Beacon Roofing Supply Reports Fourth Quarter and Fiscal Year 2019 Results – Yahoo Finance

HERNDON, Va.--(BUSINESS WIRE)--

Fourth quarter highlighted by strong residential roofing growth and robust operating cash performance

Executive Vice President and Chief Financial Officer Joseph Nowicki to depart later this fiscal year

Beacon Roofing Supply, Inc. (BECN) (Beacon or the Company) announced results today for its fourth quarter and fiscal year ended September 30, 2019 (2019). The Company also announced that Executive Vice President and Chief Financial Officer Joseph Nowicki will leave the Company later this fiscal year to shift focus to his family, charitable work and Board service. Mr. Nowicki will remain CFO during the Companys nationwide search for his successor and will support the transition of his duties until his departure.

Julian Francis, Beacons new President and Chief Executive Officer, stated: In joining Beacon, I recognize the great opportunity offered by this industry and the Companys demonstrated long-term growth, EBITDA margins and operating cash flow. We are now pivoting from a growth run via acquisitions to a focus on organic growth, gross margin expansion and operating expense rigor. Several positive elements are evident in our fourth quarter performance, including 11.5% organic daily sales growth in residential roofing, continued strong operating cash flow, and positive SG&A expense leverage. I see tremendous opportunities to substantially improve upon Beacons financial performance. Operationally, I am turning immediate focus to growing our customer base, differentiating e-commerce capabilities through our digital platform, and enhancing the productivity of our branch network. We are just getting started, and I am proud to lead Beacon forward into this exciting next stage of growth.

Fourth Quarter

Net sales increased 4.9% to $2.03 billion in 2019, from $1.94 billion in 2018. Consolidated residential roofing product sales increased 12.7%, consolidated non-residential roofing product sales increased 2.4%, and consolidated complementary product sales decreased 3.2% compared to the prior year. Existing markets net sales increased 4.8% compared to the prior year, driven mainly by 13.2% growth in residential roofing. The fourth quarter of fiscal years 2019 and 2018 had 64 and 63 business days, respectively.

Net income was $27.4 million, compared to $48.3 million in 2018. Net income attributable to common shareholders was $21.4 million, compared to $42.3 million in 2018. Diluted net income (loss) per share (EPS) was $0.27, compared to $0.54 in 2018. Fourth quarter results were negatively impacted by lower gross margins and higher acquisition-related costs compared to 2018. Fourth quarter results were positively impacted by existing market sales growth in residential roofing.

Adjusted Net Income (Loss) was $82.0 million, compared to $84.1 million in 2018. Adjusted EPS was $1.04, compared to $1.07 in 2018. Adjusted EBITDA was $169.1 million, compared to $178.3 million in 2018. (Please see the included financial tables for a reconciliation of Adjusted financial measures to the most directly comparable GAAP financial measures, as well as further detail on the components driving the net changes over the comparative periods.)

Fiscal Year

Net sales increased 10.7% to $7.11 billion, from $6.42 billion in 2018. Consolidated residential roofing product sales increased 10.0%, consolidated non-residential roofing product sales increased 4.2%, and consolidated complementary product sales increased 17.0% compared to the prior year. Existing markets net sales increased 3.3% compared to the prior year, driven mainly by 7.0% growth in residential roofing and improved pricing. Fiscal years 2019 and 2018 had 253 and 252 business days, respectively.

Net income (loss) was $(10.6) million, compared to $98.6 million in 2018. Net income (loss) attributable to common shareholders was $(34.6) million, compared to $80.6 million in 2018. EPS was $(0.51), compared to $1.05 in 2018. Fiscal year 2019 results were negatively impacted by higher acquisition-related costs compared to 2018 as well as increase in interest expense directly tied to the financing of the Allied acquisition. In addition, 2018 results include a $48.8 million net tax benefit resulting from the enactment of the Tax Cuts and Jobs Act of 2017. Fiscal year 2019 results were positively impacted by existing market sales growth in residential roofing.

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Adjusted Net Income (Loss) was $176.2 million, compared to $206.7 million in 2018. Adjusted EPS was $2.26, compared to $2.70 in 2018. Adjusted EBITDA was $476.0 million, compared to $483.6 million in 2018. (Please see the included financial tables for a reconciliation of Adjusted financial measures to the most directly comparable GAAP financial measures as well as further detail on the components driving the net changes over the comparative periods).

The Company will host a webcast and conference call today at 5:00 p.m. ET to discuss these results. The webcast link and call-in details are as follows:

To assure timely access, conference call participants should dial in prior to the 5:00 p.m. ET start time.

Forward-Looking Statements

This release contains information about management's view of the Company's future expectations, plans and prospects that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including, but not limited to, those set forth in the "Risk Factors" section of the Company's latest Form 10-K. In addition, the forward-looking statements included in this press release represent the Company's views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point, the Company specifically disclaims any obligation to do so, other than as required by federal securities laws. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this press release.

About Beacon Roofing Supply

Founded in 1928, Beacon Roofing Supply is the largest publicly traded distributor of residential and commercial roofing materials and complementary building products in North America, operating over 500 branches throughout all 50 states in the U.S. and 6 provinces in Canada. Beacon serves an extensive base of over 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 also 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. A Fortune 500 company, Beacons stock is traded on the Nasdaq Global Select Market under the ticker symbol BECN. To learn more about Beacon and its brands, please visit http://www.becn.com.

BEACON ROOFING SUPPLY, INC.

Consolidated Statements of Operations

(In thousands, except share and per share amounts)

Three Months Ended September 30,

Year Ended September 30,

2019

% of

Net

Sales

2018

% of

Net

Sales

2019

% of

Net

Sales

2018

% of

Net

Sales

Net sales

$

2,029,913

100.0

%

$

1,935,756

100.0

%

$

7,105,160

100.0

%

$

6,418,311

100.0

%

Cost of products sold

1,536,451

75.7

%

1,444,459

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Beacon Roofing Supply Reports Fourth Quarter and Fiscal Year 2019 Results - Yahoo Finance