Beacon Roofing Supply posted second quarter net sales of $1.43 billion, a marginal increase of 0.20% year over year (YOY). The dealer also posted a net loss of $74.1 million in the second quarter, slightly larger than the net loss of $72.7 million from the second quarter a year ago. In March, the Herndon, Va-based dealer projected a net loss between $69 million and $76 million, largely because of unfavorable weather conditions.
The dealer reported residential roofing product sales increased 2.9% YOY, complimentary product sales increase 1.1% YOY, and non-residential roofing product sales declined 5.7% YOY. Existing market net sales were negatively impacted by weather-related events, but Beacon reported sales by business day increased 1.2% YOY.
“We produced positive organic sales growth, highlighted by a daily sales increase of nearly 5% in residential roofing, despite the harsh weather adversely impacting quarterly demand,” CEO and president Paul Isabella said in a public statement. “In an effort to help mitigate the challenging weather patterns, we were able to implement more aggressive late-quarter cost controls to match the unusually soft seasonal environment.”
Isabella indicated that existing market sales accelerated in the last weeks of March in the absence of winter weather in several markets.
Beacon recorded a second quarter adjusted EBITDA—earnings before interest, taxes, depreciation, and amortization—of $27.4 million, a $4.3 million decline year over year.
Below the operating line, interest expense rose to $40.4 million. The company’s balance sheet lists goodwill as $2.5 billion of its $6.3 billion in total assets. On the liabilities side, long-term debt totals $2.5 billion.
Beacon Roofing Supply was the 3rd largest company on the most recent ProSales 100 list. It operates more than 500 branches throughout all 50 U.S. states and six Canadian provinces.
