Mixed results for Beacon Roofing Supply
Peabody, Mass.-based Beacon Roofing Supply sales increased 4.9% to $513.7 million in the first quarter, up from $489.9 million in the same quarter last year.
Existing-store sales declined 4.6%, or 7.7%, when adjusted to the same number of business days.
In existing same-store markets, residential and non-residential roofing product sales decreased 5.4% and 6.1%, respectively, while complementary product sales increased 2.9%. Part of the decline can be blamed on “last year’s very high level of re-roofing activities, including the beneficial impact from mild weather in December 2011 and strong business in several markets that experienced significant storms in 2011, and lower average residential roofing selling prices this year,” said Paul Isabella, president and CEO.
Net income for the first quarter was $18.2 million, down 4.8% from $19.1 million in the same quarter of 2012.
The company pointed to some shrewd bargaining that put it on track for a strong showing in 2013. “Toward the end of the first quarter, we took advantage of our financial capacity and flexibility to purchase key products ahead of announced industry-wide price increases scheduled mostly for February and April,” Isabella said.
Also, in announcing its earnings, the company took the opportunity to mention its acquisition streak. “We continue aggressively to seek quality companies that fit our target acquisition profile, such as McClure-Johnston and Ford Wholesale, which we acquired in the first quarter,” Isabella said.
Boise Cascade continues its hot run on Wall Street
After a successful initial public offering Wednesday, shares of the newly public Boise Cascade continued to perform well on Thursday.
The Boise, Idaho-based wood products company also replaced Jewett-Cameron as one of the 30 companies tracked on the HCN Stock Watch.
Sold on the New York Stock Exchange with the ticker symbol of BCC, Boise Cascade’s share price is set at $21. The price rose to a Wednesday opening of $25.44, and thee shares have risen above $27 in trading late on Thursday.
Based in Boise, Idaho, Boise Cascade describes itself as “a large vertically integrated wood products manufacturer and building materials distributor with widespread operations in the United States and Canada.”
Boise Cascade intends to use $25.0 million of the net proceeds to repay borrowings under its revolving credit facility and the remainder for general corporate purposes.
ALSC approves new design values for Southern Pine
The American Lumber Standard Committee’s (ALSC) Board of Review has approved new design values for the remaining sizes and grades of visually graded Southern Yellow Pine dimension lumber. Following recommendations from the National Lumber and Building Material Dealers Association (NLBMDA) and other stakeholders, the Board of Review has recommended a transition period for the changes with an effective date of June 1, 2013.
"NLBMDA is pleased that the Board of Review has listened to industry concerns about sudden changes in lumber design values and the impact they can have on the value of dealers’ inventory and dealers’ customers," said NLBMDA president Michael O’Brien. "We believe a standard transition period will cause less disruption in the supply chain and give dealers time to plan for the changes."
The changes in Southern Pine design that went into effect on June 1, 2012, only applied to visually graded Southern Pine and Mixed Southern Pine sized 2 in. to 4 in. wide and 2 in. to 4 in. thick (2x2s through 4x4s) in No.2 and lower grades (No.2, No.3, Stud, Construction, Standard and Utility). The changes taking effect June 1, 2013, make some changes to those grades and set new design values for the remaining sizes and grades.
"As the ALSC Board of Review now considers changes in design values for other species currently under review, we will continue to advocate for reasonable transition periods," O’Brien added.