Beacon Roofing Supply, the third-largest dealer on the 2013 ProSales 100 list, reported a net income of about $15 million in this year's first quarter, a 17.5% drop from last year's first quarter net income.
Though total sales increased 7.5% in the first quarter, lower gross margins caused by shrunken average selling prices affected the company's bottom line. On a brighter note, lower operating expenses and tax rates help offset some of the company's losses.
"We started the quarter exceptionally strong, but ended the month of December on a soft note as a result of some very challenging weather conditions in our Northern regions," said Paul Isabella, president and CEO of the company
Despite the slight decline in net income, cash flow from operations increased to $54.2 million, up from last quarter's $47.3 million.
"We believe market pricing will improve in 2014 as demand increases as we exit the winter months, and we intend to continue to leverage our operating expenses as we grow our revenue base," says Isabella.