Beacon Roofing swings to profit
Beacon Roofing Supply, the Peabody, Mass., distributor of roofing and other housing exterior materials, posted net sales of $395.1 million for its second fiscal quarter of 2012, a 33.4% increase over sales of $296.3 million in the same quarter in 2011. Existing market (organic) sales, which exclude branches acquired after the beginning of last year's second quarter, increased 28.2%.
Net income for the second quarter, which ended March 31, was $3.1 million compared with a net loss of $6.2 million a year ago. The higher net income was due to the higher sales and gross margin rate, partially offset by the impact from higher operating expenses and a higher income tax provision compared to an income tax benefit in 2011.
In a prepared statement, Paul Isabella, the company's president and CEO, said: "The positive momentum from our first quarter continued into our second quarter, and we finished with record results for the first half of fiscal 2012. Our results for the second quarter and first half significantly exceeded our expectations and most of our regions are on track for a very successful year. Once again, our company-wide residential and non-residential product sales in existing markets both showed double-digit percentage increases for the quarter, while our complementary product sales were up 7%.”
Warm winter conditions boosted roofing and exterior remodeling activities, Isabella said, especially residential re-roofing. “In addition, our roofing businesses continued to benefit from industry-wide price increases, which mostly occurred during the second half of last year,” he added.
With Beacon’s new credit facility and an improved balance sheet, “We are confident that we will add additional quality companies this year that fit our target acquisition profile,” Isabella said.