Beacon points to record sales and EPS in Q3
Beacon Roofing Supply, Inc. managed to score a couple record wins in the third quarter -- namely, its total sales and its EPS.
“Record sales and EPS highlighted our solid third quarter results," said president and CEO Paul Isabella. "Existing residential roofing sales produced a thirteenth consecutive quarter of year-to-year gains, exhibiting great consistency. Our complementary products business posted strong 6.3% existing market growth, reflecting the healthy residential market and our focus on expanding complementary product offerings across our entire footprint. Overall existing market sales growth was encouraging when viewed against the significant rain disruptions in the Eastern U.S., consecutive mild winters lessening demand across Northern markets, and the challenging comparison to last year’s Q3.
Net sales for the quarter ended June 30 were $1.21 billion, an increase of 5.3% over last year. . Residential roofing product sales increased 8.3%, non-residential roofing product sales declined 4.7%, and complementary product sales increased 15.7% over the prior year.
Third quarter EPS of $0.73 was up from $0.68 in the prior-year third quarter, and net income was up from $41.1 million to $44.7 million.
"Despite the demand pressures, gross margins improved meaningfully on a sequential basis and remained solid in the quarter, which is encouraging for Q4," added Isabella. "We have been pleased to see our pricing show increased signs of stabilization, which is on target with our previous expectations. Our operating cost leverage highlights continued focus on tight expense control, even as we invest in key initiatives across the company. As I look ahead to Q4, I believe that Beacon is well positioned for a strong fourth quarter and delivery of another year of great performance and earnings for our shareholders.”
Other things of note for Beacon last quarter: a total of five acquisition completions, totaling 23 branches. Beacon also opened 4 greenfield locations this fiscal year.