Beacon Roofing Supply(BECN) - 2024 Q3 - Quarterly Results

Financial Performance - Record net sales of $2.77 billion for Q3 2024, a 7.3% increase compared to Q3 2023[4] - Adjusted EBITDA reached $325.2 million, up from $309.6 million in the prior year[5] - Net income for Q3 2024 was $145.3 million, compared to $161.3 million in Q3 2023[5] - Gross margin improved to 26.3%, up from 26.0% in the prior year[4] - Year-to-date net sales reached $7.36 billion, a 7.9% increase compared to the prior year[6] - Net sales for Q3 2024 reached $2,772.6 million, a 7.3% increase from $2,584.3 million in Q3 2023[16] - Gross profit margin improved to 26.3% in Q3 2024, compared to 26.0% in Q3 2023[16] - Net income for Q3 2024 was $145.3 million, a decrease from $161.3 million in Q3 2023, resulting in a net income margin of 5.2%[16] - Adjusted Net Income for the three months ended September 30, 2024, was $176.9 million, compared to $180.0 million in the same period of 2023, indicating a slight decrease of 0.6%[35] Operating Expenses - Operating expenses increased to $483.7 million, representing 17.4% of net sales, compared to 16.2% in the prior year[4] - Operating expenses increased to $483.7 million, representing 17.4% of net sales, up from 16.2% in Q3 2023[16] - Adjusted Operating Expense for the three months ended September 30, 2024, was $442.9 million, representing 16.0% of net sales, compared to $395.2 million or 15.3% of net sales in the same period of 2023[34] - Operating expense as a percentage of net sales for the three months ended September 30, 2024, was 17.4%, compared to 16.2% in the same period of 2023[34] Assets and Liabilities - Total assets as of September 30, 2024, were $7,419.5 million, an increase from $6,553.0 million as of September 30, 2023[18] - Current liabilities increased to $1,935.5 million from $1,912.3 million in the previous year[18] - Long-term debt rose to $2,483.3 million, compared to $2,193.9 million in September 2023[18] - Cash and cash equivalents decreased to $68.0 million from $69.7 million in the previous year[18] - Borrowings under revolving lines of credit increased to $2,330.8 million, up from $1,720.0 million in the previous year[20] Sales Performance - Residential roofing product sales increased by 2.3%, while non-residential roofing product sales rose by 9.4%[5] - Residential roofing products sales increased to $3,661.2 million, up 4.0% from $3,521.5 million in the previous year[23] - Non-residential roofing products sales rose to $2,012.7 million, reflecting a year-over-year increase of 12.1%[23] - Acquired branches contributed approximately $247 million in annual sales, with a 5.6% increase in Q3 net sales attributed to acquisitions[1][5] Cash Flow - Net cash provided by operating activities significantly dropped to $59.6 million compared to $525.7 million in the same period last year, a decrease of 88.7%[20] - The company experienced a net cash used in investing activities of $482.2 million, compared to $144.9 million in the same period last year[20] Capital Expenditures - The company reported capital expenditures of $87.6 million for the nine months ended September 30, 2024, compared to $85.5 million in the prior year[20] Adjustments and Costs - For the three months ended September 30, 2024, total adjusting items amounted to $42.3 million, compared to $25.1 million for the same period in 2023, reflecting an increase of 68.5%[32] - Acquisition costs for the three months ended September 30, 2024, totaled $29.7 million, up from $24.6 million in the same period of 2023, reflecting a 20.7% increase[35] - Restructuring costs for the three months ended September 30, 2024, were $12.6 million, compared to $0.5 million in the same period of 2023, indicating a significant increase due to restructuring activities[35] Shareholder Equity - Beacon's total stockholders' equity increased to $1,897.6 million from $1,749.7 million in the previous year[18] Miscellaneous - The company expects annual savings of approximately $45 million from recent staffing adjustments[2] - The company received $5.9 million from a shareholder related to short-swing trading profits disgorged, recorded to additional paid-in capital[20] - Interest expense for the three months ended September 30, 2024, was $50.0 million, compared to $36.4 million in the same period of 2023, reflecting an increase of 37.1%[36] - The tax impact of adjusting items for the three months ended September 30, 2024, was $10.7 million, compared to $6.4 million in the same period of 2023, showing an increase of 67.7%[35]