Press Releases Details

• Record third quarter sales of $561 million vs. $541 million.
• Record third quarter EPS of $0.53 ($0.62 adjusted) vs. $0.51.
• Record nine-month EPS of $1.00 ($1.07 adjusted) vs. $0.60.
• Nine-month existing market sales up 12%.

PEABODY, Mass.--(BUSINESS WIRE)-- Reissuing release to add ticker symbol for searching purposes.

The release reads:

BEACON ROOFING SUPPLY REPORTS THIRD QUARTER 2012 RESULTS

• Record third quarter sales of $561 million vs. $541 million.
• Record third quarter EPS of $0.53 ($0.62 adjusted) vs. $0.51.
• Record nine-month EPS of $1.00 ($1.07 adjusted) vs. $0.60.
• Nine-month existing market sales up 12%.

Beacon Roofing Supply, Inc. (the "Company") (NASDAQ: BECN) announced results today for its third quarter and nine months ended June 30, 2012 of the fiscal year ending September 30, 2012 ("fiscal 2012").

Paul Isabella, the Company's President & Chief Executive Officer, stated: "We are very pleased with our record quarter and year-to-date results, which, after adjusting for special charges, significantly exceeded our expectations once again. Most of our regions are having an exceptional year. Our total sales have benefited from the positive impact from acquisitions, while our sales in existing markets for the third quarter fell only 1.5%. Sales in our existing markets were up against a very strong 11.6% increase in last year's third quarter, when there was substantial roofing activities beginning in June from the Spring 2011 hail storms. In addition, the much warmer winter conditions this year brought some roofing and exterior remodeling activities into our second quarter that would have otherwise been performed in our third quarter. Year-over-year price increases in our industry flattened in the third quarter but average selling prices were still slightly higher than last year. Our gross margin and operating margin continued to improve. Our new credit facility and strong balance sheet are enabling us to accelerate our growth, as we did with our most recent acquisitions of Structural Materials Company in Southern California in early July and Contractors Roofing & Supply Co. in St. Louis last week. We are confident that we will add other quality companies in the near future that fit our target acquisition profile. Although we will be up against tough comparisons again in the fourth quarter, we expect a solid finish to fiscal 2012."

Third Quarter

Total sales increased 3.7% to $560.5 million in 2012 from $540.7 million in 2011. Existing market (organic) sales, which exclude branches acquired after the beginning of last year's third quarter, declined 1.5%. In existing markets, residential roofing product sales increased 1.7%, while non-residential roofing and complementary product sales decreased 4.9% and 3.0%, respectively. This year's third quarter sales were primarily impacted by lower non-residential roofing activity and less residential roofing activity in the markets affected by last Spring's hail storms, partially offset by the benefit of higher average selling prices.

Net income for the third quarter was $25.4 million compared to $24.1 million in 2011. Third quarter diluted net income per share was a record $0.53 compared to $0.51 in 2011. The higher net income was due to the higher sales and gross margin rate, partially offset by the impact from certain charges, higher operating expenses and a higher income tax provision compared to 2011. Earnings in the third quarter of fiscal 2012 were impacted by the following charges: $4.9 million ($3.0 million net of tax), or approximately $0.06 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 $1.3 million, or approximately $0.03 diluted earnings per share, from the increase in the liability for consideration due for the Enercon acquisition.

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 $60.2 million in 2012 compared to $50.8 million in 2011, an 18.4% increase.

Nine Months

Total sales increased 16.4% to $1.45 billion in 2012 from $1.24 billion in 2011. Existing market sales increased 11.7%. In existing markets, residential and non-residential roofing product sales increased 19.4% and 7.3%, respectively, while complementary product sales declined 0.2%. Year-to-date 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.

Year-to-date net income was $47.7 million compared to $28.0 million in 2011. Year-to-date diluted net income per share was $1.00 compared to $0.60 per share in 2011. The higher net income was due to the higher sales and gross margin rate, partially offset by the impact from the special third quarter charges, higher operating expenses and a higher income tax provision.

Adjusted EBITDA for the nine months was $119.1 million in 2012 compared to $79.4 million in 2011, an increase of 49.9%.

Cash flow from operations was $35.3 million compared to $37.7 million in 2011. This slight decline in operating cash flows was influenced mostly by the impact from less favorable changes in working capital, partially offset by the impact from the higher net income and from higher non-cash charges this year. Cash on hand decreased by $76.7 million to $31.2 million at June 30, 2012 compared to $108.0 million at June 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 719-325-2204. 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 208 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.

(1) Adjusted EBITDA is defined as net income (loss) plus interest expense and other financing costs (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 other financing costs, 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.

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