Beacon Roofing Supply reports sales declines
Beacon Roofing Supply, one of the nation’s largest distributors of roofing, siding and other exterior building products, reported sales of $482.6 million for its fourth fiscal quarter, a 1.1% decline over sales of $487.7 million in the same quarter of 2009. Excluded from the results were seven additional branches that were not in operation during the same period last year.
Net income for the fourth quarter, which ended Sept. 30, was $16.9 million compared with $19 million in 2009, a decline of 11.4%. The lower net income was primarily due to a lower gross margin rate, the company said, which was partially offset by the benefit from reduced expenses, including lower interest expense and income taxes.
For its full fiscal year, sales declined at Beacon Roofing by 7.2% to $1.61 billion in 2010 from $1.73 billion in 2009, while existing market sales decreased 8.7%. Residential roofing sales in existing markets decreased 18%, while non-residential roofing sales and complementary product sales increased 1.2% and 2.1%, respectively.
Net income was $34.5 million compared with $52.4 million in 2009, a decline of 34.1%.
Robert Buck, Beacon’s chairman and CEO, said in a prepared statement: “Our fourth quarter and fiscal 2010 results were disappointing as industry and economic conditions remained more challenging than anticipated. We were also up against a year that had significant storm business and record annual earnings. Despite these factors, our total sales declined only 1% in the fourth quarter due, in part, to the positive impact from our current-year acquisitions. In addition, our non-residential roofing and complementary product sales continued to rebound.
“We started to see some gains in residential business later in the year in a few of our regions that did not benefit from storms last year. We believe the favorable long-term industry growth factors remain in place, and we are in a good position to expand our company in 2011.”
Headquartered in Peabody, Mass., Beacon Roofing ranked third on the Home Channel News Top 350 Scoreboard in 2010, with 173 locations at the close of 2009.