Q3 2024 Beacon Roofing Supply Inc Earnings Call Transcript
Key Points
- Beacon Roofing Supply Inc (BECN) achieved record top line and strong bottom line performance, including a record for quarterly adjusted EBITDA.
- The company grew daily sales by nearly 6% year over year, driven primarily by acquisitions.
- Digital sales grew approximately 28% year over year, with the highest quarterly adoption ever at more than 28%.
- Beacon Roofing Supply Inc (BECN) has opened 62 new branches since the beginning of 2022, surpassing their Ambition 2025 goal.
- The company has acquired 24 companies since announcing their Ambition 2025 plan, adding 83 branches and generating around $1 billion in annual revenue.
- Overall level of activity came in lower than anticipated in the third quarter.
- Organic volumes, including those from greenfields, decreased approximately 1% to 2% per day.
- Adjusted operating expense as a percentage of sales increased to 16%, up 70 basis points year over year.
- Net debt leverage at approximately 3.1 times was slightly above the targeted 2 to 3x range.
- The company expects adjusted EBITDA in the lower half of their previously communicated guidance for the full year.
Good morning, ladies and gentlemen, and welcome to the Beacon Third Quarter 2024 Earnings Call. My name is Ezra, and I'll be your coordinator for today. (Operator Instructions) 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 and Treasurer. Please proceed, Mr. Sanghvi.
Thank you, Ezra. Good morning, 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 Prith Gandhi, Beacon's Chief Financial Officer. Julian and Prith will begin today's call with prepared remarks that will follow the slide deck posted to the Investor Relations section of Beacon's website. After that, we'll open the call for questions.
Before we begin, please reference slide 2 for a couple of brief reminders. First, this call will contain forward-looking statements about the company
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