Net sales increased 10.1% to $1.3 billion in Beacon’s fiscal second quarter compared to the second quarter from last year. Positive sales growth in the quarter reflects growth across the distributor’s residential roofing and complementary products category as well as the successful implementation of price increases. Growth in sales was partially offset by soft demand for non-residential products, according to Beacon’s quarterly earnings report.
Residential roofing product sales increased 18.7% on a year-over-year (YOY) basis for Beacon in its fiscal second quarter, which spanned a three month period ending on March 31. Complementary product sales increased 9.4% YOY in the quarter while non-residential roofing product sales decreased 4.1% on a YOY basis.
“Continued execution by our team resulted in [an] impressive second quarter performance,” president and CEO Julian Francis said in a news release. “Strong residential demand and effective sales and pricing performance drove record second quarter net sales.”
Beacon reported its gross margin increased from 22.6% in the prior-year period to 25.3% during the company’s fiscal second quarter, reflecting pricing execution that drove price-cost improvement.
The distributor posted a net loss from continuing operations of $10.5 million in the fiscal second quarter, compared to a loss of $121.3 million during the same quarter in 2020. Beacon reported an adjusted EBITDA of $74.4 million an increase of over $50 million compared to the fiscal second quarter of 2020.
The company said comparative improvements in its second quarter results were driven by restructuring costs of rebranding in the prior year period as well as increased net sales, higher gross margins, and operating leverage.
“Our quarterly results, coupled with the successful divestiture of our interior products business, have allowed us to significantly reduce leverage, strengthen our balance sheet, and sharpen our focus on growth and profitability of our exteriors business,” Francis said.
Herndon, Va.-based Beacon distributes roofing materials and complementary building products and operates a network of over 400 branches across all 50 states and six Canadian provinces.
