-
Record first quarter net sales up 21% to $490 million vs. $405
million.
-
First quarter EPS up 86% to $0.41 vs. $0.22.
-
First quarter existing market sales up 17%.
-
Cash on hand builds to $155 million from $143 million at year-end.
PEABODY, Mass.--(BUSINESS WIRE)--
Beacon Roofing Supply, Inc. (the "Company") (NASDAQ: BECN) announced
results today for its first quarter ended December 31, 2011 ("2012") of
the fiscal year ending September 30, 2012 ("fiscal 2012").
Paul Isabella, the Company's President & Chief Executive Officer,
stated: "We began fiscal 2012 with a very strong first quarter. Most of
our geographic regions exceeded our expectations by achieving
double-digit sales percentage increases and significant operating income
growth. Once again our company-wide residential and non-residential
product sales both showed double-digit percentage increases for the
quarter, while our complementary product sales were down slightly. Our
roofing businesses continued to benefit from higher volume, including
sales from increased residential re-roofing activities in all of our
geographic regions, and from industry-wide price increases that mostly
occurred during the second half of last year. Our commercial business
has been consistently strong since the third quarter of 2010. Our gross
margin and operating margin continued to improve and we were able to
increase our cash holdings since our 2011 year-end, even after the cash
used to complete our first-quarter acquisitions. We continue
aggressively to seek quality companies that fit our target acquisition
profile, such as Fowler & Peth, which we acquired in the first quarter.
We are encouraged by our strong start to fiscal 2012 and expect to
continue our steady growth."
Total sales increased 21.0% to $489.9 million in 2012 from $404.8
million in 2011. Existing market (organic) sales, which exclude branches
acquired after the beginning of last year's first quarter, increased
17.0%. In existing markets, residential and non-residential roofing
product sales increased 25.4% and 15.5%, respectively, while
complementary product sales declined 2.6%. Our first-quarter roofing
sales this year were favorably impacted by increased re-roofing
activities, including the impact from improved weather conditions and
stronger business in several markets that experienced significant storms
subsequent to last year's first quarter, and higher average selling
prices.
Net income for the first quarter was $19.1 million compared to $10.1
million in 2011, an improvement of 90.2%. This year's net income
included a benefit of $1.0 million, $0.02 per share, from a reduction in
a liability for contingent consideration that was established last year
for the acquisition of Enercon Products. First-quarter diluted net
income per share was $0.41 compared to $0.22 in 2011. The higher net
income was due to the higher sales and gross margin rate, partially
offset by the impact from higher operating expenses and a higher income
tax provision.
Earnings before interest, taxes, depreciation and amortization, and
stock-based compensation ("Adjusted EBITDA"), which are reconciled to
the net income in this press release, were $41.1 million in 2012
compared to $27.7 million in 2011, an increase of 48.0%. Adjusted EBITDA
for 2012 excludes the $1.0 million benefit mentioned above.
Cash flow from operations was $59.0 million compared to $57.5 million in
2011. This year's operating cash flows were influenced mostly by the
higher operating income, partially offset by the impact from less
favorable changes in working capital this year. Cash on hand decreased
by $20.5 million to $155.2 million at December 31, 2011 compared to
$175.7 million at December 31, 2010, but increased $12.1 million
compared to $143.0 million at September 30, 2011.
The Company will host a webcast and conference call today at 10:00 a.m.
ET to discuss these results. The live webcast of the call, along with a
webcast replay after the call, can be accessed at http://ir.beaconroofingsupply.com/events.cfm
(the "Events & Presentations" page of the "Investor Relations" section
of the Company's web site). There will be a slide presentation of the
results available on that page of the website as well. For those unable
to connect to the Internet or who may wish to ask questions, the
conference call dial-in number is 719-325-2340. To assure timely access,
call participants should call in before 10:00 a.m.
Beacon Roofing Supply, Inc. is a leading distributor of roofing
materials and complementary building products, operating 192 branches in
38 states in the United States and across Canada.
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.
BECN-F
|
|
|
BEACON ROOFING SUPPLY, INC
|
|
Condensed Consolidated Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
Three Months Ended
|
|
(Dollars in thousands, except per share data)
|
|
December 31, 2011
|
|
% of Net Sales
|
|
December 31, 2010
|
|
% of Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
489,850
|
|
100.0
|
%
|
|
$
|
404,793
|
|
100.0
|
%
|
|
Cost of products sold
|
|
|
372,525
|
|
76.0
|
%
|
|
|
309,983
|
|
76.6
|
%
|
|
Gross profit
|
|
|
117,325
|
|
24.0
|
%
|
|
|
94,810
|
|
23.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
82,985
|
|
16.9
|
%
|
|
|
74,970
|
|
18.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
34,340
|
|
7.0
|
%
|
|
|
19,840
|
|
4.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
3,280
|
|
0.7
|
%
|
|
|
3,469
|
|
0.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
31,060
|
|
6.3
|
%
|
|
|
16,371
|
|
4.0
|
%
|
|
Income tax expense
|
|
|
11,945
|
|
2.4
|
%
|
|
|
6,319
|
|
1.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
19,115
|
|
3.9
|
%
|
|
$
|
10,052
|
|
2.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.41
|
|
|
|
$
|
0.22
|
|
|
|
|
Diluted
|
|
$
|
0.41
|
|
|
|
$
|
0.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares used in computing net income per share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
46,190,888
|
|
|
|
|
45,754,466
|
|
|
|
|
Diluted
|
|
|
46,830,178
|
|
|
|
|
46,167,814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEACON ROOFING SUPPLY, INC
|
|
Condensed Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
December 31, 2011
|
|
December 31, 2010
|
|
September 30, 2011
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
155,171
|
|
$
|
175,674
|
|
$
|
143,027
|
|
|
|
Accounts receivable, net
|
|
|
221,665
|
|
|
184,546
|
|
|
280,322
|
|
|
|
Inventories
|
|
|
193,020
|
|
|
155,190
|
|
|
202,474
|
|
|
|
Prepaid expenses and other assets
|
|
|
57,083
|
|
|
49,152
|
|
|
37,573
|
|
|
|
Deferred income taxes
|
|
|
14,881
|
|
|
16,680
|
|
|
15,469
|
|
|
Total current assets
|
|
|
641,820
|
|
|
581,242
|
|
|
678,865
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
48,537
|
|
|
44,746
|
|
|
47,427
|
|
|
Goodwill
|
|
|
400,140
|
|
|
365,650
|
|
|
380,916
|
|
|
Other assets, net
|
|
|
61,008
|
|
|
48,927
|
|
|
49,756
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,151,505
|
|
$
|
1,040,565
|
|
$
|
1,156,964
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
149,699
|
|
$
|
128,121
|
|
$
|
182,523
|
|
|
|
Accrued expenses
|
|
|
73,101
|
|
|
49,876
|
|
|
69,906
|
|
|
|
Current portion of long-term obligations
|
|
|
15,201
|
|
|
16,058
|
|
|
15,605
|
|
|
Total current liabilities
|
|
|
238,001
|
|
|
194,055
|
|
|
268,034
|
|
|
|
|
|
|
|
|
|
|
|
Senior notes payable and other obligations, net of current portion
|
|
|
309,632
|
|
|
322,364
|
|
|
311,511
|
|
|
Deferred income taxes
|
|
|
39,145
|
|
|
39,885
|
|
|
38,992
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
Common stock
|
|
|
463
|
|
|
458
|
|
|
462
|
|
|
Additional paid-in capital
|
|
|
251,623
|
|
|
238,778
|
|
|
248,260
|
|
|
Retained earnings
|
|
|
312,225
|
|
|
243,942
|
|
|
293,110
|
|
|
Accumulated other comprehensive income (loss)
|
|
|
416
|
|
|
1,083
|
|
|
(3,405
|
)
|
|
Total stockholders' equity
|
|
|
564,727
|
|
|
484,261
|
|
|
538,427
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
1,151,505
|
|
$
|
1,040,565
|
|
$
|
1,156,964
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEACON ROOFING SUPPLY, INC
|
|
Condensed Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Unaudited
|
|
|
|
|
|
(In thousands)
|
|
December 31, 2011
|
|
December 31, 2010
|
|
|
|
|
|
|
|
Operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
19,115
|
|
|
$
|
10,052
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
|
6,055
|
|
|
|
6,453
|
|
|
Stock-based compensation
|
|
|
1,747
|
|
|
|
1,446
|
|
|
Adjustment of liability for contingent consideration
|
|
|
(1,000
|
)
|
|
|
-
|
|
|
Gain on sale of assets
|
|
|
(209
|
)
|
|
|
(325
|
)
|
|
Deferred income taxes
|
|
|
(662
|
)
|
|
|
(541
|
)
|
|
Changes in assets and liabilities, net of the effects of
businesses acquired:
|
|
|
|
|
|
Accounts receivable
|
|
|
71,446
|
|
|
|
57,367
|
|
|
Inventories
|
|
|
20,805
|
|
|
|
3,528
|
|
|
Prepaid expenses and other assets
|
|
|
(19,126
|
)
|
|
|
(5,282
|
)
|
|
Accounts payable and accrued expenses
|
|
|
(39,195
|
)
|
|
|
(15,185
|
)
|
|
Net cash provided by operating activities
|
|
|
58,976
|
|
|
|
57,513
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(2,434
|
)
|
|
|
(862
|
)
|
|
Acquisition of business
|
|
|
(44,396
|
)
|
|
|
-
|
|
|
Proceeds from sales of assets
|
|
|
223
|
|
|
|
923
|
|
|
Net cash provided (used) by investing activities
|
|
|
(46,607
|
)
|
|
|
61
|
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
Repayments under revolving lines of credit, net
|
|
|
(13
|
)
|
|
|
(6
|
)
|
|
Repayments under senior notes payable and other, net
|
|
|
(2,315
|
)
|
|
|
(359
|
)
|
|
Proceeds from exercises of options
|
|
|
1,534
|
|
|
|
1,109
|
|
|
Income tax benefit from stock-based compensation deductions in
excess of the associated compensation costs
|
|
|
82
|
|
|
|
88
|
|
|
Net cash provided (used) by financing activities
|
|
|
(712
|
)
|
|
|
832
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
|
487
|
|
|
|
132
|
|
|
Net increase in cash and cash equivalents
|
|
|
12,144
|
|
|
|
58,538
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
143,027
|
|
|
|
117,136
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
155,171
|
|
|
$
|
175,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEACON ROOFING SUPPLY, INC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
Consolidated Sales by Product Line
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2011
|
|
December 31, 2010
|
|
|
|
|
|
(dollars in millions)
|
|
Net Sales
|
|
Mix %
|
|
Net Sales
|
|
Mix %
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential roofing products
|
|
$
|
233.5
|
|
47.7
|
%
|
|
$
|
175.5
|
|
43.4
|
%
|
|
$
|
58.0
|
|
|
33.0
|
%
|
|
Non-residential roofing products
|
|
|
194.2
|
|
39.6
|
%
|
|
|
166.7
|
|
41.2
|
%
|
|
|
27.5
|
|
|
16.5
|
%
|
|
Complementary building products
|
|
|
62.2
|
|
12.7
|
%
|
|
|
62.6
|
|
15.5
|
%
|
|
|
(0.4
|
)
|
|
-0.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
489.9
|
|
100.0
|
%
|
|
$
|
404.8
|
|
100.0
|
%
|
|
$
|
85.1
|
|
|
21.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales by Product Line for Existing Markets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2011
|
|
December 31, 2010
|
|
|
|
|
|
(dollars in millions)
|
|
Net Sales
|
|
Mix %
|
|
Net Sales
|
|
Mix %
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential roofing products
|
|
$
|
220.1
|
|
46.5
|
%
|
|
$
|
175.4
|
|
43.3
|
%
|
|
$
|
44.7
|
|
|
25.4
|
%
|
|
Non-residential roofing products
|
|
|
192.6
|
|
40.7
|
%
|
|
|
166.7
|
|
41.2
|
%
|
|
|
25.9
|
|
|
15.5
|
%
|
|
Complementary building products
|
|
|
61.0
|
|
12.9
|
%
|
|
|
62.6
|
|
15.5
|
%
|
|
|
(1.5
|
)
|
|
-2.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
473.7
|
|
100.0
|
%
|
|
$
|
404.8
|
|
100.0
|
%
|
|
$
|
69.1
|
|
|
17.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Existing Market Sales By Business Day during the Three Months
Ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2011
|
|
December 31, 2010
|
|
|
|
|
|
(dollars in millions)
|
|
Net Sales
|
|
Mix %
|
|
Net Sales
|
|
Mix %
|
|
Change
|
|
Residential roofing products
|
|
$
|
3.668
|
|
46.5
|
%
|
|
$
|
2.829
|
|
43.3
|
%
|
|
$
|
0.839
|
|
|
29.7
|
%
|
|
Non-residential roofing products
|
|
|
3.210
|
|
40.7
|
%
|
|
|
2.689
|
|
41.2
|
%
|
|
|
0.521
|
|
|
19.4
|
%
|
|
Complementary building products
|
|
|
1.017
|
|
12.9
|
%
|
|
|
1.010
|
|
15.5
|
%
|
|
|
0.007
|
|
|
0.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
7.895
|
|
100.0
|
%
|
|
$
|
6.528
|
|
100.0
|
%
|
|
$
|
1.367
|
|
|
20.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Excludes branches acquired during the four quarters prior to the
start of the first quarter of fiscal 2012.
|
|
Note: Some totals above may not foot due to rounding.
|
|
|
|
|
|
BEACON ROOFING SUPPLY, INC.
|
|
Earnings Before Interest, Taxes, Depreciation and Amortization
and Stock-Based Compensation ("Adjusted EBITDA")
|
|
Unaudited
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
|
2011
|
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
19,115
|
|
|
$
|
10,052
|
|
Interest expense
|
|
|
3,280
|
|
|
|
3,469
|
|
Income taxes
|
|
|
11,945
|
|
|
|
6,319
|
|
Depreciation and amortization
|
|
|
6,055
|
|
|
|
6,453
|
|
Adjustment of liability for contingent consideration
|
|
|
(1,000
|
)
|
|
|
-
|
|
Stock-based compensation
|
|
|
1,747
|
|
|
|
1,446
|
|
|
|
|
|
|
|
Adjusted EBITDA (1)
|
|
$
|
41,142
|
|
|
$
|
27,739
|
|
|
|
|
|
|
(1) Adjusted EBITDA is defined as net income (loss) plus interest
expense (net of interest income), income taxes, depreciation and
amortization, adjustment of liability for contingent consideration, and
stock-based compensation. 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. Management
uses these supplemental measures to evaluate performance period over
period and to analyze the underlying trends in the Company's business
and to establish operational goals and forecasts that are used in
allocating resources. We expect to compute our non-GAAP financial
measures using the same consistent method from quarter to quarter and
year to year.
While we believe Adjusted EBITDA is a useful measure for investors, it
is not a measurement presented in accordance with United States
generally accepted accounting principles, or 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 and, 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. The Company's management separately monitors
capital expenditures, which impact depreciation expense, as well as
amortization expense, interest 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.
BECN-F
Beacon Roofing Supply, Inc.
Dave Grace, 978-535-7668 x14
CFO
dgrace@beaconroofingsupply.com
Source: Beacon Roofing Supply, Inc.
News Provided by Acquire Media