Beacon Roofing Supply reported today its net income shrank to $7.1 million in its fiscal first quarter ended Dec. 31 from $12.9 million in the year-earlier period, primarily because of its acquisition of Roofing Supply Group (RSG). Adjust for that takeover and net income would have totaled $24.7 million, it said.
Beacon, the No. 3 company on the ProSales 100, said total sales shot up 63.8% to $976.5 million. Sales at operations that Beacon has run at least a year rose 11.8%. Gross margins rose to 23.9% in the October-December 2015 period from 23.1% a year before.
Herndon, Va.-based Beacon now has 356 branches in 45 U.S. states and six Canadian provinces. RSG had stood 12th on the 2015 ProSales 100, with sales in 2014 totaling $1.22 billion.
Residential roofing products accounted for 50.6% of all sales (up from 46.9% the previous year), non-residential roofing products figured in 35.6% of sales (down from 36.7%) and complementary building products accounted for the other 13.8% of revenues (down from 16.4%).
President and CEO Paul Isabella said in a statement that the first quarter's results "continued the momentum from last year's record fourth quarter and has our 2016 fiscal year off to a great start. For our seventh consecutive quarter, all three lines of business grew over the prior year, with residential leading the way with 76.6% growth.
"We also had solid gross margin growth and effective cost control after eliminating non-recurring acquisition costs," Isabella continued. "We have made great progress with the integration of RSG and remain on track to achieve expected synergies targets in 2016 and beyond. The additions of RCI, RIS and Statewide in December show that we have the financial and operational capacity to add high-quality companies to our team, and I expect that trend to continue. For the remainder of 2016, we will continue our focus on sales growth, gross margin stability and improved operating leverage, which should build on the momentum created in the first quarter and enable us to deliver strong full year performance and earnings for our shareholders."