Already growing quickly and with a big growth spurt in the offing, Beacon Roofing Supply reported today its net income grew 5.9% in its fiscal third quarter ended June 30 over the year-earlier period, thanks in part to an 8.3% rise in total sales to $718.2 million.
Gross margin rose to 23.6% from 22.7%, but operating expenses climbed to 16.9% of net sales from 15.8% in April through June 2014. Beacon attributed those higher operating costs in part to acquisitions and greenfield openings Beacon has made in the past 21 months that have added roughly three dozen stores to its portfolio. In fact, when one counts sales at only those stores Beacon owned in spring 2014, year-over-year revenue rose just 4.9% and net income as a share of total sales slipped to 3.9% from 4.0%.
Paul Isabella, Beacon's president and CEO, trumpeted the Herndon, Va.-based dealer's record third-quarter sales and said the news "continues the tremendous momentum from our
Beacon, with 274 branches in 42 U.S. states and six Canadian provinces, stands No. 3 on the ProSales 100. Its acquisition of No. 12 RSG will add roughly $1.3 billion in revenue to a company that posted $2.24 billion in revenue last year. Beacon has touted the combination as a way to strengthen its presence in fast-growing states like Texas, Florida, and California, as well as give Beacon its first presence in the Pacific Northwest.
Beacon stores in its fiscal third quarter recorded a 13.2% increase in sales of residential roofing products to $359.5 million; that's a shade over half of all its sales. Revenue from non-residential roofing products inched up 1.3% to $252.7 million and constituted 35.2% of all sales. The remaining $106 million in sales, or 14.7% of the total, were from complementary building products. That category rose 4.9% year over year.
Its balance sheet lists total assets of $1.58 billion as of June 30. Of that, close to one-third--$498.5 million--is goodwill.