-
Record fourth quarter net sales of $1.3 billion (9.8% growth
year-over-year)
-
Fourth quarter EPS of $0.73 ($0.93 Adjusted) vs. $0.78 ($0.88
Adjusted) in the prior year
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Record full fiscal year net sales of $4.4 billion (6.0% growth
year-over-year)
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Fiscal year EPS of $1.67 ($2.18 Adjusted) vs. $1.49 ($2.10
Adjusted) in the prior year
-
Completed five acquisitions totaling 23 branches and opened 4
greenfield locations in fiscal year 2017
-
On August 24, announced agreement to acquire 208 branch Allied
Building Products for $2.6 billion with anticipated January 2, 2018
closing
HERNDON, Va.--(BUSINESS WIRE)--
Beacon Roofing Supply, Inc. (NASDAQ:BECN) announced results today for
its fourth quarter and fiscal year ended September 30, 2017 ("2017" or
"Fiscal 2017").
Paul Isabella, the Company's President and Chief Executive Officer,
stated: "Fiscal 2017 produced a second consecutive year of record sales,
Adjusted EBITDA and Adjusted EPS. In addition, we saw robust operating
cash flow generation of approximately $315 million, which is almost a
threefold improvement over the prior year. We are pleased with our
fourth quarter performance, and even more excited about the future, as
monthly sales trends accelerated throughout the quarter and early 2018
visibility is supported by solid re-roofing trends and two meaningful
storm events. Our residential roofing product line posted its 14th
consecutive quarter of sales growth and remained our strongest
performing sector. Overall sales growth was very balanced among our
three categories as commercial roofing produced positive growth with a
mid-single digit increase. Our complementary product line also posted a
7.3% daily sales increase, the result of Beacon's targeted efforts and
solid underlying end market trends. Our 2017 gross margin percentage
finished above robust 2016 levels and represented our best annual
performance as a public company ever. Adding to our great financial
performance in 2017 was our August 24th announcement of the
Allied Building Products acquisition, which remains on track to close on
schedule on January 2nd. The addition of Allied will enable
Beacon to reach new heights in 2018, delivering new products and better
service to our customers, stronger results for our shareholders and
greater career opportunities for our employees. These are exciting times
at Beacon, as our industry outlook remains positive and Beacon's
position to achieve profitable growth is stronger than ever."
Fourth Quarter
Total sales increased 9.8% to a fourth quarter record of $1.29 billion
in 2017, from $1.17 billion in 2016. Residential roofing product sales
increased 9.3%, non-residential roofing product sales increased 5.3%,
and complementary product sales increased 20.7% over the prior year.
Existing markets same day sales, excluding acquisitions, increased 8.2%
for the quarter. The fourth quarter of fiscal years 2017 and 2016 had 63
and 64 business days, respectively.
Net income for the fourth quarter was $45.1 million, compared to $47.4
million in 2016. Fourth quarter EPS was $0.73, compared to $0.78 in
2016. Adjusted Net Income (Loss), after removing the impact of
non-recurring costs related to acquisitions and certain incremental
amortization of intangibles related to the RSG acquisition, was $57.8
million in the fourth quarter 2017, compared to $53.6 million in 2016.
Fourth quarter Adjusted EPS was $0.93, compared to $0.88 in 2016. (See
included financial tables for a reconciliation of "Adjusted" financial
measures to the most directly comparable GAAP financial measures).
Fourth quarter results were positively impacted by strong net sales
growth within each of our three product lines. Compared to the prior
year, fiscal year 2017 operating performance was negatively impacted by
lower gross margins and higher operating costs.
Fiscal Year
Total sales increased 6.0% to an annual record of $4.38 billion in 2017,
from $4.13 billion in 2016. Residential roofing product sales increased
8.7%, non-residential roofing product sales decreased 4.4%, and
complementary product sales increased 19.5% over the prior year.
Existing market same day sales, excluding acquisitions, increased 3.4%
year to date. Fiscal years 2017 and 2016 had 252 and 254 business days,
respectively.
Net income for the full-year was $100.9 million, compared to $89.9
million in 2016. 2017 EPS was $1.64, compared to $1.49 in 2016. Adjusted
Net Income (Loss), after removing the impact of non-recurring costs
related to acquisitions and certain incremental amortization of
intangibles related to the RSG acquisition, was $133.6 million year to
date, compared to $126.5 million in 2016. 2017 Adjusted EPS was $2.18,
compared to $2.10 in 2016. (See included financial tables for a
reconciliation of "Adjusted" financial measures to the most directly
comparable GAAP financial measures). Compared to the prior year, fiscal
year 2017 results were positively impacted by strong net sales growth
within our residential roofing and complementary product lines,
partially offset by a net sales decrease in our non-residential roofing
product line.
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:
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What:
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Beacon Roofing Supply Fourth Quarter and Fiscal Year 2017 Earnings
Results Webcast and Conference Call
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When
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Monday, November 20, 2017 |
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Time:
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5:00 p.m. ET |
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Webcast:
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http://ir.beaconroofingsupply.com/events.cfm
(live and replay)
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Live Call:
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720-634-9063; Conf. ID #6068898
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To assure timely access, conference call participants should dial in
prior to the 5:00 p.m. 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 382 branches throughout 48
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.
BECN-F
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BEACON ROOFING SUPPLY, INC.
Consolidated Statements of Operations
(In thousands, except share and per share amounts)
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Three Months Ended September 30,
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Year Ended September 30,
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20171
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% of
Net Sales
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20162
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% of
Net Sales
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20171
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% of
Net Sales
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20162
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% of
Net Sales
|
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Net sales
|
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$
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1,289,868
|
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|
100.0
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%
|
|
|
$
|
1,174,366
|
|
|
100.0
|
%
|
|
|
$
|
4,376,670
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|
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100.0
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%
|
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|
$
|
4,127,109
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|
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100.0
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%
|
|
Cost of products sold
|
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967,227
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75.0
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%
|
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872,324
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74.3
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%
|
|
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|
3,300,731
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75.4
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%
|
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|
3,114,040
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75.5
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%
|
|
Gross profit
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|
322,641
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|
25.0
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%
|
|
|
|
302,042
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|
25.7
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%
|
|
|
|
1,075,939
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|
|
24.6
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%
|
|
|
|
1,013,069
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|
|
24.5
|
%
|
|
Operating expense
|
|
|
|
235,317
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|
18.2
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%
|
|
|
|
206,164
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|
17.6
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%
|
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|
859,843
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|
19.6
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%
|
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|
808,085
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|
|
19.6
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%
|
|
Income from operations
|
|
|
|
87,324
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|
|
6.8
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%
|
|
|
|
95,878
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|
8.1
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%
|
|
|
|
216,096
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|
|
5.0
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%
|
|
|
|
204,984
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|
|
4.9
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%
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|
Interest expense, financing costs, and other
|
|
|
|
13,512
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|
|
1.0
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%
|
|
|
|
16,944
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|
|
1.4
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%
|
|
|
|
52,751
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|
|
1.2
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%
|
|
|
|
58,452
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|
|
1.4
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%
|
|
Income before provision for income taxes
|
|
|
|
73,812
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|
|
5.8
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%
|
|
|
|
78,934
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|
|
6.7
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%
|
|
|
|
163,345
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|
|
3.8
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%
|
|
|
|
146,532
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|
|
3.5
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%
|
|
Provision for income taxes
|
|
|
|
28,681
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|
|
2.3
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%
|
|
|
|
31,542
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|
|
2.7
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%
|
|
|
|
62,481
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|
|
1.5
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%
|
|
|
|
56,615
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|
|
1.3
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%
|
|
Net income
|
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|
$
|
45,131
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|
|
3.5
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%
|
|
|
$
|
47,392
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|
|
4.0
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%
|
|
|
$
|
100,864
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|
|
2.3
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%
|
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|
$
|
89,917
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|
2.2
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%
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Weighted-average common stock outstanding:
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Basic
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60,861,950
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59,814,221
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60,315,648
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59,424,372
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Diluted
|
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61,880,280
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60,839,414
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|
|
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61,344,263
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|
|
|
|
|
|
60,418,067
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|
|
|
|
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Net income per share:
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|
|
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Basic
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|
$
|
0.74
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|
$
|
0.79
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|
|
|
|
|
|
$
|
1.67
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|
|
|
|
|
|
$
|
1.51
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|
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|
Diluted
|
|
|
$
|
0.73
|
|
|
|
|
|
|
$
|
0.78
|
|
|
|
|
|
|
$
|
1.64
|
|
|
|
|
|
|
$
|
1.49
|
|
|
|
|
|
|
|
|
|
|
|
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1
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|
The fourth quarter 2017 operating results include $11.0 million
($6.8 million, net of taxes) of non-recurring charges, $8.3 million
($5.1 million, net of taxes) of additional amortization for acquired
intangibles, and $1.2 million ($0.7 million, net of taxes) of
interest expense, financing costs, and other for the recognition of
certain costs related to acquisitions. Fiscal year 2017 operating
results include $15.7 million ($9.7 million, net of taxes) of
non-recurring charges, $32.0 million ($19.7 million, net of taxes)
of additional amortization for acquired intangibles, and $5.4
million ($3.3 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.
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|
2
|
|
The fourth quarter 2016 operating results include $1.4 million
($1.2 million, net of taxes) of non-recurring charges, $5.7
million ($3.6 million, net of taxes) of additional amortization
for acquired intangibles, and $2.1 million ($1.4 million, net of
taxes) of interest expense, financing costs, and other for the
recognition of certain costs related to acquisitions. Fiscal year
2016 operating results include $29.1 million ($17.9 million, net
of taxes) of non-recurring charges, $22.8 million ($14.0 million,
net of taxes) of additional amortization for acquired intangibles,
and $7.6 million ($4.7 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)
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
|
|
2017
|
|
|
2016
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
138,250
|
|
|
|
$
|
31,386
|
|
|
Accounts receivable, net
|
|
|
|
704,527
|
|
|
|
|
626,965
|
|
|
Inventories
|
|
|
|
551,924
|
|
|
|
|
480,736
|
|
|
Prepaid expenses and other current assets
|
|
|
|
209,138
|
|
|
|
|
163,103
|
|
|
Total current assets
|
|
|
|
1,603,839
|
|
|
|
|
1,302,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
156,129
|
|
|
|
|
148,569
|
|
|
Goodwill |
|
|
|
1,251,986
|
|
|
|
|
1,197,565
|
|
|
Intangibles, net
|
|
|
|
429,069
|
|
|
|
|
464,024
|
|
|
Other assets, net
|
|
|
|
8,534
|
|
|
|
|
1,511
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
|
$
|
3,449,557
|
|
|
|
$
|
3,113,859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
503,697
|
|
|
|
$
|
360,915
|
|
|
Accrued expenses
|
|
|
|
261,297
|
|
|
|
|
161,113
|
|
|
Current portion of long-term obligations
|
|
|
|
14,141
|
|
|
|
|
14,811
|
|
|
Total current liabilities
|
|
|
|
779,135
|
|
|
|
|
536,839
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings under revolving lines of credit, net
|
|
|
|
3,205
|
|
|
|
|
359,661
|
|
|
Long-term debt, net
|
|
|
|
721,268
|
|
|
|
|
722,929
|
|
|
Deferred income taxes, net
|
|
|
|
138,383
|
|
|
|
|
135,482
|
|
|
Long-term obligations under equipment financing and other, net
|
|
|
|
25,760
|
|
|
|
|
35,121
|
|
|
Total liabilities
|
|
|
|
1,667,751
|
|
|
|
|
1,790,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
677
|
|
|
|
|
598
|
|
|
Undesignated preferred stock
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Additional paid-in capital
|
|
|
|
1,047,506
|
|
|
|
|
694,564
|
|
|
Retained earnings
|
|
|
|
748,186
|
|
|
|
|
647,322
|
|
|
Accumulated other comprehensive loss
|
|
|
|
(14,563
|
)
|
|
|
|
(18,657
|
)
|
|
Total stockholders' equity
|
|
|
|
1,781,806
|
|
|
|
|
1,323,827
|
|
|
Total Liabilities and Stockholders' Equity
|
|
|
$
|
3,449,557
|
|
|
|
$
|
3,113,859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEACON ROOFING SUPPLY, INC.
Consolidated Statements of Cash Flows
(In thousands)
|
|
|
|
|
|
|
|
|
Year Ended September 30,
|
|
|
|
|
2017
|
|
|
2016
|
|
Operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
100,864
|
|
|
|
$
|
89,917
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
116,467
|
|
|
|
|
100,191
|
|
|
Stock-based compensation
|
|
|
|
15,071
|
|
|
|
|
17,749
|
|
|
Certain interest expense and other financing costs
|
|
|
|
10,497
|
|
|
|
|
8,329
|
|
|
Gain on sale of fixed assets
|
|
|
|
(839
|
)
|
|
|
|
(1,882
|
)
|
|
Deferred income taxes
|
|
|
|
393
|
|
|
|
|
25,200
|
|
|
Other, net
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Changes in operating assets and liabilities, net of the effects of
businesses acquired:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(60,185
|
)
|
|
|
|
(30,408
|
)
|
|
Inventories
|
|
|
|
(51,768
|
)
|
|
|
|
43,489
|
|
|
Prepaid expenses and other assets
|
|
|
|
(44,208
|
)
|
|
|
|
(12,841
|
)
|
|
Accounts payable and accrued expenses
|
|
|
|
228,908
|
|
|
|
|
(119,096
|
)
|
|
Net cash provided by operating activities
|
|
|
|
315,200
|
|
|
|
|
120,648
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
|
(39,828
|
)
|
|
|
|
(26,315
|
)
|
|
Acquisition of businesses
|
|
|
|
(129,390
|
)
|
|
|
|
(1,018,188
|
)
|
|
Proceeds from sales of assets
|
|
|
|
2,233
|
|
|
|
|
1,882
|
|
|
Net cash used in investing activities
|
|
|
|
(166,985
|
)
|
|
|
|
(1,042,621
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings under revolving lines of credit, net of repayments
|
|
|
|
(369,102
|
)
|
|
|
|
350,927
|
|
|
Borrowings under term loan, net of repayments
|
|
|
|
(4,500
|
)
|
|
|
|
259,875
|
|
|
Borrowings under Senior Notes
|
|
|
|
-
|
|
|
|
|
300,000
|
|
|
Borrowings under equipment financing facilities and other, net of
repayments
|
|
|
|
(10,034
|
)
|
|
|
|
(4,724
|
)
|
|
Payment of debt issuance costs
|
|
|
|
(1,669
|
)
|
|
|
|
(28,325
|
)
|
|
Proceeds from secondary offering of common stock
|
|
|
|
345,503
|
|
|
|
|
-
|
|
|
Payment of issuance costs from secondary offering of common stock
|
|
|
|
(14,684
|
)
|
|
|
|
-
|
|
|
Proceeds from issuance of common stock related to equity awards
|
|
|
|
11,341
|
|
|
|
|
24,160
|
|
|
Taxes paid related to net share settlement of equity awards
|
|
|
|
(392
|
)
|
|
|
|
(2
|
)
|
|
Excess tax benefit from stock-based compensation
|
|
|
|
2,937
|
|
|
|
|
4,956
|
|
|
Net cash provided by (used in) financing activities
|
|
|
|
(40,600
|
)
|
|
|
|
906,867
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
|
|
(751
|
)
|
|
|
|
831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
106,864
|
|
|
|
|
(14,275
|
)
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
31,386
|
|
|
|
|
45,661
|
|
|
Cash and cash equivalents, end of period
|
|
|
$
|
138,250
|
|
|
|
$
|
31,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEACON ROOFING SUPPLY, INC.
Consolidated Sales by Product Line
(Dollars in thousands)
|
|
|
|
|
|
Consolidated Sales by Product Line
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
|
|
|
Net Sales
|
|
|
Mix %
|
|
|
Net Sales
|
|
|
Mix %
|
|
|
$
|
|
|
%
|
|
Residential roofing products
|
|
|
$
|
699,100
|
|
|
54.2
|
%
|
|
|
$
|
639,852
|
|
|
54.5
|
%
|
|
|
$
|
59,248
|
|
|
9.3
|
%
|
|
Non-residential roofing products
|
|
|
|
373,720
|
|
|
29.0
|
%
|
|
|
|
354,746
|
|
|
30.2
|
%
|
|
|
|
18,974
|
|
|
5.3
|
%
|
|
Complementary building products
|
|
|
|
217,048
|
|
|
16.8
|
%
|
|
|
|
179,768
|
|
|
15.3
|
%
|
|
|
|
37,280
|
|
|
20.7
|
%
|
|
|
|
|
$
|
1,289,868
|
|
|
100.0
|
%
|
|
|
$
|
1,174,366
|
|
|
100.0
|
%
|
|
|
$
|
115,502
|
|
|
9.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales by Product Line for Existing Markets1 |
|
|
|
|
Three Months Ended September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
|
|
|
Net Sales
|
|
|
Mix %
|
|
|
Net Sales
|
|
|
Mix %
|
|
|
$
|
|
|
%
|
|
Residential roofing products
|
|
|
$
|
688,423
|
|
|
55.2
|
%
|
|
|
$
|
639,829
|
|
|
54.6
|
%
|
|
|
$
|
48,594
|
|
|
7.6
|
%
|
|
Non-residential roofing products
|
|
|
|
368,652
|
|
|
29.6
|
%
|
|
|
|
351,628
|
|
|
30.0
|
%
|
|
|
|
17,024
|
|
|
4.8
|
%
|
|
Complementary building products
|
|
|
|
189,831
|
|
|
15.2
|
%
|
|
|
|
179,746
|
|
|
15.4
|
%
|
|
|
|
10,085
|
|
|
5.6
|
%
|
|
|
|
|
$
|
1,246,906
|
|
|
100.0
|
%
|
|
|
$
|
1,171,203
|
|
|
100.0
|
%
|
|
|
$
|
75,703
|
|
|
6.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Existing Market1 Sales By Business Day2 |
|
|
|
|
Three Months Ended September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
|
|
|
Net Sales
|
|
|
Mix %
|
|
|
Net Sales
|
|
|
Mix %
|
|
|
$
|
|
|
%
|
|
Residential roofing products
|
|
|
$
|
10,927
|
|
|
55.2
|
%
|
|
|
$
|
9,997
|
|
|
54.6
|
%
|
|
|
$
|
930
|
|
|
9.3
|
%
|
|
Non-residential roofing products
|
|
|
|
5,852
|
|
|
29.6
|
%
|
|
|
|
5,494
|
|
|
30.0
|
%
|
|
|
|
358
|
|
|
6.5
|
%
|
|
Complementary building products
|
|
|
|
3,013
|
|
|
15.2
|
%
|
|
|
|
2,809
|
|
|
15.4
|
%
|
|
|
|
204
|
|
|
7.3
|
%
|
|
|
|
|
$
|
19,792
|
|
|
100.0
|
%
|
|
|
$
|
18,300
|
|
|
100.0
|
%
|
|
|
$
|
1,492
|
|
|
8.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
Excludes acquired branches that have not been under ownership for at
least four fiscal quarters prior to the start of the fourth quarter
of fiscal year 2017.
|
|
2
|
|
There were 63 and 64 business days in each of the quarters ended
September 30, 2017 and 2016, respectively.
|
|
|
|
|
|
|
|
BEACON ROOFING SUPPLY, INC.
Consolidated Sales by Product Line
(Dollars in thousands)
|
|
|
|
|
|
Consolidated Sales by Product Line
|
|
|
|
|
Year Ended September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
|
|
|
Net Sales
|
|
|
Mix %
|
|
|
Net Sales
|
|
|
Mix %
|
|
|
$
|
|
|
%
|
|
Residential roofing products
|
|
|
$
|
2,380,435
|
|
|
54.4
|
%
|
|
|
$
|
2,190,762
|
|
|
53.1
|
%
|
|
|
$
|
189,673
|
|
|
|
8.7
|
%
|
|
Non-residential roofing products
|
|
|
|
1,273,153
|
|
|
29.1
|
%
|
|
|
|
1,331,319
|
|
|
32.3
|
%
|
|
|
|
(58,166
|
)
|
|
|
(4.4
|
%)
|
|
Complementary building products
|
|
|
|
723,082
|
|
|
16.5
|
%
|
|
|
|
605,028
|
|
|
14.6
|
%
|
|
|
|
118,054
|
|
|
|
19.5
|
%
|
|
|
|
|
$
|
4,376,670
|
|
|
100.0
|
%
|
|
|
$
|
4,127,109
|
|
|
100.0
|
%
|
|
|
$
|
249,561
|
|
|
|
6.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales by Product Line for Existing Markets1 |
|
|
|
|
Year Ended September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
|
|
|
Net Sales
|
|
|
Mix %
|
|
|
Net Sales
|
|
|
Mix %
|
|
|
$
|
|
|
%
|
|
Residential roofing products
|
|
|
$
|
2,269,105
|
|
|
55.9
|
%
|
|
|
$
|
2,140,405
|
|
|
54.1
|
%
|
|
|
$
|
128,700
|
|
|
|
6.0
|
%
|
|
Non-residential roofing products
|
|
|
|
1,249,001
|
|
|
30.7
|
%
|
|
|
|
1,307,731
|
|
|
33.0
|
%
|
|
|
|
(58,730
|
)
|
|
|
(4.5
|
%)
|
|
Complementary building products
|
|
|
|
545,222
|
|
|
13.4
|
%
|
|
|
|
512,186
|
|
|
12.9
|
%
|
|
|
|
33,036
|
|
|
|
6.5
|
%
|
|
|
|
|
$
|
4,063,328
|
|
|
100.0
|
%
|
|
|
$
|
3,960,322
|
|
|
100.0
|
%
|
|
|
$
|
103,006
|
|
|
|
2.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Existing Market1 Sales By Business Day2 |
|
|
|
|
Year Ended September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
|
|
|
Net Sales
|
|
|
Mix %
|
|
|
Net Sales
|
|
|
Mix %
|
|
|
$
|
|
|
%
|
|
Residential roofing products
|
|
|
$
|
9,004
|
|
|
55.9
|
%
|
|
|
$
|
8,427
|
|
|
54.1
|
%
|
|
|
$
|
577
|
|
|
|
6.8
|
%
|
|
Non-residential roofing products
|
|
|
|
4,956
|
|
|
30.7
|
%
|
|
|
|
5,149
|
|
|
33.0
|
%
|
|
|
|
(193
|
)
|
|
|
(3.7
|
%)
|
|
Complementary building products
|
|
|
|
2,164
|
|
|
13.4
|
%
|
|
|
|
2,016
|
|
|
12.9
|
%
|
|
|
|
148
|
|
|
|
7.3
|
%
|
|
|
|
|
$
|
16,124
|
|
|
100.0
|
%
|
|
|
$
|
15,592
|
|
|
100.0
|
%
|
|
|
$
|
532
|
|
|
|
3.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
Excludes acquired branches that have not been under ownership for at
least four fiscal quarters prior to the start of fiscal year 2017.
|
|
2
|
|
There were 252 and 254 business days for the years ended September
30, 2017 and 2016, respectively.
|
|
|
|
|
|
|
|
BEACON ROOFING SUPPLY, INC.
Adjusted Net Income (Loss) and Adjusted EPS1
(In thousands except per share amounts)
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Year Ended September 30,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
Amount
|
|
|
Per
Share
|
|
|
Amount
|
|
|
Per
Share
|
|
|
Amount
|
|
|
Per
Share
|
|
|
Amount
|
|
|
Per
Share
|
|
Net income
|
|
|
$
|
45,131
|
|
|
$
|
0.73
|
|
|
$
|
47,392
|
|
|
$
|
0.78
|
|
|
$
|
100,864
|
|
|
$
|
1.64
|
|
|
$
|
89,917
|
|
|
$
|
1.49
|
|
Company adjustments, net tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition costs2 |
|
|
|
12,625
|
|
|
|
0.20
|
|
|
|
6,203
|
|
|
|
0.10
|
|
|
|
32,700
|
|
|
|
0.54
|
|
|
|
36,608
|
|
|
|
0.61
|
|
Adjusted Net Income (Loss)
|
|
|
$
|
57,756
|
|
|
$
|
0.93
|
|
|
$
|
53,595
|
|
|
$
|
0.88
|
|
|
$
|
133,564
|
|
|
$
|
2.18
|
|
|
$
|
126,525
|
|
|
$
|
2.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
Adjusted Net Income (Loss) is defined as net income excluding
non-recurring costs related to acquisitions and certain incremental
amortization of intangibles related to the RSG acquisition. 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 reflect non-recurring charges related to
acquisitions and certain incremental amortization of intangibles
related to the RSG acquisition, net of $7.8 million and $3.1 million
in tax for the three months ended September 30, 2017 and 2016,
respectively and net of $20.5 million and $22.9 million in tax for
the years ended September 30, 2017 and 2016, respectively.
|
|
|
|
|
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
September 30,
|
|
|
Year Ended
September 30,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Net income
|
|
|
$
|
45,131
|
|
|
|
$
|
47,392
|
|
|
|
$
|
100,864
|
|
|
|
$
|
89,917
|
|
|
Acquisition costs2 |
|
|
|
11,030
|
|
|
|
|
1,438
|
|
|
|
|
15,745
|
|
|
|
|
24,749
|
|
|
Interest expense, net
|
|
|
|
13,704
|
|
|
|
|
16,309
|
|
|
|
|
53,802
|
|
|
|
|
58,145
|
|
|
Income taxes
|
|
|
|
28,681
|
|
|
|
|
31,542
|
|
|
|
|
62,481
|
|
|
|
|
56,615
|
|
|
Depreciation and amortization
|
|
|
|
30,229
|
|
|
|
|
27,172
|
|
|
|
|
116,467
|
|
|
|
|
100,191
|
|
|
Stock-based compensation
|
|
|
|
3,847
|
|
|
|
|
3,679
|
|
|
|
|
15,074
|
|
|
|
|
17,749
|
|
|
Adjusted EBITDA
|
|
|
$
|
132,622
|
|
|
|
$
|
127,532
|
|
|
|
$
|
364,433
|
|
|
|
$
|
347,366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA as a % of net sales
|
|
|
|
10.3
|
%
|
|
|
|
10.9
|
%
|
|
|
|
8.3
|
%
|
|
|
|
8.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
Adjusted EBITDA is defined as net income plus interest expense (net
of interest income), income taxes, depreciation and amortization,
adjustments to contingent consideration, stock-based compensation,
and non-recurring acquisition costs from acquisitions. 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171120006104/en/
Beacon Roofing Supply, Inc.
Joseph Nowicki, Executive VP & CFO
571-323-3940
JNowicki@becn.com
Source: Beacon Roofing Supply, Inc.
News Provided by Acquire Media