A Beacon of inspiration

Against a backdrop of lower residential and commercial construction, and few hurricane-induced rebuilding projects, Beacon Roofing Supply posted 2009 net income of $52.4 million, up 30.1% from $40.3 million in fiscal year 2008.

Annual sales declined 2.8% to $1.73 billion for the company's network of 172 branches in 37 states and three provinces in Eastern Canada.

During the year, residential roofing sales increased 18.3% while non-residential roofing and complementary product sales declined 17.1% and 21.6%, respectively.

“We are very pleased to deliver record annual earnings for our shareholders in a still very difficult economic climate," said Robert Buck, chairman and CEO of the Peabody, Mass.-based company. "Our focus on cost controls, exceptional customer service and working capital management during 2009 has positioned us well to continue to deliver solid results, grow our company, and increase shareholder value in 2010 even amidst the continuing softness in new residential and commercial construction.”

The tally from the fourth quarter, however, was less positive -- though still in the black. The company's fourth quarter sales declined 14.0% to $487 million, down from $567.2 million in 2008. Net income for the three months was $19 million, down from $24.9 million in the same quarter last year.

The fourth quarter presented a difficult comparison for the supplier, as last year's fourth quarter brought strong re-roofing activity in storm-affected areas of the country, plus significant manufacturer price increases.

Beacon also operated six fewer branches for most of 2009.