Supplemental Guarantor Information (Tables)

3 Months Ended

Dec. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidated Balance Sheets

BEACON ROOFING SUPPLY, INC.

Condensed Consolidating Balance Sheets

(Unaudited; In thousands)

	December 31, 2016
	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations and Other		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	-	$	83,617	$	3,606	$	(13,952)	$	73,271
Accounts receivable, net		-		467,093		24,162		(1,357)		489,898
Inventories, net		-		503,834		24,875		-		528,709
Prepaid expenses and other current assets		2,651		199,305		7,695		-		209,651
Total current assets		2,651		1,253,849		60,338		(15,309)		1,301,529
Intercompany receivable, net		-		900,545		-		(900,545)		-
Investments in consolidated subsidiaries		2,915,905		-		-		(2,915,905)		-
Deferred income taxes, net		58,561		-		-		(58,561)		-
Property and equipment, net		5,250		132,482		9,608		-		147,340
Goodwill		-		1,168,575		28,975		-		1,197,550
Intangibles, net		-		441,101		3,109		-		444,210
Other assets, net		1,243		268		-		-		1,511
Total Assets	$	2,983,610	$	3,896,820	$	102,030	$	(3,890,320)	$	3,092,140
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	26,354	$	313,647	$	12,145	$	(15,309)	$	336,837
Accrued expenses		20,510		141,266		4,703		-		166,479
Current portions of long-term debt		4,500		10,110		-		-		14,610
Total current liabilities		51,364		465,023		16,848		(15,309)		517,926
Intercompany payable, net		859,886		-		40,659		(900,545)		-
Borrowings under revolving lines of credit, net		-		330,444		2,235		-		332,679
Long-term debt, net		722,516		-		-		-		722,516
Deferred income taxes, net		-		194,555		266		(58,561)		136,260
Long-term obligations under equipment financing and other, net		-		32,869		46		-		32,915
Total liabilities		1,633,766		1,022,891		60,054		(974,415)		1,742,296
Total stockholders' equity		1,349,844		2,873,929		41,976		(2,915,905)		1,349,844
Total Liabilities and Stockholders' Equity	$	2,983,610	$	3,896,820	$	102,030	$	(3,890,320)	$	3,092,140

BEACON ROOFING SUPPLY, INC.

Condensed Consolidating Balance Sheets

(Unaudited; In thousands)

	September 30, 2016
	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations and Other		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	-	$	37,447	$	2,876	$	(8,937)	$	31,386
Accounts receivable, net		-		593,395		34,710		(1,140)		626,965
Inventories, net		-		460,516		20,220		-		480,736
Prepaid expenses and other current assets		3,527		153,681		5,895		-		163,103
Total current assets		3,527		1,245,039		63,701		(10,077)		1,302,190
Intercompany receivable, net		-		878,931		-		(878,931)		-
Investments in consolidated subsidiaries		2,891,677		-		-		(2,891,677)		-
Deferred income taxes, net		59,567		-		-		(59,567)		-
Property and equipment, net		4,626		133,897		10,046		-		148,569
Goodwill		-		1,167,905		29,660		-		1,197,565
Intangibles, net		-		460,696		3,328		-		464,024
Other assets, net		1,242		269		-		-		1,511
Total Assets	$	2,960,639	$	3,886,737	$	106,735	$	(3,840,252)	$	3,113,859
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	26,630	$	329,895	$	14,467	$	(10,077)	$	360,915
Accrued expenses		42,594		114,016		4,503		-		161,113
Current portions of long-term obligations		4,500		10,311		-		-		14,811
Total current liabilities		73,724		454,222		18,970		(10,077)		536,839
Intercompany payable, net		840,159		-		38,772		(878,931)		-
Borrowings under revolving lines of credit, net		-		355,087		4,574		-		359,661
Long-term debt, net		722,929		-		-		-		722,929
Deferred income taxes, net		-		194,556		493		(59,567)		135,482
Long-term obligations under equipment financing and other, net		-		35,074		47		-		35,121
Total liabilities		1,636,812		1,038,939		62,856		(948,575)		1,790,032
Total stockholders' equity		1,323,827		2,847,798		43,879		(2,891,677)		1,323,827
Total Liabilities and Stockholders' Equity	$	2,960,639	$	3,886,737	$	106,735	$	(3,840,252)	$	3,113,859

BEACON ROOFING SUPPLY, INC.

Condensed Consolidating Balance Sheets

(Unaudited; In thousands)

	December 31, 2015
	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations and Other		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	-	$	35,829	$	8,754	$	(12,373)	$	32,210
Accounts receivable, net		-		466,415		23,378		(621)		489,172
Inventories, net		-		447,120		18,943		-		466,063
Prepaid expenses and other current assets		4,232		139,726		6,426		-		150,384
Total current assets		4,232		1,089,090		57,501		(12,994)		1,137,829
Intercompany receivable, net		-		824,837		-		(824,837)		-
Investments in consolidated subsidiaries		2,719,051		-		-		(2,719,051)		-
Deferred income taxes, net		19,032		-		160		(19,192)		-
Property and equipment, net		2,687		134,935		7,985		-		145,607
Goodwill		-		1,134,000		28,111		-		1,162,111
Intangibles, net		-		483,844		3,633		-		487,477
Other assets, net		1,232		38		-		-		1,270
Total Assets	$	2,746,234	$	3,666,744	$	97,390	$	(3,576,074)	$	2,934,294
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	19,364	$	333,072	$	7,763	$	(12,994)	$	347,205
Accrued expenses		1,511		144,611		5,425		-		151,547
Current portions of long-term obligations		4,500		9,787		-		-		14,287
Total current liabilities		25,375		487,470		13,188		(12,994)		513,039
Intercompany payable, net		786,773		-		38,064		(824,837)		-
Borrowings under revolving lines of credit		-		336,000		7,225		-		343,225
Long-term debt, net		722,888		-		-		-		722,888
Deferred income taxes, net		-		119,855		4		(19,192)		100,667
Long-term obligations under equipment financing and other, net		45		43,222		55		-		43,322
Total liabilities		1,535,081		986,547		58,536		(857,023)		1,723,141
Total stockholders' equity		1,211,153		2,680,197		38,854		(2,719,051)		1,211,153
Total Liabilities and Stockholders' Equity	$	2,746,234	$	3,666,744	$	97,390	$	(3,576,074)	$	2,934,294

Condensed Consolidated Statements of Operations

BEACON ROOFING SUPPLY, INC.

Condensed Consolidating Statements of Operations

(Unaudited; In thousands, except share and per share amounts)

	Three Months Ended December 31, 2016
	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations and Other		Consolidated
Net sales	$	-	$	960,235	$	41,949	$	-	$	1,002,184
Cost of products sold		-		718,534		32,583		-		751,117
Gross profit		-		241,701		9,366		-		251,067
Operating expense		8,646		187,073		8,391		-		204,110
Intercompany charges (income)		(11,953)		11,399		554		-		-
Income from operations		3,307		43,229		421		-		46,957
Interest expense, financing costs, and other		15,354		(2,545)		765		-		13,574
Intercompany interest expense (income)		(5,593)		5,593		-		-		-
Income (loss) before provision for income taxes		(6,454)		40,181		(344)		-		33,383
Provision for (benefit from) income taxes		(2,854)		15,902		(95)		-		12,953
Income before equity in net income of subsidiaries		(3,600)		24,279		(249)		-		20,430
Equity in net income of subsidiaries		24,030		-		-		(24,030)		-
Net income	$	20,430	$	24,279	$	(249)	$	(24,030)	$	20,430
Weighted-average common stock outstanding:
Basic										59,943,264
Diluted										60,993,080
Net income per share:
Basic									$	0.34
Diluted									$	0.33

	Three Months Ended December 31, 2015
	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations and Other		Consolidated
Net sales	$	-	$	931,484	$	45,137	$	(141)	$	976,480
Cost of products sold		-		708,383		35,050		(141)		743,292
Gross profit		-		223,101		10,087		-		233,188
Operating expenses		31,172		167,014		8,158		-		206,344
Intercompany charges (income)		(7,847)		7,186		661		-		-
Income (loss) from operations		(23,325)		48,901		1,268		-		26,844
Interest expense, financing costs, and other		9,874		6,238		144		-		16,256
Intercompany interest expense (income)		(3,926)		3,537		389		-		-
Income (loss) before provision for income taxes		(29,273)		39,126		735		-		10,588
Provision for (benefit from) income taxes		(9,732)		13,007		195		-		3,470
Income before equity in net income of subsidiaries		(19,541)		26,119		540		-		7,118
Equity in net income of subsidiaries		26,659		-		-		(26,659)		-
Net income	$	7,118	$	26,119	$	540	$	(26,659)	$	7,118
Weighted-average common stock outstanding:
Basic										58,972,913
Diluted										59,962,033
Net income per share:
Basic									$	0.12
Diluted									$	0.12

Condensed Consolidated Statements of Comprehensive Income

BEACON ROOFING SUPPLY, INC.

Condensed Consolidating Statements of Comprehensive Income

(Unaudited; In thousands)

	Three Months Ended December 31, 2016
	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations and Other		Consolidated
Net income	$	20,430	$	24,279	$	(249)	$	(24,030)	$	20,430
Other comprehensive income (loss):
Foreign currency translation adjustment		(1,652)		-		(1,652)		1,652		(1,652)
Total other comprehensive income (loss)		(1,652)		-		(1,652)		1,652		(1,652)
Comprehensive income (loss)	$	18,778	$	24,279	$	(1,901)	$	(22,378)	$	18,778

	Three Months Ended December 31, 2015
	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations and Other		Consolidated
Net income	$	7,118	$	26,119	$	540	$	(26,659)	$	7,118
Other comprehensive income (loss):
Foreign currency translation adjustment		(2,469)		-		(2,469)		2,469		(2,469)
Total other comprehensive income (loss)		(2,469)		-		(2,469)		2,469		(2,469)
Comprehensive income (loss)	$	4,649	$	26,119	$	(1,929)	$	(24,190)	$	4,649

Condensed Consolidated Statements of Cash Flows

BEACON ROOFING SUPPLY, INC.

Condensed Consolidating Statements of Cash Flows

(Unaudited; In thousands)

	Three Months Ended December 31, 2016
	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations and Other		Consolidated
Net cash provided by (used in) operating activities	$	(18,908)	$	100,962	$	1,084	$	(5,015)	$	78,123
Investing Activities
Purchases of property and equipment		(1,006)		(6,073)		(201)		-		(7,280)
Acquisition of businesses		(1,850)		-		-		-		(1,850)
Proceeds from the sale of assets		-		388		12		-		400
Intercompany activity		19,726		-		-		(19,726)		-
Net cash provided by (used in) investing activities		16,870		(5,685)		(189)		(19,726)		(8,730)
Financing Activities
Borrowings under revolving lines of credit		-		352,807		2,250		-		355,057
Repayments under revolving lines of credit		-		(377,896)		(4,499)		-		(382,395)
Repayments under term loan		(1,125)		-		-		-		(1,125)
Borrowings under equipment financing facilities and other		-		1,010		-		-		1,010
Repayments under equipment financing facilities and other		-		(3,415)		-		-		(3,415)
Proceeds from issuance of common stock		3,460		-		-		-		3,460
Taxes paid related to net share settlement of equity awards		(297)		-		-		-		(297)
Intercompany activity		-		(21,613)		1,887		19,726		-
Net cash provided by (used in) financing activities		2,038		(49,107)		(362)		19,726		(27,705)
Effect of exchange rate changes on cash and cash equivalents		-		-		197		-		197
Net increase (decrease) in cash and cash equivalents		-		46,170		730		(5,015)		41,885
Cash and cash equivalents, beginning of period		-		37,447		2,876		(8,937)		31,386
Cash and cash equivalents, end of period	$	-	$	83,617	$	3,606	$	(13,952)	$	73,271

	Three Months Ended December 31, 2015
	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations and Other		Consolidated
Net cash provided by (used in) operating activities	$	(49,989)	$	98,053	$	4,778	$	(8,167)	$	44,675
Investing Activities
Purchases of property and equipment		(566)		(1,578)		(9)		-		(2,153)
Acquisition of businesses		(941,156)		-		-		-		(941,156)
Proceeds from the sale of assets		-		229		-		-		229
Intercompany activity		436,866		-		-		(436,866)		-
Net cash used in investing activities		(504,856)		(1,349)		(9)		(436,866)		(943,080)
Financing Activities
Borrowings under revolving lines of credit		-		878,947		11,181		-		890,128
Repayments under revolving lines of credit		-		(534,470)		(14,908)		-		(549,378)
Borrowings under term loan		450,000		-		-		-		450,000
Repayments under term loan		(186,750)		-		-		-		(186,750)
Borrowings under Senior Notes		300,000		-		-		-		300,000
Repayments under equipment financing facilities and other		-		(1,367)		-		-		(1,367)
Payment of deferred financing costs		(18,890)		(8,923)		-		-		(27,813)
Proceeds from issuance of common stock		8,984		-		-		-		8,984
Excess tax benefit from stock-based compensation		1,501		-		-		-		1,501
Intercompany activity		-		(437,878)		1,012		436,866		-
Net cash provided by (used in) financing activities		554,845		(103,691)		(2,715)		436,866		885,305
Effect of exchange rate changes on cash and cash equivalents		-		-		(351)		-		(351)
Net increase (decrease) in cash and cash equivalents		-		(6,987)		1,703		(8,167)		(13,451)
Cash and cash equivalents, beginning of period		-		42,816		7,051		(4,206)		45,661
Cash and cash equivalents, end of period	$	-	$	35,829	$	8,754	$	(12,373)	$	32,210