Beacon reported strong financial results during the company’s fiscal first quarter, which included record first quarter net sales, net income, and adjusted EBITDA.
During the first quarter, net sales increased 28.0% compared to the first quarter of the 2021 to $1.69 billion. Net sales increased across all three lines of Beacon’s business compared to the prior-year period, largely driven by the successful implementation of price increases, according to the company. Higher demand, particularly within non-residential roofing products, also contributed to sales growth in the quarter. Beacon said weighted-average selling price increased approximately 23-24% and estimated volumes increased approximately 3-4% on a year-over-year (YOY) basis.
Residential roofing product sales increased 21.8% on a YOY basis in the first quarter, non-residential roofing product sales increased 47.9%, and complementary product sales increased 20.3% YOY.
“Our team generated record first quarter results in an inflationary and rapidly changing environment,” Julian Francis, Beacon’s president and CEO, said in a news release. “Strong demand for our products, disciplined execution, and productivity gains led to impressive top-line and bottom-line performance. This quarter also marked the beginning of our journey to achieve our Ambition 2025 financial targets detailed at our investor day in February.”
Beacon’s gross margin improved to 26.1% in the first quarter, compared to 25.3% in the prior-year period. The company said the increase reflected pricing execution that drove price-cost improvement and was partially offset by an unfavorable sales mix. The company reported an increase in operating expense in 2022 due to increases in payroll and benefit costs, general and administrative expenses, and selling costs.
Beacon reported a net income of $55.8 million in the fiscal first quarter, compared to a net loss of $10.5 million in the prior year period. Adjusted EBTIDA in the quarter was $139.5, compared to $74.4 million in the first quarter of 2021. Beacon said improvements in first quarter results compared to the prior year period were largely driven by higher net sales and gross margins, partially offset by higher operating expenses.
“During the first quarter, we invested in capacity to drive growth, enhance customer service, adn expand our footprint in key markets,” Francis said. “In addition, we executed an accelerated stock repurchase program to demonstrate both our commitment to delivering value to stockholders and our confidence in our strategic plan.”