Beacon Roofing Supply, the third-largest company on the 2014 ProSales 100 list, today reported a net income of $26.7 million in a three-month period that started April 1 and ended June 30, which represents a 1.4% drop from last year's net sales of $27.1 million for the same period. Despite the drift in income, the company's net sales rose $663.3 million, up 5.8% from its three-month 2013 net sales of $627.2 million.
Compared with the same period in 2013, residential roofing product sales increased 2.7% to $317.5 million, and non-residential roofing product sales increased 9.7% to $249.4 million. Complementary product sales, which totaled $96.5 million, also increased 6.4% over the prior year.
"We delivered a solid 5.8% growth for the quarter, even in the face of continued soft residential roofing demand," said
The company, based in Herndon, Va., says its sales increase was offset by reduced selling prices and lower gross margins. Additionally, operating expenses rose 6.8% to $512.5 million when compared with 2013, although the company says that the increase reflects efforts to continue cost controls and grow its sales base.
"Although our gross margins improved slightly from the second quarter, they are still down from the prior year and continue to be our challenge. The soft residential market, coupled with heightened competition, has driven pricing down," said Isabella. "Our gross margins this quarter also were unfavorably impacted by our increased percentage of commercial and direct ship business that typically have lower margins."
Additionally, Beacon says