About Beacon Roofing Supply

Beacon Roofing Supply, Inc. (Beacon) operates as a distributor of roofing materials and complementary building products, such as siding and waterproofing, in North America. The company serves the building industry and operates branches throughout all 50 states in the U.S. and six provinces in Canada. The company offers an extensive range of high-quality professional grade exterior products comprising over 130,000 SKUs, and the company serves nearly 100,000 residential and non-residential customers who trust the company to help them save time, work more efficiently, and enhance their businesses. The company’s complementary building products demand comes from both the residential and non-residential sectors. These products allow the company to be the supplier of choice to exteriors-focused customers and possess relatively greater end-market exposure to new construction compared to roofing products. In addition to its domestic operations, the company operates in six provinces across Canada. Customers The company’s customer base consists of professional contractors, home builders, building owners, lumberyards, and retailers across the United States and Canada who depend on reliable local access to building products for residential and non-residential projects. Its customers vary in size, ranging from relatively small contractors to large contractors and builders that operate on a national scale. Strategic Initiatives In 2022, the company announced its Ambition 2025 Value Creation Framework (Ambition 2025) to drive growth, enhance customer service, and expand its footprint in key markets, which included new Ambition 2025 financial targets and the Repurchase Program, as well as strategic deployment of capital on acquisitions and greenfields. Growth The company is pursuing organic growth via new greenfield locations to expand service to customers in key markets. To achieve organic growth, the company is investing in sales models to drive productive customer engagement and add value to its customers. Further development and facilitation of relationships between its local sales teams and contractors give it considerable opportunities to differentiate the company’s service offerings. The company focuses on additional training for its sales organization, helping its sales team build on existing customer relationships, leading to higher productivity. In addition, the company supplements the sales team’s outreach efforts with branch personnel, digital platform engagement, centralized sales, marketing and pricing support, and call center support. The company’s customer relationship management software elevates customer contact efficiency and provides coaching metrics to its sales team, while additional tools and analytics are employed to enhance the sales team’s pricing proficiency. Digital The company provides the most complete digital offering in building products distribution and continue to expand its capabilities. Beacon PRO+ is the company’s proprietary digital account management suite, which allows customers to manage their business with it online, and Beacon 3D+ is the company’s roofing estimating tool for its residential customers. The company’s digital platform enables customers to order online from its catalog of over 130,000 products, have 24/7 access to view real-time pricing, process and review the status of orders, track deliveries, monitor local storm activity and vendor promotions, request and approve quotes, and pay their bills online. The company is enhancing Beacon PRO+ through partner integrations to help its customers improve estimating, project management, and the homeowner experience. Beacon PRO+ provides the company with additional opportunities to engage with its customers and helps them save time, work more efficiently, and grow their businesses. By expanding and promoting its digital solutions, the company is meeting its customers’ changing needs and improving its returns through e-commerce. The company is also building strong relationships with suppliers who rely on it to position their products advantageously in the market. Beacon OTC Network The company’s Beacon On Time & Complete (OTC) Network is an operating model in which networked branches share inventory, fleet, equipment, employees, and systems for an optimal customer delivery experience. Customers benefit from improved service levels, delivery times, and product availability, while the company gains efficiencies in staffing, fleet, and inventory. As of December 31, 2023, the company’s Beacon OTC Networks were operational in 59 markets. Products and Services The company’s product lines are designed to meet the requirements of its residential, non-residential, and complementary building products customers. The company carries one of the most extensive arrays of high-quality branded products in the industry, including its private label brand, TRI-BUILT. The company’s TRI-BUILT products offer a high-quality and superior-value alternative for its customers while delivering higher margins and brand exclusivity in the marketplace. The company fulfills the vast majority of its warehouse orders with inventory on hand because of the breadth and depth of the inventories at its branches. In the residential market, asphalt shingles comprise the largest share of the products it sells. In the non-residential market, single-ply membranes, insulation, and accessories comprise the largest share of its product offering. In the area of complementary building products, waterproofing, siding, plywood/OSB, and windows and doors comprise the largest share of the products in the company’s portfolio. During the year ended December 31, 2023, the company’s distribution infrastructure served more than 1.4 million customer deliveries. The company maintained a fleet of 1,667 straight trucks, 742 tractors, and 985 trailers. Nearly all of the company’s delivery vehicles are equipped with specialized equipment, including 2,380 truck-mounted forklifts, cranes, hydraulic booms, and conveyors, which are necessary to deliver products to job sites in an efficient and safe manner and in accordance with its customers’ requirements. Beyond product delivery, the company provides superior value-added services to its customers. The company employs a knowledgeable sales force that possesses an in-depth understanding of roofing and the building products it provides. The company’s sales force provides guidance to its customers throughout the lifecycles of their projects, including training, technical support, and access to Beacon PRO+ and 3D+, where customers can find leads, track storms, order online, track deliveries, view order history, participate in promotions, and pay invoices. Supply Chain The company’s largest suppliers include companies, such as Owens Corning, GAF, Carlisle Construction Materials, Holcim Elevate, CertainTeed Roofing and Siding, IKO Manufacturing, TAMKO Building Products, Westlake Royal Building Products, James Hardie Building Products, Dow, and Sika USA. Seasonality In general, the company’s net sales and net income are highest in quarters ending June 30, September 30, and December 31, which encompass the peak months of construction and re-roofing. Conversely, the company has historically experienced low net income levels or net losses in quarters ending March 31, when winter construction cycles and cold weather patterns have an adverse impact on the company’s customers’ ability to conduct their business. The company generally experiences an increase in inventory and peak cash usage in the quarters ending March 31 and June 30, driven primarily by increased purchasing that is necessary to meet the rise in demand for the company’s products during the warmer months. Accounts receivable, accounts payable, and cash collections are generally at their highest during the quarters ending June 30 and September 30, when sales are typically at their peak. Government Regulations The company is subject to regulation by various federal, state, provincial, and local agencies. These agencies include the Environmental Protection Agency, Department of Transportation, Occupational Safety and Health Administration, Department of Labor, and Equal Employment Opportunity Commission. History Beacon Roofing Supply, Inc. was founded in 1928. The company was incorporated in Delaware in 1997.