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Mar 31, 2020

Beacon Roofing Q2 2020 Earnings Report

Beacon Roofing reported record second quarter net sales and adjusted EBITDA, but the COVID-19 pandemic forced the company to adapt to a changing environment.

Key Takeaways

Beacon Roofing reported a 2.1% increase in net sales to $1.46 billion for the second quarter of 2020, driven by sales initiatives and the digital platform, but partially offset by decreased hurricane-related demand. The company's net loss was $(122.6) million, impacted by a $142.6 million non-cash rebranding charge. Adjusted EBITDA reached a record $38.9 million, despite the COVID-19 pandemic forcing swift cost-cutting measures.

Record second quarter net sales of $1.46 billion.

10.8% daily organic sales growth in non-residential roofing.

Consolidated gross margins of 23.5% compared to 23.4% in the prior year.

Adjusted EBITDA of $38.9 million, a record for the second quarter.

Total Revenue
$1.46B
Previous year: $1.43B
+2.0%
EPS
-$0.18
Previous year: -$0.45
-60.0%
Gross Profit
$342M
Previous year: $335M
+2.2%
Cash and Equivalents
$781M
Previous year: $645K
+121011.9%
Free Cash Flow
-$38.4M
Previous year: $80.1M
-147.9%
Total Assets
$7.11B
Previous year: $6.23B
+14.2%

Beacon Roofing

Beacon Roofing

Beacon Roofing Revenue by Segment

Forward Guidance

The company expects productivity improvements and the use of its digital platform to drive sustainable benefits once COVID-19 headwinds have passed.

Positive Outlook

  • Strong operating model
  • Financial flexibility
  • Appropriate cost actions
  • Opportunities to improve productivity
  • Industry-leading digital platform

Challenges Ahead

  • Impact of the COVID-19 pandemic on the construction sector
  • State and local government restrictions
  • Uncertainty in demand scenarios
  • April sales decline
  • Considerable divergence in state-by-state performance

Revenue & Expenses

Visualization of income flow from segment revenue to net income