HERNDON, Va.--(BUSINESS WIRE)--Mar. 25, 2019--
Beacon Roofing Supply, Inc. (Nasdaq:BECN) (“Beacon” or the “Company”)
announced today that results for the second quarter ended March 31, 2019
will be impacted by unfavorable weather conditions. The Company is
estimating a second quarter Adjusted Net Income (Loss) per share
(“Adjusted EPS”) of between $(0.45) and $(0.55), compared to the current
Street consensus loss per share of approximately $(0.25). Despite the
second quarter being heavily impacted by harsh weather, Adjusted EPS for
the full fiscal year ending September 30, 2019 is anticipated to be
within the lower-end of the Company’s previously provided range of $2.90
to $3.35.
Paul Isabella, the Company’s President and Chief Executive Officer
stated: “Although the second quarter typically is our most difficult
quarter, extremely harsh weather conditions, mostly in February and
early March, will result in a quarterly Adjusted EPS miss that we
believe is appropriate to highlight early to the investment community in
the interest of transparency. Through mid-March, the harsh weather has
negatively impacted 40% to 75% of our available selling days, depending
on geography. Higher-than-normal seasonal pressures have caused margins
to decline more than anticipated during the quarter, and we have
experienced difficulties in reducing variable expenses given the weather
volatility. Our team continues to implement the measures needed to
respond to this latest set of challenges. We believe the negative impact
of these circumstances will be isolated to the second quarter, and we
anticipate re-capturing some of the quarter’s deferred volumes and
margin during the second half of 2019. As a result, we are confident in
achieving the lower end of our previously provided Adjusted EPS range of
$2.90 to $3.35 for fiscal year 2019. Our dedication to executing our
growth strategy is steadfast, and we remain confident in our prospects
for long-term success.”
The Company will host a brief listen-only webcast and conference call
today at 5:30 p.m. ET to discuss its fiscal year 2019 outlook. The
webcast link and call-in details are as follows:
To assure timely access, conference call participants should dial in
prior to the 5:30 p.m. ET 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 over 500 branches throughout
all 50 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.
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BEACON ROOFING SUPPLY, INC.
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Reconciliation of Projected Adjusted EPS1
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(Unaudited; In thousands, except per share amounts)
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Three Months Ended March 31, 2019 |
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Amount |
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Per Share2 |
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Low |
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High |
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Low |
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High |
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Net income (loss)
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$
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(76,000
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)
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$
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(69,000
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)
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$
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(1.11
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)
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$
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(1.01
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)
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Dividends on preferred shares
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|
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6,000
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6,000
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$
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(0.09
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)
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$
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(0.09
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)
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Net income (loss) attributable to common shareholders
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$
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(82,000
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)
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$
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(75,000
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)
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$
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(1.20
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)
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$
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(1.10
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)
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Adjustments:
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Acquisition costs3 |
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44,500
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44,500
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$
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0.65
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$
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0.65
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Adjusted Net Income (Loss)
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$
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(37,500
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)
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$
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(30,500
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)
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$
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(0.55
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)
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$
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(0.45
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)
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| 1 |
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Adjusted Net Income (Loss) is defined as net income that excludes
non-recurring acquisition costs, the amortization of intangibles,
business restructuring costs, and the non-recurring effects of tax
reform. Adjusted net income (loss) 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.
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| 2 |
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The estimated weighted-average share count utilized in
calculations of projected Adjusted EPS presented in this table is
68,100,000.
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| 3 |
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Acquisition cost estimates are net of tax and composed of
projections for non-recurring acquisition costs and amortization
expense related to intangibles.
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For a reconciliation of our previously issued guidance for Adjusted
EPS for the fiscal year ended September 30, 2019, please see page 16
of our fiscal year 2019 first quarter earnings presentation, filed
as Exhibit 99.2 to our Form 8-K filed on February 7, 2019.
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We use Adjusted Net Income (Loss) and Adjusted EPS to evaluate
financial performance, analyze the underlying trends in our business and
establish operational goals and forecasts that are used when allocating
resources.
We believe that Adjusted Net Income (Loss) and Adjusted EPS are
useful measures because they permit investors to better understand
changes in underlying operating performance over comparative periods by
providing financial results that are unaffected by cyclical variances
that can be driven by items such as investment activity or purchase
accounting adjustments.
While we believe Adjusted Net Income (Loss) and Adjusted EPS are
useful to investors when evaluating our business, they are not prepared
and presented in accordance with United States Generally Accepted
Accounting Principles (“GAAP”), and therefore should be considered
supplemental in nature. 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. In addition, Adjusted Net Income (Loss) and
Adjusted EPS may have material limitations and may differ from similarly
titled measures presented by other companies.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190325005787/en/
Source: Beacon Roofing Supply, Inc.
Beacon Roofing Supply, Inc.
Joseph Nowicki, Executive VP & CFO
571-323-3939
JNowicki@becn.com