- Record first quarter net sales driven by growth across all
three lines of business
- Disciplined execution led to better-than-expected gross
margin
- Footprint expansion from acquired and newly opened branches
enhancing customer reach and service
- Added to our rapidly growing specialty waterproofing
distribution platform with recent acquisition of Smalley &
Co.
- Continued execution on Ambition 2025 including strong growth
in digital, expanded private label product offering, pricing model
roll-out and customer experience initiative
Beacon (Nasdaq: BECN) (the “Company”, “we”, “our”) announced
results today for the first quarter ended March 31, 2024.
“Our record first quarter sales demonstrates the resilience of
our business model. We generated organic growth across all three
lines of business while delivering better than expected margins,”
said Julian Francis, Beacon’s President & CEO. “Our Ambition
2025 initiatives, including our investments in both organic and
inorganic growth contributed to the top and bottom line. In April,
we took an important step in pursuit of our goal to become the
premier specialty waterproofing platform with the acquisition of
Smalley & Company, an industry leader in both new construction
and restoration markets. Since the end of the fourth quarter, we
enhanced our customer reach by acquiring an additional 23 branches
and opening 5 greenfield locations. As we enter a key part of the
construction season, we stand ready with the products and team
members to deliver the high caliber service our customers expect.
Looking forward, we expect the fundamentals of our end markets to
remain supportive, underpinned by non-discretionary repair and
reroofing demand. Our focus will remain on the areas within our
control, including enhancing our customer experience, pricing, and
efficiency. I am pleased with our team’s achievements in the first
quarter of the year and look forward to helping our customers build
more.”
First Quarter Financial
Highlights
Three Months Ended March
31,
2024
2023
(Unaudited; $ in millions, except per
share amounts)
Net sales
$
1,912.4
$
1,732.3
Gross profit
$
473.2
$
441.9
Gross margin %
24.7
%
25.5
%
Operating expense
$
428.1
$
381.3
% of net sales
22.4
%
22.0
%
Adjusted Operating Expense1
$
403.5
$
356.8
% of net sales1
21.1
%
20.6
%
Net income (loss)
$
5.6
$
24.8
% of net sales
0.3
%
1.4
%
Adjusted Net Income (Loss)1
$
26.6
$
43.8
% of net sales1
1.4
%
2.5
%
Adjusted EBITDA1
$
103.1
$
113.0
% of net sales1
5.4
%
6.5
%
______________________
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.
First Quarter
Net sales increased 10.4% compared to the prior year to $1.91
billion, a Company record for first quarter net sales. The increase
in net sales was driven by organic volume growth including
greenfields. Estimated organic volumes (including greenfields) and
weighted-average selling price increased approximately 6-7% and
0-1%, respectively. Additionally, acquired branches contributed
more than 3% to the increase in first quarter net sales.
Residential roofing product sales increased 9.1%,
non-residential roofing product sales increased 17.6%, and
complementary product sales increased 5.4% compared to the prior
year. The increases in residential and non-residential roofing
product sales were primarily due to higher volumes driven by strong
underlying market demand. The increase in complementary product
sales was largely due to growth in waterproofing volumes as well as
the acquisition of additional waterproofing companies since March
31, 2023, partially offset by a modest decline in siding sales as a
result of lower volumes. The three-month periods ended March 31,
2024 and 2023 each had 64 business days.
Gross margin decreased to 24.7%, from 25.5% in the prior year,
as modestly higher product costs and a higher non-residential
product mix offset higher average selling prices for our products.
The increases in operating expense and Adjusted Operating Expense
were attributable to acquired branches, as well as higher organic
selling, general, and administrative (“SG&A”) expense. The
increase in organic SG&A expense was primarily from payroll and
employee benefit costs due to an increase in headcount to drive
growth coupled with wage inflation. Both operating expense as a
percent of sales and Adjusted Operating Expense as a percent of
sales were higher in the first quarter of 2024, driven by the same
factors.
Net income (loss) was $5.6 million, compared to $24.8 million in
the prior year. Adjusted EBITDA was $103.1 million, compared to
$113.0 million in the prior year. Net income (loss) per common
share (“EPS”) on a diluted basis was $0.09, compared to $0.25 in
the prior year.
To calculate approximate weighted average selling price and
product cost changes, we review organic U.S. warehouse sales of the
same items sold regionally period over period and normalize the
data for non-representative outliers. To calculate estimated
volumes, we subtract the change in weighted average selling price,
as described above, from the total changes in sales, excluding
acquisitions and dispositions. As a result, and especially in high
inflationary periods, the weighted average selling price and
estimated volume changes may not be directly comparable to changes
reported in prior periods.
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 (inclusive of partial month activity),
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 today at
5:00 p.m. ET to discuss these results. Details for the earnings
release event are as follows:
What:
Beacon First Quarter 2024 Earnings
Call
When:
Thursday, May 2, 2024
Time:
5:00 p.m. ET
Access:
Register for the conference call or
webcast by visiting:
Beacon Investor Relations – Events &
Presentations
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 5:00 p.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 U.S. Securities and Exchange Commission. The Company may
not succeed in addressing these and other risks. Consequently, all
forward-looking statements in this release are qualified by the
factors, risks and uncertainties contained therein. 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
Founded in 1928, Beacon is a Fortune 500, publicly traded
distributor of building products, including roofing materials and
complementary products, such as siding and waterproofing. The
Company operates over 550 branches throughout all 50 states in the
U.S. and 7 provinces in Canada. Beacon serves an extensive base of
nearly 100,000 customers, utilizing its vast branch network and
diverse service offerings to provide high-quality products and
support throughout the entire business lifecycle. Beacon offers its
own private label brand, TRI-BUILT®, and has a proprietary digital
account management suite, Beacon PRO+, which allows customers to
manage their businesses online. Beacon’s stock is traded on the
Nasdaq Global Select Market under the ticker symbol BECN. To learn
more about Beacon, please visit www.becn.com.
BEACON ROOFING SUPPLY,
INC.
Consolidated Statements of
Operations
(Unaudited; in millions, except
per share amounts)
Three Months Ended March
31,
2024
% of
Net Sales
2023
% of
Net Sales
Net sales
$
1,912.4
100.0
%
$
1,732.3
100.0
%
Cost of products sold
1,439.2
75.3
%
1,290.4
74.5
%
Gross profit
473.2
24.7
%
441.9
25.5
%
Operating expense:
Selling, general and administrative
381.5
20.0
%
338.3
19.5
%
Depreciation
25.5
1.3
%
20.7
1.2
%
Amortization
21.1
1.1
%
22.3
1.3
%
Total operating expense
428.1
22.4
%
381.3
22.0
%
Income (loss) from operations
45.1
2.3
%
60.6
3.5
%
Interest expense, financing costs and
other, net
38.6
2.0
%
27.8
1.6
%
Loss on debt extinguishment
2.4
0.1
%
—
—
%
Income (loss) before provision for income
taxes
4.1
0.2
%
32.8
1.9
%
Provision for (benefit from) income
taxes
(1.5
)
(0.1
)%
8.0
0.5
%
Net income (loss)
$
5.6
0.3
%
$
24.8
1.4
%
Reconciliation of net income (loss) to net
income (loss) attributable to common stockholders:
Net income (loss)
$
5.6
0.3
%
$
24.8
1.4
%
Dividends on preferred stock
—
—
%
(6.0
)
(0.3
)%
Undistributed income allocated to
participating securities
—
—
%
(2.5
)
(0.2
)%
Net income (loss) attributable to common
stockholders
$
5.6
0.3
%
$
16.3
0.9
%
Weighted-average common shares
outstanding:
Basic
63.6
64.3
Diluted
64.8
65.6
Net income (loss) per common share:
Basic
$
0.09
$
0.25
Diluted
$
0.09
$
0.25
BEACON ROOFING SUPPLY,
INC.
Consolidated Balance
Sheets
(Unaudited; in millions)
March 31,
December 31,
March 31,
2024
2023
2023
Assets
Current assets:
Cash and cash equivalents
$
134.6
$
84.0
$
74.2
Accounts receivable, net
1,188.5
1,140.2
1,003.7
Inventories, net
1,537.6
1,227.9
1,292.8
Prepaid expenses and other current
assets
520.1
444.6
345.7
Total current assets
3,380.8
2,896.7
2,716.4
Property and equipment, net
457.0
436.4
350.8
Goodwill
2,011.1
1,952.6
1,921.1
Intangibles, net
434.0
403.5
437.2
Operating lease right-of-use assets,
net
517.3
503.6
460.0
Deferred income taxes, net
2.1
2.1
9.5
Other assets, net
16.2
12.8
8.1
Total assets
$
6,818.5
$
6,207.7
$
5,903.1
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable
$
1,247.2
$
942.8
$
879.9
Accrued expenses
423.1
498.6
306.4
Current portion of operating lease
liabilities
92.0
89.7
95.8
Current portion of finance lease
liabilities
29.1
26.2
18.0
Current portion of long-term debt
15.9
10.0
10.0
Total current liabilities
1,807.3
1,567.3
1,310.1
Borrowings under revolving lines of
credit, net
111.5
80.0
234.8
Long-term debt, net
2,487.6
2,192.3
1,604.8
Deferred income taxes, net
24.0
20.1
0.3
Other long-term liabilities
1.3
0.5
—
Operating lease liabilities
436.5
423.7
374.6
Finance lease liabilities
109.8
100.3
72.7
Total liabilities
4,978.0
4,384.2
3,597.3
Convertible Preferred Stock
—
—
399.2
Stockholders' equity:
Common stock
0.6
0.6
0.6
Undesignated preferred stock
—
—
—
Additional paid-in capital
1,228.6
1,218.4
1,197.2
Retained earnings
624.4
618.8
724.5
Accumulated other comprehensive income
(loss)
(13.1
)
(14.3
)
(15.7
)
Total stockholders' equity
1,840.5
1,823.5
1,906.6
Total liabilities and stockholders'
equity
$
6,818.5
$
6,207.7
$
5,903.1
BEACON ROOFING SUPPLY,
INC.
Consolidated Statements of
Cash Flows
(Unaudited; in millions)
Three Months Ended March
31,
2024
2023
Operating Activities
Net income (loss)
$
5.6
$
24.8
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating activities:
Depreciation and amortization
46.6
43.0
Stock-based compensation
7.4
6.0
Certain interest expense and other
financing costs
0.5
1.1
Loss on debt extinguishment
2.4
—
Gain on sale of fixed assets and other
(1.6
)
(4.2
)
Deferred income taxes
2.8
1.1
Changes in operating assets and
liabilities:
Accounts receivable
(38.4
)
8.6
Inventories
(303.2
)
40.0
Prepaid expenses and other current
assets
(69.2
)
68.7
Accounts payable and accrued expenses
207.0
(88.8
)
Other assets and liabilities
(0.7
)
0.9
Net cash provided by (used in) operating
activities
(140.8
)
101.2
Investing Activities
Capital expenditures
(27.0
)
(22.2
)
Acquisition of business, net
(109.0
)
(27.4
)
Proceeds from sale of assets
1.7
5.1
Purchases of investments
(0.8
)
—
Net cash provided by (used in) investing
activities
(135.1
)
(44.5
)
Financing Activities
Borrowings under revolving lines of
credit
677.8
442.0
Payments under revolving lines of
credit
(646.8
)
(462.5
)
Borrowings under term loan
300.0
—
Payments under term loan
—
(2.5
)
Payment of debt issuance costs
(0.2
)
—
Payments under equipment financing
facilities and finance leases
(6.4
)
(4.3
)
Payment of fees for the repurchase of
convertible Preferred Stock
(0.1
)
—
Repurchase and retirement of common stock,
net
—
(20.9
)
Proceeds from employee stock purchase
plan
4.1
—
Payment of dividends on Preferred
Stock
—
(6.0
)
Proceeds from issuance of common stock
related to equity awards
3.5
4.8
Payment of taxes related to net share
settlement of equity awards
(4.8
)
(0.8
)
Net cash provided by (used in) financing
activities
327.1
(50.2
)
Effect of exchange rate changes on cash
and cash equivalents
(0.6
)
—
Net increase (decrease) in cash and cash
equivalents
50.6
6.5
Cash and cash equivalents, beginning of
period
84.0
67.7
Cash and cash equivalents, end of
period
$
134.6
$
74.2
Supplemental Cash Flow
Information
Cash paid during the period for:
Interest
$
40.6
$
20.8
Income taxes, net of refunds
$
3.6
$
5.9
Supplemental Disclosure of Non-Cash
Activities
Amounts accrued for repurchases of common
stock, inclusive of excise tax
$
—
$
2.2
BEACON ROOFING SUPPLY,
INC.
Consolidated Sales by Line of
Business
(Unaudited; in millions)
Sales by Line of
Business
Three Months Ended March
31,
Year-over-Year Change
2024
2023
Net Sales
Mix %
Net Sales
Mix %
$
%
Residential roofing products
$
927.4
48.5
%
$
849.8
49.0
%
$
77.6
9.1
%
Non-residential roofing products
528.6
27.6
%
449.6
26.0
%
79.0
17.6
%
Complementary building products
456.4
23.9
%
432.9
25.0
%
23.5
5.4
%
$
1,912.4
100.0
%
$
1,732.3
100.0
%
$
180.1
10.4
%
Sales by Business
Day1,2
Three Months Ended March
31,
Year-over-Year Change
2024
2023
Net Sales
Mix %
Net Sales
Mix %
$
%
Residential roofing products
$
14.5
48.5
%
$
13.3
49.0
%
$
1.2
9.1
%
Non-residential roofing products
8.3
27.6
%
7.0
26.0
%
1.3
17.6
%
Complementary building products
7.1
23.9
%
6.8
25.0
%
0.3
5.4
%
$
29.9
100.0
%
$
27.1
100.0
%
$
2.8
10.4
%
______________________
1.
The three-month periods ended
March 31, 2024 and 2023 each had 64 business days.
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 March 31,
2024
Acquisition costs
$
3.0
$
21.1
$
1.0
$
—
$
25.1
Restructuring costs1
0.5
—
0.5
2.4
3.4
Total adjusting items
$
3.5
$
21.1
$
1.5
$
2.4
$
28.5
Three Months Ended March 31,
2023
Acquisition costs
$
1.7
$
22.3
$
1.0
$
—
$
25.0
Restructuring costs
0.5
—
0.3
—
0.8
Total adjusting items
$
2.2
$
22.3
$
1.3
$
—
$
25.8
______________________
1.
Other (income) expense for the three
months ended March 31, 2024 consists of a loss on debt
extinguishment of $2.4 million as a result of the refinancing of
our 2028 Term Loan.
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 March
31,
2024
2023
Operating expense
$
428.1
$
381.3
Acquisition costs
(24.1
)
(24.0
)
Restructuring costs
(0.5
)
(0.5
)
Adjusted Operating Expense
$
403.5
$
356.8
Net sales
$
1,912.4
$
1,732.3
Operating expense as % of sales
22.4
%
22.0
%
Adjusted Operating Expense as % of
sales
21.1
%
20.6
%
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 March
31,
2024
2023
Net income (loss)
$
5.6
$
24.8
Adjusting items:
Acquisition costs
25.1
25.0
Restructuring costs
3.4
0.8
Total adjusting items
28.5
25.8
Less: tax impact of adjusting items1
(7.5
)
(6.8
)
Total adjustments, net of tax
21.0
19.0
Adjusted Net Income (Loss)
$
26.6
$
43.8
Net sales
$
1,912.4
$
1,732.3
Net income (loss) as % of sales
0.3
%
1.4
%
Adjusted Net Income (Loss) as % of
sales
1.4
%
2.5
%
______________________
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 March 31, 2024 and 2023 were calculated
using a blended effective tax rate of 26.3% and 26.4%,
respectively.
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 March
31,
2024
2023
Net income (loss)
$
5.6
$
24.8
Interest expense, net
39.1
29.0
Income taxes
(1.5
)
8.0
Depreciation and amortization
46.6
43.0
Stock-based compensation
7.4
6.0
Acquisition costs1
3.0
1.7
Restructuring costs1
2.9
0.5
Adjusted EBITDA
$
103.1
$
113.0
Net sales
$
1,912.4
$
1,732.3
Net income (loss) as % of sales
0.3
%
1.4
%
Adjusted EBITDA as % of sales
5.4
%
6.5
%
______________________
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/20240502653842/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
Beacon Roofing Supply (NASDAQ:BECN)
過去 株価チャート
から 5 2024 まで 6 2024
Beacon Roofing Supply (NASDAQ:BECN)
過去 株価チャート
から 6 2023 まで 6 2024