Losses at Beacon widen in Q2
Beacon reported second quarter net sales increased 2.1% to $1.46 billion from sales of $1.43 billion in the second quarter 2019.
The increase was driven by sales initiatives around contractor conversions, national account sales, and the Herndon, Va.-based company’s digital platform.
Residential roofing product sales decreased 1.3% during the quarter while non-residential roofing product sales increased 12.6%, and complementary product sales decreased 0.4% compared to the prior year.
Sales for the first half of 2020 decreased 0.5% to $3.13 billion, from $3.15 billion in the first six months of 2019. The sales decline was mainly influenced by decreased hurricane-related demand compared to the prior year.
In the first six months, residential roofing product sales decreased 2.3%, non-residential roofing product sales increased 6%, and complementary product sales decreased 2.8% compared to the prior year.
Beacon’s second quarter losses also widened as the company posted net loss of $122.6 million for the period compared to a second quarter 2019 net loss of $68.1 million.
For the first half of 2020, Beacon posted a net loss of $146.1 million as compared to a net loss of $69 million for the first six months of 2019.
Beacon said that its six-month results were negatively impacted by the second quarter write-off of trade names in connection with the company’s rebranding initiative. Beacon provided the same explanation for its larger loss in the second quarter.
Beacon distributes residential and commercial building products in North America, operating more than 500 branches throughout all 50 states and 6 provinces in Canada.
###
The Bottom Line: Second quarter sales rise 2.1% lead by non-residential roofing products but Beacon’s net loss deepens to $122.6 million for the quarter.
What the CEO said: “Consistent with our pre-release, we produced record second quarter net sales and adjusted EBITDA,” said Julian Francis, Beacon’s president and CEO. “Q2 again demonstrates significant positive progress toward our goals, highlighted by nearly 5% sales growth the first 2 ½ months, year-to-year gross margin stabilization and positive adjusted operating leverage.”
“April sales declined with considerable divergence in state-by-state performance, as certain states have been significantly impacted by state and local government restrictions. With that said, we are well prepared for a range of demand scenarios through a strong operating model, financial flexibility, and appropriate cost actions. Amid this period of uncertainty, we are finding opportunities to improve productivity and seeing our industry-leading digital platform and enhanced levels of customer service increasingly becoming differentiators for customers.”
Company info: Beacon’s full second quarter 2020 report can be read here.
The increase was driven by sales initiatives around contractor conversions, national account sales, and the Herndon, Va.-based company’s digital platform.
Residential roofing product sales decreased 1.3% during the quarter while non-residential roofing product sales increased 12.6%, and complementary product sales decreased 0.4% compared to the prior year.
Sales for the first half of 2020 decreased 0.5% to $3.13 billion, from $3.15 billion in the first six months of 2019. The sales decline was mainly influenced by decreased hurricane-related demand compared to the prior year.In the first six months, residential roofing product sales decreased 2.3%, non-residential roofing product sales increased 6%, and complementary product sales decreased 2.8% compared to the prior year.
Beacon’s second quarter losses also widened as the company posted net loss of $122.6 million for the period compared to a second quarter 2019 net loss of $68.1 million.
For the first half of 2020, Beacon posted a net loss of $146.1 million as compared to a net loss of $69 million for the first six months of 2019.
Beacon said that its six-month results were negatively impacted by the second quarter write-off of trade names in connection with the company’s rebranding initiative. Beacon provided the same explanation for its larger loss in the second quarter.
Beacon distributes residential and commercial building products in North America, operating more than 500 branches throughout all 50 states and 6 provinces in Canada.
###
The Bottom Line: Second quarter sales rise 2.1% lead by non-residential roofing products but Beacon’s net loss deepens to $122.6 million for the quarter.
What the CEO said: “Consistent with our pre-release, we produced record second quarter net sales and adjusted EBITDA,” said Julian Francis, Beacon’s president and CEO. “Q2 again demonstrates significant positive progress toward our goals, highlighted by nearly 5% sales growth the first 2 ½ months, year-to-year gross margin stabilization and positive adjusted operating leverage.”
“April sales declined with considerable divergence in state-by-state performance, as certain states have been significantly impacted by state and local government restrictions. With that said, we are well prepared for a range of demand scenarios through a strong operating model, financial flexibility, and appropriate cost actions. Amid this period of uncertainty, we are finding opportunities to improve productivity and seeing our industry-leading digital platform and enhanced levels of customer service increasingly becoming differentiators for customers.”
Company info: Beacon’s full second quarter 2020 report can be read here.