Beacon Announces Appointment of Interim Chief Financial Officer

Announces Preliminary Above Expectations Results for Fourth Quarter and Full Year 2023

Exceeded Ambition 2025 Revenue and Shareholder Return Targets in 2023

Announces Preliminary 2024 Outlook

Beacon (Nasdaq: BECN) (the “Company”, “we,” “us” or “our”) is announcing the appointment of Carmelo Carrubba, Beacon’s current Vice President of Strategy and Transformation, as Interim Chief Financial Officer, effective January 20, 2024. Beacon is also announcing its estimated preliminary results for the quarter and full year ended December 31, 2023 and its preliminary 2024 outlook.

Appointment of Carmelo Carrubba as Interim Chief Financial Officer 

Beacon today announced the appointment of Carmelo Carrubba, Beacon’s current Vice President of Strategy and Transformation, as Interim Chief Financial Officer, effective January 20, 2024, while the Company conducts an external search for its next Chief Financial Officer. “I’m delighted that Carmelo has accepted this interim responsibility and look forward to working with him in this expanded role until a permanent CFO has been appointed,” said Julian Francis, Beacon’s President and CEO. The Company previously announced that Executive Vice President & Chief Financial Officer Frank Lonegro will be leaving the Company effective February 1, 2024 to become the chief executive officer of a publicly traded company outside of the building products industry.

Mr. Carrubba joined Beacon in April 2022 as Vice President of Strategy and Transformation and as a member of Beacon’s Executive Committee. In these key leadership positions, Mr. Carrubba shares responsibility for creating and supporting the value creation framework to drive the successful execution of Beacon’s Ambition 2025. Mr. Carrubba has extensive executive, functional and operational experience, having joined Beacon from Glatfelter, a US publicly-traded leading manufacturer of engineered materials, where he served as Vice President of Strategy and Sustainability, after serving in a similar role at Jacob Holm, a privately-held engineered material manufacturer, where he served as Corporate Vice President of Strategy and Sustainability. Prior to Jacob Holm, Mr. Carrubba spent 14 years within the exteriors industry at publicly traded Owens Corning, serving in various roles of increasing responsibility including strategic planning, general management with full P&L responsibilities, global commercial excellence director and Vice President of Strategic Marketing. While at Owens Corning, he also oversaw the deployment and execution of several major capital investments ranging in size from $10 million to $150 million. Mr. Carrubba also worked as a Manager for Bain & Company. He holds a B.A. in Economics and Business Administration from the University of Catania in Catania, Italy and an M.B.A. from INSEAD, Singapore and Fontainebleau, France.

Preliminary Results for Fourth Quarter and Full Year 2023

Beacon’s net sales for the quarter ended December 31, 2023 are expected to be approximately $2.3 billion. Gross margins for the quarter ended December 31, 2023 are expected to be approximately 25.7%. Net income for the quarter ended December 31, 2023 is estimated to range between $92 million and $96 million. Diluted net income per share is expected to range between $1.42 to $1.48 per share. Adjusted EBITDA for the quarter ended December 31, 2023 is estimated to range between $212 million and $217 million. Reconciliations of the Adjusted EBITDA ranges in this release to the most directly comparable GAAP financial measures are attached to this press release.

Net sales for the full year ended December 31, 2023 are expected to be approximately $9.1 billion. Gross margins for the full year ended December 31, 2023 are expected to be approximately 25.6%. Net income for the full year ended December 31, 2023 is estimated to range between $432 million and $436 million. Diluted net income per share is expected to range between $(0.48) to $(0.42) per share. Adjusted EBITDA for the full year ended December 31, 2023 is estimated to range between $925 million and $930 million.

These quarter and full year results are at the high end of the Company’s previously issued guidance primarily due to higher revenue. “This performance demonstrates the team’s continued high level of execution on Ambition 2025 in a dynamic macroenvironment,” said Julian Francis, Beacon’s President and CEO.

The Company anticipates announcing final earnings results for the quarter and full year ended December 31, 2023 on or about February 27, 2024.

The above fourth quarter and full year results are still preliminary and subject to the Company’s detailed quarter and year-end close procedures. The Company’s consolidated financial statements as of, and for the three and twelve months ended December 31, 2023 are not yet available. Accordingly, the information presented above reflects the Company’s preliminary estimates subject to the completion of the Company’s financial closing procedures and any adjustments that may result from the completion of the quarterly and annual review of the Company’s consolidated financial statements. As a result, these preliminary estimates may differ from the actual results that will be reflected in the Company’s consolidated financial statements for the fourth quarter and full year when they are completed and publicly disclosed. These preliminary estimates may change, and those changes may be material. The Company’s expectations with respect to its unaudited results for the periods discussed above are based on management estimates. The Company’s independent registered public accounting firm has not audited, reviewed or performed any procedures with respect to these preliminary estimates and, accordingly, does not express an opinion or any other form of assurance about them.

Preliminary 2024 Outlook

While Beacon expects a mixed market environment, it currently expects to deliver low single-digit top line growth in 2024, exclusive of new acquisitions in 2024. Beacon expects that sales growth in 2024 will be driven primarily by our Ambition 2025 initiatives, including greenfields and previously announced acquisitions, price carryover, and the benefit of two additional selling days in 2024, partially offset by expectations of weather-related demand resetting to the 10-year average and a slowdown in new multi-family and non-residential starts.

With relatively stable gross margins year over year, the Company currently expects full year 2024 Adjusted EBITDA to grow by low single digits versus the Company’s record performance in 2023. The Company expects to further refine this guidance in connection with its fourth quarter earnings release, reflecting, among other things, the completion of quarter-end close procedures, the Company’s performance in January and February 2024, any acquisitions completed in the first quarter, and the Company’s continuing assessment of macroeconomic conditions.

The Company expects to continue its execution of its Ambition 2025 initiatives in 2024, including investments in tuck-in acquisitions and greenfields, enhancements to its sales organizations, expansion of its digital and private label offerings, growth in its national accounts business, initial deployment of the Company’s pricing model, and driving productivity through branch optimization efforts and Bottom Quintile Branch improvements. Capital expenditure levels are expected to remain generally in line with 2023.

The preliminary full year 2024 financial outlook estimates described above are based on information available to management as of the date hereof, and as a result, these expectations could change.

For the full press release, click here.

About Beacon

Founded in 1928, Beacon is a Fortune 500, publicly traded distributor of building products, including roofing materials and complementary products, such as siding and waterproofing. The company operates over 500 branches throughout all 50 states in the U.S. and 6 provinces in Canada. Beacon serves an extensive base of nearly 100,000 customers, utilizing its vast branch network and diverse service offerings to provide high-quality products and support throughout the entire business lifecycle. Beacon offers its own private label brand, TRI-BUILT®, and has a proprietary digital account management suite, Beacon PRO+, which allows customers to manage their businesses online. Beacon’s stock is traded on the Nasdaq Global Select Market under the ticker symbol BECN. To learn more about Beacon, please visit www.becn.com.

Contact:

Jennifer Lewis – VP, Communications and Corporate Social Responsibility – jennifer.lewis@becn.com – (571) 752-1048

Source: Beacon Roofing Supply, Inc.