10-Q 1 becn-20220630.htm 10-Q becn-20220630
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from _________ to __________
Commission File Number 000-50924
BEACON ROOFING SUPPLY, INC.
(Exact name of registrant as specified in its charter)
Delaware36-4173371
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
505 Huntmar Park Drive, Suite 300, Herndon, VA 20170
(Address of principal executive offices) (Zip Code)
(571) 323-3939
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $0.01 par valueBECNNASDAQ Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:
Large accelerated filerAccelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company  
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
As of July 31, 2022, 65,002,001 shares of common stock, par value $0.01 per share, of the registrant were outstanding.



BEACON ROOFING SUPPLY, INC.
FORM 10-Q
For the Quarter Ended June 30, 2022
TABLE OF CONTENTS
2


PART I. FINANCIAL INFORMATION (UNAUDITED)
Item 1. Condensed Consolidated Financial Statements
BEACON ROOFING SUPPLY, INC.
Condensed Consolidated Balance Sheets
(Unaudited; in millions, except per share amounts)
June 30,December 31,June 30,
202220212021
Assets
Current assets:
Cash and cash equivalents$54.6 $225.8 $188.9 
Accounts receivable, less allowance of $18.2, $16.1 and $19.7 as of June 30, 2022, December 31, 2021 and June 30, 2021, respectively
1,321.7 855.2 965.1 
Inventories, net1,548.7 1,161.7 1,170.7 
Prepaid expenses and other current assets422.6 367.2 354.8 
Total current assets3,347.6 2,609.9 2,679.5 
Property and equipment, net289.1 256.3 223.8 
Goodwill1,785.2 1,777.4 1,761.7 
Intangibles, net383.4 421.0 439.8 
Operating lease right-of-use assets, net418.0 413.9 395.8 
Deferred income taxes, net58.0 61.9 89.2 
Other assets, net1.4 8.9 9.5 
Total assets$6,282.7 $5,549.3 $5,599.3 
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable$1,168.9 $794.2 $877.7 
Accrued expenses476.5 472.1 641.4 
Current portion of operating lease liabilities89.7 89.0 87.8 
Current portion of finance lease liabilities10.9 6.4 3.6 
Current portion of long-term debt/obligations10.0 10.0 10.4 
Total current liabilities1,756.0 1,371.7 1,620.9 
Borrowings under revolving lines of credit, net461.3   
Long-term debt, net1,609.6 1,612.9 1,616.1 
Deferred income taxes, net0.6 0.8  
Operating lease liabilities334.4 326.3 308.7 
Finance lease liabilities45.3 26.0 16.0 
Total liabilities4,207.2 3,337.7 3,561.7 
Commitments and contingencies (Note 12)
Convertible Preferred Stock (voting); $0.01 par value; aggregate liquidation preference $400.0; 0.4 shares authorized, issued and outstanding as of June 30, 2022, December 31, 2021 and June 30, 2021 (Note 6)
399.2 399.2 399.2 
Stockholders' equity:
Common stock (voting); $0.01 par value; 100.0 shares authorized; 65.0, 70.4 and 70.0 shares issued and outstanding as of June 30, 2022, December 31, 2021 and June 30, 2021, respectively
0.6 0.7 0.7 
Undesignated preferred stock; 5.0 shares authorized, none issued or outstanding
   
Additional paid-in capital1,123.5 1,148.6 1,138.5 
Retained earnings562.8 682.5 521.7 
Accumulated other comprehensive income (loss)(10.6)(19.4)(22.5)
Total stockholders' equity1,676.3 1,812.4 1,638.4 
Total liabilities and stockholders' equity$6,282.7 $5,549.3 $5,599.3 
See accompanying Notes to Condensed Consolidated Financial Statements
3


BEACON ROOFING SUPPLY, INC.
Condensed Consolidated Statements of Operations
(Unaudited; in millions, except per share amounts)

Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Net sales$2,358.2 $1,872.1 $4,045.1 $3,190.1 
Cost of products sold1,708.0 1,354.7 2,955.4 2,339.9 
Gross profit650.2 517.4 1,089.7 850.2 
Operating expense:
Selling, general and administrative355.4 296.3 664.7 564.1 
Depreciation18.9 15.1 36.4 29.7 
Amortization21.5 25.2 42.9 52.8 
Total operating expense395.8 336.6 744.0 646.6 
Income (loss) from operations254.4 180.8 345.7 203.6 
Interest expense, financing costs, and other18.9 23.2 35.5 51.8 
Loss on debt extinguishment 50.7  60.2 
Income (loss) from continuing operations before income taxes235.5 106.9 310.2 91.6 
Provision for (benefit from) income taxes61.0 27.1 79.9 22.3 
Net income (loss) from continuing operations174.5 79.8 230.3 69.3 
Net income (loss) from discontinued operations1
 (3.3) 0.9 
Net income (loss)174.5 76.5 230.3 70.2 
Dividends on Preferred Stock6.0 6.0 12.0 12.0 
Net income (loss) attributable to common stockholders$168.5 $70.5 $218.3 $58.2 
Weighted-average common stock outstanding2:
Basic68.1 69.9 69.1 69.8 
Diluted69.5 71.3 70.4 71.0 
Net income (loss) per share2:
Basic - Continuing operations$2.17 $0.93 $2.77 $0.72 
Basic - Discontinued operations (0.04) 0.01 
Basic net income (loss) per share$2.17 $0.89 $2.77 $0.73 
Diluted - Continuing operations$2.12 $0.91 $2.72 $0.71 
Diluted - Discontinued operations (0.04) 0.01 
Diluted net income (loss) per share$2.12 $0.87 $2.72 $0.72 
1.See Note 4 for additional information.
2.See Note 6 for detailed calculations and further discussion.


See accompanying Notes to Condensed Consolidated Financial Statements
4


BEACON ROOFING SUPPLY, INC.
Condensed Consolidated Statements of Comprehensive Income
(Unaudited; in millions)

 Three Months Ended June 30,Six Months Ended June 30,
 2022202120222021
Net income (loss)$174.5 $76.5 $230.3 $70.2 
Other comprehensive income (loss):
Foreign currency translation adjustment(3.1)1.2 (1.6)2.2 
Unrealized gain (loss) due to change in fair value of derivatives, net of tax2.6 1.1 10.4 4.5 
Total other comprehensive income (loss)(0.5)2.3 8.8 6.7 
Comprehensive income (loss)$174.0 $78.8 $239.1 $76.9 
See accompanying Notes to Condensed Consolidated Financial Statements
5


BEACON ROOFING SUPPLY, INC.
Condensed Consolidated Statements of Stockholders’ Equity
(Unaudited; in millions)

Common StockRetained
SharesAmount
APIC1
Earnings
AOCI2
Total
Three Months Ended June 30, 2022
Balance as of March 31, 202268.7$0.7 $1,135.9 $619.3 $(10.1)$1,745.8 
Repurchase and retirement of common stock, net3
(3.9)(0.1)— (225.0)— (225.1)
Net change in equity forward contracts3
— (25.0)— — (25.0)
Issuance of common stock, net of shares withheld for taxes0.2— 4.6 — — 4.6 
Stock-based compensation— 8.0 — — 8.0 
Other comprehensive income (loss)— — — (0.5)(0.5)
Net income (loss)— — 174.5 — 174.5 
Dividends on Preferred Stock— — (6.0)— (6.0)
Balance as of June 30, 202265.0$0.6 $1,123.5 $562.8 $(10.6)$1,676.3 
Three Months Ended June 30, 2021
Balance as of March 31, 202169.8$0.7 $1,126.2 $451.2 $(24.8)$1,553.3 
Issuance of common stock, net of shares withheld for taxes0.2— 6.9 — — 6.9 
Stock-based compensation— 5.4 — — 5.4 
Other comprehensive income (loss)— — — 2.3 2.3 
Net income (loss)— — 76.5 — 76.5 
Dividends on Preferred Stock— — (6.0)— (6.0)
Balance as of June 30, 202170.0$0.7 $1,138.5 $521.7 $(22.5)$1,638.4 
Six Months Ended June 30, 2022
Balance as of December 31, 202170.4$0.7 $1,148.6 $682.5 $(19.4)$1,812.4 
Repurchase and retirement of common stock, net3
(5.8)(0.1)— (338.0)— (338.1)
Net change in equity forward contracts3
— (50.0)— — (50.0)
Issuance of common stock, net of shares withheld for taxes0.4— 11.8 — — 11.8 
Stock-based compensation— 13.1 — — 13.1 
Other comprehensive income (loss)— — — 8.8 8.8 
Net income (loss)— — 230.3 — 230.3 
Dividends on Preferred Stock— — (12.0)— (12.0)
Balance as of June 30, 202265.0$0.6 $1,123.5 $562.8 $(10.6)$1,676.3 
Six Months Ended June 30, 2021
Balance as of December 31, 202069.4$0.7 $1,109.8 $463.5 $(29.2)$1,544.8 
Issuance of common stock, net of shares withheld for taxes0.6— 16.0 — — 16.0 
Stock-based compensation— 12.7 — — 12.7 
Other comprehensive income (loss)— — — 6.7 6.7 
Net income (loss)— — 70.2 — 70.2 
Dividends on Preferred Stock— — (12.0)— (12.0)
Balance as of June 30, 202170.0$0.7 $1,138.5 $521.7 $(22.5)$1,638.4 
1.Additional Paid-in Capital (“APIC”).
2.Accumulated Other Comprehensive Income (Loss) ("AOCI").
3.See Note 8 for additional information.
See accompanying Notes to Condensed Consolidated Financial Statements
6


BEACON ROOFING SUPPLY, INC.
Condensed Consolidated Statements of Cash Flows1
(Unaudited; in millions)
 Six Months Ended June 30,
 20222021
Operating Activities
Net income (loss)$230.3 $70.2 
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization79.3 82.6 
Stock-based compensation13.1 12.7 
Certain interest expense and other financing costs2.6 4.6 
Loss on debt extinguishment 60.2 
Gain on sale of fixed assets and other(2.9)(2.1)
Deferred income taxes0.7 (78.0)
Loss on sale of business 6.6 
Changes in operating assets and liabilities:
Accounts receivable(466.1)(216.6)
Inventories(385.0)(220.8)
Prepaid expenses and other current assets(47.1)(19.3)
Accounts payable and accrued expenses383.7 318.8 
Other assets and liabilities4.4 (0.2)
Net cash provided by (used in) operating activities(187.0)18.7 
Investing Activities
Purchases of property and equipment(39.8)(29.4)
Acquisition of business, net(16.7) 
Proceeds from sale of business 837.4 
Proceeds from the sale of assets3.0 2.4 
Net cash provided by (used in) investing activities(53.5)810.4 
Financing Activities
Borrowings under revolving lines of credit1,365.9 250.0 
Payments under revolving lines of credit(898.1)(407.0)
Borrowings under term loan 1,000.0 
Payments under term loan(5.0)(943.4)
Borrowings under senior notes 350.0 
Payment under senior notes (1,300.0)
Payment of debt issuance costs (20.3)
Payment of call premium (31.7)
Payments under equipment financing facilities and finance leases(4.9)(3.2)
Repurchase and retirement of common stock, net(338.1) 
Advance payment for equity forward contract(50.0) 
Payment of dividends on Preferred Stock(12.0)(12.0)
Proceeds from issuance of common stock related to equity awards12.2 17.7 
Payment of taxes related to net share settlement of equity awards(0.4)(1.7)
Net cash provided by (used in) financing activities69.6 (1,101.6)
Effect of exchange rate changes on cash and cash equivalents(0.3) 
Net increase (decrease) in cash and cash equivalents(171.2)(272.5)
Cash and cash equivalents, beginning of period225.8 461.4 
Cash and cash equivalents, end of period$54.6 $188.9 
Supplemental Cash Flow Information
Operating cash flows provided by (used in) discontinued operations$ $(21.8)
Cash paid during the period for:
Interest$37.1 $58.6 
Income taxes, net of refunds2
$57.4 $52.6 
1.Unless otherwise noted, amounts include both continuing and discontinued operations.
2.Six months ended June 30, 2022 amount includes $18.6 million related to the transition period from October 1, 2021 to December 31, 2021. Six months ended June 30, 2021 amount includes $46.6 million related to the Interior Products divestiture.
See accompanying Notes to Condensed Consolidated Financial Statements
7


BEACON ROOFING SUPPLY, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited; in millions, except per share amounts or otherwise indicated)
1. Company Overview
Beacon Roofing Supply, Inc. (“Beacon” or the “Company”) was incorporated in the state of Delaware on August 22, 1997 and is the largest publicly traded distributor of residential and non-residential roofing materials and complementary building products in the United States and Canada.
On February 10, 2021, the Company completed the sale of its interior products and insulation businesses (“Interior Products”) to Foundation Building Materials Holding Company LLC (“FBM”), pursuant to that certain Equity Purchase Agreement, dated as of December 20, 2020 (the “Purchase Agreement”), by and between the Company and ASP Sailor Acquisition Corp. (“ASP”), for approximately $850 million in cash (subject to a working capital and certain other adjustments as set forth in the Purchase Agreement). On January 29, 2021, ASP assigned the Purchase Agreement to FBM. Unless otherwise noted, the Company has reflected Interior Products as discontinued operations for the three and six months ended June 30, 2021. For additional information, see Notes 2 and 4.
The Company operates its business primarily under the trade name "Beacon Building Products" and services customers in all 50 states throughout the U.S. and 6 provinces in Canada. The Company’s material subsidiaries are Beacon Sales Acquisition, Inc. and Beacon Roofing Supply Canada Company.
2. Summary of Significant Accounting Policies
Basis of Presentation
The Company prepared the condensed consolidated financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the requirements of the Securities and Exchange Commission (“SEC”). As permitted under those rules, certain footnotes or other financial information have been condensed or omitted. Additionally, the Company has reflected Interior Products as discontinued operations for the three and six months ended June 30, 2021. Unless otherwise noted, amounts and disclosures throughout these Notes to Condensed Consolidated Financial Statements relate to the Company's continuing operations. Certain prior period amounts have been reclassified to conform to current period presentation.
The balance sheet as of June 30, 2021 has been presented for a better understanding of the impact of seasonal fluctuations on the Company’s financial condition. The three-month periods ended June 30, 2022 and 2021 each had 64 business days. The six-month periods ended June 30, 2022 and 2021 each had 127 business days.
On August 11, 2021, the Company’s Board of Directors approved a change in its fiscal year end from September 30 to December 31. The Company’s 2022 fiscal year began on January 1, 2022 and will end on December 31, 2022. This change better aligns the Company’s financial reporting calendar with many of its industry peers and provides internal benefits by shifting the timing of the budgeting, physical inventory, and performance review cycles away from the Company’s busiest time of year.
In management’s opinion, the condensed consolidated financial statements include all normal and recurring adjustments that are considered necessary for the fair presentation of the Company’s financial position and operating results. The results for the three and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the twelve months ending December 31, 2022.
These unaudited condensed consolidated financial statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto contained in the Company’s most recent Annual Report on Form 10-K for the fiscal year ended September 30, 2021 as well as the unaudited Condensed Consolidated Financial Statements and Notes thereto contained in the Company’s Transition Report on Form 10-Q for the period from October 1, 2021 to December 31, 2021.
Use of Estimates
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes. Significant items subject to such estimates include accounts receivable, vendor incentives, inventories, purchase price allocations, goodwill and intangibles, and income taxes. Assumptions made in the development of these estimates contemplate the impact of the novel coronavirus (“COVID‑19”) on the economy and the Company’s anticipated results. Actual amounts could differ materially from these estimates.
8


Business Combinations
The Company records acquisitions resulting in the consolidation of a business using the acquisition method of accounting. Under this method, the Company records the assets acquired, including intangible assets that can be identified and named, and liabilities assumed based on their estimated fair values at the date of acquisition. The Company uses an income approach to determine the fair value of acquired intangible assets, specifically the multi-period excess earnings method for customer relationships and the relief from royalty method for trade names. Various Level 3 fair value assumptions are used in the determination of these estimated fair values, including items such as sales growth rates, cost synergies, customer attrition rates, discount rates, and other prospective financial information. The purchase price in excess of the fair value of the assets acquired and liabilities assumed is recorded as goodwill. Estimates associated with the accounting for acquisitions may change as additional information becomes available regarding the assets acquired and liabilities assumed. Transaction costs associated with acquisitions are expensed as incurred and are included as a component of selling, general and administrative expense within the condensed consolidated statements of operations.
Recent Accounting Pronouncements—Not Yet Adopted
In October 2021, the Financial Accounting Standards Board (the “FASB”) issued ASU 2021-08, “Business Combinations – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” The guidance is intended to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice. The guidance requires an acquirer to recognize and measure contract assets and liabilities acquired in a business combination in accordance with Topic 606 as if the acquirer had originated the contracts, as opposed to recognizing and measuring such contract assets and liabilities at fair value on the acquisition date. The standard will be effective for business combinations that occur after January 1, 2023. Early adoption is permitted. The guidance will be applied prospectively to acquisitions occurring on or after the effective date. The Company will continue to evaluate the impact of this guidance, which would depend on the contract assets and liabilities assumed in any future business combinations.
In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The guidance provides optional practical expedients to ease the potential burden in accounting for contract modifications and hedge accounting related to reference rate reform. In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848), Scope,” to clarify the scope of the guidance and reduce potential diversity in practice. The standard is effective as of March 12, 2020 through December 31, 2022. However, the standard is not applicable to contract modifications made, and hedging relationships entered into or evaluated after, December 31, 2022. The Company will evaluate and disclose the impact of this guidance in the period of election, as well as the nature and reason for doing so.
3. Acquisitions
The following table presents the Company’s acquisitions since the start of 2021. The Company acquired 100% of the equity interests in each case. The Company has not provided pro forma results of operations for the transactions below, as the transactions individually and in the aggregate are not material to the Company. The results of operations for these transactions are included in the Company’s condensed consolidated statements of operations from the date of the acquisition (dollars in millions):
Date AcquiredCompany NameRegionBranches
Goodwill Recognized1
Intangible Assets Acquired1
June 1, 2022Complete Supply, Inc.Illinois1$9.1 $4.6 
April 29, 2022Wichita Falls Builders Wholesale, Inc.Texas1$0.2 $0.5 
January 1, 2022Crabtree Siding and SupplyTennessee1$0.1 $0.1 
November 1, 2021Midway Sales & Distributing, Inc.Kansas, Missouri, Nebraska10$28.8 $38.5 
1.Based on provisional estimates of the fair value of assets acquired and liabilities assumed as of June 30, 2022.
Prior to the acquisitions, the acquired companies listed above produced aggregate annual sales of approximately $145 million. The total transaction costs incurred by the Company for these acquisitions for the three and six months ended June 30, 2022 were $0.7 million and $1.2 million, respectively. Of the $38.2 million of goodwill recognized for these acquisitions, $38.0 million is deductible for tax purposes.
Lowry’s
In connection with the May 1, 2017 acquisition of Lowry’s Inc., the Company recorded an indemnity holdback liability, which was remeasured to fair value at each reporting period until the contingency was resolved. During the first quarter of 2022, the contingency was resolved and the Company released the indemnity holdback liability, resulting in a gain of $0.9 million, which is included as a component of and reduction to selling, general and administrative expense within the condensed consolidated statements of operations for the six months ended June 30, 2022.
9


4. Divestitures
Solar Products
On December 1, 2021, the Company completed the divestiture of its solar products business ("Solar Products") in order to focus on the Company’s core exteriors business. The Company recorded a loss on sale of $22.3 million for the three months ended December 31, 2021. The results of operations from Solar Products were included within income from continuing operations for the three and six months ended June 30, 2021 and were not material to the Company’s overall results.
Interior Products
On February 10, 2021, the Company completed the sale of Interior Products to FBM pursuant to the Purchase Agreement for approximately $850 million in cash (subject to a working capital and certain other adjustments as set forth in the Purchase Agreement). The final adjusted purchase price for Interior Products was $842.7 million. During the three months ended December 31, 2021, the company received $6.6 million of final purchase consideration from FBM.
The Company completed this divestiture of net assets previously acquired in 2018 as part of the Allied Acquisition (as defined in Note 6) to enhance leadership focus, reduce net leverage, strengthen its balance sheet, and provide the financial flexibility to pursue strategic growth initiatives in its core exteriors business.
The following table reconciles major line items constituting pretax income (loss) from discontinued operations to net income (loss) from discontinued operations as presented in the condensed consolidated statements of operations (in millions):
Three Months EndedSix Months Ended
June 30, 2021June 30, 2021
Net sales$ $109.1 
Cost of products sold (80.3)
Selling, general and administrative(0.2)(21.2)
Depreciation and amortization (0.2)
Other income (loss)(0.1)(0.1)
Loss on sale(4.2)(6.6)
Pretax income (loss) from discontinued operations(4.5)0.7 
Provision for (benefit from) income taxes(1.2)(0.2)
Net income (loss) from discontinued operations$(3.3)$0.9 
There were no results from discontinued operations in the three or six months ended June 30, 2022. There were no assets or liabilities held for sale as of June 30, 2022, December 31, 2021 or June 30, 2021.
10


5. Net Sales
The following table presents the Company’s net sales by product line and geography (in millions):
U.S.CanadaTotal
Three Months Ended June 30, 2022
Residential roofing products$1,168.6 $27.5 $1,196.1 
Non-residential roofing products634.8 47.8 682.6 
Complementary building products476.1 3.4 479.5 
Total net sales$2,279.5 $78.7 $2,358.2 
Three Months Ended June 30, 2021
Residential roofing products$955.9 $25.7 $981.6 
Non-residential roofing products446.4 40.3 486.7 
Complementary building products400.5 3.3 403.8 
Total net sales$1,802.8 $69.3 $1,872.1 
Six Months Ended June 30, 2022
Residential roofing products$2,004.4 $38.2 $2,042.6 
Non-residential roofing products1,092.2 78.1 1,170.3 
Complementary building products826.9 5.3 832.2 
Total net sales$3,923.5 $121.6 $4,045.1 
Six Months Ended June 30, 2021
Residential roofing products$1,642.1 $34.6 $1,676.7 
Non-residential roofing products752.4 64.1 816.5 
Complementary building products692.0 4.9 696.9 
Total net sales$3,086.5 $103.6 $3,190.1 
6. Net Income (Loss) Per Share
Basic net income (loss) per share is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common share equivalents or the conversion of Preferred Stock (as defined below). Common share equivalents consist of the incremental common shares issuable upon the exercise of stock options and vesting of restricted stock unit awards. Diluted net income (loss) per common share is calculated by dividing net income (loss) attributable to common stockholders by the fully diluted weighted-average number of common shares outstanding during the period.
In connection with the acquisition of Allied Building Products Corp. on January 2, 2018 (the “Allied Acquisition”), the Company completed the sale of 400,000 shares of Series A Cumulative Convertible Participating Preferred Stock, par value $0.01 per share (the “Preferred Stock”), with an aggregate liquidation preference of $400.0 million, at a purchase price of $1,000 per share, to CD&R Boulder Holdings, L.P. The Preferred Stock is convertible perpetual participating preferred stock of the Company, and conversion of the Preferred Stock into $0.01 par value shares of the Company’s common stock will be at a conversion price of $41.26 per share (or 9,694,619 shares of common stock). The Preferred Stock accumulates dividends at a rate of 6.0% per annum (payable quarterly in cash or in-kind, subject to certain conditions). The Preferred Stock is not mandatorily redeemable; therefore, it is classified as mezzanine equity in the Company’s condensed consolidated balance sheets. Holders of Preferred Stock participate in dividends on an as-converted basis when declared on common shares. As a result, Preferred Stock is classified as a participating security and thereby requires the allocation of income that would have otherwise been available to common stockholders when calculating net income (loss) per share.
Diluted net income (loss) per share is calculated by utilizing the most dilutive result of the if-converted and two-class methods. In both methods, net income (loss) attributable to common stockholders and the weighted-average common shares outstanding are adjusted to account for the impact of the assumed issuance of potential common shares that are dilutive, subject to dilution sequencing rules.
11


The following table presents the components and calculations of basic and diluted net income (loss) per share (in millions, except per share amounts; certain amounts may not recalculate due to rounding):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Numerator:
Net income (loss) from continuing operations$174.5 $79.8 $230.3 $69.3 
Dividends on Preferred Stock(6.0)(6.0)(12.0)(12.0)
Undistributed income from continuing operations allocated to participating securities(20.9)(9.0)(26.8)(6.9)
Net income (loss) from continuing operations attributable to common stockholders – Basic and Diluted147.6 64.8 191.5 50.4 
Net income (loss) from discontinued operations – Basic (3.3) 0.9 
Undistributed income from discontinued operations allocated to participating securities 0.4  (0.2)
Net income (loss) from discontinued operations attributable to common stockholders – Basic and Diluted (2.9) 0.7 
Net income (loss) attributable to common stockholders – Basic and Diluted$147.6 $61.9 $191.5 $51.1 
Denominator:
Weighted-average common shares outstanding – Basic68.1 69.9 69.1 69.8 
Effect of common share equivalents1.4 1.4 1.3 1.2 
Weighted-average common shares outstanding – Diluted69.5 71.3 70.4 71.0 
Net income (loss) per share:
Basic – Continuing operations$2.17 $