Beacon Roofing swings to profit
Beacon Roofing Supply, the Peabody, Mass., distributor of roofing and other housing exterior materials, posted net sales of $395.1 million for its second fiscal quarter of 2012, a 33.4% increase over sales of $296.3 million in the same quarter in 2011. Existing market (organic) sales, which exclude branches acquired after the beginning of last year’s second quarter, increased 28.2%.
Net income for the second quarter, which ended March 31, was $3.1 million compared with a net loss of $6.2 million a year ago. The higher net income was due to the higher sales and gross margin rate, partially offset by the impact from higher operating expenses and a higher income tax provision compared to an income tax benefit in 2011.
In a prepared statement, Paul Isabella, the company’s president and CEO, said: "The positive momentum from our first quarter continued into our second quarter, and we finished with record results for the first half of fiscal 2012. Our results for the second quarter and first half significantly exceeded our expectations and most of our regions are on track for a very successful year. Once again, our company-wide residential and non-residential product sales in existing markets both showed double-digit percentage increases for the quarter, while our complementary product sales were up 7%.”
Warm winter conditions boosted roofing and exterior remodeling activities, Isabella said, especially residential re-roofing. “In addition, our roofing businesses continued to benefit from industry-wide price increases, which mostly occurred during the second half of last year,” he added.
With Beacon’s new credit facility and an improved balance sheet, “We are confident that we will add additional quality companies this year that fit our target acquisition profile,” Isabella said.
Deering Lumber acquires two units
Deering Lumber, the Biddeford, Maine-based pro dealer, has purchased two stores from New England Building Materials, according to a report in Wired Weekly, the newsletter of the Northeastern Retail Lumber Association (NRLA). Deering now operates four retail locations.
New England Building Materials filed for Chapter 11 bankruptcy protection and closed its three yards in Massachusetts in February, four months after shuttering yards in Springvale and Windham, Maine, and selling three mid-coast Maine branches to Hammond Lumber. Its remaining locations were a retail outlet in Sanford, along with a sawmill.
At the end of April, the Sanford showroom reopened under the Deering name, while the Springvale location is being remodeled in hopes of reopening in June. New England Building Materials will continue to operate its sawmill and sell products through Deering stores.
Originally called Lavalley Lumber, New England Building Materials started as a lumber mill in 1943 until 2009, when it purchased three Massachusetts yards from Stock Building Supply and became New England Building Materials.
No comments found
Retailers protest wood import restrictions
A representative of the Retail Industry Leaders Association (RILA) testified before a U.S. Congress subcommittee on May 8 about concerns surrounding compliance challenges that have emerged from the 2008 Lacey Act, especially concerning wood imports.
Laurie Everill, regional customer and compliance manager for IKEA-North America, spoke before the House Committee on Natural Resources, Subcommittee on Fisheries, Wildlife Oceans and Insular Affairs. She pointed out that, among other things, the Lacey Act law requires importers to provide to U.S. Customs and the Animal Plant and Health Inspection Service such details as the genus, species and country of harvest for products that include wood materials.
“The current bills in the House — Tennessee Congressman Cooper’s RELIEF Act and Georgia Congressman Broun’s FOCUS Act — have raised awareness of Members of Congress and the public to the practical challenges related to the Lacey Act Amendments,” said Everill in testimony submitted to Congress. “However, neither of these bills would adequately address these challenges, and in order to be credible, any change needs to be supported by the environmental community. We are looking for a new legislative approach that effectively addresses the issues of business stakeholders, stands the best chance of generating broad, bipartisan support in Congress and all stakeholders, but without undermining the very important goal to stop illegal logging.”
In a prepared statement, Stephanie Lester, RILA’s VP international trade, said: “While retailers strongly support efforts to combat illegal logging, there is a growing recognition that compliance with the Lacey Act is very difficult. Simple changes to the law would help retailers comply and achieve the policy goals shared by RILA, our members and the law’s most strident advocates.”
To make implementation of the Lacey Act more targeted and effective, retailers are seeking changes to the law that would simplify the import declaration, ensure due process, clarify the scope of applicable foreign laws and regulations, and exclude products manufactured before the Lacey Act Amendment was enacted in 2008.
Based in Washington, D.C., RILA is a trade association of the world’s largest retail companies. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales.
No comments found