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Beacon Roofing Supply Reports Second Quarter 2018 Results

Press Releases

May 8, 2018
  • Record second quarter net sales of $1.43 billion (63.7% growth year-over-year)
  • Second quarter EPS of ($1.07) vs. ($0.16) in the prior year, and Adjusted EPS of ($0.35) vs. $0.08
  • Pricing increased for the 2nd consecutive quarter and showed the strongest gains in more than five years
  • Raising Allied synergy target to $120 million from $110 million; integration progress exceeding expectations

HERNDON, Va.--(BUSINESS WIRE)--May 8, 2018-- Beacon Roofing Supply, Inc. (Nasdaq:BECN) (“Beacon” or the “Company”) announced results today for its second quarter ended March 31, 2018 and first half ended March 31, 2018 of the fiscal year ending September 30, 2018 (“2018”).

Paul Isabella, the Company's President and Chief Executive Officer, stated, “Second quarter results fell short of our expectations, as harsh winter weather conditions limited customers available work days. The year-to-year temperature declines, particularly throughout the Midwest, Ohio Valley and South, produced one of the most significant temperature drops in the past several decades. The cold weather, combined with heavier February precipitation and March snowstorms, created a difficult environment for the roofing industry. Despite this challenging environment, our organic sales were flat year over year bolstered by strong volume from hurricane impacted areas and our early efforts in passing through manufacturer price increases. Second quarter pricing improved more than 200 basis points versus last year, representing a 2nd consecutive quarterly gain and our highest increase in more than five years. While gross margins saw timing related price-cost headwinds, we are confident pricing will continue to improve over the coming months. Adjusted operating costs as a percent of sales were above year ago levels reflecting increased spending to serve the hurricane impacted markets, a higher cost structure at Allied and synergy timing. We will continue to focus our efforts on actions aimed to increase sales, drive higher gross margins and lever our cost structure during the busiest part of the year. Additionally, we remain committed to investing in our future as evidenced through initiatives such as ecommerce, continuous improvement and enhancements to our pricing model. Successful early integration efforts associated with the Allied combination have provided us the confidence to raise our synergy expectations. After just four months of ownership, the talented employees of Allied are already adding significant value to the Beacon organization. Beacon remains committed to driving growth organically and through acquisitions while lowering our overall net debt leverage, adding value through technology investments, and executing the Allied integration plan.”

Second Quarter

Total sales increased 63.7% to a second quarter record of $1.43 billion, up from $870.7 million in 2017. Residential roofing product sales increased 19.7%, non-residential roofing product sales increased 35.6% and complementary product sales increased 263.2% over the prior year. Existing markets sales, excluding acquisitions, decreased 0.1% for the quarter. The second quarter of fiscal years 2018 and 2017 each had 64 business days.

Net loss attributable to common shareholders for the second quarter was ($72.7) million, compared to ($9.4) million in 2017. Second quarter EPS was ($1.07), compared to ($0.16) in 2017. Adjusted Net Income (Loss), after removing the impact of acquisition related costs and the net benefit from one-time tax items, was a loss of ($23.5) million in the second quarter of 2018, compared to $5.0 million in 2017. Second quarter Adjusted EPS was a loss of ($0.35), compared to $0.08 in 2017. (See included financial tables for a reconciliation of “Adjusted” financial measures to the most directly comparable GAAP financial measures). Second quarter results were positively impacted by strong existing and acquired sales growth within our complementary products category, improved company-wide gross margins and early synergy benefits attributable to the purchase of Allied. Second quarter 2018 EPS was negatively impacted by winter weather conditions that lowered customer activity, higher operating expenses, increased interest expense, and the impact from preferred dividends.

First Half

Total sales increased 36.0% to a first half record of $2.55 billion, up from $1.87 billion in 2017. Residential roofing product sales increased 15.2%, non-residential roofing product sales increased 18.6% and complementary product sales increased 138.1% over the prior year. Existing markets sales, excluding acquisitions, increased 4.4% for the first half. The first half of fiscal years 2018 and 2017 each had 125 business days.

Net income (loss) attributable to common shareholders for the first half was ($5.1) million, compared to $11.1 million in 2017. First half EPS was ($0.07), compared to $0.18 in 2017. Adjusted Net Income (Loss), after removing the impact of acquisition related costs and the net benefit from one-time tax items, was $23.2 million in the first half 2018, compared to $39.4 million in 2017. First half Adjusted EPS was $0.34, compared to $0.64 in 2017. (See included financial tables for a reconciliation of “Adjusted” financial measures to the most directly comparable GAAP financial measures). First half results were positively impacted by strong net sales growth, contributions from our 2017 acquisitions, and beneficial tax adjustments. First half 2018 EPS was negatively impacted by lower gross margins, higher operating costs, and increased interest expense.

The Company will host a webcast and conference call today at 5:00 p.m. ET to discuss these results. The webcast link and call-in details are as follows:

           
    What:     Beacon Roofing Supply Second Quarter 2018 Earnings Results Webcast and Conference Call
           
    When    

Tuesday, May 8, 2018

           
    Time:     5:00 p.m. ET
           
    Webcast:    

http://ir.beaconroofingsupply.com/events.cfm (live and replay)

           
    Live Call:     720-634-9063; Conf. ID #8484767
           

To assure timely access, conference call participants should dial in prior to the 5:00 p.m. ET start time.

Forward-Looking Statements:

This release contains information about management's view of the Company's future expectations, plans and prospects that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including, but not limited to, those set forth in the "Risk Factors" section of the Company's latest Form 10-K. In addition, the forward-looking statements included in this press release represent the Company's views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point, the Company specifically disclaims any obligation to do so, other than as required by federal securities laws. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this press release.

About Beacon Roofing Supply

Founded in 1928, Beacon Roofing Supply, Inc. is the largest publicly traded distributor of residential and commercial roofing materials and complementary building products, operating 563 branches throughout 50 states in the U.S. and 6 provinces in Canada. To learn more about Beacon and its family of regional brands, please visit www.becn.com.

 

BEACON ROOFING SUPPLY, INC.

Consolidated Statements of Operations

(In thousands, except share and per share amounts)

 
      Three Months Ended March 31,       Six Months Ended March 31,  
      20181    

% of
Net
Sales

    20172    

% of
Net
Sales

      20181    

% of
Net
Sales

    20172    

% of
Net
Sales

 
Net sales     $ 1,425,625       100.0 %   $ 870,724       100.0 %     $ 2,547,604       100.0 %   $ 1,872,908       100.0 %
Cost of products sold       1,087,248       76.3 %     666,247       76.5 %       1,939,474       76.1 %     1,417,364       75.7 %
Gross profit       338,377       23.7 %     204,477       23.5 %       608,130       23.9 %     455,544       24.3 %
Operating expense       395,775       27.8 %     207,533       23.8 %       616,432       24.2 %     411,643       22.0 %
Income (loss) from operations       (57,398 )     (4.1 %)     (3,056 )     (0.3 %)       (8,302 )     (0.3 %)     43,901       2.3 %
Interest expense, financing costs, and other       39,570       2.8 %     12,268       1.4 %       62,138       2.4 %     25,842       1.4 %
Income (loss) before provision for income taxes       (96,968 )     (6.9 %)     (15,324 )     (1.7 %)       (70,440 )     (2.7 %)     18,059       0.9 %
Provision for (benefit from) income taxes       (30,313 )     (2.2 %)     (5,968 )     (0.6 %)       (71,381 )     (2.7 %)     6,985       0.3 %
Net income (loss)       (66,655 )     (4.7 %)     (9,356 )     (1.1 %)       941       0.0 %     11,074       0.6 %
Dividends on preferred shares, declared       6,000       0.4 %     -       0.0 %       6,000       0.2 %     -       0.0 %
Net income (loss) attributable to common shareholders     $ (72,655 )     (5.1 %)   $ (9,356 )     (1.1 %)     $ (5,059 )     (0.2 %)   $ 11,074       0.6 %
                                                                     
Weighted-average common stock outstanding:                                                                    
Basic       68,019,300               60,141,580                 67,922,276               60,041,332          
Diluted       68,019,300               60,141,580                 67,922,276               61,069,938          
                                                                     
Net income (loss) per share:                                                                    
Basic     $ (1.07 )           $ (0.16 )             $ (0.07 )           $ 0.18          
Diluted     $ (1.07 )           $ (0.16 )             $ (0.07 )           $ 0.18          
                                                                     
1   The second quarter 2018 operating results include $28.3 million ($20.0 million, net of taxes) of non-recurring charges, $37.1 million ($26.1 million, net of taxes) of amortization for acquired intangibles, and $6.3 million ($4.5 million, net of taxes) of interest expense, financing costs, and other for the recognition of certain costs related to acquisitions. The second quarter 2018 also includes a $1.5 million net non-recurring tax benefit. The first half 2018 operating results include $33.9 million ($23.9 million, net of taxes) of non-recurring charges, $55.2 million ($39.1 million, net of taxes) of amortization for acquired intangibles, and $18.6 million ($13.2 million, net of taxes) of interest expense, financing costs, and other for the recognition of certain costs related to acquisitions. The first half 2018 also includes a $48.0 million net non-recurring tax benefit. See “Adjusted Net Income (Loss) and Adjusted EPS” table for further details.
     
2   The second quarter 2017 operating results include $1.6 million ($1.0 million, net of taxes) of non-recurring charges, $20.3 million ($12.5 million, net of taxes) of amortization for acquired intangibles, and $1.6 million ($1.0 million, net of taxes) of interest expense, financing costs, and other for the recognition of certain costs related to acquisitions. The first half 2017 operating results include $2.7 million ($1.7 million, net of taxes) of non-recurring charges, $40.4 million ($24.8 million, net of taxes) of amortization for acquired intangibles, and $3.1 million ($1.9 million, net of taxes) of interest expense, financing costs, and other for the recognition of certain costs related to acquisitions. See “Adjusted Net Income (Loss) and Adjusted EPS” table for further details.
     
 

BEACON ROOFING SUPPLY, INC.

Consolidated Balance Sheets

(In thousands)

 
     

March 31,
2018

   

September 30,
2017

   

March 31,
2017

 
Assets                          
Current assets                          
Cash and cash equivalents     $ 16,000     $ 138,250     $ 10,012  
Accounts receivable, net       832,823       704,527       506,386  
Inventories       1,005,577       551,924       580,889  
Prepaid expenses and other current assets       240,315       209,138       217,389  
Total current assets       2,094,715       1,603,839       1,314,676  
                           
Property and equipment, net       294,222       156,129       156,380  
Goodwill       2,381,620       1,251,986       1,228,059  
Intangibles, net       1,410,302       429,069       439,507  
Other assets, net       1,511       8,534       1,511  
                           
Total Assets     $ 6,182,370     $ 3,449,557     $ 3,140,133  
                           
Liabilities and Stockholders' Equity                          
Current liabilities:                          
Accounts payable     $ 593,559     $ 503,697     $ 486,328  
Accrued expenses       348,050       261,297       131,264  
Current portion of long-term obligations       19,597       14,141       14,014  
Total current liabilities       961,206       779,135       631,606  
                           
Borrowings under revolving lines of credit, net       424,528       3,205       269,124  
Long-term debt, net       2,493,889       721,268       722,101  
Deferred income taxes, net       91,101       138,383       137,495  
Long-term obligations under equipment financing and other, net       18,313       23,213       28,267  
Other long-term liabilities       10,617       2,547       2,372  
Total liabilities       3,999,654       1,667,751       1,790,965  
                           
Commitments and contingencies                          
                           
Convertible preferred stock     $ 399,195     $ -     $ -  
                           
Stockholders' equity:                          
Common stock       680       677       602  
Undesignated preferred stock       -       -       -  
Additional paid-in capital       1,056,248       1,047,506       709,278  
Retained earnings       743,127       748,186       658,396  
Accumulated other comprehensive loss       (16,534 )     (14,563 )     (19,108 )
Total stockholders' equity       1,783,521       1,781,806       1,349,168  
Total Liabilities and Stockholders' Equity     $ 6,182,370     $ 3,449,557     $ 3,140,133  
                           
 

BEACON ROOFING SUPPLY, INC.

Consolidated Statements of Cash Flows

(In thousands)

 
      Six Months Ended March 31,  
      2018       2017  
Operating activities:                    
Net income (loss)     $ 941       $ 11,074  
Adjustments to reconcile net income to net cash provided by operating activities:                    
Depreciation and amortization       81,092         56,955  
Stock-based compensation       7,835         7,574  
Certain interest expense and other financing costs       3,987         2,703  
Loss on debt extinguishment       1,725         -  
Gain on sale of fixed assets       (319 )       (420 )
Deferred income taxes       (47,260 )       2,020  
Other, net       -         131  
Changes in operating assets and liabilities, net of the effects of businesses acquired:                    
Accounts receivable       186,170         123,590  
Inventories       (131,789 )       (92,072 )
Prepaid expenses and other assets       67,425         (53,062 )
Accounts payable and accrued expenses       (130,695 )       91,950  
Other liabilities       854         87  
Net cash provided by (used in) operating activities       39,966         150,530  
                     
Investing activities:                    
Purchases of property and equipment       (24,833 )       (24,231 )
Acquisition of businesses       (2,726,561 )       (58,359 )
Proceeds from sales of assets       413         1,285  
Net cash provided by (used in) investing activities       (2,750,981 )       (81,305 )
                     
Financing activities:                    
Borrowings under revolving lines of credit, net of repayments       433,204         (91,371 )
Borrowings under term loan, net of repayments       529,000         (1,125 )
Borrowings under senior notes       1,300,000         -  
Payment of debt issuance costs       (67,723 )       -  
Repayments under equipment financing facilities and other       (5,643 )       (5,365 )
Proceeds from issuance of convertible preferred stock       400,000         -  
Payment of stock issuance costs       (1,279 )       -  
Payment of dividends on preferred stock       (978 )       -  
Proceeds from issuance of common stock related to equity awards       5,317         7,840  
Taxes paid related to net share settlement of equity awards       (3,933 )       (697 )
Net cash provided by (used in) financing activities       2,587,965         (90,718 )
                     
Effect of exchange rate changes on cash and cash equivalents       800         119  
                     
Net increase (decrease) in cash and cash equivalents       (122,250 )       (21,374 )
Cash and cash equivalents, beginning of period       138,250         31,386  
Cash and cash equivalents, end of period     $ 16,000       $ 10,012  
                     
 
BEACON ROOFING SUPPLY, INC.
Consolidated Sales by Product Line
(Dollars in thousands)
 
Consolidated Sales by Product Line  
      Three Months Ended March 31,                  
      2018     2017     Change  
      Net Sales     Mix %     Net Sales     Mix %     $     %  
Residential roofing products     $ 579,650       40.6 %   $ 484,429       55.6 %   $ 95,221       19.7 %
Non-residential roofing products       331,680       23.3 %     244,678       28.1 %     87,002       35.6 %
Complementary building products       514,295       36.1 %     141,617       16.3 %     372,678       263.2 %
      $ 1,425,625       100.0 %   $ 870,724       100.0 %   $ 554,901       63.7 %
                                                   
                                                   
                                                   
Consolidated Sales by Product Line for Existing Markets1  
      Three Months Ended March 31,                  
      2018     2017     Change  
      Net Sales     Mix %     Net Sales     Mix %     $     %  
Residential roofing products     $ 461,311       53.6 %   $ 479,435       55.6 %   $ (18,124 )     (3.8 %)
Non-residential roofing products       248,209       28.8 %     243,893       28.3 %     4,316       1.8 %
Complementary building products       151,398       17.6 %     138,707       16.1 %     12,691       9.1 %
      $ 860,918       100.0 %   $ 862,035       100.0 %   $ (1,117 )     (0.1 %)
                                                   
                                                   
                                                   
Existing Market1 Sales By Business Day2  
      Three Months Ended March 31,                  
      2018     2017     Change  
      Net Sales     Mix %     Net Sales     Mix %     $     %  
Residential roofing products     $ 7,208       53.6 %   $ 7,491       55.6 %   $ (283 )     (3.8 %)
Non-residential roofing products       3,878       28.8 %     3,811       28.3 %     67       1.8 %
Complementary building products       2,366       17.6 %     2,167       16.1 %     199       9.1 %
      $ 13,452       100.0 %   $ 13,469       100.0 %   $ (17 )     (0.1 %)
                                                   
1   Excludes acquired branches that have not been under ownership for at least four fiscal quarters prior to the start of the second quarter of fiscal year 2018.
     
2   There were 64 business days in each of the quarters ended March 31, 2018 and 2017.
     
 
BEACON ROOFING SUPPLY, INC.
Consolidated Sales by Product Line
(Dollars in thousands)
 
Consolidated Sales by Product Line  
      Six Months Ended March 31,                  
      2018     2017     Change  
      Net Sales     Mix %     Net Sales     Mix %     $     %  
Residential roofing products     $ 1,168,379       45.9 %   $ 1,013,973       54.1 %   $ 154,406       15.2 %
Non-residential roofing products       660,680       25.9 %     557,127       29.7 %     103,553       18.6 %
Complementary building products       718,545       28.2 %     301,808       16.2 %     416,737       138.1 %
      $ 2,547,604       100.0 %   $ 1,872,908       100.0 %   $ 674,696       36.0 %
                                                   
                                                   
                                                   
Consolidated Sales by Product Line for Existing Markets1  
      Six Months Ended March 31,                  
      2018     2017     Change  
      Net Sales     Mix %     Net Sales     Mix %     $     %  
Residential roofing products     $ 1,041,864       53.6 %   $ 1,008,718       54.2 %   $ 33,146       3.3 %
Non-residential roofing products       571,984       29.4 %     554,367       29.8 %     17,617       3.2 %
Complementary building products       329,737       17.0 %     298,483       16.0 %     31,254       10.5 %
      $ 1,943,585       100.0 %   $ 1,861,568       100.0 %   $ 82,017       4.4 %
                                                   
                                                   
                                                   
Existing Market1 Sales By Business Day2  
      Six Months Ended March 31,                  
      2018     2017     Change  
      Net Sales     Mix %     Net Sales     Mix %     $     %  
Residential roofing products     $ 8,335       53.6 %   $ 8,070       54.2 %   $ 265       3.3 %
Non-residential roofing products       4,576       29.4 %     4,435       29.8 %     141       3.2 %
Complementary building products       2,638       17.0 %     2,388       16.0 %     250       10.5 %
      $ 15,549       100.0 %   $ 14,893       100.0 %   $ 656       4.4 %
                                                   
1   Excludes acquired branches that have not been under ownership for at least four fiscal quarters prior to the start of fiscal year 2018.
     
2   There were 125 business days for the six months ended March 31, 2018 and 2017, respectively.
     
 
BEACON ROOFING SUPPLY, INC.

Adjusted Net Income (Loss) and Adjusted EPS1

(In thousands, except per share amounts)
 
     

Three Months Ended March 31,

      Six Months Ended March 31,
      2018     2017       2018     2017
      Amount    

Per
Share

    Amount    

Per
Share

      Amount    

Per
Share

    Amount    

Per
Share

Net income (loss)     $ (66,655 )   $ (0.98 )   $ (9,356 )   $ (0.16 )     $ 941     $ 0.01     $ 11,074     $ 0.18
Less: Dividends on preferred shares, declared       6,000       (0.09 )     -       -         6,000       (0.08 )     -       -
Net income (loss) attributable to common shareholders     $ (72,655 )   $ (1.07 )   $ (9,356 )   $ (0.16 )     $ (5,059 )   $ (0.07 )   $ 11,074     $ 0.18
Adjustments:                                                                  
Acquisition costs2       50,604       0.74       14,404       0.24         76,237       1.12       28,373       0.46
Effects of tax reform3       (1,491 )     (0.02 )     -       -         (47,983 )     (0.71 )     -       -
Adjusted Net Income (Loss)     $ (23,542 )   $ (0.35 )   $ 5,048     $ 0.08       $ 23,195     $ 0.34     $ 39,447     $ 0.64
                                                                   
1   Adjusted Net Income (Loss) is defined as net income that excludes non-recurring acquisition costs, the amortization of intangibles, business restructuring costs, and the non-recurring effects of tax reform. We believe that Adjusted Net Income (Loss) is an operating performance metric that is useful to investors because it permits investors to better understand year-over-year changes in underlying operating performance. Adjusted net income per share or "Adjusted EPS" is calculated by dividing the Adjusted Net Income (Loss) for the period by the weighted-average diluted shares outstanding for the period (see Consolidated Statements of Operations for amounts).
     
2   Acquisition costs for the three months ended March 31, 2018 include $34.6 million of non-recurring charges related to acquisitions and $37.1 million of amortization expense related to intangibles, both net of $21.1 million in tax in total. Acquisition costs for the three months ended March 31, 2017 include $3.1 million of non-recurring charges related to acquisitions and $20.3 million of amortization expense related to intangibles, both net of $9.0 million in tax in total. Acquisition costs for the six months ended March 31, 2018 include $52.5 million of non-recurring charges related to acquisitions and $55.2 million of amortization expense related to intangibles, both net of $31.5 million in tax in total. Acquisition costs for the six months ended March 31, 2017 include $5.9 million of non-recurring charges related to acquisitions and $40.4 million of amortization expense related to intangibles, both net of $17.8 million in tax in total.
     
3   The non-recurring impact of deferred tax asset revaluation and a recognized provisional expense related to the repatriation of earnings and profits of our foreign subsidiary, Beacon Roofing Supply Canada Company.
     
 

While we believe Adjusted Net Income (Loss) and Adjusted EPS are useful measures for investors, these are not measurements presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”). You should not consider Adjusted Net Income (Loss) or Adjusted EPS in isolation or as a substitute for net income and net income per share or diluted earnings per share calculated in accordance with GAAP.

 
 
BEACON ROOFING SUPPLY, INC.

Adjusted EBITDA1

(In thousands)
 
      Three Months Ended March 31,       Six Months Ended March 31,
      2018     2017       2018     2017
Net income (loss)     $ (66,655 )   $ (9,356 )     $ 941     $ 11,074
Acquisition costs2       28,301       1,584         33,870       2,744
Interest expense, net       41,763       13,245         65,279       26,484
Income taxes       (30,313 )     (5,968 )       (71,381 )     6,985
Depreciation and amortization       54,188       28,530         81,092       56,955
Stock-based compensation       4,376       3,758         7,835       7,574
Adjusted EBITDA     $ 31,660     $ 31,793       $ 117,636     $ 111,816
                                   
Adjusted EBITDA as a % of net sales     2.2%     3.7%       4.6%     6.0%
                           
1   Adjusted EBITDA is defined as net income plus interest expense (net of interest income), income taxes, depreciation and amortization, stock-based compensation, non-recurring acquisition costs, and business restructuring costs. EBITDA is a measure commonly used in the distribution industry, and we present Adjusted EBITDA to enhance your understanding of our operating performance. Adjusted EBITDA is used in our bank covenants and we use Adjusted EBITDA as an internal performance measurement and as one criterion for evaluating our performance relative to that of our peers. We believe that Adjusted EBITDA is an operating performance measure that provides investors and analysts with a measure of operating results unaffected by differences in capital structures, capital investment cycles, and ages of related assets among otherwise comparable companies. Further, we believe that Adjusted EBITDA is a useful measure because it improves comparability of results of operations, since purchase accounting used for acquisitions can render depreciation and amortization non-comparable between periods. We use these supplemental measures to evaluate performance period over period and to analyze the underlying trends in our business and establish operational goals and forecasts that are used in allocating resources. We expect to compute Adjusted EBITDA using the same consistent method from quarter-to-quarter and year-to-year.
     
2   Acquisition costs reflect all non-recurring charges related to acquisitions (excluding the impact of tax) that are not embedded in other balances of the table. Certain portions of the total acquisition costs incurred are included in interest expense, income taxes, depreciation and amortization, and stock-based compensation.
     
 

While we believe Adjusted EBITDA is a useful measure for investors, it is not a measurement presented in accordance with GAAP. You should not consider Adjusted EBITDA in isolation or as a substitute for net income, cash flows from operations, or any other items calculated in accordance with GAAP. In addition, Adjusted EBITDA has inherent material limitations as a performance measure. It does not include interest expense. Because we have borrowed money, interest expense is a necessary element of our costs. In addition, Adjusted EBITDA does not include depreciation and amortization expense. Because we have capital and intangible assets, depreciation and amortization expense is a necessary element of our costs. Adjusted EBITDA also does not include stock-based compensation, which is a necessary element of our costs since we make stock awards to key members of management as an important incentive to maximize overall company performance and as a benefit. Moreover, Adjusted EBITDA does not include taxes, and payment of taxes is a necessary element of our operations. Accordingly, since Adjusted EBITDA excludes these items, it has material limitations as a performance measure. We separately monitor capital expenditures, which impact depreciation expense, as well as amortization expense, interest expense, stock-based compensation expense, and income tax expense. Because not all companies use identical calculations, our presentation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies.

 

 

Source: Beacon Roofing Supply, Inc.

Beacon Roofing Supply, Inc.
Joseph Nowicki, Executive VP & CFO
571-323-3940
JNowicki@becn.com

 

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About Beacon Roofing Supply

  • North America’s largest publicly traded roofing distributor, with annual sales run-rate of ~$7 billion
  • 589 locations across all 50 U.S. states and 6 Canadian provinces
  • A FORTUNE 500 Company
    (Based upon revenues from June 2017 list)
  • Traded on NASDAQ under the symbol “BECN”