Beacon Roofing Supply (BECN) 10-Q 6 Aug 15 2015 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Entity Registrant Name	BEACON ROOFING SUPPLY INC
Entity Central Index Key	1,124,941
Current Fiscal Year End Date	--09-30
Entity Filer Category	Large Accelerated Filer
Trading Symbol	BECN
Entity Common Stock, Shares Outstanding		49,713,966

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014	Jun. 30, 2014
Current assets:
Cash and cash equivalents	$ 17,594	$ 54,472	$ 26,405
Accounts receivable, less allowance of $8,352, $8,510 and $8,458 at June 30, 2015, September 30, 2014 and June 30, 2014, respectively	389,499	360,802	352,554
Inventories, net	386,812	301,626	399,619
Prepaid expenses and other current assets	99,505	66,828	72,048
Deferred income taxes	0	14,610	14,376
Total current assets	893,410	798,338	865,002
Property and equipment, net	88,868	88,565	81,433
Goodwill	498,499	466,206	467,916
Intangible assets, net	91,419	72,266	77,747
Other assets, net	3,143	8,521	7,094
TOTAL ASSETS	1,575,339	1,433,896	1,499,192
Current liabilities:
Accounts payable	257,656	220,834	227,630
Accrued expenses	105,756	80,285	102,539
Borrowings under revolver lines of credit	74,110	18,514	88,331
Current portion of long-term obligations	16,474	16,602	15,466
Total current liabilities	453,996	336,235	433,966
Senior term loan, net of current portion	177,188	185,625	188,438
Deferred income taxes	68,099	64,100	60,024
Long-term obligations under equipment financing and other, net of current portion	23,602	30,835	23,152
Total liabilities	$ 722,885	$ 616,795	$ 705,580
Commitments and contingencies
Stockholders' equity:
Common stock (voting); $.01 par value; 100,000,000 shares authorized; 49,697,834 issued and outstanding at June 30, 2015; 49,392,774 issued and outstanding at September 30, 2014; and 49,334,088 issued and outstanding at June 30, 2014	$ 496	$ 493	$ 493
Undesignated preferred stock; 5,000,000 shares authorized, none issued or outstanding	0	0	0
Additional paid-in capital	340,468	328,059	325,086
Retained earnings	526,598	495,128	470,921
Accumulated other comprehensive loss	(15,108)	(6,579)	(2,888)
Total stockholders’ equity	852,454	817,101	793,612
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 1,575,339	$ 1,433,896	$ 1,499,192

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2015	Sep. 30, 2014	Jun. 30, 2014
Accounts receivable, allowances	$ 8,352	$ 8,510	$ 8,458
Common stock (voting), par value	$ 0.01	$ 0.01	$ 0.01
Common stock (voting), shares authorized	100,000,000	100,000,000	100,000,000
Common stock (voting), issued	49,697,834	49,392,774	49,334,088
Common Stock (voting), outstanding	49,697,834	49,392,774	49,334,088
Undesignated Preferred Stock, shares authorized	5,000,000	5,000,000	5,000,000
Undesignated Preferred Stock, issued	0	0	0
Undesignated Preferred Stock, outstanding	0	0	0

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net sales	$ 718,214	$ 663,397	$ 1,727,440	$ 1,600,411
Cost of products sold	548,778	512,584	1,323,666	1,235,901
Gross profit	169,436	150,813	403,774	364,510
Operating expenses	121,445	105,004	345,852	308,826
Income from operations	47,991	45,809	57,922	55,684
Interest expense, financing costs and other	2,494	2,510	7,988	7,707
Income before provision for income taxes	45,497	43,299	49,934	47,977
Provision for income taxes	17,148	16,500	18,464	18,338
Net income	$ 28,349	$ 26,799	$ 31,470	$ 29,639
Net income per share:
Basic	$ 0.57	$ 0.54	$ 0.64	$ 0.60
Diluted	$ 0.56	$ 0.54	$ 0.63	$ 0.59
Weighted average shares used in computing net income per share:
Basic	49,638,251	49,315,892	49,526,436	49,185,893
Diluted	50,199,126	50,027,240	50,089,987	49,946,381

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net income	$ 28,349	$ 26,799	$ 31,470	$ 29,639
Other comprehensive income (loss):
Foreign currency translation adjustment	944	3,096	(8,413)	(2,832)
Unrealized gain (loss) due to change in fair value of derivatives, net of tax	182	(222)	(116)	320
Total other comprehensive income (loss), net of tax	1,126	2,874	(8,529)	(2,512)
Comprehensive income	$ 29,475	$ 29,673	$ 22,941	$ 27,127

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating activities
Net income	$ 31,470	$ 29,639
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	25,920	22,609
Stock-based compensation	7,305	5,239
Certain interest expense and other financing costs	814	816
Gain on sale of fixed assets	(609)	(660)
Deferred income taxes	(589)	793
Adjustment of liability for contingent consideration and other	286	177
Changes in assets and liabilities, net of the effects of businesses acquired:
Accounts receivable	(20,581)	(23,789)
Inventories	(73,717)	(148,384)
Prepaid expenses and other assets	(7,168)	(12,697)
Accounts payable and accrued expenses	48,091	79,475
Net cash provided by (used in) operating activities	11,222	(46,782)
Investing activities
Purchases of property and equipment	(13,787)	(26,090)
Acquisition of businesses	(85,301)	0
Proceeds from sales of assets	804	760
Net cash used in investing activities	(98,284)	(25,330)
Financing activities
Borrowings under revolving lines of credit, net of repayments	56,778	40,647
Borrowings/(Repayments) under equipment financing facilities and other	(4,114)	11,450
Repayments under senior term loan	(8,438)	(8,437)
Proceeds from exercise of options	5,107	6,890
Excess tax benefit from stock-based compensation	1,245	949
Net cash provided by financing activities	50,578	51,499
Effect of exchange rate changes on cash	(394)	(9)
Net decrease in cash and cash equivalents	(36,878)	(20,622)
Cash and cash equivalents, beginning of year	54,472	47,027
Cash and cash equivalents, end of period	17,594	26,405
Cash paid during the year for:
Interest	6,847	6,849
Income taxes, net of refunds	$ 21,295	$ 21,715

Basis of Presentation

Basis of Presentation	9 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation Of Financial Statements [Abstract]
Basis of Presentation	1. Basis of Presentation Beacon Roofing Supply, Inc. (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. The balance sheet as of June 30, 2014 has been presented for a better understanding of the impact of seasonal fluctuations on the Company's financial condition. In management's opinion, the 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-month period (third quarter) ended June 30, 2015 are not necessarily indicative of the results to be expected for the twelve months ending September 30, 2015 (fiscal year 2015 or “2015”). The Company’s inventories are primarily comprised of finished goods valued at the lower of cost or market (net realizable value). Cost is determined using the moving weighted-average cost method. The nine-month periods ended June 30, 2015 and June 30, 2014 each had 189 business days, while the three-month periods ended June 30, 2015 and June 30, 2014 each had 64 business days. These interim Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto contained in the Company’s fiscal year 2014 (“2014”) Annual Report on Form 10-K for the year ended September 30, 2014, collectively referred to as the “2014 Annual Report”.

Net Income Per Share

Net Income Per Share	9 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Net Income per Share	2. Net Income per Share Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of common shares and dilutive common share equivalents then outstanding using the treasury stock method. Common equivalent shares consist of the incremental common shares issuable upon the exercise of stock options and vesting of restricted stock awards. Three Months Ended June 30, Nine Months Ended June 30, 2015 2014 2015 2014 Weighted average common shares outstanding 49,638,251 49,315,892 49,526,436 49,185,893 Effect of dilutive securities: Stock option awards 475,064 597,218 473,177 636,700 Restricted stock awards 85,811 114,130 90,374 123,788 Shares for diluted earnings per share 50,199,126 50,027,240 50,089,987 49,946,381 Three Months Ended June 30, Nine Months Ended June 30, 2015 2014 2015 2014 Stock options awards 1,328,452 926,693 1,335,952 925,729 Restricted stock awards — 197,700 2,206 176,700

Comprehensive Income and Capita

Comprehensive Income and Capital Structure	9 Months Ended
	Jun. 30, 2015
Comprehensive Income And Capital Structure [Abstract]
Comprehensive Income And Capital Structure	3. Comprehensive Income and Capital Structure Accumulated Other Total Common Additional Paid- Retained Comprehensive Stockholders’ Stock In Capital Earnings Income (Loss) Equity Balance at September 30, 2014 $ 493 $ 328,059 $ 495,128 $ (6,579) $ 817,101 Issuance of common stock 3 5,104 — — 5,107 Stock-based compensation — 7,305 — — 7,305 Net income — — 31,470 — 31,470 Other comprehensive loss — — — (8,529) (8,529) Balance at June 30, 2015 $ 496 $ 340,468 $ 526,598 $ (15,108) $ 852,454 Accumulated other comprehensive income (loss) consists of adjustments related to the translation of foreign currencies and fair value adjustments associated with cash flow hedges. Accumulated Foreign Derivative Other Currency Financial Comprehensive Translation Instruments Income (Loss) Balance at September 30, 2014 $ (5,290) $ (1,289) $ (6,579) Other comprehensive income (loss) recognized in accumulated other comprehensive income (loss) (8,413) (116) (8,529) Balance at June 30, 2015 $ (13,703) $ (1,405) $ (15,108) There were no reclassifications out of accumulated other comprehensive income (loss) during the nine months ended June 30, 2015.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Jun. 30, 2015
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]
Stock-based compensation	4. Stock-Based Compensation On February 12, 2014, the shareholders of the Company approved the Beacon Roofing Supply, Inc. 2014 Stock Plan (the “2014 Plan”). The 2014 Plan provides for discretionary awards of stock options, stock, stock units and stock appreciation rights (“SARs”) for up to 5,100,000 3,425,716 In addition to the 2014 Plan, the Company also maintains the amended and restated Beacon Roofing Supply, Inc. 2004 Stock Plan (the “2004 Plan”). Upon shareholder approval of the 2014 Plan, the Company ceased issuing equity awards from the pre-existing 2004 Plan and all future equity awards will be issued from the 2014 Plan. The Company recognizes the cost of employee services rendered in exchange for awards of equity instruments based on the fair value of those awards at the date of the grant. Compensation expense for time-based equity awards is recognized, on a straight-line basis, net of forfeitures, over the requisite service period for the fair value of the awards that actually vest. Compensation expense for performance-based equity awards is recognized, net of forfeitures, by projecting the number of restricted units that are expected to vest based on the achievement of the underlying related performance measures. For all equity awards granted prior to October 1, 2014, in the event of a change in control of the Company, all awards are immediately vested. Beginning in fiscal 2015, equity awards contain a “double trigger” change in control mechanism. Unless an award is continued or assumed by a public company in an equitable manner, an award shall become fully vested immediately prior to a change in control (at 100 Stock options Non-qualified options generally expire 10 4.8 5.2 7.3 1.67 2015 Risk-free interest rate 1.83 % Expected volatility 31.69 % Expected life (in years) 5.58 Expected dividend yield 0.00 % Expected lives of the options granted are based primarily on historical activity, while expected volatilities are based on historical volatilities of the Company’s stock. Estimated forfeiture rates vary by grant and range up to 8.86 Weighted- Weighted- Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Life Value (in years) (in millions) Outstanding at September 30, 2014 2,364,211 $ 22.98 Granted 482,479 $ 28.58 Exercised (257,838) $ 17.71 Canceled (73,587) $ 29.33 Outstanding at June 30, 2015 2,515,265 $ 24.43 6.5 $ 23.4 Vested or Expected to Vest at June 30, 2015 2,402,902 $ 24.16 6.4 $ 23.0 Exercisable at June 30, 2015 1,619,301 $ 20.72 5.2 $ 20.7 Restricted stock awards During the nine months ended June 30, 2015 and 2014, the Company recorded stock-based compensation expense related to restricted stock awards of $ 2.5 8.9 2 The total fair values of the restricted stock awards were determined based upon the number of shares or units and the closing prices of the Company’s common stock on the dates of the grants. The restricted stock awards granted to management are subject to continued employment, except under certain conditions, and will vest if the Company attains a targeted rate of return on invested capital at the end of a three-year period. The actual number of shares or units that will vest can range from 0 125 Weighted- Weighted- Average Average Remaining Aggregate Number of Grant Contractual Intrinsic Shares Price Life Value (in years) (in millions) Outstanding at September 30, 2014 482,076 $ 31.28 Granted 230,842 $ 27.97 Lapse of restrictions/conversions (67,953) $ 19.88 Canceled (79,859) $ 26.74 Outstanding at June 30, 2015 565,106 $ 32.52 2.6 $ 17.0 Vested or Expected to Vest at June 30, 2015 339,735 $ 32.12 3.4 $ 11.3

Acquisitions

Acquisitions	9 Months Ended
	Jun. 30, 2015
Business Combinations [Abstract]
Acquisitions	5. Acquisitions In the nine months ended June 30, 2015, the Company acquired eight branches from the following three acquisitions: · On October 1, 2014, the Company purchased certain assets of Applicators Sales & Service (“Applicators”), a distributor of residential roofing, siding, windows and related accessories with four locations in Maine and one location in New Hampshire and annual sales of approximately $ 48 · On October 15, 2014, the Company purchased certain assets of Wholesale Roofing Supply (“WRS”), a distributor of residential roofing products with a nine-acre facility located in Grand Prairie, Texas and annual sales of approximately $ 34 · On June 1, 2015, the Company purchased certain assets of ProCoat Systems, Inc. ("ProCoat"), a distributor of residential and commercial exterior building materials including stucco, stone, waterproofing and concrete restoration with branches located in Denver and Ft. Collins, Colorado with annual sales of approximately $ 23 The Company preliminarily recorded the acquired assets and liabilities at their estimated fair values at the acquisition date, with resulting goodwill of $ 34.2 31.8

Financing Arrangements

Financing Arrangements	9 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Financing Arrangements	6. Financing Arrangements June 30, September 30, June 30, 2015 2014 2014 Senior Secured Credit Facility Revolving Lines of Credit: Canadian revolver-expires March 31, 2017 (3.6% at June 30, 2015, 4.0% at September 30, 2014 and 3.75% at June 30, 2014) $ 12,010 $ 10,714 $ 11,246 U.S. Revolver-expires March 31, 2017 (4.0% at June 30, 2015, 4.25% at September 30, 2014 and 4.0% at June 30, 2014) 62,100 7,800 77,085 Term Loan: Term Loan-matures March 31, 2017 (1.93% at June 30, 2015, 2.15% at September 30, 2014 and 1.90% at June 30, 2014) 188,438 196,875 199,688 Total borrowings under Senior Secured Credit Facility 262,548 215,389 288,019 Less: current portion (85,360) (29,764) (99,581) Total long-term portion of borrowings under Senior Secured Credit Facility $ 177,188 $ 185,625 $ 188,438 Equipment Financing Facilities Borrowings under various equipment financing facilities-various maturities from November 2015 through September 2021 (various fixed interest rates ranging from 2.33% to 4.49% at June 30, 2015; 2.33% to 4.60% at September 30, 2014; and 2.33% to 6.75% at June 30, 2014) $ 26,927 $ 30,966 $ 22,043 Less: current portion (5,224) (5,352) (4,216) Total long-term portion of borrowings under equipment financing facilities $ 21,703 $ 25,614 $ 17,827

Financial Instruments

Financial Instruments	9 Months Ended
	Jun. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Financial Instruments	Financial Instruments Financial Derivatives The Company uses derivative financial instruments to manage its exposure related to fluctuating cash flows from changes in interest rates. Use of derivative financial instruments in hedging programs subjects the Company to certain risks, such as market and credit risks. Market risk represents the possibility that the value of the derivative instrument will change. In a hedging relationship, the change in the value of the derivative is offset to a great extent by the change in the value of the underlying hedged item. Credit risk related to derivatives represents the possibility that the counterparty will not fulfill the terms of the contract. The notional, or contractual, amount of the Company's derivative financial instruments is used to measure interest to be paid or received and does not represent the Company's exposure due to credit risk. The Company's current derivative instruments are with large financial counterparties rated highly by nationally recognized credit rating agencies. The Company uses interest rate derivative instruments to manage the risk related to fluctuating cash flows from interest rate changes by converting a portion of its variable-rate borrowings into fixed-rate borrowings. On March 28, 2013, we entered into an interest rate swap agreement with a notional amount of $ 213.8 March 31, 2017 1.38 2.8 quarter 188.4 For derivative instruments designated as cash flow hedges, the Company records the effective portions of changes in their fair value, net of taxes, in other comprehensive income. The effectiveness of the hedges is periodically assessed by the Company during the lives of the hedges by 1) comparing the current terms of the hedges with the related hedged debt to assure they continue to coincide and 2) through an evaluation of the ability of the counterparties to the hedges to honor their obligations under the hedges. Any ineffective portions of the hedges are recognized in earnings through interest expense, financing costs and other. The Company records any differences paid or received on its interest rate hedges as adjustments to interest expense. Balance Sheet June 30, September 30, June 30, Fair Value Instrument Location 2015 2014 2014 Hierarchy Designated interest rate swaps (effective) Accrued expenses $ 2,321 $ 2,124 $ 3,202 Level 2 $ 2,321 $ 2,124 $ 3,202 The fair values of the interest rate hedges were determined through the use of pricing models, which utilize verifiable inputs such as market interest rates that are observable at commonly quoted intervals (generally referred to as the “LIBOR Curve”) for the full terms of the hedge agreements. These values reflect a Level 2 measurement under the applicable fair value hierarchy. Three Months Ended June 30, Nine Months Ended June 30, 2015 2014 2015 2014 Amount of gain (loss) recognized in OCI (net of tax) Designated interest rate swaps $ 182 $ (222) $ (116) $ 320 During the three and nine months ended June 30, 2015 and 2014, there were no amounts related to non-designated interest rate derivative instruments which were recognized in interest expense, financing costs and other. Cash and cash equivalents The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Cash and cash equivalents also include unsettled credit card transactions. Cash equivalents have been comprised of money market funds, which invest primarily in commercial paper or bonds with a rating of A-1 or better, and bank certificates of deposit. The carrying values of the cash equivalents for the periods presented equaled the fair values, which were determined under Level 1 of the Fair Value Hierarchy.

Foreign Net Revenue

Foreign Net Revenue	9 Months Ended
	Jun. 30, 2015
Revenue and Total Property From External Customers Attributed To Foreign Countries By Geographic Area Disclosure [Abstract]
Foreign Net Revenue	Foreign Net Revenue Foreign (Canadian) net revenue totaled $ 56.7 51.7 122.7 111.8

Subsequent Events

Subsequent Events	9 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
Subsequent Events [Text Block]	Subsequent Events On July 27, 2015, BECN announced that it entered into a definitive merger agreement to acquire Roofing Supply Group (“RSG”), a leading roofing products distributor owned by investment firm Clayton, Dubilier & Rice (“CD&R”), in a cash and stock transaction valued at approximately $ 1.1 286 291 565 October 1, 2015

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Calculation of Weighted-Average Shares Outstanding	The following table presents the basic and diluted weighted average shares outstanding for each period presented: Three Months Ended June 30, Nine Months Ended June 30, 2015 2014 2015 2014 Weighted average common shares outstanding 49,638,251 49,315,892 49,526,436 49,185,893 Effect of dilutive securities: Stock option awards 475,064 597,218 473,177 636,700 Restricted stock awards 85,811 114,130 90,374 123,788 Shares for diluted earnings per share 50,199,126 50,027,240 50,089,987 49,946,381
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following table includes the number of shares that may be dilutive common shares in the future. These shares were not included in the computation of diluted earnings per share because the effect was either antidilutive or the performance condition was not met. Three Months Ended June 30, Nine Months Ended June 30, 2015 2014 2015 2014 Stock options awards 1,328,452 926,693 1,335,952 925,729 Restricted stock awards — 197,700 2,206 176,700

Comprehensive Income and Capi17

Comprehensive Income and Capital Structure (Tables)	9 Months Ended
	Jun. 30, 2015
Comprehensive Income And Capital Structure [Abstract]
Schedule of Stockholders Equity	The following table presents the activity included in stockholders’ equity during the nine months ended June 30, 2015: Accumulated Other Total Common Additional Paid- Retained Comprehensive Stockholders’ Stock In Capital Earnings Income (Loss) Equity Balance at September 30, 2014 $ 493 $ 328,059 $ 495,128 $ (6,579) $ 817,101 Issuance of common stock 3 5,104 — — 5,107 Stock-based compensation — 7,305 — — 7,305 Net income — — 31,470 — 31,470 Other comprehensive loss — — — (8,529) (8,529) Balance at June 30, 2015 $ 496 $ 340,468 $ 526,598 $ (15,108) $ 852,454
Reclassification out of Accumulated Other Comprehensive Income	The following table presents the changes in accumulated other comprehensive income (loss), by component, during the nine months ended June 30, 2015: Accumulated Foreign Derivative Other Currency Financial Comprehensive Translation Instruments Income (Loss) Balance at September 30, 2014 $ (5,290) $ (1,289) $ (6,579) Other comprehensive income (loss) recognized in accumulated other comprehensive income (loss) (8,413) (116) (8,529) Balance at June 30, 2015 $ (13,703) $ (1,405) $ (15,108)

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Jun. 30, 2015
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]
Fair Values of Options, Black-Scholes Option-Pricing Model, Weighted-Average Assumptions	The following table illustrates the assumptions used in the Black-Scholes pricing model for options granted during the nine months ended June 30, 2015: 2015 Risk-free interest rate 1.83 % Expected volatility 31.69 % Expected life (in years) 5.58 Expected dividend yield 0.00 %
Stock Options Outstanding and Activity During the Period	Information regarding the Company’s stock options is summarized below: Weighted- Weighted- Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Life Value (in years) (in millions) Outstanding at September 30, 2014 2,364,211 $ 22.98 Granted 482,479 $ 28.58 Exercised (257,838) $ 17.71 Canceled (73,587) $ 29.33 Outstanding at June 30, 2015 2,515,265 $ 24.43 6.5 $ 23.4 Vested or Expected to Vest at June 30, 2015 2,402,902 $ 24.16 6.4 $ 23.0 Exercisable at June 30, 2015 1,619,301 $ 20.72 5.2 $ 20.7
Restricted Shares and Units Outstanding and Activity During the Period	Information regarding the Company’s restricted shares and units is summarized below: Weighted- Weighted- Average Average Remaining Aggregate Number of Grant Contractual Intrinsic Shares Price Life Value (in years) (in millions) Outstanding at September 30, 2014 482,076 $ 31.28 Granted 230,842 $ 27.97 Lapse of restrictions/conversions (67,953) $ 19.88 Canceled (79,859) $ 26.74 Outstanding at June 30, 2015 565,106 $ 32.52 2.6 $ 17.0 Vested or Expected to Vest at June 30, 2015 339,735 $ 32.12 3.4 $ 11.3

Financing Arrangements (Tables)

Financing Arrangements (Tables)	9 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	Financing arrangements consisted of the following: June 30, September 30, June 30, 2015 2014 2014 Senior Secured Credit Facility Revolving Lines of Credit: Canadian revolver-expires March 31, 2017 (3.6% at June 30, 2015, 4.0% at September 30, 2014 and 3.75% at June 30, 2014) $ 12,010 $ 10,714 $ 11,246 U.S. Revolver-expires March 31, 2017 (4.0% at June 30, 2015, 4.25% at September 30, 2014 and 4.0% at June 30, 2014) 62,100 7,800 77,085 Term Loan: Term Loan-matures March 31, 2017 (1.93% at June 30, 2015, 2.15% at September 30, 2014 and 1.90% at June 30, 2014) 188,438 196,875 199,688 Total borrowings under Senior Secured Credit Facility 262,548 215,389 288,019 Less: current portion (85,360) (29,764) (99,581) Total long-term portion of borrowings under Senior Secured Credit Facility $ 177,188 $ 185,625 $ 188,438 Equipment Financing Facilities Borrowings under various equipment financing facilities-various maturities from November 2015 through September 2021 (various fixed interest rates ranging from 2.33% to 4.49% at June 30, 2015; 2.33% to 4.60% at September 30, 2014; and 2.33% to 6.75% at June 30, 2014) $ 26,927 $ 30,966 $ 22,043 Less: current portion (5,224) (5,352) (4,216) Total long-term portion of borrowings under equipment financing facilities $ 21,703 $ 25,614 $ 17,827

Financial Instruments (Tables)

Financial Instruments (Tables)	9 Months Ended
	Jun. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Fair Value of Interest Rate Derivative Instruments	The table below presents the combined fair values of the interest rate derivative instruments: Balance Sheet June 30, September 30, June 30, Fair Value Instrument Location 2015 2014 2014 Hierarchy Designated interest rate swaps (effective) Accrued expenses $ 2,321 $ 2,124 $ 3,202 Level 2 $ 2,321 $ 2,124 $ 3,202
Schedule of Interest Rate Derivatives	The table below presents the amounts of gain (loss) on the interest rate derivative instruments recognized in other comprehensive income (OCI): Three Months Ended June 30, Nine Months Ended June 30, 2015 2014 2015 2014 Amount of gain (loss) recognized in OCI (net of tax) Designated interest rate swaps $ 182 $ (222) $ (116) $ 320

Net Income Per Share (Details)

Net Income Per Share (Details) - shares	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Weighted average common shares outstanding	49,638,251	49,315,892	49,526,436	49,185,893
Effect of dilutive securities:
Shares for diluted earnings per share	50,199,126	50,027,240	50,089,987	49,946,381
Stock Options Awards
Effect of dilutive securities:
Weighted Average Number Diluted Shares Outstanding Adjustment	475,064	597,218	473,177	636,700
Restricted Stock Awards
Effect of dilutive securities:
Weighted Average Number Diluted Shares Outstanding Adjustment	85,811	114,130	90,374	123,788

Net Income Per Share (Details 1

Net Income Per Share (Details 1) - shares	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Stock Options Awards
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,328,452	926,693	1,335,952	925,729
Restricted Stock Awards
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	197,700	2,206	176,700

Comprehensive Income and Capi23

Comprehensive Income and Capital Structure (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Stockholders Equity, Opening Balance			$ 817,101
Issuance of common stock			5,107
Stock-based compensation			7,305	$ 5,239
Net income	$ 28,349	$ 26,799	31,470	29,639
Other comprehensive loss			(8,529)
Stockholders Equity, Ending Balance	852,454	$ 793,612	852,454	$ 793,612
Common Stock
Stockholders Equity, Opening Balance			493
Issuance of common stock			3
Stock-based compensation			0
Net income			0
Other comprehensive loss			0
Stockholders Equity, Ending Balance	496		496
Additional Paid-in Capital
Stockholders Equity, Opening Balance			328,059
Issuance of common stock			5,104
Stock-based compensation			7,305
Net income			0
Other comprehensive loss			0
Stockholders Equity, Ending Balance	340,468		340,468
Retained Earnings
Stockholders Equity, Opening Balance			495,128
Issuance of common stock			0
Stock-based compensation			0
Net income			31,470
Other comprehensive loss			0
Stockholders Equity, Ending Balance	526,598		526,598
Accumulated Other Comprehensive Income (Loss)
Stockholders Equity, Opening Balance			(6,579)
Issuance of common stock			0
Stock-based compensation			0
Net income			0
Other comprehensive loss			(8,529)
Stockholders Equity, Ending Balance	$ (15,108)		$ (15,108)

Comprehensive Income and Capi24

Comprehensive Income and Capital Structure (Details 1) $ in Thousands	9 Months Ended
	Jun. 30, 2015USD ($)
Foreign Currency Translation
Balance at September 30, 2014	$ (5,290)
Other comprehensive income (loss) recognized in accumulated other comprehensive income (loss)	(8,413)
Balance at June 30, 2015	(13,703)
Derivative Financial Instruments
Balance at September 30, 2014	(1,289)
Other comprehensive income (loss) recognized in accumulated other comprehensive income (loss)	(116)
Balance at June 30, 2015	(1,405)
Accumulated Other Comprehensive Income (Loss)
Balance at September 30, 2014	(6,579)
Other comprehensive income (loss) recognized in accumulated other comprehensive income (loss)	(8,529)
Balance at June 30, 2015	$ (15,108)

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - 9 months ended Jun. 30, 2015	Total
Risk-free interest rate	1.83%
Expected volatility	31.69%
Expected life (in years)	5 years 6 months 29 days
Expected dividend yield	0.00%

Stock-Based Compensation (Det26

Stock-Based Compensation (Details 1) - Jun. 30, 2015 - USD ($) $ / shares in Units, $ in Millions	Total
Number of Shares
Outstanding at September 30, 2014	2,364,211
Granted	482,479
Exercised	(257,838)
Canceled	(73,587)
Outstanding at June 30, 2015	2,515,265
Vested or Expected to Vest at June 30, 2015	2,402,902
Exercisable at June 30, 2015	1,619,301
Weighted-Average Exercise Price
Outstanding at September 30, 2014	$ 22.98
Granted	28.58
Exercised	17.71
Canceled	29.33
Outstanding at June 30, 2015	24.43
Vested or Expected to Vest at June 30, 2015	24.16
Exercisable at June 30, 2015	$ 20.72
Weighted-Average Remaining Contractual Life
Outstanding at June 30, 2015	6 years 6 months
Vested or Expected to Vest at June 30, 2015	6 years 4 months 24 days
Exercisable at June 30, 2015	5 years 2 months 12 days
Aggregate Intrinsic Value
Outstanding at June 30, 2015	$ 23.4
Vested or Expected to Vest at June 30, 2015	23
Exercisable at June 30, 2015	$ 20.7

Stock-Based Compensation (Det27

Stock-Based Compensation (Details 2) - Jun. 30, 2015 - USD ($) $ / shares in Units, $ in Millions	Total
Number of Shares
Outstanding at September 30, 2014	482,076
Granted	230,842
Lapse of restrictions/conversions	(67,953)
Canceled	(79,859)
Outstanding at June 30, 2015	565,106
Vested or Expected to Vest at June 30, 2015	339,735
Weighted - Average Grant Price
Outstanding at September 30, 2014	$ 31.28
Granted	27.97
Lapse of restrictions/conversions	19.88
Canceled	26.74
Outstanding at June 30, 2015	32.52
Vested or Expected to Vest at March 31, 2015	$ 32.12
Weighted - Average Remaining Contractual Life
Outstanding at June 30, 2015	2 years 7 months 6 days
Vested or Expected to Vest at June 30, 2015	3 years 4 months 24 days
Aggregate Intrinsic Value
Outstanding at June 30, 2015	$ 17
Vested or Expected to Vest at June 30, 2015	$ 11.3

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Feb. 12, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation number of shares authorized			5,100,000
Stock-based compensation number of shares available for awards	3,425,716
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost related to unvested stock	$ 8.9
Total unrecognized compensation cost related to unvested stock, expected weighted-average period of recognition	2 years 6 months 7 days
Percentage of shares that will vest	100.00%
Allocated Share-based Compensation Expense	$ 2.5	$ 0
Restricted Stock | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of shares that will vest	125.00%
Restricted Stock | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of shares that will vest	0.00%
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost related to unvested stock	$ 7.3
Total unrecognized compensation cost related to unvested stock, expected weighted-average period of recognition	1 year 8 months 1 day
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumption Expected Forfeitures	8.86%
Allocated Share-based Compensation Expense	$ 4.8	$ 5.2
Non Qualified Options Expire	10 years

Acquisitions - Additional Infor

Acquisitions - Additional Information (Details) - USD ($) $ in Millions	Jun. 01, 2015	Oct. 15, 2014	Oct. 02, 2014	Jun. 30, 2015
Business Acquisition [Line Items]
Business Acquisitions Purchase Price Allocation Goodwill Amount				$ 34.2
Business Acquisitions Purchase Price Allocation Intangible Assets Other Than Goodwill				$ 31.8
Applicators Sales Service [Member]
Business Acquisition [Line Items]
Business Acquisition, sales reported by acquired entity for last annual period			$ 48
Wholesale Roofing Supply [Member]
Business Acquisition [Line Items]
Business Acquisition, sales reported by acquired entity for last annual period		$ 34
ProCoat Systems, Inc. [Member]
Business Acquisition [Line Items]
Business Acquisition, sales reported by acquired entity for last annual period	$ 23

Financing Arrangements (Details

Financing Arrangements (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014	Jun. 30, 2014
Total borrowings under Senior Secured Credit Facility	$ 262,548	$ 215,389	$ 288,019
Less: current portion	(85,360)	(29,764)	(99,581)
Total long-term portion of borrowings under Senior Secured Credit Facility	177,188	185,625	188,438
Less: current portion	(16,474)	(16,602)	(15,466)
Canadian Revolver
Total borrowings under Senior Secured Credit Facility	12,010	10,714	11,246
US Revolver
Total borrowings under Senior Secured Credit Facility	62,100	7,800	77,085
Term Loan
Total borrowings under Senior Secured Credit Facility	188,438	196,875	199,688
Equipment Financing Facilities
Total borrowings under Equipment Financing Facilities	26,927	30,966	22,043
Less: current portion	(5,224)	(5,352)	(4,216)
Total long-term portion of borrowings under equipment financing facilities	$ 21,703	$ 25,614	$ 17,827

Financing Arrangements (Detai31

Financing Arrangements (Details) (Parenthetical)	9 Months Ended
	Jun. 30, 2015	Sep. 30, 2014	Jun. 30, 2014
Canadian Revolver
Line of Credit Facility, Interest Rate at Period End	3.60%	4.00%	3.75%
Line of Credit Facility, Expiration Date	Mar. 31, 2017
US Revolver
Line of Credit Facility, Interest Rate at Period End	4.00%	4.25%	4.00%
Line of Credit Facility, Expiration Date	Mar. 31, 2017
Term Loan
Line of Credit Facility, Interest Rate at Period End	1.93%	2.15%	1.90%
Line of Credit Facility, Expiration Date	Mar. 31, 2017
Equipment Financing Facilities | Maximum
Line of Credit Facility, Interest Rate at Period End	4.49%	4.60%	6.75%
Equipment Financing Facilities | Minimum
Line of Credit Facility, Interest Rate at Period End	2.33%	2.33%	2.33%

Financial Instruments (Details)

Financial Instruments (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Sep. 30, 2014
Derivatives, Fair Value [Line Items]
Unrealized Losses	$ 2,321	$ 3,202	$ 2,124
Designated | Interest Rate Swap | Level 2 | Accrued Expenses
Derivatives, Fair Value [Line Items]
Unrealized Losses	$ 2,321	$ 3,202	$ 2,124

Financial Instruments (Details

Financial Instruments (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Amount of gain (loss) recognized in OCI (net of tax)	$ 182	$ (222)	$ (116)	$ 320
Designated interest rate swaps [Member] | Other Comprehensive Income (Loss) [Member]
Amount of gain (loss) recognized in OCI (net of tax)	$ 182	$ (222)	$ (116)	$ 320

Financial Instruments - Additio

Financial Instruments - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2015	Mar. 28, 2013
Derivative [Line Items]
Derivative Amortizes Amount	$ 2.8
Derivative, Notional Amount	$ 188.4	$ 213.8
Interest Rate Swap Fixed Rate Of 1.38 %
Derivative [Line Items]
Interest rate swap, interest rate	1.38%
Derivative, Maturity Date	Mar. 31, 2017
Derivative Amortization Frequency	quarter

Foreign Net Revenue - Additiona

Foreign Net Revenue - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Segment Reporting Information [Line Items]
Net sales	$ 718,214	$ 663,397	$ 1,727,440	$ 1,600,411
Canada
Segment Reporting Information [Line Items]
Net sales	$ 56,700	$ 51,700	$ 122,700	$ 111,800

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - 1 months ended Jul. 27, 2015 - Roofing Supply Group [Member] - Subsequent Event [Member] - USD ($) $ in Millions	Total
Business Combination, Consideration Transferred	$ 1,100
Payments to Acquire Businesses, Gross	286
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable	291
Business Combination, Consideration Transferred, Liabilities Incurred	$ 565
Business Acquisition, Effective Date of Acquisition	Oct. 1, 2015