Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - BEACON ROOFING SUPPLY INC | v409348_8-k.htm |
| EX-99.2 - EXHIBIT 99.2 - BEACON ROOFING SUPPLY INC | v409348_ex99-2.htm |
Exhibit 99.1
Beacon Roofing Supply Reports Second Quarter 2015 Results
| · | Second quarter sales of $413.2 million vs. $384.9 million in prior year (7.4% growth) |
| · | Second quarter EPS of $(0.20) vs. $(0.25) in prior year |
| · | Record first half sales of $1,009.2 million vs. $937.0 million in prior year (7.7% growth) |
| · | First half EPS of $0.06 vs. $0.06 in prior year |
| · | Opened five greenfield locations in 2015 |
HERNDON, VA. — (BUSINESS WIRE) — May 8, 2015 — Beacon Roofing Supply, Inc. (the "Company") (NASDAQ: BECN) announced results today for its second quarter ended March 31, 2015 of the fiscal year ending September 30, 2015 (“Fiscal 2015”).
Paul Isabella, the Company’s President and Chief Executive Officer, stated: “I am pleased to report 7.4% sales growth in the quarter and 7.7% sales growth year-to-date, which resulted in Beacon surpassing the $1 billion mark in first half sales for the first time in Company history. This achievement underscores our continued focus on growth through existing markets, acquisitions and greenfields. We already have opened five new branches in 2015, with more to come this year. Although our second quarter always is challenging due to winter weather conditions, and despite record snowfalls in our Northeast market, we saw growth in our residential product line of 9.7%. Complementary product sales remain a bright spot, with 13.7% growth in the quarter, and commercial product sales also grew in the quarter and year-to-date. Just as important was our 80 basis point improvement in gross margins. Our team also did an excellent job driving cost out of our business. Excluding the incremental costs from greenfields and acquisitions, our operating expense is down year-over-year. This cost reduction positions us well to achieve lower year over year operating expenses as a percentage of sales and greater profitability as demand increases through our third and fourth quarters.”
Second Quarter
Total sales increased 7.4% to $413.2 million in 2015, from $384.9 million in 2014. On an overall consolidated basis, residential roofing product sales increased 9.7%, non-residential roofing product sales increased 1.2%, and complementary product sales increased 13.7% over the prior year. Existing market sales, excluding acquisitions, increased 4.4% for the quarter. The second quarter of 2015 and 2014 both had the same number of business days.
The net loss for the second quarter was $9.8 million, compared to $12.1 million in 2014. The second quarter net loss per share was $0.20, compared to $0.25 in 2014. The net loss for the quarter was favorably impacted by gross margins which improved by 80 basis points over the prior year. This was partially offset by increased operating expenses driven by the incremental costs associated with the two acquisitions made in the first quarter and the greenfields opened in the last 18 months.
First Half
Total sales increased 7.7% to a first half record of $1,009.2 million in 2015, from $937.0 million in 2014. On an overall consolidated basis, residential roofing product sales increased 10.5%, non-residential roofing product sales increased 0.5%, and complementary product sales increased 16.7% over the prior year. Existing market sales, excluding acquisitions, increased 4.4% year to date. The first half of 2015 and 2014 both had the same number of business days.
Net income for the first half was $3.1 million, compared to $2.8 million in 2014. First half diluted net income per share was $0.06, compared to $0.06 in 2014. Net income for the half was favorably impacted by gross margins which improved by 40 bps over the prior year, and unfavorably impacted by increased operating expenses which were primarily driven by the incremental costs associated with the two acquisitions made in the first quarter and the greenfields opened in the last 18 months.
Cash flow from operations was $62.5 million in 2015, compared to $36.1 million in 2014. This increase in operating cash flow was primarily impacted by changes in working capital and higher net income in the current year. Cash on hand decreased by $11.1 million due primarily to an increase in cash used for acquisition activities in 2015. Through positive working capital management and higher net income, the Company was able to fund two acquisitions, while improving its leverage ratio from 1.68 as compared to 1.96 at the end of the first quarter.
The Company will host a webcast and conference call today at 10:00 a.m. (EST) to discuss these results. The live webcast of the call, along with a webcast replay after the call, can be accessed at http://ir.beaconroofingsupply.com/events.cfm (the “Events & Presentations” page of the “Investor Relations” section of the Company’s web site). There will be a slide presentation of the results available on that page of the website as well. For those unable to connect to the Internet or who may wish to ask questions, the conference call dial-in number is 719-325-2281. To assure timely access, call participants should call in before 10:00 a.m.
About Beacon Roofing Supply
Founded in 1928, Beacon Roofing Supply, Inc. (NASDAQ: BECN) is the largest publicly traded distributor of residential and commercial roofing materials and complementary building products, operating 271 branches throughout 42 states in the U.S. and six provinces in Canada. In fiscal 2014, Beacon had sales of $2.3 billion. The company employs more than 3,000 associates. To learn more about Beacon and its family of regional brands, please visit www.becn.com.
Forward-Looking Statements: This release contains information about management's view of the Company's future expectations, plans and prospects that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including, but not limited to, those set forth in the "Risk Factors" section of the Company's latest Form 10-K. In addition, the forward-looking statements included in this press release represent the Company's views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point, the Company specifically disclaims any obligation to do so, other than as required by federal securities laws. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this press release.
BECN-F
Beacon Roofing Supply, Inc.
Joseph Nowicki, 571-323-3940
Executive Vice President & Chief Financial Officer
JNowicki@becn.com
Source: Beacon Roofing Supply, Inc.
News Provided by Acquire Media
| BEACON ROOFING SUPPLY, INC |
| Consolidated Statements of Operations |
| (unaudited; in thousands, except share and per share amounts) |
| Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||
| 2015 | % of Net Sales | 2014 | % of Net Sales | 2015 | % of Net Sales | 2014 | % of Net Sales | |||||||||||||||||
| Net sales | $ | 413,184 | 100.0% | $ | 384,885 | 100.0% | $ | 1,009,226 | 100.0% | $ | 937,014 | 100.0% | ||||||||||||
| Cost of products sold | 316,411 | 76.6% | 298,093 | 77.4% | 774,888 | 76.8% | 723,317 | 77.2% | ||||||||||||||||
| Gross profit | 96,773 | 23.4% | 86,792 | 22.6% | 234,338 | 23.2% | 213,697 | 22.8% | ||||||||||||||||
| Operating expenses | 110,979 | 26.9% | 104,004 | 27.0% | 224,724 | 22.3% | 203,822 | 21.8% | ||||||||||||||||
| Income (loss) from operations | (14,206 | ) | -3.4% | (17,212 | ) | -4.4% | 9,614 | 1.0% | 9,875 | 1.0% | ||||||||||||||
| Interest expense, financing costs and other | 2,522 | 0.6% | 2,532 | 0.7% | 5,177 | 0.5% | 5,197 | 0.6% | ||||||||||||||||
| Income (loss) before provision for income taxes | (16,728 | ) | -4.0% | (19,744 | ) | -5.1% | 4,437 | 0.4% | 4,678 | 0.5% | ||||||||||||||
| Provision (benefit) for income taxes | (6,942 | ) | -1.7% | (7,627 | ) | -2.0% | 1,316 | 0.1% | 1,838 | 0.2% | ||||||||||||||
| Net income (loss) | $ | (9,786 | ) | -2.4% | $ | (12,117 | ) | -3.1% | $ | 3,121 | 0.3% | $ | 2,840 | 0.3% | ||||||||||
| Net income (loss) per share: | ||||||||||||||||||||||||
| Basic | $ | (0.20 | ) | $ | (0.25 | ) | $ | 0.06 | $ | 0.06 | ||||||||||||||
| Diluted | $ | (0.20 | ) | $ | (0.25 | ) | $ | 0.06 | $ | 0.06 | ||||||||||||||
| Weighted average shares used in computing net income (loss) per share: | ||||||||||||||||||||||||
| Basic | 49,513,141 | 49,260,044 | 49,470,528 | 49,120,893 | ||||||||||||||||||||
| Diluted | 49,513,141 | 49,260,044 | 50,029,935 | 49,956,072 | ||||||||||||||||||||
| BEACON ROOFING SUPPLY, INC |
| Consolidated Balance Sheets |
| (in thousands) |
| March 31, 2015 | September 30, 2014 | March 31, 2014 | ||||||||||
| ASSETS | (unaudited) | (audited) | (unaudited) | |||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 22,956 | $ | 54,472 | $ | 34,041 | ||||||
| Accounts receivable, net | 248,154 | 360,802 | 230,379 | |||||||||
| Inventories, net | 361,317 | 301,626 | 421,756 | |||||||||
| Prepaid expenses and other current assets | 73,490 | 66,828 | 105,401 | |||||||||
| Deferred income taxes | 14,789 | 14,610 | 14,226 | |||||||||
| Total current assets | 720,706 | 798,338 | 805,803 | |||||||||
| Property and equipment, net | 85,054 | 88,565 | 70,759 | |||||||||
| Goodwill | 488,324 | 466,206 | 466,658 | |||||||||
| Intangible assets, net | 91,650 | 72,266 | 79,207 | |||||||||
| Other assets, net | 4,771 | 8,521 | 9,120 | |||||||||
| TOTAL ASSETS | $ | 1,390,505 | $ | 1,433,896 | $ | 1,431,547 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable | $ | 202,713 | $ | 220,834 | $ | 308,209 | ||||||
| Accrued expenses | 80,546 | 80,285 | 72,445 | |||||||||
| Borrowings under revolving lines of credit | 3,948 | 18,514 | - | |||||||||
| Current portion of long-term obligations | 16,612 | 16,602 | 15,346 | |||||||||
| Total current liabilities | 303,819 | 336,235 | 396,000 | |||||||||
| Senior notes payable, net of current portion | 180,000 | 185,625 | 191,250 | |||||||||
| Deferred income taxes | 63,426 | 64,100 | 60,350 | |||||||||
| Long-term obligations under equipment financing and other, | ||||||||||||
| net of current portion | 24,779 | 30,835 | 20,591 | |||||||||
| Total liabilities | 572,024 | 616,795 | 668,191 | |||||||||
| Commitments and contingencies | ||||||||||||
| Stockholders' equity: | ||||||||||||
| Common stock | 495 | 493 | 492 | |||||||||
| Undesignated preferred stock | - | - | - | |||||||||
| Additional paid-in capital | 335,972 | 328,059 | 324,504 | |||||||||
| Retained earnings | 498,249 | 495,128 | 444,122 | |||||||||
| Accumulated other comprehensive loss | (16,235 | ) | (6,579 | ) | (5,762 | ) | ||||||
| Total stockholders' equity | 818,481 | 817,101 | 763,356 | |||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,390,505 | $ | 1,433,896 | $ | 1,431,547 | ||||||
| BEACON ROOFING SUPPLY, INC |
| Consolidated Statements of Cash Flows |
| (unaudited; in thousands) |
| Six Months Ended March 31, | ||||||||
| 2015 | 2014 | |||||||
| Operating activities: | ||||||||
| Net income | $ | 3,121 | $ | 2,840 | ||||
| Adjustments to reconcile net income | ||||||||
| to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 16,430 | 15,281 | ||||||
| Stock-based compensation | 4,744 | 5,489 | ||||||
| Certain interest expense and other financing costs | 543 | 545 | ||||||
| Gain on sale of fixed assets | (273 | ) | (480 | ) | ||||
| Deferred income taxes | 287 | (1,418 | ) | |||||
| Other, net | 181 | (3 | ) | |||||
| Changes in assets and liabilities, net of the effects of | ||||||||
| businesses acquired: | ||||||||
| Accounts receivable | 118,564 | 97,706 | ||||||
| Inventories | (50,305 | ) | (171,748 | ) | ||||
| Prepaid expenses and other assets | (5,007 | ) | (43,252 | ) | ||||
| Accounts payable and accrued expenses | (25,800 | ) | 131,113 | |||||
| Net cash provided by operating activities | 62,485 | 36,073 | ||||||
| Investing activities: | ||||||||
| Purchases of property and equipment | (5,384 | ) | (11,773 | ) | ||||
| Acquisition of businesses | (69,745 | ) | - | |||||
| Proceeds from sales of assets | 367 | 394 | ||||||
| Net cash used in investing activities | (74,762 | ) | (11,379 | ) | ||||
| Financing activities: | ||||||||
| Repayments under revolving lines of credit, net of borrowings | (13,632 | ) | (47,398 | ) | ||||
| Borrowings under equipment financing facilities and other | - | 10,971 | ||||||
| Repayments under equipment financing facilities and other | (2,758 | ) | (2,441 | ) | ||||
| Repayments under senior term loan | (5,625 | ) | (5,625 | ) | ||||
| Proceeds from exercise of options | 3,171 | 6,057 | ||||||
| Excess tax benefit from stock-based compensation | 262 | 876 | ||||||
| Net cash used in financing activities | (18,582 | ) | (37,560 | ) | ||||
| Effect of exchange rate changes on cash | (657 | ) | (120 | ) | ||||
| Net decrease in cash and cash equivalents | (31,516 | ) | (12,986 | ) | ||||
| Cash and cash equivalents, beginning of period | 54,472 | 47,027 | ||||||
| Cash and cash equivalents, end of period | $ | 22,956 | $ | 34,041 | ||||
| BEACON ROOFING SUPPLY, INC | ||||||||||
| (unaudited; dollars in millions) | ||||||||||
| Consolidated Sales by Product Line | ||||||||||
| Three Months Ended | ||||||||||
| March 31, 2015 | March 31, 2014 | |||||||||||||||||||||||
| Net Sales | Mix % | Net Sales | Mix % | Change | ||||||||||||||||||||
| Residential roofing products | $ | 204.7 | 49.5% | $ | 186.6 | 48.5% | $ | 18.1 | 9.7% | |||||||||||||||
| Non-residential roofing products | 138.0 | 33.4% | 136.3 | 35.4% | 1.7 | 1.2% | ||||||||||||||||||
| Complementary building products | 70.5 | 17.1% | 62.0 | 16.1% | 8.5 | 13.7% | ||||||||||||||||||
| $ | 413.2 | 100.0% | $ | 384.9 | 100.0% | $ | 28.3 | 7.4% | ||||||||||||||||
| Consolidated Sales by Product Line for Existing Markets* |
| Three Months Ended |
| March 31, 2015 | March 31, 2014 | |||||||||||||||||||||||
| Net Sales | Mix % | Net Sales | Mix % | Change | ||||||||||||||||||||
| Residential roofing products | $ | 197.4 | 49.1% | $ | 186.6 | 48.5% | $ | 10.8 | 5.8% | |||||||||||||||
| Non-residential roofing products | 137.4 | 34.2% | 136.3 | 35.4% | 1.1 | 0.8% | ||||||||||||||||||
| Complementary building products | 66.9 | 16.7% | 62.0 | 16.1% | 4.9 | 7.9% | ||||||||||||||||||
| $ | 401.7 | 100.0% | $ | 384.9 | 100.0% | $ | 16.8 | 4.4% | ||||||||||||||||
| Existing Market Sales By Business Day** |
| Three Months Ended |
| March 31, 2015 | March 31, 2014 | |||||||||||||||||||||||
| Net Sales | Mix % | Net Sales | Mix % | Change | ||||||||||||||||||||
| Residential roofing products | $ | 3.133 | 49.1% | $ | 2.962 | 48.5% | $ | 0.171 | 5.8% | |||||||||||||||
| Non-residential roofing products | 2.181 | 34.2% | 2.164 | 35.4% | 0.017 | 0.8% | ||||||||||||||||||
| Complementary building products | 1.062 | 16.7% | 0.984 | 16.1% | 0.078 | 7.9% | ||||||||||||||||||
| $ | 6.376 | 100.0% | $ | 6.110 | 100.0% | $ | 0.266 | 4.4% | ||||||||||||||||
| Note: Some totals above may not foot due to rounding. |
| *Excludes branches acquired during the four quarters prior to the start of the second quarter of Fiscal 2015. |
| **There were 63 business days in each of the quarters ended March 31, 2015 and 2014. |
| BEACON ROOFING SUPPLY, INC | ||||||||||
| (unaudited; dollars in millions) | ||||||||||
| Consolidated Sales by Product Line | ||||||||||
| Six Months Ended | ||||||||||
| March 31, 2015 | March 31, 2014 | |||||||||||||||||||||||
| Net Sales | Mix % | Net Sales | Mix % | Change | ||||||||||||||||||||
| Residential roofing products | $ | 484.2 | 48.0% | $ | 438.0 | 46.7% | $ | 46.2 | 10.5% | |||||||||||||||
| Non-residential roofing products | 356.8 | 35.4% | 354.9 | 37.9% | 1.9 | 0.5% | ||||||||||||||||||
| Complementary building products | 168.2 | 16.6% | 144.1 | 15.4% | 24.1 | 16.7% | ||||||||||||||||||
| $ | 1,009.2 | 100.0% | $ | 937.0 | 100.0% | $ | 72.2 | 7.7% | ||||||||||||||||
| Consolidated Sales by Product Line for Existing Markets* |
| Six Months Ended |
| March 31, 2015 | March 31, 2014 | |||||||||||||||||||||||
| Net Sales | Mix % | Net Sales | Mix % | Change | ||||||||||||||||||||
| Residential roofing products | $ | 467.1 | 47.8% | $ | 438.0 | 46.7% | $ | 29.2 | 6.7% | |||||||||||||||
| Non-residential roofing products | 355.2 | 36.3% | 354.9 | 37.9% | 0.3 | 0.0% | ||||||||||||||||||
| Complementary building products | 155.8 | 15.9% | 144.1 | 15.4% | 11.6 | 8.1% | ||||||||||||||||||
| $ | 978.1 | 100.0% | $ | 937.0 | 100.0% | $ | 41.1 | 4.4% | ||||||||||||||||
| Existing Market Sales By Business Day** |
| Six Months Ended |
| March 31, 2015 | March 31, 2014 | |||||||||||||||||||||||
| Net Sales | Mix % | Net Sales | Mix % | Change | ||||||||||||||||||||
| Residential roofing products | $ | 3.737 | 47.8% | $ | 3.504 | 46.7% | $ | 0.233 | 6.7% | |||||||||||||||
| Non-residential roofing products | 2.842 | 36.3% | 2.839 | 37.9% | 0.002 | 0.0% | ||||||||||||||||||
| Complementary building products | 1.246 | 15.9% | 1.153 | 15.4% | 0.093 | 8.1% | ||||||||||||||||||
| $ | 7.825 | 100.0% | $ | 7.496 | 100.0% | $ | 0.328 | 4.4% | ||||||||||||||||
| Note: Some totals above may not foot due to rounding. |
| *Excludes branches acquired during the four quarters prior to the start of Fiscal 2015. |
| **There were 125 business days in each of the six months ended March 31, 2015 and 2014. |