Weather dampens Beacon Roofing Q3 results
Beacon Roofing Supply reported third quarter 2019 net sales were nearly flat, slipping just 0.5% to $1.92 billion in 2019 from $1.93 billion in the third quarter of 2018.
Residential roofing product sales increased 2.9% for the quarter while non-residential roofing product sales decreased 2.4% and complementary product sales decreased 3.6% over the prior year.
Sales in existing markets fell 1.1% during the period, due to higher rainfall across the country having an impact on installations, Beacon said.
According to CEO Paul Isabella, the quarter saw 25% to 30% more rain days than the prior third quarter. This translated into Beacon taking an $85 million hit to sales.
Beacon also reported a third quarter net income of $31 million, falling 37% from a net income of $49.4 million for the same period in 2018.
Based in Herndon, Va., Beacon Roofing Supply operates more than 500 branches.
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The bottom line: Bad weather hits sales the third quarter while profits slip 37% to $31 million.
What the CEO said: “Although our fiscal third quarter results fell short of expectations, there were several positives supporting optimism for the fourth quarter and fiscal year 2020. Most notably, we saw a 3% organic sales increase within our residential product line, our 2nd consecutive quarter of positive growth,” said Paul Isabella, president and CEO of Beacon Roofing Supply. In addition, we reduced our debt and our digital platform performance was exceptional; Beacon Pro+ is unquestionably continuing to evolve as a differentiator in the marketplace. July results also were favorable on a daily sales basis, suggesting underlying demand remains healthy.”
Company info: Beacon Roofing Supply’s full third quarter 2019 report can be read here. CEO Paul Isabella will step down from his position and will be succeeded by Julian Francis, effective Sept. 1.
Residential roofing product sales increased 2.9% for the quarter while non-residential roofing product sales decreased 2.4% and complementary product sales decreased 3.6% over the prior year.
Sales in existing markets fell 1.1% during the period, due to higher rainfall across the country having an impact on installations, Beacon said.
According to CEO Paul Isabella, the quarter saw 25% to 30% more rain days than the prior third quarter. This translated into Beacon taking an $85 million hit to sales.
Beacon also reported a third quarter net income of $31 million, falling 37% from a net income of $49.4 million for the same period in 2018.
Based in Herndon, Va., Beacon Roofing Supply operates more than 500 branches.
###
The bottom line: Bad weather hits sales the third quarter while profits slip 37% to $31 million.
What the CEO said: “Although our fiscal third quarter results fell short of expectations, there were several positives supporting optimism for the fourth quarter and fiscal year 2020. Most notably, we saw a 3% organic sales increase within our residential product line, our 2nd consecutive quarter of positive growth,” said Paul Isabella, president and CEO of Beacon Roofing Supply. In addition, we reduced our debt and our digital platform performance was exceptional; Beacon Pro+ is unquestionably continuing to evolve as a differentiator in the marketplace. July results also were favorable on a daily sales basis, suggesting underlying demand remains healthy.”
Company info: Beacon Roofing Supply’s full third quarter 2019 report can be read here. CEO Paul Isabella will step down from his position and will be succeeded by Julian Francis, effective Sept. 1.