Beacon Roofing Supply forecasts a loss in the second quarter of 2019, primarily as a result of unfavorable weather conditions, according to a press release from the company.
Beacon is estimating a second quarter adjusted net income loss per share (adjusted EPS) of between $0.45 and $0.55. The Herndon, Va.-based dealer with more than 500 branches across the U.S. and Canada projects a second quarter net loss between $69 million and $76 million and an adjusted net income loss between $30 million and $37.5 million.
“Although the second quarter typically is our most difficult quarter, extremely harsh weather conditions, mostly in February and early March, will result in a quarterly adjusted EPS miss that we believe is appropriate to highlight early to the investment community in the interest of transparency,” Beacon Roofing president and CEO Paul Isabella said in a public statement.
Isabella said through mid-March, harsh weather has impacted between 40% and 75% of available selling days for Beacon, depending on geography. These seasonal pressures have caused margins to decline higher than anticipated, Isabella said, and the dealer has struggled to reduce variable expenses given the weather volatility. However, in his public statement, Isabella suggested the negative impacts of poor weather conditions should be isolated to the second quarter and Beacon anticipates “recapturing some of the quarter’s deferred volumes and margin during the second half of 2019.”
