Beacon Roofing Supply rose into the black during its fiscal second quarter with as net income of $3.1 million compared to a net loss of $6.2 million during the same period a year ago, the company announced today. Net sales jumped 33% to $395.2 million for the period ended March 31.
The higher net income was the result of the sales increase as well as a higher gross margin rate and was partially offset by a rise in operating expenses and a higher income tax provision.
“The positive momentum from our first quarter continued into our second quarter and we finished with record results for the first half of fiscal 2012,” said Paul Isabella, Beacon Roofing Supply’s president and CEO.
The Peabody, Mass.-based roofing material supplier reported income from operations of $9.6 million, a huge improvement over the $6.8 million loss posted a year ago. The company also saw gross profit, which accounted for almost 24% of net sales, increase 44% to $93.7 million.
The cost of products sold during the second quarter rose 20% to $301.4 million, which was 76% of sales during the second quarter compared to 78% of sales a year ago.
Adjusted EBITDA, which the company defines as net income (loss) plus interest expense (net of interest income), income taxes, depreciation and amortization, adjustment of liability for contingent consideration, and stock-based compensation, was $17.7 million, a vast improvement over the $874,000 adjusted EBITDA posted a year ago.
The residential roofing products segment revealed a 54% increase in sales to $200.7 million, as sales for non-residential roofing products grew 20% to $140.7 million. Beacon Roofing Supply’s complementary building products unit reported a 10% improvement in sales to $53.8 million.
The company said segment sales numbers were boosted by increased re-roofing and remodeling activities, improved weather conditions, and strong business in several markets that experienced significant storms over the past year.
For the end of the first half of its fiscal year, Beacon Roofing Supply reported net income of $22.3 million, a huge increase over the $3.9 million in net income reported at the end of 2011’s first half. Net sales for the half also rose 26% to $885 million.
“The much warmer winter conditions this year boosted roofing and exterior remodeling activities and seemed to accelerate the recent trend of increased residential re-roofing activities,” said Isabella. “In addition, our roofing businesses continued to benefit from industry-wide price increases, which mostly occurred during the second half of last year.”
Shortly after the quarter ended, the company announced that it had refinanced $515 million in credit facilities, which it said will facilitate growth. Isabella said the new facility should allow the company to accelerate growth and improve financial conditions during the second half of 2012.