Beacon points to 'record third-quarter sales'

Beacon Roofing Supply reported what it referred to as "record third-quarter sales," which were up 5.8% year-over-year.

Net sales for the three months ended June 30, 2014, totaled $663.4 million, compared with $627.2 million in the same period last year.

Net income came in at $26.8 million, down slightly from $27.2 million year-over-year. The company's bottom line was negatively impacted by lower gross margins from reduced selling prices.

The third quarter diluted EPS was also down slightly -- weighing in at $0.54 (compared to $0.55 in 2013).

President and CEO Paul Isabella commented on Beacon's progress during the quarter, acknowledging a weak gross margin and challenging residential market overall that's been driving prices down. However, the outlook is optimistic, especially with current levels of seasonal demand. 

“We delivered a solid 5.8% growth for the quarter, even in the face of continued soft residential roofing demand," said president and CEO Paul Isabella. "Our diversified product offering allowed us to take advantage of the strength of the current commercial roofing market. In addition, our investment in new branch openings continues to fuel our growth. Approximately half of our growth in the quarter came from new branch openings, and we expect these to add even more volume in the future."