Beacon Roofing Supply, Inc. (NASDAQ:BECN) Q1 2019 Earnings Conference Call Transcript

Feb 07, 2019 • 05:00 pm ET


Beacon Roofing Supply, Inc. (NASDAQ:BECN) Q1 2019 Earnings Conference Call Transcript


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Good afternoon, ladies and gentlemen, and welcome to Beacon Roofing Supply's First Quarter 2019 Earnings Conference Call. My name is Latif and I will be your coordinator for today. At this time, all participants are in a listen-only mode. We will be conducting a question-and-answer session towards the end of this conference. At that time, I will give you instructions on how to ask a question. (Operator Instructions) As a reminder, this conference call is being recorded for replay purposes.

This call will contain forward-looking statements, including statements about its plan and objectives and future economic performance. Forward-looking statements are only predictions and are subject to a number of risks and uncertainties, therefore, actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including, but not limited to those set forth in the risk factors section of the company's latest Form 10-K.

These forward-looking statements will fall within the safe harbor provision of the Private Securities Litigation Reform Act of 1995 regarding future events and the future financial performance of the Company, including the Company's financial outlook. The forward-looking statements contained in this call are based on information as of today, February 7, 2019 and except as required by the law, the Company undertakes no obligation to update or reverse any of these forward-looking statements.

Finally, this call will contain references to certain non-GAAP measures, the reconciliation of these non-GAAP measures is set forth in today's press release. The Company has posted a summary, financial slide presentation on the Investors Section of its website under Events and Presentations that will be referenced during management's review of the financial results.

On the call today for Beacon Roofing Supply will be Mr. Paul Isabella, President and CEO; Mr. Eric Swank, Chief Operating Officer; and Mr. Joe Nowicki, Executive Vice President and Chief Financial Officer. I would now like to turn the call over to Mr. Paul Isabella, President and CEO. Please proceed. Mr. Isabella.

Paul M. Isabella

Thank you and good afternoon and welcome to our first quarter 2019 earnings call. We're extremely pleased to report a solid beginning to 2019. First quarter results are above our internal expectations and the Street consensus for both adjusted EPS and EBITDA. Gross margins were fantastic and operating costs were in line with our expectations and consistent with typical seasonality. A great start to fiscal 2019. Our gross margin execution continues to be a positive highlight for Beacon. The price cost relationship was positive during the first quarter, our third consecutive quarter of out performance. An impressive accomplishment, driven by our disciplined approach to pricing as well as showing the value distribution provides within the roofing and building product supply chain.

I'm excited to give you an update on several of our important strategic initiatives. Starting with the Allied integration, we have just recently passed the one-year anniversary of the acquisition and the integration process remains on track and ahead in some areas. The bridge (ph) consolidations have gone very