Beacon Roofing Supply, the third-largest company on the 2014 ProSales 100 list, today reported a net income of $24.2 million in a three-month period that ended on Sept. 30. That total net income represents a drop from the company's Q4 2013 net income of $27.4 million. Despite the drift in income, the company's net sales rose $726.5 million, up 6.3% from its three-month 2013 net sales of $683.6 million.
Compared with the same period in 2013, residential roofing product sales increased 5.1% to $352.4 million, and non-residential roofing product sales increased 4.9% to $270.9 million. Complementary product sales, which totaled $103.2 million, also increased 14.5% over the prior year.
"Again this quarter we were able to demonstrate our focus on driving top line revenue growth with a 6.3% increase in sales," said
The company, based in Herndon, Va., attributes two thirds of that growth was due to the success of 26 new greenfield locations it opened in 2014, and its three acquisitions this year—All Weather Products, Applicators Sales and Service, and Wholesale Roofing Supply.
"We continue to experience pressure on our gross margins which are down slightly from last quarter and from last year," Isabella says. "The soft residential market, coupled with heightened competition, has continued to put pressure on our market pricing. We continue to invest heavily to grow the business through the opening of the new greenfield branches. As a result, we are well positioned to continue to see sales growth. Recognizing the challenges we face from gross margin pressure, in 2015 we will continue our focus on driving more leverage through our operating cost structure and work to lower our overall operating costs as a percentage of sales."