Beacon Reports Third Quarter 2024 Results
Beacon (BECN) reported record Q3 2024 quarterly sales of $2.77 billion, up 7.3% year-over-year. Net income was $145.3 million, down from $161.3 million in Q3 2023. The company achieved record Adjusted EBITDA of $325.2 million. Gross margin improved to 26.3% from 26.0%. The company implemented cost reduction initiatives expected to result in annual savings of approximately $45 million. During the quarter, Beacon opened four new greenfield locations and completed acquisitions expected to contribute about $247 million in annual sales. The company also executed a $225 million accelerated share repurchase agreement.
Beacon (BECN) ha riportato vendite trimestrali record per il Q3 2024 di $2,77 miliardi, con un incremento del 7,3% rispetto all'anno precedente. L'utile netto è stato di $145,3 milioni, in diminuzione rispetto ai $161,3 milioni del Q3 2023. L'azienda ha raggiunto un EBITDA rettificato record di $325,2 milioni. Il margine lordo è migliorato dal 26,0% al 26,3%. L'azienda ha messo in atto iniziative di riduzione dei costi che si prevede porteranno a risparmi annuali di circa $45 milioni. Durante il trimestre, Beacon ha aperto quattro nuove sedi greenfield e ha completato acquisizioni previste per contribuire con circa $247 milioni in vendite annuali. L'azienda ha inoltre eseguito un accordo di riacquisto accelerato di azioni del valore di $225 milioni.
Beacon (BECN) reportó ventas trimestrales récord para el Q3 2024 de $2.77 mil millones, un aumento del 7.3% en comparación con el año anterior. El ingreso neto fue de $145.3 millones, una disminución desde los $161.3 millones en el Q3 2023. La compañía alcanzó un EBITDA ajustado récord de $325.2 millones. El margen bruto mejoró al 26.3% desde el 26.0%. La compañía implementó iniciativas de reducción de costos que se espera resulten en ahorros anuales de aproximadamente $45 millones. Durante el trimestre, Beacon abrió cuatro nuevas ubicaciones greenfield y completó adquisiciones que se espera contribuyan con aproximadamente $247 millones en ventas anuales. La compañía también ejecutó un acuerdo de recompra acelerada de acciones de $225 millones.
Beacon (BECN)은 2024년 3분기 기록적인 분기 매출인 $27억 7천만 달러를 보고했으며, 이는 전년 대비 7.3% 증가한 수치입니다. 순이익은 $1억 4천5백30만 달러로, 2023년 3분기의 $1억 6천1백30만 달러에서 감소했습니다. 이 회사는 $3억 2천5백20만 달러의 조정 후 EBITDA 기록을 달성했습니다. 총 이익률은 26.0%에서 26.3%로 개선되었습니다. 이 회사는 연간 약 $4천5백만 달러의 절감 효과를 기대하는 비용 절감 이니셔티브를 실행했습니다. 분기 동안 Beacon은 네 개의 새로운 그린필드 위치를 열었고, 연간 약 $2억 4천7백만 달러의 매출에 기여할 것으로 예상되는 인수를 완료했습니다. 또한 $2억 2천5백만 달러 규모의 가속 주식 매입 계약을 체결했습니다.
Beacon (BECN) a enregistré des ventes trimestrielles record pour le 3e trimestre 2024 s'élevant à 2,77 milliards de dollars, en hausse de 7,3% par rapport à l'année précédente. Le revenu net s'élevait à 145,3 millions de dollars, en baisse par rapport à 161,3 millions de dollars au 3e trimestre 2023. L'entreprise a atteint un EBITDA ajusté record de 325,2 millions de dollars. La marge brute s'est améliorée, passant de 26,0% à 26,3%. L'entreprise a mis en place des initiatives de réduction des coûts qui devraient entraîner des économies annuelles d'environ 45 millions de dollars. Au cours du trimestre, Beacon a ouvert quatre nouveaux sites greenfield et a finalisé des acquisitions qui devraient contribuer environ 247 millions de dollars au chiffre d'affaires annuel. L'entreprise a également signé un accord de rachat d'actions accéléré d'une valeur de 225 millions de dollars.
Beacon (BECN) berichtete von einem Rekordumsatz im 3. Quartal 2024 von 2,77 Milliarden Dollar, was einem Anstieg von 7,3% im Vergleich zum Vorjahreszeitraum entspricht. Der Nettoertrag betrug 145,3 Millionen Dollar, ein Rückgang von 161,3 Millionen Dollar im 3. Quartal 2023. Das Unternehmen erzielte ein Rekord-EBITDA von 325,2 Millionen Dollar. Die Bruttomarge verbesserte sich von 26,0% auf 26,3%. Das Unternehmen implementierte Kostensenkungsinitiativen, von denen jährliche Einsparungen von etwa 45 Millionen Dollar erwartet werden. Im Quartal eröffnete Beacon vier neue Greenfield-Standorte und schloss Übernahmen ab, die voraussichtlich etwa 247 Millionen Dollar im Jahresumsatz beitragen werden. Das Unternehmen führte außerdem eine beschleunigte Aktienrückkaufvereinbarung in Höhe von 225 Millionen Dollar durch.
- Record quarterly net sales of $2.77 billion, up 7.3% YoY
- Record Adjusted EBITDA of $325.2 million
- Gross margin improved to 26.3% from 26.0%
- Cost reduction initiatives expected to save $45 million annually
- Acquisitions expected to contribute $247 million in annual sales
- Net income decreased to $145.3 million from $161.3 million YoY
- Operating expense as percentage of sales increased to 17.4% from 16.2%
- Adjusted Operating Expense as percentage of sales rose to 16.0% from 15.3%
- Year-to-date gross margin declined to 25.6% from 25.7%
Insights
Strong quarterly performance with
Strategic acquisitions are expected to contribute
The results reflect strong market positioning in both repair and reroofing segments. The
The waterproofing acquisitions adding 20 branches since September 2023 represent a calculated move into higher-margin complementary products. Despite macroeconomic headwinds, the non-discretionary nature of repair and reroofing provides defensive characteristics, though higher operating costs and staffing adjustments suggest careful navigation of market conditions.
- Record quarterly sales driven by execution on Ambition 2025 growth initiatives
- Disciplined margin management and bottom quintile branch initiative resulted in solid net income and record Adjusted EBITDA
- Invested in organic growth by opening four greenfield locations to enhance customer reach
-
Executed on value-creating acquisitions that are expected to contribute approximately
of sales annually$247 million
“Beacon’s third quarter results demonstrated the resilience of our business model and the team’s strong execution on our Ambition 2025 initiatives,” said Julian Francis, Beacon’s President & CEO. “We have, once again, shown that we can grow in any environment. The majority of our demand is underpinned by non-discretionary repair and reroofing, which remained solid in the third quarter. However, despite the overall level of activity lower than our expectation, disciplined margin management resulted in favorable price-cost across all lines of business. In addition, in September, we took action to lower operating expense by aligning our staffing with current market conditions. We expect these actions will result in annual savings of approximately
“Our balanced capital allocation demonstrates our commitment to growth and to creating shareholder value. During the quarter, we continued to invest in organic growth by adding four greenfield locations in key markets. We also continued building on our track record of value-creating acquisitions, including enhancing our non-residential and Canadian footprints. I am pleased with our achievements in the third quarter and confident that the Beacon team remains prepared to quickly adapt to changing market conditions going forward as we help our customers build more.”
Third Quarter Financial Highlights
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
(Unaudited; $ in millions) |
|
|
|
|
|
|
|
||||||||
Net sales |
$ |
2,772.6 |
|
|
$ |
2,584.3 |
|
|
$ |
7,359.6 |
|
|
$ |
6,820.3 |
|
Gross profit |
$ |
730.4 |
|
|
$ |
672.6 |
|
|
$ |
1,887.3 |
|
|
$ |
1,750.7 |
|
Gross margin % |
|
26.3 |
% |
|
|
26.0 |
% |
|
|
25.6 |
% |
|
|
25.7 |
% |
|
|
|
|
|
|
|
|
||||||||
Operating expense |
$ |
483.7 |
|
|
$ |
418.8 |
|
|
$ |
1,379.7 |
|
|
$ |
1,202.0 |
|
% of net sales |
|
17.4 |
% |
|
|
16.2 |
% |
|
|
18.7 |
% |
|
|
17.6 |
% |
Adjusted Operating Expense1 |
$ |
442.9 |
|
|
$ |
395.2 |
|
|
$ |
1,287.3 |
|
|
$ |
1,129.6 |
|
% of net sales1 |
|
16.0 |
% |
|
|
15.3 |
% |
|
|
17.5 |
% |
|
|
16.6 |
% |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
145.3 |
|
|
$ |
161.3 |
|
|
$ |
278.1 |
|
|
$ |
339.9 |
|
% of net sales |
|
5.2 |
% |
|
|
6.3 |
% |
|
|
3.8 |
% |
|
|
4.9 |
% |
Adjusted Net Income (Loss)1 |
$ |
176.9 |
|
|
$ |
180.0 |
|
|
$ |
351.9 |
|
|
$ |
396.7 |
|
% of net sales1 |
|
6.4 |
% |
|
|
7.0 |
% |
|
|
4.8 |
% |
|
|
5.8 |
% |
Adjusted EBITDA1 |
$ |
325.2 |
|
|
$ |
309.6 |
|
|
$ |
707.7 |
|
|
$ |
712.9 |
|
% of net sales1 |
|
11.7 |
% |
|
|
12.0 |
% |
|
|
9.6 |
% |
|
|
10.5 |
% |
________________ | |||
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. |
Third Quarter
Net sales increased to
Residential roofing product sales increased
Gross margin increased to
Net income (loss) was
Year-to-Date
Net sales increased to
Residential roofing product sales increased
Gross margin decreased to
Net income (loss) was
On May 9, 2024, the Company entered into an accelerated share repurchase (“ASR”) agreement to repurchase
To calculate approximate weighted average selling price and product cost changes, we review organic
During the fourth quarter of 2023, we revised our definition of when a branch classification changes from acquired to existing. Previously, the results of operations of branches were designated as acquired until they had been under our ownership for at least four full fiscal quarters at the start of the fiscal reporting period, after which such branches were classified as existing. Under our new definition, the results of operations of branches will be designated as acquired until they have been under our ownership and have contributed to our results of operations for at least 12 calendar months (treating partial months as full months), after which such branches are classified as existing. The effect of this change in definition is that the prior year results of operations for branches will be reclassified to existing when the comparable current month’s financial results are also classified as existing.
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 tomorrow at 8:30 a.m. ET to discuss these results. Details for the earnings release event are as follows:
What: |
Beacon Third Quarter 2024 Earnings Call |
When: |
Thursday, October 31, 2024 |
Time: |
8:30 a.m. ET |
Access: |
Register for the conference call or webcast by visiting: |
|
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 8:30 a.m. ET start time. An archived copy of the webcast will be available on the Events & Presentations page shortly after the call.
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 December 31, 2023 and subsequent filings with the
About Beacon
Founded in 1928, Beacon is a publicly-traded Fortune 500 company that distributes specialty building products, including roofing materials and complementary products, such as siding and waterproofing. The company operates over 580 branches throughout all 50 states in the
BEACON ROOFING SUPPLY, INC. |
|||||||||||||||||||||||||
Consolidated Statements of Operations |
|||||||||||||||||||||||||
(Unaudited; in millions, except per share amounts) |
|||||||||||||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||||||||||||
|
2024 |
|
% of Net Sales |
|
2023 |
|
% of Net Sales |
|
2024 |
|
% of Net Sales |
|
2023 |
|
% of Net Sales |
||||||||||
Net sales |
$ |
2,772.6 |
|
100.0 |
% |
|
$ |
2,584.3 |
|
|
100.0 |
% |
|
$ |
7,359.6 |
|
100.0 |
% |
|
$ |
6,820.3 |
|
|
100.0 |
% |
Cost of products sold |
|
2,042.2 |
|
73.7 |
% |
|
|
1,911.7 |
|
|
74.0 |
% |
|
|
5,472.3 |
|
74.4 |
% |
|
|
5,069.6 |
|
|
74.3 |
% |
Gross profit |
|
730.4 |
|
26.3 |
% |
|
|
672.6 |
|
|
26.0 |
% |
|
|
1,887.3 |
|
25.6 |
% |
|
|
1,750.7 |
|
|
25.7 |
% |
Operating expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Selling, general and administrative |
|
430.2 |
|
15.5 |
% |
|
|
374.3 |
|
|
14.5 |
% |
|
|
1,230.2 |
|
16.7 |
% |
|
|
1,071.3 |
|
|
15.7 |
% |
Depreciation |
|
28.8 |
|
1.0 |
% |
|
|
23.1 |
|
|
0.9 |
% |
|
|
80.8 |
|
1.1 |
% |
|
|
65.6 |
|
|
1.0 |
% |
Amortization |
|
24.7 |
|
0.9 |
% |
|
|
21.4 |
|
|
0.8 |
% |
|
|
68.7 |
|
0.9 |
% |
|
|
65.1 |
|
|
0.9 |
% |
Total operating expense |
|
483.7 |
|
17.4 |
% |
|
|
418.8 |
|
|
16.2 |
% |
|
|
1,379.7 |
|
18.7 |
% |
|
|
1,202.0 |
|
|
17.6 |
% |
Income (loss) from operations |
|
246.7 |
|
8.9 |
% |
|
|
253.8 |
|
|
9.8 |
% |
|
|
507.6 |
|
6.9 |
% |
|
|
548.7 |
|
|
8.1 |
% |
Interest expense, financing costs and other, net |
|
48.7 |
|
1.8 |
% |
|
|
35.2 |
|
|
1.3 |
% |
|
|
132.7 |
|
1.8 |
% |
|
|
89.0 |
|
|
1.4 |
% |
Loss on debt extinguishment |
|
— |
|
— |
% |
|
|
— |
|
|
— |
% |
|
|
2.4 |
|
0.0 |
% |
|
|
— |
|
|
— |
% |
Income (loss) before provision for income taxes |
|
198.0 |
|
7.1 |
% |
|
|
218.6 |
|
|
8.5 |
% |
|
|
372.5 |
|
5.1 |
% |
|
|
459.7 |
|
|
6.7 |
% |
Provision for (benefit from) income taxes |
|
52.7 |
|
1.9 |
% |
|
|
57.3 |
|
|
2.2 |
% |
|
|
94.4 |
|
1.3 |
% |
|
|
119.8 |
|
|
1.8 |
% |
Net income (loss) |
$ |
145.3 |
|
5.2 |
% |
|
$ |
161.3 |
|
|
6.3 |
% |
|
$ |
278.1 |
|
3.8 |
% |
|
$ |
339.9 |
|
|
4.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reconciliation of net income (loss) to net income (loss) attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) |
$ |
145.3 |
|
5.2 |
% |
|
$ |
161.3 |
|
|
6.2 |
% |
|
$ |
278.1 |
|
3.8 |
% |
|
$ |
339.9 |
|
|
5.0 |
% |
Dividends on Preferred Stock |
|
— |
|
— |
% |
|
|
(1.9 |
) |
|
(0.1 |
)% |
|
|
— |
|
— |
% |
|
|
(13.9 |
) |
|
(0.2 |
)% |
Undistributed income allocated to participating securities |
|
— |
|
— |
% |
|
|
(7.6 |
) |
|
(0.3 |
)% |
|
|
— |
|
— |
% |
|
|
(34.3 |
) |
|
(0.5 |
)% |
Repurchase Premium |
|
— |
|
— |
% |
|
|
(414.6 |
) |
|
(16.0 |
)% |
|
|
— |
|
— |
% |
|
|
(414.6 |
) |
|
(6.1 |
)% |
Net income (loss) attributable to common stockholders |
$ |
145.3 |
|
5.2 |
% |
|
$ |
(262.8 |
) |
|
(10.2 |
)% |
|
$ |
278.1 |
|
3.8 |
% |
|
$ |
(122.9 |
) |
|
(1.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
62.0 |
|
|
|
|
63.2 |
|
|
|
|
|
62.8 |
|
|
|
|
63.7 |
|
|
|
||||
Diluted |
|
63.1 |
|
|
|
|
63.2 |
|
|
|
|
|
63.9 |
|
|
|
|
63.7 |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
$ |
2.34 |
|
|
|
$ |
(4.16 |
) |
|
|
|
$ |
4.43 |
|
|
|
$ |
(1.93 |
) |
|
|
||||
Diluted |
$ |
2.30 |
|
|
|
$ |
(4.16 |
) |
|
|
|
$ |
4.35 |
|
|
|
$ |
(1.93 |
) |
|
|
BEACON ROOFING SUPPLY, INC. |
|||||||||||
Consolidated Balance Sheets |
|||||||||||
(Unaudited; in millions) |
|||||||||||
|
September 30, |
|
December 31, |
|
September 30, |
||||||
|
2024 |
|
2023 |
|
2023 |
||||||
Assets |
|
|
|
|
|
||||||
Current assets: |
|
|
|
|
|
||||||
Cash and cash equivalents |
$ |
68.0 |
|
|
$ |
84.0 |
|
|
$ |
69.7 |
|
Accounts receivable, net |
|
1,596.7 |
|
|
|
1,140.2 |
|
|
|
1,415.7 |
|
Inventories, net |
|
1,494.2 |
|
|
|
1,227.9 |
|
|
|
1,307.9 |
|
Prepaid expenses and other current assets |
|
541.4 |
|
|
|
444.6 |
|
|
|
518.9 |
|
Total current assets |
|
3,700.3 |
|
|
|
2,896.7 |
|
|
|
3,312.2 |
|
Property and equipment, net |
|
497.3 |
|
|
|
436.4 |
|
|
|
396.3 |
|
Goodwill |
|
2,087.9 |
|
|
|
1,952.6 |
|
|
|
1,933.6 |
|
Intangibles, net |
|
504.3 |
|
|
|
403.5 |
|
|
|
410.5 |
|
Operating lease right-of-use assets, net |
|
610.7 |
|
|
|
503.6 |
|
|
|
483.0 |
|
Deferred income taxes, net |
|
2.1 |
|
|
|
2.1 |
|
|
|
4.9 |
|
Other assets, net |
|
16.9 |
|
|
|
12.8 |
|
|
|
12.5 |
|
Total assets |
$ |
7,419.5 |
|
|
$ |
6,207.7 |
|
|
$ |
6,553.0 |
|
|
|
|
|
|
|
||||||
Liabilities and Stockholders' Equity |
|
|
|
|
|
||||||
Current liabilities: |
|
|
|
|
|
||||||
Accounts payable |
$ |
1,202.7 |
|
|
$ |
942.8 |
|
|
$ |
1,179.9 |
|
Accrued expenses |
|
588.3 |
|
|
|
498.6 |
|
|
|
601.3 |
|
Current portion of operating lease liabilities |
|
98.4 |
|
|
|
89.7 |
|
|
|
99.2 |
|
Current portion of finance lease liabilities |
|
33.3 |
|
|
|
26.2 |
|
|
|
21.9 |
|
Current portion of long-term debt |
|
12.8 |
|
|
|
10.0 |
|
|
|
10.0 |
|
Total current liabilities |
|
1,935.5 |
|
|
|
1,567.3 |
|
|
|
1,912.3 |
|
Borrowings under revolving lines of credit, net |
|
437.9 |
|
|
|
80.0 |
|
|
|
218.3 |
|
Long-term debt, net |
|
2,483.3 |
|
|
|
2,192.3 |
|
|
|
2,193.9 |
|
Deferred income taxes, net |
|
22.3 |
|
|
|
20.1 |
|
|
|
0.3 |
|
Other long-term liabilities |
|
1.8 |
|
|
|
0.5 |
|
|
|
0.3 |
|
Operating lease liabilities |
|
527.8 |
|
|
|
423.7 |
|
|
|
395.9 |
|
Finance lease liabilities |
|
113.3 |
|
|
|
100.3 |
|
|
|
82.3 |
|
Total liabilities |
|
5,521.9 |
|
|
|
4,384.2 |
|
|
|
4,803.3 |
|
|
|
|
|
|
|
||||||
Convertible Preferred Stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||||||
Stockholders' equity: |
|
|
|
|
|
||||||
Common stock |
|
0.6 |
|
|
|
0.6 |
|
|
|
0.6 |
|
Undesignated preferred stock |
|
— |
|
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
1,204.5 |
|
|
|
1,218.4 |
|
|
|
1,220.3 |
|
Retained earnings |
|
715.9 |
|
|
|
618.8 |
|
|
|
534.7 |
|
Accumulated other comprehensive income (loss) |
|
(23.4 |
) |
|
|
(14.3 |
) |
|
|
(5.9 |
) |
Total stockholders' equity |
|
1,897.6 |
|
|
|
1,823.5 |
|
|
|
1,749.7 |
|
Total liabilities and stockholders' equity |
$ |
7,419.5 |
|
|
$ |
6,207.7 |
|
|
$ |
6,553.0 |
|
BEACON ROOFING SUPPLY, INC. |
|||||||
Consolidated Statements of Cash Flows |
|||||||
(Unaudited; in millions) |
|||||||
|
Nine Months Ended September 30, |
||||||
|
2024 |
|
2023 |
||||
Operating Activities |
|
|
|
||||
Net income (loss) |
$ |
278.1 |
|
|
$ |
339.9 |
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization |
|
149.5 |
|
|
|
130.7 |
|
Stock-based compensation |
|
23.3 |
|
|
|
22.2 |
|
Certain interest expense and other financing costs |
|
1.8 |
|
|
|
1.7 |
|
Loss on debt extinguishment |
|
2.4 |
|
|
|
— |
|
Gain on sale of fixed assets and other |
|
(5.2 |
) |
|
|
(13.7 |
) |
Deferred income taxes |
|
4.5 |
|
|
|
1.6 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(384.3 |
) |
|
|
(394.4 |
) |
Inventories |
|
(200.1 |
) |
|
|
37.7 |
|
Prepaid expenses and other current assets |
|
(101.9 |
) |
|
|
(89.4 |
) |
Accounts payable and accrued expenses |
|
288.3 |
|
|
|
491.2 |
|
Other assets and liabilities |
|
3.2 |
|
|
|
(1.8 |
) |
Net cash provided by (used in) operating activities |
|
59.6 |
|
|
|
525.7 |
|
|
|
|
|
||||
Investing Activities |
|
|
|
||||
Capital expenditures |
|
(87.6 |
) |
|
|
(85.5 |
) |
Acquisition of business, net |
|
(399.1 |
) |
|
|
(73.7 |
) |
Proceeds from sale of assets |
|
5.6 |
|
|
|
15.3 |
|
Purchases of investments |
|
(1.1 |
) |
|
|
(1.0 |
) |
Net cash provided by (used in) investing activities |
|
(482.2 |
) |
|
|
(144.9 |
) |
|
|
|
|
||||
Financing Activities |
|
|
|
||||
Borrowings under revolving lines of credit |
|
2,330.8 |
|
|
|
1,720.0 |
|
Payments under revolving lines of credit |
|
(1,974.3 |
) |
|
|
(1,757.9 |
) |
Borrowings under term loan |
|
300.0 |
|
|
|
— |
|
Payments under term loan |
|
(9.6 |
) |
|
|
(7.5 |
) |
Borrowings under senior notes |
|
— |
|
|
|
600.0 |
|
Payment of debt issuance costs |
|
(0.2 |
) |
|
|
(6.6 |
) |
Payments under equipment financing facilities and finance leases |
|
(21.7 |
) |
|
|
(14.3 |
) |
Repurchase of convertible Preferred Stock |
|
— |
|
|
|
(805.6 |
) |
Payment of fees for the repurchase of convertible Preferred Stock |
|
(0.1 |
) |
|
|
— |
|
Repurchase and retirement of common stock, net |
|
(180.0 |
) |
|
|
(100.5 |
) |
Advance payment for equity forward contract |
|
(45.0 |
) |
|
|
— |
|
Proceeds from disgorgement of short-swing profits1 |
|
— |
|
|
|
5.9 |
|
Proceeds from employee stock purchase plan |
|
8.3 |
|
|
|
— |
|
Payment of dividends on Preferred Stock |
|
— |
|
|
|
(18.9 |
) |
Proceeds from issuance of common stock related to equity awards |
|
6.6 |
|
|
|
9.7 |
|
Payment of taxes related to net share settlement of equity awards |
|
(7.1 |
) |
|
|
(3.1 |
) |
Net cash provided by (used in) financing activities |
|
407.7 |
|
|
|
(378.8 |
) |
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents |
|
(1.1 |
) |
|
|
— |
|
|
|
|
|
||||
Net increase (decrease) in cash and cash equivalents |
|
(16.0 |
) |
|
|
2.0 |
|
Cash and cash equivalents, beginning of period |
|
84.0 |
|
|
|
67.7 |
|
Cash and cash equivalents, end of period |
$ |
68.0 |
|
|
$ |
69.7 |
|
|
|
|
|
||||
Supplemental Cash Flow Information |
|
|
|
||||
Cash paid during the period for: |
|
|
|
||||
Interest |
$ |
133.1 |
|
|
$ |
73.1 |
|
Income taxes, net of refunds |
$ |
62.5 |
|
|
$ |
76.2 |
|
________________ | |||
1. |
During the nine months ended September 30, 2023, the Company received payments of |
BEACON ROOFING SUPPLY, INC. |
|||||||||||||||||
Consolidated Sales by Line of Business |
|||||||||||||||||
(Unaudited; in millions) |
|||||||||||||||||
Sales by Line of Business |
|||||||||||||||||
|
Three Months Ended September 30, |
|
Year-over-Year Change |
||||||||||||||
|
2024 |
|
2023 |
|
|||||||||||||
|
Net Sales |
|
Mix % |
|
Net Sales |
|
Mix % |
|
$ |
|
% |
||||||
Residential roofing products |
$ |
1,404.9 |
|
50.7 |
% |
|
$ |
1,372.8 |
|
53.1 |
% |
|
$ |
32.1 |
|
2.3 |
% |
Non-residential roofing products |
|
739.0 |
|
26.7 |
% |
|
|
675.2 |
|
26.1 |
% |
|
|
63.8 |
|
9.4 |
% |
Complementary building products |
|
628.7 |
|
22.6 |
% |
|
|
536.3 |
|
20.8 |
% |
|
|
92.4 |
|
17.2 |
% |
|
$ |
2,772.6 |
|
100.0 |
% |
|
$ |
2,584.3 |
|
100.0 |
% |
|
$ |
188.3 |
|
7.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Sales by Business Day1,2 |
|||||||||||||||||
|
Three Months Ended September 30, |
|
Year-over-Year Change |
||||||||||||||
|
2024 |
|
2023 |
|
|||||||||||||
|
Net Sales |
|
Mix % |
|
Net Sales |
|
Mix % |
|
$ |
|
% |
||||||
Residential roofing products |
$ |
22.0 |
|
50.7 |
% |
|
$ |
21.8 |
|
53.1 |
% |
|
$ |
0.2 |
|
0.7 |
% |
Non-residential roofing products |
|
11.5 |
|
26.7 |
% |
|
|
10.7 |
|
26.1 |
% |
|
|
0.8 |
|
7.7 |
% |
Complementary building products |
|
9.8 |
|
22.6 |
% |
|
|
8.5 |
|
20.8 |
% |
|
|
1.3 |
|
15.4 |
% |
|
$ |
43.3 |
|
100.0 |
% |
|
$ |
41.0 |
|
100.0 |
% |
|
$ |
2.3 |
|
5.6 |
% |
________________ | |
1. | The three-month periods ended September 30, 2024 and 2023 had 64 and 63 business days, respectively. |
2. | Dollar and percentage changes may not recalculate due to rounding. |
Sales by Line of Business |
|||||||||||||||||
|
Nine Months Ended September 30, |
|
Year-over-Year Change |
||||||||||||||
|
2024 |
|
2023 |
|
|||||||||||||
|
Net Sales |
|
Mix % |
|
Net Sales |
|
Mix % |
|
$ |
|
% |
||||||
Residential roofing products |
$ |
3,661.2 |
|
49.7 |
% |
|
$ |
3,521.5 |
|
51.6 |
% |
|
$ |
139.7 |
|
4.0 |
% |
Non-residential roofing products |
|
2,012.7 |
|
27.4 |
% |
|
|
1,796.2 |
|
26.4 |
% |
|
|
216.5 |
|
12.1 |
% |
Complementary building products |
|
1,685.7 |
|
22.9 |
% |
|
|
1,502.6 |
|
22.0 |
% |
|
|
183.1 |
|
12.2 |
% |
|
$ |
7,359.6 |
|
100.0 |
% |
|
$ |
6,820.3 |
|
100.0 |
% |
|
$ |
539.3 |
|
7.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Sales by Business Day1,2 |
|||||||||||||||||
|
Nine Months Ended September 30, |
|
Year-over-Year Change |
||||||||||||||
|
2024 |
|
2023 |
|
|||||||||||||
|
Net Sales |
|
Mix % |
|
Net Sales |
|
Mix % |
|
$ |
|
% |
||||||
Residential roofing products |
$ |
19.1 |
|
49.7 |
% |
|
$ |
18.4 |
|
51.6 |
% |
|
$ |
0.7 |
|
3.4 |
% |
Non-residential roofing products |
|
10.5 |
|
27.4 |
% |
|
|
9.4 |
|
26.4 |
% |
|
|
1.1 |
|
11.5 |
% |
Complementary building products |
|
8.8 |
|
22.9 |
% |
|
|
7.9 |
|
22.0 |
% |
|
|
0.9 |
|
11.6 |
% |
|
$ |
38.4 |
|
100.0 |
% |
|
$ |
35.7 |
|
100.0 |
% |
|
$ |
2.7 |
|
7.3 |
% |
________________ | |||
1. | The nine-month periods ended September 30, 2024 and 2023 had 192 and 191 business days, respectively. |
||
2. | Dollar and percentage changes may not recalculate due to rounding. |
BEACON ROOFING SUPPLY, INC.
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), excluding the impact of the adjusting items (as described below).
- Adjusted EBITDA. We define Adjusted EBITDA as net income (loss), 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.
BEACON ROOFING SUPPLY, INC.
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 direct and incremental costs related to 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; gains/losses related to changes in fair value of contingent consideration or holdback liabilities; and amortization of debt issuance costs. Acquisition costs are impacted by the timing and size of the acquisitions. We exclude acquisition costs from our non-GAAP financial measures to provide a useful comparison of our operating results to prior periods and to our peer companies because such amounts vary significantly based on the magnitude of the acquisition and do not reflect our core operations.
- Restructuring costs. Represent costs stemming from headcount rationalization efforts and certain rebranding costs; impact of divestitures; amortization of debt issuance costs; debt refinancing and extinguishment costs; and abandoned lease costs. We exclude restructuring costs from our non-GAAP financial measures, as such items vary significantly based on the magnitude of the restructuring activity and also do not reflect expected future operating expenses. Additionally, these costs do not necessarily provide meaningful insight into the current or past core operations of our business.
The following table presents the pre-tax impact of the adjusting items on our consolidated statements of operations for each of the periods indicated:
|
Operating Expense |
|
Non-Operating Expense |
|
|
|||||||||
|
SG&A |
|
Amortization |
|
Interest Expense |
|
Other (Income) Expense |
|
Total |
|||||
Three Months Ended September 30, 2024 |
|
|
|
|
|
|
|
|
|
|||||
Acquisition costs |
$ |
4.0 |
|
$ |
24.7 |
|
$ |
1.0 |
|
$ |
— |
|
$ |
29.7 |
Restructuring costs |
|
12.1 |
|
|
— |
|
|
0.5 |
|
|
— |
|
|
12.6 |
Total adjusting items |
$ |
16.1 |
|
$ |
24.7 |
|
$ |
1.5 |
|
$ |
— |
|
$ |
42.3 |
Three Months Ended September 30, 2023 |
|
|
|
|
|
|
|
|
|
|||||
Acquisition costs |
$ |
2.2 |
|
$ |
21.4 |
|
$ |
1.0 |
|
$ |
— |
|
$ |
24.6 |
Restructuring costs |
|
— |
|
|
— |
|
|
0.5 |
|
|
— |
|
|
0.5 |
Total adjusting items |
$ |
2.2 |
|
$ |
21.4 |
|
$ |
1.5 |
|
$ |
— |
|
$ |
25.1 |
|
|
|
|
|
|
|
|
|
|
|||||
Nine Months Ended September 30, 2024 |
|
|
|
|
|
|
|
|
|
|||||
Acquisition costs |
$ |
10.8 |
|
$ |
68.7 |
|
$ |
2.9 |
|
$ |
— |
|
$ |
82.4 |
Restructuring costs1 |
|
12.9 |
|
|
— |
|
|
1.6 |
|
|
2.4 |
|
|
16.9 |
Total adjusting items |
$ |
23.7 |
|
$ |
68.7 |
|
$ |
4.5 |
|
$ |
2.4 |
|
$ |
99.3 |
Nine Months Ended September 30, 2023 |
|
|
|
|
|
|
|
|
|
|||||
Acquisition costs |
$ |
5.3 |
|
$ |
65.1 |
|
$ |
3.0 |
|
$ |
— |
|
$ |
73.4 |
Restructuring costs |
|
2.0 |
|
|
— |
|
|
1.0 |
|
|
— |
|
|
3.0 |
Total adjusting items |
$ |
7.3 |
|
$ |
65.1 |
|
$ |
4.0 |
|
$ |
— |
|
$ |
76.4 |
________________ | |||
1. |
Other (income) expense for the nine months ended September 30, 2024 consists of a loss on debt extinguishment of |
BEACON ROOFING SUPPLY, INC.
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 September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Operating expense |
$ |
483.7 |
|
|
$ |
418.8 |
|
|
$ |
1,379.7 |
|
|
$ |
1,202.0 |
|
Acquisition costs |
|
(28.7 |
) |
|
|
(23.6 |
) |
|
|
(79.5 |
) |
|
|
(70.4 |
) |
Restructuring costs |
|
(12.1 |
) |
|
|
— |
|
|
|
(12.9 |
) |
|
|
(2.0 |
) |
Adjusted Operating Expense |
$ |
442.9 |
|
|
$ |
395.2 |
|
|
$ |
1,287.3 |
|
|
$ |
1,129.6 |
|
|
|
|
|
|
|
|
|
||||||||
Net sales |
$ |
2,772.6 |
|
|
$ |
2,584.3 |
|
|
$ |
7,359.6 |
|
|
$ |
6,820.3 |
|
Operating expense as % of net sales |
|
17.4 |
% |
|
|
16.2 |
% |
|
|
18.7 |
% |
|
|
17.6 |
% |
Adjusted Operating Expense as % of net sales |
|
16.0 |
% |
|
|
15.3 |
% |
|
|
17.5 |
% |
|
|
16.6 |
% |
Adjusted Net Income (Loss)
The following table presents a reconciliation of net income (loss), 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 September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income (loss) |
$ |
145.3 |
|
|
$ |
161.3 |
|
|
$ |
278.1 |
|
|
$ |
339.9 |
|
Adjusting items: |
|
|
|
|
|
|
|
||||||||
Acquisition costs |
|
29.7 |
|
|
|
24.6 |
|
|
|
82.4 |
|
|
|
73.4 |
|
Restructuring costs |
|
12.6 |
|
|
|
0.5 |
|
|
|
16.9 |
|
|
|
3.0 |
|
Total adjusting items |
|
42.3 |
|
|
|
25.1 |
|
|
|
99.3 |
|
|
|
76.4 |
|
Less: tax impact of adjusting items1 |
|
(10.7 |
) |
|
|
(6.4 |
) |
|
|
(25.5 |
) |
|
|
(19.6 |
) |
Total adjustments, net of tax |
|
31.6 |
|
|
|
18.7 |
|
|
|
73.8 |
|
|
|
56.8 |
|
Adjusted Net Income (Loss) |
$ |
176.9 |
|
|
$ |
180.0 |
|
|
$ |
351.9 |
|
|
$ |
396.7 |
|
|
|
|
|
|
|
|
|
||||||||
Net sales |
$ |
2,772.6 |
|
|
$ |
2,584.3 |
|
|
$ |
7,359.6 |
|
|
$ |
6,820.3 |
|
Net income (loss) as % net of sales |
|
5.2 |
% |
|
|
6.3 |
% |
|
|
3.8 |
% |
|
|
4.9 |
% |
Adjusted Net Income (Loss) as % net of sales |
|
6.4 |
% |
|
|
7.0 |
% |
|
|
4.8 |
% |
|
|
5.8 |
% |
________________ | |||
1. |
Amounts represent the tax impact of adjustments that are not included in our income tax provision (benefit) for the periods presented. The tax impact of adjustments for the three months ended September 30, 2024 and 2023 were calculated using a blended effective tax rate of |
BEACON ROOFING SUPPLY, INC.
Non-GAAP Financial Measures (continued)
(Unaudited; in millions)
Adjusted EBITDA
The following table presents a reconciliation of net income (loss), the most directly comparable financial measure as measured in accordance with GAAP, to Adjusted EBITDA for each of the periods indicated:
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income (loss) |
$ |
145.3 |
|
|
$ |
161.3 |
|
|
$ |
278.1 |
|
|
$ |
339.9 |
|
Interest expense, net |
|
50.0 |
|
|
|
36.4 |
|
|
|
136.3 |
|
|
|
93.0 |
|
Income taxes |
|
52.7 |
|
|
|
57.3 |
|
|
|
94.4 |
|
|
|
119.8 |
|
Depreciation and amortization |
|
53.5 |
|
|
|
44.5 |
|
|
|
149.5 |
|
|
|
130.7 |
|
Stock-based compensation |
|
7.6 |
|
|
|
7.9 |
|
|
|
23.3 |
|
|
|
22.2 |
|
Acquisition costs1 |
|
4.0 |
|
|
|
2.2 |
|
|
|
10.8 |
|
|
|
5.3 |
|
Restructuring costs1 |
|
12.1 |
|
|
|
— |
|
|
|
15.3 |
|
|
|
2.0 |
|
Adjusted EBITDA |
$ |
325.2 |
|
|
$ |
309.6 |
|
|
$ |
707.7 |
|
|
$ |
712.9 |
|
|
|
|
|
|
|
|
|
||||||||
Net sales |
$ |
2,772.6 |
|
|
$ |
2,584.3 |
|
|
$ |
7,359.6 |
|
|
$ |
6,820.3 |
|
Net income (loss) as % of net sales |
|
5.2 |
% |
|
|
6.3 |
% |
|
|
3.8 |
% |
|
|
4.9 |
% |
Adjusted EBITDA as % of net sales |
|
11.7 |
% |
|
|
12.0 |
% |
|
|
9.6 |
% |
|
|
10.5 |
% |
________________ | |||
1. | Amounts represent adjusting items included in SG&A expense and other (income) expense; remaining adjusting item balances are embedded within the other line item balances reported in this table. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241030804635/en/
INVESTOR CONTACT
Binit Sanghvi
VP, Capital Markets and Treasurer
Binit.Sanghvi@becn.com
972-369-8005
MEDIA CONTACT
Jennifer Lewis
VP, Communications and Corporate Social Responsibility
Jennifer.Lewis@becn.com
571-752-1048
Source: Beacon
FAQ
What was Beacon's (BECN) revenue in Q3 2024?
How much did Beacon (BECN) earn in Q3 2024?
What cost savings did Beacon (BECN) announce in Q3 2024?