Beacon Roofing Supply today announced a net income of $10.1 million for the company's fiscal first quarter ended Dec. 31, a 28.4% increase from the same period a year ago. The company also posted total sales of $404.8 million on the quarter, a 10.1% increase from first quarter 2010.
"Our first quarter 2011 results exceeded our expectations," said president and CEO Paul Isabella. "Our commercial and complementary businesses bounced back well from low prior year levels and some of our regions experienced healthy gains in residential business as well."
The Peabody, Mass.-based company's increased net income was attributed to higher sales combined with lower interest expense, which was partially offset by a lower gross margin rate, higher expenses and income taxes.
A 13.6% increase in non-residential roofing sales as well as a 12.1% increase in complementary product sales helped to drive total sales up. Existing market sales, also known as organic sales, also rose 6.6% during the quarter. Residential roofing continued to remain weak, however, as sales decreased by 0.8%.
Beacon also posted an income from operations of $19.8 million, a $1.3 million increase from the $18.5 million income from operations the company posted during first quarter 2010. Operating expenses as a percentage of net sales fell 0.5% during the quarter to 18.5%.
Adjusted EBITDA, which is earnings before interest, taxes, depreciation, and amortization, as well as before stock-based compensation, was $27.7 million, up 2.5% from the $27.1 million the company posted in first quarter 2010.
Isabella said the company is "optimistic about fiscal year 2011 based on the good start to the year."
Beacon roofing is third on the current ProSales 100 list and operates 177 branches nationwide with more than 2,250 employees.