Beacon Roofing Supply still on the prowl for acquisitions
Beacon Roofing Supply, one of the nation’s largest distributors of roofing, siding and other exterior building products, reported sales of $560.5 million for its third fiscal quarter, a 3.7% rise over sales of $540.7 million in the same quarter of 2011. Existing-market or same-store sales, which exclude branches acquired after the beginning of last year’s third quarter, declined 1.5%.
This year’s third-quarter sales were primarily impacted by lower non-residential roofing activity and less residential roofing activity in the markets affected by last spring’s hail storms, the company said. Sales results were also affected by the benefit of higher average selling prices.
Net income for the third quarter of 2012, which ended June 30, was $25.4 million, compared with $24.1 million a year ago.
Paul Isabella, the company’s president and CEO, said that most of Beacon’s regions were having “an exceptional year.”
“Our total sales have benefited from the positive impact from acquisitions, while our sales in existing markets for the third quarter fell only 1.5%. Sales in our existing markets were up against a very strong 11.6% increase in last year’s third quarter, when there was substantial roofing activities beginning in June from the spring 2011 hail storms.”
Beacon added two new companies to its roster in July: Structural Materials Co. in Southern California and Contractors Roofing & Supply Co. in St. Louis. “We are confident that we will add other quality companies in the near future that fit our target acquisition profile,” Isabella said. “Although we will be up against tough comparisons again in the fourth quarter, we expect a solid finish to fiscal 2012."
Revenues increase as new orders rise at Beazer
The third-quarter results at Beazer Homes showed a marked improvement in several categories, including new orders, homes closings, revenues and losses.
The Atlanta-based home builder reported revenues of $254.6 million, compared with $172.8 million in second fiscal quarter of 2011.
Total new orders were 1,555 homes, a 28.0% increase from a year ago, and the second-quarter cancellation rates were 24.5%, compared with 24.3% in fiscal 2011. Beazer reported total home closings at 1,109 homes, a 40.2% increase from the same period last year.
The average sales price from home closings was $227.3 thousand, compared with $213.0 thousand in fiscal 2011.
Net loss for Beazer during the second quarter of 2012 was $39.9 million, which including a loss from discontinued operations of $1.8 million, compared with a net loss of $59.1million for fiscal 2011, including loss from discontinued operations of $3.4 million.
“I am very pleased with our third quarter results,” said CEO Allan Merrill. “We generated improvement in new home orders, home closings and backlog, recording our fourth consecutive quarter of year-over-year increases in these metrics. This improvement reflects both the continuing operational benefits of our path-to-profitability strategies and gradually improving conditions in the housing market."
Beacon acquires St. Louis specialty distributor
Beacon Roofing Supply announced Friday that it has acquired Contractors Roofing & Supply Co., a distributor of residential roofing products and related accessories with one location in the St. Louis suburb of O’Fallon, Mo., and annual sales of approximately $14 million.
"The CRS acquisition, combined with the expected opening Monday, Aug. 6, 2012, of a new Roof Depot branch in St. Louis, gives us a solid presence in the very important and active St. Louis market,” said Paul Isabella, Beacon president and CEO. “We are excited to be in St. Louis and look forward to further growth in that market."
Ken Bennett, CRS’s owner who will be leaving to pursue other business interests, said: "I am thrilled that CRS will continue as part of Beacon, which can offer CRS’s customers wider access to roofing and other building products, while maintaining and enhancing the high level of service and value that CRS has provided over the years.” He added that Beacon offers current employees greater opportunities for business growth.
Beacon Roofing Supply is a leading distributor of roofing materials and complementary building products operating 207 branches in 38 states in the United States and across Canada.
In July, Beacon acquired Southern California-based Structural Materials Co.