BECN Beacon Roofing Supply Dashboard

Risks

• The impact of the COVID-19 pandemic, or similar health concerns, could have a significant effect on supply and/or demand for our products and have a negative impact on our business operations and financial results.
• An inability to obtain the products that we distribute could result in lost revenues and reduced margins and damage relationships with customers.
• A change in vendor pricing and demand could adversely affect our income and gross margins.
• A change in vendor rebates could adversely affect our income and gross margins.
• Loss of key talent or our inability to attract and retain new qualified talent could hurt our ability to operate and grow successfully.
• We may not be able to effectively integrate newly acquired businesses into our operations or achieve expected cost savings or profitability from our acquisitions.
• We may not be able to successfully complete acquisitions on acceptable terms, which would slow our growth rate.
• Cyclicality in our business and general economic conditions could result in lower revenues and reduced profitability.
• Seasonality and weather-related conditions may have a significant impact on our financial results from period to period
• If we encounter difficulties with our management information systems, we could experience problems with inventory, collections, customer service, cost control and business plan execution.
• An impairment of goodwill and/or other intangible assets could reduce net income.
• Major disruptions in the capital and credit markets may impact both the availability of credit and business conditions.
• Our level and terms of indebtedness could adversely affect our ability to raise additional capital to fund our operations, take advantage of new business opportunities, and prevent us from meeting our obligations under our debt instruments.
• The holders of Preferred Stock issued in connection with the Allied Acquisition have rights, preferences and privileges that are not held by, and are preferential to, the rights of our common shareholders. We may be required, under certain circumstances, to repurchase the preferred stock for cash, and such obligations could adversely affect our liquidity and financial condition.
• The CD&R Stockholder may sell shares of our common stock in the public market, which may cause the market price of our common stock to decrease, and therefore make it more difficult to raise equity financing or issue equity as consideration in an acquisition.
• The CD&R Stockholder holds a significant equity interest in our business and may exercise significant influence over us, including through its ability to designate up to two directors to our board of directors, and its interests as a preferred equity holder may diverge from, or even conflict with, the interests of our other common shareholders.