- Ambition 2025 initiatives delivered growth in a challenging
environment with higher sales across all business lines
- Strong execution drove fourth quarter results, with
contributions from operational excellence initiatives and newly
opened greenfield and acquired branches
- Margin enhancing private label and digital channel achieved
record fourth quarter and full year sales and penetration
- Strong fourth quarter cash flow, prudent balance sheet
management, and ample liquidity
- Management to provide strategic review, growth drivers and
financial targets at Investor Day on March 13th
Beacon (Nasdaq: BECN) (the “Company”, “we”, “our”), the leading
publicly-traded wholesale distributor specializing in roofing,
waterproofing, and related exterior products, announced results
today for the fourth quarter and full year ended December 31, 2024
(“2024”).
“Despite the challenging economic environment in 2024, we
delivered record fourth quarter and full year sales and our highest
fourth quarter Adjusted EBITDA in history,” said Julian Francis,
Beacon’s President & CEO. “Since the announcement of our
Ambition 2025 plan, we have faced the effects of a global pandemic,
near-record levels of inflation, escalating interest rates, and an
increasingly challenging housing market. Notwithstanding these
headwinds, our Ambition 2025 plan has delivered multiple paths of
growth every year and across all of our business lines. We have
also continued to meet our targets, including reporting
year-over-year net sales growth for the last 16 quarters,
highlighting the resilience of our business model. Moreover, our
strong balance sheet capacity provided the flexibility to invest in
our future growth including continued high levels of
growth-oriented capital expenditures and enhancements to our
operational capabilities, including sales productivity, working
capital management, and our pricing model. This investment
supported the opening of 19 greenfield locations and the
acquisition of 42 branches, enhancing our customer reach and
service. Our achievements to date wouldn’t have been possible
without the unwavering focus of the entire Beacon team, and I’m
incredibly proud of our team members for delivering high caliber
customer service, while expanding sales through our digital
platform and private label program.
“In addition, during 2024, we returned $225 million in capital
to shareholders through common share repurchases while subsequently
reducing debt leverage to our target range as of December 31, 2024.
We ended the year with strong fourth quarter cash generation,
providing ample ability to deploy capital to both profitable growth
and shareholder returns. Looking ahead, our markets are large and
attractive, and we are poised to accelerate our successful strategy
in 2025 and beyond. Our 8,000 team members stand ready to help our
customers build more, and we look forward to leveraging
opportunities and enhancing value for all stakeholders.”
Fourth Quarter Financial
Highlights
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
(Unaudited; $ in millions)
Net sales
$
2,403.6
$
2,299.5
$
9,763.2
$
9,119.8
Gross profit
$
617.5
$
592.0
$
2,504.8
$
2,342.7
Gross margin %
25.7
%
25.7
%
25.7
%
25.7
%
Operating expense
$
459.7
$
428.5
$
1,839.4
$
1,630.5
% of net sales
19.1
%
18.6
%
18.9
%
17.9
%
Adjusted Operating Expense1
$
433.6
$
408.5
$
1,720.9
$
1,538.1
% of net sales1
18.0
%
17.8
%
17.6
%
16.9
%
Net income (loss)
$
83.6
$
95.1
$
361.7
$
435.0
% of net sales
3.5
%
4.1
%
3.7
%
4.8
%
Adjusted Net Income (Loss)1
$
104.2
$
111.2
$
456.1
$
507.9
% of net sales1
4.3
%
4.8
%
4.7
%
5.6
%
Adjusted EBITDA1
$
222.5
$
216.7
$
930.2
$
929.6
% of net sales1
9.3
%
9.4
%
9.5
%
10.2
%
- 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 to $2.40 billion, 4.5% (2.8% on a per-day
basis) growth compared to the prior year, and a Company record for
fourth quarter net sales. Weighted-average selling price increased
approximately 1-2%, while estimated organic volumes, including
greenfields, decreased approximately 1-2% (3-4% on a per-day
basis). Additionally, acquired branches contributed approximately
5.0% to the increase in fourth quarter net sales.
Residential roofing product sales increased 0.8% (decreased 0.8%
on a per-day basis), non-residential roofing product sales
increased 5.5% (3.8% on a per-day basis), and complementary product
sales increased 11.7% (9.9% on a per-day basis) compared to the
prior year. The increase in residential roofing product sales was
primarily due to price execution. The increase in non-residential
roofing product sales was primarily due to higher volumes driven by
solid market execution driving above market growth. The increase in
complementary product sales was largely due to two waterproofing
acquisitions totaling 15 branches since December 31, 2023. The
three-month periods ended December 31, 2024 and 2023 had 62 and 61
business days, respectively.
Gross margin of 25.7% remained unchanged from the prior year as
higher average selling prices for our products were offset by
higher product costs and a modestly higher non-residential product
mix. 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,
including for greenfields. Acquired branches and greenfields
contributed $22.8 million and $7.4 million, respectively, to the
increase in SG&A expense. Organic SG&A expense, including
greenfields, increased $1.6 million primarily due to an increase in
warehouse operating costs, partially offset by a decrease in
payroll and employee benefit costs. The increase in warehouse
operating costs was primarily due to an increase in rent expense
across our existing locations coupled with greenfields opened
during the year, which contributed $2.5 million to the increase.
The decrease in payroll and employee benefit costs was due to a
reduction in headcount in response to market conditions at the end
of the third quarter of 2024 resulting in a lower average number of
employees during the fourth quarter of 2024. Organic SG&A
expense also includes an increase in one-time acquisition and
restructuring costs of $2.8 million. Excluding the increase in
one-time acquisition and restructuring costs, organic SG&A
expense decreased $1.2 million. Both operating expense as a percent
of net sales and Adjusted Operating Expense as a percent of net
sales were higher in 2024, primarily driven by the same
factors.
Net income (loss) was $83.6 million, compared to $95.1 million
in the prior year. Adjusted EBITDA was $222.5 million, compared to
$216.7 million in the prior year. Net income (loss) per common
share (“EPS”) on a diluted basis was $1.32, compared to $1.47 in
the prior year. Fourth quarter results compared to the prior year
period were largely driven by higher operating expense, partially
offset by higher net sales discussed above.
Year ended December 31, 2024
Net sales increased to $9.76 billion, 7.1% (6.2% on a per-day
basis) growth compared to the prior year, a Company record.
Estimated organic volumes, including greenfields, increased
approximately 1-2% (0-1% on a per-day basis) and weighted-average
selling price increased approximately 1-2%. Additionally, acquired
branches contributed approximately 4.6% to the increase in net
sales.
Residential roofing product sales increased 3.9% (3.1% on
per-day basis), non-residential roofing product sales increased
11.6% (10.7% on a per-day basis), and complementary product sales
increased 8.9% (8.0% on per-day basis) compared to the prior year.
The increase in residential roofing product sales was primarily due
to price execution. The increase in non-residential roofing product
sales was primarily due to higher volumes driven by the impact of
customer destocking in the prior year period and, to a lesser
extent, solid market execution driving above market growth. The
increase in complementary product sales was largely due to two
waterproofing acquisitions totaling 15 branches since December 31,
2023. The years ended December 31, 2024 and 2023 had 254 and 252
business days, respectively.
Gross margin of 25.7% remained unchanged from the prior year as
higher average selling prices for our products were offset by
higher product costs and a modestly higher non-residential product
mix. The increases in operating expense and Adjusted Operating
Expense were attributable to acquired branches, as well as higher
organic SG&A expense. Acquired branches and greenfields
contributed $75.8 million and $34.0 million, respectively, to the
increase in SG&A expense. Organic SG&A expense increased
$107.5 million primarily due to higher payroll and employee benefit
costs, warehouse operating costs, and general and administrative
expenses. The increase in payroll and employee benefit costs was
due to higher average headcount during the year and, to a lesser
extent, one-time severance payments and employee benefit costs for
employees impacted by our operating cost reduction initiative
executed at the end of the third quarter 2024. While our cost
reduction initiative resulted in a one-time increase to SG&A
expense in 2024, these actions are expected to yield annualized
cost savings of $45 million, approximately $30 million of which
will be realized in 2025. The increase in warehouse operating costs
was primarily due to an increase in rent expense across our
existing locations coupled with greenfields opened during the year,
which contributed $10.2 million to the increase. The increase in
general and administrative expenses was primarily due to an
increase in acquisition-related costs of $5.1 million, costs
attributable to greenfields of $2.7 million, and higher
professional fees. Organic SG&A expense also includes an
increase in one-time acquisition and restructuring costs of $19.2
million. Excluding the increase in one-time acquisition and
restructuring costs, organic SG&A expense increased $88.3
million. Both operating expense as a percent of net sales and
Adjusted Operating Expense as a percent of net sales were higher in
2024, primarily driven by the same factors.
Net income (loss) was $361.7 million, compared to $435.0 million
in the prior year. Adjusted EBITDA was $930.2 million, compared to
$929.6 million in the prior year. Diluted EPS was $5.68, compared
to $(0.43) in the prior year. The negative diluted EPS in the prior
year was attributable to the $414.6 million Repurchase Premium
recognized in connection with the Preferred Stock repurchase, which
is included as a component of net income (loss) attributable to
common stockholders in calculating EPS. Full year results compared
to the prior year were largely driven by higher operating expense,
partially offset by higher net sales discussed above.
On May 9, 2024, the Company entered into an accelerated share
repurchase (“ASR”) agreement to repurchase $225.0 million of its
common stock. During the second quarter of 2024, the Company
repurchased and retired 1,927,608 shares of its common stock
representing 80% of the total expected share repurchases under the
ASR. On December 27, 2024, the Company completed the ASR and
received an additional 497,654 shares of its common stock. In
total, 2,425,262 shares of the Company’s common stock were
delivered under the ASR. As a result, shares of common stock
outstanding decreased to 61.5 million as of December 31, 2024, from
63.3 million as of December 31, 2023.
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.
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
8:30 a.m. ET to discuss these results. Details for the earnings
release event are as follows:
What:
Beacon Fourth Quarter and Full Year 2024
Earnings Call
When:
Thursday, February 27, 2025
Time:
8:30 a.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 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.
Investor Day
As previously disclosed, the Company will host an Investor Day
in New York City on Thursday, March 13, 2025. Beacon’s President
and CEO Julian Francis, CFO Prithvi Gandhi, and other members of
the senior leadership team will provide an in-depth review of
Beacon’s strategy, growth drivers, and financial objectives. The
event will include formal presentations, along with multiple
Q&A sessions with senior leadership. Due to space limitations,
the number of in-person participants is limited, and registration
is required.
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. These statements include,
but are not limited to: statements related to the views of the
Company and expectations regarding the unsolicited tender offer
(the “Offer”) from QXO, Inc. (“QXO”); any statements relating to
the plans, strategies and objectives of management or the Company’s
board of directors for future operations and activities; any
statements concerning the expected development, performance, market
share or competitive performance relating to products or services;
any statements regarding current or future macroeconomic trends or
events and the impact of those trends and events on the Company and
its financial performance; and any statements of assumptions
underlying any of the foregoing. 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. In addition,
actual results may differ materially from those indicated in any
forward-looking statements as the result of: factors relating to
the Offer, including actions taken by QXO in connection with the
Offer, actions taken by the Company or its stockholders in respect
of the Offer, and the effects of the Offer, or the completion or
failure to complete the Offer, on the Company’s businesses, or
other developments involving QXO; product shortages; changes in
supplier pricing and rebates; inability to identify acquisition
targets or close acquisitions; difficulty integrating acquired
businesses; inability to identify new markets or successfully open
new locations; catastrophic safety incidents; cyclicality,
seasonality and weather; IT failures or interruptions, including as
a result of cybersecurity incidents; goodwill or intangible asset
impairments; disruptions in the capital and credit markets; debt
leverage; loss of key talent; labor disputes; and regulatory risks.
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 referenced above
and readers are cautioned not to place undue reliance on
forward-looking statements. In addition, the forward-looking
statements included in this release represent the Company’s views
as of the date of this 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 release.
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 U.S. and seven provinces in Canada. Beacon
serves an extensive base of approximately 110,000 customers,
utilizing its vast branch network and service capabilities to
provide high-quality products and support throughout the entire
project 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
(In millions, except per share
amounts)
Three Months Ended December
31,
Year Ended December
31,
2024
% of Net Sales
2023
% of Net Sales
2024
% of Net Sales
2023
% of Net Sales
(Unaudited)
Net sales
$
2,403.6
100.0
%
$
2,299.5
100.0
%
$
9,763.2
100.0
%
$
9,119.8
100.0
%
Cost of products sold
1,786.1
74.3
%
1,707.5
74.3
%
7,258.4
74.3
%
6,777.1
74.3
%
Gross profit
617.5
25.7
%
592.0
25.7
%
2,504.8
25.7
%
2,342.7
25.7
%
Operating expense:
Selling, general and administrative
407.4
16.9
%
383.0
16.7
%
1,637.6
16.8
%
1,454.3
15.9
%
Depreciation
29.1
1.2
%
25.6
1.0
%
109.9
1.1
%
91.2
1.1
%
Amortization
23.2
1.0
%
19.9
0.9
%
91.9
1.0
%
85.0
0.9
%
Total operating expense
459.7
19.1
%
428.5
18.6
%
1,839.4
18.9
%
1,630.5
17.9
%
Income (loss) from operations
157.8
6.6
%
163.5
7.1
%
665.4
6.8
%
712.2
7.8
%
Interest expense, financing costs and
other, net
44.6
1.9
%
37.1
1.6
%
177.3
1.8
%
126.1
1.4
%
Loss on debt extinguishment
—
—
%
—
—
%
2.4
0.0
%
—
—
%
Income (loss) before provision for income
taxes
113.2
4.7
%
126.4
5.5
%
485.7
5.0
%
586.1
6.4
%
Provision for (benefit from) income
taxes
29.6
1.2
%
31.3
1.4
%
124.0
1.3
%
151.1
1.6
%
Net income (loss)
$
83.6
3.5
%
$
95.1
4.1
%
$
361.7
3.7
%
$
435.0
4.8
%
Reconciliation of net income (loss) to net
income (loss) attributable to common stockholders:
Net income (loss)
$
83.6
3.5
%
$
95.1
4.1
%
$
361.7
3.7
%
$
435.0
4.8
%
Dividends on Preferred Stock
—
—
%
—
—
%
—
—
%
(13.9
)
(0.2
)%
Undistributed income allocated to
participating securities
—
—
%
—
—
%
—
—
%
(34.1
)
(0.4
)%
Repurchase Premium
—
—
%
—
—
%
—
—
%
(414.6
)
(4.5
)%
Net income (loss) attributable to common
stockholders
$
83.6
3.5
%
$
95.1
4.1
%
$
361.7
3.7
%
$
(27.6
)
(0.3
)%
Weighted-average common shares
outstanding:
Basic
62.0
63.4
62.5
63.7
Diluted
63.2
64.8
63.7
63.7
Net income (loss) per common share:
Basic
$
1.35
$
1.50
$
5.78
$
(0.43
)
Diluted
$
1.32
$
1.47
$
5.68
$
(0.43
)
BEACON ROOFING SUPPLY,
INC.
Consolidated Balance
Sheets
(In millions)
December 31,
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
74.3
$
84.0
Accounts receivable, net
1,196.1
1,140.2
Inventories, net
1,407.7
1,227.9
Prepaid expenses and other current
assets
501.7
444.6
Total current assets
3,179.8
2,896.7
Property and equipment, net
545.7
436.4
Goodwill
2,094.7
1,952.6
Intangibles, net
489.1
403.5
Operating lease right-of-use assets,
net
626.8
503.6
Deferred income taxes, net
—
2.1
Other assets, net
17.5
12.8
Total assets
$
6,953.6
$
6,207.7
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable
$
938.0
$
942.8
Accrued expenses
522.4
498.6
Current portion of operating lease
liabilities
101.2
89.7
Current portion of finance lease
liabilities
38.9
26.2
Current portion of long-term debt
12.8
10.0
Total current liabilities
1,613.3
1,567.3
Borrowings under revolving lines of
credit, net
148.1
80.0
Long-term debt, net
2,481.2
2,192.3
Deferred income taxes, net
37.0
20.1
Other long-term liabilities
1.9
0.5
Operating lease liabilities
544.7
423.7
Finance lease liabilities
134.9
100.3
Total liabilities
4,961.1
4,384.2
Convertible Preferred Stock
—
—
Stockholders' equity:
Common stock
0.6
0.6
Undesignated preferred stock
—
—
Additional paid-in capital
1,264.4
1,218.4
Retained earnings
753.7
618.8
Accumulated other comprehensive income
(loss)
(26.2
)
(14.3
)
Total stockholders' equity
1,992.5
1,823.5
Total liabilities and stockholders'
equity
$
6,953.6
$
6,207.7
BEACON ROOFING SUPPLY,
INC.
Consolidated Statements of
Cash Flows
(In millions)
Year Ended December
31,
2024
2023
Operating Activities
Net income (loss)
$
361.7
$
435.0
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating activities:
Depreciation and amortization
201.8
176.2
Stock-based compensation
31.0
28.0
Certain interest expense and other
financing costs
3.9
2.2
Loss on debt extinguishment
2.4
—
Gain on sale of fixed assets and other
(7.5
)
(15.6
)
Deferred income taxes
17.2
27.3
Changes in operating assets and
liabilities:
Accounts receivable
15.4
(104.7
)
Inventories
(114.5
)
129.1
Prepaid expenses and other current
assets
(56.0
)
(27.5
)
Accounts payable and accrued expenses
(43.2
)
141.6
Other assets and liabilities
7.2
(3.8
)
Net cash provided by (used in) operating
activities
419.4
787.8
Investing Activities
Capital expenditures
(126.6
)
(122.9
)
Acquisition of business, net
(420.5
)
(119.0
)
Proceeds from sale of assets
7.9
17.5
Purchases of investments
(1.3
)
(1.2
)
Net cash provided by (used in) investing
activities
(540.5
)
(225.6
)
Financing Activities
Borrowings under revolving lines of
credit
2,881.7
2,374.2
Payments under revolving lines of
credit
(2,815.1
)
(2,550.7
)
Borrowings under term loan
300.0
—
Payments under term loan
(12.8
)
(10.0
)
Borrowings under senior notes
—
600.0
Payment of debt issuance costs
(0.2
)
(8.0
)
Payments under equipment financing
facilities and finance leases
(30.7
)
(21.2
)
Repurchase of convertible Preferred
Stock
—
(805.7
)
Payment of fees for the repurchase of
convertible Preferred Stock
(0.1
)
—
Repurchase and retirement of common stock,
net
(225.0
)
(110.9
)
Payment of dividends on Preferred
Stock
—
(18.9
)
Proceeds from disgorgement of short-swing
profits1
—
5.9
Proceeds from employee stock purchase
plan
13.2
—
Proceeds from issuance of common stock
related to equity awards
9.4
12.7
Payment of taxes related to net share
settlement of equity awards
(7.6
)
(13.8
)
Net cash provided by (used in) financing
activities
112.8
(546.4
)
Effect of exchange rate changes on cash
and cash equivalents
(1.4
)
0.5
Net increase (decrease) in cash and cash
equivalents
(9.7
)
16.3
Cash and cash equivalents, beginning of
period
84.0
67.7
Cash and cash equivalents, end of
period
$
74.3
$
84.0
Supplemental Cash Flow
Information
Cash paid during the period for:
Interest
$
177.8
$
111.3
Income taxes, net of refunds
$
110.6
$
120.6
- During the year ended December 31, 2023, the Company received
payments of $5.9 million from a shareholder related to short-swing
trading profits disgorged pursuant to Section 16(b) of the
Securities Exchange Act of 1934. The payments were recorded to
additional paid-in capital on the consolidated balance sheets.
BEACON ROOFING SUPPLY,
INC.
Consolidated Sales by Line of
Business
(Unaudited; in millions)
Sales by Line of
Business
Three Months Ended December
31,
Year-over-Year Change
2024
2023
Net Sales
Mix %
Net Sales
Mix %
$
%
Residential roofing products
$
1,172.3
48.8
%
$
1,162.8
50.6
%
$
9.5
0.8
%
Non-residential roofing products
661.4
27.5
%
626.7
27.2
%
34.7
5.5
%
Complementary building products
569.9
23.7
%
510.0
22.2
%
59.9
11.7
%
$
2,403.6
100.0
%
$
2,299.5
100.0
%
$
104.1
4.5
%
Sales by Business
Day1,2
Three Months Ended December
31,
Year-over-Year Change
2024
2023
Net Sales
Mix %
Net Sales
Mix %
$
%
Residential roofing products
$
18.9
48.8
%
$
19.1
50.6
%
$
(0.2
)
(0.8
)%
Non-residential roofing products
10.7
27.5
%
10.3
27.2
%
0.4
3.8
%
Complementary building products
9.2
23.7
%
8.3
22.2
%
0.9
9.9
%
$
38.8
100.0
%
$
37.7
100.0
%
$
1.1
2.8
%
- The three-month periods ended December 31, 2024 and 2023 had 62
and 61 business days, respectively.
- Dollar and percentage changes may not recalculate due to
rounding.
Sales by Line of
Business
Year Ended December
31,
Year-over-Year Change
2024
2023
Net Sales
Mix %
Net Sales
Mix %
$
%
Residential roofing products
$
4,833.5
49.5
%
$
4,652.0
51.0
%
$
181.5
3.9
%
Non-residential roofing products
2,674.1
27.4
%
2,395.7
26.3
%
278.4
11.6
%
Complementary building products
2,255.6
23.1
%
2,072.1
22.7
%
183.5
8.9
%
$
9,763.2
100.0
%
$
9,119.8
100.0
%
$
643.4
7.1
%
Sales by Business
Day1,2
Year Ended December
31,
Year-over-Year Change
2024
2023
Net Sales
Mix %
Net Sales
Mix %
$
%
Residential roofing products
$
19.0
49.5
%
$
18.5
51.0
%
$
0.5
3.1
%
Non-residential roofing products
10.5
27.4
%
9.5
26.3
%
1.0
10.7
%
Complementary building products
8.9
23.1
%
8.2
22.7
%
0.7
8.0
%
$
38.4
100.0
%
$
36.2
100.0
%
$
2.2
6.2
%
- The years ended December 31, 2024 and 2023 had 254 and 252
business days, respectively.
- 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; costs related to changing our fiscal year end;
amortization of debt issuance costs; debt refinancing and
extinguishment costs; abandoned lease costs; and costs associated
with responding to unsolicited acquisition proposals and attempts
to acquire control of the Company. 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 December 31,
2024
Acquisition costs
$
1.2
$
23.2
$
1.0
$
—
$
25.4
Restructuring costs
1.7
—
0.6
—
2.3
Total adjusting items
$
2.9
$
23.2
$
1.6
$
—
$
27.7
Three Months Ended December 31,
2023
Acquisition costs
$
1.6
$
19.9
$
1.1
$
—
$
22.6
Restructuring costs
(1.5
)
—
0.5
—
(1.0
)
Total adjusting items
$
0.1
$
19.9
$
1.6
$
—
$
21.6
Year Ended December 31, 2024
Acquisition costs
$
12.0
$
91.9
$
3.9
$
—
$
107.8
Restructuring costs1
14.6
—
2.2
2.4
19.2
Total adjusting items
$
26.6
$
91.9
$
6.1
$
2.4
$
127.0
Year Ended December 31, 2023
Acquisition costs
$
6.9
$
85.0
$
4.1
$
—
$
96.0
Restructuring costs
0.5
—
1.5
—
2.0
Total adjusting items
$
7.4
$
85.0
$
5.6
$
—
$
98.0
- Other (income) expense for the year ended December 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 December
31,
Year Ended December
31,
2024
2023
2024
2023
Operating expense
$
459.7
$
428.5
$
1,839.4
$
1,630.5
Acquisition costs
(24.4
)
(21.5
)
(103.9
)
(91.9
)
Restructuring costs
(1.7
)
1.5
(14.6
)
(0.5
)
Adjusted Operating Expense
$
433.6
$
408.5
$
1,720.9
$
1,538.1
Net sales
$
2,403.6
$
2,299.5
$
9,763.2
$
9,119.8
Operating expense as % of net sales
19.1
%
18.6
%
18.9
%
17.9
%
Adjusted Operating Expense as % of net
sales
18.0
%
17.8
%
17.6
%
16.9
%
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 December
31,
Year Ended December
31,
2024
2023
2024
2023
Net income (loss)
$
83.6
$
95.1
$
361.7
$
435.0
Adjusting items:
Acquisition costs
25.4
22.6
107.8
96.0
Restructuring costs
2.3
(1.0
)
19.2
2.0
Total adjusting items
27.7
21.6
127.0
98.0
Less: tax impact of adjusting items1
(7.1
)
(5.5
)
(32.6
)
(25.1
)
Total adjustments, net of tax
20.6
16.1
94.4
72.9
Adjusted Net Income (Loss)
$
104.2
$
111.2
$
456.1
$
507.9
Net sales
$
2,403.6
$
2,299.5
$
9,763.2
$
9,119.8
Net income (loss) as % net of sales
3.5
%
4.1
%
3.7
%
4.8
%
Adjusted Net Income (Loss) as % net of
sales
4.3
%
4.8
%
4.7
%
5.6
%
- 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
December 31, 2024 and 2023 were calculated using a blended
effective tax rate of 25.6% and 25.5%, respectively. The tax impact
of adjustments for the year ended December 31, 2024 and 2023 were
calculated using a blended effective tax rate of 25.7% and 25.6%,
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 December
31,
Year Ended December
31,
2024
2023
2024
2023
Net income (loss)
$
83.6
$
95.1
$
361.7
$
435.0
Interest expense, net
46.4
38.9
182.7
131.9
Income taxes
29.6
31.3
124.0
151.1
Depreciation and amortization
52.3
45.5
201.8
176.2
Stock-based compensation
7.7
5.8
31.0
28.0
Acquisition costs1
1.2
1.6
12.0
6.9
Restructuring costs1
1.7
(1.5
)
17.0
0.5
Adjusted EBITDA
$
222.5
$
216.7
$
930.2
$
929.6
Net sales
$
2,403.6
$
2,299.5
$
9,763.2
$
9,119.8
Net income (loss) as % of net sales
3.5
%
4.1
%
3.7
%
4.8
%
Adjusted EBITDA as % of net sales
9.3
%
9.4
%
9.5
%
10.2
%
- 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/20250227314530/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
Grafico Azioni Beacon Roofing Supply (NASDAQ:BECN)
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Da Feb 2025 a Mar 2025
Grafico Azioni Beacon Roofing Supply (NASDAQ:BECN)
Storico
Da Mar 2024 a Mar 2025
