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."
Central Garden & Pet loses steam in Q3
Central Garden & Pet took a few steps back in the third quarter, posting an 11% sales decrease and a year-over-year decline in income.
Net sales for the three months ended June 28 were $438.0 million, down from $494.1 million in the third quarter of 2013. The decline took place in both the Pet and Garden segments, and it was exacerbated by a $16.9 million charge related to the discontinuance of two garden products.
Net income came in at $4.7 million, down from $13.7 million in the year-ago period. This translates to $0.09 per fully diluted share, down from $0.28 last year.
President and CEO John Ranelli commented on the company’s decision to discontinue the products, citing weak sales that discouraged retailers from stocking the items.
“The right decision was to cut our losses, discontinue the products and move forward," he said. "We are continuing our aggressive efforts to improve customer service, address issues that have impacted financial performance and position the company to create value for shareholders.”
Fortune Brands acquires SentrySafe
Fortune Brands Home & Security purchased SentrySafe, a North American brand of fire-, water- and theft-resistant security safes, files, chests and other protective containers for residential and light commercial markets.
The price tag was $117.5 million.
The deal brings new avenues of growth to Fortune’s Master Lock division. “SentrySafe’s strength in complementary product categories enable The Master Lock Company to leverage strong iconic brands domestically and internationally,” said Terry Horan, Master Lock president, in a prepared statement.
Founded in 1930, Sentry Group pioneered the fire- and water-resistant protective security container category in mass market, big-box retailers through its innovative products, industry-leading go-to-market strategies and world-class global supply chain.
Lincoln International acted as the exclusive sell-side adviser to SentrySafe.
Jim Brush, CEO at SentrySafe, commented: “Fortune Brands provides us with a tremendous growth platform and is the right strategic partner for SentrySafe moving forward.”