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Jun 30, 2020

Beacon Roofing Q3 2020 Earnings Report

Beacon Roofing's Q3 2020 results were driven by cost control and cash flow management amidst a challenging environment.

Key Takeaways

Beacon Roofing Supply reported a 6.9% decrease in net sales to $1.79 billion for Q3 2020, but demonstrated improved operating margin percentage through cost actions. The company generated record Q3 operating cash flows of $401.3 million, leading to significant net debt reduction. Net income was $(6.7) million, impacted by a comparative tax provision increase.

Net sales decreased by 6.9% to $1.79 billion, with sales improving throughout the quarter and June daily sales flat compared to the prior year.

Operating expense declined to $357.2 million (19.9% of sales), including a 10.2% decrease in SG&A expenses.

Record Q3 operating cash flows of $401.3 million were achieved due to cost leverage and working capital actions, resulting in net debt reduction.

Net income was $(6.7) million, primarily driven by a $41.2 million tax provision increase.

Total Revenue
$1.79B
Previous year: $1.93B
-6.9%
EPS
$1.01
Previous year: $1.12
-9.8%
Gross Profit
$432M
Previous year: $473M
-8.6%
Cash and Equivalents
$1.02B
Previous year: $27.7M
+3572.6%
Free Cash Flow
$395M
Previous year: $29.2M
+1251.1%
Total Assets
$7.28B
Previous year: $6.53B
+11.5%

Beacon Roofing

Beacon Roofing

Beacon Roofing Revenue by Segment

Forward Guidance

The release contains forward-looking statements about management's view of the Company's future expectations, plans and prospects.

Revenue & Expenses

Visualization of income flow from segment revenue to net income