Beacon Roofing Supply (BECN) Misses Q4 EPS by 29c, Revenues Miss

Beacon Roofing Supply (NASDAQ: BECN) reported Q4 EPS of $1.07, $0.29 worse than the analyst estimate of $1.36. Revenue for the quarter came in at $1.94 billion versus the consensus estimate of $2.01 billion.

• Record fourth quarter net sales of $1.9 billion (50% growth year-over-year)
• Fourth quarter gross margins expanded by 40 bps vs. prior year to 25.4%; favorable price-cost performance for the 2nd consecutive quarter
• Fourth quarter EPS of $0.54 vs. $0.73 in the prior year; Adjusted EPS of $1.07 vs. $1.06 in the prior year
• Fourth quarter and fiscal year 2018 net income of $48.3 million ($84.1 million Adjusted) and $98.6 million ($206.7 million Adjusted)
• Record fourth quarter and fiscal year 2018 Adjusted EBITDA of $178.3 million and $483.6 million, respectively

Paul Isabella, the Company's President and Chief Executive Officer, stated: “Despite significant weather impacted top-line challenges, we are encouraged by our fourth quarter and Fiscal 2018 progress. Our acquisition of Allied Building Products propelled Beacon to record net sales and Adjusted EBITDA in 2018, and our combined footprint now reaches all 50 U.S. states and six Canadian provinces. Fiscal 2018 operating cash flow was our best year on record, exceeding 2017 by $224 million and more than four times greater than any other year in our history. Gross margins in the fourth quarter expanded by 40 bps to 25.4% vs. the prior year and price-cost performance was positive again this quarter. Synergies from the Allied acquisition are exceeding expectations. We will build upon these successes in 2019 by leveraging our 2,000 person salesforce and vast network of over 500 branches to drive top-line growth, supported by the ongoing expansion of our robust digital platform. By optimizing our service network and enabling our salesforce to better meet our customers’ needs, we are well positioned to help customers save time, manage their work more efficiently and enhance their businesses. The fundamentals of our industry remain unchanged, with demand heavily influenced by high repair and remodel content. I am confident and excited about Beacon’s future in 2019 and beyond.”

For earnings history and earnings-related data on Beacon Roofing Supply (BECN) click here.

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