ý
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
|
FOR
THE QUARTERLY PERIOD ENDED MARCH 31, 2008
|
|
OR
|
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
|
FOR
THE TRANSITION PERIOD
FROM TO
|
DELAWARE
|
|
36-4173371
|
(State
or other jurisdiction of
incorporation
or organization)
|
|
(I.R.S.
Employer
Identification
No.)
|
One
Lakeland Park Drive,
|
|
|
Peabody,
Massachusetts
|
|
01960
|
(Address
of principal executive offices)
|
|
(Zip
Code)
|
978-535-7668
(Registrant's
telephone number, including area
code)
|
Large
accelerated filer x
|
Accelerated
filer o
|
Non-accelerated
filer o (Do not check if
a smaller reporting company)
|
Smaller
reporting company o
|
Part I.
|
|
Financial
Information
|
|
3
|
Item 1.
|
|
Condensed
Consolidated Financial Statements (Unaudited)
|
|
3
|
|
|
Consolidated
Balance Sheets
|
|
3
|
|
|
Consolidated
Statements of Operations
|
|
4
|
|
|
Consolidated
Statements of Cash Flows
|
|
5
|
|
|
Notes
to Condensed Consolidated Financial Statements
(Unaudited)
|
|
6
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Item 2.
|
|
Management's
Discussion and Analysis of Financial Condition And Results of
Operations
|
|
13
|
|
|
Overview
|
|
13
|
|
|
Results
of Operations
|
|
14
|
|
|
Seasonality
and Quarterly Fluctuations
|
|
19
|
|
|
Liquidity
and Capital Resources
|
|
20
|
|
|
Cautionary
Statement
|
|
24
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Item 3.
|
|
Quantitative
and Qualitative Disclosures about Market Risk
|
|
24
|
|
|
Interest
Rate Risk
|
|
24
|
|
|
Foreign
Exchange Risk
|
|
25
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Item 4.
|
|
Controls
and Procedures
|
|
25
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Part II.
|
|
Other
Information
|
|
25
|
Item 4.
|
|
Submission
of Matters to a Vote of Security Holders
|
|
25
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Item 6.
|
|
Exhibits
|
|
27
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Signature
Page
|
|
28
|
||
Index
to Exhibits
|
|
|
|
(Unaudited)
|
(Unaudited)
|
(Note)
|
|||||||
|
March
31,
|
March
31,
|
September 30,
|
|||||||
2008
|
2007
|
2007
|
||||||||
|
(Dollars
in thousands)
|
|||||||||
Assets
|
||||||||||
Current
assets:
|
||||||||||
Cash
and cash equivalents
|
$
|
10,574
|
$
|
43,315
|
$
|
6,469
|
||||
Accounts
receivable, less allowance of $10,925 at March 31, 2008, $6,142
at March
31, 2007, and $7,970 at September 30, 2007
|
173,039
|
152,318
|
267,563
|
|||||||
Inventories
|
194,551
|
178,804
|
165,848
|
|||||||
Prepaid
expenses and other assets
|
26,545
|
32,034
|
34,509
|
|||||||
Deferred
income taxes
|
19,276
|
12,046
|
13,196
|
|||||||
|
||||||||||
Total
current assets
|
423,985
|
418,517
|
487,585
|
|||||||
|
||||||||||
Property
and equipment, net
|
61,384
|
68,211
|
69,753
|
|||||||
Goodwill
|
354,727
|
288,816
|
355,155
|
|||||||
Other
assets, net
|
85,886
|
60,887
|
94,167
|
|||||||
|
||||||||||
Total
assets
|
$
|
925,982
|
$
|
836,431
|
$
|
1,006,660
|
||||
|
||||||||||
Liabilities
and stockholders' equity
|
||||||||||
Current
liabilities:
|
||||||||||
Accounts payable
|
$
|
128,386
|
$
|
106,925
|
$
|
183,257
|
||||
Accrued expenses
|
60,262
|
47,920
|
54,020
|
|||||||
Current portion of long-term obligations
|
12,828
|
6,454
|
34,773
|
|||||||
|
||||||||||
Total
current liabilities
|
201,476
|
161,299
|
272,050
|
|||||||
|
||||||||||
Senior
notes payable, net of current portion
|
341,250
|
345,625
|
343,000
|
|||||||
Deferred
income taxes
|
36,450
|
19,009
|
36,490
|
|||||||
Long-term
obligations under equipment financing and other, net of current
portion
|
30,801
|
12,903
|
31,270
|
|||||||
|
||||||||||
Commitments
and contingencies
|
||||||||||
|
||||||||||
Stockholders'
equity:
|
||||||||||
Common
stock (voting); $.01 par value; 100,000,000 shares authorized;
44,281,312
issued in March of 2008, 44,236,142 in March of 2007 and 44,273,312
issued
in September of 2007
|
443
|
442
|
443
|
|||||||
Undesignated
preferred stock; 5,000,000 shares authorized, none issued or
outstanding
|
-
|
-
|
-
|
|||||||
Additional
paid-in capital
|
214,188
|
208,914
|
211,567
|
|||||||
Retained
earnings
|
103,749
|
83,827
|
106,640
|
|||||||
Accumulated
other comprehensive income (loss)
|
(2,375
|
)
|
4,412
|
5,200
|
||||||
|
||||||||||
Total
stockholders' equity
|
316,005
|
297,595
|
323,850
|
|||||||
|
||||||||||
Total
liabilities and stockholders' equity
|
$
|
925,982
|
$
|
836,431
|
$
|
1,006,660
|
|
Three Months Ended March 31,
|
Six Months Ended March 31,
|
|||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||
Unaudited
|
|||||||||||||
(Dollars
in thousands, except per share data)
|
|||||||||||||
|
|||||||||||||
Net
sales
|
$
|
304,251
|
$
|
286,945
|
$
|
702,647
|
$
|
667,154
|
|||||
Cost
of products sold
|
235,859
|
220,777
|
542,561
|
509,252
|
|||||||||
|
|||||||||||||
Gross
profit
|
68,392
|
66,168
|
160,086
|
157,902
|
|||||||||
|
|||||||||||||
Operating
expenses
|
75,332
|
70,394
|
151,249
|
141,066
|
|||||||||
|
|||||||||||||
Income
(loss) from operations
|
(6,940
|
)
|
(4,226
|
)
|
8,837
|
16,836
|
|||||||
|
|||||||||||||
Interest
expense
|
6,728
|
6,381
|
13,737
|
12,709
|
|||||||||
|
|||||||||||||
Income
(loss) before income taxes
|
(13,668
|
)
|
(10,607
|
)
|
(4,900
|
)
|
4,127
|
||||||
|
|||||||||||||
Income
tax expense (benefit)
|
(5,536
|
)
|
(4,268
|
)
|
(2,009
|
)
|
1,661
|
||||||
|
|||||||||||||
Net
income (loss)
|
$
|
(8,132
|
)
|
$
|
(6,339
|
)
|
$
|
(2,891
|
)
|
$
|
2,466
|
||
|
|||||||||||||
Net
income (loss) per share:
|
|||||||||||||
Basic
|
$
|
(0.18
|
)
|
$
|
(0.14
|
)
|
$
|
(0.07
|
)
|
$
|
0.06
|
||
|
|||||||||||||
Diluted
|
$
|
(0.18
|
)
|
$
|
(0.14
|
)
|
$
|
(0.07
|
)
|
$
|
0.05
|
||
|
|||||||||||||
Weighted
average shares used in computing
|
|||||||||||||
net
income (loss) per share:
|
|||||||||||||
Basic
|
44,280,600
|
43,927,745
|
44,276,916
|
43,898,332
|
|||||||||
|
|||||||||||||
Diluted
|
44,280,600
|
43,927,745
|
44,276,916
|
44,874,694
|
|
Six
Months ended March 31,
|
||||||
|
2008
|
2007
|
|||||
|
|||||||
|
Unaudited
(in thousands)
|
||||||
|
|||||||
Operating
activities:
|
|||||||
Net
income (loss)
|
$
|
(2,891
|
)
|
$
|
2,466
|
||
Adjustments
to reconcile net income (loss) to net cash provided by operating
activities:
|
|||||||
Depreciation
and amortization
|
17,488
|
13,878
|
|||||
Stock-based
compensation
|
2,590
|
2,605
|
|||||
Deferred
income taxes
|
(1,049
|
)
|
(860
|
)
|
|||
Changes
in assets and liabilities, net of the adjustments of businesses
acquired:
|
|||||||
Accounts
receivable
|
93,889
|
57,769
|
|||||
Inventories
|
(29,008
|
)
|
(14,864
|
)
|
|||
Prepaid
expenses and other assets
|
6,075
|
7,995
|
|||||
Accounts
payable and accrued expenses
|
(57,609
|
)
|
(58,887
|
)
|
|||
Net
cash provided by operating activities
|
29,485
|
10,102
|
|||||
|
|||||||
Investing
activities:
|
|||||||
Purchases
of property and equipment, net of sale proceeds
|
(1,214
|
)
|
(17,233
|
)
|
|||
Net
cash used in investing activities
|
(1,214
|
)
|
(17,233
|
)
|
|||
|
|||||||
Financing
activities:
|
|||||||
Repayments
under revolving lines of credit, net
|
(21,053
|
)
|
(229,752
|
)
|
|||
Net
borrowings (repayments) under senior notes payable, and
other
|
(2,898
|
)
|
278,641
|
||||
Proceeds
from exercise of options
|
15
|
1,034
|
|||||
Payment
of deferred financing costs
|
-
|
(2,954
|
)
|
||||
Income
tax benefit from stock-based compensation deductions in excess
of the
associated compensation costs
|
16
|
1,845
|
|||||
Net
cash provided (used) by financing activities
|
(23,920
|
)
|
48,814
|
||||
|
|||||||
Effect
of exchange rate changes on cash
|
(246
|
)
|
(215
|
)
|
|||
|
|||||||
Net
increase in cash and cash equivalents
|
4,105
|
41,468
|
|||||
Cash
and cash equivalents at beginning of year
|
6,469
|
1,847
|
|||||
|
|||||||
Cash
and cash equivalents at end of period
|
$
|
10,574
|
$
|
43,315
|
|||
|
|||||||
Non-cash
transactions:
|
|||||||
Conversion
of senior notes payable to new senior notes payable
|
$
|
-
|
$
|
66,839
|
|
Three Months Ended March 31,
|
Six Months Ended March 31,
|
|||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||
Weighted-average
common shares outstanding for basic
|
44,280,600
|
43,927,745
|
44,276,916
|
43,898,332
|
|||||||||
Dilutive
effect of employee stock options
|
-
|
-
|
-
|
976,362
|
|||||||||
Weighted-average
shares assuming dilution
|
44,280,600
|
43,927,745
|
44,276,916
|
44,874,694
|
|
Six
Months Ended March 31,
|
||||||
|
2008
|
2007
|
|||||
Risk
free interest rate
|
2.79
- 4.08
|
%
|
4.52
- 4.81
|
%
|
|||
Expected
life
|
6.0
years
|
5.0
years
|
|||||
Expected
volatility
|
45
|
%
|
45
|
%
|
|||
Expected
dividend yield
|
0
|
%
|
0
|
%
|
|
Shares
|
Weighted-Average
Exercise Price
|
Average
Remaining
Contractual
Life
|
Aggregate
Intrinsic
Value
|
|||||||||
|
|
|
(Years)
|
(in
Millions)
|
|||||||||
Outstanding
at September 30, 2007
|
3,045,120
|
$
|
12.15
|
||||||||||
Granted
|
748,523
|
9.33
|
|||||||||||
Exercised
|
(8,000
|
)
|
1.87
|
||||||||||
Forfeited
|
(77,605
|
)
|
17.73
|
||||||||||
|
|||||||||||||
Outstanding
at March 31, 2008
|
3,708,038
|
$
|
11.48
|
7.15
|
$
|
9.7
|
|||||||
|
|||||||||||||
Vested
and expected to vest at March 31, 2008
|
3,628,270
|
$
|
11.41
|
7.11
|
$
|
9.7
|
|||||||
|
|||||||||||||
Exercisable
at March 31, 2008
|
2,378,570
|
$
|
9.65
|
6.11
|
$
|
9.2
|
Unaudited
|
Three Months Ended March 31,
|
Six Months Ended March 31,
|
|||||||||||
(Dollars
in thousands, except per share data)
|
2008
|
2007
|
2008
|
2007
|
|||||||||
|
|||||||||||||
Net
income (loss)
|
$
|
(8,132
|
)
|
$
|
(6,339
|
)
|
$
|
(2,891
|
)
|
$
|
2,466
|
||
|
|||||||||||||
Foreign
currency translation adjustment, net of tax effect
|
(953
|
)
|
325
|
(878
|
)
|
(1,128
|
)
|
||||||
|
|||||||||||||
Unrealized
loss on financial derivatives, net of tax effect
|
(4,253
|
)
|
(396
|
)
|
(6,697
|
)
|
(396
|
)
|
|||||
|
|||||||||||||
Comprehensive
income (loss)
|
$
|
(13,338
|
)
|
$
|
(6,410
|
)
|
$
|
(10,466
|
)
|
$
|
942
|
Accounts
receivable
|
$
|
31,706
|
||
Inventories
|
13,349
|
|||
Prepaid
expenses and other
|
982
|
|||
Property
and equipment
|
4,150
|
|||
Deferred
taxes
|
(10,400
|
)
|
||
Accounts
payable and accrued expenses
|
(19,189
|
)
|
||
|
||||
Net
assets
|
20,598
|
|||
Non-compete
|
3,300
|
|||
Customer
relationships
|
29,550
|
|||
Goodwill
|
62,282
|
|||
|
||||
Purchase
price
|
$
|
115,730
|
Three Months Ended March 31,
|
Six Months Ended March 31,
|
||||||||||||
|
|
|
|||||||||||
2008
|
2007
|
2008
|
2007
|
||||||||||
|
|
|
|
|
|||||||||
Net
sales
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
|||||
Cost
of products sold
|
77.5
|
76.9
|
77.2
|
76.3
|
|||||||||
|
|||||||||||||
Gross profit
|
22.5
|
23.1
|
22.8
|
23.7
|
|||||||||
|
|||||||||||||
Operating
expenses
|
24.8
|
24.5
|
21.5
|
21.1
|
|||||||||
|
|||||||||||||
Income
(loss) from operations
|
(2.3
|
)
|
(1.5
|
)
|
1.3
|
2.5
|
|||||||
Interest
expense
|
(2.2
|
)
|
(2.2
|
)
|
(2.0
|
)
|
(1.9
|
)
|
|||||
|
|||||||||||||
Income
(loss) before income taxes
|
(4.5
|
)
|
(3.7
|
)
|
(0.7
|
)
|
0.6
|
||||||
Income
tax (expense) benefit
|
1.8
|
1.5
|
0.3
|
(0.2
|
)
|
||||||||
|
|||||||||||||
Net
income (loss)
|
(2.7)
|
%
|
(2.2)
|
%
|
(0.4)
|
%
|
0.4
|
%
|
|
Existing
Markets
|
Acquired
Markets
|
Consolidated
|
||||||||||||||||
March
31,
|
March
31,
|
March
31,
|
|||||||||||||||||
2008
|
2007
|
2008
|
2007
|
2008
|
2007
|
||||||||||||||
|
|
|
|
|
|
|
|||||||||||||
Net
Sales
|
$
|
267,802
|
$
|
286,945
|
$
|
36,449
|
$
|
-
|
$
|
304,251
|
$
|
286,945
|
|||||||
Gross
Profit
|
62,027
|
66,168
|
6,365
|
-
|
68,392
|
66,168
|
|||||||||||||
Gross
Margin
|
23.2
|
%
|
23.1
|
%
|
17.5
|
%
|
22.5
|
%
|
23.1
|
%
|
|||||||||
Operating
Expenses
|
65,653
|
70,394
|
9,679
|
-
|
75,332
|
70,394
|
|||||||||||||
Operating
Expenses as a % of Net Sales
|
24.5
|
%
|
24.5
|
%
|
26.6
|
%
|
24.8
|
%
|
24.5
|
%
|
|||||||||
Operating
Loss
|
$
|
(3,626
|
)
|
$
|
(4,226
|
)
|
$
|
(3,314
|
)
|
$
|
-
|
$
|
(6,940
|
)
|
$
|
(4,226
|
)
|
||
Operating
Margin
|
-1.4
|
%
|
-1.5
|
%
|
-9.1
|
%
|
-2.3
|
%
|
-1.5
|
%
|
·
|
a
continued decline in residential construction, especially in the
mid-Atlantic and Southeastern states;
and
|
·
|
to
a lesser extent, the general slowing of residential remodeling and
re-roofing in our markets;
|
·
|
increased
non-residential roofing activity in most markets;
and
|
·
|
four
new branches opened in existing markets since March 31,
2007.
|
March
31, 2008
|
March
31, 2007
|
||||||||||||||||||
Sales
|
Mix
|
Sales
|
Mix
|
Change
|
|||||||||||||||
(dollars
in thousands)
|
|||||||||||||||||||
|
|
||||||||||||||||||
Residential
roofing products
|
$
|
120,558
|
45.0
|
%
|
$
|
134,678
|
46.9
|
%
|
$
|
(14,120
|
)
|
-10.5
|
%
|
||||||
Non-residential
roofing products
|
85,644
|
32.0
|
%
|
82,210
|
28.7
|
%
|
3,434
|
4.2
|
|||||||||||
Complementary
building products
|
61,600
|
23.0
|
%
|
70,057
|
24.4
|
%
|
(8,457
|
)
|
-12.1
|
||||||||||
|
|||||||||||||||||||
$
|
267,802
|
100.0
|
%
|
$
|
286,945
|
100.0
|
%
|
$
|
(19,143
|
)
|
-6.7
|
%
|
|
March
31,
|
|
March
31,
|
|
|
|
||||||||||
|
|
2008
|
|
2007
|
|
Change
|
|
|||||||||
|
|
(dollars
in millions)
|
||||||||||||||
Gross
profit
|
$
|
68.4
|
$
|
66.2
|
$
|
2.2
|
3.3
|
%
|
||||||||
Existing
Markets
|
62.0
|
66.2
|
$
|
(4.1
|
)
|
-6.3
|
%
|
|||||||||
|
||||||||||||||||
Gross
margin
|
22.5
|
%
|
23.1
|
%
|
-0.6
|
%
|
||||||||||
Existing
Markets
|
23.2
|
%
|
23.1
|
%
|
0.1
|
%
|
March
31,
|
March
31,
|
|||||||||||||||
2008
|
2007
|
Change
|
||||||||||||||
(dollars
in millions)
|
||||||||||||||||
Operating
expenses
|
$
|
75.3
|
$
|
70.4
|
$
|
4.9
|
7.0
|
%
|
||||||||
Existing
Markets
|
65.7
|
70.4
|
(4.7
|
)
|
-6.7
|
%
|
||||||||||
|
||||||||||||||||
Operating expenses as a % of sales
|
24.8
|
%
|
24.5
|
%
|
0.3
|
%
|
||||||||||
Existing
Markets
|
24.5
|
%
|
24.5
|
%
|
0.0
|
%
|
·
|
payroll
and related costs decreased by $3.0 million primarily from a lower
headcount, offset somewhat by less favorable medical insurance claims
and
costs at our four new branches;
|
·
|
savings
of $1.1 million in selling, warehouse and general and administrative
expenses from cost-saving measures in many areas and also from allocations
to our acquired markets; and
|
·
|
reduced
depreciation and amortization of $0.6 million due to lower
amortization amounts for customer relationship intangible assets
and
somewhat from substantially lower capital expenditures in
2008.
|
Existing
Markets
|
Acquired
Markets
|
Consolidated
|
|||||||||||||||||
March
31,
|
March
31,
|
March
31,
|
|||||||||||||||||
2008
|
2007
|
2008
|
2007
|
2008
|
2007
|
||||||||||||||
|
|||||||||||||||||||
Net
Sales
|
$
|
601,537
|
$
|
667,154
|
$
|
101,110
|
$
|
-
|
$
|
702,647
|
$
|
667,154
|
|||||||
Gross
Profit
|
143,212
|
157,902
|
16,874
|
-
|
160,086
|
157,902
|
|||||||||||||
Gross
Margin
|
23.8
|
%
|
23.7
|
%
|
16.7
|
%
|
22.8
|
%
|
23.7
|
%
|
|||||||||
Operating
Expenses
|
132,059
|
141,066
|
19,190
|
-
|
151,249
|
141,066
|
|||||||||||||
Operating
Expenses as a % of Net Sales
|
22.0
|
%
|
21.1
|
%
|
19.0
|
%
|
21.5
|
%
|
21.1
|
%
|
|||||||||
Operating
Income (Loss)
|
$
|
11,153
|
$
|
16,836
|
$
|
(2,316
|
)
|
$
|
-
|
$
|
8,837
|
$
|
16,836
|
||||||
Operating
Margin
|
1.9
|
%
|
2.5
|
%
|
-2.3
|
%
|
1.3
|
%
|
2.5
|
%
|
|
March
31, 2008
|
March
31, 2007
|
|||||||||||||||||
|
Sales
|
|
Mix
|
|
Sales
|
|
Mix
|
|
Change
|
||||||||||
(dollars
in thousands)
|
|||||||||||||||||||
|
|
||||||||||||||||||
Residential
roofing products
|
$
|
264,100
|
43.9
|
%
|
$
|
311,161
|
46.6
|
%
|
$
|
(47,061
|
)
|
-15.1
|
%
|
||||||
Non-residential
roofing products
|
200,626
|
33.4
|
%
|
199,853
|
30.0
|
%
|
773
|
0.4
|
|||||||||||
Complementary
building products
|
136,811
|
22.7
|
%
|
156,140
|
23.4
|
%
|
(19,329
|
)
|
-12.4
|
||||||||||
|
|||||||||||||||||||
$
|
601,537
|
100.0
|
%
|
$
|
667,154
|
100.0
|
%
|
$
|
(65,617
|
)
|
-9.8
|
%
|
|
March
31,
|
|
March
31,
|
|
|
|
||||||||||
|
|
2008
|
|
2007
|
|
Change
|
|
|||||||||
|
|
(dollars
in millions)
|
||||||||||||||
Gross
Profit
|
$
|
160.1
|
$
|
157.9
|
$
|
2.2
|
1.4
|
%
|
||||||||
Existing
Markets
|
$
|
143.2
|
$
|
157.9
|
$
|
(14.7
|
)
|
-9.3
|
%
|
|||||||
|
||||||||||||||||
Gross
Margin
|
22.8
|
%
|
23.7
|
%
|
-0.9
|
%
|
||||||||||
Existing
Markets
|
23.8
|
%
|
23.7
|
%
|
0.1
|
%
|
March
31,
|
March
31,
|
|||||||||||||||
2008
|
2007
|
Change
|
||||||||||||||
(dollars
in millions)
|
||||||||||||||||
Operating
Expenses
|
$
|
151.2
|
$
|
141.1
|
$
|
10.2
|
7.2
|
%
|
||||||||
Existing
Markets
|
$
|
132.1
|
$
|
141.1
|
$
|
(9.0
|
)
|
-6.4
|
%
|
|||||||
|
||||||||||||||||
Operating
Expenses as a % of Sales
|
21.5
|
%
|
21.1
|
%
|
0.4
|
%
|
||||||||||
Existing
Markets
|
22.0
|
%
|
21.1
|
%
|
0.9
|
%
|
·
|
payroll
and related costs decreased by $6.3 million primarily from a lower
headcount, offset somewhat by costs at our four new
branches;
|
·
|
savings
of $2.8 million in selling, warehouse and general and administrative
expenses from cost-saving measures in many areas and allocations
to our
acquired markets; and
|
·
|
reduced
depreciation and amortization of $0.6 million due to lower
amortization amounts for customer relationship intangible assets
and
somewhat from substantially lower capital expenditures in YTD 2008;
|
·
|
a
$0.7 million increase in our provision for bad debts as we increased
our accounts receivable allowance due primarily to the business
slowdown.
|
|
Fiscal
year 2008
|
|
Fiscal
year 2007
|
|
|||||||||||||||
|
|
Qtr
1
|
|
Qtr
2
|
|
Qtr
1
|
|
Qtr
2
|
|
Qtr
3
|
|
Qtr
4
|
|||||||
(dollars
in millions, except per share data)
|
|||||||||||||||||||
(unaudited)
|
|||||||||||||||||||
Net
sales
|
$
|
398.4
|
$
|
304.3
|
$
|
380.2
|
$
|
286.9
|
$
|
484.9
|
$
|
493.8
|
|||||||
Gross
profit
|
91.7
|
68.4
|
91.7
|
66.2
|
107.8
|
108.2
|
|||||||||||||
Income
(loss) from operations
|
15.8
|
(6.9
|
)
|
21.1
|
(4.2
|
)
|
26.7
|
26.3
|
|||||||||||
Net
income (loss)
|
$
|
5.2
|
$
|
(8.1
|
)
|
$
|
8.8
|
$
|
(6.3
|
)
|
$
|
11.5
|
$
|
11.3
|
|||||
|
|||||||||||||||||||
Earnings
(loss) per share - basic
|
$
|
0.12
|
$
|
(0.18
|
)
|
$
|
0.20
|
$
|
(0.14
|
)
|
$
|
0.26
|
$
|
0.26
|
|||||
Earnings
(loss) per share - fully diluted
|
$
|
0.12
|
$
|
(0.18
|
)
|
$
|
0.20
|
$
|
(0.14
|
)
|
$
|
0.26
|
$
|
0.25
|
|||||
|
|||||||||||||||||||
Quarterly
sales as % of year's sales
|
23.1
|
%
|
17.4
|
%
|
29.5
|
%
|
30.0
|
%
|
|||||||||||
Quarterly
gross profit as % of year's gross profit
|
24.5
|
%
|
17.7
|
%
|
28.8
|
%
|
28.9
|
%
|
|||||||||||
Quarterly
income (loss) from operations as % of year's income (loss) from
operations
|
30.2
|
%
|
-6.1
|
%
|
38.2
|
%
|
37.7
|
%
|
·
|
the
adequacy of available bank lines of
credit;
|
·
|
the
ability to attract long-term capital with satisfactory
terms;
|
·
|
cash
flows generated from operating
activities;
|
·
|
acquisitions;
and
|
·
|
capital
expenditures.
|
·
|
a
senior secured credit facility in the
U.S.;
|
·
|
a
Canadian senior secured credit facility;
and
|
·
|
two
equipment financing facilities.
|
· |
the
base rate (that is the higher of (a) the base rate for corporate
loans
quoted in The Wall Street Journal or (b) the Federal Reserve overnight
rate plus 1/2 of 1%) plus a margin of 0.75% for the Term
Loan.
|
·
|
the
current LIBOR Rate plus a margin of 1.00% (for U.S. Revolver loans)
or
2.00% (for Term Loan).
|
·
|
an
index rate (that is the higher of (1) the Canadian prime rate as
quoted in The Globe and Mail and (2) the 30-day BA Rate plus 0.75%),
or
|
·
|
the
BA rate as described in the Canadian facility plus
1.00%.
|
VOTES FOR
|
|
VOTES AGAINST
|
ABSTAIN
|
NON-VOTES
|
||
30,862,975
|
|
4,950,869
|
98,258
|
4,374,935
|
DIRECTOR NOMINEE
|
VOTES FOR
|
VOTES WITHHELD
|
|||||
Robert
R. Buck
|
39,665,271
|
621,766
|
|||||
Andrew
R. Logie
|
39,798,958
|
488,079
|
|||||
H.
Arthur Bellows, Jr.
|
38,855,873
|
1,431,164
|
|||||
James
J. Gaffney
|
39,965,417
|
321,620
|
|||||
Peter
M. Gotsch
|
39,654,951
|
632,086
|
|||||
Stuart
A. Randle
|
39,966,417
|
320,620
|
|||||
Wilson
B. Sexton
|
39,787,879
|
499,158
|
Exhibit
Number
|
Document Description
|
|
10.1
|
Beacon
Roofing Supply, Inc. Amended and Restated 2004 Stock Plan
(incorporated herein by reference to Exhibit 10.1 to Beacon Roofing
Supply
Inc.’s current report on Form 8-K filed on February 11, 2008).
|
|
31.1
|
|
Certification
by Robert R. Buck pursuant to Rule 13a-14(a) and 15d-14(a), as
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
31.2
|
|
Certification
by David R. Grace pursuant to Rule 13a-14(a) and 15d-14(a), as
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
32.1
|
|
Certification
by Robert R. Buck and David R. Grace pursuant to 18 U.S.C.
Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
|
|
|
BEACON
ROOFING SUPPLY, INC.
|
|
|
BY:
|
/s/
DAVID R. GRACE
|
|
David
R. Grace, Senior
Vice President & Chief Financial Officer, and duly
authorized
signatory on behalf of the
Registrant
|
Exhibit Number
|
Document
Description
|
|
10.1
|
Beacon
Roofing Supply, Inc. Amended and Restated 2004 Stock Plan
(incorporated herein by reference to Exhibit 10.1 to Beacon Roofing
Supply
Inc.’s current report on Form 8-K filed on February 11,
2008).
|
|
31.1
|
|
Certification
by Robert R. Buck pursuant to Rule 13a-14(a) and 15d-14(a), as
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
31.2
|
|
Certification
by David R. Grace pursuant to Rule 13a-14(a) and 15d-14(a), as
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
32.1
|
|
Certification
by Robert R. Buck and David R. Grace pursuant to 18 U.S.C.
Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
|