Q2 2024 Beacon Roofing Supply Inc Earnings Call Transcript
Key Points
- Beacon Roofing Supply Inc (BECN) delivered a record for quarterly sales in the second quarter, with net sales nearly 7% higher year over year.
- The company achieved double-digit adjusted EBITDA margins, with gross margin at 25.6%, approximately 20 basis points above the second quarter of last year.
- Beacon Roofing Supply Inc (BECN) has been proactive in expanding its footprint, acquiring 21 branches since the end of the first quarter, including notable acquisitions like Roofers Mart of Southern California and Extreme Metal Fabricators.
- The company has made significant investments in its digital platform, resulting in a 22% year-over-year increase in digital sales, with residential digital sales reaching nearly 26%.
- Beacon Roofing Supply Inc (BECN) continues to focus on sustainability, issuing its third annual corporate social responsibility report and making strides in reducing emissions and investing in renewable energy.
- Adjusted operating expenses increased by $63 million compared to the prior year quarter, driven by additional headcount and expenses associated with acquired and greenfield branches.
- The company faced challenges in managing day-to-day operations due to inconsistent demand caused by weather conditions, impacting operating leverage.
- Gross margin performance fell below expectations due to slower realization of the April shingle price increase and lower than expected inventory profits.
- Operating cash flow was negative $48 million in the quarter, with net inventory reaching a seasonal peak, up $259 million compared to the end of the second quarter of 2023.
- The company anticipates tough year-over-year comparisons in the fourth quarter for residential roofing due to strong storm demand in the prior year, which may impact overall sales growth.
Good evening, ladies and gentleen, and welcome to the Baker Hughes second quarter 2020 call earnings call. My name is Elliott, and I'll be your coordinator for today. At this time, all participants are in listen-only mode and will be we will be conducting a question and answer session towards the end of this call. At that time, I will give you instructions on how to ask a question. If anytime during the call you require operator assistance, please press star followed by zero and a coordinator will be happy to assist you as a reminder, this conference call is being recorded for replay purposes. I would now like to turn the call over to Mr. Binit Sanghvi, Vice President, Capital Markets under pressure.
Please proceed.
Mr. Sammy.
Thank you, Ali, and good evening, everybody. And as always, we thank you for taking the time to join our call today. I'm joined by Julian Francis, our Chief Executive Officer, and Chris Gundy, Beacon's Chief Financial Officer.
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