- Record second quarter net sales of $1.43 billion
- Existing market daily sales growth of 1.2% year-over-year
- Second quarter net income (loss) of $(68.1) million vs. $(66.7)
million in the prior year; Adjusted Net Income (Loss) of $(30.9)
million vs. $(23.5) million in the prior year
- Second quarter EPS of $(1.08) vs. $(1.07) in the prior year;
Adjusted EPS of $(0.45) vs. $(0.35) in the prior year
- Opened four greenfield locations in the second quarter (five total
in fiscal 2019 to-date)
HERNDON, Va.--(BUSINESS WIRE)--May 7, 2019--
Beacon Roofing Supply, Inc. (Nasdaq:BECN) (“Beacon” or the “Company”)
announced results today for its second quarter and six-month period
ended March 31, 2019 (“2019”).
Paul Isabella, the Company's President and Chief Executive Officer,
stated: “We produced positive organic sales growth, highlighted by a
daily sales increase of nearly 5% in residential roofing, despite the
harsh weather adversely impacting quarterly demand (as noted in our
March 25 press release). In an effort to help mitigate the challenging
weather patterns, we were able to implement more aggressive late-quarter
cost controls to match the unusually soft seasonal environment. We once
again exhibited attractive price-cost performance in the second quarter,
as we have done in each of the past four quarters. Importantly, the
winter is now behind us and existing market sales accelerated the last
several weeks of March, and that momentum has continued into April.
Through key initiatives, including digital, private label, and
complementary products, coupled with new branch openings, we are
continuing to expand our competitive advantage in the marketplace. We
remain firmly committed to reaching our long-term sales and margin
objectives.”
Second Quarter
Net sales increased 0.2% to $1.43 billion in 2019, a level similar to
2018. Residential roofing product sales increased 2.9%, non-residential
roofing product sales decreased 5.7% and complementary product sales
increased 1.1% over the prior year. Existing markets net sales decreased
0.4% compared to the prior year period, primarily due to weather related
events; however, sales by business day increased by 1.2% compared to the
prior year period. The second quarter of fiscal years 2019 and 2018 had
63 and 64 business days, respectively.
Net income (loss) attributable to common shareholders was $(74.1)
million, compared to $(72.7) million in 2018. Net income (loss) per
share (“EPS”) was $(1.08), compared to $(1.07) in 2018. Second quarter
results were positively impacted by strong sales in geographies less
impacted by the unfavorable weather and lower operating expense. Second
quarter results were negatively impacted by lower gross margins.
Adjusted Net Income (Loss) was $(30.9) million, compared to $(23.5)
million in 2018. Adjusted EPS was $(0.45), compared to $(0.35) in 2018.
Adjusted EBITDA was $27.4 million, compared to $31.7 million in 2018.
(Please see the included financial tables for a reconciliation of
“Adjusted” financial measures to the most directly comparable GAAP
financial measures as well as further detail on the components driving
the net changes over the comparative periods).
Six Months
Net sales increased 23.7% to $3.15 billion, up from $2.55 billion in the
comparative 2018 period. Residential roofing product sales increased
13.5%, non-residential roofing product sales increased 10.7% and
complementary product sales increased 52.0% over the prior year.
Existing markets net sales increased 0.8% compared to the prior year
period, primarily due to price gains across all product lines. The first
six months of fiscal years 2019 and 2018 each had 125 business days.
Net income (loss) attributable to common shareholders was $(81.0)
million, compared to $(5.1) million in 2018. Net income (loss) per share
(“EPS”) was $(1.18), compared to $(0.07) in 2018. The six-month results
were positively impacted by price gains across all product lines and
improved gross margin performance. The six-month results were negatively
impacted by higher operating expenses and increase in interest expense
and preferred dividend payments that were both related to the
acquisition of Allied. In addition, 2018 results include a $48.0 million
non-recurring net tax benefit resulting from the enactment of the Tax
Cuts and Jobs Act of 2017.
Adjusted Net Income (Loss) was $9.6 million, compared to $23.2 million
in 2018. Adjusted EPS was $0.14, compared to $0.34 in 2018. Adjusted
EBITDA was $149.1 million, compared to $117.6 million in 2018. (Please
see the included financial tables for a reconciliation of “Adjusted”
financial measures to the most directly comparable GAAP financial
measures as well as further detail on the components driving the net
changes over the comparative periods).
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 Second Quarter 2019 Earnings Conference Call
|
|
|
|
|
|
When
|
|
Tuesday, May 7, 2019
|
|
|
|
|
|
Time:
|
|
5:00 p.m. ET
|
|
|
|
|
|
Webcast:
|
|
http://ir.beaconroofingsupply.com/events.cfm
(live and replay)
|
|
|
|
|
|
Live Call:
|
|
720-634-9063; Conf. ID #6843668
|
|
|
|
|
|
|
|
|
To assure timely access, conference call participants should dial in
prior to the 5:00 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.
|
|
| BEACON ROOFING SUPPLY, INC. |
| Consolidated Statements of Operations |
| (Unaudited; In thousands, except share and per share amounts) |
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
Six Months Ended March 31, |
|
|
2019 |
|
% of
Net
Sales
|
|
2018 |
|
% of
Net
Sales
|
|
2019 |
|
% of
Net
Sales
|
|
2018 |
|
% of
Net
Sales
|
|
Net sales
|
|
$
|
1,429,037
|
|
|
|
100.0
|
%
|
|
$
|
1,425,625
|
|
|
|
100.0
|
%
|
|
$
|
3,150,713
|
|
|
|
100.0
|
%
|
|
$
|
2,547,604
|
|
|
|
100.0
|
%
|
|
Cost of products sold
|
|
|
1,094,049
|
|
|
|
76.6
|
%
|
|
|
1,087,248
|
|
|
|
76.3
|
%
|
|
|
2,380,156
|
|
|
|
75.5
|
%
|
|
|
1,939,474
|
|
|
|
76.1
|
%
|
|
Gross profit
|
|
|
334,988
|
|
|
|
23.4
|
%
|
|
|
338,377
|
|
|
|
23.7
|
%
|
|
|
770,557
|
|
|
|
24.5
|
%
|
|
|
608,130
|
|
|
|
23.9
|
%
|
|
Operating expense1:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
320,408
|
|
|
|
22.4
|
%
|
|
|
341,587
|
|
|
|
24.0
|
%
|
|
|
648,101
|
|
|
|
20.6
|
%
|
|
|
535,340
|
|
|
|
21.0
|
%
|
|
Depreciation
|
|
|
17,447
|
|
|
|
1.2
|
%
|
|
|
17,120
|
|
|
|
1.2
|
%
|
|
|
35,048
|
|
|
|
1.1
|
%
|
|
|
25,829
|
|
|
|
1.0
|
%
|
|
Amortization
|
|
|
51,763
|
|
|
|
3.6
|
%
|
|
|
37,068
|
|
|
|
2.6
|
%
|
|
|
103,784
|
|
|
|
3.3
|
%
|
|
|
55,263
|
|
|
|
2.2
|
%
|
|
Total operating expense
|
|
|
389,618
|
|
|
|
27.2
|
%
|
|
|
395,775
|
|
|
|
27.8
|
%
|
|
|
786,933
|
|
|
|
25.0
|
%
|
|
|
616,432
|
|
|
|
24.2
|
%
|
|
Income (loss) from operations
|
|
|
(54,630
|
)
|
|
|
(3.8
|
%)
|
|
|
(57,398
|
)
|
|
|
(4.1
|
%)
|
|
|
(16,376
|
)
|
|
|
(0.5
|
%)
|
|
|
(8,302
|
)
|
|
|
(0.3
|
%)
|
|
Interest expense, financing costs, and other2 |
|
|
40,452
|
|
|
|
2.8
|
%
|
|
|
39,570
|
|
|
|
2.8
|
%
|
|
|
78,813
|
|
|
|
2.5
|
%
|
|
|
62,138
|
|
|
|
2.4
|
%
|
|
Income (loss) before provision for income taxes
|
|
|
(95,082
|
)
|
|
|
(6.6
|
%)
|
|
|
(96,968
|
)
|
|
|
(6.9
|
%)
|
|
|
(95,189
|
)
|
|
|
(3.0
|
%)
|
|
|
(70,440
|
)
|
|
|
(2.7
|
%)
|
|
Provision for (benefit from) income taxes
|
|
|
(26,996
|
)
|
|
|
(1.8
|
%)
|
|
|
(30,313
|
)
|
|
|
(2.2
|
%)
|
|
|
(26,210
|
)
|
|
|
(0.8
|
%)
|
|
|
(71,381
|
)
|
|
|
(2.7
|
%)
|
|
Net income (loss)
|
|
|
(68,086
|
)
|
|
|
(4.8
|
%)
|
|
|
(66,655
|
)
|
|
|
(4.7
|
%)
|
|
|
(68,979
|
)
|
|
|
(2.2
|
%)
|
|
|
941
|
|
|
|
0.0
|
%
|
|
Dividends on preferred shares3 |
|
|
6,000
|
|
|
|
0.4
|
%
|
|
|
6,000
|
|
|
|
0.4
|
%
|
|
|
12,000
|
|
|
|
0.4
|
%
|
|
|
6,000
|
|
|
|
0.2
|
%
|
|
Net income (loss) attributable to common shareholders
|
|
$
|
(74,086
|
)
|
|
|
(5.2
|
%)
|
|
$
|
(72,655
|
)
|
|
|
(5.1
|
%)
|
|
$
|
(80,979
|
)
|
|
|
(2.6
|
%)
|
|
$
|
(5,059
|
)
|
|
|
(0.2
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common stock outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
68,451,920
|
|
|
|
|
|
|
|
68,019,300
|
|
|
|
|
|
|
|
68,348,850
|
|
|
|
|
|
|
|
67,922,276
|
|
|
|
|
|
|
Diluted
|
|
|
68,451,920
|
|
|
|
|
|
|
|
68,019,300
|
|
|
|
|
|
|
|
68,348,850
|
|
|
|
|
|
|
|
67,922,276
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share4:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(1.08
|
)
|
|
|
|
|
|
$
|
(1.07
|
)
|
|
|
|
|
|
$
|
(1.18
|
)
|
|
|
|
|
|
$
|
(0.07
|
)
|
|
|
|
|
|
Diluted
|
|
$
|
(1.08
|
)
|
|
|
|
|
|
$
|
(1.07
|
)
|
|
|
|
|
|
$
|
(1.18
|
)
|
|
|
|
|
|
$
|
(0.07
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
______________________________________________
|
|
1
|
|
Operating expense for the three months ended March 31, 2019 and 2018
includes non-recurring acquisition costs of $6.7 million ($4.7
million, net of taxes) and $28.3 million ($20.0 million, net of
taxes), respectively. Operating expense for the six months ended
March 31, 2019 and 2018 includes non-recurring acquisition costs of
$15.6 million ($11.4 million, net of taxes) and $33.9 million ($23.9
million, net of taxes), respectively.
|
|
|
|
| 2 |
|
Interest expense, financing costs, and other for the three months
ended March 31, 2019 and 2018 includes non-recurring acquisition
costs of $3.0 million ($2.2 million, net of taxes) and $6.3 million
($4.5 million, net of taxes), respectively. Interest expense,
financing costs, and other for the six months ended March 31, 2019
and 2018 includes non-recurring acquisition costs of $6.1 million
($4.4 million, net of taxes) and $18.6 million ($13.2 million, net
of taxes), respectively.
|
|
|
|
| 3 |
|
Amounts for the three months ended March 31, 2019 and the three and
six months ended March 31, 2018 are composed of $5.0 million in
undeclared cumulative Preferred Stock dividends, as well as an
additional $1.0 million of Preferred Stock dividends that had been
declared and paid as of period end. Six months ended March 31, 2019
amount is composed of $5.0 million in undeclared cumulative
Preferred Stock dividends, as well as an additional $7.0 million of
Preferred Stock dividends that had been declared and paid as of
period end.
|
|
|
|
| 4 |
|
Basic net income (loss) per share is calculated by dividing net
income (loss) attributable to common shareholders by the
weighted-average number of common shares outstanding during the
period, without consideration for common share equivalents or the
conversion of Preferred Stock. Common share equivalents consist of
the incremental common shares issuable upon the exercise of stock
options and vesting of restricted stock unit awards. Diluted net
income (loss) per common share is calculated by dividing net income
(loss) attributable to common shareholders by the fully diluted
weighted-average number of common shares outstanding during the
period. The following table presents the components and calculations
of basic and diluted net income (loss) per share for each period
presented (in thousands, except share and per share amounts):
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
Six Months Ended March 31, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Net income (loss)
|
|
$
|
(68,086
|
)
|
|
$
|
(66,655
|
)
|
|
$
|
(68,979
|
)
|
|
$
|
941
|
|
|
Dividends on preferred shares
|
|
|
6,000
|
|
|
|
6,000
|
|
|
|
12,000
|
|
|
|
6,000
|
|
|
Net income (loss) attributable to common shareholders
|
|
$
|
(74,086
|
)
|
|
$
|
(72,655
|
)
|
|
$
|
(80,979
|
)
|
|
$
|
(5,059
|
)
|
|
Undistributed income allocated to participating securities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Net income (loss) attributable to common shareholders - basic and
diluted
|
|
$
|
(74,086
|
)
|
|
$
|
(72,655
|
)
|
|
$
|
(80,979
|
)
|
|
$
|
(5,059
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding - basic
|
|
|
68,451,920
|
|
|
|
68,019,300
|
|
|
|
68,348,850
|
|
|
|
67,922,276
|
|
|
Effect of common share equivalents
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Weighted-average common shares outstanding - diluted
|
|
|
68,451,920
|
|
|
|
68,019,300
|
|
|
|
68,348,850
|
|
|
|
67,922,276
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share - basic
|
|
$
|
(1.08
|
)
|
|
$
|
(1.07
|
)
|
|
$
|
(1.18
|
)
|
|
$
|
(0.07
|
)
|
|
Net income (loss) per share - diluted
|
|
$
|
(1.08
|
)
|
|
$
|
(1.07
|
)
|
|
$
|
(1.18
|
)
|
|
$
|
(0.07
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| BEACON ROOFING SUPPLY, INC. |
| Consolidated Balance Sheets |
| (Unaudited; In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
September 30, |
|
March 31, |
|
|
2019 |
|
2018 |
|
2018 |
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
645
|
|
|
$
|
129,927
|
|
|
$
|
16,000
|
|
|
Accounts receivable, net
|
|
|
869,760
|
|
|
|
1,090,533
|
|
|
|
832,823
|
|
|
Inventories, net
|
|
|
1,031,183
|
|
|
|
936,047
|
|
|
|
1,005,577
|
|
|
Prepaid expenses and other current assets
|
|
|
332,100
|
|
|
|
244,360
|
|
|
|
240,315
|
|
|
Total current assets
|
|
|
2,233,688
|
|
|
|
2,400,867
|
|
|
|
2,094,715
|
|
|
Property and equipment, net
|
|
|
271,022
|
|
|
|
280,407
|
|
|
|
294,222
|
|
|
Goodwill
|
|
|
2,490,326
|
|
|
|
2,491,779
|
|
|
|
2,381,620
|
|
|
Intangibles, net
|
|
|
1,229,949
|
|
|
|
1,334,366
|
|
|
|
1,410,302
|
|
|
Other assets, net
|
|
|
1,243
|
|
|
|
1,243
|
|
|
|
1,511
|
|
|
Total assets
|
|
$
|
6,226,228
|
|
|
$
|
6,508,662
|
|
|
$
|
6,182,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
510,434
|
|
|
$
|
880,872
|
|
|
$
|
593,559
|
|
|
Accrued expenses
|
|
|
453,889
|
|
|
|
611,539
|
|
|
|
348,050
|
|
|
Current portions of long-term debt/obligations
|
|
|
19,988
|
|
|
|
19,661
|
|
|
|
19,597
|
|
|
Total current liabilities
|
|
|
984,311
|
|
|
|
1,512,072
|
|
|
|
961,206
|
|
|
Borrowings under revolving lines of credit, net
|
|
|
416,614
|
|
|
|
92,442
|
|
|
|
424,528
|
|
|
Long-term debt, net
|
|
|
2,494,673
|
|
|
|
2,494,725
|
|
|
|
2,493,889
|
|
|
Deferred income taxes, net
|
|
|
110,064
|
|
|
|
106,994
|
|
|
|
91,101
|
|
|
Long-term obligations under equipment financing and other, net
|
|
|
8,527
|
|
|
|
13,639
|
|
|
|
18,313
|
|
|
Other long-term liabilities
|
|
|
5,702
|
|
|
|
5,290
|
|
|
|
10,617
|
|
|
Total liabilities
|
|
|
4,019,891
|
|
|
|
4,225,162
|
|
|
|
3,999,654
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible preferred stock
|
|
|
399,195
|
|
|
|
399,195
|
|
|
|
399,195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
684
|
|
|
|
681
|
|
|
|
680
|
|
|
Undesignated preferred stock
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Additional paid-in capital
|
|
|
1,073,243
|
|
|
|
1,067,040
|
|
|
|
1,056,248
|
|
|
Retained earnings
|
|
|
752,855
|
|
|
|
833,834
|
|
|
|
743,127
|
|
|
Accumulated other comprehensive income (loss)
|
|
|
(19,640
|
)
|
|
|
(17,250
|
)
|
|
|
(16,534
|
)
|
|
Total stockholders' equity
|
|
|
1,807,142
|
|
|
|
1,884,305
|
|
|
|
1,783,521
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
6,226,228
|
|
|
$
|
6,508,662
|
|
|
$
|
6,182,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| BEACON ROOFING SUPPLY, INC. |
| Consolidated Statements of Cash Flows |
| (Unaudited; In thousands) |
|
|
|
|
Six Months Ended March 31, |
|
2019 |
|
2018 |
| Operating Activities |
|
|
|
|
|
|
|
|
Net income (loss)
|
$
|
(68,979
|
)
|
|
$
|
941
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
138,832
|
|
|
|
81,092
|
|
|
Stock-based compensation
|
|
8,264
|
|
|
|
7,835
|
|
|
Certain interest expense and other financing costs
|
|
6,051
|
|
|
|
3,987
|
|
|
Beneficial lease amortization
|
|
1,145
|
|
|
|
-
|
|
|
Loss on debt extinguishment
|
|
-
|
|
|
|
1,725
|
|
|
Gain on sale of fixed assets
|
|
(1,172
|
)
|
|
|
(319
|
)
|
|
Deferred income taxes
|
|
3,086
|
|
|
|
(47,260
|
)
|
|
Changes in operating assets and liabilities, net of the effects of
businesses acquired in the period:
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
219,740
|
|
|
|
186,170
|
|
|
Inventories
|
|
(96,052
|
)
|
|
|
(131,789
|
)
|
|
Prepaid expenses and other assets
|
|
(85,320
|
)
|
|
|
67,425
|
|
|
Accounts payable and accrued expenses
|
|
(368,154
|
)
|
|
|
(130,695
|
)
|
|
Other liabilities
|
|
415
|
|
|
|
854
|
|
|
Net cash provided by (used in) operating activities
|
|
(242,144
|
)
|
|
|
39,966
|
|
|
|
|
|
|
|
|
|
| Investing Activities |
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
(26,320
|
)
|
|
|
(24,833
|
)
|
|
Acquisition of businesses, net
|
|
(163,973
|
)
|
|
|
(2,726,561
|
)
|
|
Proceeds from the sale of assets
|
|
1,428
|
|
|
|
413
|
|
|
Net cash provided by (used in) investing activities
|
|
(188,865
|
)
|
|
|
(2,750,981
|
)
|
|
|
|
|
|
|
|
|
| Financing Activities |
|
|
|
|
|
|
|
|
Borrowings under revolving lines of credit
|
|
1,880,684
|
|
|
|
1,530,667
|
|
|
Repayments under revolving lines of credit
|
|
(1,557,615
|
)
|
|
|
(1,097,463
|
)
|
|
Borrowings under term loan
|
|
-
|
|
|
|
970,000
|
|
|
Repayments under term loan
|
|
(4,850
|
)
|
|
|
(441,000
|
)
|
|
Borrowings under senior notes
|
|
-
|
|
|
|
1,300,000
|
|
|
Payment of debt issuance costs
|
|
-
|
|
|
|
(67,723
|
)
|
|
Repayments under equipment financing facilities and other
|
|
(2,642
|
)
|
|
|
(5,643
|
)
|
|
Proceeds from issuance of convertible preferred stock
|
|
-
|
|
|
|
400,000
|
|
|
Payment of stock issuance costs
|
|
-
|
|
|
|
(1,279
|
)
|
|
Payment of dividends on preferred stock
|
|
(12,000
|
)
|
|
|
(978
|
)
|
|
Proceeds from issuance of common stock related to equity awards
|
|
1,559
|
|
|
|
5,317
|
|
|
Taxes paid related to net share settlement of equity awards
|
|
(3,617
|
)
|
|
|
(3,933
|
)
|
|
Net cash provided by (used in) financing activities
|
|
301,519
|
|
|
|
2,587,965
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
208
|
|
|
|
800
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
(129,282
|
)
|
|
|
(122,250
|
)
|
|
Cash and cash equivalents, beginning of period
|
|
129,927
|
|
|
|
138,250
|
|
|
Cash and cash equivalents, end of period
|
$
|
645
|
|
|
$
|
16,000
|
|
|
|
|
|
|
|
|
|
|
|
| BEACON ROOFING SUPPLY, INC. |
| Consolidated Sales by Product Line |
| (Unaudited; In thousands) |
|
|
| Consolidated Sales by Product Line |
|
|
Three Months Ended March 31, |
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
Change |
|
|
Net Sales |
|
Mix % |
|
Net Sales |
|
Mix % |
|
$ |
|
% |
|
Residential roofing products
|
|
$
|
598,917
|
|
|
|
42.0
|
%
|
|
$
|
581,834
|
|
|
|
40.8
|
%
|
|
$
|
17,083
|
|
|
|
2.9
|
%
|
|
Non-residential roofing products
|
|
|
313,626
|
|
|
|
21.9
|
%
|
|
|
332,690
|
|
|
|
23.3
|
%
|
|
|
(19,064
|
)
|
|
|
(5.7
|
%)
|
|
Complementary building products
|
|
|
516,494
|
|
|
|
36.1
|
%
|
|
|
511,101
|
|
|
|
35.9
|
%
|
|
|
5,393
|
|
|
|
1.1
|
%
|
|
|
$
|
1,429,037
|
|
|
|
100.0
|
%
|
|
$
|
1,425,625
|
|
|
|
100.0
|
%
|
|
$
|
3,412
|
|
|
|
0.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Existing Market1 Sales by Product Line |
|
|
Three Months Ended March 31, |
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
Change |
|
|
Net Sales |
|
Mix % |
|
Net Sales |
|
Mix % |
|
$ |
|
% |
|
Residential roofing products
|
|
$
|
598,795
|
|
|
|
42.2
|
%
|
|
$
|
581,834
|
|
|
|
40.9
|
%
|
|
$
|
16,961
|
|
|
|
2.9
|
%
|
|
Non-residential roofing products
|
|
|
313,591
|
|
|
|
22.1
|
%
|
|
|
332,651
|
|
|
|
23.3
|
%
|
|
|
(19,060
|
)
|
|
|
(5.7
|
%)
|
|
Complementary building products
|
|
|
506,602
|
|
|
|
35.7
|
%
|
|
|
510,622
|
|
|
|
35.8
|
%
|
|
|
(4,020
|
)
|
|
|
(0.8
|
%)
|
|
|
$
|
1,418,988
|
|
|
|
100.0
|
%
|
|
$
|
1,425,107
|
|
|
|
100.0
|
%
|
|
$
|
(6,119
|
)
|
|
|
(0.4
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Existing Market1 Sales By Business Day2 |
|
|
Three Months Ended March 31, |
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
Change |
|
|
Net Sales |
|
Mix % |
|
Net Sales |
|
Mix % |
|
$ |
|
% |
|
Residential roofing products
|
|
$
|
9,505
|
|
|
|
42.2
|
%
|
|
$
|
9,091
|
|
|
|
40.9
|
%
|
|
$
|
414
|
|
|
|
4.6
|
%
|
|
Non-residential roofing products
|
|
|
4,978
|
|
|
|
22.1
|
%
|
|
|
5,198
|
|
|
|
23.3
|
%
|
|
|
(220
|
)
|
|
|
(4.2
|
%)
|
|
Complementary building products
|
|
|
8,041
|
|
|
|
35.7
|
%
|
|
|
7,978
|
|
|
|
35.8
|
%
|
|
|
63
|
|
|
|
0.8
|
%
|
|
|
$
|
22,524
|
|
|
|
100.0
|
%
|
|
$
|
22,267
|
|
|
|
100.0
|
%
|
|
$
|
257
|
|
|
|
1.2
|
%
|
|
__________________________________________________
|
| 1 |
|
Excludes acquired branches that have not been under ownership for at
least four fiscal quarters prior to the start of the second quarter
of fiscal year 2019.
|
|
|
|
| 2 |
|
There were 63 and 64 business days in the quarters ended March 31,
2019 and 2018, respectively.
|
|
|
|
|
|
| BEACON ROOFING SUPPLY, INC. |
| Consolidated Sales by Product Line |
| (Unaudited; In thousands) |
|
|
| Consolidated Sales by Product Line |
|
|
Six Months Ended March 31, |
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
|
Change |
|
|
Net Sales |
|
Mix % |
|
Net Sales |
|
Mix % |
|
$ |
|
% |
|
Residential roofing products
|
|
$
|
1,323,780
|
|
|
|
42.0
|
%
|
|
$
|
1,166,361
|
|
|
|
45.8
|
%
|
|
$
|
157,419
|
|
|
|
13.5
|
%
|
|
Non-residential roofing products
|
|
|
729,939
|
|
|
|
23.2
|
%
|
|
|
659,431
|
|
|
|
25.9
|
%
|
|
|
70,508
|
|
|
|
10.7
|
%
|
|
Complementary building products
|
|
|
1,096,994
|
|
|
|
34.8
|
%
|
|
|
721,812
|
|
|
|
28.3
|
%
|
|
|
375,182
|
|
|
|
52.0
|
%
|
|
|
$
|
3,150,713
|
|
|
|
100.0
|
%
|
|
$
|
2,547,604
|
|
|
|
100.0
|
%
|
|
$
|
603,109
|
|
|
|
23.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Existing Market1 Sales by Product Line |
|
|
Six Months Ended March 31, |
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
Change |
|
|
Net Sales |
|
Mix % |
|
Net Sales |
|
Mix % |
|
$ |
|
% |
|
Residential roofing products
|
|
$
|
971,124
|
|
|
|
52.7
|
%
|
|
$
|
945,947
|
|
|
|
51.8
|
%
|
|
$
|
25,177
|
|
|
|
2.7
|
%
|
|
Non-residential roofing products
|
|
|
524,728
|
|
|
|
28.5
|
%
|
|
|
531,956
|
|
|
|
29.1
|
%
|
|
|
(7,228
|
)
|
|
|
(1.4
|
%)
|
|
Complementary building products
|
|
|
345,553
|
|
|
|
18.8
|
%
|
|
|
348,509
|
|
|
|
19.1
|
%
|
|
|
(2,956
|
)
|
|
|
(0.8
|
%)
|
|
|
$
|
1,841,405
|
|
|
|
100.0
|
%
|
|
$
|
1,826,412
|
|
|
|
100.0
|
%
|
|
$
|
14,993
|
|
|
|
0.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Existing Market1 Sales By Business Day2 |
|
|
Six Months Ended March 31, |
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
Change |
|
|
Net Sales |
|
Mix % |
|
Net Sales |
|
Mix % |
|
$ |
|
% |
|
Residential roofing products
|
|
$
|
7,769
|
|
|
|
52.7
|
%
|
|
$
|
7,568
|
|
|
|
51.8
|
%
|
|
$
|
201
|
|
|
|
2.7
|
%
|
|
Non-residential roofing products
|
|
|
4,198
|
|
|
|
28.5
|
%
|
|
|
4,256
|
|
|
|
29.1
|
%
|
|
|
(58
|
)
|
|
|
(1.4
|
%)
|
|
Complementary building products
|
|
|
2,764
|
|
|
|
18.8
|
%
|
|
|
2,788
|
|
|
|
19.1
|
%
|
|
|
(24
|
)
|
|
|
(0.8
|
%)
|
|
|
$
|
14,731
|
|
|
|
100.0
|
%
|
|
$
|
14,612
|
|
|
|
100.0
|
%
|
|
$
|
119
|
|
|
|
0.8
|
%
|
|
__________________________________________________
|
|
1
|
|
Excludes acquired branches that have not been under ownership for
at least four fiscal quarters prior to the start of fiscal year
2019.
|
|
|
|
|
2
|
|
There were 125 business days in each of the six month periods
ended March 31, 2019 and 2018.
|
|
|
|
|
|
| BEACON ROOFING SUPPLY, INC. |
|
Adjusted Net Income (Loss) and Adjusted EPS1
|
| (Unaudited; In thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
Six Months Ended March 31, |
|
|
2019 |
|
2018 |
|
|
2019 |
|
2018 |
|
|
Amount |
|
Per
Share2
|
|
Amount |
|
Per
Share2
|
|
Amount |
|
Per
Share3
|
|
Amount |
|
Per
Share3
|
|
Net income (loss)
|
|
$
|
(68,086
|
)
|
|
$
|
(0.99
|
)
|
|
$
|
(66,655
|
)
|
|
$
|
(0.98
|
)
|
|
$
|
(68,979
|
)
|
|
$
|
(1.01
|
)
|
|
$
|
941
|
|
|
$
|
0.01
|
|
|
Dividends on preferred shares
|
|
|
6,000
|
|
|
|
0.09
|
|
|
|
6,000
|
|
|
|
0.09
|
|
|
|
12,000
|
|
|
|
0.18
|
|
|
|
6,000
|
|
|
|
0.08
|
|
|
Net income (loss) attributable to common shareholders
|
|
$
|
(74,086
|
)
|
|
$
|
(1.08
|
)
|
|
$
|
(72,655
|
)
|
|
$
|
(1.07
|
)
|
|
$
|
(80,979
|
)
|
|
$
|
(1.18
|
)
|
|
$
|
(5,059
|
)
|
|
$
|
(0.07
|
)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition costs4 |
|
|
43,664
|
|
|
|
0.64
|
|
|
|
50,604
|
|
|
|
0.74
|
|
|
|
91,057
|
|
|
|
1.33
|
|
|
|
76,237
|
|
|
|
1.12
|
|
|
Effects of tax reform5 |
|
|
(462
|
)
|
|
|
(0.01
|
)
|
|
|
(1,491
|
)
|
|
|
(0.02
|
)
|
|
|
(462
|
)
|
|
|
(0.01
|
)
|
|
|
(47,983
|
)
|
|
|
(0.71
|
)
|
|
Adjusted Net Income (Loss)
|
|
$
|
(30,884
|
)
|
|
$
|
(0.45
|
)
|
|
$
|
(23,542
|
)
|
|
$
|
(0.35
|
)
|
|
$
|
9,616
|
|
|
$
|
0.14
|
|
|
$
|
23,195
|
|
|
$
|
0.34
|
|
|
____________________________________________
|
|
1
|
|
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.
|
|
|
|
|
2
|
|
The weighted-average share count utilized in the calculation of
Adjusted EPS for the three months ended March 31, 2019 is
68,451,920. The weighted-average share count utilized in the
calculation of Adjusted EPS for the three months ended March 31,
2018 is 68,019,300.
|
|
|
|
|
3
|
|
The weighted-average share count utilized in the calculation of
Adjusted EPS for the six months ended March 31, 2019 is
68,348,850. The weighted-average share count utilized in the
calculation of Adjusted EPS for the six months ended March 31,
2018 is 67,922,276.
|
|
|
|
|
4
|
|
Three months ended March 31, 2019 amount is composed of $9.7
million of non-recurring acquisition costs ($6.9 million, net of
tax) and $51.8 million of amortization expense related to
intangibles ($36.8 million, net of tax). Three months ended March
31, 2018 amount is composed of $34.6 million of non-recurring
acquisition costs ($24.4 million, net of tax) and $37.1 million of
amortization expense related to intangibles ($26.2 million, net of
tax). Six months ended March 31, 2019 amount is composed of $21.7
million of non-recurring acquisition costs ($15.7 million, net of
tax) and $103.8 million of amortization expense related to
intangibles ($75.3 million, net of tax). Six months ended March
31, 2018 amount is composed of $52.5 million of non-recurring
acquisition costs ($37.1 million, net of tax) and $55.3 million of
amortization expense related to intangibles ($39.1 million, net of
tax).
|
|
|
|
|
5
|
|
Impact of the Tax Cuts and Jobs Act of 2017.
|
|
|
|
|
|
|
| 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. |
|
|
|
|
| BEACON ROOFING SUPPLY, INC. |
|
Adjusted EBITDA1
|
| (Unaudited; In thousands) |
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
Six Months Ended March 31, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Net income (loss)
|
|
$
|
(68,086
|
)
|
|
$
|
(66,655
|
)
|
|
$
|
(68,979
|
)
|
|
$
|
941
|
|
|
Acquisition costs2 |
|
|
6,687
|
|
|
|
28,301
|
|
|
|
15,605
|
|
|
|
33,870
|
|
|
Interest expense, net
|
|
|
41,815
|
|
|
|
41,763
|
|
|
|
81,631
|
|
|
|
65,279
|
|
|
Income taxes
|
|
|
(26,996
|
)
|
|
|
(30,313
|
)
|
|
|
(26,210
|
)
|
|
|
(71,381
|
)
|
|
Depreciation and amortization
|
|
|
69,210
|
|
|
|
54,188
|
|
|
|
138,832
|
|
|
|
81,092
|
|
|
Stock-based compensation
|
|
|
4,807
|
|
|
|
4,376
|
|
|
|
8,264
|
|
|
|
7,835
|
|
|
Adjusted EBITDA
|
|
$
|
27,437
|
|
|
$
|
31,660
|
|
|
$
|
149,143
|
|
|
$
|
117,636
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA as a % of net sales
|
|
|
1.9
|
%
|
|
|
2.2
|
%
|
|
|
4.7
|
%
|
|
|
4.6
|
%
|
|
__________________________________________________
|
|
1
|
|
Adjusted EBITDA is defined as net income plus interest expense
(net of interest income), income taxes, depreciation and
amortization, stock-based compensation, non-recurring acquisition
costs, and business restructuring costs. EBITDA is a measure
commonly used in the distribution industry, and we present
Adjusted EBITDA to enhance your understanding of our operating
performance.
|
|
|
|
|
2
|
|
Represents non-recurring acquisition costs (excluding the impact
of tax) that are included in operating expense and not embedded in
other balances of the table.
|
|
|
|
|
|
|
| We use Adjusted EBITDA 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 EBITDA is a useful measure because it
permits 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 EBITDA is useful to investors when
evaluating our business, it is not prepared and presented in
accordance with United States Generally Accepted Accounting
Principles (“GAAP”), and therefore should be considered supplemental
in nature. Adjusted EBITDA should not be considered 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 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/20190507005945/en/
Source: Beacon Roofing Supply, Inc.
Beacon Roofing Supply, Inc.
Joseph Nowicki, Executive VP & CFO
571-323-3939
JNowicki@becn.com