Beacon reported a record net income and adjusted EBITDA during the company’s fiscal fourth quarter, though net sales during the quarter slipped slightly. For the full fiscal year, the company’s net loss widened and net sales decreased relative to the 2019 fiscal year, according to Beacon’s fourth quarter earnings report.
Roofing and building products distributor Beacon reported fourth quarter sales decreased 0.6% on a year-over-year (YOY) basis to $2.02 billion. Beacon said the sales results reflect positive contributions from residential demand and from states less impacted by the coronavirus (COVID-19) pandemic, offset by softer demand in non-residential categories and states more impacted by COVID-19. Residential roofing product sales increased 6.2% YOY in the fourth quarter, while non-residential roofing product sales decreased 11.7% YOY and complementary product sales decreased 1.5% compared to the prior year’s fiscal fourth quarter.
For the full 2020 fiscal year, net sales decreased 2.3% compared to the 2019 fiscal year. Residential roofing product sales increased 0.6% YOY during the fiscal year, while non-residential roofing sales and complementary product sales decreased 3.4% and 5.3% YOY, respectively.
“Strong execution by our team and a favorable residential backdrop drove record fourth quarter adjusted EBITDA,” Julian Francis, Beacon’s president and CEO, said in a prepared statement. “Mid-single digit growth in residential roofing helped offset softness in the non-residential product categories stemming from the continuing economic impact of COVID.”
Profits increased significantly during the fourth quarter and Beacon posted a record net income of $71.9 million, compared to a net income of $27.4 million in the fourth quarter of 2019. Beacon said fourth quarter results were driven primarily by higher gross margins, reduced non-operating expenses, and the impact of operating cost controls in the quarter. Positive impacts were partially offset by sales declines within non-residential end markets.
The company’s gross margin improved 120 basis points from the previous year’s fourth quarter to 25.5%, reflecting an improved price-cost spread, according to Beacon.
For the full fiscal year, Beacon’s net loss widened to $80.9 million, compared to a net loss of $10.6 million in 2019. Gross margin for the fiscal year increased 10 basis points to 24.5%.
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.
