Financial Performance - Net sales for 2024 reached 9,763.2million,anincreaseof7.19,119.8 million in 2023[157] - Gross profit for 2024 was 2,504.8million,comparedto2,342.7 million in 2023, reflecting a gross profit margin of 25.7% for both years[157] - Net income for 2024 was 361.7million,downfrom435.0 million in 2023, resulting in a net income margin of 3.7%[157] - Net sales increased by 7.1% to 9.76billionin2024,upfrom9.12 billion in 2023[158] - Organic net sales rose by 2.5% to 9.35billion,drivenbya1−22.50 billion in 2024, compared to 2.34billionin2023[160]−AdjustedNetIncomefor2024was456.1 million, down from 507.9millionin2023,indicatingadecreaseof10.2930.2 million, slightly up from 929.6millionin2023,showingamarginalincreaseof0.11,839.4 million in 2024 from 1,630.5millionin2023,withselling,generalandadministrativeexpensesrisingto16.81.64 billion in 2024, primarily due to acquisitions and increased one-time costs[164] - Adjusted Operating Expense for 2024 was 1,720.9million,upfrom1,538.1 million in 2023, representing an increase of 11.8%[179] Share Repurchase and Capital Management - The company repurchased all 400,000 shares of preferred stock for 805.4million,includingaccrueddividends,onJuly31,2023[145]−Thesharerepurchaseprogramwasincreasedbyapproximately387.9 million, allowing for future repurchases of up to 500.0million[200]−Thecompanyrepurchasedatotalof2.4millionsharesin2024,comparedto1.6millionsharesin2023[203]−Thetotalamountrepurchasedin2024was225.0 million, significantly higher than the 110.9millionin2023[203]−Theaveragepricepershareforrepurchasesin2024was92.77, up from 68.82in2023[203]−AsofDecember31,2024,thecompanyhadapproximately164.1 million remaining for repurchases under the Repurchase Program[204] - The company incurred costs of 1.8milliondirectlyattributabletotheRepurchaseProgramin2024,comparedtoapproximately0.6 million in 2023[204] Debt and Interest Expenses - Interest expense increased to 177.3millionin2024from126.1 million in 2023, impacting overall profitability[157] - Interest expense rose to 177.3millionin2024,upfrom126.1 million in 2023, due to higher average debt balances[168] - The company had outstanding borrowings of 1.25billionunderitstermloanand1.24 billion under senior notes as of December 31, 2024[212] - The weighted-average effective interest rate on variable-rate debt instruments was 6.34% as of December 31, 2024[212] Cash Flow and Investments - Net cash provided by operating activities decreased to 419.4millionin2024from787.8 million in 2023, a decline of 46.2%[191] - Net cash used in investing activities increased significantly to 540.5millionin2024,comparedto225.6 million in 2023, an increase of 139.5%[192] - As of December 31, 2024, the company had cash and cash equivalents of 74.3millionandavailableborrowingsofapproximately1.13 billion[187] Strategic Initiatives - The Ambition 2025 Value Creation Framework aims to enhance customer service and expand market presence, with a focus on operational efficiency[140] - The company plans to explore additional acquisition opportunities as part of its Ambition 2025 initiative, indicating a focus on market expansion[189] Market Exposure and Risks - Approximately 3.0% of net sales in 2024 were derived from customers in Canada, exposing the company to foreign currency exchange rate risks[213] - The company does not currently enter into financial instruments to manage minimal foreign currency exchange risks, as a 10% fluctuation would not have a material impact[213] - The company is exposed to commodity price risks, particularly related to energy and raw materials, but had no derivative financial instruments in place as of December 31, 2024[214] Taxation - The effective tax rate was 25.5% in 2024, a slight decrease from 25.8% in 2023, primarily due to lower pre-tax income[170]
Beacon Roofing Supply(BECN)2025-02-27 21:05