Supplemental Guarantor Information (Tables)

3 Months Ended

Dec. 31, 2017

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, 2017
	Parent		Guarantor Subsidiaries		Non- Guarantor Subsidiaries1		Eliminations and Other			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	-	$	70,698	$	2,122	$	(8,993	)	$	63,827
Restricted cash		-		-		1,300,000		-			1,300,000
Accounts receivable, net		-		526,068		27,775		(1,140	)		552,703
Inventories, net		-		581,288		22,505		-			603,793
Prepaid expenses and other current assets		17,713		194,007		6,998		-			218,718
Total current assets		17,713		1,372,061		1,359,400		(10,133	)		2,739,041
Intercompany receivable, net		-		730,364		-		(730,364	)		-
Investments in consolidated subsidiaries		3,239,031		-		-		(3,239,031	)		-
Deferred income taxes, net		18,286		-		-		(18,286	)		-
Property and equipment, net		8,271		135,925		10,491		-			154,687
Goodwill		-		1,220,813		31,012		-			1,251,825
Intangibles, net		-		408,123		2,734		-			410,857
Other assets, net		3,341		5,527		-		-			8,868
Total Assets	$	3,286,642	$	3,872,813	$	1,403,637	$	(3,997,814	)	$	4,565,278
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	21,511	$	296,547	$	7,517	$	(10,133	)	$	315,442
Accrued expenses		27,467		232,131		6,451		-			266,049
Current portions of long-term debt		4,500		9,739		-		-			14,239
Total current liabilities		53,478		538,417		13,968		(10,133	)		595,730
Intercompany payable, net		680,761		-		49,603		(730,364	)		-
Borrowings under revolving lines of credit, net		-		-		-		-			-
Long-term debt, net		700,059		-		1,300,000		-			2,000,059
Deferred income taxes, net and other		-		111,066		671		(18,286	)		93,451
Long-term obligations under equipment financing and other, net		-		23,624		70		-			23,694
Total liabilities		1,434,298		673,107		1,364,312		(758,783	)		2,712,934
Total stockholders' equity		1,852,344		3,199,706		39,325		(3,239,031	)		1,852,344
Total Liabilities and Stockholders' Equity	$	3,286,642	$	3,872,813	$	1,403,637	$	(3,997,814	)	$	4,565,278

¹  Includes $1.30 billion in restricted cash and long term debt related to the Allied Acquisition temporarily held in Beacon Escrow Corporation – see Note 8 for further details.

BEACON ROOFING SUPPLY, INC.

Condensed Consolidating Balance Sheets

(Unaudited; In thousands)

	September 30, 2017
	Parent		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations and Other			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	-	$	149,799	$	1,582	$	(13,131	)	$	138,250
Accounts receivable, net		-		663,034		42,633		(1,140	)		704,527
Inventories, net		-		527,226		24,698		-			551,924
Prepaid expenses and other current assets		4,195		198,817		6,126		-			209,138
Total current assets		4,195		1,538,876		75,039		(14,271	)		1,603,839
Intercompany receivable, net		-		655,372		-		(655,372	)		-
Investments in consolidated subsidiaries		3,160,273		-		-		(3,160,273	)		-
Deferred income taxes, net		30,822		-		-		(30,822	)		-
Property and equipment, net		6,610		138,955		10,564		-			156,129
Goodwill		-		1,220,812		31,174		-			1,251,986
Intangibles, net		-		426,187		2,882		-			429,069
Other assets, net		2,912		5,622		-		-			8,534
Total Assets	$	3,204,812	$	3,985,824	$	119,659	$	(3,860,738	)	$	3,449,557
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	27,174	$	468,891	$	21,903	$	(14,271	)	$	503,697
Accrued expenses		51,183		204,173		5,941		-			261,297
Current portions of long-term obligations		4,500		9,641		-		-			14,141
Total current liabilities		82,857		682,705		27,844		(14,271	)		779,135
Intercompany payable, net		618,881		-		36,491		(655,372	)		-
Borrowings under revolving lines of credit, net		-		-		3,205		-			3,205
Long-term debt, net		721,268		-		-		-			721,268
Deferred income taxes, net		-		168,209		996		(30,822	)		138,383
Long-term obligations under equipment financing and other, net		-		25,694		66		-			25,760
Total liabilities		1,423,006		876,608		68,602		(700,465	)		1,667,751
Total stockholders' equity		1,781,806		3,109,216		51,057		(3,160,273	)		1,781,806
Total Liabilities and Stockholders' Equity	$	3,204,812	$	3,985,824	$	119,659	$	(3,860,738	)	$	3,449,557

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 obligations		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		-		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

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, 2017
	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries1			Eliminations and Other			Consolidated
Net sales	$	-		$	1,076,262		$	45,717		$	-		$	1,121,979
Cost of products sold		-			816,436			35,790			-			852,226
Gross profit		-			259,826			9,927			-			269,753
Operating expense		323			210,755			9,579			-			220,657
Intercompany charges (income)		893			(893	)		-			-			-
Income (loss) from operations		(1,216	)		49,964			348			-			49,096
Interest expense, financing costs, and other		10,076			825			11,667			-			22,568
Intercompany interest expense (income)		(5,708	)		5,321			387			-			-
Income (loss) before provision for income taxes		(5,584	)		43,818			(11,706	)		-			26,528
Provision for (benefit from) income taxes		5,521			(46,672	)		83			-			(41,068	)
Income (loss) before equity in net income of subsidiaries		(11,105	)		90,490			(11,789	)		-			67,596
Equity in net income of subsidiaries		78,701			-			-			(78,701	)		-
Net income (loss)	$	67,596		$	90,490		$	(11,789	)	$	(78,701	)	$	67,596
Weighted-average common stock outstanding:
Basic														67,825,430
Diluted														69,244,678
Net income per share:
Basic													$	1.00
Diluted													$	0.98

¹  Includes interest expense from $1.30 billion in long term debt related to the Allied Acquisition temporarily held in Beacon Escrow Corporation – see Note 8 for further details.

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 expenses		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 (loss) 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 (loss)	$	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

Condensed Consolidated Statements of Comprehensive Income

BEACON ROOFING SUPPLY, INC.

Condensed Consolidating Statements of Comprehensive Income

(Unaudited; In thousands)

	Three Months Ended December 31, 2017
	Parent		Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations and Other			Consolidated
Net income (loss)	$	67,596	$	90,490	$	(11,789	)	$	(78,701	)	$	67,596
Other comprehensive income:
Foreign currency translation adjustment		57		-		57			(57	)		57
Total other comprehensive income		57		-		57			(57	)		57
Comprehensive income (loss)	$	67,653	$	90,490	$	(11,732	)	$	(78,758	)	$	67,653

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

Condensed Consolidated Statements of Cash Flows

BEACON ROOFING SUPPLY, INC.

Condensed Consolidating Statements of Cash Flows

(Unaudited; In thousands)

	Three Months Ended December 31, 2017
	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries1			Eliminations and Other			Consolidated
Net cash provided by (used in) operating activities	$	(37,331	)	$	2,338		$	(9,658	)	$	4,195		$	(40,456	)
Investing Activities
Purchases of property and equipment		(2,117	)		(4,874	)		(425	)		-			(7,416	)
Acquisition of businesses		-			-			-			-			-
Proceeds from the sale of assets		-			398			15			-			413
Intercompany activity		61,938			-			-			(61,938	)		-
Net cash provided by (used in) investing activities		59,821			(4,476	)		(410	)		(61,938	)		(7,003	)
Financing Activities
Borrowings under revolving lines of credit		-			878			16,524			-			17,402
Repayments under revolving lines of credit		-			(877	)		(19,671	)		-			(20,548	)
Repayments under term loan		-			-			-			-			-
Repayments under equipment financing facilities and other		-			(1,973	)		5			-			(1,968	)
Borrowings under Senior Notes		-			-			1,300,000			-			1,300,000
Payment of debt issuance costs		(21,917	)		-			-			-			(21,917	)
Payment of issuance costs from secondary offering of common stock		(429	)		-			-			-			(429	)
Proceeds from issuance of common stock related to equity awards		3,781			-			-			-			3,781
Taxes paid related to net share settlement of equity awards		(3,925	)		-			-			-			(3,925	)
Intercompany activity		-			(74,991	)		13,110			61,881			-
Net cash provided by (used in) financing activities		(22,490	)		(76,963	)		1,309,968			61,881			1,272,396
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		-			-			640			-			640
Net increase (decrease) in cash, cash equivalents, and restricted cash		-			(79,101	)		1,300,540			4,138			1,225,577
Cash, cash equivalents, and restricted cash, beginning of period		-			149,799			1,582			(13,131	)		138,250
Cash, cash equivalents, and restricted cash, end of period	$	-		$	70,698		$	1,302,122		$	(8,993	)	$	1,363,827

¹  Includes activity from $1.30 billion in long term debt related to the Allied Acquisition temporarily held in Beacon Escrow Corporation – see Note 8 for further details.

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	)
Repayments under equipment financing facilities and other		-			(2,405	)		-			-			(2,405	)
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, cash equivalents, and restricted cash		-			-			197			-			197
Net increase (decrease) in cash, cash equivalents, and restricted cash		-			46,170			730			(5,015	)		41,885
Cash, cash equivalents, and restricted cash, beginning of period		-			37,447			2,876			(8,937	)		31,386
Cash, cash equivalents, and restricted cash, end of period	$	-		$	83,617		$	3,606		$	(13,952	)	$	73,271