x
|
QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
|
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)
|
Large
accelerated filer ¨
|
Accelerated
filer x
|
Non-accelerated
filer ¨
(Do not check if a smaller reporting company)
|
Smaller
reporting company ¨
|
Part I.
|
Financial Information
|
2
|
Item 1.
|
Condensed Consolidated Financial Statements
(Unaudited)
|
2
|
Consolidated Balance Sheets
|
2
|
|
Consolidated Statements of
Operations
|
3
|
|
Consolidated Statements of Cash
Flows
|
4
|
|
Notes to Condensed Consolidated Financial
Statements
|
5
|
|
Item 2.
|
Management's Discussion and Analysis of Financial
Condition And Results of Operations
|
10
|
Overview
|
10
|
|
Results of Operations
|
11
|
|
Seasonality and Quarterly
Fluctuations
|
16
|
|
Liquidity and Capital
Resources
|
16
|
|
Cautionary Statement
|
19
|
|
Item 3.
|
Quantitative and Qualitative Disclosures about
Market Risk
|
19
|
Interest Rate Risk
|
19
|
|
Foreign Exchange Risk
|
20
|
|
Item 4.
|
Controls and Procedures
|
20
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Part II.
|
Other Information
|
21
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Item 6.
|
Exhibits
|
21
|
Signature
Page
|
22
|
|
Index
to Exhibits
|
23
|
(Unaudited)
|
(Unaudited)
|
(Note)
|
||||||||||
June 30,
|
June 30,
|
September 30,
|
||||||||||
2010
|
2009
|
2009
|
||||||||||
(Dollars
in thousands)
|
||||||||||||
Assets
|
||||||||||||
Current
assets:
|
||||||||||||
Cash
and cash equivalents
|
$ | 82,077 | $ | 83,037 | $ | 82,742 | ||||||
Accounts
receivable, less allowance of $12,189 at June 30, 2010,
|
||||||||||||
$14,754
at June 30, 2009, and $13,442 at September 30, 2009
|
234,789 | 226,741 | 227,379 | |||||||||
Inventories
|
223,458 | 216,341 | 195,011 | |||||||||
Prepaid
expenses and other assets
|
45,865 | 39,582 | 52,714 | |||||||||
Deferred
income taxes
|
18,021 | 20,860 | 19,323 | |||||||||
Total
current assets
|
604,210 | 586,561 | 577,169 | |||||||||
Property
and equipment, net
|
46,793 | 53,883 | 52,965 | |||||||||
Goodwill
|
360,094 | 353,209 | 354,193 | |||||||||
Other
assets, net
|
50,594 | 64,016 | 56,459 | |||||||||
Total
assets
|
$ | 1,061,691 | $ | 1,057,669 | $ | 1,040,786 | ||||||
Liabilities
and stockholders' equity
|
||||||||||||
Current
liabilities:
|
||||||||||||
Accounts
payable
|
$ | 168,227 | $ | 180,085 | $ | 151,683 | ||||||
Accrued
expenses
|
66,295 | 82,332 | 75,536 | |||||||||
Current
portion of long-term obligations
|
8,641 | 8,160 | 15,092 | |||||||||
Total
current liabilities
|
243,163 | 270,577 | 242,311 | |||||||||
Senior
notes payable, net of current portion
|
319,610 | 329,875 | 322,090 | |||||||||
Deferred
income taxes
|
35,864 | 34,516 | 36,555 | |||||||||
Long-term
obligations under equipment financing and other, net of current
portion
|
12,063 | 21,848 | 16,257 | |||||||||
Commitments
and contingencies
|
||||||||||||
Stockholders'
equity:
|
||||||||||||
Common
stock (voting); $.01 par value; 100,000,000 shares
authorized;
|
||||||||||||
45,644,332
issued and outstanding at June 30, 2010, 45,121,746 at
|
||||||||||||
June
30, 2009, and 45,244,837 at September 30, 2009
|
456 | 451 | 452 | |||||||||
Undesignated
preferred stock; 5,000,000 shares authorized, none issued or
outstanding
|
- | - | - | |||||||||
Additional
paid-in capital
|
234,772 | 224,500 | 226,793 | |||||||||
Retained
earnings
|
217,026 | 180,332 | 199,364 | |||||||||
Accumulated
other comprehensive loss
|
(1,263 | ) | (4,430 | ) | (3,036 | ) | ||||||
Total
stockholders' equity
|
450,991 | 400,853 | 423,573 | |||||||||
Total
liabilities and stockholders' equity
|
$ | 1,061,691 | $ | 1,057,669 | $ | 1,040,786 |
Three Months Ended June 30,
|
Nine Months Ended June 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Unaudited
|
||||||||||||||||
(Dollars
in thousands, except per share data)
|
||||||||||||||||
Net
sales
|
$ | 474,279 | $ | 463,586 | $ | 1,127,366 | $ | 1,246,218 | ||||||||
Cost
of products sold
|
369,991 | 355,761 | 873,673 | 948,117 | ||||||||||||
Gross
profit
|
104,288 | 107,825 | 253,693 | 298,101 | ||||||||||||
Operating
expenses
|
74,056 | 74,239 | 210,936 | 225,382 | ||||||||||||
Income
from operations
|
30,232 | 33,586 | 42,757 | 72,719 | ||||||||||||
Interest
expense
|
3,596 | 5,566 | 14,682 | 17,304 | ||||||||||||
Income
before income taxes
|
26,636 | 28,020 | 28,075 | 55,415 | ||||||||||||
Income
tax expense
|
10,345 | 10,833 | 10,413 | 22,029 | ||||||||||||
Net
income
|
$ | 16,291 | $ | 17,187 | $ | 17,662 | $ | 33,386 | ||||||||
Net
income per share:
|
||||||||||||||||
Basic
|
$ | 0.36 | $ | 0.38 | $ | 0.39 | $ | 0.74 | ||||||||
Diluted
|
$ | 0.35 | $ | 0.38 | $ | 0.38 | $ | 0.74 | ||||||||
Weighted
average shares used in computing
|
||||||||||||||||
net
income per share:
|
||||||||||||||||
Basic
|
45,588,778 | 45,100,853 | 45,422,222 | 44,954,582 | ||||||||||||
Diluted
|
46,289,811 | 45,541,415 | 46,012,172 | 45,417,863 |
Nine Months Ended June 30,
|
||||||||
2010
|
2009
|
|||||||
Unaudited (in thousands)
|
||||||||
Operating
activities:
|
||||||||
Net
income
|
$ | 17,662 | $ | 33,386 | ||||
Adjustments
to reconcile net income to net cash
|
||||||||
provided
by operating activities:
|
||||||||
Depreciation
and amortization
|
20,827 | 22,835 | ||||||
Stock-based
compensation
|
3,799 | 3,626 | ||||||
Deferred
income taxes
|
(1,421 | ) | (735 | ) | ||||
Changes
in assets and liabilities, net of the effects
|
||||||||
of
businesses acquired:
|
||||||||
Accounts
receivable
|
(1,574 | ) | 55,086 | |||||
Inventories
|
(24,643 | ) | (8,143 | ) | ||||
Prepaid
expenses and other assets
|
7,765 | 2,622 | ||||||
Accounts
payable and accrued expenses
|
4,057 | (24,375 | ) | |||||
Net
cash provided by operating activities
|
26,472 | 84,302 | ||||||
Investing
activities:
|
||||||||
Purchases
of property and equipment, net of sales proceeds
|
(5,364 | ) | (10,691 | ) | ||||
Acquisition
of businesses
|
(12,613 | ) | - | |||||
Net
cash used in investing activities
|
(17,977 | ) | (10,691 | ) | ||||
Financing
activities:
|
||||||||
Repayments
under revolving lines of credit, net
|
(10 | ) | (4,743 | ) | ||||
Repayments
under senior notes payable and other, net
|
(13,137 | ) | (13,087 | ) | ||||
Proceeds
from exercise of options
|
3,420 | 1,100 | ||||||
Income
tax benefit from stock-based compensation deductions in excess of
the
|
||||||||
associated
compensation costs
|
763 | 108 | ||||||
Net
cash used by financing activities
|
(8,964 | ) | (16,622 | ) | ||||
Effect
of exchange rate changes on cash
|
(196 | ) | 10 | |||||
Net
increase (decrease) in cash and cash equivalents
|
(665 | ) | 56,999 | |||||
Cash
and cash equivalents at beginning of year
|
82,742 | 26,038 | ||||||
Cash
and cash equivalents at end of period
|
$ | 82,077 | $ | 83,037 | ||||
Cash
paid during the year for:
|
||||||||
Interest
|
$ | 17,114 | $ | 17,385 | ||||
Income
taxes, net of refunds
|
9,518 | 35,991 |
Three Months Ended June 30,
|
Nine Months Ended June 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Weighted-average
common shares outstanding for basic
|
45,588,778 | 45,100,853 | 45,422,222 | 44,954,582 | ||||||||||||
Dilutive
effect of stock options
|
701,033 | 440,562 | 589,950 | 463,281 | ||||||||||||
Weighted-average
shares assuming dilution
|
46,289,811 | 45,541,415 | 46,012,172 | 45,417,863 |
Nine Months Ended June 30,
|
||||||||
2010
|
2009
|
|||||||
Risk-free
interest rate
|
2.45 | % | 2.49 | % | ||||
Expected
life in years
|
7 | 7 | ||||||
Expected
volatility
|
48.00 | % | 48.00 | % | ||||
Dividend
yield
|
0.00 | % | 0.00 | % |
Weighted-
|
||||||||||||||||
Weighted-
|
Average
|
|||||||||||||||
Average
|
Remaining
|
Aggregate
|
||||||||||||||
Number of
|
Exercise
|
Contractual
|
Intrinsic
|
|||||||||||||
Shares
|
Price
|
Life
|
Value
|
|||||||||||||
(in
Years)
|
(in
Millions)
|
|||||||||||||||
Outstanding
at September 30, 2009
|
3,417,754 | $ | 13.70 | |||||||||||||
Granted
|
862,114 | 14.64 | ||||||||||||||
Exercised
|
(399,495 | ) | 8.56 | |||||||||||||
Canceled
|
(67,697 | ) | 18.10 | |||||||||||||
Outstanding
at June 30, 2010
|
3,812,676 | $ | 14.37 | 7.1 | $ | 17.2 | ||||||||||
Vested
or Expected to Vest at June 30, 2010
|
3,707,710 | $ | 14.40 | 7.1 | $ | 16.8 | ||||||||||
Exercisable
at June 30, 2010
|
2,258,142 | $ | 15.19 | 6.0 | $ | 9.7 |
Three Months Ended June 30,
|
Nine Months Ended June 30,
|
|||||||||||||||
(Dollars in thousands)
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
Net
income
|
$ | 16,291 | $ | 17,187 | $ | 17,662 | $ | 33,386 | ||||||||
Foreign
currency translation adjustment
|
(2,270 | ) | 2,939 | 56 | (3,311 | ) | ||||||||||
Tax
effect
|
794 | (1,027 | ) | (20 | ) | 1,339 | ||||||||||
Foreign
currency translation adjustment, net
|
(1,476 | ) | 1,912 | 36 | (1,972 | ) | ||||||||||
Unrealized
gain (loss) on financial derivatives
|
(2,254 | ) | 1,955 | 3,020 | (3,506 | ) | ||||||||||
Tax
effect
|
891 | (787 | ) | (1,283 | ) | 1,410 | ||||||||||
Unrealized
gain (loss) on financial derivatives, net
|
(1,363 | ) | 1,168 | 1,737 | (2,096 | ) | ||||||||||
Comprehensive
income
|
$ | 13,452 | $ | 20,267 | $ | 19,435 | $ | 29,318 |
•
|
a senior secured credit facility
in the U.S.;
|
•
|
a Canadian senior secured credit
facility; and
|
•
|
an
equipment financing facility.
|
Unrealized Losses
|
|||||||||||||
|
June 30,
|
June 30,
|
September 30,
|
||||||||||
Location on Balance Sheet
|
2010
|
2009
|
2009
|
Fair Value Hierarchy
|
|||||||||
|
(Dollars in thousands)
|
||||||||||||
Accrued
expenses
|
$ | 9,328 | $ | 10,902 | $ | 12,348 |
Level
2
|
|
Three Months Ended June 30,
|
Nine Months Ended June 30,
|
||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
Net
sales
|
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Cost
of products sold
|
78.0 | 76.7 | 77.5 | 76.1 | ||||||||||||
|
||||||||||||||||
Gross
profit
|
22.0 | 23.3 | 22.5 | 23.9 | ||||||||||||
|
||||||||||||||||
Operating
expenses
|
15.6 | 16.0 | 18.7 | 18.1 | ||||||||||||
Income
from operations
|
6.4 | 7.2 | 3.8 | 5.8 | ||||||||||||
Interest
expense
|
(0.8 | ) | (1.2 | ) | (1.3 | ) | (1.4 | ) | ||||||||
|
||||||||||||||||
Income
before income taxes
|
5.6 | 6.0 | 2.5 | 4.4 | ||||||||||||
Income
tax expense
|
(2.2 | ) | (2.3 | ) | (0.9 | ) | (1.8 | ) | ||||||||
|
||||||||||||||||
Net
income
|
3.4 | % | 3.7 | % | 1.6 | % | 2.7 | % |
Existing Markets
|
Acquired Markets
|
Consolidated
|
||||||||||||||||||||||
June 30,
|
June 30,
|
June 30,
|
||||||||||||||||||||||
2010
|
2009
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||||||||
|
(dollars
in thousands)
|
|||||||||||||||||||||||
Net
Sales
|
$ | 463,122 | $ | 463,586 | $ | 11,157 | $ | - | $ | 474,279 | $ | 463,586 | ||||||||||||
Gross
Profit
|
102,399 | 107,825 | 1,889 | - | 104,288 | 107,825 | ||||||||||||||||||
Gross
Margin
|
22.1 | % | 23.3 | % | 16.9 | % | 22.0 | % | 23.3 | % | ||||||||||||||
Operating
Expenses
|
71,852 | 74,239 | 2,204 | - | 74,056 | 74,239 | ||||||||||||||||||
Operating
Expenses as a % of Net Sales
|
15.5 | % | 16.0 | % | 19.8 | % | 15.6 | % | 16.0 | % | ||||||||||||||
Operating
Income (Loss)
|
$ | 30,547 | $ | 33,586 | $ | (315 | ) | $ | - | $ | 30,232 | $ | 33,586 | |||||||||||
Operating
Margin
|
6.6 | % | 7.2 | % | -2.8 | % | 6.4 | % | 7.2 | % |
·
|
continued
general weakness in residential roofing activities in some
regions;
|
·
|
growth
in non-residential roofing activity in most regions;
and
|
·
|
a
resurgence of growth in our complementary product sales in all
regions.
|
For
the three months ended:
|
||||||||||||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||||||||||
2010
|
2009
|
|||||||||||||||||||||||
Sales
|
Mix
|
Sales
|
Mix
|
Change
|
||||||||||||||||||||
(dollars
in thousands)
|
||||||||||||||||||||||||
Residential
roofing products
|
$ | 217,196 | 46.9 | % | $ | 246,391 | 53.1 | % | $ | (29,195 | ) | -11.8 | % | |||||||||||
Non-residential
roofing products
|
173,530 | 37.5 | % | 156,531 | 33.8 | % | 16,999 | 10.9 | ||||||||||||||||
Complementary
building products
|
72,396 | 15.6 | % | 60,664 | 13.1 | % | 11,732 | 19.3 | ||||||||||||||||
Total
existing market sales
|
$ | 463,122 | 100.0 | % | $ | 463,586 | 100.0 | % | $ | (464 | ) | -0.1 | % |
|
June
30,
|
June
30,
|
||||||||||||||||||
2010
|
2009
|
Change
|
||||||||||||||||||
(dollars
in millions)
|
||||||||||||||||||||
Gross
profit
|
$ | 104.3 | $ | 107.8 | $ | (3.5 | ) | -3.2 | % | |||||||||||
Existing
Markets
|
102.4 | 107.8 | (5.4 | ) | -5.0 | % | ||||||||||||||
|
||||||||||||||||||||
Gross
margin
|
22.0 | % | 23.3 | % | -1.3 | % | ||||||||||||||
Existing
Markets
|
22.1 | % | 23.3 | % | -1.1 | % |
June 30,
|
June 30,
|
|||||||||||||||||||
2010
|
2009
|
Change
|
||||||||||||||||||
(dollars in millions)
|
||||||||||||||||||||
Operating
expenses
|
$ | 74.1 | $ | 74.2 | $ | (0.1 | ) | -0.2 | % | |||||||||||
Existing
Markets
|
71.9 | 74.2 | (2.3 | ) | -3.2 | % | ||||||||||||||
Operating
expenses as a % of sales
|
15.6 | % | 16.0 | % | -0.4 | % | ||||||||||||||
Existing
Markets
|
15.5 | % | 16.0 | % | -0.5 | % |
|
·
|
savings of $1.7 million in other
general & administrative expenses from a reduction in the provision
for bad debts of $1.4 million and certain cost saving actions;
and
|
|
·
|
reduced
depreciation and amortization expense of $0.9 million due primarily
to lower amortization of intangible
assets;
|
|
·
|
increased selling expenses of
$0.5 million principally from higher fuel
costs.
|
Existing Markets
|
Acquired Markets
|
Consolidated
|
||||||||||||||||||||||
June 30,
|
June 30,
|
June 30,
|
||||||||||||||||||||||
2010
|
2009
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
Net
Sales
|
$ | 1,114,673 | $ | 1,246,218 | $ | 12,693 | $ | - | $ | 1,127,366 | $ | 1,246,218 | ||||||||||||
Gross
Profit
|
251,653 | 298,101 | 2,040 | - | 253,693 | 298,101 | ||||||||||||||||||
Gross
Margin
|
22.6 | % | 23.9 | % | 16.1 | % | 22.5 | % | 23.9 | % | ||||||||||||||
Operating
Expenses
|
208,226 | 225,382 | 2,710 | - | 210,936 | 225,382 | ||||||||||||||||||
Operating
Expenses as a % of Net Sales
|
18.7 | % | 18.1 | % | 21.4 | % | 18.7 | % | 18.1 | % | ||||||||||||||
Operating
Income (Loss)
|
$ | 43,427 | $ | 72,719 | $ | (670 | ) | $ | - | $ | 42,757 | $ | 72,719 | |||||||||||
Operating
Margin
|
3.9 | % | 5.8 | % | -5.3 | % | 3.8 | % | 5.8 | % |
|
·
|
a
decrease in re-roofing activity in the areas affected by Hurricane Ike in
YTD 2009; and
|
|
·
|
continued
general weakness in residential roofing activities in certain other
regions;
|
|
·
|
recent
growth in non-residential roofing activity in most regions;
and
|
|
·
|
a
recent Company-wide resurgence of growth in our complementary product
sales.
|
For the nine months ended:
|
||||||||||||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||||||||||
2010
|
2009
|
|||||||||||||||||||||||
Sales
|
Mix
|
Sales
|
Mix
|
Change
|
||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
Residential
roofing products
|
$ | 532,456 | 47.8 | % | $ | 653,459 | 52.4 | % | $ | (121,003 | ) | -18.5 | % | |||||||||||
Non-residential
roofing products
|
409,110 | 36.7 | % | 422,422 | 33.9 | % | (13,312 | ) | -3.2 | |||||||||||||||
Complementary
building products
|
173,107 | 15.5 | % | 170,337 | 13.7 | % | 2,770 | 1.6 | ||||||||||||||||
Total
existing market sales
|
$ | 1,114,673 | 100.0 | % | $ | 1,246,218 | 100.0 | % | $ | (131,545 | ) | -10.6 | % |
June 30,
|
June 30,
|
|||||||||||||||||||
2010
|
2009
|
Change
|
||||||||||||||||||
(dollars in millions)
|
||||||||||||||||||||
Gross
profit
|
$ | 253.7 | $ | 298.1 | $ | (44.4 | ) | -14.9 | % | |||||||||||
Existing
Markets
|
251.7 | 298.1 | (46.4 | ) | -15.6 | % | ||||||||||||||
Gross
margin
|
22.5 | % | 23.9 | % | -1.4 | % | ||||||||||||||
Existing
Markets
|
22.6 | % | 23.9 | % | -1.3 | % |
June 30,
|
June 30,
|
|||||||||||||||||||
2010
|
2009
|
Change
|
||||||||||||||||||
(dollars in millions)
|
||||||||||||||||||||
Operating
expenses
|
$ | 210.9 | $ | 225.4 | $ | (14.5 | ) | -6.4 | % | |||||||||||
Existing
Markets
|
$ | 208.2 | $ | 225.4 | $ | (17.2 | ) | -7.6 | % | |||||||||||
Operating
expenses as a % of sales
|
18.7 | % | 18.1 | % | 0.6 | % | ||||||||||||||
Existing
Markets
|
18.7 | % | 18.1 | % | 0.6 | % |
|
·
|
savings of $7.4 million in
payroll and related costs, due to a lower employee headcount, lower
incentive-based pay, and lower related benefits (including a lower
profit-sharing accrual);
|
|
·
|
savings
of $5.9 million in other general & administrative expenses from a
reduction in the provision for bad debts of $4.0 million, reduced claim
costs in our self-insurance programs and certain cost saving
actions;
|
|
·
|
reduced
depreciation and amortization expense of $2.2 million due mostly to
lower amortization of intangible assets;
and
|
|
·
|
savings
of $1.1 million in various selling expenses, such as reduced credit card
fees due to the lower sales volume and certain cost saving actions,
partially offset by higher fuel
costs.
|
Fiscal year 2010
|
Fiscal year 2009
|
|||||||||||||||||||||||||||
Qtr 1
|
Qtr 2
|
Qtr 3
|
Qtr 1
|
Qtr 2
|
Qtr 3
|
Qtr 4
|
||||||||||||||||||||||
(dollars in millions, except per share data)
|
||||||||||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||||||||||
Net
sales
|
$ | 367.7 | $ | 285.4 | $ | 474.3 | $ | 463.3 | $ | 319.3 | $ | 463.6 | $ | 487.7 | ||||||||||||||
Gross
profit
|
88.3 | 61.1 | 104.3 | 116.0 | 74.3 | 107.8 | 113.0 | |||||||||||||||||||||
Income
(loss) from operations
|
18.5 | (6.0 | ) | 30.2 | 37.7 | 1.5 | 33.6 | 36.5 | ||||||||||||||||||||
Net
income (loss)
|
$ | 7.8 | $ | (6.5 | ) | $ | 16.3 | $ | 18.6 | $ | (2.4 | ) | $ | 17.2 | $ | 19.0 | ||||||||||||
Earnings
(loss) per share - basic
|
$ | 0.17 | $ | (0.14 | ) | $ | 0.36 | $ | 0.42 | $ | (0.05 | ) | $ | 0.38 | $ | 0.42 | ||||||||||||
Earnings
(loss) per share - fully diluted
|
$ | 0.17 | $ | (0.14 | ) | $ | 0.35 | $ | 0.41 | $ | (0.05 | ) | $ | 0.38 | $ | 0.42 | ||||||||||||
Quarterly
sales as % of year's sales
|
26.7 | % | 18.4 | % | 26.7 | % | 28.1 | % | ||||||||||||||||||||
Quarterly
gross profit as % of year's gross profit
|
28.2 | % | 18.1 | % | 26.2 | % | 27.5 | % | ||||||||||||||||||||
Quarterly
income from operations as % of
|
||||||||||||||||||||||||||||
year's
income from operations
|
34.5 | % | 1.4 | % | 30.7 | % | 33.4 | % |
|
·
|
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
|
|
•
|
an
equipment financing facility.
|
|
·
|
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, or
|
|
·
|
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%.
|
Exhibit
Number
|
Document Description
|
|
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
|
|
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.
|