Company: QXO-PB
Filing Date: 2025-04-16
Form Type: 424B5
Source: 0001140361-25-014221
Chunk: 60

Company: QXO, Inc.
Filing Date: 2025-04-16
Form: 424B5
Chunk 60
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 $112.8 million in 2024, compared to net cash used in financing activities of $546.4 million in 2023. Cash provided by financing activities increased $659.2 million primarily due to the one-time repurchase of convertible preferred stock in 2023, partially offset by an increase in common stock repurchases compared to the prior year. Monitoring and Assessing Collectability of Accounts Receivable Beacon performs periodic credit evaluations of its customers and generally does not require collateral, although Beacon typically obtains payment and performance bonds for any type of public work and can lien projects under certain circumstances. Consistent with industry practices, Beacon requires payment from most customers within 30 days, except for sales to its non-residential roofing contractors, which Beacon typically requires to pay in 60 days. As Beacon’s business is seasonal in certain geographic regions, its customers’ businesses are also seasonal. Sales are lowest in the winter months and its past due accounts receivable balance as a percentage of total receivables generally increases during this time. Throughout the year, Beacon closely monitors its receivables and record estimated reserves based upon its judgment of specific customer situations, aging of accounts, the historical write-offs of uncollectible accounts, and expected future circumstances that may impact collectability. Beacon’s divisional credit teams are staffed to manage and monitor its receivable aging balances and are led by a Chief Credit Officer, a seasoned executive with expertise in underwriting, loss mitigation, and collections. Its systems allow us to enforce predetermined credit approval levels and properly leverage new business. Specifically, the credit preapproval process denotes the maximum credit that each level of management can approve, with the highest credit amount requiring approval by the Chief Executive Officer and Chief Financial Officer. There are daily communications with branch and field staff and the divisional credit teams conduct periodic reviews with their branch managers, various regional management staff, and the Chief Credit Officer. Depending on the state of the respective division’s receivables, these reviews can be weekly, biweekly, or monthly. Additionally, the divisional credit teams are required to submit a monthly receivable forecast to the Chief Credit Officer. On a monthly basis, the Chief Credit Officer reviews and discusses these forecasts, as well as a prior month recap, with members of the executive management team. Periodically, Beacon performs a specific analysis of all accounts past due and write off account balances when it has exhausted reasonable collection efforts and determined that the likelihood of collection is remote based upon the following factors:

| • | aging statistics and trends; |

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