- Record second quarter net sales of
$1.43 billion
- Existing market daily sales growth
of 1.2% year-over-year
- Second quarter net income (loss) of
$(68.1) million vs. $(66.7) million in the prior year; Adjusted Net
Income (Loss) of $(30.9) million vs. $(23.5) million in the prior
year
- Second quarter EPS of $(1.08) vs.
$(1.07) in the prior year; Adjusted EPS of $(0.45) vs. $(0.35) in
the prior year
- Opened four greenfield locations in
the second quarter (five total in fiscal 2019 to-date)
Beacon Roofing Supply, Inc. (Nasdaq:BECN) (“Beacon” or the
“Company”) announced results today for its second quarter and
six-month period ended March 31, 2019 (“2019”).
Paul Isabella, the Company's President and Chief Executive
Officer, stated: “We produced positive organic sales growth,
highlighted by a daily sales increase of nearly 5% in residential
roofing, despite the harsh weather adversely impacting quarterly
demand (as noted in our March 25 press release). In an effort to
help mitigate the challenging weather patterns, we were able to
implement more aggressive late-quarter cost controls to match the
unusually soft seasonal environment. We once again exhibited
attractive price-cost performance in the second quarter, as we have
done in each of the past four quarters. Importantly, the winter is
now behind us and existing market sales accelerated the last
several weeks of March, and that momentum has continued into April.
Through key initiatives, including digital, private label, and
complementary products, coupled with new branch openings, we are
continuing to expand our competitive advantage in the marketplace.
We remain firmly committed to reaching our long-term sales and
margin objectives.”
Second Quarter
Net sales increased 0.2% to $1.43 billion in 2019, a level
similar to 2018. Residential roofing product sales increased 2.9%,
non-residential roofing product sales decreased 5.7% and
complementary product sales increased 1.1% over the prior year.
Existing markets net sales decreased 0.4% compared to the prior
year period, primarily due to weather related events; however,
sales by business day increased by 1.2% compared to the prior year
period. The second quarter of fiscal years 2019 and 2018 had 63 and
64 business days, respectively.
Net income (loss) attributable to common shareholders was
$(74.1) million, compared to $(72.7) million in 2018. Net income
(loss) per share (“EPS”) was $(1.08), compared to $(1.07) in 2018.
Second quarter results were positively impacted by strong sales in
geographies less impacted by the unfavorable weather and lower
operating expense. Second quarter results were negatively impacted
by lower gross margins.
Adjusted Net Income (Loss) was $(30.9) million, compared to
$(23.5) million in 2018. Adjusted EPS was $(0.45), compared to
$(0.35) in 2018. Adjusted EBITDA was $27.4 million, compared to
$31.7 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).
Six Months
Net sales increased 23.7% to $3.15 billion, up from $2.55
billion in the comparative 2018 period. Residential roofing product
sales increased 13.5%, non-residential roofing product sales
increased 10.7% and complementary product sales increased 52.0%
over the prior year. Existing markets net sales increased 0.8%
compared to the prior year period, primarily due to price gains
across all product lines. The first six months of fiscal years 2019
and 2018 each had 125 business days.
Net income (loss) attributable to common shareholders was
$(81.0) million, compared to $(5.1) million in 2018. Net income
(loss) per share (“EPS”) was $(1.18), compared to $(0.07) in 2018.
The six-month results were positively impacted by price gains
across all product lines and improved gross margin performance. The
six-month results were negatively impacted by higher operating
expenses and increase in interest expense and preferred dividend
payments that were both related to the acquisition of Allied. In
addition, 2018 results include a $48.0 million non-recurring net
tax benefit resulting from the enactment of the Tax Cuts and Jobs
Act of 2017.
Adjusted Net Income (Loss) was $9.6 million, compared to $23.2
million in 2018. Adjusted EPS was $0.14, compared to $0.34 in 2018.
Adjusted EBITDA was $149.1 million, compared to $117.6 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:
What: Beacon Roofing
Supply Second Quarter 2019 Earnings Conference Call When Tuesday,
May 7, 2019 Time: 5:00 p.m. ET Webcast:
http://ir.beaconroofingsupply.com/events.cfm (live and replay)
Live Call: 720-634-9063; Conf. ID #6843668
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, 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. Consolidated
Statements of Operations (Unaudited; In thousands, except
share and per share amounts) Three Months
Ended March 31, Six Months Ended March 31, 2019
% ofNetSales
2018
% ofNetSales
2019
% ofNetSales
2018
% ofNetSales
Net sales $ 1,429,037 100.0 % $ 1,425,625 100.0 % $
3,150,713 100.0 % $ 2,547,604 100.0 % Cost of
products sold 1,094,049 76.6 %
1,087,248 76.3 % 2,380,156 75.5
% 1,939,474 76.1 % Gross profit 334,988 23.4 %
338,377 23.7 % 770,557 24.5 % 608,130 23.9 % Operating expense1:
Selling, general and administrative 320,408 22.4 % 341,587 24.0 %
648,101 20.6 % 535,340 21.0 % Depreciation 17,447 1.2 % 17,120 1.2
% 35,048 1.1 % 25,829 1.0 % Amortization 51,763
3.6 % 37,068 2.6 % 103,784
3.3 % 55,263 2.2 % Total
operating expense 389,618 27.2 %
395,775 27.8 % 786,933 25.0 %
616,432 24.2 % Income (loss) from operations
(54,630 ) (3.8 %) (57,398 ) (4.1 %) (16,376 ) (0.5 %) (8,302 ) (0.3
%) Interest expense, financing costs, and other2 40,452
2.8 % 39,570 2.8 % 78,813
2.5 % 62,138 2.4 % Income (loss)
before provision for income taxes (95,082 ) (6.6 %) (96,968 ) (6.9
%) (95,189 ) (3.0 %) (70,440 ) (2.7 %) Provision for (benefit from)
income taxes (26,996 ) (1.8 %) (30,313 )
(2.2 %) (26,210 ) (0.8 %) (71,381 )
(2.7 %) Net income (loss) (68,086 ) (4.8 %)
(66,655 ) (4.7 %) (68,979 ) (2.2 %)
941 0.0 % Dividends on preferred shares3
6,000 0.4 % 6,000 0.4 %
12,000 0.4 % 6,000 0.2 %
Net income (loss) attributable to common shareholders $ (74,086 )
(5.2 %) $ (72,655 ) (5.1 %) $ (80,979 ) (2.6
%) $ (5,059 ) (0.2 %) Weighted-average common stock
outstanding: Basic 68,451,920 68,019,300 68,348,850 67,922,276
Diluted 68,451,920 68,019,300 68,348,850 67,922,276 Net
income (loss) per share4: Basic $ (1.08 ) $ (1.07 ) $ (1.18 ) $
(0.07 ) Diluted $ (1.08 ) $ (1.07 ) $ (1.18 ) $ (0.07 )
______________________________________________
1
Operating expense for the three months ended March 31, 2019
and 2018 includes non-recurring acquisition costs of $6.7 million
($4.7 million, net of taxes) and $28.3 million ($20.0 million, net
of taxes), respectively. Operating expense for the six months ended
March 31, 2019 and 2018 includes non-recurring acquisition costs of
$15.6 million ($11.4 million, net of taxes) and $33.9 million
($23.9 million, net of taxes), respectively. 2 Interest
expense, financing costs, and other for the three months ended
March 31, 2019 and 2018 includes non-recurring acquisition costs of
$3.0 million ($2.2 million, net of taxes) and $6.3 million ($4.5
million, net of taxes), respectively. Interest expense, financing
costs, and other for the six months ended March 31, 2019 and 2018
includes non-recurring acquisition costs of $6.1 million ($4.4
million, net of taxes) and $18.6 million ($13.2 million, net of
taxes), respectively. 3 Amounts for the three months ended
March 31, 2019 and the three and six months ended March 31, 2018
are composed of $5.0 million in undeclared cumulative Preferred
Stock dividends, as well as an additional $1.0 million of Preferred
Stock dividends that had been declared and paid as of period end.
Six months ended March 31, 2019 amount is composed of $5.0 million
in undeclared cumulative Preferred Stock dividends, as well as an
additional $7.0 million of Preferred Stock dividends that had been
declared and paid as of period end. 4 Basic net income
(loss) per share is calculated by dividing net income (loss)
attributable to common shareholders by the weighted-average number
of common shares outstanding during the period, without
consideration for common share equivalents or the conversion of
Preferred Stock. Common share equivalents consist of the
incremental common shares issuable upon the exercise of stock
options and vesting of restricted stock unit awards. Diluted net
income (loss) per common share is calculated by dividing net income
(loss) attributable to common shareholders by the fully diluted
weighted-average number of common shares outstanding during the
period. The following table presents the components and
calculations of basic and diluted net income (loss) per share for
each period presented (in thousands, except share and per share
amounts):
Three Months Ended March 31,
Six Months Ended March 31, 2019 2018
2019 2018 Net income (loss) $ (68,086 ) $
(66,655 ) $ (68,979 ) $ 941 Dividends on preferred shares
6,000 6,000 12,000 6,000
Net income (loss) attributable to common shareholders $
(74,086 ) $ (72,655 ) $ (80,979 ) $ (5,059 ) Undistributed income
allocated to participating securities - -
- - Net income (loss)
attributable to common shareholders - basic and diluted $ (74,086 )
$ (72,655 ) $ (80,979 ) $ (5,059 ) Weighted-average common
shares outstanding - basic 68,451,920 68,019,300 68,348,850
67,922,276 Effect of common share equivalents -
- - - Weighted-average
common shares outstanding - diluted 68,451,920
68,019,300 68,348,850 67,922,276
Net income (loss) per share - basic $ (1.08 ) $ (1.07 ) $
(1.18 ) $ (0.07 ) Net income (loss) per share - diluted $ (1.08 ) $
(1.07 ) $ (1.18 ) $ (0.07 )
BEACON ROOFING SUPPLY,
INC. Consolidated Balance Sheets (Unaudited; In
thousands) March 31, September
30, March 31, 2019 2018 2018
Assets Current assets: Cash and cash equivalents $ 645 $
129,927 $ 16,000 Accounts receivable, net 869,760 1,090,533 832,823
Inventories, net 1,031,183 936,047 1,005,577 Prepaid expenses and
other current assets 332,100 244,360
240,315 Total current assets 2,233,688 2,400,867
2,094,715 Property and equipment, net 271,022 280,407 294,222
Goodwill 2,490,326 2,491,779 2,381,620 Intangibles, net 1,229,949
1,334,366 1,410,302 Other assets, net 1,243
1,243 1,511 Total assets $ 6,226,228 $
6,508,662 $ 6,182,370
Liabilities and
Stockholders' Equity Current liabilities: Accounts payable $
510,434 $ 880,872 $ 593,559 Accrued expenses 453,889 611,539
348,050 Current portions of long-term debt/obligations
19,988 19,661 19,597 Total
current liabilities 984,311 1,512,072 961,206 Borrowings under
revolving lines of credit, net 416,614 92,442 424,528 Long-term
debt, net 2,494,673 2,494,725 2,493,889 Deferred income taxes, net
110,064 106,994 91,101 Long-term obligations under equipment
financing and other, net 8,527 13,639 18,313 Other long-term
liabilities 5,702 5,290 10,617
Total liabilities 4,019,891 4,225,162
3,999,654 Convertible preferred stock
399,195 399,195 399,195
Stockholders' equity: Common stock 684 681 680 Undesignated
preferred stock - - - Additional paid-in capital 1,073,243
1,067,040 1,056,248 Retained earnings 752,855 833,834 743,127
Accumulated other comprehensive income (loss) (19,640 )
(17,250 ) (16,534 ) Total stockholders' equity
1,807,142 1,884,305 1,783,521
Total liabilities and stockholders' equity $ 6,226,228 $
6,508,662 $ 6,182,370
BEACON ROOFING
SUPPLY, INC. Consolidated Statements of Cash Flows
(Unaudited; In thousands) Six Months Ended March
31, 2019 2018 Operating Activities
Net income (loss) $ (68,979 ) $ 941 Adjustments to reconcile net
income to net cash provided by operating activities: Depreciation
and amortization 138,832 81,092 Stock-based compensation 8,264
7,835 Certain interest expense and other financing costs 6,051
3,987 Beneficial lease amortization 1,145 - Loss on debt
extinguishment - 1,725 Gain on sale of fixed assets (1,172 ) (319 )
Deferred income taxes 3,086 (47,260 ) Changes in operating assets
and liabilities, net of the effects of businesses acquired in the
period: Accounts receivable 219,740 186,170 Inventories (96,052 )
(131,789 ) Prepaid expenses and other assets (85,320 ) 67,425
Accounts payable and accrued expenses (368,154 ) (130,695 ) Other
liabilities 415 854 Net cash provided
by (used in) operating activities (242,144 ) 39,966
Investing Activities Purchases of property and
equipment (26,320 ) (24,833 ) Acquisition of businesses, net
(163,973 ) (2,726,561 ) Proceeds from the sale of assets
1,428 413 Net cash provided by (used in)
investing activities (188,865 ) (2,750,981 )
Financing Activities Borrowings under revolving lines of
credit 1,880,684 1,530,667 Repayments under revolving lines of
credit (1,557,615 ) (1,097,463 ) Borrowings under term loan -
970,000 Repayments under term loan (4,850 ) (441,000 ) Borrowings
under senior notes - 1,300,000 Payment of debt issuance costs -
(67,723 ) Repayments under equipment financing facilities and other
(2,642 ) (5,643 ) Proceeds from issuance of convertible preferred
stock - 400,000 Payment of stock issuance costs - (1,279 ) Payment
of dividends on preferred stock (12,000 ) (978 ) Proceeds from
issuance of common stock related to equity awards 1,559 5,317 Taxes
paid related to net share settlement of equity awards (3,617
) (3,933 ) Net cash provided by (used in) financing
activities 301,519 2,587,965
Effect of exchange rate changes on cash and cash equivalents
208 800 Net increase (decrease) in cash
and cash equivalents (129,282 ) (122,250 ) Cash and cash
equivalents, beginning of period 129,927
138,250 Cash and cash equivalents, end of period $ 645
$ 16,000
BEACON ROOFING SUPPLY,
INC. Consolidated Sales by Product Line (Unaudited;
In thousands) Consolidated Sales by Product Line
Three Months Ended March 31,
2019 2018 Change Net Sales
Mix % Net Sales Mix % $
% Residential roofing products $ 598,917 42.0 % $
581,834 40.8 % $ 17,083 2.9 % Non-residential roofing
products 313,626 21.9 % 332,690 23.3 % (19,064 ) (5.7 %)
Complementary building products 516,494 36.1 %
511,101 35.9 % 5,393 1.1 % $
1,429,037 100.0 % $ 1,425,625 100.0 % $
3,412 0.2 %
Existing Market1
Sales by Product Line Three Months Ended March 31,
2019 2018 Change Net Sales Mix %
Net Sales Mix % $ % Residential roofing
products $ 598,795 42.2 % $ 581,834 40.9 % $ 16,961 2.9 %
Non-residential roofing products 313,591 22.1 % 332,651 23.3 %
(19,060 ) (5.7 %) Complementary building products 506,602
35.7 % 510,622 35.8 %
(4,020 ) (0.8 %) $ 1,418,988 100.0 % $ 1,425,107
100.0 % $ (6,119 ) (0.4 %)
Existing
Market1 Sales By Business Day2 Three
Months Ended March 31, 2019 2018 Change
Net Sales Mix % Net Sales Mix %
$ % Residential roofing products $ 9,505 42.2 % $
9,091 40.9 % $ 414 4.6 % Non-residential roofing products 4,978
22.1 % 5,198 23.3 % (220 ) (4.2 %) Complementary building products
8,041 35.7 % 7,978 35.8 %
63 0.8 % $ 22,524 100.0 % $ 22,267
100.0 % $ 257 1.2 %
__________________________________________________ 1
Excludes acquired branches that have not been under ownership for
at least four fiscal quarters prior to the start of the second
quarter of fiscal year 2019. 2 There were 63 and 64 business
days in the quarters ended March 31, 2019 and 2018, respectively.
BEACON ROOFING SUPPLY, INC. Consolidated
Sales by Product Line (Unaudited; In thousands)
Consolidated Sales by Product Line Six Months
Ended March 31, 2019
2018 Change Net Sales Mix
% Net Sales Mix % $ %
Residential roofing products $ 1,323,780 42.0 % $ 1,166,361
45.8 % $ 157,419 13.5 % Non-residential roofing products
729,939 23.2 % 659,431 25.9 % 70,508 10.7 % Complementary building
products 1,096,994 34.8 % 721,812
28.3 % 375,182 52.0 % $ 3,150,713
100.0 % $ 2,547,604 100.0 % $ 603,109
23.7 %
Existing Market1 Sales
by Product Line Six Months Ended March 31, 2019
2018 Change Net Sales Mix % Net
Sales Mix % $ % Residential roofing
products $ 971,124 52.7 % $ 945,947 51.8 % $ 25,177 2.7 %
Non-residential roofing products 524,728 28.5 % 531,956 29.1 %
(7,228 ) (1.4 %) Complementary building products 345,553
18.8 % 348,509 19.1 %
(2,956 ) (0.8 %) $ 1,841,405 100.0 % $ 1,826,412
100.0 % $ 14,993 0.8 %
Existing Market1 Sales By Business Day2
Six Months Ended March 31, 2019 2018
Change Net Sales Mix % Net Sales Mix
% $ % Residential roofing products $ 7,769 52.7 %
$ 7,568 51.8 % $ 201 2.7 % Non-residential roofing products 4,198
28.5 % 4,256 29.1 % (58 ) (1.4 %) Complementary building products
2,764 18.8 % 2,788 19.1 %
(24 ) (0.8 %) $ 14,731 100.0 % $ 14,612
100.0 % $ 119 0.8 %
__________________________________________________
1
Excludes acquired branches that have not
been under ownership for at least four fiscal quarters prior to the
start of fiscal year 2019.
2
There were 125 business days in each of
the six month periods ended March 31, 2019 and 2018.
BEACON ROOFING SUPPLY, INC.
Adjusted Net Income (Loss) and Adjusted
EPS1
(Unaudited; In thousands, except per share amounts)
Three Months Ended March 31, Six Months Ended
March 31, 2019 2018 2019
2018 Amount
PerShare2
Amount
PerShare2
Amount
PerShare3
Amount
PerShare3
Net income (loss) $ (68,086 ) $ (0.99 ) $ (66,655 ) $ (0.98 ) $
(68,979 ) $ (1.01 ) $ 941 $ 0.01 Dividends on preferred shares
6,000 0.09 6,000
0.09 12,000 0.18 6,000
0.08 Net income (loss) attributable to common
shareholders $ (74,086 ) $ (1.08 ) $ (72,655 ) $ (1.07 ) $ (80,979
) $ (1.18 ) $ (5,059 ) $ (0.07 ) Adjustments: Acquisition costs4
43,664 0.64 50,604 0.74 91,057 1.33 76,237 1.12 Effects of tax
reform5 (462 ) (0.01 ) (1,491 ) (0.02 )
(462 ) (0.01 ) (47,983 ) (0.71 )
Adjusted Net Income (Loss) $ (30,884 ) $ (0.45 ) $ (23,542 ) $
(0.35 ) $ 9,616 $ 0.14 $ 23,195 $ 0.34
____________________________________________
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 weighted-average share count utilized
in the calculation of Adjusted EPS for the three months ended March
31, 2019 is 68,451,920. The weighted-average share count utilized
in the calculation of Adjusted EPS for the three months ended March
31, 2018 is 68,019,300.
3
The weighted-average share count utilized
in the calculation of Adjusted EPS for the six months ended March
31, 2019 is 68,348,850. The weighted-average share count utilized
in the calculation of Adjusted EPS for the six months ended March
31, 2018 is 67,922,276.
4
Three months ended March 31, 2019 amount
is composed of $9.7 million of non-recurring acquisition costs
($6.9 million, net of tax) and $51.8 million of amortization
expense related to intangibles ($36.8 million, net of tax). Three
months ended March 31, 2018 amount is composed of $34.6 million of
non-recurring acquisition costs ($24.4 million, net of tax) and
$37.1 million of amortization expense related to intangibles ($26.2
million, net of tax). Six months ended March 31, 2019 amount is
composed of $21.7 million of non-recurring acquisition costs ($15.7
million, net of tax) and $103.8 million of amortization expense
related to intangibles ($75.3 million, net of tax). Six months
ended March 31, 2018 amount is composed of $52.5 million of
non-recurring acquisition costs ($37.1 million, net of tax) and
$55.3 million of amortization expense related to intangibles ($39.1
million, net of tax).
5
Impact of the Tax Cuts and Jobs Act of
2017.
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.
BEACON
ROOFING SUPPLY, INC.
Adjusted EBITDA1
(Unaudited; In thousands) Three Months
Ended March 31, Six Months Ended March 31, 2019
2018 2019 2018 Net income (loss)
$ (68,086 ) $ (66,655 ) $ (68,979 ) $ 941 Acquisition costs2 6,687
28,301 15,605 33,870 Interest expense, net 41,815 41,763 81,631
65,279 Income taxes (26,996 ) (30,313 ) (26,210 ) (71,381 )
Depreciation and amortization 69,210 54,188 138,832 81,092
Stock-based compensation 4,807 4,376
8,264 7,835 Adjusted EBITDA $ 27,437
$ 31,660 $ 149,143 $ 117,636
Adjusted EBITDA as a % of net sales 1.9 % 2.2 % 4.7 % 4.6 %
__________________________________________________
1
Adjusted EBITDA is defined as net income
plus interest expense (net of interest income), income taxes,
depreciation and amortization, stock-based compensation,
non-recurring acquisition costs, and business restructuring costs.
EBITDA is a measure commonly used in the distribution industry, and
we present Adjusted EBITDA to enhance your understanding of our
operating performance.
2
Represents non-recurring acquisition costs
(excluding the impact of tax) that are included in operating
expense and not embedded in other balances of the table.
We use Adjusted EBITDA 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 EBITDA is a
useful measure because it permits 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 EBITDA is useful to investors when evaluating our
business, it is not prepared and presented in accordance with
United States Generally Accepted Accounting Principles (“GAAP”),
and therefore should be considered supplemental in nature. Adjusted
EBITDA should not be considered in isolation or as a substitute for
net income, cash flows from operations, or any other items
calculated in accordance with GAAP. In addition, Adjusted EBITDA
may have material limitations and may differ from similarly titled
measures presented by other companies.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190507005945/en/
Beacon Roofing Supply, Inc.Joseph Nowicki, Executive VP &
CFO571-323-3939JNowicki@becn.com
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