Beacon Roofing posts record sales for quarter, year
Beacon Roofing Supply, the Peabody, Mass., distributor of roofing and other housing exterior materials, posted net sales of $575.6 million for its fourth fiscal quarter, a 19.3% rise over sales of $482.6 million in the same quarter last year.
Existing market (organic) sales, which exclude branches acquired after the beginning of last year’s fourth quarter, increased 15.6%. In existing markets, residential and non-residential roofing product sales increased 25.7% and 10.8%, respectively, while complementary product sales declined only 1.0%. Fourth-quarter roofing sales this year were favorably impacted by higher average selling prices and by increased business in several markets that experienced significant spring hail storms.
Net income for the fourth quarter, which ended Sept. 30, was $31.3 million, which included a one-time income tax benefit of $5.1 million. This compares with $16.9 million in 2010, an improvement of 85.3%. This year’s fourth-quarter net income, even prior to the tax benefit, represented a record for any prior quarter, according to the company.
Year-end results showed a 12.9% increase in sales to a record $1.82 billion in 2011 from $1.61 billion in 2010. Existing market sales increased 9.3%. The annual existing market results exclude branches acquired during 2011 and 2010. In existing markets, residential and non-residential roofing product sales were up strongly at 8.8% and 12.8%, respectively, while complementary product sales increased 1.7%. Annual roofing sales this year were also impacted favorably by higher selling prices and repair work demand caused by spring hail storms.
Net income was $59.2 million compared with $34.5 million in 2010, an increase of 71.5%.
Paul Isabella, Beacon’s president and CEO, noted in a prepared statement that the company had set records for both its quarter and fiscal-year results. “Most of our regions achieved double-digit sales percentage increases in the fourth quarter and substantially exceeded our fourth-quarter and full-year sales and income expectations,” Isabella said. “Once again both our residential and non-residential product sales showed double-digit percentage increases for the quarter. Our complementary product sales were down only 1%. Our roofing businesses have benefited both from a pick-up in volume, including some storm business, and from industry-wide price increases mostly during the second half of the year. Our commercial business has remained consistently strong throughout this year. We were able to use our strong financial position to increase inventories ahead of some vendor price increases, which enabled us to achieve gross margins that were significantly above last year’s rates.
“We continued to exercise prudent expense controls to further improve our operating margin and our cash holdings have increased since last year even after this year’s third-quarter purchase of Enercon Products. We continue to aggressively seek quality companies that fit our target acquisition profile, such as Denver-based Fowler & Peth acquired in the first quarter of fiscal 2012. We believe there are many favorable long-term growth factors in our industry, so we expect to continue expanding our geographic reach in 2012."
ProBuild names new exec VP
ProBuild Holdings has named Don Riley, the former CIO of Mohawk, as its new executive VP supply chain and technology. In this role, Riley will be responsible for integrating ProBuild’s supply chain, information technology and manufacturing organizations, including developing strategies and programs to improve the company’s overall operational effectiveness, grow market share and maximize profitability.
Reporting to Riley will be Paul Dodge, senior VP supply chain; Lonnie Bernardoni, senior VP manufacturing and business process improvement lead; and John Huber, chief information officer.
Riley’s duties will also include the planning and implementation of enterprise IT systems in support of business operations in order to improve cost-effectiveness and service quality. Additionally, Riley will direct and manage ProBuild’s technology infrastructure and environment, including the design and development of business-focused application solutions to support ProBuild’s business operations.
Riley comes to ProBuild from Mohawk Industries, a global producer and distributor of floor coverings. At Mohawk, Don served as CIO and senior VP logistics, where he was responsible for Mohawk’s global information systems and strategies, along with the company’s North American logistics functions.
“Don brings significant experience to ProBuild, having led the successful implementation and extension of enterprise systems in previous roles,” said Fred Marino, president and CEO of ProBuild. “A critical element of our vision is the successful integration of technology into all areas of our business. We believe that technology will transform the home-building industry, and it is our goal to take a significant leadership role in that transformation. We look forward to the expertise and leadership Don brings to help us achieve our vision.”
Headquartered in Denver, ProBuild is the nation’s largest LBM chain, with more than 435 locations serving 45 U.S. states.
Toll Brothers enters Seattle market
Luxury home builder Toll Brothers has announced the acquisition of CamWest Development, one of the largest privately held home-building companies in the Pacific Northwest. The purchase price, which was not disclosed, was paid in cash.
This acquisition expands Toll Brothers territory into the Seattle market. Douglas Yearley Jr., Toll Brothers’ CEO, described CamWest as, “one of the premier luxury home builders in the region with a long history of delivering exceptional quality and value to its homeowners. Seattle is a high barrier-to-entry home-building market with a robust employment base and a concentration of affluence.”
CamWest develops a variety of home types, including luxury single-family homes, condominiums and town homes, throughout the Seattle metropolitan area, primarily in King and Snohomish Counties. The firm has been recognized by the home-building industry through various awards for innovation in housing, green building practices and excellence in marketing. Its homes typically sell from the mid-$300,000s to $700,000s, with some homes selling for more than $1 million. The average price of its homes currently in backlog is approximately $500,000.
The company was established in 1989 by Eric Campbell and has delivered more than 2,800 homes in the Seattle market since then. For calendar year 2011, CamWest anticipates delivering approximately 180 homes and producing revenues of approximately $90 million.
In addition to the existing backlog, the assets acquired by Toll Brothers include approximately 1,300 lots owned and 200 lots controlled in King and Snohomish Counties. The acquisition will increase Toll Brothers’ selling communities count by approximately 15 communities. Toll Brothers expects the acquisition to be accretive in FY 2012.