Beacon Roofing Supply announced today its net income nearly tripled in its fiscal first quarter ended Dec. 31 to $20.4 million from $7.1 million a year earlier on record first-quarter sales of $1 billion, a 2.6% rise.
Sales of residential roofing products rose 7.2% from the year before while revenue from sales of non-residential products slipped 10.4%. Gross margin swelled to 25%, up 1.17 percentage points.
“More normalized weather conditions have made for challenging sales comparisons to last year’s mild fall and winter, but should provide benefit in the latter half of the year,” President and CEO Paul Isabella said in a press release. “We continue deployment of our growth strategy in 2017 including integrating the three great acquisitions made in December and January that added nine branches, including seven in the Pacific Northwest. As we move forward this year, we will maintain our focus on sales growth, gross margin stability and improved operating leverage.”
Beacon now has 373 branches in 47 U.S. states and six Canadian provinces.
First quarter Adjusted EBITDA grew 9.0% to $80.0 million from $73.4 million in the prior year.
Here’s a slide from Beacon’s presentation to investors showing more details on its performance:
Beacon also reported that its 2015 acquisition of Roofing Supply Group produced roughly $40 million in synergies, or about $10 million more than it had targeted for the fiscal year that ended last Sept. 30. It’s goal for the current fiscal year is $55 million worth of synergies.
