Beacon Reports Fourth Quarter and Fiscal Year 2021 Results
Beacon reported record fiscal year 2021 results with net sales reaching $6.64 billion, a 12.3% increase from the previous year. The company achieved strong fourth quarter performance with net sales of $1.88 billion, a 6.9% year-over-year growth. Gross margins improved to 27.1%, driven by effective pricing strategies. Net income from continuing operations rose to $104.5 million in Q4, compared to $68.2 million in 2020. Additionally, the acquisition of Midway Sales & Distributing is expected to enhance Beacon's Midwest presence.
- Record fiscal year net sales of $6.64 billion, a 12.3% increase.
- Fourth quarter net sales reached $1.88 billion, a 6.9% year-over-year growth.
- Gross margin improved to 27.1%, reflecting effective pricing execution.
- Net income from continuing operations for Q4 increased to $104.5 million, up from $68.2 million in 2020.
- Acquisition of Midway Sales & Distributing expected to strengthen Midwest operations.
- None.
- Record fiscal year 2021 performance, highlighted by strong net sales, net income, and Adjusted EBITDA, as well as significant balance sheet strengthening
- Execution on strategic initiatives produced meaningful gains throughout fiscal year 2021, including increased contribution from branches in the bottom quintile of operating performance
- Record fourth quarter net sales, including year over year growth across all three lines of business
- Significant fourth quarter gross margin expansion, driven by continued price execution
- Record fourth quarter net income and Adjusted EBITDA, yielding a second consecutive quarter of mid-single digit net income margins and double digit Adjusted EBITDA margins
“In fiscal 2021, we demonstrated the strength of our platform by generating record top line and bottom line results, building a solid foundation for our future ambitions,” said
Fourth Quarter and Fiscal Year Financial Highlights
|
Q4 2021 |
|
Q4 2020 |
|
FY 2021 |
|
FY 2020 |
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(Unaudited; $ in millions, except per share amounts) |
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|
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Net sales |
$ |
1,875.4 |
|
|
$ |
1,755.0 |
|
|
$ |
6,642.0 |
|
|
$ |
5,916.7 |
|
Gross profit |
$ |
507.8 |
|
|
$ |
441.3 |
|
|
$ |
1,757.7 |
|
|
$ |
1,420.5 |
|
Gross margin % |
|
27.1 |
% |
|
|
25.1 |
% |
|
|
26.5 |
% |
|
|
24.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating expense |
$ |
349.7 |
|
|
$ |
324.9 |
|
|
$ |
1,300.9 |
|
|
$ |
1,385.5 |
|
% of net sales |
|
18.6 |
% |
|
|
18.5 |
% |
|
|
19.6 |
% |
|
|
23.4 |
% |
Adjusted Operating Expense1 |
$ |
320.6 |
|
|
$ |
291.9 |
|
|
$ |
1,183.3 |
|
|
$ |
1,107.5 |
|
% of net sales1 |
|
17.1 |
% |
|
|
16.6 |
% |
|
|
17.8 |
% |
|
|
18.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) from continuing operations |
$ |
104.5 |
|
|
$ |
68.2 |
|
|
$ |
221.2 |
|
|
$ |
(81.3 |
) |
% of net sales |
|
5.6 |
% |
|
|
3.9 |
% |
|
|
3.3 |
% |
|
|
(1.4 |
%) |
Adjusted Net Income (Loss)1 |
$ |
127.1 |
|
|
$ |
90.7 |
|
|
$ |
360.1 |
|
|
$ |
145.8 |
|
% of net sales1 |
|
6.8 |
% |
|
|
5.2 |
% |
|
|
5.4 |
% |
|
|
2.5 |
% |
Adjusted EBITDA1 |
$ |
208.1 |
|
|
$ |
169.0 |
|
|
$ |
654.7 |
|
|
$ |
398.6 |
|
% of net sales1 |
|
11.1 |
% |
|
|
9.6 |
% |
|
|
9.9 |
% |
|
|
6.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) from continuing operations per share — diluted ("EPS") |
$ |
1.21 |
|
|
$ |
0.78 |
|
|
$ |
2.75 |
|
|
$ |
(1.53 |
) |
| ___________________________ | ||
| 1. | Please see the included financial tables for a reconciliation of “Adjusted” non-GAAP financial measures to the most directly comparable GAAP financial measure, as well as further detail on the components driving the net changes over the comparative periods. |
|
Fourth Quarter
Net sales increased
Residential roofing product sales increased
Gross margin improved to
Net income (loss) from continuing operations was
Fiscal Year
Net sales increased
Gross margin improved to
Net income (loss) from continuing operations was
Recent Acquisition Activity
On
Please see the included financial tables for a reconciliation of “Adjusted” non-GAAP financial measures to the most directly comparable GAAP financial measure, as well as further detail on the components driving the net changes over the comparative periods.
Earnings Call
The Company will host a conference call and webcast today at
What: |
Beacon Fourth Quarter and Fiscal Year 2021 Earnings Call |
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When: |
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Time: |
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Access: |
Register for the conference call or webcast by visiting: |
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Upon registration, participants will receive an email containing event details and unique access codes. To ensure timely access, participants should register for the earnings call at least 10 minutes before the
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. In addition, oral statements made by our directors, officers and employees to the investor and analyst communities, media representatives and others, depending upon their nature, may also constitute forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historic or current facts and often use words such as “anticipate,” “estimate,” “expect,” “believe,” “will likely result,” “outlook,” “project” and other words and expressions of similar meaning. Investors are cautioned not to place undue reliance on forward-looking statements. 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 Form 10-K for the fiscal year ended
About Beacon
Founded in 1928, Beacon is a Fortune 500, publicly traded distributor of roofing materials and complementary building products in
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Consolidated Statements of Operations |
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(Unaudited; in millions, except per share amounts) |
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Three Months Ended |
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Year Ended |
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|
2021 |
|
% of
|
|
2020 |
|
% of
|
|
2021 |
|
% of
|
|
2020 |
|
% of
|
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Net sales |
$ |
1,875.4 |
|
|
|
100.0 |
% |
|
$ |
1,755.0 |
|
|
|
100.0 |
% |
|
$ |
6,642.0 |
|
|
|
100.0 |
% |
|
$ |
5,916.7 |
|
|
|
100.0 |
% |
|
Cost of products sold |
|
1,367.6 |
|
|
|
72.9 |
% |
|
|
1,313.7 |
|
|
|
74.9 |
% |
|
|
4,884.3 |
|
|
|
73.5 |
% |
|
|
4,496.2 |
|
|
|
76.0 |
% |
|
Gross profit |
|
507.8 |
|
|
|
27.1 |
% |
|
|
441.3 |
|
|
|
25.1 |
% |
|
|
1,757.7 |
|
|
|
26.5 |
% |
|
|
1,420.5 |
|
|
|
24.0 |
% |
|
Operating expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Selling, general and administrative |
|
309.4 |
|
|
|
16.5 |
% |
|
|
281.0 |
|
|
|
16.0 |
% |
|
|
1,138.7 |
|
|
|
17.1 |
% |
|
|
1,065.5 |
|
|
|
18.0 |
% |
|
Depreciation |
|
15.3 |
|
|
|
0.8 |
% |
|
|
13.7 |
|
|
|
0.8 |
% |
|
|
58.9 |
|
|
|
0.9 |
% |
|
|
58.1 |
|
|
|
1.0 |
% |
|
Amortization |
|
25.0 |
|
|
|
1.3 |
% |
|
|
30.2 |
|
|
|
1.7 |
% |
|
|
103.3 |
|
|
|
1.6 |
% |
|
|
261.9 |
|
|
|
4.4 |
% |
|
Total operating expense |
|
349.7 |
|
|
|
18.6 |
% |
|
|
324.9 |
|
|
|
18.5 |
% |
|
|
1,300.9 |
|
|
|
19.6 |
% |
|
|
1,385.5 |
|
|
|
23.4 |
% |
|
Income (loss) from operations |
|
158.1 |
|
|
|
8.5 |
% |
|
|
116.4 |
|
|
|
6.6 |
% |
|
|
456.8 |
|
|
|
6.9 |
% |
|
|
35.0 |
|
|
|
0.6 |
% |
|
Interest expense, financing costs, and other |
|
16.3 |
|
|
|
0.9 |
% |
|
|
31.3 |
|
|
|
1.8 |
% |
|
|
98.1 |
|
|
|
1.5 |
% |
|
|
128.6 |
|
|
|
2.2 |
% |
|
Loss on debt extinguishment |
|
— |
|
|
|
0.0 |
% |
|
|
— |
|
|
|
0.0 |
% |
|
|
60.2 |
|
|
|
0.9 |
% |
|
|
14.7 |
|
|
|
0.2 |
% |
|
Income (loss) from continuing operations before income taxes |
|
141.8 |
|
|
|
7.6 |
% |
|
|
85.1 |
|
|
|
4.8 |
% |
|
|
298.5 |
|
|
|
4.5 |
% |
|
|
(108.3 |
) |
|
|
(1.8 |
%) |
|
Provision for (benefit from) income taxes |
|
37.3 |
|
|
|
2.0 |
% |
|
|
16.9 |
|
|
|
0.9 |
% |
|
|
77.3 |
|
|
|
1.2 |
% |
|
|
(27.0 |
) |
|
|
(0.4 |
%) |
|
Net income (loss) from continuing operations |
|
104.5 |
|
|
|
5.6 |
% |
|
|
68.2 |
|
|
|
3.9 |
% |
|
|
221.2 |
|
|
|
3.3 |
% |
|
|
(81.3 |
) |
|
|
(1.4 |
%) |
|
Net income (loss) from discontinued operations1 |
|
0.3 |
|
|
|
0.0 |
% |
|
|
3.7 |
|
|
|
0.2 |
% |
|
|
(266.7 |
) |
|
|
(4.0 |
%) |
|
|
0.4 |
|
|
|
0.0 |
% |
|
Net income (loss) |
|
104.8 |
|
|
|
5.6 |
% |
|
|
71.9 |
|
|
|
4.1 |
% |
|
|
(45.5 |
) |
|
|
(0.7 |
%) |
|
|
(80.9 |
) |
|
|
(1.4 |
%) |
|
Dividends on Preferred Stock |
|
6.0 |
|
|
|
0.3 |
% |
|
|
6.0 |
|
|
|
0.3 |
% |
|
|
24.0 |
|
|
|
0.3 |
% |
|
|
24.0 |
|
|
|
0.4 |
% |
|
Net income (loss) attributable to common stockholders |
$ |
98.8 |
|
|
|
5.3 |
% |
|
$ |
65.9 |
|
|
|
3.8 |
% |
|
$ |
(69.5 |
) |
|
|
(1.0 |
%) |
|
$ |
(104.9 |
) |
|
|
(1.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Weighted-average common stock outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|||||||||
Basic |
|
69.9 |
|
|
|
|
|
|
68.9 |
|
|
|
|
|
|
69.7 |
|
|
|
|
|
|
68.8 |
|
|
|
|
|||||
Diluted2 |
|
71.3 |
|
|
|
|
|
|
69.6 |
|
|
|
|
|
|
80.5 |
|
|
|
|
|
|
68.8 |
|
|
|
|
|||||
|
|
|
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|
|
|
|
|
|
|
|
|
|
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Net income (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|||||||||
Basic - Continuing operations |
$ |
1.23 |
|
|
|
|
|
$ |
0.79 |
|
|
|
|
|
$ |
2.83 |
|
|
|
|
|
$ |
(1.53 |
) |
|
|
|
|||||
Basic - Discontinued operations |
|
0.01 |
|
|
|
|
|
|
0.05 |
|
|
|
|
|
|
(3.83 |
) |
|
|
|
|
|
0.01 |
|
|
|
|
|||||
Basic net income (loss) per share |
$ |
1.24 |
|
|
|
|
|
$ |
0.84 |
|
|
|
|
|
$ |
(1.00 |
) |
|
|
|
|
$ |
(1.52 |
) |
|
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|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Diluted - Continuing operations |
$ |
1.21 |
|
|
|
|
|
$ |
0.78 |
|
|
|
|
|
$ |
2.75 |
|
|
|
|
|
$ |
(1.53 |
) |
|
|
|
|||||
Diluted - Discontinued operations |
|
0.01 |
|
|
|
|
|
|
0.05 |
|
|
|
|
|
|
(3.32 |
) |
|
|
|
|
|
0.01 |
|
|
|
|
|||||
Diluted net income (loss) per share |
$ |
1.22 |
|
|
|
|
|
$ |
0.83 |
|
|
|
|
|
$ |
(0.57 |
) |
|
|
|
|
$ |
(1.52 |
) |
|
|
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____________________ |
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| 1. |
On |
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| 2. |
The hypothetical conversion of the Preferred Stock became dilutive for the year ended |
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||||||||
Consolidated Balance Sheets |
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(Unaudited; in millions) |
||||||||
|
|
|
|
|||||
|
2021 |
|
2020 |
|||||
Assets |
|
|
|
|
|
|||
Current assets: |
|
|
|
|
|
|||
Cash and cash equivalents |
$ |
260.0 |
|
|
$ |
624.6 |
|
|
Accounts receivable, net |
|
978.3 |
|
|
|
885.2 |
|
|
Inventories, net |
|
1,084.5 |
|
|
|
871.4 |
|
|
Prepaid expenses and other current assets |
|
345.9 |
|
|
|
351.8 |
|
|
Current assets held for sale |
|
— |
|
|
|
243.8 |
|
|
Total current assets |
|
2,668.7 |
|
|
|
2,976.8 |
|
|
Property and equipment, net |
|
236.6 |
|
|
|
207.8 |
|
|
|
|
1,760.9 |
|
|
|
1,756.1 |
|
|
Intangibles, net |
|
414.8 |
|
|
|
518.0 |
|
|
Operating lease assets |
|
399.2 |
|
|
|
376.2 |
|
|
Deferred income taxes, net |
|
64.5 |
|
|
|
— |
|
|
Other assets, net |
|
9.8 |
|
|
|
2.1 |
|
|
Non-current assets held for sale |
|
— |
|
|
|
1,120.5 |
|
|
Total assets |
$ |
5,554.5 |
|
|
$ |
6,957.5 |
|
|
|
|
|
|
|
|
|||
Liabilities and Stockholders' Equity |
|
|
|
|
|
|||
Current liabilities: |
|
|
|
|
|
|||
Accounts payable |
$ |
812.9 |
|
|
$ |
885.8 |
|
|
Accrued expenses |
|
546.7 |
|
|
|
507.3 |
|
|
Current operating lease liabilities |
|
88.5 |
|
|
|
84.0 |
|
|
Current finance lease liabilities |
|
5.0 |
|
|
|
2.4 |
|
|
Current portions of long-term debt/obligations |
|
10.0 |
|
|
|
12.3 |
|
|
Current liabilities held for sale |
|
— |
|
|
|
139.4 |
|
|
Total current liabilities |
|
1,463.1 |
|
|
|
1,631.2 |
|
|
Borrowings under revolving lines of credit, net |
|
— |
|
|
|
251.1 |
|
|
Long-term debt, net |
|
1,614.5 |
|
|
|
2,494.2 |
|
|
Deferred income taxes, net |
|
0.7 |
|
|
|
71.8 |
|
|
Non-current operating lease liabilities |
|
311.3 |
|
|
|
290.5 |
|
|
Non-current finance lease liabilities |
|
22.9 |
|
|
|
5.2 |
|
|
Non-current liabilities held for sale |
|
— |
|
|
|
53.4 |
|
|
Total liabilities |
|
3,412.5 |
|
|
|
4,797.4 |
|
|
|
|
|
|
|
|
|||
Convertible Preferred Stock |
|
399.2 |
|
|
|
399.2 |
|
|
|
|
|
|
|
|
|||
Stockholders' equity: |
|
|
|
|
|
|||
Common stock |
|
0.7 |
|
|
|
0.7 |
|
|
Undesignated preferred stock |
|
— |
|
|
|
— |
|
|
Additional paid-in capital |
|
1,145.0 |
|
|
|
1,100.6 |
|
|
Retained earnings |
|
620.5 |
|
|
|
694.3 |
|
|
Accumulated other comprehensive income (loss) |
|
(23.4 |
) |
|
|
(34.7 |
) |
|
Total stockholders' equity |
|
1,742.8 |
|
|
|
1,760.9 |
|
|
Total liabilities and stockholders' equity |
$ |
5,554.5 |
|
|
$ |
6,957.5 |
|
|
|
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Consolidated Statements of Cash Flows1 |
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(Unaudited; in millions) |
||||||||
|
Year Ended |
|||||||
|
2021 |
|
2020 |
|||||
Operating Activities |
|
|
|
|
|
|||
Net income (loss) |
$ |
(45.5 |
) |
|
$ |
(80.9 |
) |
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
|
|
|||
Depreciation and amortization |
|
175.2 |
|
|
|
391.1 |
|
|
Stock-based compensation |
|
22.6 |
|
|
|
17.2 |
|
|
Certain interest expense and other financing costs |
|
8.7 |
|
|
|
11.5 |
|
|
Loss on debt extinguishment |
|
60.2 |
|
|
|
14.7 |
|
|
Gain on sale of fixed assets and other |
|
(3.8 |
) |
|
|
(3.5 |
) |
|
Deferred income taxes |
|
(139.2 |
) |
|
|
(25.6 |
) |
|
Loss on sale of Interior Products |
|
360.6 |
|
|
|
— |
|
|
338(h)(10) election refund |
|
— |
|
|
|
(5.1 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|||
Accounts receivable |
|
(81.3 |
) |
|
|
78.4 |
|
|
Inventories |
|
(225.0 |
) |
|
|
73.4 |
|
|
Prepaid expenses and other current assets |
|
9.6 |
|
|
|
(73.6 |
) |
|
Accounts payable and accrued expenses |
|
(56.0 |
) |
|
|
72.2 |
|
|
Other assets and liabilities |
|
(8.1 |
) |
|
|
9.5 |
|
|
Net cash provided by (used in) operating activities |
|
78.0 |
|
|
|
479.3 |
|
|
|
|
|
|
|
|
|||
Investing Activities |
|
|
|
|
|
|||
Purchases of property and equipment |
|
(66.5 |
) |
|
|
(48.5 |
) |
|
Acquisition of businesses, net |
|
— |
|
|
|
5.1 |
|
|
Proceeds from sale of Interior Products |
|
836.0 |
|
|
|
— |
|
|
Proceeds from the sale of assets |
|
4.4 |
|
|
|
4.4 |
|
|
Net cash provided by (used in) investing activities |
|
773.9 |
|
|
|
(39.0 |
) |
|
|
|
|
|
|
|
|||
Financing Activities |
|
|
|
|
|
|||
Borrowings under revolving lines of credit |
|
252.3 |
|
|
|
2,038.0 |
|
|
Payments under revolving lines of credit |
|
(509.3 |
) |
|
|
(1,870.0 |
) |
|
Borrowings under term loan |
|
1,000.0 |
|
|
|
— |
|
|
Payments under term loan |
|
(948.3 |
) |
|
|
(9.7 |
) |
|
Borrowings under senior notes |
|
350.0 |
|
|
|
300.0 |
|
|
Payment under senior notes |
|
(1,300.0 |
) |
|
|
(309.6 |
) |
|
Payment of debt issuance costs |
|
(20.3 |
) |
|
|
(4.3 |
) |
|
Payment of call premium |
|
(31.7 |
) |
|
|
— |
|
|
Payments under equipment financing facilities and finance leases |
|
(6.5 |
) |
|
|
(8.6 |
) |
|
Payment of dividends on Preferred Stock |
|
(24.0 |
) |
|
|
(24.0 |
) |
|
Proceeds from issuance of common stock related to equity awards |
|
26.3 |
|
|
|
3.3 |
|
|
Payment of taxes related to net share settlement of equity awards |
|
(4.5 |
) |
|
|
(2.9 |
) |
|
Net cash provided by (used in) financing activities |
|
(1,216.0 |
) |
|
|
112.2 |
|
|
|
|
|
|
|
|
|||
Effect of exchange rate changes on cash and cash equivalents |
|
(0.5 |
) |
|
|
(0.2 |
) |
|
|
|
|
|
|
|
|||
Net increase (decrease) in cash and cash equivalents |
|
(364.6 |
) |
|
|
552.3 |
|
|
Cash and cash equivalents, beginning of period |
|
624.6 |
|
|
|
72.3 |
|
|
Cash and cash equivalents, end of period |
$ |
260.0 |
|
|
$ |
624.6 |
|
|
|
|
|
|
|
|
|||
Supplemental Cash Flow Information |
|
|
|
|
|
|||
Operating cash flows provided by (used in) discontinued operations |
$ |
(28.2 |
) |
|
$ |
84.9 |
|
|
Investing cash flows provided by (used in) discontinued operations |
$ |
(2.5 |
) |
|
$ |
(7.5 |
) |
|
Cash paid during the period for: |
|
|
|
|
|
|||
Interest |
$ |
120.0 |
|
|
$ |
130.3 |
|
|
Income taxes paid (received), net of refunds2 |
$ |
85.2 |
|
|
$ |
(5.4 |
) |
|
| ____________________ | ||
| 1. | Unless otherwise noted, amounts include both continuing and discontinued operations. |
|
| 2. |
Year ended |
|
|
||||||||||||||||||||||||
Consolidated Sales by Line of Business |
||||||||||||||||||||||||
(Unaudited; in millions) |
||||||||||||||||||||||||
Sales by Line of Business |
|
|||||||||||||||||||||||
|
Three Months Ended |
|
|
|
|
|
|
|||||||||||||||||
|
2021 |
|
2020 |
|
Change |
|||||||||||||||||||
|
|
|
Mix % |
|
|
|
Mix % |
|
$ |
|
% |
|||||||||||||
Residential roofing products |
$ |
994.8 |
|
|
|
53.0 |
% |
|
$ |
964.6 |
|
|
|
55.0 |
% |
|
$ |
30.2 |
|
|
|
3.1 |
% |
|
Non-residential roofing products |
|
474.0 |
|
|
|
25.3 |
% |
|
|
442.8 |
|
|
|
25.2 |
% |
|
|
31.2 |
|
|
|
7.0 |
% |
|
Complementary building products |
|
406.6 |
|
|
|
21.7 |
% |
|
|
347.6 |
|
|
|
19.8 |
% |
|
|
59.0 |
|
|
|
17.0 |
% |
|
|
$ |
1,875.4 |
|
|
|
100.0 |
% |
|
$ |
1,755.0 |
|
|
|
100.0 |
% |
|
$ |
120.4 |
|
|
|
6.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Sales by Business Day1,2 |
|
|||||||||||||||||||||||
|
Three Months Ended |
|
|
|
|
|
|
|||||||||||||||||
|
2021 |
|
2020 |
|
Change |
|||||||||||||||||||
|
|
|
Mix % |
|
|
|
Mix % |
|
$ |
|
% |
|||||||||||||
Residential roofing products |
$ |
15.5 |
|
|
|
53.0 |
% |
|
$ |
15.1 |
|
|
|
55.0 |
% |
|
$ |
0.4 |
|
|
|
3.1 |
% |
|
Non-residential roofing products |
|
7.4 |
|
|
|
25.3 |
% |
|
|
6.9 |
|
|
|
25.2 |
% |
|
|
0.5 |
|
|
|
7.0 |
% |
|
Complementary building products |
|
6.4 |
|
|
|
21.7 |
% |
|
|
5.4 |
|
|
|
19.8 |
% |
|
|
1.0 |
|
|
|
17.0 |
% |
|
|
$ |
29.3 |
|
|
|
100.0 |
% |
|
$ |
27.4 |
|
|
|
100.0 |
% |
|
$ |
1.9 |
|
|
|
6.9 |
% |
|
| ____________________ | ||
| 1. | The fourth quarter of fiscal years 2021 and 2020 each had 64 business days. |
|
| 2. | Dollar and percentage changes may not recalculate due to rounding. |
|
Sales by Line of Business |
|
|||||||||||||||||||||||
|
Year Ended |
|
|
|
|
|
|
|||||||||||||||||
|
2021 |
|
2020 |
|
Change |
|||||||||||||||||||
|
|
|
Mix % |
|
|
|
Mix % |
|
$ |
|
% |
|||||||||||||
Residential roofing products |
$ |
3,516.2 |
|
|
|
53.0 |
% |
|
$ |
3,079.4 |
|
|
|
52.1 |
% |
|
$ |
436.8 |
|
|
|
14.2 |
% |
|
Non-residential roofing products |
|
1,688.8 |
|
|
|
25.4 |
% |
|
|
1,616.8 |
|
|
|
27.3 |
% |
|
|
72.0 |
|
|
|
4.5 |
% |
|
Complementary building products |
|
1,437.0 |
|
|
|
21.6 |
% |
|
|
1,220.5 |
|
|
|
20.6 |
% |
|
|
216.5 |
|
|
|
17.7 |
% |
|
|
$ |
6,642.0 |
|
|
|
100.0 |
% |
|
$ |
5,916.7 |
|
|
|
100.0 |
% |
|
$ |
725.3 |
|
|
|
12.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Sales by Business Day1,2 |
|
|||||||||||||||||||||||
|
Year Ended |
|
|
|
|
|
|
|||||||||||||||||
|
2021 |
|
2020 |
|
Change |
|||||||||||||||||||
|
|
|
Mix % |
|
|
|
Mix % |
|
$ |
|
% |
|||||||||||||
Residential roofing products |
$ |
13.9 |
|
|
|
53.0 |
% |
|
$ |
12.1 |
|
|
|
52.1 |
% |
|
$ |
1.8 |
|
|
|
14.6 |
% |
|
Non-residential roofing products |
|
6.7 |
|
|
|
25.4 |
% |
|
|
6.4 |
|
|
|
27.3 |
% |
|
|
0.3 |
|
|
|
4.9 |
% |
|
Complementary building products |
|
5.7 |
|
|
|
21.6 |
% |
|
|
4.8 |
|
|
|
20.6 |
% |
|
|
0.9 |
|
|
|
18.2 |
% |
|
|
$ |
26.3 |
|
|
|
100.0 |
% |
|
$ |
23.3 |
|
|
|
100.0 |
% |
|
$ |
3.0 |
|
|
|
12.7 |
% |
|
| ____________________ | ||
| 1. | Fiscal years 2021 and 2020 had 253 and 254 business days, respectively. |
|
| 2. | Dollar and percentage changes may not recalculate due to rounding. |
|
Non-GAAP Financial Measures
(Unaudited; in millions)
Non-GAAP Financial Measures
To provide investors with additional information regarding our financial results, we prepare certain financial measures that are not calculated in accordance with GAAP, specifically:
- Adjusted Operating Expense. We define Adjusted Operating Expense as operating expense, excluding the impact of the adjusting items (as described below).
- Adjusted Net Income (Loss). We define Adjusted Net Income (Loss) as net income (loss) from continuing operations, excluding the impact of the adjusting items (as described below).
- Adjusted EBITDA. We define Adjusted EBITDA as net income (loss) from continuing operations, excluding the impact of interest expense (net of interest income), income taxes, depreciation and amortization, stock-based compensation, and the adjusting items (as described below).
We use these supplemental non-GAAP measures to evaluate financial performance, analyze the underlying trends in our business and establish operational goals and forecasts that are used when allocating resources. We expect to compute our non-GAAP financial measures consistently using the same methods each period.
We believe these non-GAAP measures are useful measures because they permit investors to better understand changes over comparative periods by providing financial results that are unaffected by certain items that are not indicative of ongoing operating performance.
While we believe that these non-GAAP measures are useful to investors when evaluating our business, they are not prepared and presented in accordance with GAAP, and therefore should be considered supplemental in nature. These non-GAAP measures should not be considered in isolation or as a substitute for other financial performance measures presented in accordance with GAAP. These non-GAAP financial measures may have material limitations including, but not limited to, the exclusion of certain costs without a corresponding reduction of net income for the income generated by the assets to which the excluded costs relate. In addition, these non-GAAP financial measures may differ from similarly titled measures presented by other companies.
Non-GAAP Financial Measures (continued)
(Unaudited; in millions)
Adjusting Items to Non-GAAP Financial Measures
The impact of the following expense (income) items is excluded from each of our non-GAAP measures (the “adjusting items”):
- Acquisition costs. Represent certain costs related to historical acquisitions, including: amortization of intangible assets; professional fees, branch integration expenses, travel expenses, employee severance and retention costs, and other personnel expenses classified as selling, general and administrative; and amortization of debt issuance costs.
- Restructuring costs. Represent costs stemming from headcount rationalization efforts; branch re-organization; certain rebranding costs; impact of the Interior Products divestiture; accrued estimated costs related to employee benefit plan withdrawals; and debt refinancing and extinguishment costs.
- COVID-19 impacts. Represent costs directly related to the COVID-19 pandemic; and income tax provision (benefit) stemming from the revaluation of deferred tax assets and liabilities made in conjunction with our application of the CARES Act.
- Effects of tax reform. Represents income tax provision (benefit) related to the Tax Cuts and Jobs Act of 2017.
The following table presents the impact and respective location of the adjusting items on our consolidated statements of operations for each of the periods indicated:
|
Operating Expense |
|
Non-Operating Expense |
|
|
|
|
|
|
|||||||||||||||
|
SG&A1 |
|
Amortization |
|
Interest Expense |
|
Other (Income) Expense |
|
Income Taxes2 |
|
Total |
|||||||||||||
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Acquisition costs |
$ |
0.9 |
|
|
$ |
25.0 |
|
|
$ |
1.0 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
26.9 |
|
|
Restructuring costs |
|
2.8 |
|
|
|
— |
|
|
|
0.3 |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
3.0 |
|
|
COVID-19 impacts |
|
0.4 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.4 |
|
|
Total adjusting items |
$ |
4.1 |
|
|
$ |
25.0 |
|
|
$ |
1.3 |
|
|
$ |
(0.1 |
) |
|
$ |
— |
|
|
$ |
30.3 |
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Acquisition costs |
$ |
1.7 |
|
|
$ |
30.2 |
|
|
$ |
2.0 |
|
|
$ |
0.2 |
|
|
$ |
— |
|
|
$ |
34.1 |
|
|
Restructuring costs |
|
0.4 |
|
|
|
— |
|
|
|
0.9 |
|
|
|
0.9 |
|
|
|
— |
|
|
|
2.2 |
|
|
COVID-19 impacts |
|
0.7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
|
|
0.6 |
|
|
Total adjusting items |
$ |
2.8 |
|
|
$ |
30.2 |
|
|
$ |
2.9 |
|
|
$ |
1.1 |
|
|
$ |
(0.1 |
) |
|
$ |
36.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Year Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Acquisition costs |
$ |
3.3 |
|
|
$ |
101.1 |
|
|
$ |
6.1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
110.5 |
|
|
Restructuring costs3 |
|
9.4 |
|
|
|
2.2 |
|
|
|
2.7 |
|
|
|
60.3 |
|
|
|
— |
|
|
|
74.6 |
|
|
COVID-19 impacts |
|
1.6 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.6 |
|
|
Total adjusting items |
$ |
14.3 |
|
|
$ |
103.3 |
|
|
$ |
8.8 |
|
|
$ |
60.3 |
|
|
$ |
— |
|
|
$ |
186.7 |
|
|
Year Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Acquisition costs4 |
$ |
9.6 |
|
|
$ |
119.3 |
|
|
$ |
8.0 |
|
|
$ |
(5.1 |
) |
|
$ |
— |
|
|
$ |
131.8 |
|
|
Restructuring costs5 |
|
2.3 |
|
|
|
142.6 |
|
|
|
3.6 |
|
|
|
21.5 |
|
|
|
— |
|
|
|
170.0 |
|
|
COVID-19 impacts6 |
|
4.2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.7 |
) |
|
|
3.5 |
|
|
Total adjusting items |
$ |
16.1 |
|
|
$ |
261.9 |
|
|
$ |
11.6 |
|
|
$ |
16.4 |
|
|
$ |
(0.7 |
) |
|
$ |
305.3 |
|
|
| ____________________ | ||
| 1. | Selling, general and administrative expense (“SG&A”). |
|
| 2. | For tax impact of adjusting items, see Adjusted Net Income (Loss) table below. |
|
| 3. |
Other (income) expense includes a loss on debt extinguishment of |
|
| 4. |
Other (income) expense includes a net |
|
| 5. |
Amortization includes the impact of non-cash accelerated intangible asset amortization of |
|
| 6. |
Income taxes consist of a tax benefit of |
|
Non-GAAP Financial Measures (continued)
(Unaudited; in millions)
Adjusted Operating Expense
The following table presents a reconciliation of operating expense, the most directly comparable financial measure as measured in accordance with GAAP, to Adjusted Operating Expense for each of the periods indicated:
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||
Operating expense |
$ |
349.7 |
|
|
$ |
324.9 |
|
|
$ |
1,300.9 |
|
|
$ |
1,385.5 |
|
|
Acquisition costs |
|
(25.9 |
) |
|
|
(31.9 |
) |
|
|
(104.4 |
) |
|
|
(128.9 |
) |
|
Restructuring costs |
|
(2.8 |
) |
|
|
(0.4 |
) |
|
|
(11.6 |
) |
|
|
(144.9 |
) |
|
COVID-19 impacts |
|
(0.4 |
) |
|
|
(0.7 |
) |
|
|
(1.6 |
) |
|
|
(4.2 |
) |
|
Adjusted Operating Expense |
$ |
320.6 |
|
|
$ |
291.9 |
|
|
$ |
1,183.3 |
|
|
$ |
1,107.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net sales |
$ |
1,875.4 |
|
|
$ |
1,755.0 |
|
|
$ |
6,642.0 |
|
|
$ |
5,916.7 |
|
|
Operating expense as % of sales |
|
18.6 |
% |
|
|
18.5 |
% |
|
|
19.6 |
% |
|
|
23.4 |
% |
|
Adjusted Operating Expense as % of sales |
|
17.1 |
% |
|
|
16.6 |
% |
|
|
17.8 |
% |
|
|
18.7 |
% |
|
Adjusted Net Income (Loss)
The following table presents a reconciliation of net income (loss) from continuing operations, the most directly comparable financial measure as measured in accordance with GAAP, to Adjusted Net Income (Loss) for each of the periods indicated:
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||
Net income (loss) from continuing operations |
$ |
104.5 |
|
|
$ |
68.2 |
|
|
$ |
221.2 |
|
|
$ |
(81.3 |
) |
|
Adjusting items: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Acquisition costs |
|
26.9 |
|
|
|
34.1 |
|
|
|
110.5 |
|
|
|
131.8 |
|
|
Restructuring costs |
|
3.0 |
|
|
|
2.2 |
|
|
|
74.6 |
|
|
|
170.0 |
|
|
COVID-19 impacts |
|
0.4 |
|
|
|
0.6 |
|
|
|
1.6 |
|
|
|
3.5 |
|
|
Total adjusting items |
|
30.3 |
|
|
|
36.9 |
|
|
|
186.7 |
|
|
|
305.3 |
|
|
Less: tax impact of adjusting items1 |
|
(7.7 |
) |
|
|
(14.4 |
) |
|
|
(47.8 |
) |
|
|
(78.2 |
) |
|
Total adjustments, net of tax |
|
22.6 |
|
|
|
22.5 |
|
|
|
138.9 |
|
|
|
227.1 |
|
|
Adjusted Net Income (Loss) |
$ |
127.1 |
|
|
$ |
90.7 |
|
|
$ |
360.1 |
|
|
$ |
145.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net sales |
$ |
1,875.4 |
|
|
$ |
1,755.0 |
|
|
$ |
6,642.0 |
|
|
$ |
5,916.7 |
|
|
Net income (loss) as % of sales |
|
5.6 |
% |
|
|
3.9 |
% |
|
|
3.3 |
% |
|
|
(1.4 |
%) |
|
Adjusted Net Income (Loss) as % of sales |
|
6.8 |
% |
|
|
5.2 |
% |
|
|
5.4 |
% |
|
|
2.5 |
% |
|
| ____________________ | ||
| 1. |
Amounts represent tax impact on adjusting items that are not included in our income tax provision (benefit) for the periods presented. The effective tax rate applied to these adjusting items is calculated by using forecasted adjusted pre-tax income while factoring in estimated discrete tax adjustments for the fiscal year. The tax impact of adjusting items for the three months ended |
|
Non-GAAP Financial Measures (continued)
(Unaudited; in millions)
Adjusted EBITDA
The following table presents a reconciliation of net income (loss) from continuing operations, the most directly comparable financial measure as measured in accordance with GAAP, to Adjusted EBITDA for each of the periods indicated:
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||
Net income (loss) from continuing operations |
$ |
104.5 |
|
|
$ |
68.2 |
|
|
$ |
221.2 |
|
|
$ |
(81.3 |
) |
|
Interest expense, net |
|
17.1 |
|
|
|
32.5 |
|
|
|
101.0 |
|
|
|
138.4 |
|
|
Income taxes |
|
37.3 |
|
|
|
16.9 |
|
|
|
77.3 |
|
|
|
(27.0 |
) |
|
Depreciation and amortization |
|
40.3 |
|
|
|
43.9 |
|
|
|
162.2 |
|
|
|
320.0 |
|
|
Stock-based compensation |
|
4.9 |
|
|
|
3.6 |
|
|
|
18.4 |
|
|
|
16.0 |
|
|
Acquisition costs1 |
|
0.9 |
|
|
|
1.9 |
|
|
|
3.3 |
|
|
|
4.5 |
|
|
Restructuring costs1 |
|
2.7 |
|
|
|
1.3 |
|
|
|
69.7 |
|
|
|
23.8 |
|
|
COVID-19 impacts1 |
|
0.4 |
|
|
|
0.7 |
|
|
|
1.6 |
|
|
|
4.2 |
|
|
Adjusted EBITDA |
$ |
208.1 |
|
|
$ |
169.0 |
|
|
$ |
654.7 |
|
|
$ |
398.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net sales |
$ |
1,875.4 |
|
|
$ |
1,755.0 |
|
|
$ |
6,642.0 |
|
|
$ |
5,916.7 |
|
|
Net income (loss) as % of sales |
|
5.6 |
% |
|
|
3.9 |
% |
|
|
3.3 |
% |
|
|
(1.4 |
%) |
|
Adjusted EBITDA as % of sales |
|
11.1 |
% |
|
|
9.6 |
% |
|
|
9.9 |
% |
|
|
6.7 |
% |
|
| ____________________ | ||
| 1. | Amounts represent adjusting items included in SG&A and other income (expense); remaining adjusting item balances are embedded within the other line item balances reported in the table. |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20211118006242/en/
INVESTOR CONTACT
Head of Investor Relations
Binit.Sanghvi@becn.com
972-369-8005
MEDIA CONTACT
VP, Communications and Corporate Social Responsibility
Jennifer.Lewis@becn.com
571-752-1048
Source: Beacon
FAQ
What were Beacon's net sales for Q4 2021?
How did Beacon's gross margin perform in fiscal year 2021?
What is the impact of the Midway Sales acquisition on Beacon?
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