-
Record third quarter sales of $1.21 billion (5.3% growth
year-over-year)
-
Third quarter EPS of $0.73 ($0.84 Adjusted) vs. $0.68 ($0.77
Adjusted) in the prior year
-
Net income improved to $44.7 million in third quarter 2017 from
$41.1 in 2016
-
Third quarter Adjusted EBITDA grew 9.5% to $120.0 million or 9.9%
of sales
-
Completed five acquisitions totaling 23 branches (including Lowry's
in Q3), and opened 4 greenfield locations this fiscal year
HERNDON, Va.--(BUSINESS WIRE)--
Beacon Roofing Supply, Inc. (NASDAQ:BECN) announced results today for
its third quarter ended June 30, 2017 and nine months ended June 30,
2017 of the fiscal year ending September 30, 2017 ("2017" or "Fiscal
2017").
Paul Isabella, the Company's President and Chief Executive Officer,
stated: "Record sales and EPS highlighted our solid third quarter
results. Existing residential roofing sales produced a thirteenth
consecutive quarter of year-to-year gains, exhibiting great consistency.
Our complementary products business posted strong 6.3% existing market
growth, reflecting the healthy residential market and our focus on
expanding complementary product offerings across our entire footprint.
Overall existing market sales growth was encouraging when viewed against
the significant rain disruptions in the Eastern U.S., consecutive mild
winters lessening demand across Northern markets, and the challenging
comparison to last year's Q3. Despite the demand pressures, gross
margins improved meaningfully on a sequential basis and remained solid
in the quarter, which is encouraging for Q4. We have been pleased to see
our pricing show increased signs of stabilization, which is on target
with our previous expectations. Our operating cost leverage highlights
continued focus on tight expense control, even as we invest in key
initiatives across the company. As I look ahead to Q4, I believe that
Beacon is well positioned for a strong fourth quarter and delivery of
another year of great performance and earnings for our shareholders."
Third Quarter
Total sales increased 5.3% to a third quarter record of $1.21 billion in
third quarter 2017, from $1.15 billion in 2016. Residential roofing
product sales increased 8.3%, non-residential roofing product sales
declined 4.7%, and complementary product sales increased 15.7% over the
prior year. Existing markets same day sales, excluding acquisitions,
increased 2.2% for the quarter. The third quarter 2017 had an identical
number of business days as the year ago period (64 vs. 64 days).
Net income for the third quarter was $44.7 million, compared to $41.1
million in 2016. Third quarter EPS was $0.73, compared to $0.68 in 2016.
Adjusted Net Income, after removing the impact of certain non-recurring
costs related to acquisitions, was $51.4 million in the third quarter
2017, compared to $46.6 million in 2016. Third quarter Adjusted EPS was
$0.84 (see included financial tables for a reconciliation of
"Adjusted"), compared to $0.77 in 2016. Third quarter results were
positively impacted by sustained strength in residential roofing, strong
complementary products demand and attractive operating cost leverage.
Operating performance was negatively impacted by a sales decline in
non-residential roofing.
Nine Months
Total sales increased 4.5% to a nine-month record of $3.09 billion in
2017, from $2.95 billion in 2016. Residential roofing product sales
increased 8.2%, non-residential roofing product sales decreased 8.1%,
and complementary product sales increased 20.4% over the prior year.
Existing market same day sales, excluding acquisitions, increased 1.3%
year to date. The nine months of Fiscal 2017 and 2016 had 189 and 190
business days, respectively.
Net income for the nine months was $55.7 million, compared to $42.5
million in 2016. The nine-month EPS was $0.91, compared to $0.71 in
2016. Adjusted Net Income, after removing certain non-recurring costs
related to acquisitions, was $75.8 million year to date, compared to
$72.9 million in 2016. The nine-month Adjusted EPS was $1.24 (see
included financial tables for a reconciliation of "Adjusted") compared
to $1.21 in 2016. The net income for the nine months was positively
impacted by existing market growth in residential roofing and
complementary products, and operating margin expansion. Results were
negatively impacted by a sales decrease in non-residential roofing.
The Company will host a webcast and conference call today at 5:00 p.m.
ET to discuss these results. The webcast link and call-in details are as
follows:
|
|
|
|
|
|
What:
|
|
|
Beacon Roofing Supply Third Quarter 2017 Earnings Results Webcast
and Conference Call
|
|
|
|
|
|
|
When:
|
|
|
Wednesday, August 2, 2017 |
|
|
|
|
|
|
Time:
|
|
|
5:00 p.m. ET
|
|
|
|
|
|
|
Webcast:
|
|
|
http://ir.beaconroofingsupply.com/events.cfm
(live and replay)
|
|
|
|
|
|
|
Live Call:
|
|
|
720-634-9063, Conf. ID #59356720
|
|
|
|
|
|
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 385 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
|
|
|
BEACON ROOFING SUPPLY, INC.
|
|
Consolidated Statements of Operations
|
|
(In thousands, except share and per share amounts)
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
|
|
|
20171
|
|
% of
Net Sales
|
|
20162
|
|
% of
Net Sales
|
|
20171
|
|
% of
Net Sales
|
|
20162
|
|
% of
Net Sales
|
|
Net sales
|
|
$
|
1,213,894
|
|
|
100.0
|
%
|
|
$
|
1,152,726
|
|
|
100.0
|
%
|
|
$
|
3,086,802
|
|
|
100.0
|
%
|
|
$
|
2,952,743
|
|
|
100.0
|
%
|
|
Cost of products sold
|
|
|
916,140
|
|
|
75.5
|
%
|
|
|
870,651
|
|
|
75.5
|
%
|
|
|
2,333,504
|
|
|
75.6
|
%
|
|
|
2,241,716
|
|
|
75.9
|
%
|
|
Gross profit
|
|
|
297,754
|
|
|
24.5
|
%
|
|
|
282,075
|
|
|
24.5
|
%
|
|
|
753,298
|
|
|
24.4
|
%
|
|
|
711,027
|
|
|
24.1
|
%
|
|
Operating expense
|
|
|
212,883
|
|
|
17.5
|
%
|
|
|
203,696
|
|
|
17.7
|
%
|
|
|
624,526
|
|
|
20.2
|
%
|
|
|
601,921
|
|
|
20.4
|
%
|
|
Income from operations
|
|
|
84,871
|
|
|
7.0
|
%
|
|
|
78,379
|
|
|
6.8
|
%
|
|
|
128,772
|
|
|
4.2
|
%
|
|
|
109,106
|
|
|
3.7
|
%
|
|
Interest expense, financing costs, and other
|
|
|
13,397
|
|
|
1.1
|
%
|
|
|
12,226
|
|
|
1.1
|
%
|
|
|
39,239
|
|
|
1.3
|
%
|
|
|
41,508
|
|
|
1.4
|
%
|
|
Income before provision for income taxes
|
|
|
71,474
|
|
|
5.9
|
%
|
|
|
66,153
|
|
|
5.7
|
%
|
|
|
89,533
|
|
|
2.9
|
%
|
|
|
67,598
|
|
|
2.3
|
%
|
|
Provision for income taxes
|
|
|
26,815
|
|
|
2.2
|
%
|
|
|
25,027
|
|
|
2.2
|
%
|
|
|
33,800
|
|
|
1.1
|
%
|
|
|
25,073
|
|
|
0.8
|
%
|
|
Net income
|
|
$
|
44,659
|
|
|
3.7
|
%
|
|
$
|
41,126
|
|
|
3.5
|
%
|
|
$
|
55,733
|
|
|
1.8
|
%
|
|
$
|
42,525
|
|
|
1.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common stock outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
60,311,923
|
|
|
|
|
|
59,615,121
|
|
|
|
|
|
60,131,546
|
|
|
|
|
|
59,293,500
|
|
|
|
|
Diluted
|
|
|
61,350,843
|
|
|
|
|
|
60,619,809
|
|
|
|
|
|
61,163,591
|
|
|
|
|
|
60,276,695
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.74
|
|
|
|
|
$
|
0.69
|
|
|
|
|
$
|
0.93
|
|
|
|
|
$
|
0.72
|
|
|
|
|
Diluted
|
|
$
|
0.73
|
|
|
|
|
$
|
0.68
|
|
|
|
|
$
|
0.91
|
|
|
|
|
$
|
0.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
The third quarter 2017 operating results include $2.0 million ($1.2
million, net of taxes) of non-recurring charges, $7.9 million ($4.9
million, net of taxes) of additional amortization for acquired
intangibles, and $1.1 million ($0.7 million, net of taxes) of
interest expense, financing costs, and other for the recognition of
certain costs related to acquisitions completed in fiscal years 2016
and 2017. For the nine months ended June 30, 2017 operating results
include $4.7 million ($2.9 million, net of taxes) of non-recurring
charges, $23.7 million ($14.6 million, net of taxes) of additional
amortization for acquired intangibles, and $4.3 million ($2.6
million, net of taxes) of interest expense, financing costs, and
other for the recognition of certain costs related to acquisitions
completed in fiscal years 2016 and 2017. See "Adjusted Net Income
(Loss) and Adjusted EPS" table for further details.
|
|
|
|
|
|
2
|
|
The third quarter 2016 operating results include $2.2 million ($1.5
million, net of taxes) of non-recurring charges, $5.7 million ($3.6
million, net of taxes) of additional amortization for acquired
intangibles, and $0.4 million ($0.3 million, net of taxes) of
interest expense, financing costs, and other for the recognition of
certain costs related to acquisitions completed in fiscal year 2016.
For the nine months ended June 30, 2016 operating results include
$27.6 million ($16.7 million, net of taxes) of non-recurring
charges, $17.1 million ($10.4 million, net of taxes) of additional
amortization for acquired intangibles, and $5.5 million ($3.3
million, net of taxes) of interest expense, financing costs, and
other for the recognition of certain costs related to acquisitions
completed in fiscal year 2016. See "Adjusted Net Income (Loss) and
Adjusted EPS" table for further details.
|
|
|
|
|
|
|
|
BEACON ROOFING SUPPLY, INC.
|
|
Consolidated Balance Sheets
|
|
(In thousands)
|
|
|
|
|
|
June 30,
|
|
September 30,
|
|
June 30,
|
|
|
|
2017
|
|
2016
|
|
2016
|
|
Assets
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
33,055
|
|
|
$
|
31,386
|
|
|
$
|
36,536
|
|
|
Accounts receivable, net
|
|
|
670,977
|
|
|
|
626,965
|
|
|
|
640,101
|
|
|
Inventories
|
|
|
641,425
|
|
|
|
480,736
|
|
|
|
620,908
|
|
|
Prepaid expenses and other current assets
|
|
|
221,477
|
|
|
|
163,103
|
|
|
|
205,073
|
|
|
Total current assets
|
|
|
1,566,934
|
|
|
|
1,302,190
|
|
|
|
1,502,618
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
156,951
|
|
|
|
148,569
|
|
|
|
153,389
|
|
|
Goodwill |
|
|
1,256,014
|
|
|
|
1,197,565
|
|
|
|
1,200,206
|
|
|
Intangibles, net
|
|
|
442,962
|
|
|
|
464,024
|
|
|
|
477,250
|
|
|
Other assets, net
|
|
|
1,511
|
|
|
|
1,511
|
|
|
|
1,430
|
|
|
Total Assets
|
|
$
|
3,424,372
|
|
|
$
|
3,113,859
|
|
|
$
|
3,334,893
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
387,579
|
|
|
$
|
360,915
|
|
|
$
|
563,332
|
|
|
Accrued expenses
|
|
|
280,315
|
|
|
|
161,113
|
|
|
|
205,412
|
|
|
Current portion of long-term obligations
|
|
|
13,762
|
|
|
|
14,811
|
|
|
|
12,605
|
|
|
Total current liabilities
|
|
|
681,656
|
|
|
|
536,839
|
|
|
|
781,349
|
|
|
|
|
|
|
|
|
|
|
Borrowings under revolving lines of credit, net
|
|
|
449,615
|
|
|
|
359,661
|
|
|
|
416,207
|
|
|
Long-term debt, net
|
|
|
721,685
|
|
|
|
722,929
|
|
|
|
721,630
|
|
|
Deferred income taxes, net
|
|
|
142,116
|
|
|
|
135,482
|
|
|
|
106,337
|
|
|
Long-term obligations under equipment financing and other, net
|
|
|
28,412
|
|
|
|
35,121
|
|
|
|
39,720
|
|
|
Total liabilities
|
|
|
2,023,484
|
|
|
|
1,790,032
|
|
|
|
2,065,243
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
Common stock
|
|
|
603
|
|
|
|
598
|
|
|
|
597
|
|
|
Undesignated preferred stock
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Additional paid-in capital
|
|
|
714,608
|
|
|
|
694,564
|
|
|
|
686,943
|
|
|
Retained earnings
|
|
|
703,055
|
|
|
|
647,322
|
|
|
|
599,930
|
|
|
Accumulated other comprehensive loss
|
|
|
(17,378
|
)
|
|
|
(18,657
|
)
|
|
|
(17,820
|
)
|
|
Total stockholders' equity
|
|
|
1,400,888
|
|
|
|
1,323,827
|
|
|
|
1,269,650
|
|
|
Total Liabilities and Stockholders' Equity
|
|
$
|
3,424,372
|
|
|
$
|
3,113,859
|
|
|
$
|
3,334,893
|
|
|
|
|
|
|
|
|
|
|
|
|
BEACON ROOFING SUPPLY, INC.
|
|
Consolidated Statements of Cash Flows
|
|
(In thousands)
|
|
|
|
|
|
|
|
Nine Months Ended June 30,
|
|
|
|
2017
|
|
2016
|
|
Operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
55,733
|
|
|
$
|
42,525
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
|
86,238
|
|
|
|
73,027
|
|
|
Stock-based compensation
|
|
|
11,227
|
|
|
|
14,070
|
|
|
Certain interest expense and other financing costs
|
|
|
3,989
|
|
|
|
5,113
|
|
|
Gain on sale of fixed assets
|
|
|
(726
|
)
|
|
|
(838
|
)
|
|
Deferred income taxes
|
|
|
6,625
|
|
|
|
1,460
|
|
|
Other, net
|
|
|
-
|
|
|
|
(359
|
)
|
|
Changes in operating assets and liabilities, net of the effects of
businesses acquired:
|
|
|
|
|
|
Accounts receivable
|
|
|
(28,309
|
)
|
|
|
(43,060
|
)
|
|
Inventories
|
|
|
(141,942
|
)
|
|
|
(96,363
|
)
|
|
Prepaid expenses and other assets
|
|
|
(55,973
|
)
|
|
|
(56,764
|
)
|
|
Accounts payable and accrued expenses
|
|
|
137,290
|
|
|
|
135,548
|
|
|
Net cash provided by operating activities
|
|
|
74,152
|
|
|
|
74,359
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(31,882
|
)
|
|
|
(21,553
|
)
|
|
Acquisition of businesses
|
|
|
(128,533
|
)
|
|
|
(1,018,658
|
)
|
|
Proceeds from sales of assets
|
|
|
1,839
|
|
|
|
969
|
|
|
Net cash used in investing activities
|
|
|
(158,576
|
)
|
|
|
(1,039,242
|
)
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
Borrowings under revolving lines of credit, net of repayments
|
|
|
88,357
|
|
|
|
403,052
|
|
|
Borrowings under term loan, net of repayments
|
|
|
(3,375
|
)
|
|
|
261,000
|
|
|
Borrowings under Senior Notes
|
|
|
-
|
|
|
|
300,000
|
|
|
Borrowings under equipment financing facilities and other, net of
repayments
|
|
|
(7,759
|
)
|
|
|
(3,847
|
)
|
|
Payment of deferred financing costs
|
|
|
-
|
|
|
|
(27,813
|
)
|
|
Proceeds from exercise of options
|
|
|
9,994
|
|
|
|
20,213
|
|
|
Taxes paid related to net share settlement of equity awards
|
|
|
(1,172
|
)
|
|
|
-
|
|
|
Excess tax benefit from stock-based compensation
|
|
|
-
|
|
|
|
4,024
|
|
|
Net cash provided by financing activities
|
|
|
86,045
|
|
|
|
956,629
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
|
48
|
|
|
|
(871
|
)
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
1,669
|
|
|
|
(9,125
|
)
|
|
Cash and cash equivalents, beginning of period
|
|
|
31,386
|
|
|
|
45,661
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
33,055
|
|
|
$
|
36,536
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEACON ROOFING SUPPLY, INC.
|
|
Consolidated Sales by Product Line
|
|
(Dollars in thousands)
|
|
|
|
|
|
Consolidated Sales by Product Line
|
|
|
|
Three Months Ended June 30,
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
|
|
Net Sales
|
|
Mix %
|
|
Net Sales
|
|
Mix %
|
|
$
|
|
%
|
|
Residential roofing products
|
|
$
|
669,437
|
|
55.1
|
%
|
|
$
|
618,365
|
|
53.6
|
%
|
|
$
|
51,072
|
|
|
8.3
|
%
|
|
Non-residential roofing products
|
|
|
344,792
|
|
28.4
|
%
|
|
|
361,790
|
|
31.4
|
%
|
|
|
(16,998
|
)
|
|
-4.7
|
%
|
|
Complementary building products
|
|
|
199,665
|
|
16.5
|
%
|
|
|
172,571
|
|
15.0
|
%
|
|
|
27,094
|
|
|
15.7
|
%
|
|
|
|
$
|
1,213,894
|
|
100.0
|
%
|
|
$
|
1,152,726
|
|
100.0
|
%
|
|
$
|
61,168
|
|
|
5.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales by Product Line for Existing Markets1 |
|
|
|
Three Months Ended June 30,
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
|
|
Net Sales
|
|
Mix %
|
|
Net Sales
|
|
Mix %
|
|
$
|
|
%
|
|
Residential roofing products
|
|
$
|
651,648
|
|
56.0
|
%
|
|
$
|
617,873
|
|
54.2
|
%
|
|
$
|
33,775
|
|
|
5.5
|
%
|
|
Non-residential roofing products
|
|
|
340,245
|
|
29.2
|
%
|
|
|
359,440
|
|
31.6
|
%
|
|
|
(19,195
|
)
|
|
-5.3
|
%
|
|
Complementary building products
|
|
|
172,070
|
|
14.8
|
%
|
|
|
161,827
|
|
14.2
|
%
|
|
|
10,243
|
|
|
6.3
|
%
|
|
|
|
$
|
1,163,963
|
|
100.0
|
%
|
|
$
|
1,139,140
|
|
100.0
|
%
|
|
$
|
24,823
|
|
|
2.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Existing Market1 Sales By Business Day2 |
|
|
|
Three Months Ended June 30,
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
|
|
Net Sales
|
|
Mix %
|
|
Net Sales
|
|
Mix %
|
|
$
|
|
%
|
|
Residential roofing products
|
|
$
|
10,182
|
|
56.0
|
%
|
|
$
|
9,654
|
|
54.2
|
%
|
|
$
|
528
|
|
|
5.5
|
%
|
|
Non-residential roofing products
|
|
|
5,316
|
|
29.2
|
%
|
|
|
5,616
|
|
31.6
|
%
|
|
|
(300
|
)
|
|
-5.3
|
%
|
|
Complementary building products
|
|
|
2,689
|
|
14.8
|
%
|
|
|
2,529
|
|
14.2
|
%
|
|
|
160
|
|
|
6.3
|
%
|
|
|
|
$
|
18,187
|
|
100.0
|
%
|
|
$
|
17,799
|
|
100.0
|
%
|
|
$
|
388
|
|
|
2.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
Excludes acquired branches that have not been under ownership for at
least four fiscal quarters prior to the start of the third quarter
of fiscal year 2017.
|
|
2
|
|
There were 64 business days in each of the quarters ended June 30,
2017 and 2016.
|
|
|
|
|
|
|
|
BEACON ROOFING SUPPLY, INC.
|
|
Consolidated Sales by Product Line
|
|
(Dollars in thousands)
|
|
|
|
|
|
Consolidated Sales by Product Line
|
|
|
|
Nine Months Ended June 30,
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
|
|
Net Sales
|
|
Mix %
|
|
Net Sales
|
|
Mix %
|
|
$
|
|
%
|
|
Residential roofing products
|
|
$
|
1,682,387
|
|
54.5
|
%
|
|
$
|
1,554,717
|
|
52.6
|
%
|
|
$
|
127,670
|
|
|
8.2
|
%
|
|
Non-residential roofing products
|
|
|
900,689
|
|
29.2
|
%
|
|
|
979,580
|
|
33.2
|
%
|
|
|
(78,891
|
)
|
|
-8.1
|
%
|
|
Complementary building products
|
|
|
503,726
|
|
16.3
|
%
|
|
|
418,446
|
|
14.2
|
%
|
|
|
85,280
|
|
|
20.4
|
%
|
|
|
|
$
|
3,086,802
|
|
100.0
|
%
|
|
$
|
2,952,743
|
|
100.0
|
%
|
|
$
|
134,059
|
|
|
4.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales by Product Line for Existing Markets1 |
|
|
|
Nine Months Ended June 30,
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
|
|
Net Sales
|
|
Mix %
|
|
Net Sales
|
|
Mix %
|
|
$
|
|
%
|
|
Residential roofing products
|
|
$
|
1,621,546
|
|
55.9
|
%
|
|
$
|
1,533,170
|
|
53.2
|
%
|
|
$
|
88,376
|
|
|
5.8
|
%
|
|
Non-residential roofing products
|
|
|
889,264
|
|
30.7
|
%
|
|
|
971,938
|
|
33.8
|
%
|
|
|
(82,674
|
)
|
|
-8.5
|
%
|
|
Complementary building products
|
|
|
388,932
|
|
13.4
|
%
|
|
|
372,895
|
|
13.0
|
%
|
|
|
16,037
|
|
|
4.3
|
%
|
|
|
|
$
|
2,899,742
|
|
100.0
|
%
|
|
$
|
2,878,003
|
|
100.0
|
%
|
|
$
|
21,739
|
|
|
0.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Existing Market1 Sales By Business Day2 |
|
|
|
Nine Months Ended June 30,
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
|
|
Net Sales
|
|
Mix %
|
|
Net Sales
|
|
Mix %
|
|
$
|
|
%
|
|
Residential roofing products
|
|
$
|
8,580
|
|
55.9
|
%
|
|
$
|
8,069
|
|
53.2
|
%
|
|
$
|
511
|
|
|
6.3
|
%
|
|
Non-residential roofing products
|
|
|
4,705
|
|
30.7
|
%
|
|
|
5,115
|
|
33.8
|
%
|
|
|
(410
|
)
|
|
-8.0
|
%
|
|
Complementary building products
|
|
|
2,058
|
|
13.4
|
%
|
|
|
1,963
|
|
13.0
|
%
|
|
|
95
|
|
|
4.8
|
%
|
|
|
|
$
|
15,343
|
|
100.0
|
%
|
|
$
|
15,147
|
|
100.0
|
%
|
|
$
|
196
|
|
|
1.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 189 and 190 business days for the nine months ended June
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 June 30,
|
|
Nine Months Ended June 30,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
Amount
|
|
Per
Share
|
|
Amount
|
|
Per
Share
|
|
Amount
|
|
Per
Share
|
|
Amount
|
|
Per
Share
|
|
Net income
|
|
$
|
44,659
|
|
$
|
0.73
|
|
$
|
41,126
|
|
$
|
0.68
|
|
$
|
55,733
|
|
$
|
0.91
|
|
$
|
42,525
|
|
$
|
0.71
|
|
Company adjustments, net of income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition costs2 |
|
|
6,761
|
|
|
0.11
|
|
|
5,444
|
|
|
0.09
|
|
|
20,075
|
|
|
0.33
|
|
|
30,405
|
|
|
0.50
|
|
Adjusted Net Income (Loss)
|
|
$
|
51,420
|
|
$
|
0.84
|
|
$
|
46,570
|
|
$
|
0.77
|
|
$
|
75,808
|
|
$
|
1.24
|
|
$
|
72,930
|
|
$
|
1.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
Adjusted Net Income (Loss) is defined as net income excluding
non-recurring costs and the incremental amortization of intangibles
related to acquisitions completed in fiscal years 2016 and 2017. 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 total non-recurring charges and the
incremental amortization of intangibles related to acquisitions
completed in fiscal years 2016 and 2017, net of $4.2 million and
$2.9 million in tax for the three months ended June 30, 2017 and
2016, respectively and net of $12.6 million and $19.8 million in tax
for the nine months ended June 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
June 30,
|
|
Nine Months Ended
June 30,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Net income
|
|
$
|
44,659
|
|
|
$
|
41,126
|
|
|
$
|
55,733
|
|
|
$
|
42,525
|
|
|
Acquisition costs2 |
|
|
1,971
|
|
|
|
2,157
|
|
|
|
4,715
|
|
|
|
23,310
|
|
|
Interest expense, net
|
|
|
13,614
|
|
|
|
12,508
|
|
|
|
40,098
|
|
|
|
41,836
|
|
|
Income taxes
|
|
|
26,815
|
|
|
|
25,027
|
|
|
|
33,800
|
|
|
|
25,073
|
|
|
Depreciation and amortization
|
|
|
29,283
|
|
|
|
25,375
|
|
|
|
86,238
|
|
|
|
73,019
|
|
|
Stock-based compensation
|
|
|
3,653
|
|
|
|
3,374
|
|
|
|
11,227
|
|
|
|
14,070
|
|
|
Adjusted EBITDA
|
|
$
|
119,995
|
|
|
$
|
109,567
|
|
|
$
|
231,811
|
|
|
$
|
219,833
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA as a % of net sales
|
|
|
9.9
|
%
|
|
|
9.5
|
%
|
|
|
7.5
|
%
|
|
|
7.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
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 completed in
fiscal years 2016 and 2017. 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 our non-GAAP financial measures
using the same consistent method from quarter-to-quarter and
year-to-year.
|
|
|
|
|
|
2 |
|
Acquisition costs reflect all non-recurring charges related to
acquisitions completed in fiscal years 2016 and 2017 (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/20170802006386/en/
Beacon Roofing Supply, Inc.
Joseph Nowicki, 571-323-3940
Executive
VP & CFO
JNowicki@becn.com
Source: Beacon Roofing Supply, Inc.
News Provided by Acquire Media