Companies‎ > ‎US Research‎ > ‎

Beacon Roofing Supply (Nasdaq: BECN) | Company Profile, History, Competitors

 

Beacon Roofing Supply (NASDAQ: BECN) is a distributor of residential and non-residential roofing materials. As of 2017, BECN has 385 branches in the United States and Canada. It was founded in 1928 and headquartered in Herndon, VA.

Beacon Roofing Supply provides a distribution solution to contractors, homebuilders, retailers and building materials suppliers. They purchase products from large manufacturers in bulk and distribute it to customers within local markets.

Store Concept

Each branch stocks between 2,000 - 11,000 SKUs and service on average 50,000 customers. Beacon acts as an intermediary, purchasing products from a large number of manufacturing and distributing it to contractors, homebuilders, retailers and building materials suppliers.

Beacon has a national footprint but there is a higher concentration of stores in states with more construction activity.

Business Overview

Beacon operates in three main segments:
  • Residential Roofing Products (54% of 2017 Revenues): Sells asphalt shingles and other roofing materials. This roofing market is primarily driven by re-roofing, new construction and storms.
  • Non-Residential Roofing Products (29% of 2017 Revenues): Sells single-ply roofing systems like EPBM (ethylene propylene diene monomer), TPO (thermoplastic olefin) and PVC (polyvinyl chloride). This market is primarily driven by reroofing and storms.
  • Complementary Building Products (17% of 2017 Revenues): Sells sidings, windows and doors. This segment is driven by new residential construction.

Suppliers and Distribution

Beacon sources roofing materials from a variety of suppliers including Building Products of Canada, Carlisle, CertainTeed, Firestone, GAF, Johns Manville Roofing, Owens-Corning, PlyGem and Tamko.

For asphalt shingles, the market has four main players: GAF, Owens-Corning, CertainTeed and Tamko.

For non-residential construction roofing, the market has two main suppliers; Carlisle and Firestone.

History

The company was founded in 1928 in Charleston, MA as Beacon Sales Company. In 1984, Andrew Logie acquired a majority stake in the company and became CEO.

In 1997, the private equity firm Code, Hennessy & Simmons Capital acquired a majority stake and rebranded it as Beacon Roofing Supply. In 2004, the company went public.

In 2018, the company acquired Allied Building Products.

Competitors

Beacon's main roofing distribution competitor is ABC Supply.

Management

Paul M. Isabella (CEO): Paul Isabella serves as CEO since 2011. Prior, he served as COO at the company. He had also worked as VP of Cooper Industries, VP at Stanley Works and VP at General Electric.

Joseph M. Nowicki (CFO): Joseph Nowicki serves as CFO since 2013. prior, he was CFO Spartan Motors, VP Finance at Herman Miller. He has also worked at IBM and General Motors.

Financials

 $ USD in millions    2013    2014 2015 2016 2017
 Revenues $2,241 
$2,327 
$2,515 
$4,127 
$4,377 
 Gross Profit $531 
$528 
 $595 
 $1,013 
 $1,076 
 Operating Profit $130 
$99 
 $117 
 $205 
 $216 
 Net Income$73 
$54 
$62 
 $90 
 $101 
 EPS$1.47 
$1.08 
$1.24 
$1.49 
$1.64 

Beacon Roofing Supply
 
  Ticker     NASDAQ: BECN
  Industry Homebuilding
  Founded 1928
  Headquarters Herndon, VA
  Locations 385
  Revenues
$4.4bn (2017)
  Employees 5,406 (2017)
  Website beaconroofing
supply.com