-
Record fourth quarter sales of $598 million vs. $576 million.
-
Fourth quarter EPS of $0.58 ($0.60 adjusted) vs. $0.67 ($0.56
adjusted).
-
Record annual EPS of $1.58 ($1.67 adjusted) vs. $1.27 ($1.16
adjusted).
-
Record annual sales of $2.04 billion vs. $1.82 billion.
-
Annual existing market sales up 6%.
PEABODY, Mass.--(BUSINESS WIRE)--
Beacon Roofing Supply, Inc. (the "Company") (NASDAQ: BECN) announced
results today for its fourth quarter and fiscal year ended September 30,
2012.
Paul Isabella, the Company's President and Chief Executive Officer,
stated: "We are very pleased with our record quarter and annual 2012
results, which exceeded our expectations. Our total sales benefited from
the positive impact of acquisitions and from a 6% increase in existing
market sales for the year. The adjusted fourth quarter net income
exceeded last year's adjusted net income, even though we were facing a
very challenging comparison to last year's fourth quarter, when there
were substantial roofing activities from hail storms. Our gross margin
continued to improve over the prior year, and our annual operating
margin was significantly higher than in 2011. We are confident in the
long-term growth opportunities available in our industry and are
actively investing to realize those opportunities, such as with our most
recent acquisition of McClure-Johnston."
Fourth Quarter
Total sales increased 3.9% to $598.1 million in 2012 from $575.6 million
in 2011. Existing market (organic) sales, which exclude branches
acquired after the beginning of last year's fourth quarter, declined
5.6% (4.1% based on the same number of business days). In existing
markets, residential and non-residential roofing product sales decreased
3.3% and 10.5%, respectively, while complementary product sales
increased 1.2%. This year's fourth quarter sales were primarily impacted
by lower roofing activity in the markets affected by last year's hail
storms, partially offset by the benefit of slightly higher overall
average selling prices.
Net income for the fourth quarter was $27.9 million compared to $31.3
million in 2011. Fourth quarter diluted net income per share was $0.58
compared to $0.67 in 2011. The lower net income was due primarily to a
one-time income tax benefit of $5.1 million, or $0.11 diluted income per
share, realized in 2011. The benefit in 2012 from the higher sales and
gross margin rate and lower interest expense was partially offset by the
impact from higher operating expenses compared to 2011. Earnings in the
fourth quarter of fiscal 2012 were also impacted by the following items:
a charge of $3.0 million ($1.8 million net of tax), or approximately
$0.04 diluted earnings per share, for the recognition of termination
benefits in operating expenses associated with an acquisition and the
announced retirement of our CFO; and a benefit of $1.1 million ($0.7
million net of tax), or approximately $0.01 diluted earnings per share,
for the recognition of the change in the fair value of certain interest
rate derivatives in interest expense and other financing costs. Below is
a recap of the calculation of our adjusted diluted income per share for
the fourth quarter of this year and last year (in thousands except per
share amounts):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
EPS
|
|
|
|
2011
|
|
|
|
EPS
|
|
Net income
|
|
|
|
|
|
|
$
|
27,891
|
|
|
|
$
|
0.58
|
|
|
|
$
|
31,257
|
|
|
|
$
|
0.67
|
|
|
Company adjustments, net of income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of certain interest rate derivatives
|
|
|
|
|
|
|
|
(656
|
)
|
|
|
|
(0.01
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Termination benefits
|
|
|
|
|
|
|
|
1,775
|
|
|
|
|
0.04
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Change in tax status of foreign entity
|
|
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(5,060
|
)
|
|
|
|
(0.11
|
)
|
|
Adjusted net income
|
|
|
|
|
|
|
$
|
29,009
|
|
|
|
$
|
0.60
|
|
|
|
$
|
26,197
|
|
|
|
$
|
0.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The calculations of the adjusted diluted income and income per
share for 2012 do not add down due to rounding.
|
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 $57.1 million in 2012
compared to $55.4 million in 2011, a 3.1% increase.
Fiscal Year
Total sales increased 12.5% to $2.04 billion in 2012 from $1.82 billion
in 2011. Existing market sales increased 6.3% (7.6% based on the same
number of business days). In existing markets, residential and
non-residential roofing product sales increased 11.8% and 2.3%,
respectively, while complementary product sales declined 0.4%. Annual
sales were favorably impacted by increased re-roofing and remodeling
activities in the first half of the this year, including the impact from
improved weather conditions and stronger business in several markets
that experienced significant storms during the course of last fiscal
year, and by higher average selling prices.
Annual net income was $75.6 million in 2012 compared to $59.2 million in
2011. Annual diluted net income per share was $1.58 compared to $1.27
per share in 2011. The higher net income was due to the higher sales and
gross margin rate, partially offset by the impact from certain charges
discussed below, higher operating expenses and a higher income tax
provision. Earnings in fiscal 2012 were impacted by the following items:
the fourth quarter charge of $3.0 million ($1.8 million net of tax), or
approximately $0.04 diluted earnings per share, for the recognition of
the termination benefits mentioned above; a charge of $3.8 million ($2.3
million net of tax), or approximately $0.05 diluted earnings per share,
for the recognition of the fair value of certain interest rate
derivatives and other charge in interest expense and other financing
costs resulting from the Company's refinancing in April 2012; and a
charge of $0.3 million, or approximately $0.01 diluted earnings per
share, from the increase in the liability for consideration due for the
Enercon acquisition. As mentioned above, there was a one-time income tax
benefit of $5.1 million, or $0.11 diluted income per share, realized in
the fourth quarter of 2011.
Adjusted EBITDA for fiscal 2012 was $176.1 million compared to $134.9
million for fiscal 2011, an increase of 30.6%.
Cash flow from operations was $85.4 million in 2012 compared to $79.3
million in 2011. This increase in operating cash flows was influenced
mostly by the positive impact from the higher net income and from higher
non-cash charges this year, partially offset by the impact from less
favorable changes in working capital. Cash on hand decreased by $102.8
million to $40.2 million at September 30, 2012 compared to $143.0
million at September 30, 2011, due primarily to a significant paydown of
debt this year (net of new borrowings) and the costs of the acquisitions
made since last year.
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 719-325-2329. 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 224 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beacon Roofing Supply, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Quarter Ended
|
|
|
|
Fiscal Year Ended
|
|
|
|
September 30, 2012
|
|
% of Net Sales
|
|
September 30, 2011
|
|
% of Net Sales
|
|
|
|
September 30, 2012
|
|
% of Net Sales
|
|
September 30, 2011
|
|
% of Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
598,121
|
|
100.0%
|
|
$
|
575,562
|
|
100.0%
|
|
|
|
$
|
2,043,658
|
|
100.0%
|
|
$
|
1,817,423
|
|
100.0%
|
|
Cost of products sold
|
|
|
448,494
|
|
75.0%
|
|
|
442,691
|
|
76.9%
|
|
|
|
|
1,542,254
|
|
75.5%
|
|
|
1,397,798
|
|
76.9%
|
|
Gross profit
|
|
|
149,627
|
|
25.0%
|
|
|
132,871
|
|
23.1%
|
|
|
|
|
501,404
|
|
24.5%
|
|
|
419,625
|
|
23.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
101,325
|
|
16.9%
|
|
|
85,269
|
|
14.8%
|
|
|
|
|
357,732
|
|
17.5%
|
|
|
315,883
|
|
17.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
48,302
|
|
8.1%
|
|
|
47,602
|
|
8.3%
|
|
|
|
|
143,672
|
|
7.0%
|
|
|
103,742
|
|
5.7%
|
|
Changes in assets and liabilities, excluding the effects of
acquisitions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense and other financing costs
|
|
|
2,456
|
|
0.3%
|
|
|
3,383
|
|
0.6%
|
|
|
|
|
17,173
|
|
0.8%
|
|
|
13,364
|
|
0.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
45,846
|
|
7.7%
|
|
|
44,219
|
|
7.7%
|
|
|
|
|
126,499
|
|
6.2%
|
|
|
90,378
|
|
5.0%
|
|
Income taxes
|
|
|
17,955
|
|
3.0%
|
|
|
12,962
|
|
2.3%
|
|
|
|
|
50,934
|
|
2.5%
|
|
|
31,158
|
|
1.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
27,891
|
|
4.7%
|
|
$
|
31,257
|
|
5.4%
|
|
|
|
$
|
75,565
|
|
3.7%
|
|
$
|
59,220
|
|
3.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.59
|
|
|
|
$
|
0.68
|
|
|
|
|
|
$
|
1.62
|
|
|
|
$
|
1.29
|
|
|
|
Diluted
|
|
$
|
0.58
|
|
|
|
$
|
0.67
|
|
|
|
|
|
$
|
1.58
|
|
|
|
$
|
1.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares used in computing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
47,245,476
|
|
|
|
|
46,129,848
|
|
|
|
|
|
|
46,718,948
|
|
|
|
|
45,919,198
|
|
|
|
Diluted
|
|
|
48,302,368
|
|
|
|
|
46,959,634
|
|
|
|
|
|
|
47,840,967
|
|
|
|
|
46,753,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEACON ROOFING SUPPLY, INC
|
|
Condensed Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
|
September 30, 2012
|
|
|
September 30, 2011
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
40,205
|
|
|
$
|
143,027
|
|
|
Accounts receivable, net
|
|
|
|
291,456
|
|
|
|
280,322
|
|
|
Inventories
|
|
|
|
222,740
|
|
|
|
202,474
|
|
|
Prepaid expenses and other assets
|
|
|
|
60,287
|
|
|
|
37,573
|
|
|
Deferred income taxes
|
|
|
|
16,087
|
|
|
|
15,469
|
|
|
Total current assets
|
|
|
|
630,775
|
|
|
|
678,865
|
|
|
Changes in assets and liabilities, excluding the effects of
acquisitions:
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
57,376
|
|
|
|
47,427
|
|
|
Goodwill
|
|
|
|
443,161
|
|
|
|
380,916
|
|
|
Other assets, net
|
|
|
|
85,670
|
|
|
|
49,756
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
1,216,982
|
|
|
$
|
1,156,964
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
167,390
|
|
|
$
|
182,523
|
|
|
Accrued expenses
|
|
|
|
71,627
|
|
|
|
69,906
|
|
|
Current portions of long-term obligations
|
|
|
|
56,932
|
|
|
|
15,605
|
|
|
Total current liabilities
|
|
|
|
295,949
|
|
|
|
268,034
|
|
|
|
|
|
|
|
|
|
|
Senior notes payable and other obligations, net of current portion
|
|
|
|
220,875
|
|
|
|
311,511
|
|
|
Deferred income taxes
|
|
|
|
48,196
|
|
|
|
38,992
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
477
|
|
|
|
462
|
|
|
Additional paid-in capital
|
|
|
|
280,184
|
|
|
|
248,260
|
|
|
Retained earnings
|
|
|
|
368,675
|
|
|
|
293,110
|
|
|
Accumulated other comprehensive income (loss)
|
|
|
|
2,626
|
|
|
|
(3,405
|
)
|
|
Total stockholders' equity
|
|
|
|
651,962
|
|
|
|
538,427
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
1,216,982
|
|
|
$
|
1,156,964
|
|
|
|
|
|
|
|
|
|
|
|
|
BEACON ROOFING SUPPLY, INC
|
|
Condensed Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
|
September 30, 2012
|
|
|
September 30, 2011
|
|
|
|
|
|
|
|
|
|
Operating activities:
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
75,565
|
|
|
|
$
|
59,220
|
|
|
Adjustments to reconcile net income
|
|
|
|
|
|
|
|
to net cash provided by operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
24,353
|
|
|
|
|
25,060
|
|
|
Stock-based compensation
|
|
|
|
7,873
|
|
|
|
|
6,073
|
|
|
Adjustment of liability for contingent consideration
|
|
|
|
250
|
|
|
|
|
-
|
|
|
Certain interest expense and other financing costs
|
|
|
|
4,359
|
|
|
|
|
-
|
|
|
Gain on sale of fixed assets
|
|
|
|
(1,278
|
)
|
|
|
|
(750
|
)
|
|
Deferred income taxes
|
|
|
|
7,700
|
|
|
|
|
(465
|
)
|
|
Changes in assets and liabilities, excluding the effects of
acquisitions:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
19,804
|
|
|
|
|
(35,314
|
)
|
|
Inventories
|
|
|
|
13,338
|
|
|
|
|
(35,016
|
)
|
|
Prepaid expenses and other assets
|
|
|
|
(22,448
|
)
|
|
|
|
7,470
|
|
|
Accounts payable and accrued expenses
|
|
|
|
(44,155
|
)
|
|
|
|
53,012
|
|
|
Net cash provided by operating activities
|
|
|
|
85,361
|
|
|
|
|
79,290
|
|
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
|
(17,404
|
)
|
|
|
|
(14,433
|
)
|
|
Acquisition of businesses
|
|
|
|
(141,049
|
)
|
|
|
|
(34,942
|
)
|
|
Proceeds from sales of assets
|
|
|
|
1,418
|
|
|
|
|
1,543
|
|
|
Net cash used in investing activities
|
|
|
|
(157,035
|
)
|
|
|
|
(47,832
|
)
|
|
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
|
|
Borrowings (repayments) under revolving lines of credit, net
|
|
|
|
41,272
|
|
|
|
|
(50
|
)
|
|
Repayments under senior notes & other, net
|
|
|
|
(91,785
|
)
|
|
|
|
(11,053
|
)
|
|
Payment of deferred financing costs
|
|
|
|
(5,377
|
)
|
|
|
|
-
|
|
|
Proceeds from exercise of options
|
|
|
|
21,478
|
|
|
|
|
5,302
|
|
|
Income tax benefit from stock-based compensation deductions in
excess of
|
|
|
|
|
|
|
-
|
|
|
the associated compensation cost
|
|
|
|
2,588
|
|
|
|
|
756
|
|
|
Net cash used by financing activities
|
|
|
|
(31,824
|
)
|
|
|
|
(5,045
|
)
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
|
|
676
|
|
|
|
|
(522
|
)
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
(102,822
|
)
|
|
|
|
25,891
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
143,027
|
|
|
|
|
117,136
|
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
40,205
|
|
|
|
$
|
143,027
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEACON ROOFING SUPPLY, INC
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales by Product Line
|
|
Three Months Ended
|
|
|
|
|
|
|
September 30, 2012
|
|
|
September 30, 2011
|
|
|
|
|
|
|
|
(dollars in millions)
|
|
|
Net Sales
|
|
|
Mix %
|
|
|
Net Sales
|
|
|
Mix %
|
|
|
Change
|
|
Residential roofing products
|
|
|
$
|
301.9
|
|
|
50.5
|
%
|
|
|
$
|
278.0
|
|
|
48.3
|
%
|
|
|
$
|
23.9
|
|
|
|
8.6
|
%
|
|
Non-residential roofing products
|
|
|
|
219.6
|
|
|
36.7
|
%
|
|
|
|
229.4
|
|
|
39.9
|
%
|
|
|
|
(9.8
|
)
|
|
|
-4.3
|
%
|
|
Complementary building products
|
|
|
|
76.6
|
|
|
12.8
|
%
|
|
|
|
68.1
|
|
|
11.8
|
%
|
|
|
|
8.5
|
|
|
|
12.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
598.1
|
|
|
100.0
|
%
|
|
|
$
|
575.6
|
|
|
100.0
|
%
|
|
|
$
|
22.6
|
|
|
|
3.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales by Product Line for Existing Markets*
|
|
Three Months Ended
|
|
|
|
|
|
|
September 30, 2012
|
|
|
September 30, 2011
|
|
|
|
|
|
|
|
(dollars in millions)
|
|
|
Net Sales
|
|
|
Mix %
|
|
|
Net Sales
|
|
|
Mix %
|
|
|
Change
|
|
Residential roofing products
|
|
|
$
|
268.8
|
|
|
49.5
|
%
|
|
|
$
|
278.0
|
|
|
48.3
|
%
|
|
|
$
|
(9.2
|
)
|
|
|
-3.3
|
%
|
|
Non-residential roofing products
|
|
|
|
205.4
|
|
|
37.8
|
%
|
|
|
|
229.4
|
|
|
39.9
|
%
|
|
|
|
(24.0
|
)
|
|
|
-10.5
|
%
|
|
Complementary building products
|
|
|
|
68.9
|
|
|
12.7
|
%
|
|
|
|
68.1
|
|
|
11.8
|
%
|
|
|
|
0.8
|
|
|
|
1.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
543.1
|
|
|
100.0
|
%
|
|
|
$
|
575.6
|
|
|
100.0
|
%
|
|
|
$
|
(32.4
|
)
|
|
|
-5.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Existing Market Sales by Business Day**
|
|
Three Months Ended
|
|
|
|
|
|
|
September 30, 2012
|
|
|
September 30, 2011
|
|
|
|
|
|
|
|
(dollars in millions)
|
|
|
Net Sales
|
|
|
Mix %
|
|
|
Net Sales
|
|
|
Mix %
|
|
|
Change
|
|
Residential roofing products
|
|
|
$
|
4.267
|
|
|
49.5
|
%
|
|
|
$
|
4.344
|
|
|
48.3
|
%
|
|
|
$
|
(0.1
|
)
|
|
|
-1.8
|
%
|
|
Non-residential roofing products
|
|
|
|
3.260
|
|
|
37.8
|
%
|
|
|
|
3.584
|
|
|
39.9
|
%
|
|
|
|
(0.3
|
)
|
|
|
-9.0
|
%
|
|
Complementary building products
|
|
|
|
1.094
|
|
|
12.7
|
%
|
|
|
|
1.064
|
|
|
11.8
|
%
|
|
|
|
0.0
|
|
|
|
2.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8.621
|
|
|
100.0
|
%
|
|
|
$
|
8.992
|
|
|
100.0
|
%
|
|
|
$
|
(0.4
|
)
|
|
|
-4.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Some totals above may not foot due to rounding.
|
|
*Excludes branches acquired during the four quarters prior to the
start of the fourth quarter of fiscal 2012.
|
|
**There were 63 business days in this year's fourth quarter compared
to 64 business days in last year's fourth quarter.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEACON ROOFING SUPPLY, INC
|
|
Unaudited
|
|
Consolidated Sales by Product Line
|
|
Fiscal Years Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2012
|
|
|
|
September 30, 2011
|
|
|
|
|
|
|
|
|
|
(dollars in millions)
|
|
|
|
Net Sales
|
|
|
|
Mix %
|
|
|
|
Net Sales
|
|
|
|
Mix %
|
|
|
|
Change
|
|
Residential roofing products
|
|
|
|
$
|
1,023.5
|
|
|
|
50.1
|
%
|
|
|
|
$
|
850.0
|
|
|
|
46.8
|
%
|
|
|
|
$
|
173.5
|
|
|
|
|
20.4
|
%
|
|
Non-residential roofing products
|
|
|
|
|
757.9
|
|
|
|
37.1
|
%
|
|
|
|
|
718.1
|
|
|
|
39.5
|
%
|
|
|
|
|
39.8
|
|
|
|
|
5.5
|
%
|
|
Complementary building products
|
|
|
|
|
262.2
|
|
|
|
12.8
|
%
|
|
|
|
|
249.3
|
|
|
|
13.7
|
%
|
|
|
|
|
12.9
|
|
|
|
|
5.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,043.6
|
|
|
|
100.0
|
%
|
|
|
|
$
|
1,817.4
|
|
|
|
100.0
|
%
|
|
|
|
$
|
226.2
|
|
|
|
|
12.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales by Product Line for Existing Markets*
|
|
Fiscal Years Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2012
|
|
|
|
September 30, 2011
|
|
|
|
|
|
|
|
|
|
(dollars in millions)
|
|
|
|
Net Sales
|
|
|
|
Mix %
|
|
|
|
Net Sales
|
|
|
|
Mix %
|
|
|
|
Change
|
|
Residential roofing products
|
|
|
|
$
|
923.5
|
|
|
|
48.5
|
%
|
|
|
|
$
|
826.2
|
|
|
|
46.1
|
%
|
|
|
|
$
|
97.3
|
|
|
|
|
11.8
|
%
|
|
Non-residential roofing products
|
|
|
|
|
734.0
|
|
|
|
38.5
|
%
|
|
|
|
|
717.4
|
|
|
|
40.0
|
%
|
|
|
|
|
16.6
|
|
|
|
|
2.3
|
%
|
|
Complementary building products
|
|
|
|
|
247.9
|
|
|
|
13.0
|
%
|
|
|
|
|
248.8
|
|
|
|
13.9
|
%
|
|
|
|
|
(0.9
|
)
|
|
|
|
-0.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,905.4
|
|
|
|
100.0
|
%
|
|
|
|
$
|
1,792.4
|
|
|
|
100.0
|
%
|
|
|
|
$
|
113.0
|
|
|
|
|
6.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Existing Market Sales By Business Day**
|
|
Fiscal Years Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2012
|
|
|
|
September 30, 2011
|
|
|
|
|
|
|
|
|
|
(dollars in millions)
|
|
|
|
Net Sales
|
|
|
|
Mix %
|
|
|
|
Net Sales
|
|
|
|
Mix %
|
|
|
|
Change
|
|
Residential roofing products
|
|
|
|
$
|
3.679
|
|
|
|
48.5
|
%
|
|
|
|
$
|
3.253
|
|
|
|
46.1
|
%
|
|
|
|
$
|
0.427
|
|
|
|
|
13.1
|
%
|
|
Non-residential roofing products
|
|
|
|
|
2.924
|
|
|
|
38.5
|
%
|
|
|
|
|
2.824
|
|
|
|
40.0
|
%
|
|
|
|
|
0.100
|
|
|
|
|
3.5
|
%
|
|
Complementary building products
|
|
|
|
|
0.988
|
|
|
|
13.0
|
%
|
|
|
|
|
0.980
|
|
|
|
13.9
|
%
|
|
|
|
|
0.008
|
|
|
|
|
0.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
7.591
|
|
|
|
100.0
|
%
|
|
|
|
$
|
7.057
|
|
|
|
100.0
|
%
|
|
|
|
$
|
0.535
|
|
|
|
|
7.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Some totals above may not foot due to rounding.
|
|
*Excludes branches acquired during the four quarters prior to the
start of fiscal 2012.
|
|
**There were 251 business days in fiscal year 2012 compared to 254
business days in fiscal year 2011.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEACON ROOFING SUPPLY, INC
|
|
Results in Existing Markets-Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Fourth Quarter Ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Existing Markets
|
|
|
Acquired Markets
|
|
|
|
Consolidated
|
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
September 30,
|
|
(in thousands)
|
|
|
|
2012
|
|
|
|
2011
|
|
|
2012
|
|
|
|
2011
|
|
|
|
2012
|
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
|
|
$
|
543,094
|
|
|
|
$
|
575,562
|
|
|
$
|
55,027
|
|
|
|
$
|
|
|
|
|
-
|
|
|
|
$
|
598,121
|
|
|
|
$
|
575,562
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
|
|
|
|
|
134,986
|
|
|
|
|
132,871
|
|
|
$
|
14,641
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
149,627
|
|
|
|
|
132,871
|
|
Gross Margin
|
|
|
|
|
24.9%
|
|
|
|
|
23.1%
|
|
|
|
26.6%
|
|
|
|
|
|
|
|
|
25.0%
|
|
|
|
|
23.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
|
|
|
|
87,023
|
|
|
|
|
85,269
|
|
|
|
14,302
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
101,325
|
|
|
|
|
85,269
|
|
Operating Expenses as a % of Net Sales
|
|
|
|
|
16.0%
|
|
|
|
|
14.8%
|
|
|
|
26.0%
|
|
|
|
|
|
|
|
|
16.9%
|
|
|
|
|
14.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
$
|
47,963
|
|
|
|
$
|
47,602
|
|
|
$
|
339
|
|
|
|
$
|
|
|
|
|
-
|
|
|
|
$
|
48,302
|
|
|
|
$
|
47,602
|
|
Operating Margin
|
|
|
|
|
8.8%
|
|
|
|
|
8.3%
|
|
|
|
0.6%
|
|
|
|
|
|
|
|
|
8.1%
|
|
|
|
|
8.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beacon Roofing Supply, Inc.
|
|
Earnings Before Interest, Taxes, Depreciation and Amortization
and Stock-Based Compensation ("Adjusted EBITDA")
|
|
Unaudited
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Fiscal Year Ended September 30,
|
|
|
|
|
|
2012
|
|
|
|
2011
|
|
|
|
2012
|
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
27,891
|
|
|
$
|
31,257
|
|
|
$
|
75,565
|
|
|
$
|
59,220
|
|
Interest expense and other financing costs, net
|
|
|
|
2,456
|
|
|
|
3,383
|
|
|
|
17,173
|
|
|
|
13,364
|
|
Income taxes
|
|
|
|
17,955
|
|
|
|
12,962
|
|
|
|
50,934
|
|
|
|
31,158
|
|
Depreciation and amortization
|
|
|
|
6,607
|
|
|
|
6,265
|
|
|
|
24,353
|
|
|
|
25,060
|
|
Adjustment of liability for contingent consideration
|
|
|
|
-
|
|
|
|
-
|
|
|
|
250
|
|
|
|
-
|
|
Stock-based compensation
|
|
|
|
2,222
|
|
|
|
1,562
|
|
|
|
7,873
|
|
|
|
6,073
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (1)
|
|
|
$
|
57,131
|
|
|
$
|
55,429
|
|
|
$
|
176,148
|
|
|
$
|
134,875
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted EBITDA is defined as net income plus interest expense
and other financing costs (net of interest income), income taxes,
depreciation and amortization 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 other financing costs 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEACON ROOFING SUPPLY, INC.
|
|
Adjusted Diluted Net Income per Share ("Adjusted Earnings per
Share")
|
|
Unaudited
|
|
(Dollars in thousands except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Fiscal Years Ended September 30,
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
2012
|
|
|
|
EPS
|
|
|
|
2011
|
|
|
|
EPS
|
|
|
|
2012
|
|
|
EPS
|
|
|
|
2011
|
|
|
|
EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
27,891
|
|
|
|
$
|
0.58
|
|
|
|
$
|
31,257
|
|
|
|
$
|
0.67
|
|
|
|
$
|
75,565
|
|
|
$
|
1.58
|
|
|
$
|
59,220
|
|
|
|
$
|
1.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company adjustments, net of income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value of certain interest rate derivatives and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
charge associated with refinancing
|
|
|
|
(656
|
)
|
|
|
|
(0.01
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
2,293
|
|
|
|
0.05
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Termination benefits
|
|
|
|
1,775
|
|
|
|
|
0.04
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
1,775
|
|
|
|
0.04
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Increase in liability for purchase consideration
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
250
|
|
|
|
0.01
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in tax status of foreign entity
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(5,060
|
)
|
|
|
|
(0.11
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(5,060
|
)
|
|
|
|
(0.11
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
|
|
|
$
|
29,009
|
|
|
|
$
|
0.60
|
|
|
|
$
|
26,197
|
|
|
|
$
|
0.56
|
|
|
|
$
|
79,882
|
|
|
$
|
1.67
|
|
|
$
|
54,160
|
|
|
|
$
|
1.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Some totals above may not foot due to rounding.
|
|
|
|
Note: The Company's management believes that "Adjusted Earnings
per Share," which excludes certain events such as the recognition
of the fair value of certain interest rate derivatives in interest
expense and other financing costs, the Company's refinancing
charge in April 2012, termination benefits, and the increase in
the liability for consideration due for the Enercon acquisition,
is useful to investors because it permits investors to better
understand year-over-year changes in underlying operating
performance. The above termination benefits are associated with an
acquisition and the announced retirement of our CFO. While
management believes Adjusted Earnings per Share (EPS) is a useful
measure for investors, it is not a measurement presented in
accordance with United States generally accepted accounting
principles (GAAP). You should not consider Adjusted Earnings per
Share in isolation or as a substitute for diluted earnings per
share calculated in accordance with GAAP.
|
|
|
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