Beacon Roofing Supply Provides Fiscal 2019 Second-Quarter Estimate Reflecting Unfavorable Weather Impact; Full-Year 2019 Adju...
March 25 2019 - 4:13PM
Business Wire
Beacon Roofing Supply, Inc. (Nasdaq:BECN) (“Beacon” or the
“Company”) announced today that results for the second quarter
ended March 31, 2019 will be impacted by unfavorable weather
conditions. The Company is estimating a second quarter Adjusted Net
Income (Loss) per share (“Adjusted EPS”) of between $(0.45) and
$(0.55), compared to the current Street consensus loss per share of
approximately $(0.25). Despite the second quarter being heavily
impacted by harsh weather, Adjusted EPS for the full fiscal year
ending September 30, 2019 is anticipated to be within the lower-end
of the Company’s previously provided range of $2.90 to $3.35.
Paul Isabella, the Company’s President and Chief Executive
Officer stated: “Although the second quarter typically is our most
difficult quarter, extremely harsh weather conditions, mostly in
February and early March, will result in a quarterly Adjusted EPS
miss that we believe is appropriate to highlight early to the
investment community in the interest of transparency. Through
mid-March, the harsh weather has negatively impacted 40% to 75% of
our available selling days, depending on geography.
Higher-than-normal seasonal pressures have caused margins to
decline more than anticipated during the quarter, and we have
experienced difficulties in reducing variable expenses given the
weather volatility. Our team continues to implement the measures
needed to respond to this latest set of challenges. We believe the
negative impact of these circumstances will be isolated to the
second quarter, and we anticipate re-capturing some of the
quarter’s deferred volumes and margin during the second half of
2019. As a result, we are confident in achieving the lower end of
our previously provided Adjusted EPS range of $2.90 to $3.35 for
fiscal year 2019. Our dedication to executing our growth strategy
is steadfast, and we remain confident in our prospects for
long-term success.”
The Company will host a brief listen-only webcast and conference
call today at 5:30 p.m. ET to discuss its fiscal year 2019 outlook.
The webcast link and call-in details are as follows:
What:
Beacon Roofing Supply Second Quarter Update When Monday, March 25,
2019 Time: 5:30 p.m. ET Webcast:
http://ir.beaconroofingsupply.com/events.cfm (live and replay)
Live Call: 720-634-9063; Conf. ID #3194986
To assure timely access, conference call participants should
dial in prior to the 5:30 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, Inc. is the largest
publicly traded distributor of residential and commercial roofing
materials and complementary building products, operating over 500
branches throughout all 50 states in the U.S. and 6 provinces in
Canada. To learn more about Beacon and its family of regional
brands, please visit www.becn.com.
BEACON ROOFING
SUPPLY, INC.
Reconciliation of Projected Adjusted
EPS1
(Unaudited; In thousands, except per
share amounts)
Three Months Ended March 31,
2019 Amount Per Share2
Low High Low
High Net income (loss) $ (76,000 ) $ (69,000 ) $ (1.11 ) $
(1.01 ) Dividends on preferred shares 6,000
6,000 $ (0.09 ) $ (0.09 ) Net income (loss) attributable to
common shareholders $ (82,000 ) $ (75,000 ) $ (1.20 ) $ (1.10 )
Adjustments: Acquisition costs3 44,500 44,500
$ 0.65 $ 0.65 Adjusted Net Income (Loss) $
(37,500 ) $ (30,500 ) $ (0.55 ) $ (0.45 ) 1 Adjusted
Net Income (Loss) is defined as net income that excludes
non-recurring acquisition costs, the amortization of intangibles,
business restructuring costs, and the non-recurring effects of tax
reform. Adjusted net income (loss) per share or "Adjusted EPS" is
calculated by dividing the Adjusted Net Income (Loss) for the
period by the weighted-average diluted shares outstanding for the
period. 2
The estimated weighted-average share count
utilized in calculations of projected Adjusted EPS presented in
this table is 68,100,000.
3 Acquisition cost estimates are net of tax and composed of
projections for non-recurring acquisition costs and amortization
expense related to intangibles. For a reconciliation of our
previously issued guidance for Adjusted EPS for the fiscal year
ended September 30, 2019, please see page 16 of our fiscal year
2019 first quarter earnings presentation, filed as Exhibit 99.2 to
our Form 8-K filed on February 7, 2019.
We use Adjusted Net Income (Loss) and Adjusted EPS to evaluate
financial performance, analyze the underlying trends in our
business and establish operational goals and forecasts that are
used when allocating resources.
We believe that Adjusted Net Income (Loss) and Adjusted EPS are
useful measures because they permit investors to better understand
changes in underlying operating performance over comparative
periods by providing financial results that are unaffected by
cyclical variances that can be driven by items such as investment
activity or purchase accounting adjustments.
While we believe Adjusted Net Income (Loss) and Adjusted EPS are
useful to investors when evaluating our business, they are not
prepared and presented in accordance with United States Generally
Accepted Accounting Principles (“GAAP”), and therefore should be
considered supplemental in nature. You should not consider Adjusted
Net Income (Loss) or Adjusted EPS in isolation or as a substitute
for net income and net income per share or diluted earnings per
share calculated in accordance with GAAP. In addition, Adjusted Net
Income (Loss) and Adjusted EPS may have material limitations and
may differ from similarly titled measures presented by other
companies.
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version on businesswire.com: https://www.businesswire.com/news/home/20190325005787/en/
Beacon Roofing Supply, Inc.Joseph Nowicki, Executive VP &
CFO571-323-3939JNowicki@becn.com
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