point right now.

And once again, we used the proceeds for the IPO to pay down debt. And I think as important, you know, we've embarked on a almost $200 million capacity expansion to meet current and future demand. And so we're one of those folks that, you know, I've raised money from an IPO, not only paying down debt, but also give us an opportunity to invest in the US as we expand our manufacturing.

ALEXIS CHRISTOFOROUS: And lastly, what's the supply chain looking like for you, and are you able to meet the increased demand for your products, Jesse?

JESSE SINGH: Yeah, in our last earnings call, we-- in August, we highlighted that we were at 100% utilization. So all of our capacity was going to meet demand. And as we add capacity, we continue to see strong demand. And so, you know, we're in an industry right now where certainly it's been a challenge meeting the demand, but I think more importantly, long-term, we see trends that continue to drive pretty significant demand. And the capacity we're adding will allow us to meet that future demand.

ALEXIS CHRISTOFOROUS: All right, Jesse Singh, CEO of AZEK, thanks for being with us.

JESSE SINGH: Terrific. Thanks for having me.

Latest Stories

  • How to Get Investing Starting From Complete Scratch

    If you're new to investing, it can be completely overwhelming. So, let me help you start creating cash flow. The post How to Get Investing Starting From Complete Scratch appeared first on The Motley Fool Canada.

  • Dividend Lovers: 3 U.S. Stocks to Turbo Charge Your Portfolio

    U.S. dividend stocks like Coca-Cola (NYSE:KO) often have surprisingly high dividend yields. The post Dividend Lovers: 3 U.S. Stocks to Turbo Charge Your Portfolio appeared first on The Motley Fool Canada.

  • ASTRA INTERSECTS 4.5 G/T OVER 9.0 METRES, EXTENDING MINERALIZATION AT DEPTH AT PAMPA PACIENCIA PROJECT, CHILE

    Astra Exploration Inc. (TSXV: ASTR) (OTCQB: ATEPF) ("Astra" or the "Company") is pleased to announce the results of the Phase II drilling program at its Pampa Paciencia gold-silver project located in Northern Chile.

  • In China, home buyers occupy their 'rotting', unfinished properties

    For six months, home for Ms. Xu has been a room in a high-rise apartment in the southern Chinese city of Guilin that she bought three years ago, attracted by brochures touting its riverfront views and the city's clean air. "All the family's savings were invested in this house," Xu, 55, told Reuters from the Xiulan County Mansion complex, her room bare except for a mosquito net-covered bed, a few necessities and empty bottles on the floor. Xu and about 20 other buyers living in Xiulan County Mansion share a makeshift outdoor toilet and gather during the day at a table and benches in the central courtyard area.

  • Sunwing union opposes Canadian carrier's plans to hire foreign pilots

    (Reuters) -The union for Sunwing Airlines pilots said it is urging Canada's government to stop a plan by the Ontario-based leisure carrier to hire foreign pilots this winter to help cope with an expected holiday travel surge. Airline industry use of foreign pilots as aviation rebounds from the COVID-19 pandemic is sensitive for unions in Canada and the United States. "It's a punch in the face," Barret Armann, president of the union local that represents Sunwing pilots, said of the plan to hire non-Canadian pilots, adding that Labor Minister Seamus O'Regan "needs to step in and stop this."

  • Unstable cable

    Britain's gamble to spur growth with unfunded tax cuts into an inflation surge has morphed into a bona fide crisis for sterling and UK government bonds, with questions for all governments seeking ever more debt-funded economic supports. Supercharging an already rampant U.S. dollar around the globe, the sterling/dollar rate - nicknamed 'cable' by traders - went into virtual freefall at one point early on Monday. Foreign investors ran for the exits after the new government's fiscal plan on Friday threatened to stretch Britain's finances to their limits and finance minister Kwasi Kwarteng promised even further tax cuts at the weekend.

  • Les Femmes Michif Otipemisiwak Celebrates Gender Equality Week

    Les Femmes Michif Otipemisiwak / Women of the Métis Nation proudly celebrates Gender Equality Week and would like to take the time to highlight especially the roles and contributions of Métis women and gender diverse folks across Canada.

  • Market chaos forces UK lenders to pull mortgage products

    LONDON (Reuters) -Turmoil in British financial markets forced mortgage lenders to temporarily withdraw and reprice products for new customers on Monday, a real-world consequence of the market volatility thrown up by finance minister Kwasi Kwarteng's mini-budget last week. Brokers said the moves were likely just the start of a big shift in Britain's mortgage market. The country's largest mortgage lender Halifax said it was withdrawing its fee-paying mortgage products - where borrowers could pay an arrangement fee in exchange for a lower interest rate - and moving to a full fee-free range.

  • Travel restrictions removed as medical professionals reiterate the risk of COVID-19

    The removal of mask mandates and vaccine requirements has medical professionals and front-line workers reiterating that COVID-19 is still a threat. The federal government announced on Monday that starting Oct. 1, all COVID-19 entry restrictions will be removed, including testing, quarantine and isolation requirements for anyone entering Canada. A professor of epidemiology at the University of Saskatchewan, Nazeem Muhajarine, said that the lifting of restrictions did not come as a surprise to him

  • Marketmind: Asia's FX doom loops

    Expect an ugly open to Asian markets on Monday as investors try to shield themselves from the fallout from the widespread selling that battered stocks, bonds, and currencies on Friday. The historic rout in UK bonds and sterling took center stage on Friday but at the heart of the gloom shrouding world markets is the Fed's drive to raise rates far higher than most people had bargained for, and the effect that is having on global rates. The dollar's 'wrecking ball' status is being painfully felt in Asia, where several currencies have sunk to multi-year or record lows, and central banks have intervened to try and stop the rot.

  • NioCorp to Combine with Nasdaq-Listed GXII to Access Additional Capital for the Elk Creek Critical Minerals Project

    NioCorp Developments Ltd. ("NioCorp" or the "Company") (TSX: NB) (OTCQX: NIOBF) and GX Acquisition Corp. II ("GXII") (Nasdaq: GXII) today announced the signing of a definitive agreement (the "Business Combination Agreement") for a proposed business combination between the two companies. Under the Business Combination Agreement, NioCorp will acquire GXII, a U.S.-based special purpose acquisition company, and intends to be listed on the Nasdaq Stock Exchange soon after the acquisition closes, whic

  • Listuguj Mi'gmaq Rangers to oversee First Nation's fall lobster fishery

    On September 26 the Listuguj Mi'gmaq First Nation ("Listuguj") began its fall lobster fishery. The fishery is an exercise of the community's rights under the Peace and Friendship Treaties. This year, for the first time, the Department of Fisheries and Oceans ("DFO") has agreed to an enforcement protocol that acknowledges the role of the Listuguj's Mi'gmaq Rangers in governing the fishery. Significantly, the Mi'gmaq Rangers are a community enforcement agency that derives its authority entirely fr

  • Hardship remains for Ukrainian town emerging from occupation

    IZIUM, Ukraine (AP) — Rainwater is for showers and dishes. Scavenged wood is for the cooking fires. But almost nothing keeps out the autumn chill in homes without windows. Russian forces controlled Izium for six months before being forced to retreat two weeks ago in a Ukrainian counteroffensive. On one of the last days of the battle, a grad rocket exploded in Margaryta Tkachenko’s yard. Its carcass is there still, something of a novelty for her children and a reminder of the terrible six months

  • Lowered profit forecasts raise concerns on shaky Wall Street

    Recent profit warnings from bellwether companies like Ford Motor Co, may signal more challenges ahead for corporate America, increasing wariness for investors as the stock market deepens its sell-off. The U.S. Federal Reserve raised interest rates by three-quarters of a percentage point for a third straight time on Wednesday in its fight to combat inflation, and some analysts think the aggressive hikes could tip the economy into recession. Ford Motor warned last Monday that inflation-related supplier costs will run about $1 billion higher than expected in the current quarter, while FedEx Corp outlined on Thursday cost cuts of up to $2.7 billion after falling demand hammered first-quarter profits.

  • EXPLAINER: How a party of neo-fascist roots won big in Italy

    ROME (AP) — The Brothers of Italy party, which won the most votes in Italy’s national election, has its roots in the post-World War II neo-fascist Italian Social Movement. Keeping the movement's most potent symbol, the tricolor flame, Giorgia Meloni has taken Brothers of Italy from a fringe far-right group to Italy's biggest party. A century after Benito Mussolini’s 1922 March on Rome, which brought the fascist dictator to power, Meloni is poised to lead Italy's first far-right-led government si

  • My 3 Favourite TSX Stocks Right Now

    Here are my three favourite TSX stocks with strong potential to compound shareholders’ wealth. The post My 3 Favourite TSX Stocks Right Now appeared first on The Motley Fool Canada.

  • White House: New rule will show 'true cost' of plane tickets

    WASHINGTON (AP) — President Joe Biden announced a new initiative Monday that would eventually allow consumers to see a more complete price on airline tickets — including baggage and change fees — before they buy, as the White House continues to search for ways to lower costs for Americans amid persistently high inflation. The White House says the proposed rule from the Transportation Department will prevent airlines from hiding the “true cost” of airline tickets, which would help consumers save

  • What investors can do instead of betting on central banks to stop hiking rates

    Martin Pelletier: Investors need to do more than simply 'wait it out'

  • TotalEnergies to lay out plans with fate of Russian assets in focus

    French oil and gas major TotalEnergies is expected to lay out its strategy for a possible future without Russia at an investor presentation this week, with shareholders also hoping the group will increase the amount of money it plans to return to them. Unlike London-based rivals BP and Shell, the French group has held on to several investments in Russia, including minority stakes in Russia's Novatek, Yamal LNG and Arctic LNG 2. But the French firm, which will make its presentation in New York on Wednesday, has said it will not invest in new projects in Russia and will phase out purchases of Russian oil by the end of 2022.

  • Passive-Income Alert: 2 Top TSX Stocks to Buy Now for 6% Yields

    Top TSX dividend stocks now trade at discounted prices. The post Passive-Income Alert: 2 Top TSX Stocks to Buy Now for 6% Yields appeared first on The Motley Fool Canada.