Beacon reported record financial performance in the 2021 fiscal year, driven by strong net sales, net income, and adjusted EBITDA, according to the distributor’s fourth quarter earnings report.
Beacon’s quarterly net sales for the three month period ended September 30 increased 6.9% on a year-over-year (YOY) basis to $1.88 billion, a quarterly record for the company. Quarterly residential roofing product sales increased 3.1% YOY, complementary product sales increased 17.0% YOY, and non-residential roofing product sales increased 7.0% compared to the prior year fourth quarter.
For the full fiscal year, net sales increased 12.3% compared to the prior year, driven by strong growth in both the residential and complementary product sectors.
Quarterly gross margin improved 200 basis points in the fiscal fourth quarter to 27.1%, reflecting pricing execution that drove price-cost improvement, according to Beacon. The company said its quarterly operating expenses increased due to higher payroll and benefits expenses which reflected temporary cost actions taken in responses to the COVID-19 pandemic.
For the full fiscal year, gross margin improved to 26.5% in 2021 from 24.0% in the prior year. Operating expenses decreased for the full fiscal year, primarily due to the write-off of certain trade names in connection with the company’s rebranding efforts as well as productivity efforts and improved cost structure.
“In fiscal 2021, we demonstrated the strength of our platform by generating record top line and bottom line results, building a strong foundation for our future ambitions,” Julian Francis, Beacon president and CEO, said in a prepared statement. “Focused market and price execution also drove the highest fourth quarter sales and adjusted EBITDA in our history. Our team continued to deliver high-value solutions to our customers’ critical building material needs in a supply-challenged environment.”
Beacon’s fourth quarter net income increased by $36.3 million to $104.5 million and adjusted EBITDA increased $39.1 million to $208.1 million in the fourth quarter. For the full fiscal year, the company generated a net income of $221.2 million, compared to a loss of $81.3 million in the 2020 fiscal year. The distributor’s adjusted EBITDA increased from $398.6 million in 2020 to $654.7 million in 2021.
“The progress on our strategic initiatives and operational improvements has been transformational throughout fiscal 2021,” Francis said. “We have focused our business on our core exteriors customer and strengthened our balance sheet. Looking forward, we have the right leadership team to execute on a multi-year runway of market opportunities that will create value for all our stakeholders.”
