Beacon Roofing Supply reported fourth quarter 2013 net income of $27.4 million down somewhat from year-ago net income of $27.9 million, while total sales rose 14.3% in the quarter to $683.5 million from$598.1 million a year ago.
Existing market sales, which don’t include sales from the seven branches opened in the quarter, rose 7.6% in the fourth quarter. Residential roofing products saw a 6.5% increase in sales, while non-residential product sales increased 10.1%. Complementary product sales rose 5% in the quarter.
"We experienced a solid increase in organic demand this quarter, which when combined with our acquisitions drove strong top line growth of over 14%,” says president and CEO Paul Isabella.
The Peabody, Mass.-based supplier opened seven branches in the quarter, bringing to 10 the number of planned branch openings for the year. The company plans to open 15 to 20 more new branches next year.
“Top line growth is one of the cornerstones of our strategy and is very much on track. We continued to experience a challenging pricing environment which drove down our gross margins from the prior year,” says Isabella.
For the full fiscal year, Beacon had total sales of $2.24 billion, a 9.6% increase over 2012 sales of $2.04 billion in 2012. Existing market sales rose 1.2% for the year. In existing markets, residential and complementary product sales increased 1.3% and 5.2%, respectively, while non-residential roofing product sales declined 0.4%.
Sales were favorably impacted by mild weather in the first half of the year, coupled with significant storm business carryover from 2011. During the first half fiscal 2013, the company experienced an unfavorable weather impact from fewer storms and heavy rains in several regions.
Net income for the year totaled $72.6 million in 2013 compared to $75.6 million in 2012.