Beacon Roofing Supply reported today a net loss of $5.7 million in its fiscal second quarter ended March 31 despite a near-doubling of sales to $823.5 million thanks largely to 2015's acquisition of Roofing Supply Group (RSG). But once the numbers are adjusted for various factors, Beacon said, its bottom line for the quarter works out to a net of $1.7 million.
Even by Generally Accepted Accounting Principles, the Herndon, Va.-based company showed improvement, narrowing the deficit from its $9.8 million net loss in last year's January-to-March quarter. Sales in those days prior to the RSG acquisition totaled $413.2 million.
Beacon noted that the latest quarter "includes $5.5 million of non-recurring charges, $5.7 million of additional amortization for acquired intangibles, and $1.2 million of interest expense, financing costs and other for the recognition of certain costs related to the RSG acquisition." Put those into the mix and you get the adjusted net profit, it said.
President and CEO Paul Isabella said the 99.3% leap in year-over-year sales came from organic growth and maturing greenfield operations as well as from acquiring RSG, which became part of Beacon last Oct. 1. In fact, existing market sales rose 27.7% for the quarter, Beacon said.
While the cost of products sold also nearly doubled to $627.8 million, the gross margin improved to 23.8% from 23.4%.
Sales of residential roofing products climbed 113.1% from a year earlier, non-residential roofing product sales increased 95.3%., and complementary product sales grew 67.2%.
The earnings announcement came just hours after Beacon announced it had acquired Fox Brothers, a four-unit, Michigan-based sellers of roofing, siding, doors, windows, and other products. And on April 1, Beacon announced it had acquired Atlantic Building Products, a two-unit company based in Pennsylvania, and Lyf-Tym Building Products, a siding specialist with three locations in North Carolina and one in Virginia.