Beacon Roofing Supply reflects on a 'landmark year'

Beacon Roofing Supply had results to show in the fourth quarter and fiscal 2016 year, and much of this owed to its acquisition of Roofing Supply Group in October 2015.

“2016 was a landmark year for Beacon," said president and CEO Paul Isabella. "We capitalized on the momentum of our transformational acquisition of RSG on the first day of the year to close on seven additional acquisitions and deliver record revenue and strong earnings for our shareholders. Gross margins were excellent, and we achieved growth in residential, commercial and complementary products, with residential roofing sales growth leading the way and remaining particularly strong through the end of the year."

Net sales for the quarter ended Sept. 30 were up 49.1% to a fourth-quarter record of $1.17 billion, compared to $787.7 million in 2015.

Residential roofing product sales increased 63.0%, non-residential roofing product sales increased 29.7%, and complementary product sales increased 47.8% over the prior year.

Meanwhile, net income for the quarter was $47.4 million, up from $30.8 million in 2015.

For the full fiscal year, total sales were up 64.1% to a record $4.13 billion, compared to $2.52 billion last year. Net income was $89.9 million, compared to $62.3 million in 2015.

"We are ahead on our attainment of the RSG synergies, and I am pleased that existing market operating expenses as a percentage of revenue decreased this year, demonstrating that our team is making great progress in achieving operating leverage," added Isabella. "Our balance sheet has improved steadily, and we remain focused on reaching our goal of a 2.0x debt leverage ratio, while not sacrificing growth opportunities through additional strategic acquisitions. In 2017, we will continue to focus on revenue growth, both organically and through acquisitions and new branch openings, while improving gross margins and operating expense leverage. I am confident in our ability to build on our successful 2016 and continue to deliver outstanding performance and returns for our shareholders.”