Driven by higher demand and successful implementation of price increases, Beacon delivered record fourth quarter and full year net sales. The distributor also posted record levels of net income and adjusted EBITDA for both the fiscal fourth quarter and full fiscal year.
“In 2022, our 7,000+ team members set financial records by executing on our Ambition 2025 strategy to fully unlock Beacon’s potential,” president and CEO Julian Francis said in a prepared statement. “We ramped up growth investments, with 22 acquired branches during the year including our fourth quarter acquisition of coastal, which substantially expanded our waterproofing and restoration offerings to our customers.”
In the fourth quarter, net sales increased 12.2% year-over-year to $1.97 billion. Weighted-average swelling price increased approximately 17-18% and estimated volumes decreased approximately 6-7%. Residential roofing product sales increased 5.1% year-over-year, non-residential roofing product sales increased 25.2%, and complementary product sales increased 14.0%.
For the full fiscal year, net sales increased 23.6% compared to the prior year to $8.43 billion. Net sales increased by at least 17% across all three lines of business, driven largely by the successful implementation of price increases and higher demand, according to Beacon.
Gross margin decreased during the fiscal fourth quarter 10 basis points to 26.2% as the higher average selling prices were offset by higher product costs. Beacon reported a net income of $73.3 million in the fourth quarter, compared to $68.1 million in the prior year. Adjusted EBITDA increased to $178.5 million in the quarter.
For the full fiscal year, gross margin decreased 20 basis points to 26.5%, as price-cost improvement was offset by a higher non-residential product sales mix. Net income for 2022 increased from $241.9 million to $458.4 million and adjusted EBITDA increased from $685.9 million to $910.0 million.
“We also accelerated greenfield investments, adding 16 locations during the year in key markets creating capacity and expanding our branch footprint,” Francis said. “I am pleased to report that we finished the year with strong cash generation and enter 2023 with ample capacity to deploy capital to both growth initiatives and shareholder returns. Looking forward, I am confident that we have the right leadership and values-driven culture to deliver on our multi-year strategic roadmap to help our customers build more.”