After daily sales were significantly disrupted in April, Beacon reported its May 2020 consolidated daily sales “improved significantly” while still remaining low compared to 2019. Daily sales decreased approximately 20% year-over-year (YOY) in April at the distributor while daily sales decreased in low-single digits YOY in May, according to a business update provided by the company.
Beacon said its average daily sales in May improved sequentially each week, aided by local economies reopening across the United States. The company said that as economies reopen it is beginning “to experience a return to more normal seasonality.”
“While the health and safety during this unprecedented pandemic remains our top priority, the Beacon team has remained intensely focused upon operational performance and financial strength amidst the market uncertainty from COVID-19,” Julian Francis, president and CEO of Beacon, said in a prepared statement. “I am particularly pleased with the improved in daily sales we experienced in May versus April’s virus induced trough.”
The distributor produced low-single digit YOY daily sales improvements in May in geographies that have seen less restrictions throughout the pandemic. In areas most heavily impacted by the virus, Beacon’s daily sales in May improved materially on a sequential basis as states began to loosen restrictions. In the 10 jurisdictions where Beacon’s business was most impacted, May’s daily sales finished down approximately 11% compared to the roughly 45% YOY decline in April.
“Even in the metropolitan areas still limiting construction activity, we have seen significant improvement as economies begin to reopen,” Francis said. “The speed and decisiveness of our cost and liquidity actions over the past three months gives me great confidence in our ability to emerge from COVID-19 a stronger company.”
Beacon said its quarter-to-date performance has exceeded expectations thus far and is benefiting from a “heightened focus” on generating operating leverage as sales return. The company reported its cash position at the end of May improved “meaningfully” since the end of the fiscal second quarter, which ended March 31, 2020.
Herndon, Va.-based Beacon distributes roofing materials and complementary building products. The company operates over 500 branches throughout all 50 U.S. states and six Canadian provinces. The distributor was the second largest company on the 2020 ProSales 100 list.
